1.1 	A bill for an act
1.2 	relating to taxation; modifying provisions governing individual income and 
1.3 	corporate franchise taxes, sales and use taxes, property taxes, certain state aid 
1.4 	programs, certain local taxes, tax increment financing, and various other taxes and 
1.5 	tax-related provisions; providing for certain federal tax conformity; modifying 
1.6 	and proposing certain income tax credits and subtractions; providing for certain 
1.7 	sales tax exemptions; modifying property tax programs; proposing additional local 
1.8 	government aid programs; authorizing certain tax increment financing; authorizing 
1.9 	certain local taxes; requiring reports; appropriating money;amending Minnesota 
1.10 	Statutes 2020, sections 6.495, subdivision 3; 41B.0391, subdivision 6; 123B.61; 
1.11 	270C.11, by adding a subdivision; 272.01, subdivision 2; 272.02, subdivision 98, 
1.12 	by adding a subdivision; 272.025, subdivision 1; 273.032; 273.11, subdivision 23; 
1.13 	273.128, subdivision 2, by adding a subdivision; 273.13, subdivisions 22, 35, by 
1.14 	adding a subdivision; 273.1392; 273.1393; 273.41; 276.04, subdivision 2; 279.03, 
1.15 	subdivision 1a; 282.261, subdivision 2; 289A.02, subdivision 7; 289A.10, 
1.16 	subdivision 1; 290.0123, subdivision 3; 290.0131, by adding subdivisions; 
1.17 	290.0132, subdivisions 4, 18, 26, by adding subdivisions; 290.0133, by adding 
1.18 	subdivisions; 290.0134, by adding subdivisions; 290.05, subdivision 1; 290.06, 
1.19 	subdivision 2d; 290.067, subdivision 1; 290.0671, subdivision 1a; 290.0674, 
1.20 	subdivision 2; 290.0675, subdivision 1; 290.068, subdivision 1; 290.0681, 
1.21 	subdivision 4; 290.091, subdivision 2; 290.095, subdivision 11; 290A.03, 
1.22 	subdivisions 13, 15; 290A.04, subdivision 2h; 290A.19; 290B.03, subdivision 1; 
1.23 	290B.04, subdivisions 3, 4; 290B.05, subdivision 1; 291.005, subdivision 1; 
1.24 	291.016, subdivision 3; 291.03, subdivision 1, by adding a subdivision; 296A.083, 
1.25 	subdivision 3; 297A.61, subdivision 29; 297A.67, subdivision 35; 297A.68, by 
1.26 	adding a subdivision; 297A.69, subdivision 4; 297A.70, by adding a subdivision; 
1.27 	297A.71, by adding subdivisions; 297A.99, subdivision 3; 297E.02, subdivision 
1.28 	6; 297E.021, subdivision 2; 297I.20, by adding a subdivision; 298.28, subdivisions 
1.29 	5, 7a, 9b; 366.095, subdivision 1; 373.01, subdivision 3; 383B.117, subdivision 
1.30 	2; 410.32; 412.301; 469.174, subdivision 14, by adding a subdivision; 469.176, 
1.31 	subdivisions 3, 4, 4c; 469.1763, subdivision 6; 469.1771, subdivisions 2, 2a, 3; 
1.32 	469.190, subdivision 7; 477B.01, subdivisions 5, 10, 11, by adding subdivisions; 
1.33 	477B.02, subdivisions 2, 3, 5, 8, 9, by adding a subdivision; 477B.03, subdivisions 
1.34 	2, 3, 4, 5, 7; 477B.04, subdivision 1, by adding a subdivision; 477C.03, subdivisions 
1.35 	2, 5; 477C.04, by adding a subdivision; Minnesota Statutes 2021 Supplement, 
1.36 	sections 3.192; 116J.8737, subdivision 5; 273.13, subdivisions 25, 34; 275.025, 
1.37 	subdivision 1; 275.065, subdivision 3; 289A.08, subdivisions 7, 7a; 289A.382, 
1.38 	subdivision 2; 290.01, subdivisions 19, 31; 290.06, subdivision 2c; 290.92, 
2.1 	subdivision 20; 290.993; 297A.67, subdivision 38; 297A.71, subdivision 52; 
2.2 	297A.75, subdivisions 1, 2, 3; 297E.02, subdivision 3; 469.1763, subdivisions 2, 
2.3 	3, 4; Laws 1998, chapter 389, article 8, section 43, as amended; Laws 2008, chapter 
2.4 	366, article 7, section 17; Laws 2011, First Special Session chapter 7, article 4, 
2.5 	section 14; Laws 2014, chapter 308, article 6, section 12, subdivision 2; Laws 
2.6 	2021, First Special Session chapter 14, article 8, sections 14, subdivision 4; 15; 
2.7 	20, subdivisions 2, 3, 4; proposing coding for new law in Minnesota Statutes, 
2.8 	chapters 273; 290; 477A; proposing coding for new law as Minnesota Statutes, 
2.9 	chapter 116X; repealing Minnesota Statutes 2020, sections 290.0131, subdivision 
2.10 	15; 290.0674, subdivision 2a; 477B.02, subdivision 4; 477B.03, subdivision 6; 
2.11 	Minnesota Statutes 2021 Supplement, section 290.0681, subdivision 10.
2.12 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.13 	ARTICLE 1
2.14 	FEDERAL UPDATE

2.15 	Section 1. Minnesota Statutes 2020, section 289A.02, subdivision 7, is amended to read:
2.16 		Subd. 7.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
2.17 	Revenue Code" means the Internal Revenue Code of 1986, as amended through December 
2.18 	31, 2018 November 15, 2021.

2.19 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
2.20 	the changes incorporated by federal changes are effective retroactively at the same time the 
2.21 	changes were effective for federal purposes, but are subject to the application of Minnesota 
2.22 	Statutes, section 290.993, subdivision 2.

2.23 	Sec. 2. Minnesota Statutes 2021 Supplement, section 289A.08, subdivision 7, is amended 
2.24 	to read:
2.25 		Subd. 7.Composite income tax returns for nonresident partners, shareholders, and 
2.26 	beneficiaries. (a) The commissioner may allow a partnership with nonresident partners to 
2.27 	file a composite return and to pay the tax on behalf of nonresident partners who have no 
2.28 	other Minnesota source income. This composite return must include the names, addresses, 
2.29 	Social Security numbers, income allocation, and tax liability for the nonresident partners 
2.30 	electing to be covered by the composite return.
2.31 	(b) The computation of a partner's tax liability must be determined by multiplying the 
2.32 	income allocated to that partner by the highest rate used to determine the tax liability for 
2.33 	individuals under section 290.06, subdivision 2c. Nonbusiness deductions, standard 
2.34 	deductions, or personal exemptions are not allowed.
2.35 	(c) The partnership must submit a request to use this composite return filing method for 
2.36 	nonresident partners. The requesting partnership must file a composite return in the form 
3.1 	prescribed by the commissioner of revenue. The filing of a composite return is considered 
3.2 	a request to use the composite return filing method.
3.3 	(d) The electing partner must not have any Minnesota source income other than the 
3.4 	income from the partnership, other electing partnerships, and other qualifying entities 
3.5 	electing to file and pay the pass-through entity tax under subdivision 7a. If it is determined 
3.6 	that the electing partner has other Minnesota source income, the inclusion of the income 
3.7 	and tax liability for that partner under this provision will not constitute a return to satisfy 
3.8 	the requirements of subdivision 1. The tax paid for the individual as part of the composite 
3.9 	return is allowed as a payment of the tax by the individual on the date on which the composite 
3.10 	return payment was made. If the electing nonresident partner has no other Minnesota source 
3.11 	income, filing of the composite return is a return for purposes of subdivision 1.
3.12 	(e) This subdivision does not negate the requirement that an individual pay estimated 
3.13 	tax if the individual's liability would exceed the requirements set forth in section 289A.25. 
3.14 	The individual's liability to pay estimated tax is, however, satisfied when the partnership 
3.15 	pays composite estimated tax in the manner prescribed in section 289A.25.
3.16 	(f) If an electing partner's share of the partnership's gross income from Minnesota sources 
3.17 	is less than the filing requirements for a nonresident under this subdivision, the tax liability 
3.18 	is zero. However, a statement showing the partner's share of gross income must be included 
3.19 	as part of the composite return.
3.20 	(g) The election provided in this subdivision is only available to a partner who has no 
3.21 	other Minnesota source income and who is either (1) a full-year nonresident individual or 
3.22 	(2) a trust or estate that does not claim a deduction under either section 651 or 661 of the 
3.23 	Internal Revenue Code.
3.24 	(h) A corporation defined in section 290.9725 and its nonresident shareholders may 
3.25 	make an election under this paragraph. The provisions covering the partnership apply to 
3.26 	the corporation and the provisions applying to the partner apply to the shareholder.
3.27 	(i) Estates and trusts distributing current income only and the nonresident individual 
3.28 	beneficiaries of the estates or trusts may make an election under this paragraph. The 
3.29 	provisions covering the partnership apply to the estate or trust. The provisions applying to 
3.30 	the partner apply to the beneficiary.
3.31 	(j) For the purposes of this subdivision, "income" means the partner's share of federal 
3.32 	adjusted gross income from the partnership modified by the additions provided in section 
3.33 	290.0131, subdivisions 8 to 10, 16, and 17, 19, and 20, and the subtractions provided in: 
3.34 	(1) section 290.0132, subdivisions 9, 27, and 28, to the extent the amount is assignable or 
4.1 	allocable to Minnesota under section 290.17; and (2) section 290.0132, subdivision 14, 31, 
4.2 	and 32. The subtraction allowed under section 290.0132, subdivision 9, is only allowed on 
4.3 	the composite tax computation to the extent the electing partner would have been allowed 
4.4 	the subtraction.

4.5 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
4.6 	31, 2021.

4.7 	Sec. 3. Minnesota Statutes 2021 Supplement, section 290.01, subdivision 19, is amended 
4.8 	to read:
4.9 		Subd. 19.Net income. (a) For a trust or estate taxable under section 290.03, and a 
4.10 	corporation taxable under section 290.02, the term "net income" means the federal taxable 
4.11 	income, as defined in section 63 of the Internal Revenue Code of 1986, as amended through 
4.12 	the date named in this subdivision, incorporating the federal effective dates of changes to 
4.13 	the Internal Revenue Code and any elections made by the taxpayer in accordance with the 
4.14 	Internal Revenue Code in determining federal taxable income for federal income tax 
4.15 	purposes, and with the modifications provided in sections 290.0131 to 290.0136.
4.16 	(b) For an individual, the term "net income" means federal adjusted gross income with 
4.17 	the modifications provided in sections 290.0131, 290.0132, and 290.0135 to 290.0137.
4.18 	(c) In the case of a regulated investment company or a fund thereof, as defined in section 
4.19 	851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment 
4.20 	company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, 
4.21 	except that:
4.22 	(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal 
4.23 	Revenue Code does not apply;
4.24 	(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue 
4.25 	Code must be applied by allowing a deduction for capital gain dividends and exempt-interest 
4.26 	dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code; 
4.27 	and
4.28 	(3) the deduction for dividends paid must also be applied in the amount of any 
4.29 	undistributed capital gains which the regulated investment company elects to have treated 
4.30 	as provided in section 852(b)(3)(D) of the Internal Revenue Code.
4.31 	(d) The net income of a real estate investment trust as defined and limited by section 
4.32 	856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust 
4.33 	taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
5.1 	(e) The net income of a designated settlement fund as defined in section 468B(d) of the 
5.2 	Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal 
5.3 	Revenue Code.
5.4 	(f) The Internal Revenue Code of 1986, as amended through December 31, 2018
5.5 	November 15, 2021, applies for taxable years beginning after December 31, 1996, except 
5.6 	the sections of federal law in section 290.0111 shall also apply.
5.7 	(g) Except as otherwise provided, references to the Internal Revenue Code in this 
5.8 	subdivision and sections 290.0131 to 290.0136 mean the code in effect for purposes of 
5.9 	determining net income for the applicable year.

5.10 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
5.11 	the changes incorporated by federal changes are effective retroactively at the same time the 
5.12 	changes were effective for federal purposes, but are subject to the application of Minnesota 
5.13 	Statutes, section 290.993, subdivision 2.

5.14 	Sec. 4. Minnesota Statutes 2021 Supplement, section 290.01, subdivision 31, is amended 
5.15 	to read:
5.16 		Subd. 31.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
5.17 	Revenue Code" means the Internal Revenue Code of 1986, as amended through December 
5.18 	31, 2018, except the sections of federal law in section 290.0111 shall also apply November 
5.19 	15, 2021. Internal Revenue Code also includes any uncodified provision in federal law that 
5.20 	relates to provisions of the Internal Revenue Code that are incorporated into Minnesota law.

5.21 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
5.22 	the changes incorporated by federal changes are effective retroactively at the same time the 
5.23 	changes were effective for federal purposes, but are subject to the application of Minnesota 
5.24 	Statutes, section 290.993, subdivision 2.

5.25 	Sec. 5. Minnesota Statutes 2020, section 290.0123, subdivision 3, is amended to read:
5.26 		Subd. 3.Amount for dependents. For an individual who is a dependent, as defined in 
5.27 	sections 151 and 152 of the Internal Revenue Code, of another taxpayer for a taxable year 
5.28 	beginning in the calendar year in which the individual's taxable year begins, the standard 
5.29 	deduction for that individual is limited to the greater of:
5.30 	(1) $1,100; or
5.31 	(2) the lesser of (i) the sum of $350 and that individual's earned income, as defined in 
5.32 	section 32(c) of the Internal Revenue Code, except that a taxpayer must use earned income 
6.1 	from the current taxable year; or (ii) the standard deduction amount allowed under subdivision 
6.2 	1, clause (3).

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

6.5 	Sec. 6. Minnesota Statutes 2020, section 290.0131, is amended by adding a subdivision 
6.6 	to read:
6.7 		Subd. 19.Meal expenses. The amount of meal expenses in excess of the 50 percent 
6.8 	limitation under section 274(n)(1) of the Internal Revenue Code allowed under subsection 
6.9 	(n), paragraph (2), subparagraph (D), of that section is an addition.

6.10 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
6.11 	31, 2021.

6.12 	Sec. 7. Minnesota Statutes 2020, section 290.0131, is amended by adding a subdivision 
6.13 	to read:
6.14 		Subd. 20.Special limited adjustment. (a) For taxable years beginning after December 
6.15 	31, 2021, and before January 1, 2023, the amount calculated under section 290.993, 
6.16 	subdivision 2, paragraph (c), that increases net income for the taxable year is an addition.
6.17 	(b) Partners, shareholders, or beneficiaries who file their returns on a calendar year basis, 
6.18 	and who received an addition from a pass-through entity filing their return on a fiscal year 
6.19 	basis, must make the addition in the taxable year it is received as required for federal income 
6.20 	tax purposes.
6.21 	(c) This subdivision expires for taxable years beginning after December 31, 2023.

6.22 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
6.23 	31, 2021, and before January 1, 2024.

6.24 	Sec. 8. Minnesota Statutes 2020, section 290.0132, subdivision 18, is amended to read:
6.25 		Subd. 18.Net operating losses. (a) The amount of the net operating loss allowed under 
6.26 	section 290.095, subdivision 11, paragraph (c), is a subtraction.
6.27 	(b) The unused portion of a net operating loss carryover under section 290.095, 
6.28 	subdivision 11, paragraph (d), is a subtraction. The subtraction is the lesser of:
6.29 	(1) the amount carried into the taxable year minus any subtraction made under this 
6.30 	section for prior taxable years; or
7.1 	(2) 80 percent of Minnesota taxable net income in a single taxable year and determined 
7.2 	without regard to this subtraction.

7.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
7.4 	31, 2021.

7.5 	Sec. 9. Minnesota Statutes 2020, section 290.0132, is amended by adding a subdivision 
7.6 	to read:
7.7 		Subd. 31.Special Limited Adjustment. (a) For taxable years beginning after December 
7.8 	31, 2021, and before January 1, 2023, the amount calculated under section 290.993, 
7.9 	subdivision 2, paragraph (c), that decreases net income for the taxable year is a subtraction.
7.10 	(b) Partners, shareholders, or beneficiaries who file their returns on a calendar year basis, 
7.11 	and who received a subtraction from a pass-through entity filing their return on a fiscal year 
7.12 	basis, must make the subtraction in the taxable year it is received as required for federal 
7.13 	income tax purposes.
7.14 	(c) This subdivision expires for taxable years beginning after December 31, 2023.

7.15 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
7.16 	31, 2021, and before January 1, 2024.

7.17 	Sec. 10. Minnesota Statutes 2020, section 290.0132, is amended by adding a subdivision 
7.18 	to read:
7.19 		Subd. 32.Delayed business interest. For each of the five taxable years beginning after 
7.20 	December 31, 2021, there is allowed a subtraction equal to one-fifth of the adjustment 
7.21 	amount, to the extent not already deducted, for the exclusion under section 290.993, 
7.22 	subdivision 2, paragraph (c), clause (11), due to the Coronavirus Aid, Relief and Economic 
7.23 	Security Act, Public Law 116-136, section 2306.

7.24 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
7.25 	31, 2021.

7.26 	Sec. 11. Minnesota Statutes 2020, section 290.0133, is amended by adding a subdivision 
7.27 	to read:
7.28 		Subd. 15.Meal expenses. The amount of meal expenses in excess of the 50 percent 
7.29 	limitation under section 274(n)(1) of the Internal Revenue Code allowed under section 
7.30 	274(n)(2)(D) of the Internal Revenue Code is an addition.

8.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
8.2 	31, 2021.

8.3 	Sec. 12. Minnesota Statutes 2020, section 290.0133, is amended by adding a subdivision 
8.4 	to read:
8.5 		Subd. 16.Special Limited Adjustment. (a) For taxable years beginning after December 
8.6 	31, 2021, and before January 1, 2023, the amount calculated under section 290.993, 
8.7 	subdivision 2, paragraph (c), that increases net income for the taxable year is an addition.
8.8 	(b) Partners, shareholders, or beneficiaries who file their returns on a calendar year basis, 
8.9 	and who received an addition from a pass-through entity filing their return on a fiscal year 
8.10 	basis, must make the addition in the taxable year it is received as required for federal income 
8.11 	tax purposes.
8.12 	(c) This subdivision expires for taxable years beginning after December 31, 2023.

8.13 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
8.14 	31, 2021, and before January 1, 2024.

8.15 	Sec. 13. Minnesota Statutes 2020, section 290.0134, is amended by adding a subdivision 
8.16 	to read:
8.17 		Subd. 20.Special Limited Adjustment. (a) For taxable years beginning after December 
8.18 	31, 2021, and before January 1, 2023, the amount calculated under section 290.993, 
8.19 	subdivision 2, paragraph (c), that decreases net income for the taxable year is a subtraction.
8.20 	(b) Partners, shareholders, or beneficiaries who file their returns on a calendar year basis, 
8.21 	and who received a subtraction from a pass-through entity filing their return on a fiscal year 
8.22 	basis, must make the subtraction in the taxable year it is received as required for federal 
8.23 	income tax purposes.
8.24 	(c) This subdivision expires for taxable years beginning after December 31, 2023.

8.25 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
8.26 	31, 2021, and before January 1, 2024.

8.27 	Sec. 14. Minnesota Statutes 2020, section 290.0134, is amended by adding a subdivision 
8.28 	to read:
8.29 		Subd. 21.Delayed business interest. For each of the five taxable years beginning after 
8.30 	December 31, 2021, there is allowed a subtraction equal to one-fifth of the adjustment 
8.31 	amount, to the extent not already deducted, for the exclusion under section 290.993, 
9.1 	subdivision 2, paragraph (c), clause (11), due to the Coronavirus Aid, Relief and Economic 
9.2 	Security Act, Public Law 116-136, section 2306.

9.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
9.4 	31, 2021.

9.5 	Sec. 15. Minnesota Statutes 2021 Supplement, section 290.06, subdivision 2c, is amended 
9.6 	to read:
9.7 		Subd. 2c.Schedules of rates for individuals, estates, and trusts. (a) The income taxes 
9.8 	imposed by this chapter upon married individuals filing joint returns and surviving spouses 
9.9 	as defined in section 2(a) of the Internal Revenue Code must be computed by applying to 
9.10 	their taxable net income the following schedule of rates:
9.11 	(1) On the first $38,770, 5.35 percent;
9.12 	(2) On all over $38,770, but not over $154,020, 6.8 percent;
9.13 	(3) On all over $154,020, but not over $269,010, 7.85 percent;
9.14 	(4) On all over $269,010, 9.85 percent.
9.15 	Married individuals filing separate returns, estates, and trusts must compute their income 
9.16 	tax by applying the above rates to their taxable income, except that the income brackets 
9.17 	will be one-half of the above amounts after the adjustment required in subdivision 2d.
9.18 	(b) The income taxes imposed by this chapter upon unmarried individuals must be 
9.19 	computed by applying to taxable net income the following schedule of rates:
9.20 	(1) On the first $26,520, 5.35 percent;
9.21 	(2) On all over $26,520, but not over $87,110, 6.8 percent;
9.22 	(3) On all over $87,110, but not over $161,720, 7.85 percent;
9.23 	(4) On all over $161,720, 9.85 percent.
9.24 	(c) The income taxes imposed by this chapter upon unmarried individuals qualifying as 
9.25 	a head of household as defined in section 2(b) of the Internal Revenue Code must be 
9.26 	computed by applying to taxable net income the following schedule of rates:
9.27 	(1) On the first $32,650, 5.35 percent;
9.28 	(2) On all over $32,650, but not over $131,190, 6.8 percent;
9.29 	(3) On all over $131,190, but not over $214,980, 7.85 percent;
9.30 	(4) On all over $214,980, 9.85 percent.
10.1 	(d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax 
10.2 	of any individual taxpayer whose taxable net income for the taxable year is less than an 
10.3 	amount determined by the commissioner must be computed in accordance with tables 
10.4 	prepared and issued by the commissioner of revenue based on income brackets of not more 
10.5 	than $100. The amount of tax for each bracket shall be computed at the rates set forth in 
10.6 	this subdivision, provided that the commissioner may disregard a fractional part of a dollar 
10.7 	unless it amounts to 50 cents or more, in which case it may be increased to $1.
10.8 	(e) An individual who is not a Minnesota resident for the entire year must compute the 
10.9 	individual's Minnesota income tax as provided in this subdivision. After the application of 
10.10 	the nonrefundable credits provided in this chapter, the tax liability must then be multiplied 
10.11 	by a fraction in which:
10.12 	(1) the numerator is the individual's Minnesota source federal adjusted gross income as 
10.13 	defined in section 62 of the Internal Revenue Code and increased by:
10.14 	(i) the additions required under sections 290.0131, subdivisions 2, 6, 8 to 10, 16, and
10.15 	17, 19, and 20, and 290.0137, paragraph (a); and reduced by
10.16 	(ii) the Minnesota assignable portion of the subtraction for United States government 
10.17 	interest under section 290.0132, subdivision 2, the subtractions under sections 290.0132, 
10.18 	subdivisions 9, 10, 14, 15, 17, 18, and 27, 31, and 32, and 290.0137, paragraph (c), after 
10.19 	applying the allocation and assignability provisions of section 290.081, clause (a), or 290.17; 
10.20 	and
10.21 	(2) the denominator is the individual's federal adjusted gross income as defined in section 
10.22 	62 of the Internal Revenue Code, increased by:
10.23 	(i) the additions required under sections 290.0131, subdivisions 2, 6, 8 to 10, 16, and
10.24 	17, 19, and 20, and 290.0137, paragraph (a); and reduced by
10.25 	(ii) the subtractions under sections 290.0132, subdivisions 2, 9, 10, 14, 15, 17, 18, and
10.26 	27, 31, and 32, and 290.0137, paragraph (c).
10.27 	(f) If an individual who is not a Minnesota resident for the entire year is a qualifying 
10.28 	owner of a qualifying entity that elects to pay tax as provided in section 289A.08, subdivision 
10.29 	7a, paragraph (b), the individual must compute the individual's Minnesota income tax as 
10.30 	provided in paragraph (e), and also must include, to the extent attributed to the electing 
10.31 	qualifying entity:
10.32 	(1) in paragraph (e), clause (1), item (i), and paragraph (e), clause (2), item (i), the 
10.33 	addition under section 290.0131, subdivision 5; and
11.1 	(2) in paragraph (e), clause (1), item (ii), and paragraph (e), clause (2), item (ii), the 
11.2 	subtraction under section 290.0132, subdivision 3.

11.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
11.4 	31, 2021.

11.5 	Sec. 16. Minnesota Statutes 2020, section 290.0671, subdivision 1a, is amended to read:
11.6 		Subd. 1a.Definitions. For purposes of this section, the following terms "qualifying 
11.7 	child," and "earned income," have the meanings given in section 32(c) of the Internal 
11.8 	Revenue Code, and the term "adjusted gross income" has the meaning given in section 62 
11.9 	of the Internal Revenue Code.:
11.10 	"Earned income of the lesser-earning spouse" has the meaning given in section 290.0675, 
11.11 	subdivision 1, paragraph (d).
11.12 	(1) "qualifying child" has the meaning given in section 32(c)(3) of the Internal Revenue 
11.13 	Code;
11.14 	(2) "earned income" has the meaning given in section 32(c)(2) of the Internal Revenue 
11.15 	Code, except that a taxpayer must use earned income from the current taxable year;
11.16 	(3) "adjusted gross income" has the meaning given in section 62 of the Internal Revenue 
11.17 	Code; and
11.18 	(4) "earned income of the lesser earning spouse" has the meaning given in section 
11.19 	290.0675, subdivision 1, paragraph (d).

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

11.22 	Sec. 17. Minnesota Statutes 2020, section 290.0675, subdivision 1, is amended to read:
11.23 		Subdivision 1.Definitions. (a) For purposes of this section the following terms have 
11.24 	the meanings given.
11.25 	(b) "Earned income" means the sum of the following, to the extent included in Minnesota 
11.26 	taxable income:
11.27 	(1) earned income as defined in section 32(c)(2) of the Internal Revenue Code, except 
11.28 	that a taxpayer must use earned income from the current taxable year;
11.29 	(2) income received from a retirement pension, profit-sharing, stock bonus, or annuity 
11.30 	plan; and
12.1 	(3) Social Security benefits as defined in section 86(d)(1) of the Internal Revenue Code.
12.2 	(c) "Taxable income" means net income as defined in section 290.01, subdivision 19.
12.3 	(d) "Earned income of lesser-earning spouse" means the earned income of the spouse 
12.4 	with the lesser amount of earned income as defined in paragraph (b) for the taxable year 
12.5 	minus one-half the amount of the standard deduction under section 290.0123, subdivision 
12.6 	1, clause (1).

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

12.9 	Sec. 18. Minnesota Statutes 2020, section 290.091, subdivision 2, is amended to read:
12.10 		Subd. 2.Definitions. For purposes of the tax imposed by this section, the following 
12.11 	terms have the meanings given.
12.12 	(a) "Alternative minimum taxable income" means the sum of the following for the taxable 
12.13 	year:
12.14 	(1) the taxpayer's federal alternative minimum taxable income as defined in section 
12.15 	55(b)(2) of the Internal Revenue Code;
12.16 	(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum 
12.17 	taxable income, but excluding:
12.18 	(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
12.19 	(ii) the medical expense deduction;
12.20 	(iii) the casualty, theft, and disaster loss deduction; and
12.21 	(iv) the impairment-related work expenses of a person with a disability;
12.22 	(3) for depletion allowances computed under section 613A(c) of the Internal Revenue 
12.23 	Code, with respect to each property (as defined in section 614 of the Internal Revenue Code), 
12.24 	to the extent not included in federal alternative minimum taxable income, the excess of the 
12.25 	deduction for depletion allowable under section 611 of the Internal Revenue Code for the 
12.26 	taxable year over the adjusted basis of the property at the end of the taxable year (determined 
12.27 	without regard to the depletion deduction for the taxable year);
12.28 	(4) to the extent not included in federal alternative minimum taxable income, the amount 
12.29 	of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue 
12.30 	Code determined without regard to subparagraph (E);
13.1 	(5) to the extent not included in federal alternative minimum taxable income, the amount 
13.2 	of interest income as provided by section 290.0131, subdivision 2;
13.3 	(6) the amount of addition required by section 290.0131, subdivisions 9, 10, and 16, and 
13.4 	20;
13.5 	(7) the deduction allowed under section 199A of the Internal Revenue Code, to the extent 
13.6 	not included in the addition required under clause (6); and
13.7 	(8) to the extent not included in federal alternative minimum taxable income, the amount 
13.8 	of foreign-derived intangible income deducted under section 250 of the Internal Revenue 
13.9 	Code;
13.10 	less the sum of the amounts determined under the following:
13.11 	(i) interest income as defined in section 290.0132, subdivision 2;
13.12 	(ii) an overpayment of state income tax as provided by section 290.0132, subdivision 
13.13 	3, to the extent included in federal alternative minimum taxable income;
13.14 	(iii) the amount of investment interest paid or accrued within the taxable year on 
13.15 	indebtedness to the extent that the amount does not exceed net investment income, as defined 
13.16 	in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted 
13.17 	in computing federal adjusted gross income;
13.18 	(iv) amounts subtracted from federal taxable or adjusted gross income as provided by 
13.19 	section 290.0132, subdivisions 7, 9 to 15, 17, 21, 24, and 26 to 29 31;
13.20 	(v) the amount of the net operating loss allowed under section 290.095, subdivision 11, 
13.21 	paragraph paragraphs (c) and (d); and
13.22 	(vi) the amount allowable as a Minnesota itemized deduction under section 290.0122, 
13.23 	subdivision 7.
13.24 	In the case of an estate or trust, alternative minimum taxable income must be computed 
13.25 	as provided in section 59(c) of the Internal Revenue Code, except alternative minimum 
13.26 	taxable income must be increased by the addition in section 290.0131, subdivision 16.
13.27 	(b) "Investment interest" means investment interest as defined in section 163(d)(3) of 
13.28 	the Internal Revenue Code.
13.29 	(c) "Net minimum tax" means the minimum tax imposed by this section.
14.1 	(d) "Regular tax" means the tax that would be imposed under this chapter (without regard 
14.2 	to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed 
14.3 	under this chapter.
14.4 	(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income 
14.5 	after subtracting the exemption amount determined under subdivision 3.

14.6 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
14.7 	31, 2021.

14.8 	Sec. 19. Minnesota Statutes 2020, section 290.095, subdivision 11, is amended to read:
14.9 		Subd. 11.Carryback or carryover adjustments. (a) Except as provided in paragraph 
14.10 	(c), for individuals, estates, and trusts the amount of a net operating loss that may be carried 
14.11 	back or carried over shall be the same dollar amount allowable in the determination of 
14.12 	federal taxable income, provided that, notwithstanding any other provision, estates and 
14.13 	trusts must apply the following adjustments to the amount of the net operating loss that may 
14.14 	be carried back or carried over:
14.15 	(1) Nonassignable income or losses as required by section 290.17.
14.16 	(2) Deductions not allocable to Minnesota under section 290.17.
14.17 	(b) The net operating loss carryback or carryover applied as a deduction in the taxable 
14.18 	year to which the net operating loss is carried back or carried over shall be equal to the net 
14.19 	operating loss carryback or carryover applied in the taxable year in arriving at federal taxable 
14.20 	income provided that trusts and estates must apply the following modifications:
14.21 	(1) Increase the amount of carryback or carryover applied in the taxable year by the 
14.22 	amount of losses and interest, taxes and other expenses not assignable or allowable to 
14.23 	Minnesota incurred in the taxable year.
14.24 	(2) Decrease the amount of carryback or carryover applied in the taxable year by the 
14.25 	amount of income not assignable to Minnesota earned in the taxable year. For estates and 
14.26 	trusts, the net operating loss carryback or carryover to the next consecutive taxable year 
14.27 	shall be the net operating loss carryback or carryover as calculated in clause (b) less the 
14.28 	amount applied in the earlier taxable year(s). No additional net operating loss carryback or 
14.29 	carryover shall be allowed to estates and trusts if the entire amount has been used to offset 
14.30 	Minnesota income in a year earlier than was possible on the federal return. However, if a 
14.31 	net operating loss carryback or carryover was allowed to offset federal income in a year 
14.32 	earlier than was possible on the Minnesota return, an estate or trust shall still be allowed to 
15.1 	offset Minnesota income but only if the loss was assignable to Minnesota in the year the 
15.2 	loss occurred.
15.3 	(c) This paragraph does not apply to eligible small businesses that make a valid election 
15.4 	to carry back their losses for federal purposes under section 172(b)(1)(H) of the Internal 
15.5 	Revenue Code as amended through March 31, 2009.
15.6 	(1) A net operating loss of an individual, estate, or trust that is allowed under this 
15.7 	subdivision and for which the taxpayer elects to carry back for more than two years under 
15.8 	section 172(b)(1)(H) of the Internal Revenue Code is a net operating loss carryback to each 
15.9 	of the two taxable years preceding the loss, and unused portions may be carried forward for 
15.10 	20 taxable years after the loss.
15.11 	(2) The entire amount of the net operating loss for any taxable year must be carried to 
15.12 	the earliest of the taxable years to which the loss may be carried. The portion of the loss 
15.13 	which may be carried to each of the other taxable years is the excess, if any, of the amount 
15.14 	of the loss over the greater of the taxable net income or alternative minimum taxable income 
15.15 	for each of the taxable years to which the loss may be carried.
15.16 	(d) For net operating loss carryovers or carrybacks arising in taxable years beginning 
15.17 	after December 31, 2017, and before December 31, 2020, a net operating loss carryover or 
15.18 	carryback is allowed as provided in the Internal Revenue Code as amended through December 
15.19 	31, 2018, as follows:
15.20 	(1) the entire amount of the net operating loss, to the extent not already deducted, must 
15.21 	be carried to the earliest taxable year and any unused portion may be carried forward for 
15.22 	20 taxable years after the loss; and
15.23 	(2) the portion of the loss which may be carried to each of the other taxable years is the 
15.24 	excess, if any, of the amount of the loss over the greater of the taxable net income or 
15.25 	alternative minimum taxable income for each of the taxable years to which the loss may be 
15.26 	carried.

15.27 	EFFECTIVE DATE. This section is effective retroactively for losses arising in taxable 
15.28 	years beginning after December 31, 2017, and before December 31, 2020.

15.29 	Sec. 20. Minnesota Statutes 2021 Supplement, section 290.993, is amended to read:
15.30 	290.993 SPECIAL LIMITED ADJUSTMENT.
15.31 		Subdivision 1.Tax year 2018. (a) For an individual, estate, or trust, or a partnership 
15.32 	that elects to file a composite return under section 289A.08, subdivision 7, for taxable years 
16.1 	beginning after December 31, 2017, and before January 1, 2019, the following special rules 
16.2 	apply:
16.3 	(1) an individual income taxpayer may: (i) take the standard deduction; or (ii) make an 
16.4 	election under section 63(e) of the Internal Revenue Code to itemize, for Minnesota individual 
16.5 	income tax purposes, regardless of the choice made on their federal return; and
16.6 	(2) there is an adjustment to tax equal to the difference between the tax calculated under 
16.7 	this chapter using the Internal Revenue Code as amended through December 16, 2016, and 
16.8 	the tax calculated under this chapter using the Internal Revenue Code amended through 
16.9 	December 31, 2018, before the application of credits. The end result must be zero additional 
16.10 	tax due or refund.
16.11 	(b) The adjustment in paragraph (a), clause (2) this subdivision, does not apply to any 
16.12 	changes due to sections 11012, 13101, 13201, 13202, 13203, 13204, 13205, 13207, 13301, 
16.13 	13302, 13303, 13313, 13502, 13503, 13801, 14101, 14102, 14211 through 14215, and 
16.14 	14501 of Public Law 115-97; and section 40411 of Public Law 115-123.
16.15 		Subd. 2.Tax years 2017 to 2021. (a) For all taxpayers, including an entity that elects 
16.16 	to file a composite return under section 289A.08, subdivision 7, and an entity that elects to 
16.17 	pay the pass-through entity tax under section 289A.08, subdivision 7a; for taxable years 
16.18 	beginning after December 31, 2016, and before January 1, 2022, the following rules apply.
16.19 	(b) There is an adjustment to net income equal to the difference between the amount 
16.20 	calculated and reported under this chapter incorporating the Internal Revenue Code as 
16.21 	amended through Minnesota Laws 2021, First Special Session chapter 14, and the amount 
16.22 	calculated under this chapter incorporating the Internal Revenue Code as amended through 
16.23 	November 15, 2021. This adjustment is only allowed as provided in paragraph (c) and to 
16.24 	the extent the taxpayer reported a related nonconformity adjustment on their return for 
16.25 	taxable years beginning after December 31, 2016, and before January 1, 2022. This 
16.26 	adjustment does not include the changes due to the:
16.27 	(1) Taxpayer Certainty and Disaster Relief Act of 2020, Public Law 116-260, section 
16.28 	114, exclusion of gross income of discharge of qualified principal residence indebtedness;
16.29 	(2) Taxpayer Certainty and Disaster Relief Act of 2020, Public Law 116-260, section 
16.30 	304(b), special rules for disaster-related personal casualty losses; and
16.31 	(3) American Rescue Plan Act, Public Law 117-2, section 9675, modification of treatment 
16.32 	of student loan forgiveness.
17.1 	(c) For purposes of this subdivision, the term "nonconformity adjustment" means the 
17.2 	difference between adjusted gross income as defined under section 62 of the Internal Revenue 
17.3 	Code for individuals, and federal taxable income as defined under section 63 of the Internal 
17.4 	Revenue Code for all other taxpayers incorporating the Internal Revenue Code as amended 
17.5 	through Minnesota Laws 2021, First Special Session chapter 14, and the amount calculated 
17.6 	under this chapter incorporating the Internal Revenue Code as amended through November 
17.7 	15, 2021, but does not include impacts to state tax credits. The nonconformity adjustment 
17.8 	is an addition or subtraction to net income but does not include the following federal law 
17.9 	changes:
17.10 	(1) Taxpayer Certainty and Disaster Relief Act of 2019, Public Law 116-94, section 
17.11 	104, deduction of qualified tuition and related expenses;
17.12 	(2) Taxpayer Certainty and Disaster Relief Act of 2019, Public Law 116-94, section 
17.13 	203, employee retention credit for employers affected by qualified disasters;
17.14 	(3) Families First Coronavirus Response Act, Public Law 116-127, section 7001, payroll 
17.15 	credit for required paid sick leave;
17.16 	(4) Families First Coronavirus Response Act, Public Law 116-127, section 7003, payroll 
17.17 	credit for required paid family leave;
17.18 	(5) Coronavirus Aid, Relief and Economic Security Act, Public Law 116-136, section 
17.19 	2204, allowance of partial above the line deduction for charitable contributions;
17.20 	(6) Coronavirus Aid, Relief and Economic Security Act, Public Law 116-136, section 
17.21 	2205, excluding subsection (a), paragraph (B), temporary modification of limitations on 
17.22 	charitable contributions as it applies to individual taxpayers only and including carryovers;
17.23 	(7) Coronavirus Aid, Relief and Economic Security Act, Public Law 116-136, section 
17.24 	2206, exclusion of certain employer payment of student loans;
17.25 	(8) Coronavirus Aid, Relief and Economic Security Act, Public Law 116-136, section 
17.26 	2301, employee retention credit for employers subject to closure due to COVID-19;
17.27 	(9) Coronavirus Aid, Relief and Economic Security Act, Public Law 116-136, section 
17.28 	2303, modifications for net operating losses;
17.29 	(10) Coronavirus Aid, Relief and Economic Security Act, Public Law 116-136, section 
17.30 	2304, modification of limitation on losses for taxpayers other than corporations;
17.31 	(11) Coronavirus Aid, Relief and Economic Security Act, Public Law 116-136, section 
17.32 	2306, limitation on business interest;
18.1 	(12) Taxpayer Certainty and Disaster Relief Act of 2020, Public Law 116-260, section 
18.2 	207, extension and modification of employee retention and rehiring credit;
18.3 	(13) Taxpayer Certainty and Disaster Relief Act of 2020, Public Law 116-260, section 
18.4 	210, temporary allowance of full deduction for business meals;
18.5 	(14) Taxpayer Certainty and Disaster Relief Act of 2020, Public Law 116-260, section 
18.6 	303, employee retention credit for employers affected by qualified disasters;
18.7 	(15) American Rescue Plan Act, Public Law 117-2, section 9501(b), preserving health 
18.8 	benefits for workers;
18.9 	(16) American Rescue Plan Act, Public Law 117-2, section 9631, refundability and 
18.10 	enhancement of child and dependent care tax credit;
18.11 	(17) American Rescue Plan Act, Public Law 117-2, section 9641, payroll sick and family 
18.12 	leave credits; and
18.13 	(18) American Rescue Plan Act, Public Law, 117-2, section 9651, extension of employee 
18.14 	retention credit.
18.15 	The addition or subtraction required must only be made in taxable years beginning after 
18.16 	December 31, 2021, and before January 1, 2023. Except partners, shareholders, or 
18.17 	beneficiaries who file their returns on a calendar year basis, and who received an addition 
18.18 	or subtraction from a pass-through entity filing their return on a fiscal year basis, must make 
18.19 	the addition or subtraction in the taxable year it is received as required for federal income 
18.20 	tax purposes. For purposes of this subdivision, a pass-through entity is defined as an entity 
18.21 	that is not subject to the tax imposed under section 290.02, including but not limited to S 
18.22 	corporations, partnerships, estates, and trusts other than grantor trusts.

18.23 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
18.24 	after December 31, 2016, and before January 1, 2024.

18.25 	Sec. 21. Minnesota Statutes 2020, section 290A.03, subdivision 15, is amended to read:
18.26 		Subd. 15.Internal Revenue Code.  "Internal Revenue Code" means the Internal Revenue 
18.27 	Code of 1986, as amended through December 31, 2018 November 15, 2021.

18.28 	EFFECTIVE DATE. This section is effective for property tax refunds based on property 
18.29 	taxes payable in 2022 and rent paid in 2021 and thereafter.

19.1 	Sec. 22. Minnesota Statutes 2020, section 291.005, subdivision 1, is amended to read:
19.2 		Subdivision 1.Scope. Unless the context otherwise clearly requires, the following terms 
19.3 	used in this chapter shall have the following meanings:
19.4 	(1) "Commissioner" means the commissioner of revenue or any person to whom the 
19.5 	commissioner has delegated functions under this chapter.
19.6 	(2) "Federal gross estate" means the gross estate of a decedent as required to be valued 
19.7 	and otherwise determined for federal estate tax purposes under the Internal Revenue Code, 
19.8 	increased by the value of any property in which the decedent had a qualifying income interest 
19.9 	for life and for which an election was made under section 291.03, subdivision 1d, for 
19.10 	Minnesota estate tax purposes, but was not made for federal estate tax purposes.
19.11 	(3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986, 
19.12 	as amended through December 31, 2018 November 15, 2021.
19.13 	(4) "Minnesota gross estate" means the federal gross estate of a decedent after (a) 
19.14 	excluding therefrom any property included in the estate which has its situs outside Minnesota, 
19.15 	and (b) including any property omitted from the federal gross estate which is includable in 
19.16 	the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.
19.17 	(5) "Nonresident decedent" means an individual whose domicile at the time of death 
19.18 	was not in Minnesota.
19.19 	(6) "Personal representative" means the executor, administrator or other person appointed 
19.20 	by the court to administer and dispose of the property of the decedent. If there is no executor, 
19.21 	administrator or other person appointed, qualified, and acting within this state, then any 
19.22 	person in actual or constructive possession of any property having a situs in this state which 
19.23 	is included in the federal gross estate of the decedent shall be deemed to be a personal 
19.24 	representative to the extent of the property and the Minnesota estate tax due with respect 
19.25 	to the property.
19.26 	(7) "Resident decedent" means an individual whose domicile at the time of death was 
19.27 	in Minnesota. The provisions of section 290.01, subdivision 7, paragraphs (c) and (d), apply 
19.28 	to determinations of domicile under this chapter.
19.29 	(8) "Situs of property" means, with respect to:
19.30 	(i) real property, the state or country in which it is located;
19.31 	(ii) tangible personal property, the state or country in which it was normally kept or 
19.32 	located at the time of the decedent's death or for a gift of tangible personal property within 
20.1 	three years of death, the state or country in which it was normally kept or located when the 
20.2 	gift was executed;
20.3 	(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue 
20.4 	Code, owned by a nonresident decedent and that is normally kept or located in this state 
20.5 	because it is on loan to an organization, qualifying as exempt from taxation under section 
20.6 	501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is 
20.7 	deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
20.8 	(iv) intangible personal property, the state or country in which the decedent was domiciled 
20.9 	at death or for a gift of intangible personal property within three years of death, the state or 
20.10 	country in which the decedent was domiciled when the gift was executed.
20.11 	For a nonresident decedent with an ownership interest in a pass-through entity with 
20.12 	assets that include real or tangible personal property, situs of the real or tangible personal 
20.13 	property, including qualified works of art, is determined as if the pass-through entity does 
20.14 	not exist and the real or tangible personal property is personally owned by the decedent. If 
20.15 	the pass-through entity is owned by a person or persons in addition to the decedent, ownership 
20.16 	of the property is attributed to the decedent in proportion to the decedent's capital ownership 
20.17 	share of the pass-through entity.
20.18 	(9) "Pass-through entity" includes the following:
20.19 	(i) an entity electing S corporation status under section 1362 of the Internal Revenue 
20.20 	Code;
20.21 	(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
20.22 	(iii) a single-member limited liability company or similar entity, regardless of whether 
20.23 	it is taxed as an association or is disregarded for federal income tax purposes under Code 
20.24 	of Federal Regulations, title 26, section 301.7701-3; or
20.25 	(iv) a trust to the extent the property is includable in the decedent's federal gross estate; 
20.26 	but excludes
20.27 	(v) an entity whose ownership interest securities are traded on an exchange regulated 
20.28 	by the Securities and Exchange Commission as a national securities exchange under section 
20.29 	6 of the Securities Exchange Act, United States Code, title 15, section 78f.

20.30 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
20.31 	the changes incorporated by federal changes are effective retroactively at the same time the 
20.32 	changes were effective for federal purposes.

21.1 	ARTICLE 2
21.2 	INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES

21.3 	Section 1. Minnesota Statutes 2020, section 41B.0391, subdivision 6, is amended to read:
21.4 		Subd. 6.Report to legislature. (a) No later than February 1, 2022 2023, the Rural 
21.5 	Finance Authority, in consultation with the commissioner of revenue, must provide a report 
21.6 	to the chairs and ranking minority members of the legislative committees having jurisdiction 
21.7 	over agriculture, economic development, rural development, and taxes, in compliance with 
21.8 	sections 3.195 and 3.197, on the beginning farmer tax credits under this section issued in 
21.9 	tax years beginning after December 31, 2017, and before January 1, 2022 2023.
21.10 	(b) The report must include background information on beginning farmers in Minnesota 
21.11 	and any other information the commissioner and authority find relevant to evaluating the 
21.12 	effect of the credits on increasing opportunities for and the number of beginning farmers.
21.13 	(c) For credits issued under subdivision 2, paragraph (a), clauses (1) to (3), the report 
21.14 	must include:
21.15 	(1) the number and amount of credits issued under each clause;
21.16 	(2) the geographic distribution of credits issued under each clause;
21.17 	(3) the type of agricultural assets for which credits were issued under clause (1);
21.18 	(4) the number and geographic distribution of beginning farmers whose purchase or 
21.19 	rental of assets resulted in credits for the seller or owner of the asset;
21.20 	(5) the number and amount of credits disallowed under subdivision 2, paragraph (d);
21.21 	(6) data on the number of beginning farmers by geographic region in calendar years 
21.22 	2017 through 2021 2022, including:
21.23 	(i) the number of beginning farmers by race and ethnicity, as those terms are applied in 
21.24 	the 2020 United States Census; and
21.25 	(ii) to the extent available, the number of beginning farmers who are members of a 
21.26 	socially disadvantaged group, as defined in United States Code, title 7, section 2279(a)(6); 
21.27 	and
21.28 	(7) the number and amount of credit applications that exceeded the allocation available 
21.29 	in each year.
21.30 	(d) For credits issued under subdivision 3, the report must include:
21.31 	(1) the number and amount of credits issued;
22.1 	(2) the geographic distribution of credits;
22.2 	(3) a listing and description of each approved financial management program for which 
22.3 	credits were issued; and
22.4 	(4) a description of the approval procedure for financial management programs not on 
22.5 	the list maintained by the authority, as provided in subdivision 3, paragraph (a).

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

22.7 	Sec. 2. Minnesota Statutes 2021 Supplement, section 116J.8737, subdivision 5, is amended 
22.8 	to read:
22.9 		Subd. 5.Credit allowed. (a) A qualified investor or qualified fund is eligible for a credit 
22.10 	equal to 25 percent of the qualified investment in a qualified small business. Investments 
22.11 	made by a pass-through entity qualify for a credit only if the entity is a qualified fund. The 
22.12 	commissioner must not allocate to qualified investors or qualified funds more than the dollar 
22.13 	amount in credits allowed for the taxable years listed in paragraph (i). For each taxable year, 
22.14 	50 percent must be allocated to credits for qualified investments in qualified greater 
22.15 	Minnesota businesses and minority-owned, women-owned, or veteran-owned qualified 
22.16 	small businesses in Minnesota. Any portion of a taxable year's credits that is reserved for 
22.17 	qualified investments in greater Minnesota businesses and minority-owned, women-owned, 
22.18 	or veteran-owned qualified small businesses in Minnesota that is not allocated by September 
22.19 	30 of the taxable year is available for allocation to other credit applications beginning on 
22.20 	October 1. Any portion of a taxable year's credits that is not allocated by the commissioner 
22.21 	does not cancel and may be carried forward to subsequent taxable years until all credits 
22.22 	have been allocated.
22.23 	(b) The commissioner may not allocate more than a total maximum amount in credits 
22.24 	for a taxable year to a qualified investor for the investor's cumulative qualified investments 
22.25 	as an individual qualified investor and as an investor in a qualified fund; for married couples 
22.26 	filing joint returns the maximum is $250,000, and for all other filers the maximum is 
22.27 	$125,000. The commissioner may not allocate more than a total of $1,000,000 in credits 
22.28 	over all taxable years for qualified investments in any one qualified small business.
22.29 	(c) The commissioner may not allocate a credit to a qualified investor either as an 
22.30 	individual qualified investor or as an investor in a qualified fund if, at the time the investment 
22.31 	is proposed:
22.32 	(1) the investor is an officer or principal of the qualified small business; or
23.1 	(2) the investor, either individually or in combination with one or more members of the 
23.2 	investor's family, owns, controls, or holds the power to vote 20 percent or more of the 
23.3 	outstanding securities of the qualified small business.
23.4 	A member of the family of an individual disqualified by this paragraph is not eligible for a 
23.5 	credit under this section. For a married couple filing a joint return, the limitations in this 
23.6 	paragraph apply collectively to the investor and spouse. For purposes of determining the 
23.7 	ownership interest of an investor under this paragraph, the rules under section 267(c) and 
23.8 	267(e) of the Internal Revenue Code apply.
23.9 	(d) Applications for tax credits must be made available on the department's website by 
23.10 	November 1 of the preceding year.
23.11 	(e) Qualified investors and qualified funds must apply to the commissioner for tax credits. 
23.12 	Tax credits must be allocated to qualified investors or qualified funds in the order that the 
23.13 	tax credit request applications are filed with the department. The commissioner must approve 
23.14 	or reject tax credit request applications within 15 days of receiving the application. The 
23.15 	investment specified in the application must be made within 60 days of the allocation of 
23.16 	the credits. If the investment is not made within 60 days, the credit allocation is canceled 
23.17 	and available for reallocation. A qualified investor or qualified fund that fails to invest as 
23.18 	specified in the application, within 60 days of allocation of the credits, must notify the 
23.19 	commissioner of the failure to invest within five business days of the expiration of the 
23.20 	60-day investment period.
23.21 	(f) All tax credit request applications filed with the department on the same day must 
23.22 	be treated as having been filed contemporaneously. If two or more qualified investors or 
23.23 	qualified funds file tax credit request applications on the same day, and the aggregate amount 
23.24 	of credit allocation claims exceeds the aggregate limit of credits under this section or the 
23.25 	lesser amount of credits that remain unallocated on that day, then the credits must be allocated 
23.26 	among the qualified investors or qualified funds who filed on that day on a pro rata basis 
23.27 	with respect to the amounts claimed. The pro rata allocation for any one qualified investor 
23.28 	or qualified fund is the product obtained by multiplying a fraction, the numerator of which 
23.29 	is the amount of the credit allocation claim filed on behalf of a qualified investor and the 
23.30 	denominator of which is the total of all credit allocation claims filed on behalf of all 
23.31 	applicants on that day, by the amount of credits that remain unallocated on that day for the 
23.32 	taxable year.
23.33 	(g) A qualified investor or qualified fund, or a qualified small business acting on their 
23.34 	behalf, must notify the commissioner when an investment for which credits were allocated 
24.1 	has been made, and the taxable year in which the investment was made. A qualified fund 
24.2 	must also provide the commissioner with a statement indicating the amount invested by 
24.3 	each investor in the qualified fund based on each investor's share of the assets of the qualified 
24.4 	fund at the time of the qualified investment. After receiving notification that the investment 
24.5 	was made, the commissioner must issue credit certificates for the taxable year in which the 
24.6 	investment was made to the qualified investor or, for an investment made by a qualified 
24.7 	fund, to each qualified investor who is an investor in the fund. The certificate must state 
24.8 	that the credit is subject to revocation if the qualified investor or qualified fund does not 
24.9 	hold the investment in the qualified small business for at least three years, consisting of the 
24.10 	calendar year in which the investment was made and the two following years. The three-year 
24.11 	holding period does not apply if:
24.12 	(1) the investment by the qualified investor or qualified fund becomes worthless before 
24.13 	the end of the three-year period;
24.14 	(2) 80 percent or more of the assets of the qualified small business is sold before the end 
24.15 	of the three-year period;
24.16 	(3) the qualified small business is sold before the end of the three-year period;
24.17 	(4) the qualified small business's common stock begins trading on a public exchange 
24.18 	before the end of the three-year period; or
24.19 	(5) the qualified investor dies before the end of the three-year period.
24.20 	(h) The commissioner must notify the commissioner of revenue of credit certificates 
24.21 	issued under this section.
24.22 	(i) The credit allowed under this subdivision is effective as follows:
24.23 	(1) $10,000,000 for taxable years beginning after December 31, 2020, and before January 
24.24 	1, 2022; and
24.25 	(2) $5,000,000 $12,000,000 for taxable years beginning after December 31, 2021, and 
24.26 	before January 1, 2023.

24.27 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
24.28 	after December 31, 2021.

24.29 	Sec. 3. [116X.01] NEW MARKETS TAX CREDIT.
24.30 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
24.31 	the meanings given.
25.1 	(b) "Applicable percentage" means zero percent for each of the first two credit allowance 
25.2 	dates and ten percent for each of the final five credit allowance dates.
25.3 	(c) "CDFI fund" means the Community Development Financial Institutions fund of the 
25.4 	United States Department of the Treasury.
25.5 	(d) "Commissioner" means the commissioner of employment and economic development.
25.6 	(e) "Credit allowance date" means:
25.7 	(1) the date on which a qualified equity investment is initially made; and
25.8 	(2) each of the six anniversary dates thereafter.
25.9 	(f) "Greater Minnesota aggregate credit amount" means $50,000,000 of credits allowed 
25.10 	to all certified qualified equity investments in greater Minnesota counties.
25.11 	(g) "Greater Minnesota allocation" means $100,000,000 in qualified equity investment 
25.12 	authority to be awarded for investment in qualified active low-income community businesses 
25.13 	with principal business operations in a greater Minnesota county.
25.14 	(h) "Greater Minnesota county" means any county that is not a metropolitan county.
25.15 	(i) "Metropolitan aggregate credit amount" means $50,000,000 of credits allowed to all 
25.16 	certified qualified equity investments in metropolitan counties.
25.17 	(j) "Metropolitan allocation" means $100,000,000 in qualified equity investment authority 
25.18 	to be awarded for investment in qualified active low-income community businesses with 
25.19 	principal business operations in a metropolitan county.
25.20 	(k) "Metropolitan county" has the meaning given in section 473.121, subdivision 4.
25.21 	(l) "Minnesota qualified community development entity" means a qualified community 
25.22 	development entity that is or whose controlling entity is headquartered in this state.
25.23 	(m) "Internal Revenue Code" has the meaning given in section 290.01, subdivision 31.
25.24 	(n) "Principal business operations" means the physical location of a business where at 
25.25 	least 60 percent of a qualified active low-income community business' employees work or 
25.26 	where employees that are paid at least 60 percent of the business' payroll work. An 
25.27 	out-of-state business that has agreed to relocate employees or a Minnesota business that has 
25.28 	agreed to hire employees using the proceeds of a qualified low-income community investment 
25.29 	to establish principal business operations in Minnesota is deemed to have principal business 
25.30 	operations in Minnesota if the business satisfies the requirements of this paragraph within 
26.1 	180 days of receiving the qualified low-income community investment or another date as 
26.2 	agreed by the business and the commissioner.
26.3 	(o) "Purchase price" means the amount paid to the qualified community development 
26.4 	entity for a qualified equity investment.
26.5 	(p) "Qualified active low-income community business" has the meaning given in section 
26.6 	45D of the Internal Revenue Code, except that any business that derives or projects to derive 
26.7 	15 percent or more of its annual revenue from the rental or sale of real estate is not considered 
26.8 	to be a qualified active low-income community business. This exception does not apply to 
26.9 	a business that is controlled by or under common control with another business if the second 
26.10 	business:
26.11 	(1) does not derive or project to derive 15 percent or more of its annual revenue from 
26.12 	the rental or sale of real estate; and
26.13 	(2) is the primary tenant of the real estate leased from the initial business.
26.14 	A business is deemed a qualified active low-income community business for the duration 
26.15 	of a qualified low-income community investment if the qualified community development 
26.16 	entity reasonably expects, at the time it makes the qualified low-income community 
26.17 	investment, that the business will continue to satisfy the requirements for being a qualified 
26.18 	active low-income community business throughout the entire period of the qualified 
26.19 	low-income community investment.
26.20 	(q) "Qualified community development entity" has the meaning given in section 45D 
26.21 	of the Internal Revenue Code, provided that the entity:
26.22 	(1) has previously entered into an allocation agreement with the CDFI fund with respect 
26.23 	to credits authorized by section 45D of the Internal Revenue Code; and
26.24 	(2) includes the state within the service area set forth in the allocation agreement.
26.25 	(r) "Qualified equity investment" means an equity investment in a qualified community 
26.26 	development entity, if the equity investment:
26.27 	(1) is acquired after the effective date of this section at its original issuance solely in 
26.28 	exchange for cash;
26.29 	(2) has at least 100 percent of its cash purchase price used by the qualified community 
26.30 	development entity to make qualified low-income community investments in qualified 
26.31 	active low-income community businesses that have their principal business operations in 
26.32 	the state of Minnesota; and
27.1 	(3) is:
27.2 	(i) designated by the qualified community development entity as a qualified equity 
27.3 	investment under this section; and
27.4 	(ii) except for a Minnesota qualified community development entity, is at least 50 percent 
27.5 	designated by the qualified community development entity as a qualified equity investment 
27.6 	under section 45D of the Internal Revenue Code.
27.7 	An investment that does not qualify under clause (1) is a qualified equity investment if the 
27.8 	investment met the requirements of this paragraph while under possession of a prior holder.
27.9 	(s) "Qualified low-income community investment" means any capital or equity investment 
27.10 	in, or loan to, any qualified active low-income community business.
27.11 	(t) "Tax credit" or "credit" means a credit against the tax imposed by chapter 290 or 
27.12 	297I.
27.13 	(u) "Taxpayer" means a taxpayer as defined in section 290.01, subdivision 6, or a taxpayer 
27.14 	as defined in section 297I.01, subdivision 16.
27.15 		Subd. 2.Credit allowed; qualification; limitation. (a) An entity earns a vested right 
27.16 	to a credit against the tax imposed under chapter 290 or 297I, subject to the requirements 
27.17 	of this subdivision. The credit may be claimed against the tax imposed by chapter 290 or 
27.18 	297I, but not both.
27.19 	(b) The credit equals the applicable percentage for each credit allowance date multiplied 
27.20 	by the purchase price paid to the qualified community development entity for the qualified 
27.21 	equity investment.
27.22 		Subd. 3.Application. (a) A qualified community development entity that seeks to have 
27.23 	an equity investment designated as a qualified equity investment and eligible for the credit 
27.24 	under this section shall apply to the commissioner on a form provided by the commissioner 
27.25 	that includes:
27.26 	(1) the name, address, and tax identification number of the applicant, and evidence of 
27.27 	the applicant's certification as a qualified community development entity by the CDFI fund;
27.28 	(2) a copy of the allocation agreement executed by the applicant or its controlling entity, 
27.29 	and the CDFI fund;
27.30 	(3) a certificate executed by an executive officer of the applicant attesting that the 
27.31 	allocation agreement remains in effect and has not been revoked or canceled by the CDFI 
27.32 	fund;
28.1 	(4) a description of the proposed amount, structure, and purchaser of the equity 
28.2 	investment;
28.3 	(5) the amount of qualified equity investment authority sought under the greater 
28.4 	Minnesota allocation or the metropolitan allocation, as applicable, which collectively may 
28.5 	not exceed the applicant or its controlling entity's available qualified equity investment 
28.6 	authority under section 45D of the Internal Revenue Code multiplied by two, provided this 
28.7 	limitation does not apply to a Minnesota qualified community development entity;
28.8 	(6) if required by clause (5), evidence of the applicant or its controlling entity's available 
28.9 	qualified equity investment authority under section 45D of the Internal Revenue Code; and
28.10 	(7) a nonrefundable application fee of $5,000 paid to the commissioner to offset costs 
28.11 	associated with personnel and administrative expenses related to administering the credit.
28.12 	(b) The commissioner shall set a date to accept applications not less than 30 days but 
28.13 	not more than 45 days after the CDFI fund announces allocation awards under a notice of 
28.14 	funding availability that was published in the Federal Register in November 2021.
28.15 	(c) A qualified community development entity may apply for both a greater Minnesota 
28.16 	allocation and a metropolitan allocation.
28.17 		Subd. 4.Certification of qualified equity investments. (a) Within 30 days after receipt 
28.18 	of an application, the commissioner shall grant or deny the application in full or in part. If 
28.19 	the commissioner denies any part of the application, the commissioner shall inform the 
28.20 	applicant of the grounds for the denial. If the applicant provides the information required 
28.21 	by the commissioner or otherwise completes its application within 15 days of the notice of 
28.22 	denial, the application is deemed complete as of the original date of submission. If the 
28.23 	applicant fails to provide the requested information or complete its application within the 
28.24 	15-day period, the applicant must submit a new application.
28.25 	(b) If the application is deemed complete, the commissioner shall certify the proposed 
28.26 	equity investment as a qualified equity investment eligible for a credit under this section. 
28.27 	The commissioner shall provide written notice of the certification to the qualified community 
28.28 	development entity. Once the qualified community development entity identifies the 
28.29 	taxpayers who are allocated credits and their respective credit amounts, the qualified 
28.30 	community development entity shall provide a notice of allocation to the commissioner, 
28.31 	and the commissioner shall provide a certification to the qualified community development 
28.32 	entity and each taxpayer containing the credit amount and utilization schedule for which 
28.33 	the taxpayer is eligible. If the taxpayer is eligible to utilize the credits change due to a transfer 
29.1 	of a qualified equity investment or a change in allocation pursuant to paragraph (c), the 
29.2 	qualified community development entity shall notify the commissioner of the change.
29.3 	(c) The commissioner shall certify applications for the greater Minnesota allocation and 
29.4 	the metropolitan allocation in proportionate percentages based upon the ratio of the amount 
29.5 	of qualified equity investments requested in applications for each allocation to the total 
29.6 	amount of qualified equity investments requested in all applications for each allocation 
29.7 	received on the same day.
29.8 	(d) If a pending request cannot be fully certified, the commissioner shall certify the 
29.9 	portion that may be certified unless the qualified community development entity elects to 
29.10 	withdraw its request rather than receive a partial award of qualified equity investment 
29.11 	authority.
29.12 	(e) An approved applicant may transfer all or a portion of its certified qualified equity 
29.13 	investment authority to its controlling entity or any affiliate or partner of the controlling 
29.14 	entity that is also a qualified community development entity if the applicant provides the 
29.15 	information required in the application with respect to the transferee and the applicant 
29.16 	notifies the commissioner in the notice required by paragraph (f). Within 30 days after 
29.17 	receiving notice of certification under paragraph (b), the applicant or transferee shall:
29.18 	(1) issue qualified equity investments in an amount equal to the total amount of certified 
29.19 	qualified equity investment authority;
29.20 	(2) receive cash in the amount of the certified qualified equity investment; and
29.21 	(3) if the applicant or transferee is not a Minnesota qualified community development 
29.22 	entity, designate 50 percent of the qualified equity investment authority as a qualified equity 
29.23 	investment under section 45D of the Internal Revenue Code.
29.24 	(f) The qualified community development entity must provide the commissioner with 
29.25 	evidence of the receipt of the cash investment and, if the qualified community development 
29.26 	entity is not a Minnesota qualified community development entity, the designation of 50 
29.27 	percent of the qualified equity investment as a qualified equity investment under section 
29.28 	45D of the Internal Revenue Code within 35 days after receiving notice of certification. If 
29.29 	the qualified community development entity does not receive the cash investment, issue the 
29.30 	qualified equity investment within 30 days following receipt of the certification notice, and 
29.31 	comply with paragraph (e), clause (3), if applicable, the certification is void. A voided 
29.32 	certification must be returned to the commissioner and must first be awarded pro rata to 
29.33 	applicants that received awards of qualified equity investment authority and complied with 
29.34 	paragraph (e).
30.1 	(g) The commissioner shall notify the commissioner of revenue of credits approved 
30.2 	under this subdivision within 15 days of granting an application.
30.3 		Subd. 5.Credit recapture. (a) The commissioner shall recapture credits allowed under 
30.4 	this act and future credits are forfeited if:
30.5 	(1) any amount of the federal tax credit available with respect to a qualified equity 
30.6 	investment that is eligible for a credit under this section is recaptured under section 45D of 
30.7 	the Internal Revenue Code. In that case, the commissioner's recapture shall be proportionate 
30.8 	to the federal recapture with respect to that qualified equity investment;
30.9 	(2) the qualified community development entity redeems or makes principal repayment 
30.10 	with respect to a qualified equity investment prior to seven years after the date of issuance 
30.11 	of the qualified equity investment. In that case, the commissioner's recapture shall be 
30.12 	proportionate to the amount of the redemption or repayment with respect to the qualified 
30.13 	equity investment; or
30.14 	(3) the qualified community development entity fails to invest at least 100 percent of 
30.15 	the cash purchase price of the qualified equity investment in qualified low-income community 
30.16 	investments in greater Minnesota counties or metropolitan counties, as applicable, within 
30.17 	12 months of the issuance of the qualified equity investment and maintains the investment 
30.18 	in qualified low-income community investments in greater Minnesota counties or 
30.19 	metropolitan counties, as applicable, until the last credit allowance date for the qualified 
30.20 	equity investment. A qualified community development entity must use the proceeds of 
30.21 	qualified equity investments awarded under the greater Minnesota allocation to make 
30.22 	qualified low-income community investments in qualified active low-income community 
30.23 	businesses with principal business operations in greater Minnesota counties.
30.24 	(b) For purposes of paragraph (a), clause (3), an investment is considered maintained 
30.25 	by a qualified community development entity even if the investment has been sold or repaid, 
30.26 	provided that the qualified community development entity reinvests an amount equal to the 
30.27 	capital returned to or recovered by the qualified community development entity from the 
30.28 	original investment, exclusive of any profits realized, in another qualified low-income 
30.29 	community investment in this state as required under the greater Minnesota allocation or 
30.30 	metropolitan allocation within 12 months after the receipt of that capital. Periodic loan 
30.31 	repayments received by a qualified community development entity from a qualified active 
30.32 	low-income community business within a calendar year must be treated as maintained in 
30.33 	qualified low-income community investments if a qualified community development entity 
31.1 	reinvests the repayments in qualified low-income community investments by the end of the 
31.2 	following calendar year.
31.3 	(c) A qualified community development entity is not required to reinvest capital returned 
31.4 	from qualified low-income community investments after the sixth anniversary of the issuance 
31.5 	of the qualified equity investment, the proceeds of which were used to make the qualified 
31.6 	low-income community investment, and the qualified low-income community investment 
31.7 	is considered held by the qualified community development entity through the seventh 
31.8 	anniversary of the qualified equity investment's issuance.
31.9 	(d) With respect to any one qualified active low-income community business, the 
31.10 	maximum amount of qualified low-income community investments made in that business 
31.11 	in aggregate with all of its affiliates that may be counted toward the satisfaction of paragraph 
31.12 	(a), clause (3), is $10,000,000, whether made by one or several qualified community 
31.13 	development entities but exclusive of redeemed or repaid qualified low-income community 
31.14 	investment by the qualified active low-income community business.
31.15 	(e) The commissioner shall provide notice to the qualified community development 
31.16 	entity of any proposed recapture of credits pursuant to this subdivision. The notice must 
31.17 	specify the conditions under which the deficiency resulting in the proposed recapture occurred 
31.18 	and state that the credits will be recaptured within 90 days unless the qualified community 
31.19 	development entity complies with the conditions identified in the notice. If the entity fails 
31.20 	or is unable to cure the deficiency within the 90-day period, the commissioner shall provide 
31.21 	the entity and the taxpayer from whom the credit is to be recaptured with a final order of 
31.22 	recapture. Any credit for which a final recapture order has been issued must be recaptured 
31.23 	by the commissioner from the taxpayer who claimed the credit on a tax return. The qualified 
31.24 	equity investment authority of the recaptured credits must be returned to the commissioner 
31.25 	and must first be awarded pro rata to applicants that have received awards of qualified equity 
31.26 	investment authority and complied with this subdivision.
31.27 		Subd. 6.Examination and rulemaking. (a) The commissioner may conduct examinations 
31.28 	to verify that the credits under this section have been received and applied according to the 
31.29 	requirements of this section and to verify that no event has occurred that would result in a 
31.30 	recapture of credits under subdivision 5.
31.31 	(b) The commissioner may issue advisory letters to individual qualified community 
31.32 	development entities and their investors that are limited to the specific facts outlined in an 
31.33 	advisory letter request from a qualified community development entity. The rulings cannot 
31.34 	be relied upon by any person or entity other than the qualified community development 
32.1 	entity that requested the letter and the taxpayers that are entitled to any tax credits generated 
32.2 	from investments in the entity.
32.3 	(c) In rendering advisory letters and making other determinations under this section, to 
32.4 	the extent applicable, the commissioner shall rely upon guidance to section 45D of the 
32.5 	Internal Revenue Code and the rules and regulations issued thereunder.
32.6 		Subd. 7.Annual reporting by community development entities. (a) Each qualified 
32.7 	community development entity shall submit an annual report to the commissioner within 
32.8 	120 days after the beginning of each calendar year during the compliance period. No annual 
32.9 	report is due prior to the first anniversary of the initial credit allowance date. The report 
32.10 	must include but is not limited to information with respect to all qualified low-income 
32.11 	community investments made by the qualified community development entity, including:
32.12 	(1) the date and amount of, and bank statements or wire transfer reports documenting, 
32.13 	qualified low-income community investments;
32.14 	(2) the name and address of each qualified active low-income community business 
32.15 	funded by the qualified community development entity, the number of persons employed 
32.16 	by the business at the time of the initial qualified low-income community investment, and 
32.17 	a brief description of the business and its financing;
32.18 	(3) the number of employment positions maintained by each qualified active low-income 
32.19 	community business as of the date of the report or the end of the preceding calendar year 
32.20 	and the average annual salaries of those positions;
32.21 	(4) the total number of employment positions created and retained as a result of qualified 
32.22 	low-income community investments and the average annual salaries of those positions;
32.23 	(5) a certification by its chief executive officer or similar officer that no credits have 
32.24 	been subject to recapture under subdivision 5; and
32.25 	(6) any changes with respect to the taxpayers entitled to claim credits with respect to 
32.26 	qualified equity investments issued by the qualified community development entity since 
32.27 	its last report pursuant to this section.
32.28 	(b) The qualified community development entity is not required to provide the annual 
32.29 	report set forth in this section for qualified low-income community investments that have 
32.30 	been redeemed or repaid.
32.31 		Subd. 8.Program report. If the credit under this section has not been reviewed under 
32.32 	the provisions of section 3.8855 by December 15, 2031, the commissioner shall report to 
32.33 	the legislature no later than December 31, 2031, regarding the implementation of the credit 
33.1 	under this section, including an evaluation of the credit using the components listed in 
33.2 	section 3.885, subdivision 5.
33.3 		Subd. 9.Expiration. This section expires for taxable years beginning after December 
33.4 	31, 2030, except that the commissioner's authority to allow the credit under subdivision 2 
33.5 	based on certificates that were issued under subdivision 4 before expiration remains in effect 
33.6 	through the year following the year in which all certificates have either been canceled or 
33.7 	resulted in issuance of credit certificates, or 2033, whichever is earlier.
33.8 		Subd. 10.Account created; appropriation. The Minnesota new markets tax credit 
33.9 	account is created in the special revenue fund in the state treasury. The account is 
33.10 	administered by the commissioner. Application fees required under subdivision 3, paragraph 
33.11 	(a), clause (7), are appropriated to the commissioner for costs associated with certifying 
33.12 	applications and for personnel and administrative expenses related to administering the 
33.13 	credit under this section.

33.14 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
33.15 	31, 2022, and before January 1, 2031.

33.16 	Sec. 4. Minnesota Statutes 2021 Supplement, section 289A.08, subdivision 7a, is amended 
33.17 	to read:
33.18 		Subd. 7a.Pass-through entity tax. (a) For the purposes of this subdivision, the following 
33.19 	terms have the meanings given:
33.20 	(1) "income" has the meaning given in subdivision 7, paragraph (j), modified by the 
33.21 	addition provided in section 290.0131, subdivision 5, and the subtraction provided in section 
33.22 	290.0132, subdivision 3, except that the provisions that apply to a partnership apply to a 
33.23 	qualifying entity and the provisions that apply to a partner apply to a qualifying owner. The 
33.24 	income of both a resident and qualifying owner of an entity taxed as a partnership under 
33.25 	the Internal Revenue Code is not subject to allocation outside this state as provided for 
33.26 	resident individuals under section 290.17, subdivision 1, paragraph (a). The income of a
33.27 	nonresident qualifying owner or the income of a qualifying owner of an entity taxed as an 
33.28 	S corporation including a qualified subchapter S subsidiary organized under section 
33.29 	1361(b)(3)(B) of the Internal Revenue Code is allocated and assigned to this state as provided 
33.30 	for nonresident partners and shareholders under sections 290.17, 290.191, and 290.20;
33.31 	(2) "qualifying entity" means a partnership, limited liability company taxed as a 
33.32 	partnership or S corporation, or S corporation including a qualified subchapter S subsidiary 
33.33 	organized under section 1361(b)(3)(B) of the Internal Revenue Code. Qualifying entity does 
34.1 	not may include a partnership, limited liability company, or corporation that has a partnership, 
34.2 	limited liability company other than a disregarded entity, or corporation as a partner, member, 
34.3 	or shareholder, provided those entities are excluded from the qualifying entity's tax return; 
34.4 	the entity is taxed as a partnership, limited liability company, or S corporation; and is not 
34.5 	a publicly traded partnership, as defined in section 7704 of the Internal Revenue Code, as 
34.6 	amended through January 1, 2021; and
34.7 	(3) "qualifying owner" means:
34.8 	(i) a resident or nonresident individual,trust, or estate, that is a partner, member, or 
34.9 	shareholder of a qualifying entity; or
34.10 	(ii) a resident or nonresident trust that is a shareholder of a qualifying entity that is an 
34.11 	S corporation an entity taxed as a partnership under the Internal Revenue Code; or
34.12 	(iii) a disregarded entity that has a qualifying owner as its single owner.
34.13 	(b) For taxable years beginning after December 31, 2020, in which the taxes of a 
34.14 	qualifying owner are limited under section 164(b)(6)(B) of the Internal Revenue Code, a 
34.15 	qualifying entity may elect to file a return and pay the pass-through entity tax imposed under 
34.16 	paragraph (c). The election:
34.17 	(1) must be made on or before the due date or extended due date of the qualifying entity's 
34.18 	pass-through entity tax return;
34.19 	(2) may only be made by qualifying owners who collectively hold more than a 50 percent 
34.20 	ownership interest in the qualifying entity;
34.21 	(3) is binding on all qualifying owners who have an ownership interest in the qualifying 
34.22 	entity; and
34.23 	(4) once made is irrevocable for the taxable year.
34.24 	(c) Subject to the election in paragraph (b), a pass-through entity tax is imposed on a 
34.25 	qualifying entity in an amount equal to the sum of the tax liability of each qualifying owner.
34.26 	(d) The amount of a qualifying owner's tax liability under paragraph (c) is the amount 
34.27 	of the qualifying owner's income multiplied by the highest tax rate for individuals under 
34.28 	section 290.06, subdivision 2c. When making this determination:
34.29 	(1) nonbusiness deductions, standard deductions, or personal exemptions are not allowed; 
34.30 	and
34.31 	(2) a credit or deduction is allowed only to the extent allowed to the qualifying owner.
35.1 	(e) The amount of each credit and deduction used to determine a qualifying owner's tax 
35.2 	liability under paragraph (d) must also be used to determine that qualifying owner's income 
35.3 	tax liability under chapter 290.
35.4 	(f) This subdivision does not negate the requirement that a qualifying owner pay estimated 
35.5 	tax if the qualifying owner's tax liability would exceed the requirements set forth in section 
35.6 	289A.25. The qualifying owner's liability to pay estimated tax on the qualifying owner's 
35.7 	tax liability as determined under paragraph (d) is, however, satisfied when the qualifying 
35.8 	entity pays estimated tax in the manner prescribed in section 289A.25 for composite estimated 
35.9 	tax.
35.10 	(g) A qualifying owner's adjusted basis in the interest in the qualifying entity, and the 
35.11 	treatment of distributions, is determined as if the election to pay the pass-through entity tax 
35.12 	under paragraph (b) is not made.
35.13 	(h) To the extent not inconsistent with this subdivision, for purposes of this chapter, a 
35.14 	pass-through entity tax return must be treated as a composite return and a qualifying entity 
35.15 	filing a pass-through entity tax return must be treated as a partnership filing a composite 
35.16 	return.
35.17 	(i) The provisions of subdivision 17 apply to the election to pay the pass-through entity 
35.18 	tax under this subdivision.
35.19 	(j) If a nonresident qualifying owner of a qualifying entity making the election to file 
35.20 	and pay the tax under this subdivision has no other Minnesota source income, filing of the 
35.21 	pass-through entity tax return is a return for purposes of subdivision 1, provided that the 
35.22 	nonresident qualifying owner must not have any Minnesota source income other than the 
35.23 	income from the qualifying entity, other electing qualifying entities, and other partnerships 
35.24 	electing to file a composite return under subdivision 7. If it is determined that the nonresident 
35.25 	qualifying owner has other Minnesota source income, the inclusion of the income and tax 
35.26 	liability for that owner under this provision will not constitute a return to satisfy the 
35.27 	requirements of subdivision 1. The tax paid for the qualifying owner as part of the 
35.28 	pass-through entity tax return is allowed as a payment of the tax by the qualifying owner 
35.29 	on the date on which the pass-through entity tax return payment was made.

35.30 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
35.31 	after December 31, 2020.

36.1 	Sec. 5. Minnesota Statutes 2020, section 289A.10, subdivision 1, is amended to read:
36.2 		Subdivision 1.Return required. (a) In the case of a decedent who has an interest in 
36.3 	property with a situs in Minnesota, the personal representative must submit a Minnesota 
36.4 	estate tax return to the commissioner, on a form prescribed by the commissioner, if:
36.5 	(1) a federal estate tax return is required to be filed; or
36.6 	(2) the sum of the federal gross estate and federal adjusted taxable gifts, as defined in 
36.7 	section 2001(b) of the Internal Revenue Code, made within three years of the date of the 
36.8 	decedent's death exceeds $1,200,000 for estates of decedents dying in 2014; $1,400,000 for 
36.9 	estates of decedents dying in 2015; $1,600,000 for estates of decedents dying in 2016; 
36.10 	$2,100,000 for estates of decedents dying in 2017; $2,400,000 for estates of decedents dying 
36.11 	in 2018; $2,700,000 for estates of decedents dying in 2019; and $3,000,000 for estates of 
36.12 	decedents dying in 2020 and thereafter.
36.13 	(b) The return must contain a computation of the Minnesota estate tax due. The return 
36.14 	must be signed by the personal representative.
36.15 	(c) The return may include an election, as provided in section 291.03, subdivision 1e, 
36.16 	to allow a decedent's surviving spouse to take into account the decedent's deceased spousal 
36.17 	unused exclusion amount.

36.18 	EFFECTIVE DATE. This section is effective for estates of decedents dying after June 
36.19 	30, 2022.

36.20 	Sec. 6. Minnesota Statutes 2021 Supplement, section 289A.382, subdivision 2, is amended 
36.21 	to read:
36.22 		Subd. 2.Reporting and payment requirements for partnerships and tiered 
36.23 	partners. (a) Except for when an audited partnership makes the election in subdivision 3, 
36.24 	and except for negative federal adjustments required under federal law taken into account 
36.25 	by the partnership in the partnership return for the adjustment or other year, all final federal 
36.26 	adjustments of an audited partnership must comply with paragraph (b) and each direct 
36.27 	partner of the audited partnership, other than a tiered partner, must comply with paragraph 
36.28 	(c).
36.29 	(b) No later than 90 days after the final determination date, the audited partnership must:
36.30 	(1) file a completed federal adjustments report, including all partner-level information 
36.31 	required under section 289A.12, subdivision 3, with the commissioner;
37.1 	(2) notify each of its direct partners of their distributive share of the final federal 
37.2 	adjustments;
37.3 	(3) file an amended composite report for all direct partners who were included in a 
37.4 	composite return under section 289A.08, subdivision 7, in the reviewed year, and pay the 
37.5 	additional amount that would have been due had the federal adjustments been reported 
37.6 	properly as required; and
37.7 	(4) file amended withholding reports for all direct partners who were or should have 
37.8 	been subject to nonresident withholding under section 290.92, subdivision 4b, in the reviewed 
37.9 	year, and pay the additional amount that would have been due had the federal adjustments 
37.10 	been reported properly as required.; and
37.11 	(5) file an amended pass-through entity tax report for all direct partners who were 
37.12 	included in a pass-through entity tax return under section 289A.08, subdivision 7a, in the 
37.13 	reviewed year, and pay the additional amount that would have been due had the federal 
37.14 	adjustments been reported properly as required.
37.15 	(c) No later than 180 days after the final determination date, each direct partner, other 
37.16 	than a tiered partner, that is subject to a tax administered under this chapter, other than the 
37.17 	sales tax, must:
37.18 	(1) file a federal adjustments report reporting their distributive share of the adjustments 
37.19 	reported to them under paragraph (b), clause (2); and
37.20 	(2) pay any additional amount of tax due as if the final federal adjustment had been 
37.21 	properly reported, plus any penalty and interest due under this chapter, and less any credit 
37.22 	for related amounts paid or withheld and remitted on behalf of the direct partner under 
37.23 	paragraph (b), clauses (3) and (4).

37.24 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
37.25 	after December 31, 2020.

37.26 	Sec. 7. Minnesota Statutes 2020, section 290.0132, subdivision 4, is amended to read:
37.27 		Subd. 4.Education expenses. (a) Subject to the limits in paragraph (b), the following 
37.28 	amounts paid to others for each qualifying child are a subtraction:
37.29 	(1) education-related expenses; plus
37.30 	(2) tuition and fees paid to attend a school described in section 290.0674, subdivision 
37.31 	1, clause (4), that are not included in education-related expenses; less
37.32 	(3) any amount used to claim the credit under section 290.0674.
38.1 	(b) The maximum subtraction allowed under this subdivision is:
38.2 	(1) $1,625 $3,250 for each qualifying child in kindergarten through grade 6; and
38.3 	(2) $2,500 $5,000 for each qualifying child in grades 7 through 12.
38.4 	(c) The definitions in section 290.0674, subdivision 1, apply to this subdivision.
38.5 	(d) The commissioner shall annually adjust the subtraction amounts in paragraph (b) as 
38.6 	provided in section 270C.22. The statutory year is 2022.

38.7 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
38.8 	31, 2021.

38.9 	Sec. 8. Minnesota Statutes 2020, section 290.0132, subdivision 26, is amended to read:
38.10 		Subd. 26.Social Security benefits. (a) A portion The amount of taxable Social Security 
38.11 	benefits received by a taxpayer in the taxable year is allowed as a subtraction. The subtraction 
38.12 	equals the lesser of taxable Social Security benefits or a maximum subtraction subject to 
38.13 	the limits under paragraphs (b), (c), and (d).
38.14 	(b) For married taxpayers filing a joint return and surviving spouses, the maximum 
38.15 	subtraction equals $5,150. The maximum subtraction is reduced by 20 percent of provisional 
38.16 	income over $78,180. In no case is the subtraction less than zero.
38.17 	(c) For single or head-of-household taxpayers, the maximum subtraction equals $4,020. 
38.18 	The maximum subtraction is reduced by 20 percent of provisional income over $61,080. 
38.19 	In no case is the subtraction less than zero.
38.20 	(d) For married taxpayers filing separate returns, the maximum subtraction equals 
38.21 	one-half the maximum subtraction for joint returns under paragraph (b). The maximum 
38.22 	subtraction is reduced by 20 percent of provisional income over one-half the threshold 
38.23 	amount specified in paragraph (b). In no case is the subtraction less than zero.
38.24 	(e) For purposes of this subdivision, "provisional income" means modified adjusted 
38.25 	gross income as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of 
38.26 	the taxable Social Security benefits received during the taxable year, and "Social Security 
38.27 	benefits" has the meaning given in section 86(d)(1) of the Internal Revenue Code.
38.28 	(f) The commissioner shall adjust the maximum subtraction and threshold amounts in 
38.29 	paragraphs (b) to (d) as provided in section 270C.22. The statutory year is taxable year 
38.30 	2019. The maximum subtraction and threshold amounts as adjusted must be rounded to the 
38.31 	nearest $10 amount. If the amount ends in $5, the amount is rounded up to the nearest $10 
38.32 	amount.

39.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
39.2 	31, 2021.

39.3 	Sec. 9. Minnesota Statutes 2020, section 290.0132, is amended by adding a subdivision 
39.4 	to read:
39.5 		Subd. 31.Pension income; public safety officers and firefighters. (a) Income received 
39.6 	from the following pension plans, excluding disability income, is a subtraction:
39.7 	(1) the police and fire plan governed by sections 353.63 to 353.68;
39.8 	(2) the local government correctional service retirement plan under chapter 353E;
39.9 	(3) the state patrol retirement plan under chapter 352B;
39.10 	(4) the state correctional employees retirement plan under sections 352.90 to 352.955; 
39.11 	or
39.12 	(5) any similar annuity or benefit from a retirement system administered by the federal 
39.13 	government.
39.14 	(b) The subtraction applies to individuals who have attained at least 20 years of service 
39.15 	as a public official or employee and a member of a plan listed under paragraph (a), and have 
39.16 	not attained age 55 before December 31, 2022, and their surviving spouses.

39.17 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
39.18 	31, 2022.

39.19 	Sec. 10. Minnesota Statutes 2020, section 290.05, subdivision 1, is amended to read:
39.20 		Subdivision 1.Exempt entities. The following corporations, individuals, estates, trusts, 
39.21 	and organizations shall be exempted from taxation under this chapter, provided that every 
39.22 	such person or corporation claiming exemption under this chapter, in whole or in part, must 
39.23 	establish to the satisfaction of the commissioner the taxable status of any income or activity:
39.24 	(a) corporations, individuals, estates, and trusts engaged in the business of mining or 
39.25 	producing iron ore and mining, producing, or refining other ores, metals, and minerals, the 
39.26 	mining, production, or refining of which is subject to the occupation tax imposed by section 
39.27 	298.01; but if any such corporation, individual, estate, or trust engages in any other business 
39.28 	or activity or has income from any property not used in such business it shall be subject to 
39.29 	this tax computed on the net income from such property or such other business or activity. 
39.30 	Royalty shall not be considered as income from the business of mining or producing iron 
39.31 	ore within the meaning of this section;
40.1 	(b) the United States of America, the state of Minnesota or any political subdivision of 
40.2 	either agencies or instrumentalities, whether engaged in the discharge of governmental or 
40.3 	proprietary functions; and
40.4 	(c) any insurance company, other than a disqualified captive insurance company.; and
40.5 	(d) a Nuclear Decommissioning Reserve Fund, as defined in section 468A of the Internal 
40.6 	Revenue Code.

40.7 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
40.8 	31, 2024.

40.9 	Sec. 11. Minnesota Statutes 2021 Supplement, section 290.06, subdivision 2c, is amended 
40.10 	to read:
40.11 		Subd. 2c.Schedules of rates for individuals, estates, and trusts. (a) The income taxes 
40.12 	imposed by this chapter upon married individuals filing joint returns and surviving spouses 
40.13 	as defined in section 2(a) of the Internal Revenue Code must be computed by applying to 
40.14 	their taxable net income the following schedule of rates:
40.15 	(1) On the first $38,770 $41,050, 5.35 2.8 percent;
40.16 	(2) On all over $38,770 $41,050, but not over $154,020 $163,060, 6.8 percent;
40.17 	(3) On all over $154,020 $163,060, but not over $269,010 $284,810, 7.85 percent;
40.18 	(4) On all over $269,010 $284,810, 9.85 percent.
40.19 	Married individuals filing separate returns, estates, and trusts must compute their income 
40.20 	tax by applying the above rates to their taxable income, except that the income brackets 
40.21 	will be one-half of the above amounts after the adjustment required in subdivision 2d.
40.22 	(b) The income taxes imposed by this chapter upon unmarried individuals must be 
40.23 	computed by applying to taxable net income the following schedule of rates:
40.24 	(1) On the first $26,520 $28,080, 5.35 2.8 percent;
40.25 	(2) On all over $26,520 $28,080, but not over $87,110 $92,230, 6.8 percent;
40.26 	(3) On all over $87,110 $92,230, but not over $161,720 $171,220, 7.85 percent;
40.27 	(4) On all over $161,720 $171,220, 9.85 percent.
40.28 	(c) The income taxes imposed by this chapter upon unmarried individuals qualifying as 
40.29 	a head of household as defined in section 2(b) of the Internal Revenue Code must be 
40.30 	computed by applying to taxable net income the following schedule of rates:
41.1 	(1) On the first $32,650 $34,570, 5.35 2.8 percent;
41.2 	(2) On all over $32,650 $34,570, but not over $131,190 $138,890, 6.8 percent;
41.3 	(3) On all over $131,190 $138,890, but not over $214,980 $227,600, 7.85 percent;
41.4 	(4) On all over $214,980 $227,600, 9.85 percent.
41.5 	(d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax 
41.6 	of any individual taxpayer whose taxable net income for the taxable year is less than an 
41.7 	amount determined by the commissioner must be computed in accordance with tables 
41.8 	prepared and issued by the commissioner of revenue based on income brackets of not more 
41.9 	than $100. The amount of tax for each bracket shall be computed at the rates set forth in 
41.10 	this subdivision, provided that the commissioner may disregard a fractional part of a dollar 
41.11 	unless it amounts to 50 cents or more, in which case it may be increased to $1.
41.12 	(e) An individual who is not a Minnesota resident for the entire year must compute the 
41.13 	individual's Minnesota income tax as provided in this subdivision. After the application of 
41.14 	the nonrefundable credits provided in this chapter, the tax liability must then be multiplied 
41.15 	by a fraction in which:
41.16 	(1) the numerator is the individual's Minnesota source federal adjusted gross income as 
41.17 	defined in section 62 of the Internal Revenue Code and increased by:
41.18 	(i) the additions required under sections 290.0131, subdivisions 2, 6, 8 to 10, 16, and 
41.19 	17, and 290.0137, paragraph (a); and reduced by
41.20 	(ii) the Minnesota assignable portion of the subtraction for United States government 
41.21 	interest under section 290.0132, subdivision 2, the subtractions under sections 290.0132, 
41.22 	subdivisions 9, 10, 14, 15, 17, 18, and 27, and 290.0137, paragraph (c), after applying the 
41.23 	allocation and assignability provisions of section 290.081, clause (a), or 290.17; and
41.24 	(2) the denominator is the individual's federal adjusted gross income as defined in section 
41.25 	62 of the Internal Revenue Code, increased by:
41.26 	(i) the additions required under sections 290.0131, subdivisions 2, 6, 8 to 10, 16, and 
41.27 	17, and 290.0137, paragraph (a); and reduced by
41.28 	(ii) the subtractions under sections 290.0132, subdivisions 2, 9, 10, 14, 15, 17, 18, and 
41.29 	27, and 290.0137, paragraph (c).
41.30 	(f) If an individual who is not a Minnesota resident for the entire year is a qualifying 
41.31 	owner of a qualifying entity that elects to pay tax as provided in section 289A.08, subdivision 
41.32 	7a, paragraph (b), the individual must compute the individual's Minnesota income tax as 
42.1 	provided in paragraph (e), and also must include, to the extent attributed to the electing 
42.2 	qualifying entity:
42.3 	(1) in paragraph (e), clause (1), item (i), and paragraph (e), clause (2), item (i), the 
42.4 	addition under section 290.0131, subdivision 5; and
42.5 	(2) in paragraph (e), clause (1), item (ii), and paragraph (e), clause (2), item (ii), the 
42.6 	subtraction under section 290.0132, subdivision 3.

42.7 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
42.8 	31, 2021.

42.9 	Sec. 12. Minnesota Statutes 2020, section 290.06, subdivision 2d, is amended to read:
42.10 		Subd. 2d.Inflation adjustment of brackets. The commissioner shall annually adjust 
42.11 	the minimum and maximum dollar amounts for each rate bracket for which a tax is imposed 
42.12 	in subdivision 2c as provided in section 270C.22. The statutory year is taxable year 2019
42.13 	2022. The rate applicable to any rate bracket must not be changed. The dollar amounts 
42.14 	setting forth the tax shall be adjusted to reflect the changes in the rate brackets. The rate 
42.15 	brackets as adjusted must be rounded to the nearest $10 amount. If the rate bracket ends in 
42.16 	$5, it must be rounded up to the nearest $10 amount. The commissioner shall determine the 
42.17 	rate bracket for married filing separate returns after this adjustment is done. The rate bracket 
42.18 	for married filing separate must be one-half of the rate bracket for married filing joint.

42.19 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
42.20 	31, 2021.

42.21 	Sec. 13. Minnesota Statutes 2020, section 290.067, subdivision 1, is amended to read:
42.22 		Subdivision 1.Amount of credit. (a) A taxpayer may take as a credit against the tax 
42.23 	due from the taxpayer and a spouse, if any, under this chapter an amount equal to the 
42.24 	dependent care credit for which the taxpayer is eligible pursuant to the provisions of section 
42.25 	21 of the Internal Revenue Code except that in determining whether the child qualified as 
42.26 	a dependent, income received as a Minnesota family investment program grant or allowance 
42.27 	to or on behalf of the child must not be taken into account in determining whether the child 
42.28 	received more than half of the child's support from the taxpayer.
42.29 	(b) If a child who has not attained the age of six years at the close of the taxable year is 
42.30 	cared for at a licensed family day care home operated by the child's parent, the taxpayer is 
42.31 	deemed to have paid employment-related expenses. If the child is 16 months old or younger 
42.32 	at the close of the taxable year, the amount of expenses deemed to have been paid equals 
43.1 	the maximum limit for one qualified individual under section 21(c) and (d) of the Internal 
43.2 	Revenue Code. If the child is older than 16 months of age but has not attained the age of 
43.3 	six years at the close of the taxable year, the amount of expenses deemed to have been paid 
43.4 	equals the amount the licensee would charge for the care of a child of the same age for the 
43.5 	same number of hours of care.
43.6 	(c) If a married couple:
43.7 	(1) has a child who has not attained the age of one year at the close of the taxable year;
43.8 	(2) files a joint tax return for the taxable year; and
43.9 	(3) does not participate in a dependent care assistance program as defined in section 129 
43.10 	of the Internal Revenue Code, in lieu of the actual employment related expenses paid for 
43.11 	that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of (i) 
43.12 	the combined earned income of the couple or (ii) the amount of the maximum limit for one 
43.13 	qualified individual under section 21(c) and (d) of the Internal Revenue Code will be deemed 
43.14 	to be the employment related expense paid for that child. The earned income limitation of 
43.15 	section 21(d) of the Internal Revenue Code shall not apply to this deemed amount. These 
43.16 	deemed amounts apply regardless of whether any employment-related expenses have been 
43.17 	paid.
43.18 	(d) If the taxpayer is not required and does not file a federal individual income tax return 
43.19 	for the tax year, no credit is allowed for any amount paid to any person unless:
43.20 	(1) the name, address, and taxpayer identification number of the person are included on 
43.21 	the return claiming the credit; or
43.22 	(2) if the person is an organization described in section 501(c)(3) of the Internal Revenue 
43.23 	Code and exempt from tax under section 501(a) of the Internal Revenue Code, the name 
43.24 	and address of the person are included on the return claiming the credit.
43.25 	In the case of a failure to provide the information required under the preceding sentence, 
43.26 	the preceding sentence does not apply if it is shown that the taxpayer exercised due diligence 
43.27 	in attempting to provide the information required.
43.28 	(e) In the case of a nonresident, part-year resident, or a person who has earned income 
43.29 	not subject to tax under this chapter including earned income excluded pursuant to section 
43.30 	290.0132, subdivision 10, the credit determined under section 21 of the Internal Revenue 
43.31 	Code must be allocated based on the ratio by which the earned income of the claimant and 
43.32 	the claimant's spouse from Minnesota sources bears to the total earned income of the claimant 
43.33 	and the claimant's spouse.
44.1 	(f) For residents of Minnesota, the subtractions for military pay under section 290.0132, 
44.2 	subdivisions 11 and 12, are not considered "earned income not subject to tax under this 
44.3 	chapter."
44.4 	(g) For residents of Minnesota, the exclusion of combat pay under section 112 of the 
44.5 	Internal Revenue Code is not considered "earned income not subject to tax under this 
44.6 	chapter."
44.7 	(h) For taxpayers with federal adjusted gross income in excess of $52,230 $70,000, the 
44.8 	credit is equal to the lesser of the credit otherwise calculated under this subdivision, or the 
44.9 	amount equal to $600 minus five percent of federal adjusted gross income in excess of 
44.10 	$52,230 $70,000 for taxpayers with one qualified individual, or $1,200 minus five percent 
44.11 	of federal adjusted gross income in excess of $52,230 $70,000 for taxpayers with two or 
44.12 	more qualified individuals, but in no case is the credit less than zero.

44.13 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
44.14 	31, 2021.

44.15 	Sec. 14. Minnesota Statutes 2020, section 290.0674, subdivision 2, is amended to read:
44.16 		Subd. 2.Limitations. (a) For claimants with adjusted gross income not greater than 
44.17 	$33,500, the maximum credit allowed for a family is $1,000 multiplied by the number of 
44.18 	qualifying children in kindergarten through grade 12 in the family. The maximum credit 
44.19 	for families with one qualifying child in kindergarten through grade 12 is reduced by $1 
44.20 	for each $4 of household adjusted gross income over $33,500 $50,000, and the maximum 
44.21 	credit for families with two or more qualifying children in kindergarten through grade 12 
44.22 	is reduced by $2 for each $4 of household adjusted gross income over $33,500 $50,000, 
44.23 	but in no case is the credit less than zero. In the case of an individual who files an income 
44.24 	tax return on a fiscal year basis, the term "federal adjusted gross income" means federal 
44.25 	adjusted gross income reflected in the fiscal year ending in the next calendar year. Federal 
44.26 	adjusted gross income may not be reduced by the amount of a net operating loss carryback 
44.27 	or carryforward or a capital loss carryback or carryforward allowed for the year.
44.28 	(b) In the case of a married claimant, a credit is not allowed unless a joint income tax 
44.29 	return is filed.
44.30 	(c) For a nonresident or part-year resident, the credit determined under subdivision 1 
44.31 	and the maximum credit amount in paragraph (a) must be allocated using the percentage 
44.32 	calculated in section 290.06, subdivision 2c, paragraph (e).
45.1 	(d) The commissioner shall annually adjust the income amount in paragraph (a) as 
45.2 	provided in section 270C.22. The statutory year is 2022.

45.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
45.4 	31, 2021.

45.5 	Sec. 15. Minnesota Statutes 2020, section 290.068, subdivision 1, is amended to read:
45.6 		Subdivision 1.Credit allowed. A corporation, partners in a partnership, or shareholders 
45.7 	in a corporation treated as an "S" corporation under section 290.9725 are allowed a credit 
45.8 	against the tax computed under this chapter for the taxable year equal to:
45.9 	(a) ten percent of the first $2,000,000 of the excess (if any) of
45.10 	(1) the qualified research expenses for the taxable year, over
45.11 	(2) the base amount; and
45.12 	(b) four 4.25 percent on all of such excess expenses over $2,000,000.

45.13 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
45.14 	31, 2021.

45.15 	Sec. 16. Minnesota Statutes 2020, section 290.0681, subdivision 4, is amended to read:
45.16 		Subd. 4.Credit certificates; grants. (a)(1) The developer of a project for which the 
45.17 	office has issued an allocation certificate must notify the office when the project is placed 
45.18 	in service. Upon verifying that the project has been placed in service, and was allowed a 
45.19 	federal credit, the office must issue a credit certificate to the taxpayer designated in the 
45.20 	application or must issue a grant to the recipient designated in the application. The credit 
45.21 	certificate must state the amount of the credit.
45.22 	(2) The credit amount equals the federal credit allowed for the project.
45.23 	(3) The grant amount equals 90 percent of the federal credit allowed for the project.
45.24 	(b) The recipient of a credit certificate may assign the certificate to another taxpayer 
45.25 	before the first one-fifth payment is claimed, which is then allowed the credit under this 
45.26 	section or section 297I.20, subdivision 3. The first assignee may subsequently assign the 
45.27 	certificate in whole, but not in part, to a second assignee. An assignment is not valid unless 
45.28 	the assignee notifies the commissioner within 30 days of the date that the assignment is 
45.29 	made. The commissioner shall prescribe the forms necessary for notifying the commissioner 
45.30 	of the assignment of a credit certificate and for claiming a credit by assignment.
46.1 	(c) Credits passed through to partners, members, shareholders, or owners pursuant to 
46.2 	subdivision 5 are not an assignment of a credit certificate under this subdivision.
46.3 	(d) A grant agreement between the office and the recipient of a grant may allow the 
46.4 	grant to be issued to another individual or entity.

46.5 	EFFECTIVE DATE. This section is effective for property placed in service after June 
46.6 	30, 2022.

46.7 	Sec. 17. [290.0687] SMALL BUSINESS TAX CREDITS FOR PAID FAMILY LEAVE 
46.8 	BENEFITS.
46.9 		Subdivision 1.Employer tax credit. (a) A qualified employer is allowed a credit against 
46.10 	the taxes imposed under this chapter equal to the amount paid:
46.11 	(1) directly by the qualified employer for paid family leave benefits on behalf of a 
46.12 	qualified employee; or
46.13 	(2) to an insurance company to provide paid family leave insurance benefits to a qualified 
46.14 	employee.
46.15 	(b) The credit allowed to an employer under this subdivision for a qualified employee 
46.16 	for a taxable year is limited to the lesser of the amounts listed in clauses (1) to (3), to the 
46.17 	extent not deducted in determining federal taxable income for corporate filers, estates, or 
46.18 	trusts, or federal adjusted gross income for individual filers:
46.19 	(1) $3,000; or
46.20 	(2) 100 percent of the amount paid directly by the qualified employer for paid family 
46.21 	leave benefits on behalf of a qualified employee; or
46.22 	(3) 50 percent of the amount paid to an insurance company to provide paid family leave 
46.23 	insurance benefits to a qualified employee.
46.24 		Subd. 2.Definitions. (a) For purposes of this section, the terms in this subdivision have 
46.25 	the meanings given.
46.26 	(b) "Armed forces" means members of the National Guard and Reserves;
46.27 	(c) "Child" means a person who is:
46.28 	(1) under 18 years of age, or 18 years of age or older and incapable of self-care because 
46.29 	of a mental or physical disability; and
47.1 	(2) a biological, adopted, or foster son or daughter; a stepson or stepdaughter; a legal 
47.2 	ward; a son or daughter of a domestic partner; or a son or daughter of a person to whom the 
47.3 	employee stands in loco parentis.
47.4 	(d) "Employee" has the meaning given in section 290.92, subdivision 1, clause (3).
47.5 	(e) "Family leave" means leave for any of the following purposes:
47.6 	(1) participating in providing care, including physical or psychological care, for a family 
47.7 	member of the employee made necessary by the family member's serious health condition;
47.8 	(2) bonding with the employee's child during the first 12 months after the child's birth, 
47.9 	or the first 12 months after the placement of the child for adoption or foster care with the 
47.10 	employee; or
47.11 	(3) addressing a qualifying exigency, as interpreted under the Family and Medical Leave 
47.12 	Act, United States Code, title 29, section 2612(a)(1)(e), and Code of Federal Regulations, 
47.13 	title 29, sections 825.126(a)(1) to (8), arising from the fact that the spouse, child, or parent 
47.14 	of the employee is on active duty or has been notified of an impending call or order to active 
47.15 	duty in the armed forces of the United States.
47.16 	(f) "Family member" means a child, spouse, parent, or grandparent as defined in this 
47.17 	chapter.
47.18 	(g) "Parent" means a biological, foster, or adoptive parent; a stepparent; a legal guardian; 
47.19 	or another person who stood in loco parentis to the employee when the employee was a 
47.20 	child.
47.21 	(h) "Qualified employee" means an employee who has been employed by the qualified 
47.22 	employer for one year or more.
47.23 	(i) "Qualified employer" means an employer subject to the withholding requirements 
47.24 	under section 290.92, including a taxpaying employer referenced in section 268.046, who:
47.25 	(1) employs 50 or fewer employees in Minnesota; and
47.26 	(2) pays family leave benefits for one or more qualified employees.
47.27 	(j) "Serious health condition" means an illness, injury, impairment, or physical or mental 
47.28 	condition, including organ or tissue transplant or donation, that involves inpatient care in a 
47.29 	hospital, hospice, or residential health care facility, continuing treatment, or continuing 
47.30 	supervision by a health care provider as defined in an insurance policy. Continuing 
47.31 	supervision by a health care provider includes a period of incapacity that is permanent or 
48.1 	long term due to a condition for which treatment may not be effective and where the family 
48.2 	member is not receiving active treatment by a health care provider.
48.3 		Subd. 3.Nonresidents and part-year residents. For a nonresident or part-year resident, 
48.4 	the credit must be allocated using the percentage calculated in section 290.06, subdivision 
48.5 	2c, paragraph (e).
48.6 		Subd. 4.Partnerships; multiple owners. Credits granted to a partnership, a limited 
48.7 	liability company taxed as a partnership, an S corporation, or multiple owners of property 
48.8 	are passed through to the partners, members, shareholders, or owners, respectively, pro rata 
48.9 	to each partner, member, shareholder, or owner based on their share of the entity's assets 
48.10 	or as specially allocated in their organizational documents or any other executed document, 
48.11 	as of the last day of the taxable year.
48.12 		Subd. 5.Carryover. If the credit allowed under subdivision 1 exceeds the tax imposed 
48.13 	under this chapter, the excess is a credit carryover to each of the five succeeding taxable 
48.14 	years. The entire amount of the excess unused credit must be carried first to the earliest 
48.15 	taxable year to which the amount may be carried. The unused portion of the credit must be 
48.16 	carried to the following taxable year. No credit may be carried to a taxable year more than 
48.17 	five years after the taxable year in which the credit was earned.

48.18 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
48.19 	31, 2023, and before January 1, 2027.

48.20 	Sec. 18. [290.0693] NEW MARKETS TAX CREDIT.
48.21 		Subdivision 1.Definitions. For purposes of this section, terms defined in section 116X.01 
48.22 	have the meanings given in that section.
48.23 		Subd. 2.Credit allowed. (a) An entity that makes or is transferred a qualified equity 
48.24 	investment is allowed a credit against the tax imposed under this chapter equal to the amount 
48.25 	calculated under section 116X.01, subdivision 2.
48.26 	(b) Tax credits earned by or allocated to a partnership, a limited liability company taxed 
48.27 	as a partnership, or an S corporation are passed through to the partners, members, 
48.28 	shareholders, or owners, respectively, in accordance with the provisions of any agreement 
48.29 	among such partners, members, shareholders, or owners, or, in the absence of such agreement, 
48.30 	pro rata to each partner, member, shareholder, or owner based on their share of the entity's 
48.31 	assets as of the last day of the taxable year. A pass-through of a credit is not considered a 
48.32 	sale for the purposes of section 116X.01.
49.1 	(c) If the amount of the credit under this section exceeds the taxpayer's liability for tax 
49.2 	under this chapter, the excess is a credit carryover to each of the five succeeding taxable 
49.3 	years. The entire amount of the excess unused credit for the taxable year must be carried 
49.4 	first to the earliest of the taxable years to which the credit may be carried and then to each 
49.5 	successive year to which the credit may be carried. The amount of the unused credit that 
49.6 	may be added under this paragraph may not exceed the taxpayer's liability for tax, less any 
49.7 	credit for the current taxable year.
49.8 		Subd. 3.Audit powers. Notwithstanding the certification eligibility issued by the 
49.9 	commissioner of employment and economic development under section 116X.01, subdivision 
49.10 	4, the commissioner may utilize any audit and examination powers under chapter 270C or 
49.11 	289A to the extent necessary to verify that the taxpayer is eligible for the credit and to assess 
49.12 	for the amount of any improperly claimed credit.
49.13 		Subd. 4.Sunset. This section expires at the same time and on the same terms as section 
49.14 	116X.01, except that the expiration of this section does not affect the commissioner of 
49.15 	revenue's authority to audit or power of examination and assessment for credits claimed 
49.16 	under this section.

49.17 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
49.18 	31, 2022, and before January 1, 2031.

49.19 	Sec. 19. Minnesota Statutes 2020, section 290.091, subdivision 2, is amended to read:
49.20 		Subd. 2.Definitions. For purposes of the tax imposed by this section, the following 
49.21 	terms have the meanings given.
49.22 	(a) "Alternative minimum taxable income" means the sum of the following for the taxable 
49.23 	year:
49.24 	(1) the taxpayer's federal alternative minimum taxable income as defined in section 
49.25 	55(b)(2) of the Internal Revenue Code;
49.26 	(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum 
49.27 	taxable income, but excluding:
49.28 	(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
49.29 	(ii) the medical expense deduction;
49.30 	(iii) the casualty, theft, and disaster loss deduction; and
49.31 	(iv) the impairment-related work expenses of a person with a disability;
50.1 	(3) for depletion allowances computed under section 613A(c) of the Internal Revenue 
50.2 	Code, with respect to each property (as defined in section 614 of the Internal Revenue Code), 
50.3 	to the extent not included in federal alternative minimum taxable income, the excess of the 
50.4 	deduction for depletion allowable under section 611 of the Internal Revenue Code for the 
50.5 	taxable year over the adjusted basis of the property at the end of the taxable year (determined 
50.6 	without regard to the depletion deduction for the taxable year);
50.7 	(4) to the extent not included in federal alternative minimum taxable income, the amount 
50.8 	of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue 
50.9 	Code determined without regard to subparagraph (E);
50.10 	(5) to the extent not included in federal alternative minimum taxable income, the amount 
50.11 	of interest income as provided by section 290.0131, subdivision 2;
50.12 	(6) the amount of addition required by section 290.0131, subdivisions 9, 10, and 16;
50.13 	(7) the deduction allowed under section 199A of the Internal Revenue Code, to the extent 
50.14 	not included in the addition required under clause (6); and
50.15 	(8) to the extent not included in federal alternative minimum taxable income, the amount 
50.16 	of foreign-derived intangible income deducted under section 250 of the Internal Revenue 
50.17 	Code;
50.18 	less the sum of the amounts determined under the following:
50.19 	(i) interest income as defined in section 290.0132, subdivision 2;
50.20 	(ii) an overpayment of state income tax as provided by section 290.0132, subdivision 
50.21 	3, to the extent included in federal alternative minimum taxable income;
50.22 	(iii) the amount of investment interest paid or accrued within the taxable year on 
50.23 	indebtedness to the extent that the amount does not exceed net investment income, as defined 
50.24 	in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted 
50.25 	in computing federal adjusted gross income;
50.26 	(iv) amounts subtracted from federal taxable or adjusted gross income as provided by 
50.27 	section 290.0132, subdivisions 7, 9 to 15, 17, 21, 24, and 26 to 29, and 31;
50.28 	(v) the amount of the net operating loss allowed under section 290.095, subdivision 11, 
50.29 	paragraph (c); and
50.30 	(vi) the amount allowable as a Minnesota itemized deduction under section 290.0122, 
50.31 	subdivision 7.
51.1 	In the case of an estate or trust, alternative minimum taxable income must be computed 
51.2 	as provided in section 59(c) of the Internal Revenue Code, except alternative minimum 
51.3 	taxable income must be increased by the addition in section 290.0131, subdivision 16.
51.4 	(b) "Investment interest" means investment interest as defined in section 163(d)(3) of 
51.5 	the Internal Revenue Code.
51.6 	(c) "Net minimum tax" means the minimum tax imposed by this section.
51.7 	(d) "Regular tax" means the tax that would be imposed under this chapter (without regard 
51.8 	to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed 
51.9 	under this chapter.
51.10 	(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income 
51.11 	after subtracting the exemption amount determined under subdivision 3.

51.12 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
51.13 	31, 2022.

51.14 	Sec. 20. Minnesota Statutes 2020, section 291.016, subdivision 3, is amended to read:
51.15 		Subd. 3.Subtraction. (a) For estates of decedents dying after December 31, 2016, A 
51.16 	subtraction is allowed in computing the Minnesota taxable estate, equal to the sum of:
51.17 	(1) the an exclusion amount for the year of death under paragraph (b) of $3,000,000; 
51.18 	and
51.19 	(2) the lesser of:
51.20 	(i) (2) the value of qualified small business property under section 291.03, subdivision 
51.21 	9, and the value of qualified farm property under section 291.03, subdivision 10; or, up to 
51.22 	$2,000,000.
51.23 	(ii) $5,000,000 minus the exclusion amount for the year of death under paragraph (b).
51.24 	(b) The following exclusion amounts apply for the year of death:
51.25 	(1) $2,100,000 for decedents dying in 2017;
51.26 	(2) $2,400,000 for decedents dying in 2018;
51.27 	(3) $2,700,000 for decedents dying in 2019; and
51.28 	(4) $3,000,000 for decedents dying in 2020 and thereafter.
52.1 	(b) In the case of a decedent that is a surviving spouse there is an additional subtraction 
52.2 	allowed in computing the Minnesota taxable estate, a deceased spousal unused exclusion 
52.3 	amount, which is equal to the lesser of:
52.4 	(1) $3,000,000; or
52.5 	(2) the excess of $3,000,000 over the amount of the Minnesota taxable estate of the last 
52.6 	predeceased spouse of the decedent, but not including in the taxable estate property described 
52.7 	in section 291.03, subdivisions 9 and 10, but in no case less than zero.
52.8 	(c) The subtraction under this subdivision must not reduce the Minnesota taxable estate 
52.9 	to less than zero.

52.10 	EFFECTIVE DATE. This section is effective for estates of decedents dying after June 
52.11 	30, 2022.

52.12 	Sec. 21. Minnesota Statutes 2020, section 291.03, subdivision 1, is amended to read:
52.13 		Subdivision 1.Tax amount. The tax imposed must be computed by applying to the 
52.14 	Minnesota taxable estate the following schedule of rates and then multiplying the resulting 
52.15 	amount multiplied by a fraction, not greater than one, the numerator of which is the value 
52.16 	of the Minnesota gross estate plus the value of gifts under section 291.016, subdivision 2, 
52.17 	clause (3), with a Minnesota situs, and the denominator of which is the federal gross estate 
52.18 	plus the value of gifts under section 291.016, subdivision 2, clause (3):
52.19 	(a) For estates of decedents dying in 2017:

52.20	Amount of Minnesota Taxable Estate
	Rate of Tax
	
52.21	Not over $5,100,000
	12 percent
	
52.2252.23	Over $5,100,000 but not over $7,100,000
	$612,000 plus 12.8 percent of the excess over 
$5,100,000
	
52.2452.25	Over $7,100,000 but not over $8,100,000
	$868,000 plus 13.6 percent of the excess over 
$7,100,000
	
52.2652.27	Over $8,100,000 but not over $9,100,000
	$1,004,000 plus 14.4 percent of the excess 
over $8,100,000
	
52.2852.29	Over $9,100,000 but not over $10,100,000
	$1,148,000 plus 15.2 percent of the excess 
over $9,100,000
	
52.3052.31	Over $10,100,000
	$1,300,000 plus 16 percent of the excess over 
$10,100,000
	
52.32 	(b) For estates of decedents dying in 2018 and thereafter:

52.33	Amount of Minnesota Taxable Estate
	Rate of Tax
	
52.34	Not over $7,100,000
	13 percent
	
52.3552.36	Over $7,100,000 but not over $8,100,000
	$923,000 plus 13.6 percent of the excess over 
$7,100,000
	
53.153.2	Over $8,100,000 but not over $9,100,000
	$1,059,000 plus 14.4 percent of the excess 
over $8,100,000
	
53.353.4	Over $9,100,000 but not over $10,100,000
	$1,203,000 plus 15.2 percent of the excess 
over $9,100,000
	
53.553.6	Over $10,100,000
	$1,355,000 plus 16 percent of the excess over 
$10,100,000

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

53.8 	Sec. 22. Minnesota Statutes 2020, section 291.03, is amended by adding a subdivision to 
53.9 	read:
53.10 		Subd. 1e.Election of portability of deceased spousal unused exclusion amounts; 
53.11 	election irrevocable; deemed elections. (a) A personal representative of a decedent's estate 
53.12 	may elect, on a return required under section 289A.10, subdivision 1, to allow a decedent's 
53.13 	surviving spouse to take into account the decedent's deceased spousal unused exclusion 
53.14 	amount, as provided in section 291.016, subdivision 3, paragraph (b).
53.15 	(b) A personal representative of a decedent's estate that is not required to file a return 
53.16 	under section 289A.10, subdivision 1, must file a return to allow a decedent's surviving 
53.17 	spouse to take into account the decedent's deceased spousal unused exclusion amount, as 
53.18 	provided in section 291.016, subdivision 3, paragraph (b). The return is subject to the same 
53.19 	provisions as a return required under section 289A.10, subdivision 1.
53.20 	(c) An election under paragraph (a) or (b) is irrevocable. The personal representative of 
53.21 	a decedent's estate must state affirmatively on the return that the decedent's estate is electing 
53.22 	portability. The commissioner may prescribe the form of the election on the return.

53.23 	EFFECTIVE DATE. This section is effective for estates of decedents dying after June 
53.24 	30, 2022.

53.25 	Sec. 23. Minnesota Statutes 2020, section 297I.20, is amended by adding a subdivision 
53.26 	to read:
53.27 		Subd. 6.New markets tax credit. A taxpayer may claim a credit against the premiums 
53.28 	tax imposed under this chapter equal to the amount calculated under section 116X.01, 
53.29 	subdivision 2. If the amount of the credit exceeds the liability for tax under this chapter, the 
53.30 	excess is a credit carryover to each of the five succeeding taxable years. The entire amount 
53.31 	of the excess unused credit for the taxable year must be carried first to the earliest of the 
53.32 	taxable years to which the credit may be carried and then to each successive year to which 
53.33 	the credit may be carried. This credit does not affect the calculation of fire state aid under 
53.34 	section 477B.03 and police state aid under section 477C.03.

54.1 	EFFECTIVE DATE. This section is effective for premiums received after December 
54.2 	31, 2022, and before January 1, 2031.

54.3 	Sec. 24. PRECEPTOR CREDIT.
 54.4 		Subdivision 1.Credit allowed. (a) An individual who qualifies as a preceptor under 
54.5 	this section is allowed a credit against the tax imposed by Minnesota Statutes, chapter 290. 
54.6 	The credit equals:
54.7 	(1) $2,500 for an individual who served as a preceptor for at least four weeks or 160 
54.8 	hours but not more than seven weeks or 280 hours during the taxable year;
54.9 	(2) $3,750 for an individual who served as a preceptor for at least eight weeks or 320 
54.10 	hours but not more than 11 weeks or 440 hours during the taxable year; and
54.11 	(3) $5,000 for an individual who served as a preceptor for at least 12 weeks or 480 hours 
54.12 	during the taxable year.
54.13 	(b) For purposes of this section, a "preceptor" means an advanced practice registered 
54.14 	nurse, physician assistant, or mental health professional who:
54.15 	(1) served as a health professions student preceptor or medical resident preceptor for at 
54.16 	least four weeks or 160 hours during the taxable year; and
54.17 	(2) received no additional compensation for serving as a preceptor to an advanced practice 
54.18 	registered nurse, physician assistant, or mental health professional student.
54.19 	(c) If the amount of the credit that an individual is eligible to receive under this section 
54.20 	exceeds the individual's tax liability under Minnesota Statutes, chapter 290, the commissioner 
54.21 	of revenue shall refund the excess to the taxpayer.
54.22 	(d) For a nonresident or part-year resident taxpayer, the credit must be allocated based 
54.23 	on the percentage calculated under Minnesota Statutes, section 290.06, subdivision 2c, 
54.24 	paragraph (e).
54.25 	(e) The commissioner of revenue, in consultation with the commissioner of health, shall 
54.26 	prescribe the form and manner in which the credit must be claimed.
54.27 		Subd. 2.Appropriation. An amount sufficient to pay the refunds required by this section 
54.28 	is appropriated to the commissioner of revenue from the general fund.
54.29 		Subd. 3.Report. (a) By March 1, 2026, the commissioner of revenue, in consultation 
54.30 	with the commissioner of health, shall issue a report to the chairs and ranking minority 
55.1 	members of the committees of the house of representatives and senate with jurisdiction over 
55.2 	taxes, higher education, and health and human services detailing:
55.3 	(1) the number of preceptors claiming the credit;
55.4 	(2) the average amount of credits claimed;
55.5 	(3) the geographical distribution by county of the location of the preceptor's services;
55.6 	(4) the professions of the preceptor and the students served by the preceptor; and
55.7 	(5) the impact of the tax credit on the availability of preceptors in Minnesota.
55.8 	(b) The report required under this subdivision must comply with Minnesota Statutes, 
55.9 	sections 3.195 and 3.197.

55.10 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
55.11 	31, 2022, and before January 1, 2026.

55.12 	Sec. 25. REPEALER.
 55.13 	(a) Minnesota Statutes 2020, sections 290.0131, subdivision 15; and 290.0674, 
55.14 	subdivision 2a, are repealed.
55.15 	(b) Minnesota Statutes 2021 Supplement, section 290.0681, subdivision 10, is repealed.

55.16 	EFFECTIVE DATE. Paragraph (a) is effective for taxable years beginning after 
55.17 	December 31, 2021. Paragraph (b) is effective the day following final enactment.

55.18 	ARTICLE 3
55.19 	SALES AND USE TAXES

55.20 	Section 1. Minnesota Statutes 2020, section 297A.67, subdivision 35, is amended to read:
55.21 		Subd. 35.Suite licenses. The sale of the privilege of admission under section 297A.61, 
55.22 	subdivision 3, paragraph (g), clause (1), to a place of amusement or athletic event does not 
55.23 	include consideration paid for a license to use a private suite, private skybox, or private box 
55.24 	seat, and the sale of the license is exempt provided that: (1) the lessee may use the private 
55.25 	suite, private skybox, or private box seat by mutual arrangement with the lessor on days 
55.26 	when there is no amusement or athletic event; and (2) the sales price for the privilege of 
55.27 	admission is separately stated and is equal to or greater than the highest priced general 
55.28 	admission ticket for the closest seat not in the private suite, private skybox, or private box 
55.29 	seat. The sale of food and beverages for consumption in a private suite, private skybox, or 
56.1 	private box seat must be taxable to the extent provided under this chapter, but these taxable 
56.2 	sales do not invalidate the exemption in this subdivision.

56.3 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
56.4 	30, 2023.

56.5 	Sec. 2. Minnesota Statutes 2021 Supplement, section 297A.67, subdivision 38, is amended 
56.6 	to read:
56.7 		Subd. 38.Season ticket purchasing rights to collegiate events. (a) The sale of a right 
56.8 	to purchase the privilege of admission to a college or university athletic event in a preferred 
56.9 	viewing location for a season of a particular athletic event is exempt provided that:
56.10 	(1) the consideration paid for the right to purchase is used entirely to support student 
56.11 	scholarships, wellness, and academic costs;
56.12 	(2) the consideration paid for the right to purchase is separately stated from the admission 
56.13 	price; and
56.14 	(3) the admission price is equal to or greater than the highest priced general admission 
56.15 	ticket for the closest seat not in the preferred viewing location.
56.16 	(b) The sale of food and beverages for consumption in a preferred seating location must 
56.17 	be taxable to the extent provided under this chapter, but these taxable sales do not invalidate 
56.18 	the exemption in this subdivision.

56.19 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
56.20 	30, 2023.

56.21 	Sec. 3. Minnesota Statutes 2020, section 297A.68, is amended by adding a subdivision to 
56.22 	read:
56.23 		Subd. 46.Certain amenities included with privilege of admission. Amenities included 
56.24 	in the sales price of the privilege of admission under section 297A.61, subdivision 3, 
56.25 	paragraph (m), are exempt when purchased by a taxpayer selling the privilege of admission.

56.26 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
56.27 	30, 2023.

56.28 	Sec. 4. Minnesota Statutes 2020, section 297A.69, subdivision 4, is amended to read:
56.29 		Subd. 4.Machinery, equipment, and fencing. The following machinery, equipment, 
56.30 	and fencing is exempt:
57.1 	(1) farm machinery;
57.2 	(2) logging equipment, including chain saws used for commercial logging;
57.3 	(3) fencing:
57.4 	(i) used for the containment of farmed Cervidae, as defined in section 35.153, subdivision 
57.5 	3; or
57.6 	(ii) on property classified as class 2a under section 273.13, subdivision 23;
57.7 	(4) primary and backup generator units used to generate electricity for the purpose of 
57.8 	operating farm machinery, aquacultural production equipment, or logging equipment, or 
57.9 	providing light or space heating necessary for the production of livestock, dairy animals, 
57.10 	dairy products, or poultry and poultry products; and
57.11 	(5) aquaculture production equipment.

57.12 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
57.13 	made after June 30, 2021.

57.14 	Sec. 5. Minnesota Statutes 2020, section 297A.70, is amended by adding a subdivision to 
57.15 	read:
57.16 		Subd. 22.Animal shelters. (a) For purposes of this subdivision, the term "animal shelter" 
57.17 	means a nonprofit organization engaged in the business of rescuing, sheltering, and finding 
57.18 	homes for unwanted animals.
57.19 	(b) Purchases made by an animal shelter are exempt if the purchases are used directly 
57.20 	in the activities of rescuing, sheltering, and finding homes for unwanted animals. The 
57.21 	exemption under this paragraph does not apply to the following purchases:
57.22 	(1) building, construction, or reconstruction materials purchased by a contractor or a 
57.23 	subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed 
57.24 	maximum price covering both labor and materials for use in the construction, alteration, or 
57.25 	repair of a building or facility;
57.26 	(2) construction materials purchased by an animal shelter or the animal shelter's 
57.27 	contractors to be used in constructing buildings or facilities that will not be used principally 
57.28 	by the animal shelter;
57.29 	(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2), 
57.30 	and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 297A.67, 
57.31 	subdivision 2; and
58.1 	(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11.
58.2 	(c) The sale or adoption of unwanted animals by an animal shelter and the sale of 
58.3 	associated animal supplies and equipment by an animal shelter are exempt.
58.4 	(d) Sales made by and events run by an animal shelter for fund-raising purposes are 
58.5 	exempt. Exempt sales include the sale of prepared food, candy, and soft drinks at a 
58.6 	fund-raising event. The exemption under this paragraph is subject to the following limits:
58.7 	(1) gross receipts from all fund-raising sales are taxable if the total fund-raising by the 
58.8 	animal shelter exceeds 24 days per year;
58.9 	(2) it does not apply to fund-raising events conducted on premises leased for more than 
58.10 	five days but less than 30 days; and
58.11 	(3) it does not apply to admission charges for events involving bingo or other gambling 
58.12 	activities or to charges for use of amusement devices involving bingo or other gambling 
58.13 	activities.

58.14 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
58.15 	30, 2022.

58.16 	Sec. 6. Minnesota Statutes 2021 Supplement, section 297A.71, subdivision 52, is amended 
58.17 	to read:
58.18 		Subd. 52.Construction; certain local government facilities. (a) Materials and supplies 
58.19 	used in and equipment incorporated into the construction, reconstruction, upgrade, expansion, 
58.20 	or remodeling of the following local government owned facilities are exempt:
58.21 	(1) a new fire station, which includes firefighting, emergency management, public safety 
58.22 	training, and other public safety facilities in the city of Monticello if materials, supplies, 
58.23 	and equipment are purchased after January 31, 2019, and before January 1, 2022;
58.24 	(2) a new fire station, which includes firefighting and public safety training facilities 
58.25 	and public safety facilities, in the city of Inver Grove Heights if materials, supplies, and 
58.26 	equipment are purchased after June 30, 2018, and before January 1, 2021;
58.27 	(3) a fire station and police station, including access roads, lighting, sidewalks, and 
58.28 	utility components, on or adjacent to the property on which the fire station or police station 
58.29 	are located that are necessary for safe access to and use of those buildings, in the city of 
58.30 	Minnetonka if materials, supplies, and equipment are purchased after May 23, 2019, and 
58.31 	before January 1, 2022;
59.1 	(4) the school building in Independent School District No. 414, Minneota, if materials, 
59.2 	supplies, and equipment are purchased after January 1, 2018, and before January 1, 2021;
59.3 	(5) a fire station in the city of Mendota Heights, if materials, supplies, and equipment 
59.4 	are purchased after December 31, 2018, and before January 1, 2021; and
59.5 	(6) a Dakota County law enforcement collaboration center, also known as the Safety 
59.6 	and Mental Health Alternative Response Training (SMART) Center, if materials, supplies, 
59.7 	and equipment are purchased after June 30, 2019, and before July 1, 2021.; and
59.8 	(7) the North Metro Regional Public Safety Training Facility in Maple Grove, if materials, 
59.9 	supplies, and equipment are purchased after August 31, 2021, and before December 31, 
59.10 	2023.
59.11 	(b) The tax must be imposed and collected as if the rate under section 297A.62, 
59.12 	subdivision 1, applied and then refunded in the manner provided in section 297A.75.
59.13 	(c) The total refund for the project listed in paragraph (a), clause (3), must not exceed 
59.14 	$850,000.

59.15 	EFFECTIVE DATE. This section is effective the day following final enactment and 
59.16 	applies retroactively to sales and purchases made during the period indicated for the project 
59.17 	in paragraph (a), clause (7).

59.18 	Sec. 7. Minnesota Statutes 2020, section 297A.71, is amended by adding a subdivision to 
59.19 	read:
59.20 		Subd. 54.Construction materials purchased by contractors; exemption for certain 
59.21 	entities. (a) Materials and supplies used or consumed in and equipment incorporated into 
59.22 	the construction, reconstruction, repair, maintenance, or improvement of buildings or 
59.23 	facilities used principally by school districts, as defined under section 297A.70, subdivision 
59.24 	2, paragraph (c), are exempt.
59.25 	(b) Materials and supplies used or consumed in and equipment incorporated into the 
59.26 	construction, reconstruction, repair, maintenance, or improvement of public infrastructure 
59.27 	of any kind, including but not limited to roads, bridges, culverts, drinking water facilities, 
59.28 	and wastewater facilities, purchased by a contractor, subcontractor, or builder as part of a 
59.29 	contract with a school district, as defined under section 297A.70, subdivision 2, paragraph 
59.30 	(c), are exempt.
60.1 	(c) The tax on purchases exempt under this subdivision must be imposed and collected 
60.2 	as if the rate under section 297A.62, subdivision 1, applied, and then refunded in the manner 
60.3 	provided in section 297A.75.

60.4 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
60.5 	30, 2024.

60.6 	Sec. 8. Minnesota Statutes 2020, section 297A.71, is amended by adding a subdivision to 
60.7 	read:
60.8 		Subd. 55.Building, repair, or replacement materials; farm fencing material. Materials 
60.9 	and supplies used or consumed in, and equipment incorporated into, the construction, 
60.10 	improvement, repair, or replacement of farm fencing material that is not exempt under 
60.11 	section 297A.69, subdivision 4, are exempt.

60.12 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
60.13 	made after June 30, 2021.

60.14 	Sec. 9. Minnesota Statutes 2021 Supplement, section 297A.75, subdivision 1, is amended 
60.15 	to read:
60.16 		Subdivision 1.Tax collected. The tax on the gross receipts from the sale of the following 
60.17 	exempt items must be imposed and collected as if the sale were taxable and the rate under 
60.18 	section 297A.62, subdivision 1, applied. The exempt items include:
60.19 	(1) building materials for an agricultural processing facility exempt under section 
60.20 	297A.71, subdivision 13;
60.21 	(2) building materials for mineral production facilities exempt under section 297A.71, 
60.22 	subdivision 14;
60.23 	(3) building materials for correctional facilities under section 297A.71, subdivision 3;
60.24 	(4) building materials used in a residence for veterans with a disability exempt under 
60.25 	section 297A.71, subdivision 11;
60.26 	(5) elevators and building materials exempt under section 297A.71, subdivision 12;
60.27 	(6) materials and supplies for qualified low-income housing under section 297A.71, 
60.28 	subdivision 23;
60.29 	(7) materials, supplies, and equipment for municipal electric utility facilities under 
60.30 	section 297A.71, subdivision 35;
61.1 	(8) equipment and materials used for the generation, transmission, and distribution of 
61.2 	electrical energy and an aerial camera package exempt under section 297A.68, subdivision 
61.3 	37;
61.4 	(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph 
61.5 	(a), clause (10);
61.6 	(10) materials, supplies, and equipment for construction or improvement of projects and 
61.7 	facilities under section 297A.71, subdivision 40;
61.8 	(11) materials, supplies, and equipment for construction, improvement, or expansion of 
61.9 	a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision 45;
61.10 	(12) enterprise information technology equipment and computer software for use in a 
61.11 	qualified data center exempt under section 297A.68, subdivision 42;
61.12 	(13) materials, supplies, and equipment for qualifying capital projects under section 
61.13 	297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b);
61.14 	(14) items purchased for use in providing critical access dental services exempt under 
61.15 	section 297A.70, subdivision 7, paragraph (c);
61.16 	(15) items and services purchased under a business subsidy agreement for use or 
61.17 	consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 
61.18 	44;
61.19 	(16) building materials, equipment, and supplies for constructing or replacing real 
61.20 	property exempt under section 297A.71, subdivisions 49; 50, paragraph (b); and 51;
61.21 	(17) building materials, equipment, and supplies for qualifying capital projects under 
61.22 	section 297A.71, subdivision 52; and
61.23 	(18) building materials, equipment, and supplies for constructing, remodeling, expanding, 
61.24 	or improving a fire station, police station, or related facilities exempt under section 297A.71, 
61.25 	subdivision 53.; and
61.26 	(19) building construction or reconstruction materials, supplies, and equipment exempt 
61.27 	under section 297A.71, subdivision 54.

61.28 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
61.29 	30, 2024.

62.1 	Sec. 10. Minnesota Statutes 2021 Supplement, section 297A.75, subdivision 2, is amended 
62.2 	to read:
62.3 		Subd. 2.Refund; eligible persons. Upon application on forms prescribed by the 
62.4 	commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must 
62.5 	be paid to the applicant. Only the following persons may apply for the refund:
62.6 	(1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;
62.7 	(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;
62.8 	(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits 
62.9 	provided in United States Code, title 38, chapter 21;
62.10 	(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead 
62.11 	property;
62.12 	(5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;
62.13 	(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a 
62.14 	joint venture of municipal electric utilities;
62.15 	(7) for subdivision 1, clauses (8), (11), (12), and (15), the owner of the qualifying 
62.16 	business;
62.17 	(8) for subdivision 1, clauses (9), (10), (13), (17), and (18), the applicant must be the 
62.18 	governmental entity that owns or contracts for the project or facility; and
62.19 	(9) for subdivision 1, clause (16), the applicant must be the owner or developer of the 
62.20 	building or project; and
62.21 	(10) for subdivision 1, clause (19), the applicant must be the entity:
62.22 	(i) listed in section 297A.71, subdivision 54, paragraph (a), that principally uses the 
62.23 	building or facility; or
62.24 	(ii) listed in section 297A.71, subdivision 54, paragraph (b), that contracts with a 
62.25 	contractor, subcontractor, or builder for the public infrastructure project.

62.26 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
62.27 	30, 2024.

63.1 	Sec. 11. Minnesota Statutes 2021 Supplement, section 297A.75, subdivision 3, is amended 
63.2 	to read:
63.3 		Subd. 3.Application. (a) The application must include sufficient information to permit 
63.4 	the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor, 
63.5 	or builder, under subdivision 1, clauses (3) to (13) or (15) to (18) (19), the contractor, 
63.6 	subcontractor, or builder must furnish to the refund applicant a statement including the cost 
63.7 	of the exempt items and the taxes paid on the items unless otherwise specifically provided 
63.8 	by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to refunds under 
63.9 	this section.
63.10 	(b) An applicant may not file more than two applications per calendar year for refunds 
63.11 	for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.

63.12 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
63.13 	30, 2024.

63.14 	Sec. 12. SALES AND USE TAX EXEMPTION; CERTAIN NATURAL GAS FEES.
 63.15 		Subdivision 1.Exemption. Notwithstanding Minnesota Statutes, section 297A.67, 
63.16 	subdivision 15, clause (2), fees related to natural gas sold for residential use to customers 
63.17 	who were metered and billed as residential users and who used natural gas for their primary 
63.18 	source of residential heat are exempt for purposes of the billing periods May to October, 
63.19 	provided that:
63.20 	(1) the fee for the natural gas is subject to a cost recovery plan for the price increase in 
63.21 	natural gas during the period February 13, 2021, to February 17, 2021, identified in docket 
63.22 	G-999/CI-21-135 before the Minnesota Public Utilities Commission; and
63.23 	(2) the fee is separately stated and labeled as a fee pursuant to a cost recovery plan under 
63.24 	clause (1).
63.25 		Subd. 2.Application; refund. (a) By October 1, 2022, each utility must apply to the 
63.26 	commissioner of revenue for a refund of sales taxes collected and remitted pursuant to 
63.27 	Minnesota Statutes, section 297A.77, on fees for sales and purchases of natural gas subject 
63.28 	to a cost recovery plan under subdivision 1, clause (1), that were added to residential 
63.29 	customers' bills for the period beginning September 1, 2021, and ending June 30, 2022.
63.30 	(b) The provisions of Minnesota Statutes, section 289A.50, subdivision 2, except for 
63.31 	paragraph (c), apply to refunds issued under this subdivision. For purposes of this subdivision, 
63.32 	"utility" means a utility subject to the cost recovery plan under subdivision 1, clause (1). 
64.1 	Within 90 days after the date the commissioner issues the refund under Minnesota Statutes, 
64.2 	section 289A.50, subdivision 2, paragraph (a), to the utility:
64.3 	(1) the utility must provide a plan to the Minnesota Public Utilities Commission for 
64.4 	crediting taxes exempt under subdivision 1 to residential customers; and
64.5 	(2) any amount not refunded or credited to a residential customer by a utility must be 
64.6 	returned to the commissioner by the utility.

64.7 	EFFECTIVE DATE. This section is effective retroactively for fees applied to sales 
64.8 	and purchases of natural gas made after February 12, 2021, and before February 18, 2021, 
64.9 	that are billed from September 1, 2021, to December 31, 2026.

64.10 	ARTICLE 4
64.11 	PROPERTY TAXES

64.12 	Section 1. Minnesota Statutes 2020, section 272.01, subdivision 2, is amended to read:
64.13 		Subd. 2.Exempt property used by private entity for profit. (a) When any real or 
64.14 	personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is leased, 
64.15 	loaned, or otherwise made available and used by a private individual, association, or 
64.16 	corporation in connection with a business conducted for profit, there shall be imposed a 
64.17 	tax, for the privilege of so using or possessing such real or personal property, in the same 
64.18 	amount and to the same extent as though the lessee or user was the owner of such property.
64.19 	(b) The tax imposed by this subdivision shall not apply to:
64.20 	(1) property leased or used as a concession in or relative to the use in whole or part of 
64.21 	a public park, market, fairgrounds, port authority, economic development authority 
64.22 	established under chapter 469, municipal auditorium, municipal parking facility, municipal 
64.23 	museum, or municipal stadium;
64.24 	(2) except as provided in paragraph (c), property of an airport owned by a city, town, 
64.25 	county, or group thereof which is:
64.26 	(i) leased to or used by any person or entity including a fixed base operator; and
64.27 	(ii) used as a hangar for the storage or, repair, or manufacture of aircraft or to provide 
64.28 	aviation goods, services, or facilities to the airport or general public;
64.29 	the exception from taxation provided in this clause does not apply to:
65.1 	(i) property located at an airport owned or operated by the Metropolitan Airports 
65.2 	Commission or by a city of over 50,000 population according to the most recent federal 
65.3 	census or such a city's airport authority; or
65.4 	(ii) hangars leased by a private individual, association, or corporation in connection with 
65.5 	a business conducted for profit other than an aviation-related business;
65.6 	(3) property constituting or used as a public pedestrian ramp or concourse in connection 
65.7 	with a public airport;
65.8 	(4) except as provided in paragraph (d), property constituting or used as a passenger 
65.9 	check-in area or ticket sale counter, boarding area, or luggage claim area in connection with 
65.10 	a public airport but not the airports owned or operated by the Metropolitan Airports 
65.11 	Commission or cities of over 50,000 population or an airport authority therein. Real estate 
65.12 	owned by a municipality in connection with the operation of a public airport and leased or 
65.13 	used for agricultural purposes is not exempt;
65.14 	(5) property leased, loaned, or otherwise made available to a private individual, 
65.15 	corporation, or association under a cooperative farming agreement made pursuant to section 
65.16 	97A.135; or
65.17 	(6) property leased, loaned, or otherwise made available to a private individual, 
65.18 	corporation, or association under section 272.68, subdivision 4.
65.19 	(c) The exception from taxation provided in paragraph (b), clause (2), does not apply 
65.20 	to:
65.21 	(1) property located at an airport owned or operated by:
65.22 	(i) the Metropolitan Airports Commission; or
65.23 	(ii) a city of over 50,000 population according to the most recent federal census or such 
65.24 	a city's airport authority, except that, when calculating the tax imposed by this subdivision 
65.25 	for property taxes payable in 2023 through 2034, the net tax capacity of such property is 
65.26 	reduced by 50 percent if it is owned or operated by a city over 50,000 but under 150,000 
65.27 	in population according to the most recent federal census or such a city's airport authority; 
65.28 	or
65.29 	(2) hangars leased by a private individual, association, or corporation in connection with 
65.30 	a business conducted for profit other than an aviation-related business.
65.31 	(d) The exception from taxation provided in paragraph (b), clause (4), does not apply 
65.32 	to:
66.1 	(1) the property described in paragraph (b), clause (4), at airports that are owned or 
66.2 	operated by:
66.3 	(i) the Metropolitan Airports Commission; or
66.4 	(ii) a city of over 50,000 population or an airport authority therein, except that, when 
66.5 	calculating the tax imposed by this subdivision for property taxes payable in 2023 through 
66.6 	2034, the net tax capacity of such property is reduced by 50 percent if it is owned or operated 
66.7 	by a city over 50,000 but under 150,000 in population according to the most recent federal 
66.8 	census or such a city's airport authority; or
66.9 	(2) real estate owned by a municipality in connection with the operation of a public 
66.10 	airport and leased or used for agricultural purposes.
66.11 	(c) (e) Taxes imposed by this subdivision are payable as in the case of personal property 
66.12 	taxes and shall be assessed to the lessees or users of real or personal property in the same 
66.13 	manner as taxes assessed to owners of real or personal property, except that such taxes shall 
66.14 	not become a lien against the property. When due, the taxes shall constitute a debt due from 
66.15 	the lessee or user to the state, township, city, county, and school district for which the taxes 
66.16 	were assessed and shall be collected in the same manner as personal property taxes. If 
66.17 	property subject to the tax imposed by this subdivision is leased or used jointly by two or 
66.18 	more persons, each lessee or user shall be jointly and severally liable for payment of the 
66.19 	tax.
66.20 	(d) (f) The tax on real property of the federal government, the state or any of its political 
66.21 	subdivisions that is leased, loaned, or otherwise made available to a private individual, 
66.22 	association, or corporation and becomes taxable under this subdivision or other provision 
66.23 	of law must be assessed and collected as a personal property assessment. The taxes do not 
66.24 	become a lien against the real property.

66.25 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2023.

66.26 	Sec. 2. Minnesota Statutes 2020, section 272.02, subdivision 98, is amended to read:
66.27 		Subd. 98.Certain property owned by an Indian tribe. (a) Property is exempt that:
66.28 	(1) was classified as 3a under section 273.13, subdivision 24, for taxes payable in 2013;
66.29 	(2) is located in a city of the first class with a population greater than 300,000 as of the 
66.30 	2010 federal census;
67.1 	(3) was on January 2, 2012, and is for the current assessment owned by a federally 
67.2 	recognized Indian tribe, or its instrumentality, that is located within the state of Minnesota; 
67.3 	and
67.4 	(4) is used exclusively for tribal purposes or institutions of purely public charity as 
67.5 	defined in subdivision 7.
67.6 	(b) For purposes of this subdivision, a "tribal purpose" means a public purpose as defined 
67.7 	in subdivision 8 and includes noncommercial tribal government activities. Property that 
67.8 	qualifies for the exemption under this subdivision is limited to no more than two contiguous 
67.9 	parcels and structures that do not exceed in the aggregate 20,000 square feet. Property 
67.10 	acquired for single-family housing, market-rate apartments, agriculture, or forestry does 
67.11 	not qualify for this exemption. The exemption created by this subdivision expires with taxes 
67.12 	payable in 2024 2034.
67.13 	(c) Property exempt under this section is exempt from the requirements of section 
67.14 	272.025.

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

67.16 	Sec. 3. Minnesota Statutes 2020, section 272.02, is amended by adding a subdivision to 
67.17 	read:
67.18 		Subd. 105.Energy storage systems. (a) Personal property consisting of an energy 
67.19 	storage system is exempt. For the purposes of this subdivision, "energy storage system" has 
67.20 	the meaning given in section 216B.2422, subdivision 1, paragraph (f).
67.21 	(b) A taxpayer requesting an exemption under this subdivision must file an application 
67.22 	with the commissioner of revenue. The commissioner shall prescribe the content, format, 
67.23 	and manner of the application pursuant to section 270C.30, except that a "law administered 
67.24 	by the commissioner" includes the property tax laws. In determining eligibility for the 
67.25 	exemption under this section, the commissioner of revenue may request information and 
67.26 	advice from the commissioner of commerce. On determining that property qualifies for 
67.27 	exemption, the commissioner of revenue shall issue an order exempting the property from 
67.28 	taxation. The commissioner of revenue shall develop an electronic means to notify interested 
67.29 	parties when the commissioner has issued an order exempting property from taxation under 
67.30 	this section. The energy storage system shall continue to be exempt from taxation as long 
67.31 	as the order issued by the commissioner of revenue remains in effect.
67.32 	(c) The exemption under this section expires with taxes payable in 2033.

67.33 	EFFECTIVE DATE. This section is effective beginning with assessment year 2023.

68.1 	Sec. 4. Minnesota Statutes 2020, section 272.025, subdivision 1, is amended to read:
68.2 		Subdivision 1.Statement of exemption. (a) Except in the case of property owned by 
68.3 	the state of Minnesota or any political subdivision thereof, a taxpayer claiming an exemption 
68.4 	from taxation on property described in section 272.02 must file a statement of exemption 
68.5 	with the assessor of the assessment district in which the property is located. By January 2, 
68.6 	2018, and each third year thereafter, the commissioner of revenue shall publish on its website 
68.7 	a list of the exemptions for which a taxpayer claiming an exemption must file a statement 
68.8 	of exemption. The commissioner's requirement that a taxpayer file a statement of exemption 
68.9 	pursuant to this subdivision shall not be considered a rule and is not subject to the 
68.10 	Administrative Procedure Act, chapter 14.
68.11 	(b) A taxpayer claiming an exemption from taxation on property described in section 
68.12 	272.02, subdivisionsubdivisions 10 and 105, must file a statement of exemption with the 
68.13 	commissioner of revenue, on or before February 15 of each year for which the taxpayer 
68.14 	claims an exemption.
68.15 	(c) In case of sickness, absence or other disability or for good cause, the assessor or the 
68.16 	commissioner may extend the time for filing the statement of exemption for a period not to 
68.17 	exceed 60 days.
68.18 	(d) The commissioner of revenue shall prescribe the content, format, and manner of the 
68.19 	statement of exemption pursuant to section 270C.30, except that a "law administered by 
68.20 	the commissioner" includes the property tax laws.
68.21 	(e) If a statement is made by electronic means, the taxpayer's signature is defined pursuant 
68.22 	to section 270C.304, except that a "law administered by the commissioner" includes the 
68.23 	property tax laws.

68.24 	EFFECTIVE DATE. This section is effective beginning with assessment year 2023 
68.25 	and thereafter.

68.26 	Sec. 5. Minnesota Statutes 2020, section 273.032, is amended to read:
68.27 	273.032 MARKET VALUE DEFINITION.
68.28 	(a) Unless otherwise provided, for the purpose of determining any property tax levy 
68.29 	limitation based on market value or any limit on net debt, the issuance of bonds, certificates 
68.30 	of indebtedness, or capital notes based on market value, any qualification to receive state 
68.31 	aid based on market value, or any state aid amount based on market value, the terms "market 
68.32 	value," "estimated market value," and "market valuation," whether equalized or unequalized, 
69.1 	mean the estimated market value of taxable property within the local unit of government 
69.2 	before any of the following or similar adjustments for:
69.3 	(1) the market value exclusions under:
69.4 	(i) section 273.11, subdivisions 14a and 14c (vacant platted land);
69.5 	(ii) section 273.11, subdivision 16 (certain improvements to homestead property);
69.6 	(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business properties);
69.7 	(iv) section 273.11, subdivision 21 (homestead property damaged by mold);
69.8 	(v) section 273.13, subdivision 34 (homestead of a veteran with a disability or family 
69.9 	caregiver); or
69.10 	(vi) section 273.13, subdivision 35 (homestead market value exclusion); or
69.11 	(vii) section 273.13, subdivision 36 (affordable housing market value exclusion); or
69.12 	(2) the deferment of value under:
69.13 	(i) the Minnesota Agricultural Property Tax Law, section 273.111;
69.14 	(ii) the Aggregate Resource Preservation Law, section 273.1115;
69.15 	(iii) the Minnesota Open Space Property Tax Law, section 273.112;
69.16 	(iv) the rural preserves property tax program, section 273.114; or
69.17 	(v) the Metropolitan Agricultural Preserves Act, section 473H.10; or
69.18 	(3) the adjustments to tax capacity for:
69.19 	(i) tax increment financing under sections 469.174 to 469.1794;
69.20 	(ii) fiscal disparities under chapter 276A or 473F; or
69.21 	(iii) powerline credit under section 273.425.
69.22 	(b) Estimated market value under paragraph (a) also includes the market value of 
69.23 	tax-exempt property if the applicable law specifically provides that the limitation, 
69.24 	qualification, or aid calculation includes tax-exempt property.
69.25 	(c) Unless otherwise provided, "market value," "estimated market value," and "market 
69.26 	valuation" for purposes of property tax levy limitations and calculation of state aid, refer 
69.27 	to the estimated market value for the previous assessment year and for purposes of limits 
69.28 	on net debt, the issuance of bonds, certificates of indebtedness, or capital notes refer to the 
69.29 	estimated market value as last finally equalized.
70.1 	(d) For purposes of a provision of a home rule charter or of any special law that is not 
70.2 	codified in the statutes and that imposes a levy limitation based on market value or any limit 
70.3 	on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market 
70.4 	value, the terms "market value," "taxable market value," and "market valuation," whether 
70.5 	equalized or unequalized, mean "estimated market value" as defined in paragraph (a).

70.6 	EFFECTIVE DATE. This section is effective beginning with assessment year 2023.

70.7 	Sec. 6. Minnesota Statutes 2020, section 273.11, subdivision 23, is amended to read:
70.8 		Subd. 23.First tier valuation limit; agricultural homestead property. (a) The 
70.9 	commissioner of revenue shall annually certify the first tier limit for agricultural homestead 
70.10 	property. For assessment year 2010 2023, the limit is $1,140,000 $2,500,000. Beginning 
70.11 	with assessment year 2011 2024, the limit is the product of (i) the first tier limit for the 
70.12 	preceding assessment year, and (ii) the ratio of the statewide average taxable market value 
70.13 	of agricultural property per acre of deeded farm land in the preceding assessment year to 
70.14 	the statewide average taxable market value of agricultural property per acre of deeded farm 
70.15 	land for the second preceding assessment year. The limit shall be rounded to the nearest 
70.16 	$10,000.
70.17 	(b) For the purposes of this subdivision, "agricultural property" means all class 2a 
70.18 	property under section 273.13, subdivision 23, except for property consisting of the house, 
70.19 	garage, and immediately surrounding one acre of land of an agricultural homestead.
70.20 	(c) The commissioner shall certify the limit by January 2 of each assessment year.

70.21 	EFFECTIVE DATE. This section is effective beginning with assessment year 2023.

70.22 	Sec. 7. Minnesota Statutes 2020, section 273.128, is amended by adding a subdivision to 
70.23 	read:
70.24 		Subd. 1a.Approval. A property owner must receive approval by resolution of the 
70.25 	governing body of the city or town where the property is located before submitting an initial 
70.26 	application to the Housing Finance Agency, as required under subdivision 2, for property 
70.27 	that has not, in whole or in part, been classified as class 4d under section 273.13, subdivision 
70.28 	25, prior to assessment year 2023. A property owner that receives approval as required 
70.29 	under this subdivision, and the certification made under subdivision 3, shall not be required 
70.30 	to seek approval under this subdivision prior to submitting an application under subdivision 
70.31 	2 in each subsequent year.

70.32 	EFFECTIVE DATE. This section is effective beginning with assessment year 2023.

71.1 	Sec. 8. Minnesota Statutes 2020, section 273.128, subdivision 2, is amended to read:
71.2 		Subd. 2.Application. (a) Application for certification under this section must be filed 
71.3 	by March 31 of the levy year, or at a later date if the Housing Finance Agency deems 
71.4 	practicable. The application must be filed with the Housing Finance Agency, on a form 
71.5 	prescribed by the agency, and must contain the information required by the Housing Finance 
71.6 	Agency.
71.7 	(b) Each application must include:
71.8 	(1) the property tax identification number; and
71.9 	(2) evidence that the property meets the requirements of subdivisionsubdivisions 1 and 
71.10 	1a.
71.11 	(c) The Housing Finance Agency may charge an application fee approximately equal 
71.12 	to the costs of processing and reviewing the applications but not to exceed $10 per unit. If 
71.13 	imposed, the applicant must pay the application fee to the Housing Finance Agency. The 
71.14 	fee must be deposited in the housing development fund.

71.15 	EFFECTIVE DATE. This section is effective beginning with assessment year 2023.

71.16 	Sec. 9. [273.129] AFFORDABLE HOUSING MARKET VALUE EXCLUSION 
71.17 	PROGRAM; ESTABLISHMENT.
71.18 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
71.19 	the meanings given, unless otherwise indicated.
71.20 	(b) "Governing body" means, with respect to a city, a city council, with respect to a 
71.21 	town, a town board, and with respect to an unorganized territory, the county board acting 
71.22 	on behalf of the unorganized territory.
71.23 	(c) "Market value" has the meaning given in section 272.03, subdivision 8.
71.24 	(d) "Municipality" means a statutory or home rule charter city, a township, or unorganized 
71.25 	territory.
71.26 	(e) "Property" means a residential rental housing property classified as class 4a under 
71.27 	section 273.13, subdivision 25, a portion of which is occupied by residents meeting the 
71.28 	income requirement under subdivision 4.
71.29 		Subd. 2.Establishment. An affordable housing market value exclusion program is 
71.30 	established to promote the development of affordable rental properties in the state. Eligible 
72.1 	properties located in participating municipalities are eligible to receive a market value 
72.2 	exclusion of 50 percent.
72.3 		Subd. 3.Approval. (a) A governing body may, upon approval by a majority vote of its 
72.4 	members, adopt a resolution agreeing to participate in the affordable housing market value 
72.5 	exclusion program. Prior to approval, the governing body must publish notice of its intent 
72.6 	to discuss the resolution at a regularly scheduled meeting, in a newspaper with general 
72.7 	circulation in the city or on the municipality's website, not less than 30 days prior to the 
72.8 	meeting. The notice must include the date, time, and location of the meeting at which the 
72.9 	program will be discussed and public input allowed.
72.10 	(b) After a governing body has adopted a resolution agreeing to participate in the program, 
72.11 	the governing body must adopt a separate resolution, subject to the same voting, notice, and 
72.12 	public hearing requirements under paragraph (a), for each property the governing body 
72.13 	approves to receive the affordable housing market value exclusion. The resolution must 
72.14 	state the property qualifies for a valuation exclusion of 50 percent, and that shall remain 
72.15 	the same each year, subject to the duration limit under subdivision 5.
72.16 	(c) After a governing body has adopted the property-specific resolution as required under 
72.17 	paragraph (b), the governing body, other than the county board acting on behalf of an 
72.18 	unorganized territory, must provide the county board with a copy of the resolution for each 
72.19 	property the local government approved to receive the affordable housing market value 
72.20 	exclusion, along with information relating to the fiscal implications resulting from the 
72.21 	approved exclusion. The county board may request additional information from the local 
72.22 	government that the board deems necessary. The county board must approve, by a majority 
72.23 	vote of its members, the affordable housing market value exclusion for each property within 
72.24 	60 days of receipt. If a county board fails to approve the exclusion within 60 days of receipt, 
72.25 	or if the county board affirmatively denies approval of the exclusion, the property shall not 
72.26 	receive the affordable housing market value exclusion.
72.27 		Subd. 4.Eligibility. (a) A property located in a participating municipality is eligible for 
72.28 	the affordable housing market value exclusion applied under section 273.13, subdivision 
72.29 	36, if:
72.30 	(1) the property is not classified in whole or in part as class 4d under section 273.13, 
72.31 	subdivision 25;
72.32 	(2) construction of the property began on or after January 1, 2023; and
72.33 	(3) the Minnesota Housing Finance Agency certifies to the county or local assessor that:
73.1 	(i) at least 20 percent of the units in the property are available for residents whose 
73.2 	household income at the time of initial occupancy does not exceed 60 percent of area median 
73.3 	income, adjusted for family size, as determined by the United States Department of Housing 
73.4 	and Urban Development;
73.5 	(ii) at least 80 percent of the available units in the property are occupied by residents 
73.6 	meeting the income requirement; and
73.7 	(iii) any unoccupied available units are being actively marketed toward persons meeting 
73.8 	the income requirements, as attested by the property owner.
73.9 	(b) By February 1 each assessment year, an application for certification under this 
73.10 	subdivision must be filed by the property owner to the Minnesota Housing Finance Agency. 
73.11 	The property owner must provide a copy of the application to the county or city assessor. 
73.12 	The application must be filed on a form prescribed by the agency and must contain the 
73.13 	property tax identification number, evidence that the property meets the requirements of 
73.14 	paragraph (a), a copy of the property-specific approval by the county board if required, and 
73.15 	any other information necessary for the Minnesota Housing Finance Agency to determine 
73.16 	eligibility. The Minnesota Housing Finance Agency may charge an application fee 
73.17 	approximately equal to the costs of processing and reviewing the applications. If imposed, 
73.18 	the applicant must pay the application fee to the Minnesota Housing Finance Agency and 
73.19 	the fee must be deposited in the housing development fund.
73.20 	(c) By April 1 each assessment year, the Minnesota Housing Finance Agency must 
73.21 	certify to the appropriate county or city assessor:
73.22 	(1) the specific properties, identified by parcel identification numbers, that are eligible 
73.23 	under this section to receive the exclusion for the current assessment year; and
73.24 	(2) the specific properties, identified by parcel identification numbers, that received the 
73.25 	exclusion in the previous assessment year but no longer meet the requirements under this 
73.26 	section.
73.27 	In making the certification, the Minnesota Housing Finance Agency must rely on the property 
73.28 	owner's application and any other supporting information that the agency deems necessary.
73.29 		Subd. 5.Duration. The governing body of a participating municipality shall determine 
73.30 	the duration of the affordable housing market value exclusion for each eligible property, 
73.31 	provided that the exclusion applies for at least ten but not more than 20 assessment years, 
73.32 	except that when a property no longer meets the requirements of subdivision 4, the exclusion 
73.33 	shall be removed for the current assessment year.
74.1 		Subd. 6.Expiration. The affordable housing market value exclusion program expires 
74.2 	on December 31, 2030. A property that has not received the required approval under 
74.3 	subdivision 3 by December 31, 2030, shall not receive the exclusion.

74.4 	EFFECTIVE DATE. This section is effective beginning with assessment year 2023.

74.5 	Sec. 10. Minnesota Statutes 2020, section 273.13, subdivision 22, is amended to read:
74.6 		Subd. 22.Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and 
74.7 	(c), real estate which is residential and used for homestead purposes is class 1a. In the case 
74.8 	of a duplex or triplex in which one of the units is used for homestead purposes, the entire 
74.9 	property is deemed to be used for homestead purposes. The market value of class 1a property 
74.10 	must be determined based upon the value of the house, garage, and land.
74.11 	The first $500,000 of market value of class 1a property has a net classification rate of 
74.12 	one percent of its market value; and the market value of class 1a property that exceeds 
74.13 	$500,000 has a classification rate of 1.25 percent of its market value.
74.14 	(b) Class 1b property includes homestead real estate or homestead manufactured homes 
74.15 	used for the purposes of a homestead by:
74.16 	(1) any person who is blind as defined in section 256D.35, or the person who is blind 
74.17 	and the spouse of the person who is blind;
74.18 	(2) any person who is permanently and totally disabled or by the person with a disability 
74.19 	and the spouse of the person with a disability; or
74.20 	(3) the surviving spouse of a veteran who was permanently and totally disabled 
74.21 	homesteading a property classified under this paragraph for taxes payable in 2008.
74.22 	Property is classified and assessed under clause (2) only if the government agency or 
74.23 	income-providing source certifies, upon the request of the homestead occupant, that the 
74.24 	homestead occupant satisfies the disability requirements of this paragraph, and that the 
74.25 	property is not eligible for the valuation exclusion under subdivision 34.
74.26 	Property is classified and assessed under paragraph (b) only if the commissioner of 
74.27 	revenue or the county assessor certifies that the homestead occupant satisfies the requirements 
74.28 	of this paragraph.
74.29 	Permanently and totally disabled for the purpose of this subdivision means a condition 
74.30 	which is permanent in nature and totally incapacitates the person from working at an 
74.31 	occupation which brings the person an income. The first $50,000 market value of class 1b 
74.32 	property has a net classification rate of .45 percent of its market value. The remaining market 
75.1 	value of class 1b property is classified as class 1a or class 2a property, whichever is 
75.2 	appropriate.
75.3 	(c) Class 1c property is commercial use real and personal property that abuts public 
75.4 	water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by 
75.5 	the Department of Natural Resources, and is devoted to temporary and seasonal residential 
75.6 	occupancy for recreational purposes but not devoted to commercial purposes for more than 
75.7 	250 days in the year preceding the year of assessment, and that includes a portion used as 
75.8 	a homestead by the owner, which includes a dwelling occupied as a homestead by a 
75.9 	shareholder of a corporation that owns the resort, a partner in a partnership that owns the 
75.10 	resort, or a member of a limited liability company that owns the resort even if the title to 
75.11 	the homestead is held by the corporation, partnership, or limited liability company. For 
75.12 	purposes of this paragraph, property is devoted to a commercial purpose on a specific day 
75.13 	if any portion of the property, excluding the portion used exclusively as a homestead, is 
75.14 	used for residential occupancy and a fee is charged for residential occupancy. Class 1c 
75.15 	property must contain three or more rental units. A "rental unit" is defined as a cabin, 
75.16 	condominium, townhouse, sleeping room, or individual camping site equipped with water 
75.17 	and electrical hookups for recreational vehicles. Class 1c property must provide recreational 
75.18 	activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill 
75.19 	or cross-country ski equipment; provide marina services, launch services, or guide services; 
75.20 	or sell bait and fishing tackle. Any unit in which the right to use the property is transferred 
75.21 	to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies 
75.22 	for class 1c even though it may remain available for rent. A camping pad offered for rent 
75.23 	by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of 
75.24 	the rental agreement, as long as the use of the camping pad does not exceed 250 days. If 
75.25 	the same owner owns two separate parcels that are located in the same township, and one 
75.26 	of those properties is classified as a class 1c property and the other would be eligible to be 
75.27 	classified as a class 1c property if it was used as the homestead of the owner, both properties 
75.28 	will be assessed as a single class 1c property; for purposes of this sentence, properties are 
75.29 	deemed to be owned by the same owner if each of them is owned by a limited liability 
75.30 	company, and both limited liability companies have the same membership. The portion of 
75.31 	the property used as a homestead is class 1a property under paragraph (a). The remainder 
75.32 	of the property is classified as follows: the first $600,000 $850,000 of market value is tier 
75.33 	I, the next $1,700,000 $2,250,000 of market value is tier II, and any remaining market value 
75.34 	is tier III. The classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; 
75.35 	and tier III, 1.25 percent. Owners of real and personal property devoted to temporary and 
75.36 	seasonal residential occupancy for recreation purposes in which all or a portion of the 
76.1 	property was devoted to commercial purposes for not more than 250 days in the year 
76.2 	preceding the year of assessment desiring classification as class 1c, must submit a declaration 
76.3 	to the assessor designating the cabins or units occupied for 250 days or less in the year 
76.4 	preceding the year of assessment by January 15 of the assessment year. Those cabins or 
76.5 	units and a proportionate share of the land on which they are located must be designated as 
76.6 	class 1c as otherwise provided. The remainder of the cabins or units and a proportionate 
76.7 	share of the land on which they are located must be designated as class 3a commercial. The 
76.8 	owner of property desiring designation as class 1c property must provide guest registers or 
76.9 	other records demonstrating that the units for which class 1c designation is sought were not 
76.10 	occupied for more than 250 days in the year preceding the assessment if so requested. The 
76.11 	portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center 
76.12 	or meeting room, and (5) other nonresidential facility operated on a commercial basis not 
76.13 	directly related to temporary and seasonal residential occupancy for recreation purposes 
76.14 	does not qualify for class 1c.
76.15 	(d) Class 1d property includes structures that meet all of the following criteria:
76.16 	(1) the structure is located on property that is classified as agricultural property under 
76.17 	section 273.13, subdivision 23;
76.18 	(2) the structure is occupied exclusively by seasonal farm workers during the time when 
76.19 	they work on that farm, and the occupants are not charged rent for the privilege of occupying 
76.20 	the property, provided that use of the structure for storage of farm equipment and produce 
76.21 	does not disqualify the property from classification under this paragraph;
76.22 	(3) the structure meets all applicable health and safety requirements for the appropriate 
76.23 	season; and
76.24 	(4) the structure is not salable as residential property because it does not comply with 
76.25 	local ordinances relating to location in relation to streets or roads.
76.26 	The market value of class 1d property has the same classification rates as class 1a property 
76.27 	under paragraph (a).

76.28 	EFFECTIVE DATE. This section is effective for taxes payable in 2023 and thereafter.

76.29 	Sec. 11. Minnesota Statutes 2021 Supplement, section 273.13, subdivision 25, is amended 
76.30 	to read:
76.31 		Subd. 25.Class 4. (a) Class 4a is residential real estate containing four or more units 
76.32 	and used or held for use by the owner or by the tenants or lessees of the owner as a residence 
76.33 	for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a 
77.1 	also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt 
77.2 	under section 272.02, and contiguous property used for hospital purposes, without regard 
77.3 	to whether the property has been platted or subdivided. The market value of class 4a property 
77.4 	has a classification rate of 1.25 percent.
77.5 	(b) Class 4b includes:
77.6 	(1) residential real estate containing less than four units, including property rented as a 
77.7 	short-term rental property for more than 14 days in the preceding year, that does not qualify 
77.8 	as class 4bb, other than seasonal residential recreational property;
77.9 	(2) manufactured homes not classified under any other provision;
77.10 	(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm 
77.11 	classified under subdivision 23, paragraph (b) containing two or three units; and
77.12 	(4) unimproved property that is classified residential as determined under subdivision 
77.13 	33.
77.14 	For the purposes of this paragraph, "short-term rental property" means nonhomestead 
77.15 	residential real estate rented for periods of less than 30 consecutive days.
77.16 	The market value of class 4b property has a classification rate of 1.25 percent.
77.17 	(c) Class 4bb includes:
77.18 	(1) nonhomestead residential real estate containing one unit, other than seasonal 
77.19 	residential recreational property;
77.20 	(2) a single family dwelling, garage, and surrounding one acre of property on a 
77.21 	nonhomestead farm classified under subdivision 23, paragraph (b); and
77.22 	(3) a condominium-type storage unit having an individual property identification number 
77.23 	that is not used for a commercial purpose.
77.24 	Class 4bb property has the same classification rates as class 1a property under subdivision 
77.25 	22.
77.26 	Property that has been classified as seasonal residential recreational property at any time 
77.27 	during which it has been owned by the current owner or spouse of the current owner does 
77.28 	not qualify for class 4bb.
77.29 	(d) Class 4c property includes:
77.30 	(1) except as provided in subdivision 22, paragraph (c), real and personal property 
77.31 	devoted to commercial temporary and seasonal residential occupancy for recreation purposes, 
78.1 	for not more than 250 days in the year preceding the year of assessment. For purposes of 
78.2 	this clause, property is devoted to a commercial purpose on a specific day if any portion of 
78.3 	the property is used for residential occupancy, and a fee is charged for residential occupancy. 
78.4 	Class 4c property under this clause must contain three or more rental units. A "rental unit" 
78.5 	is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site 
78.6 	equipped with water and electrical hookups for recreational vehicles. A camping pad offered 
78.7 	for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c 
78.8 	under this clause regardless of the term of the rental agreement, as long as the use of the 
78.9 	camping pad does not exceed 250 days. In order for a property to be classified under this 
78.10 	clause, either (i) the business located on the property must provide recreational activities, 
78.11 	at least 40 percent of the annual gross lodging receipts related to the property must be from 
78.12 	business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid 
78.13 	bookings by lodging guests during the year must be for periods of at least two consecutive 
78.14 	nights; or (B) at least 20 percent of the annual gross receipts must be from charges for 
78.15 	providing recreational activities, or (ii) the business must contain 20 or fewer rental units, 
78.16 	and must be located in a township or a city with a population of 2,500 or less located outside 
78.17 	the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion 
78.18 	of a state trail administered by the Department of Natural Resources. For purposes of item 
78.19 	(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c 
78.20 	property also includes commercial use real property used exclusively for recreational 
78.21 	purposes in conjunction with other class 4c property classified under this clause and devoted 
78.22 	to temporary and seasonal residential occupancy for recreational purposes, up to a total of 
78.23 	two acres, provided the property is not devoted to commercial recreational use for more 
78.24 	than 250 days in the year preceding the year of assessment and is located within two miles 
78.25 	of the class 4c property with which it is used. In order for a property to qualify for 
78.26 	classification under this clause, the owner must submit a declaration to the assessor 
78.27 	designating the cabins or units occupied for 250 days or less in the year preceding the year 
78.28 	of assessment by January 15 of the assessment year. Those cabins or units and a proportionate 
78.29 	share of the land on which they are located must be designated class 4c under this clause 
78.30 	as otherwise provided. The remainder of the cabins or units and a proportionate share of 
78.31 	the land on which they are located will be designated as class 3a. The owner of property 
78.32 	desiring designation as class 4c property under this clause must provide guest registers or 
78.33 	other records demonstrating that the units for which class 4c designation is sought were not 
78.34 	occupied for more than 250 days in the year preceding the assessment if so requested. The 
78.35 	portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center 
78.36 	or meeting room, and (5) other nonresidential facility operated on a commercial basis not 
79.1 	directly related to temporary and seasonal residential occupancy for recreation purposes 
79.2 	does not qualify for class 4c. For the purposes of this paragraph, "recreational activities" 
79.3 	means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country 
79.4 	ski equipment; providing marina services, launch services, or guide services; or selling bait 
79.5 	and fishing tackle;
79.6 	(2) qualified property used as a golf course if:
79.7 	(i) it is open to the public on a daily fee basis. It may charge membership fees or dues, 
79.8 	but a membership fee may not be required in order to use the property for golfing, and its 
79.9 	green fees for golfing must be comparable to green fees typically charged by municipal 
79.10 	courses; and
79.11 	(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
79.12 	A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with 
79.13 	the golf course is classified as class 3a property;
79.14 	(3) real property up to a maximum of three acres of land owned and used by a nonprofit 
79.15 	community service oriented organization and not used for residential purposes on either a 
79.16 	temporary or permanent basis, provided that:
79.17 	(i) the property is not used for a revenue-producing activity for more than six days in 
79.18 	the calendar year preceding the year of assessment; or
79.19 	(ii) the organization makes annual charitable contributions and donations at least equal 
79.20 	to the property's previous year's property taxes and the property is allowed to be used for 
79.21 	public and community meetings or events for no charge, as appropriate to the size of the 
79.22 	facility.
79.23 	For purposes of this clause:
79.24 	(A) "charitable contributions and donations" has the same meaning as lawful gambling 
79.25 	purposes under section 349.12, subdivision 25, excluding those purposes relating to the 
79.26 	payment of taxes, assessments, fees, auditing costs, and utility payments;
79.27 	(B) "property taxes" excludes the state general tax;
79.28 	(C) a "nonprofit community service oriented organization" means any corporation, 
79.29 	society, association, foundation, or institution organized and operated exclusively for 
79.30 	charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 
79.31 	federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal 
79.32 	Revenue Code; and
80.1 	(D) "revenue-producing activities" shall include but not be limited to property or that 
80.2 	portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 
80.3 	liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 
80.4 	alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 
80.5 	insurance business, or office or other space leased or rented to a lessee who conducts a 
80.6 	for-profit enterprise on the premises.
80.7 	Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The 
80.8 	use of the property for social events open exclusively to members and their guests for periods 
80.9 	of less than 24 hours, when an admission is not charged nor any revenues are received by 
80.10 	the organization shall not be considered a revenue-producing activity.
80.11 	The organization shall maintain records of its charitable contributions and donations 
80.12 	and of public meetings and events held on the property and make them available upon 
80.13 	request any time to the assessor to ensure eligibility. An organization meeting the requirement 
80.14 	under item (ii) must file an application by May 1 with the assessor for eligibility for the 
80.15 	current year's assessment. The commissioner shall prescribe a uniform application form 
80.16 	and instructions;
80.17 	(4) postsecondary student housing of not more than one acre of land that is owned by a 
80.18 	nonprofit corporation organized under chapter 317A and is used exclusively by a student 
80.19 	cooperative, sorority, or fraternity for on-campus housing or housing located within two 
80.20 	miles of the border of a college campus;
80.21 	(5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding 
80.22 	manufactured home parks described in items (ii) and (iii), (ii) manufactured home parks as 
80.23 	defined in section 327.14, subdivision 3, that are described in section 273.124, subdivision 
80.24 	3a, and (iii) class I manufactured home parks as defined in section 327C.01, subdivision 
80.25 	13;
80.26 	(6) real property that is actively and exclusively devoted to indoor fitness, health, social, 
80.27 	recreational, and related uses, is owned and operated by a not-for-profit corporation, and is 
80.28 	located within the metropolitan area as defined in section 473.121, subdivision 2;
80.29 	(7) a leased or privately owned noncommercial aircraft storage hangar not exempt under 
80.30 	section 272.01, subdivision 2, and the land on which it is located, provided that:
80.31 	(i) the land is on an airport owned or operated by a city, town, county, Metropolitan 
80.32 	Airports Commission, or group thereof; and
81.1 	(ii) the land lease, or any ordinance or signed agreement restricting the use of the leased 
81.2 	premise, prohibits commercial activity performed at the hangar.
81.3 	If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be 
81.4 	filed by the new owner with the assessor of the county where the property is located within 
81.5 	60 days of the sale;
81.6 	(8) a privately owned noncommercial aircraft storage hangar not exempt under section 
81.7 	272.01, subdivision 2, and the land on which it is located, provided that:
81.8 	(i) the land abuts a public airport; and
81.9 	(ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement 
81.10 	restricting the use of the premises, prohibiting commercial use or activity performed at the 
81.11 	hangar; and
81.12 	(9) residential real estate, a portion of which is used by the owner for homestead purposes, 
81.13 	and that is also a place of lodging, if all of the following criteria are met:
81.14 	(i) rooms are provided for rent to transient guests that generally stay for periods of 14 
81.15 	or fewer days;
81.16 	(ii) meals are provided to persons who rent rooms, the cost of which is incorporated in 
81.17 	the basic room rate;
81.18 	(iii) meals are not provided to the general public except for special events on fewer than 
81.19 	seven days in the calendar year preceding the year of the assessment; and
81.20 	(iv) the owner is the operator of the property.
81.21 	The market value subject to the 4c classification under this clause is limited to five rental 
81.22 	units. Any rental units on the property in excess of five, must be valued and assessed as 
81.23 	class 3a. The portion of the property used for purposes of a homestead by the owner must 
81.24 	be classified as class 1a property under subdivision 22;
81.25 	(10) real property up to a maximum of three acres and operated as a restaurant as defined 
81.26 	under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under 
81.27 	section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to 
81.28 	commercial purposes for not more than 250 consecutive days, or receives at least 60 percent 
81.29 	of its annual gross receipts from business conducted during four consecutive months. Gross 
81.30 	receipts from the sale of alcoholic beverages must be included in determining the property's 
81.31 	qualification under item (ii). The property's primary business must be as a restaurant and 
81.32 	not as a bar. Gross receipts from gift shop sales located on the premises must be excluded. 
82.1 	Owners of real property desiring 4c classification under this clause must submit an annual 
82.2 	declaration to the assessor by February 1 of the current assessment year, based on the 
82.3 	property's relevant information for the preceding assessment year;
82.4 	(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as 
82.5 	a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public 
82.6 	and devoted to recreational use for marina services. The marina owner must annually provide 
82.7 	evidence to the assessor that it provides services, including lake or river access to the public 
82.8 	by means of an access ramp or other facility that is either located on the property of the 
82.9 	marina or at a publicly owned site that abuts the property of the marina. No more than 800 
82.10 	feet of lakeshore may be included in this classification. Buildings used in conjunction with 
82.11 	a marina for marina services, including but not limited to buildings used to provide food 
82.12 	and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified 
82.13 	as class 3a property; and
82.14 	(12) real and personal property devoted to noncommercial temporary and seasonal 
82.15 	residential occupancy for recreation purposes.
82.16 	Class 4c property has a classification rate of 1.5 percent of market value, except that (i) 
82.17 	each parcel of noncommercial seasonal residential recreational property under clause (12) 
82.18 	has the same classification rates as class 4bb property, (ii) manufactured home parks assessed 
82.19 	under clause (5), item (i), have the same classification rate as class 4b property, the market 
82.20 	value of manufactured home parks assessed under clause (5), item (ii), have a classification 
82.21 	rate of 0.75 percent if more than 50 percent of the lots in the park are occupied by 
82.22 	shareholders in the cooperative corporation or association and a classification rate of one 
82.23 	percent if 50 percent or less of the lots are so occupied, and class I manufactured home 
82.24 	parks as defined in section 327C.01, subdivision 13, have a classification rate of 1.0 percent, 
82.25 	(iii) commercial-use seasonal residential recreational property and marina recreational land 
82.26 	as described in clause (11), has a classification rate of one percent for the first $500,000 of 
82.27 	market value, and 1.25 percent for the remaining market value, (iv) the market value of 
82.28 	property described in clause (4) has a classification rate of one percent, (v) the market value 
82.29 	of property described in clauses (2), (6), and (10) has a classification rate of 1.25 percent, 
82.30 	(vi) that portion of the market value of property in clause (9) qualifying for class 4c property 
82.31 	has a classification rate of 1.25 percent, and (vii) property qualifying for classification under 
82.32 	clause (3) that is owned or operated by a congressionally chartered veterans organization 
82.33 	has a classification rate of one percent. The commissioner of veterans affairs must provide 
82.34 	a list of congressionally chartered veterans organizations to the commissioner of revenue 
82.35 	by June 30, 2017, and by January 1, 2018, and each year thereafter.
83.1 	(e) Class 4d property is qualifying low-income rental housing certified to the assessor 
83.2 	by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion of 
83.3 	the units in the building qualify as low-income rental housing units as certified under section 
83.4 	273.128, subdivision 3, only the proportion of qualifying units to the total number of units 
83.5 	in the building qualify for class 4d. The remaining portion of the building shall be classified 
83.6 	by the assessor based upon its use. Class 4d also includes the same proportion of land as 
83.7 	the qualifying low-income rental housing units are to the total units in the building. For all 
83.8 	properties qualifying as class 4d, the market value determined by the assessor must be based 
83.9 	on the normal approach to value using normal unrestricted rents. Class 4d property has a 
83.10 	classification rate of 0.25 percent.
83.11 	(f) The first tier of market value of class 4d property has a classification rate of 0.75 
83.12 	percent. The remaining value of class 4d property has a classification rate of 0.25 percent. 
83.13 	For the purposes of this paragraph, the "first tier of market value of class 4d property" means 
83.14 	the market value of each housing unit up to the first tier limit. For the purposes of this 
83.15 	paragraph, all class 4d property value must be assigned to individual housing units. The 
83.16 	first tier limit is $100,000 for assessment years 2022 and 2023. For subsequent assessment 
83.17 	years, the limit is adjusted each year by the average statewide change in estimated market 
83.18 	value of property classified as class 4a and 4d under this section for the previous assessment 
83.19 	year, excluding valuation change due to new construction, rounded to the nearest $1,000, 
83.20 	provided, however, that the limit may never be less than $100,000. Beginning with 
83.21 	assessment year 2015, the commissioner of revenue must certify the limit for each assessment 
83.22 	year by November 1 of the previous year.

83.23 	EFFECTIVE DATE. This section is effective beginning with assessment year 2023.

83.24 	Sec. 12. Minnesota Statutes 2021 Supplement, section 273.13, subdivision 34, is amended 
83.25 	to read:
83.26 		Subd. 34.Homestead of veteran with a disability or family caregiver. (a) All or a 
83.27 	portion of the market value of property owned by a veteran and serving as the veteran's 
83.28 	homestead under this section is excluded in determining the property's taxable market value 
83.29 	if the veteran has a service-connected disability of 70 percent or more as certified by the 
83.30 	United States Department of Veterans Affairs. To qualify for exclusion under this subdivision, 
83.31 	the veteran must have been honorably discharged from the United States armed forces, as 
83.32 	indicated by United States Government Form DD214 or other official military discharge 
83.33 	papers.
84.1 	(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded, 
84.2 	except as provided in clause (2); and
84.3 	(2) for a total (100 percent) and permanent disability, $300,000 of market value is 
84.4 	excluded.
84.5 	(c) If a veteran with a disability qualifying for a valuation exclusion under paragraph 
84.6 	(b), clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the 
84.7 	spouse holds the legal or beneficial title to the homestead and permanently resides there, 
84.8 	the exclusion shall carry over to the benefit of the veteran's spouse until such time as the 
84.9 	spouse remarries, or sells, transfers, or otherwise disposes of the property, except as otherwise 
84.10 	provided in paragraph (n). Qualification under this paragraph requires an application under 
84.11 	paragraph (h), and a spouse must notify the assessor if there is a change in the spouse's 
84.12 	marital status, ownership of the property, or use of the property as a permanent residence.
84.13 	If a spouse previously received the exclusion under this paragraph, but the exclusion expired 
84.14 	prior to assessment year 2019 before the eligibility time period for surviving spouses was 
84.15 	changed to a lifetime benefit, the spouse may reapply under paragraph (h) for the exclusion 
84.16 	under this paragraph.
84.17 	(d) If the spouse of a member of any branch or unit of the United States armed forces 
84.18 	who dies due to a service-connected cause while serving honorably in active service, as 
84.19 	indicated on United States Government Form DD1300 or DD2064, holds the legal or 
84.20 	beneficial title to a homestead and permanently resides there, the spouse is entitled to the 
84.21 	benefit described in paragraph (b), clause (2), until such time as the spouse remarries or 
84.22 	sells, transfers, or otherwise disposes of the property, except as otherwise provided in 
84.23 	paragraph (n). If a spouse previously received the exclusion under this paragraph, but the 
84.24 	exclusion expired prior to assessment year 2019 before the eligibility time period for 
84.25 	surviving spouses was changed to a lifetime benefit, the spouse may reapply under paragraph 
84.26 	(h) for the exclusion under this paragraph.
84.27 	(e) If a veteran meets the disability criteria of paragraph (a) but does not own property 
84.28 	classified as homestead in the state of Minnesota, then the homestead of the veteran's primary 
84.29 	family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify 
84.30 	for under paragraph (b).
84.31 	(f) In the case of an agricultural homestead, only the portion of the property consisting 
84.32 	of the house and garage and immediately surrounding one acre of land qualifies for the 
84.33 	valuation exclusion under this subdivision.
85.1 	(g) A property qualifying for a valuation exclusion under this subdivision is not eligible 
85.2 	for the market value exclusion under subdivision 35, or classification under subdivision 22, 
85.3 	paragraph (b).
85.4 	(h) To qualify for a valuation exclusion under this subdivision a property owner must 
85.5 	apply to the assessor by December 31 of the first assessment year for which the exclusion 
85.6 	is sought. Except as provided in paragraph (c), the owner of a property that has been accepted 
85.7 	for a valuation exclusion must notify the assessor if there is a change in ownership of the 
85.8 	property or in the use of the property as a homestead.
85.9 	(i) A first-time application by a qualifying spouse for the market value exclusion under 
85.10 	paragraph (d) must be made any time within two years of the death of the service member, 
85.11 	within two years of the United States Department of Veterans Affairs Dependency and 
85.12 	Indemnity Compensation determination, or by December 31, 2023, whichever is later. A 
85.13 	qualifying spouse whose application was previously denied may reapply, pursuant to this 
85.14 	paragraph, by December 31, 2023.
85.15 	(j) For purposes of this subdivision:
85.16 	(1) "active service" has the meaning given in section 190.05;
85.17 	(2) "own" means that the person's name is present as an owner on the property deed;
85.18 	(3) "primary family caregiver" means a person who is approved by the secretary of the 
85.19 	United States Department of Veterans Affairs for assistance as the primary provider of 
85.20 	personal care services for an eligible veteran under the Program of Comprehensive Assistance 
85.21 	for Family Caregivers, codified as United States Code, title 38, section 1720G; and
85.22 	(4) "veteran" has the meaning given the term in section 197.447.
85.23 	(k) If a veteran dying after December 31, 2011, did not apply for or receive the exclusion 
85.24 	under paragraph (b), clause (2), before dying, the veteran's spouse is entitled to the benefit 
85.25 	under paragraph (b), clause (2), until the spouse remarries or sells, transfers, or otherwise 
85.26 	disposes of the property, except as otherwise provided in paragraph (n), if:
85.27 	(1) the spouse files a first-time application within two years of the death of the service 
85.28 	member, within two years of the United States Department of Veterans Affairs Dependency 
85.29 	and Indemnity Compensation determination, if applicable, or by June 1, 2019 December 
85.30 	31, 2023, whichever is later. A spouse whose application was previously denied may reapply, 
85.31 	pursuant to this paragraph, by December 31, 2023;
85.32 	(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the 
85.33 	homestead and permanently resides there;
86.1 	(3) the veteran met the honorable discharge requirements of paragraph (a); and
86.2 	(4) the United States Department of Veterans Affairs certifies that:
86.3 	(i) the veteran met the total (100 percent) and permanent disability requirement under 
86.4 	paragraph (b), clause (2); or
86.5 	(ii) the spouse has been awarded dependency and indemnity compensation.
86.6 	(l) The purpose of this provision of law providing a level of homestead property tax 
86.7 	relief for veterans with a disability, their primary family caregivers, and their surviving 
86.8 	spouses is to help ease the burdens of war for those among our state's citizens who bear 
86.9 	those burdens most heavily.
86.10 	(m) By July 1, the county veterans service officer must certify the disability rating and 
86.11 	permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.
86.12 	(n) A spouse who received the benefit in paragraph (c), (d), or (k) but no longer holds 
86.13 	the legal or beneficial title to the property may continue to receive the exclusion for a 
86.14 	property other than the property for which the exclusion was initially granted until the spouse 
86.15 	remarries or sells, transfers, or otherwise disposes of the property, provided that:
86.16 	(1) the spouse applies under paragraph (h) for the continuation of the exclusion allowed 
86.17 	under this paragraph;
86.18 	(2) the spouse holds the legal or beneficial title to the property for which the continuation 
86.19 	of the exclusion is sought under this paragraph, and permanently resides there;
86.20 	(3) the estimated market value of the property for which the exclusion is sought under 
86.21 	this paragraph is less than or equal to the estimated market value of the property that first 
86.22 	received the exclusion, based on the value of each property on the date of the sale of the 
86.23 	property that first received the exclusion; and
86.24 	(4) the spouse has not previously received the benefit under this paragraph for a property 
86.25 	other than the property for which the exclusion is sought.

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

86.27 	Sec. 13. Minnesota Statutes 2020, section 273.13, subdivision 35, is amended to read:
86.28 		Subd. 35.Homestead market value exclusion. (a) Prior to determining a property's 
86.29 	net tax capacity under this section, property classified as class 1a or 1b under subdivision 
86.30 	22, and the portion of property classified as class 2a under subdivision 23 consisting of the 
87.1 	house, garage, and surrounding one acre of land, shall be eligible for a market value exclusion 
87.2 	as determined under paragraph (b).
87.3 	(b) For a homestead valued at $76,000 $95,000 or less, the exclusion is 40 percent of 
87.4 	market value. For a homestead valued between $76,000 $95,000 and $413,800 $517,200, 
87.5 	the exclusion is $30,400 $38,000 minus nine percent of the valuation over $76,000 $95,000. 
87.6 	For a homestead valued at $413,800 $517,200 or more, there is no valuation exclusion. The 
87.7 	valuation exclusion shall be rounded to the nearest whole dollar, and may not be less than 
87.8 	zero.
87.9 	(c) Any valuation exclusions or adjustments under section 273.11 shall be applied prior 
87.10 	to determining the amount of the valuation exclusion under this subdivision.
87.11 	(d) In the case of a property that is classified as part homestead and part nonhomestead, 
87.12 	(i) the exclusion shall apply only to the homestead portion of the property, but (ii) if a portion 
87.13 	of a property is classified as nonhomestead solely because not all the owners occupy the 
87.14 	property, not all the owners have qualifying relatives occupying the property, or solely 
87.15 	because not all the spouses of owners occupy the property, the exclusion amount shall be 
87.16 	initially computed as if that nonhomestead portion were also in the homestead class and 
87.17 	then prorated to the owner-occupant's percentage of ownership. For the purpose of this 
87.18 	section, when an owner-occupant's spouse does not occupy the property, the percentage of 
87.19 	ownership for the owner-occupant spouse is one-half of the couple's ownership percentage.

87.20 	EFFECTIVE DATE. This section is effective for assessment year 2023 and thereafter.

87.21 	Sec. 14. Minnesota Statutes 2020, section 273.13, is amended by adding a subdivision to 
87.22 	read:
87.23 		Subd. 36.Affordable housing market value exclusion. (a) Prior to determining a 
87.24 	property's net tax capacity under this section, property classified as class 4a under subdivision 
87.25 	25, paragraph (a), shall be eligible for an affordable housing market value exclusion as 
87.26 	determined under paragraph (b).
87.27 	(b) For a property that meets the requirements under section 273.129, the exclusion is 
87.28 	50 percent of the market value. The valuation shall be rounded to the nearest whole dollar, 
87.29 	and may not be less than zero.
87.30 	(c) Any valuation exclusions or adjustments under section 273.11 shall be applied prior 
87.31 	to determining the amount of the valuation exclusion under this subdivision.

87.32 	EFFECTIVE DATE. This section is effective beginning with assessment year 2023.

88.1 	Sec. 15. Minnesota Statutes 2020, section 273.41, is amended to read:
88.2 	273.41 AMOUNT OF TAX; DISTRIBUTION.
88.3 	There is hereby imposed upon each such cooperative association on December 31 of 
88.4 	each year a tax of $10 for each 100 members, or fraction thereof, of such association. The 
88.5 	tax, when paid, shall be in lieu of all personal property taxes, state, county, or local, upon 
88.6 	distribution lines and the attachments and appurtenances thereto of such associations located 
88.7 	in rural areas. For purposes of this section, "attachments and appurtenances" include, but 
88.8 	are not limited to, all cooperative association-owned metering and streetlighting equipment 
88.9 	that is physically or electrically connected to the cooperative association's distribution 
88.10 	system. The tax shall be payable on or before March 1 of the next succeeding year, to the 
88.11 	commissioner of revenue. If the tax, or any portion thereof, is not paid within the time herein 
88.12 	specified for the payment thereof, there shall be added thereto a specific penalty equal to 
88.13 	ten percent of the amount so remaining unpaid. Such penalty shall be collected as part of 
88.14 	said tax, and the amount of said tax not timely paid, together with said penalty, shall bear 
88.15 	interest at the rate specified in section 270C.40 from the time such tax should have been 
88.16 	paid until paid. The commissioner shall deposit the amount so received in the general fund 
88.17 	of the state treasury.

88.18 	EFFECTIVE DATE. This section is effective beginning with assessment year 2023.

88.19 	Sec. 16. Minnesota Statutes 2021 Supplement, section 275.025, subdivision 1, is amended 
88.20 	to read:
88.21 		Subdivision 1.Levy amount. The state general levy is levied against 
88.22 	commercial-industrial property and seasonal residential recreational property, as defined 
88.23 	in this section. The state general levy for commercial-industrial property is $716,990,000
88.24 	$708,188,000 for taxes payable in 2023 through 2025; $637,369,000 for taxes payable in 
88.25 	2026; $566,550,000 for taxes payable in 2027; $495,731,000 for taxes payable in 2028; 
88.26 	$424,912,000 for taxes payable in 2029; $354,093,000 for taxes payable in 2030; 
88.27 	$283,274,000 for taxes payable in 2031; $212,455,000 for taxes payable in 2032; 
88.28 	$141,636,000 for taxes payable in 2033; $70,817,000 for taxes payable in 2034; and $0 for 
88.29 	taxes payable in 2035 and thereafter. The state general levy for seasonal-recreational property 
88.30 	is $41,690,000 $41,178,000 for taxes payable in 2020 2023 through 2025; $37,060,000 for 
88.31 	taxes payable in 2026; $32,942,000 for taxes payable in 2027; $28,824,000 for taxes payable 
88.32 	in 2028; $24,706,000 for taxes payable in 2029; $20,588,000 for taxes payable in 2030; 
88.33 	$16,470,000 for taxes payable in 2031; $12,352,000 for taxes payable in 2032; $8,234,000 
88.34 	for taxes payable in 2033; $4,116,000 for taxes payable in 2034; and $0 for taxes payable 
89.1 	in 2035 and thereafter. The tax under this section is not treated as a local tax rate under 
89.2 	section 469.177 and is not the levy of a governmental unit under chapters 276A and 473F.
89.3 	The commissioner shall increase or decrease the preliminary or final rate for a year as 
89.4 	necessary to account for errors and tax base changes that affected a preliminary or final rate 
89.5 	for either of the two preceding years. Adjustments are allowed to the extent that the necessary 
89.6 	information is available to the commissioner at the time the rates for a year must be certified, 
89.7 	and for the following reasons:
89.8 	(1) an erroneous report of taxable value by a local official;
89.9 	(2) an erroneous calculation by the commissioner; and
89.10 	(3) an increase or decrease in taxable value for commercial-industrial or seasonal 
89.11 	residential recreational property reported to the commissioner under section 270C.85, 
89.12 	subdivision 2, clause (4), for the same year.
89.13 	The commissioner may, but need not, make adjustments if the total difference in the tax 
89.14 	levied for the year would be less than $100,000.

89.15 	EFFECTIVE DATE. This section is effective for taxes payable in 2023 and thereafter.

89.16 	Sec. 17. Minnesota Statutes 2020, section 276.04, subdivision 2, is amended to read:
89.17 		Subd. 2.Contents of tax statements. (a) The treasurer shall provide for the printing of 
89.18 	the tax statements. The commissioner of revenue shall prescribe the form of the property 
89.19 	tax statement and its contents. The tax statement must not state or imply that property tax 
89.20 	credits are paid by the state of Minnesota. The statement must contain a tabulated statement 
89.21 	of the dollar amount due to each taxing authority and the amount of the state tax from the 
89.22 	parcel of real property for which a particular tax statement is prepared. The dollar amounts 
89.23 	attributable to the county, the state tax, the voter approved school tax, the other local school 
89.24 	tax, the township or municipality, and the total of the metropolitan special taxing districts 
89.25 	as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The 
89.26 	amounts due all other special taxing districts, if any, may be aggregated except that any 
89.27 	levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin, 
89.28 	Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly 
89.29 	under the appropriate county's levy. If the county levy under this paragraph includes an 
89.30 	amount for a lake improvement district as defined under sections 103B.501 to 103B.581, 
89.31 	the amount attributable for that purpose must be separately stated from the remaining county 
89.32 	levy amount. In the case of Ramsey County, if the county levy under this paragraph includes 
89.33 	an amount for public library service under section 134.07, the amount attributable for that 
90.1 	purpose may be separated from the remaining county levy amount. The amount of the tax 
90.2 	on homesteads qualifying under the senior citizens' property tax deferral program under 
90.3 	chapter 290B is the total amount of property tax before subtraction of the deferred property 
90.4 	tax amount. The amount of the tax on contamination value imposed under sections 270.91 
90.5 	to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar 
90.6 	amount of any special assessments, may be rounded to the nearest even whole dollar. For 
90.7 	purposes of this section whole odd-numbered dollars may be adjusted to the next higher 
90.8 	even-numbered dollar. The amount of market value excluded under section 273.11, 
90.9 	subdivision 16, if any, must also be listed on the tax statement.
90.10 	(b) The property tax statements for manufactured homes and sectional structures taxed 
90.11 	as personal property shall contain the same information that is required on the tax statements 
90.12 	for real property.
90.13 	(c) Real and personal property tax statements must contain the following information 
90.14 	in the order given in this paragraph. The information must contain the current year tax 
90.15 	information in the right column with the corresponding information for the previous year 
90.16 	in a column on the left:
90.17 	(1) the property's estimated market value under section 273.11, subdivision 1;
90.18 	(2) the property's homestead market value exclusion under section 273.13, subdivision 
90.19 	35, or the affordable housing market value exclusion under section 273.13, subdivision 36;
90.20 	(3) the property's taxable market value under section 272.03, subdivision 15;
90.21 	(4) the property's gross tax, before credits;
90.22 	(5) for agricultural properties, the credits under sections 273.1384 and, 273.1387, and 
90.23 	273.1388;
90.24 	(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; 
90.25 	273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit 
90.26 	received under section 273.135 must be separately stated and identified as "taconite tax 
90.27 	relief"; and
90.28 	(7) the net tax payable in the manner required in paragraph (a).
90.29 	(d) If the county uses envelopes for mailing property tax statements and if the county 
90.30 	agrees, a taxing district may include a notice with the property tax statement notifying 
90.31 	taxpayers when the taxing district will begin its budget deliberations for the current year, 
90.32 	and encouraging taxpayers to attend the hearings. If the county allows notices to be included 
90.33 	in the envelope containing the property tax statement, and if more than one taxing district 
91.1 	relative to a given property decides to include a notice with the tax statement, the county 
91.2 	treasurer or auditor must coordinate the process and may combine the information on a 
91.3 	single announcement.

91.4 	EFFECTIVE DATE. This section is effective beginning with assessment year 2023.

91.5 	Sec. 18. Minnesota Statutes 2020, section 279.03, subdivision 1a, is amended to read:
91.6 		Subd. 1a.Rate. (a) Except as provided in paragraph paragraphs (b) and (c), interest on 
91.7 	delinquent property taxes, penalties, and costs unpaid on or after January 1 is payable at the 
91.8 	per annum rate determined in section 270C.40, subdivision 5. If the rate so determined is 
91.9 	less than ten percent, the rate of interest is ten percent. The maximum per annum rate is 14 
91.10 	percent if the rate specified under section 270C.40, subdivision 5, exceeds 14 percent. The 
91.11 	rate is subject to change on January 1 of each year.
91.12 	(b) If a person is the owner of one or more parcels of property on which taxes are 
91.13 	delinquent, and the delinquent taxes are more than 25 percent of the prior year's school 
91.14 	district levy, interest on the delinquent property taxes, penalties, and costs unpaid is payable 
91.15 	at twice the rate determined under paragraph (a) for the year.
91.16 	(c) A county board, by resolution, may establish an interest rate lower than the interest 
91.17 	rate determined under paragraph (a).

91.18 	EFFECTIVE DATE. This section is effective for property taxes, penalties, and costs 
91.19 	determined to be delinquent on or after January 1, 2023.

91.20 	Sec. 19. Minnesota Statutes 2020, section 282.261, subdivision 2, is amended to read:
91.21 		Subd. 2.Interest rate. (a) Except as provided under paragraph (b), the unpaid balance 
91.22 	on any repurchase contract approved by the county board is subject to interest at the rate 
91.23 	determined in section 279.03, subdivision 1a. The interest rate is subject to change each 
91.24 	year on the unpaid balance in the manner provided for rate changes in section 279.03, 
91.25 	subdivision 1a.
91.26 	(b) A county board, by resolution, or a county auditor, if delegated the responsibility to 
91.27 	administer tax-forfeited land assigned to the county board as provided under section 282.135, 
91.28 	may establish an interest rate lower than the interest rate determined under paragraph (a).

91.29 	EFFECTIVE DATE. This section is effective January 1, 2023.

92.1 	Sec. 20. Minnesota Statutes 2020, section 290A.04, subdivision 2h, is amended to read:
92.2 		Subd. 2h.Additional refund. (a) If the gross property taxes payable on a homestead 
92.3 	increase more than 12 ten percent over the property taxes payable in the prior year on the 
92.4 	same property that is owned and occupied by the same owner on January 2 of both years, 
92.5 	and the amount of that increase is $100 or more, a claimant who is a homeowner shall be 
92.6 	allowed an additional refund equal to 60 percent of the amount of the increase over the 
92.7 	greater of 12 ten percent of the prior year's property taxes payable or $100. This subdivision 
92.8 	shall not apply to any increase in the gross property taxes payable attributable to 
92.9 	improvements made to the homestead after the assessment date for the prior year's taxes. 
92.10 	This subdivision shall not apply to any increase in the gross property taxes payable 
92.11 	attributable to the termination of valuation exclusions under section 273.11, subdivision 
92.12 	16.
92.13 	The maximum refund allowed under this subdivision is $1,000 $2,000.
92.14 	(b) For purposes of this subdivision "gross property taxes payable" means property taxes 
92.15 	payable determined without regard to the refund allowed under this subdivision.
92.16 	(c) In addition to the other proofs required by this chapter, each claimant under this 
92.17 	subdivision shall file with the property tax refund return a copy of the property tax statement 
92.18 	for taxes payable in the preceding year or other documents required by the commissioner.
92.19 	(d) Upon request, the appropriate county official shall make available the names and 
92.20 	addresses of the property taxpayers who may be eligible for the additional property tax 
92.21 	refund under this section. The information shall be provided on a magnetic computer disk. 
92.22 	The county may recover its costs by charging the person requesting the information the 
92.23 	reasonable cost for preparing the data. The information may not be used for any purpose 
92.24 	other than for notifying the homeowner of potential eligibility and assisting the homeowner, 
92.25 	without charge, in preparing a refund claim.

92.26 	EFFECTIVE DATE. This section is effective for refund claims based on taxes payable 
92.27 	in 2023 and thereafter.

92.28 	Sec. 21. Minnesota Statutes 2020, section 290B.03, subdivision 1, is amended to read:
92.29 		Subdivision 1.Program qualifications. The qualifications for the senior citizens' 
92.30 	property tax deferral program are as follows:
92.31 	(1) the property must be owned and occupied as a homestead by a person 65 years of 
92.32 	age or older. In the case of a married couple, at least one of the spouses must be at least 65 
92.33 	years old at the time the first property tax deferral is granted, regardless of whether the 
93.1 	property is titled in the name of one spouse or both spouses, or titled in another way that 
93.2 	permits the property to have homestead status, and the other spouse must be at least 62 years 
93.3 	of age;
93.4 	(2) the total household income of the qualifying homeowners, as defined in section 
93.5 	290A.03, subdivision 5, for the calendar year preceding the year of the initial application 
93.6 	may not exceed $60,000 $75,000;
93.7 	(3) the homestead must have been owned and occupied as the homestead of at least one 
93.8 	of the qualifying homeowners for at least 15 five years prior to the year the initial application 
93.9 	is filed;
93.10 	(4) there are no state or federal tax liens or judgment liens on the homesteaded property;
93.11 	(5) there are no mortgages or other liens on the property that secure future advances, 
93.12 	except for those subject to credit limits that result in compliance with clause (6); and
93.13 	(6) the total unpaid balances of debts secured by mortgages and other liens on the 
93.14 	property, including unpaid and delinquent special assessments and interest and any delinquent 
93.15 	property taxes, penalties, and interest, but not including property taxes payable during the 
93.16 	year or debts secured by a residential PACE lien, as defined in section 216C.435, subdivision 
93.17 	10d, does not exceed 75 percent of the assessor's estimated market value for the year.

93.18 	EFFECTIVE DATE. This section is effective for applications received for deferral of 
93.19 	taxes payable in 2023 and thereafter.

93.20 	Sec. 22. Minnesota Statutes 2020, section 290B.04, subdivision 3, is amended to read:
93.21 		Subd. 3.Excess-income certification by taxpayer. A taxpayer whose initial application 
93.22 	has been approved under subdivision 2 shall notify the commissioner of revenue in writing 
93.23 	by July 1 if the taxpayer's household income for the preceding calendar year exceeded 
93.24 	$60,000 $75,000. The certification must state the homeowner's total household income for 
93.25 	the previous calendar year. No property taxes may be deferred under this chapter in any 
93.26 	year following the year in which a program participant filed or should have filed an 
93.27 	excess-income certification under this subdivision, unless the participant has filed a 
93.28 	resumption of eligibility certification as described in subdivision 4.

93.29 	EFFECTIVE DATE. This section is effective for applications received for deferral of 
93.30 	taxes payable in 2023 and thereafter.

94.1 	Sec. 23. Minnesota Statutes 2020, section 290B.04, subdivision 4, is amended to read:
94.2 		Subd. 4.Resumption of eligibility certification by taxpayer. A taxpayer who has 
94.3 	previously filed an excess-income certification under subdivision 3 may resume program 
94.4 	participation if the taxpayer's household income for a subsequent year is $60,000 $75,000
94.5 	or less. If the taxpayer chooses to resume program participation, the taxpayer must notify 
94.6 	the commissioner of revenue in writing by July 1 of the year following a calendar year in 
94.7 	which the taxpayer's household income is $60,000 $75,000 or less. The certification must 
94.8 	state the taxpayer's total household income for the previous calendar year. Once a taxpayer 
94.9 	resumes participation in the program under this subdivision, participation will continue until 
94.10 	the taxpayer files a subsequent excess-income certification under subdivision 3 or until 
94.11 	participation is terminated under section 290B.08, subdivision 1.

94.12 	EFFECTIVE DATE. This section is effective for applications received for deferral of 
94.13 	taxes payable in 2023 and thereafter.

94.14 	Sec. 24. Minnesota Statutes 2020, section 290B.05, subdivision 1, is amended to read:
94.15 		Subdivision 1.Determination by commissioner. The commissioner shall determine 
94.16 	each qualifying homeowner's "annual maximum property tax amount" following approval 
94.17 	of the homeowner's initial application and following the receipt of a resumption of eligibility 
94.18 	certification. The "annual maximum property tax amount" equals three percent of the 
94.19 	homeowner's total household income for the year preceding either the initial application or 
94.20 	the resumption of eligibility certification, whichever is applicable. Following approval of 
94.21 	the initial application, the commissioner shall determine the qualifying homeowner's 
94.22 	"maximum allowable deferral." No tax may be deferred relative to the appropriate assessment 
94.23 	year for any homeowner whose total household income for the previous year exceeds 
94.24 	$60,000 $75,000. No tax shall be deferred in any year in which the homeowner does not 
94.25 	meet the program qualifications in section 290B.03. The maximum allowable total deferral 
94.26 	is equal to 75 percent of the assessor's estimated market value for the year, less the balance 
94.27 	of any mortgage loans and other amounts secured by liens against the property at the time 
94.28 	of application, including any unpaid and delinquent special assessments and interest and 
94.29 	any delinquent property taxes, penalties, and interest, but not including property taxes 
94.30 	payable during the year.

94.31 	EFFECTIVE DATE. This section is effective for applications received for deferral of 
94.32 	taxes payable in 2023 and thereafter.

95.1 	Sec. 25. CITY OF VIRGINIA; NET DEBT LIMIT EXEMPTION.
 95.2 	The city of Virginia may finance the construction of a public safety building in the city 
95.3 	of Virginia by obtaining a loan from the United States Department of Agriculture secured 
95.4 	by its general obligation pledge. Any bonds issued relating to this construction project or 
95.5 	repayment of the loan must not be included in the computation of the city's limit on net debt 
95.6 	under Minnesota Statutes, section 475.53, subdivision 1.

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

95.8 	ARTICLE 5
95.9 	PROPERTY TAX AIDS AND CREDITS

95.10 	Section 1. [273.1388] AGRICULTURAL RIPARIAN BUFFER CREDIT.
95.11 		Subdivision 1.Eligibility. Class 2a and 2b property under section 273.13, subdivision 
95.12 	23, containing a riparian buffer as defined in section 103F.48, not including land enrolled 
95.13 	in and generating payments under a state or federal conservation reserve or easement program 
95.14 	under sections 103F.501 to 103F.531, is eligible to receive the credit under this section, 
95.15 	provided that the landowner follows the requirements of section 103F.48. Eligible land must 
95.16 	be certified by the local soil and water conservation district to the county assessor. This 
95.17 	certification is effective until the local soil and water conservation district notifies the 
95.18 	assessor that qualified land is no longer eligible for a credit under the requirements of this 
95.19 	section. The local soil and water conservation districts must annually notify their county 
95.20 	assessor of any qualified land that is no longer eligible for a credit under the requirements 
95.21 	of this section.
95.22 		Subd. 2.Credit amount. For each qualifying property, the agricultural riparian buffer 
95.23 	credit is equal to the amount of net tax capacity-based property tax attributable to the portion 
95.24 	of the property eligible under subdivision 1.
95.25 		Subd. 3.Credit reimbursement. The county auditor must determine the tax reductions 
95.26 	allowed under this section within the county for each taxes payable year and must certify 
95.27 	that amount to the commissioner of revenue as part of the data required under section 
95.28 	270C.85, subdivision 2. Any prior year adjustments must also be certified as part of the 
95.29 	data required under section 270C.85, subdivision 2. The commissioner must review the 
95.30 	certifications for accuracy and may make such changes as are deemed necessary or return 
95.31 	the certification to the county auditor for correction. The credit under this section must be 
95.32 	used to proportionately reduce the net tax capacity-based property tax payable to each local 
95.33 	taxing jurisdiction as provided in section 273.1393.
96.1 		Subd. 4.Payment. (a) The commissioner of revenue shall reimburse each local taxing 
96.2 	jurisdiction, other than school districts, for the tax reductions granted under this section in 
96.3 	two equal installments on October 31 and December 26 of the taxes payable year for which 
96.4 	the reductions are granted, including in each payment the prior year adjustments certified 
96.5 	under section 270C.85, subdivision 2, for that taxes payable year.
96.6 	(b) The commissioner of revenue shall certify the total of the tax reductions granted 
96.7 	under this section for each taxes payable year within each school district to the commissioner 
96.8 	of education and the commissioner of education must pay the reimbursement amounts to 
96.9 	each school district as provided in section 273.1392.
96.10 		Subd. 5.Appropriation. An amount sufficient to make the payments required by this 
96.11 	section to taxing jurisdictions other than school districts is annually appropriated from the 
96.12 	general fund to the commissioner of revenue. An amount sufficient to make the payments 
96.13 	required by this section for school districts is annually appropriated from the general fund 
96.14 	to the commissioner of education.

96.15 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2024.

96.16 	Sec. 2. Minnesota Statutes 2020, section 273.1392, is amended to read:
96.17 	273.1392 PAYMENT; SCHOOL DISTRICTS.
96.18 	The amounts of bovine tuberculosis credit reimbursements under section 273.113; 
96.19 	conservation tax credits under section 273.119; disaster or emergency reimbursement under 
96.20 	sections 273.1231 to 273.1235; agricultural credits under sections 273.1384and,273.1387, 
96.21 	and 273.1388; aids and credits under section 273.1398; enterprise zone property credit 
96.22 	payments under section 469.171; and metropolitan agricultural preserve reduction under 
96.23 	section 473H.10; and electric generation transition aid under section 477A.23 for school 
96.24 	districts, shall be certified to the Department of Education by the Department of Revenue. 
96.25 	The amounts so certified shall be paid according to section 127A.45, subdivisions 9, 10, 
96.26 	and 13.

96.27 	EFFECTIVE DATE. This section is effective July 1, 2024.

96.28 	Sec. 3. Minnesota Statutes 2020, section 273.1393, is amended to read:
96.29 	273.1393 COMPUTATION OF NET PROPERTY TAXES.
96.30 	Notwithstanding any other provisions to the contrary, "net" property taxes are determined 
96.31 	by subtracting the credits in the order listed from the gross tax:
96.32 	(1) disaster credit as provided in sections 273.1231 to 273.1235;
97.1 	(2) powerline credit as provided in section 273.42;
97.2 	(3) agricultural preserves credit as provided in section 473H.10;
97.3 	(4) enterprise zone credit as provided in section 469.171;
97.4 	(5) disparity reduction credit;
97.5 	(6) conservation tax credit as provided in section 273.119;
97.6 	(7) the school bond credit as provided in section 273.1387;
97.7 	(8) agricultural riparian buffer credit as provided in section 273.1388;
97.8 	(8) (9) agricultural credit as provided in section 273.1384;
97.9 	(9) (10) taconite homestead credit as provided in section 273.135;
97.10 	(10) (11) supplemental homestead credit as provided in section 273.1391; and
97.11 	(11) (12) the bovine tuberculosis zone credit, as provided in section 273.113.
97.12 	The combination of all property tax credits must not exceed the gross tax amount.

97.13 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2024.

97.14 	Sec. 4. Minnesota Statutes 2021 Supplement, section 275.065, subdivision 3, is amended 
97.15 	to read:
97.16 		Subd. 3.Notice of proposed property taxes. (a) The county auditor shall prepare and 
97.17 	the county treasurer shall deliver after November 10 and on or before November 24 each 
97.18 	year, by first class mail to each taxpayer at the address listed on the county's current year's 
97.19 	assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer, 
97.20 	the treasurer may send the notice in electronic form or by electronic mail instead of on paper 
97.21 	or by ordinary mail.
97.22 	(b) The commissioner of revenue shall prescribe the form of the notice.
97.23 	(c) The notice must inform taxpayers that it contains the amount of property taxes each 
97.24 	taxing authority proposes to collect for taxes payable the following year. In the case of a 
97.25 	town, or in the case of the state general tax, the final tax amount will be its proposed tax. 
97.26 	The notice must clearly state for each city that has a population over 500, county, school 
97.27 	district, regional library authority established under section 134.201, metropolitan taxing 
97.28 	districts as defined in paragraph (i), and fire protection and emergency medical services 
97.29 	special taxing districts established under section 144F.01, the time and place of a meeting 
97.30 	for each taxing authority in which the budget and levy will be discussed and public input 
98.1 	allowed, prior to the final budget and levy determination. The taxing authorities must provide 
98.2 	the county auditor with the information to be included in the notice on or before the time it 
98.3 	certifies its proposed levy under subdivision 1. The public must be allowed to speak at that 
98.4 	meeting, which must occur after November 24 and must not be held before 6:00 p.m. It 
98.5 	must provide a telephone number for the taxing authority that taxpayers may call if they 
98.6 	have questions related to the notice and an address where comments will be received by 
98.7 	mail, except that no notice required under this section shall be interpreted as requiring the 
98.8 	printing of a personal telephone number or address as the contact information for a taxing 
98.9 	authority. If a taxing authority does not maintain public offices where telephone calls can 
98.10 	be received by the authority, the authority may inform the county of the lack of a public 
98.11 	telephone number and the county shall not list a telephone number for that taxing authority.
98.12 	(d) The notice must state for each parcel:
98.13 	(1) the market value of the property as determined under section 273.11, and used for 
98.14 	computing property taxes payable in the following year and for taxes payable in the current 
98.15 	year as each appears in the records of the county assessor on November 1 of the current 
98.16 	year; and, in the case of residential property, whether the property is classified as homestead 
98.17 	or nonhomestead. The notice must clearly inform taxpayers of the years to which the market 
98.18 	values apply and that the values are final values;
98.19 	(2) the items listed below, shown separately by county, city or town, and state general 
98.20 	tax, agricultural homestead credit under section 273.1384, school building bond agricultural 
98.21 	credit under section 273.1387, agricultural riparian buffer credit under section 273.1388,
98.22 	voter approved school levy, other local school levy, and the sum of the special taxing 
98.23 	districts, and as a total of all taxing authorities:
98.24 	(i) the actual tax for taxes payable in the current year; and
98.25 	(ii) the proposed tax amount.
98.26 	If the county levy under clause (2) includes an amount for a lake improvement district 
98.27 	as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose 
98.28 	must be separately stated from the remaining county levy amount.
98.29 	In the case of a town or the state general tax, the final tax shall also be its proposed tax 
98.30 	unless the town changes its levy at a special town meeting under section 365.52. If a school 
98.31 	district has certified under section 126C.17, subdivision 9, that a referendum will be held 
98.32 	in the school district at the November general election, the county auditor must note next 
98.33 	to the school district's proposed amount that a referendum is pending and that, if approved 
98.34 	by the voters, the tax amount may be higher than shown on the notice. In the case of the 
99.1 	city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately 
99.2 	from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for 
99.3 	the St. Paul Library Agency must be listed separately from the remaining amount of the 
99.4 	city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be 
99.5 	listed separately from the remaining amount of the county's levy. In the case of a parcel 
99.6 	where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F 
99.7 	applies, the proposed tax levy on the captured value or the proposed tax levy on the tax 
99.8 	capacity subject to the areawide tax must each be stated separately and not included in the 
99.9 	sum of the special taxing districts; and
99.10 	(3) the increase or decrease between the total taxes payable in the current year and the 
99.11 	total proposed taxes, expressed as a percentage.
99.12 	For purposes of this section, the amount of the tax on homesteads qualifying under the 
99.13 	senior citizens' property tax deferral program under chapter 290B is the total amount of 
99.14 	property tax before subtraction of the deferred property tax amount.
99.15 	(e) The notice must clearly state that the proposed or final taxes do not include the 
99.16 	following:
99.17 	(1) special assessments;
99.18 	(2) levies approved by the voters after the date the proposed taxes are certified, including 
99.19 	bond referenda and school district levy referenda;
99.20 	(3) a levy limit increase approved by the voters by the first Tuesday after the first Monday 
99.21 	in November of the levy year as provided under section 275.73;
99.22 	(4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring 
99.23 	after the date the proposed taxes are certified;
99.24 	(5) amounts necessary to pay tort judgments against the taxing authority that become 
99.25 	final after the date the proposed taxes are certified; and
99.26 	(6) the contamination tax imposed on properties which received market value reductions 
99.27 	for contamination.
99.28 	(f) Except as provided in subdivision 7, failure of the county auditor to prepare or the 
99.29 	county treasurer to deliver the notice as required in this section does not invalidate the 
99.30 	proposed or final tax levy or the taxes payable pursuant to the tax levy.
99.31 	(g) If the notice the taxpayer receives under this section lists the property as 
99.32 	nonhomestead, and satisfactory documentation is provided to the county assessor by the 
100.1 	applicable deadline, and the property qualifies for the homestead classification in that 
100.2 	assessment year, the assessor shall reclassify the property to homestead for taxes payable 
100.3 	in the following year.
100.4 	(h) In the case of class 4 residential property used as a residence for lease or rental 
100.5 	periods of 30 days or more, the taxpayer must either:
100.6 	(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter, 
100.7 	or lessee; or
100.8 	(2) post a copy of the notice in a conspicuous place on the premises of the property.
100.9 	The notice must be mailed or posted by the taxpayer by November 27 or within three 
100.10 	days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer 
100.11 	of the address of the taxpayer, agent, caretaker, or manager of the premises to which the 
100.12 	notice must be mailed in order to fulfill the requirements of this paragraph.
100.13 	(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing 
100.14 	districts" means the following taxing districts in the seven-county metropolitan area that 
100.15 	levy a property tax for any of the specified purposes listed below:
100.16 	(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446, 
100.17 	473.521, 473.547, or 473.834;
100.18 	(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
100.19 	(3) Metropolitan Mosquito Control Commission under section 473.711.
100.20 	For purposes of this section, any levies made by the regional rail authorities in the county 
100.21 	of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A 
100.22 	shall be included with the appropriate county's levy.
100.23 	(j) The governing body of a county, city, or school district may, with the consent of the 
100.24 	county board, include supplemental information with the statement of proposed property 
100.25 	taxes about the impact of state aid increases or decreases on property tax increases or 
100.26 	decreases and on the level of services provided in the affected jurisdiction. This supplemental 
100.27 	information may include information for the following year, the current year, and for as 
100.28 	many consecutive preceding years as deemed appropriate by the governing body of the 
100.29 	county, city, or school district. It may include only information regarding:
100.30 	(1) the impact of inflation as measured by the implicit price deflator for state and local 
100.31 	government purchases;
100.32 	(2) population growth and decline;
101.1 	(3) state or federal government action; and
101.2 	(4) other financial factors that affect the level of property taxation and local services 
101.3 	that the governing body of the county, city, or school district may deem appropriate to 
101.4 	include.
101.5 	The information may be presented using tables, written narrative, and graphic 
101.6 	representations and may contain instruction toward further sources of information or 
101.7 	opportunity for comment.

101.8 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2024.

101.9 	Sec. 5. [477A.23] ELECTRIC GENERATION TRANSITION AID.
101.10 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
101.11 	the meanings given.
101.12 	(b) "Electric generating unit" means a single generating unit at an electric generating 
101.13 	plant powered by coal, nuclear, or natural gas.
101.14 	(c) "Electric generation property" means taxable property of an electric generating plant 
101.15 	owned by a public utility, as defined in section 216B.02, subdivision 4, that is powered by 
101.16 	coal, nuclear, or natural gas and located in an eligible taxing jurisdiction.
101.17 	(d) "Eligible taxing jurisdiction" means a county, home rule charter or statutory city, 
101.18 	town, or school district.
101.19 	(e) "Unit base year" means the assessment year in which the assessed value of electric 
101.20 	generation property is reduced due to the retirement of the electric generating unit.
101.21 	(f) "Unit differential" means (1) the tax capacity of electric generation property in the 
101.22 	assessment year preceding the unit base year, minus (2) the tax capacity of electric generation 
101.23 	property in the unit base year. The unit differential may not be less than zero. The unit 
101.24 	differential equals zero if the tax capacity of electric generation property in the eligible 
101.25 	taxing jurisdiction in the assessment year preceding the unit base year is less than four 
101.26 	percent of the total net tax capacity of the eligible taxing jurisdiction in the assessment year 
101.27 	preceding the aid calculation year, as adjusted under section 473F.08, subdivision 2, or 
101.28 	276A.06, subdivision 2, as applicable.
101.29 		Subd. 2.Required notification. Notwithstanding the requirements of Minnesota Rules, 
101.30 	chapter 8100, a public utility must notify the commissioner when the public utility expects 
101.31 	to retire an electric generating unit and remove that unit from the property tax base. The 
101.32 	notification must be in the form and manner determined by the commissioner, include 
102.1 	information required by the commissioner to calculate transition aid under this section, and 
102.2 	be filed together with the reports required under section 273.371.
102.3 		Subd. 3.Unit transition amount. (a) The initial unit transition amount equals the product 
102.4 	of (1) the unit differential, times (2) the jurisdiction's tax rate for taxes payable in the unit 
102.5 	base year.
102.6 	(b) The unit transition amount for the year following the unit base year, or in the year 
102.7 	as provided under subdivision 6, equals the initial unit transition amount. Unit transition 
102.8 	amounts in subsequent years must be reduced each year by an amount equal to five percent 
102.9 	of the initial unit transition amount. If the unit transition amount attributable to any unit is 
102.10 	less than $5,000 in any year, the unit transition amount for that unit equals zero.
102.11 		Subd. 4.Electric generation transition aid. Electric generation transition aid for an 
102.12 	eligible taxing jurisdiction equals the sum of the unit transition amounts for that jurisdiction.
102.13 		Subd. 5.Aid elimination. (a) Notwithstanding subdivision 4, beginning for aid in the 
102.14 	year after the year in which the jurisdiction first qualified for aid, aid for an eligible taxing 
102.15 	jurisdiction equals zero if the commissioner determines that the eligible taxing jurisdiction's 
102.16 	total net tax capacity in the assessment year preceding the aid calculation year is greater 
102.17 	than the product of:
102.18 	(1) 90 percent of the jurisdiction's total net tax capacity in the assessment year preceding 
102.19 	the aid calculation year in which the jurisdiction first qualified for aid under this section; 
102.20 	times
102.21 	(2) the greater of one or the ratio of (i) the statewide total net tax capacity of real and 
102.22 	personal property in the assessment year preceding the aid calculation year to (ii) the 
102.23 	statewide total net tax capacity of real and personal property in the assessment year preceding 
102.24 	the aid calculation year in which the jurisdiction first qualified for aid under this section.
102.25 	(b) For the purposes of this subdivision, "net tax capacity" means net tax capacity as 
102.26 	adjusted under section 473F.08, subdivision 2, or 276A.06, subdivision 2, as applicable.
102.27 	(c) If aid to a jurisdiction attributable to a previous unit retirement has been eliminated 
102.28 	under this subdivision, the jurisdiction may qualify for aid under this section for subsequent 
102.29 	unit retirements.
102.30 	(d) The requirements of this subdivision do not apply to the aid attributable to prior unit 
102.31 	retirements qualifying under subdivision 7.
102.32 		Subd. 6.Commissioner's duties; payment schedule. (a) The commissioner of revenue 
102.33 	shall compute the amount of electric generation transition aid payable to each jurisdiction 
103.1 	under this section. On or before August 1 of each year, the commissioner shall certify the 
103.2 	amount of aid computed for aids payable in the following year for each jurisdiction. The 
103.3 	commissioner shall pay aid to each jurisdiction other than school districts annually at the 
103.4 	times provided in section 477A.015. Aids to school districts must be certified to the 
103.5 	commissioner of education and paid under section 273.1392.
103.6 	(b) The commissioner of revenue may require counties to provide any data that the 
103.7 	commissioner deems necessary to administer this section.
103.8 		Subd. 7.Aid for prior unit retirements. An electric generating unit with a unit base 
103.9 	year after 2016 but before 2023 must be counted for the purpose of calculating aid under 
103.10 	this section. For a unit eligible to be counted under this subdivision and for the purpose of 
103.11 	the schedule of amounts under subdivision 3, paragraph (b), the unit base year is 2023.
103.12 		Subd. 8.Appropriation. An amount sufficient to make the aid payments required by 
103.13 	this section to eligible taxing jurisdictions other than school districts is annually appropriated 
103.14 	from the general fund to the commissioner of revenue. An amount sufficient to make the 
103.15 	aid payments required by this section for school districts is annually appropriated from the 
103.16 	general fund to the commissioner of education.

103.17 	EFFECTIVE DATE. This section is effective for aids payable in 2024 and thereafter.

103.18 	Sec. 6. MILLE LACS COUNTY; COUNTY, CITY, TOWNSHIP, AND SCHOOL 
103.19 	DISTRICT REIMBURSEMENT.
 103.20 	(a) A taxing jurisdiction located in Mille Lacs County that has lost property tax revenue 
103.21 	due to the placement of property into trust by the United States Department of the Interior 
103.22 	Bureau of Indian Affairs is eligible for reimbursement under this section in the following 
103.23 	manner:
103.24 	(1) by July 1, 2022, the auditor of Mille Lacs County must certify to the commissioner 
103.25 	of revenue the amount of tax revenue lost by each taxing jurisdiction in the county due to 
103.26 	property being placed into trust between January 1, 2009, and December 31, 2020;
103.27 	(2) by July 1 of each year starting in 2022, the auditor of Mille Lacs County must certify 
103.28 	to the commissioner of revenue the amount of tax revenue lost by each taxing jurisdiction 
103.29 	in the county due to property being placed into trust during the preceding calendar year. 
103.30 	This clause only applies to properties that were the subject of an application for placement 
103.31 	into trust between January 1, 2009, and June 30, 2021; and
103.32 	(3) in the first five years following certification under clause (1) or (2), the commissioner 
103.33 	of education must distribute to the county the full amount certified for school districts, and 
104.1 	the commissioner of revenue must distribute to the county the full amount certified for 
104.2 	taxing jurisdictions other than school districts. The county must distribute to each taxing 
104.3 	jurisdiction the certified amount of tax revenue lost by the jurisdiction. In the sixth year 
104.4 	following certification and in each year thereafter, the commissioners of education and 
104.5 	revenue must distribute to the county, for distribution to each taxing jurisdiction, an amount 
104.6 	equal to the previous year's amount minus 20 percent of the amount distributed in the first 
104.7 	year.
104.8 	(b) Reimbursements required by this section must be paid to taxing jurisdictions other 
104.9 	than school districts at the times provided in Minnesota Statutes, section 477A.015, for 
104.10 	payment of local government aid. Aid to school districts must be certified to the 
104.11 	commissioner of education and paid under Minnesota Statutes, section 273.1392.
104.12 	(c) An amount sufficient to make the payments to taxing jurisdictions other than school 
104.13 	districts is annually appropriated from the general fund to the commissioner of revenue. An 
104.14 	amount sufficient to make the payment to school districts is annually appropriated from the 
104.15 	general fund to the commissioner of education.
104.16 	(d) For purposes of this section, "taxing jurisdiction" means a political subdivision 
104.17 	including a county, city, town, township, school district, or special taxing district imposing 
104.18 	a levy on real property.
104.19 	(e) For purposes of this section, "tax revenue lost" means the amount that was payable 
104.20 	in the year before the property became exempt.

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

104.22 	Sec. 7. CLASS 4D LOW-INCOME RENTAL PROPERTY 2024 AND 2025 
104.23 	TRANSITION AID; APPROPRIATION.
 104.24 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms in this 
104.25 	subdivision have the meanings given.
104.26 	(b) "4d property" means class 4d low-income rental property under Minnesota Statutes, 
104.27 	section 273.13, subdivision 25.
104.28 	(c) "Base assessment year" means assessment year 2022.
104.29 	(d) "Local unit" means a home rule charter or statutory city.
104.30 	(e) "Modified transition tax capacity" means the product of (1) one minus the transition 
104.31 	ratio for the local unit, times (2) the transition tax capacity for the local unit.
105.1 	(f) "Transition ratio" means the ratio of (1) the net tax capacity of 4d property for the 
105.2 	local unit in the base assessment year calculated using the classification rates and first-tier 
105.3 	limit in effect for 4d property for taxes payable in 2024, to (2) the net tax capacity of 4d 
105.4 	property for the local unit in the base assessment year calculated using the classification 
105.5 	rates and first-tier limit in effect for 4d property for taxes payable in 2023.
105.6 	(g) "Transition tax capacity" means the greater of zero or the difference between (1) the 
105.7 	net tax capacity of 4d property for the local unit in the base assessment year, minus (2) two 
105.8 	percent of the total net tax capacity for the local unit in the base assessment year.
105.9 		Subd. 2.Aid amount. In 2024 and 2025 only, transition aid for a local unit equals the 
105.10 	product of (1) the local unit's tax rate for taxes payable in 2023, times (2) the modified 
105.11 	transition tax capacity for the local unit.
105.12 		Subd. 3.Administration; payment schedule. (a) For purposes of this section, net tax 
105.13 	capacity must be determined by the commissioner of revenue based on information available 
105.14 	to the commissioner as of July 15, 2023.
105.15 	(b) The commissioner of revenue must notify a local unit of its transition aid amount 
105.16 	before August 1 of the year preceding the aid distribution year and must pay the aid in two 
105.17 	installments on the dates specified in Minnesota Statutes, section 477A.015.
105.18 		Subd. 4.Appropriation. An amount sufficient to pay transition aid under this section 
105.19 	is annually appropriated from the general fund to the commissioner of revenue.

105.20 	EFFECTIVE DATE. This section is effective for aid payable in calendar year 2024 
105.21 	and 2025 only.

105.22 	Sec. 8. 2019 LOCAL GOVERNMENT AID PENALTY FORGIVENESS; CITY OF 
105.23 	ROOSEVELT; APPROPRIATION.
 105.24 	(a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of 
105.25 	Roosevelt shall receive its aid payment for calendar year 2019 under Minnesota Statutes, 
105.26 	section 477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision 
105.27 	3, provided that the state auditor certifies to the commissioner of revenue that the state 
105.28 	auditor received the annual financial reporting form for 2018 from the city as well as all 
105.29 	forms, including the audited financial statement for calendar year 2019, by June 1, 2022. 
105.30 	The commissioner of revenue shall make a payment of $25,410 on July 1, 2022.
105.31 	(b) An amount sufficient to pay aid under this section is appropriated in fiscal year 2023 
105.32 	from the general fund to the commissioner of revenue. This is a onetime appropriation.

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

106.2 	Sec. 9. 2021 AID PENALTY FORGIVENESS; CITY OF BENA.
 106.3 	Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Bena 
106.4 	must receive the city's aid payment for calendar year 2021 under Minnesota Statutes, section 
106.5 	477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, 
106.6 	and the city's small city assistance payment for calendar year 2021 under Minnesota Statutes, 
106.7 	section 162.145, that was withheld under Minnesota Statutes, section 162.145, subdivision 
106.8 	3, paragraph (c), provided that the state auditor certifies to the commissioner of revenue 
106.9 	that the state auditor received the annual financial reporting form for 2020 from the city by 
106.10 	June 1, 2022. The commissioner of revenue must make a payment of $43,774 to the city 
106.11 	by June 30, 2022.

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

106.13 	Sec. 10. 2021 AID PENALTY FORGIVENESS; CITY OF BOY RIVER.
 106.14 	Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Boy 
106.15 	River must receive the city's aid payment for calendar year 2021 under Minnesota Statutes, 
106.16 	section 477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision 
106.17 	3, and the city's small city assistance payment for calendar year 2021 under Minnesota 
106.18 	Statutes, section 162.145, that was withheld under Minnesota Statutes, section 162.145, 
106.19 	subdivision 3, paragraph (c), provided that the state auditor certifies to the commissioner 
106.20 	of revenue that the state auditor received the annual financial reporting form for 2020 from 
106.21 	the city by June 1, 2022. The commissioner of revenue must make a payment of $19,578 
106.22 	to the city by June 30, 2022.

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

106.24 	Sec. 11. 2021 AID PENALTY FORGIVENESS; CITY OF ECHO.
 106.25 	Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Echo 
106.26 	must receive its aid payment for calendar year 2021 under Minnesota Statutes, section 
106.27 	477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, 
106.28 	and its small city assistance payment for calendar year 2021 under Minnesota Statutes, 
106.29 	section 162.145, that was withheld under Minnesota Statutes, section 162.145, subdivision 
106.30 	3, paragraph (c), provided that the state auditor certifies to the commissioner of revenue 
106.31 	that the state auditor received the annual financial reporting form for 2020 from the city by 
107.1 	June 1, 2022. The commissioner of revenue must make a payment of $46,060 to the city 
107.2 	by June 30, 2022.

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

107.4 	Sec. 12. 2021 AID PENALTY FORGIVENESS; CITY OF MORTON.
 107.5 	Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Morton 
107.6 	must receive its aid payment for calendar year 2021 under Minnesota Statutes, section 
107.7 	477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, 
107.8 	and its small city assistance payment for calendar year 2021 under Minnesota Statutes, 
107.9 	section 162.145, that was withheld under Minnesota Statutes, section 162.145, subdivision 
107.10 	3, paragraph (c), provided that the state auditor certifies to the commissioner of revenue 
107.11 	that it received the annual financial reporting form for 2020 from the city by June 1, 2022. 
107.12 	The commissioner of revenue must make a payment of $79,476 to the city by June 30, 2022.

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

107.14 	ARTICLE 6
107.15 	PUBLIC FINANCE

107.16 	Section 1. Minnesota Statutes 2020, section 123B.61, is amended to read:
107.17 	123B.61 PURCHASE OF CERTAIN EQUIPMENT.
107.18 	The board of a district may issue general obligation certificates of indebtedness or capital 
107.19 	notes subject to the district debt limits to: (a) purchase vehicles, computers, telephone 
107.20 	systems, cable equipment, photocopy and office equipment, technological equipment for 
107.21 	instruction, and other capital equipment having an expected useful life at least as long as 
107.22 	the terms of the certificates or notes; (b) purchase computer hardware and software, without 
107.23 	regard to its expected useful life, whether bundled with machinery or equipment or 
107.24 	unbundled, together with application development services and training related to the use 
107.25 	of the computer; and (c) prepay special assessments. The certificates or notes must be 
107.26 	payable in not more than ten 20 years and must be issued on the terms and in the manner 
107.27 	determined by the board, except that certificates or notes issued to prepay special assessments 
107.28 	must be payable in not more than 20 years. The certificates or notes may be issued by 
107.29 	resolution and without the requirement for an election. The certificates or notes are general 
107.30 	obligation bonds for purposes of section 126C.55. A tax levy must be made for the payment 
107.31 	of the principal and interest on the certificates or notes, in accordance with section 475.61, 
107.32 	as in the case of bonds. The sum of the tax levies under this section and section 123B.62
108.1 	for each year must not exceed the lesser of the amount of the district's total operating capital 
108.2 	revenue or the sum of the district's levy in the general and community service funds excluding 
108.3 	the adjustments under this section for the year preceding the year the initial debt service 
108.4 	levies are certified. The district's general fund levy for each year must be reduced by the 
108.5 	sum of (1) the amount of the tax levies for debt service certified for each year for payment 
108.6 	of the principal and interest on the certificates or notes issued under this section as required 
108.7 	by section 475.61, (2) the amount of the tax levies for debt service certified for each year 
108.8 	for payment of the principal and interest on bonds issued under section 123B.62, and (3) 
108.9 	any excess amount in the debt redemption fund used to retire bonds, certificates, or notes 
108.10 	issued under this section or section 123B.62 after April 1, 1997, other than amounts used 
108.11 	to pay capitalized interest. If the district's general fund levy is less than the amount of the 
108.12 	reduction, the balance shall be deducted first from the district's community service fund 
108.13 	levy, and next from the district's general fund or community service fund levies for the 
108.14 	following year. A district using an excess amount in the debt redemption fund to retire the 
108.15 	certificates or notes shall report the amount used for this purpose to the commissioner by 
108.16 	July 15 of the following fiscal year. A district having an outstanding capital loan under 
108.17 	section 126C.69 or an outstanding debt service loan under section 126C.68 must not use an 
108.18 	excess amount in the debt redemption fund to retire the certificates or notes.

108.19 	Sec. 2. Minnesota Statutes 2020, section 366.095, subdivision 1, is amended to read:
108.20 		Subdivision 1.Certificates of indebtedness. The town board may issue certificates of 
108.21 	indebtedness within the debt limits for a town purpose otherwise authorized by law. The 
108.22 	certificates shall be payable in not more than ten 20 years and be issued on the terms and 
108.23 	in the manner as determined by the board may determine, provided that notes issued for 
108.24 	projects that eliminate R-22, as defined in section 240A.09, paragraph (b), clause (2), must 
108.25 	be payable in not more than 20 years. If the amount of the certificates to be issued exceeds 
108.26 	0.25 percent of the estimated market value of the town, they shall not be issued for at least 
108.27 	ten days after publication in a newspaper of general circulation in the town of the board's 
108.28 	resolution determining to issue them. If within that time, a petition asking for an election 
108.29 	on the proposition signed by voters equal to ten percent of the number of voters at the last 
108.30 	regular town election is filed with the clerk, the certificates shall not be issued until their 
108.31 	issuance has been approved by a majority of the votes cast on the question at a regular or 
108.32 	special election. A tax levy shall be made to pay the principal and interest on the certificates 
108.33 	as in the case of bonds.

109.1 	Sec. 3. Minnesota Statutes 2020, section 373.01, subdivision 3, is amended to read:
109.2 		Subd. 3.Capital notes. (a) A county board may, by resolution and without referendum, 
109.3 	issue capital notes subject to the county debt limit to purchase capital equipment useful for 
109.4 	county purposes that has an expected useful life at least equal to the term of the notes. The 
109.5 	notes shall be payable in not more than ten 20 years and shall be issued on the terms and in 
109.6 	a the manner determined by the board determines. A tax levy shall be made for payment of 
109.7 	the principal and interest on the notes, in accordance with section 475.61, as in the case of 
109.8 	bonds.
109.9 	(b) For purposes of this subdivision, "capital equipment" means:
109.10 	(1) public safety, ambulance, road construction or maintenance, and medical equipment, 
109.11 	and other capital equipment; and
109.12 	(2) computer hardware and software, whether bundled with machinery or equipment or 
109.13 	unbundled, together with application development services and training related to the use 
109.14 	of the computer hardware or software.

109.15 	Sec. 4. Minnesota Statutes 2020, section 383B.117, subdivision 2, is amended to read:
109.16 		Subd. 2.Equipment acquisition; capital notes. The board may, by resolution and 
109.17 	without public referendum, issue capital notes within existing debt limits for the purpose 
109.18 	of purchasing ambulance and other medical equipment, road construction or maintenance 
109.19 	equipment, public safety equipment and other capital equipment having an expected useful 
109.20 	life at least equal to the term of the notes issued. The notes shall be payable in not more 
109.21 	than ten 20 years and shall be issued on the terms and in a the manner as determined by the 
109.22 	board determines, provided that notes issued for projects that eliminate R-22, as defined in 
109.23 	section 240A.09, paragraph (b), clause (2), must be payable in not more than 20 years. The 
109.24 	total principal amount of the notes issued for any fiscal year shall not exceed one percent 
109.25 	of the total annual budget for that year and shall be issued solely for the purchases authorized 
109.26 	in this subdivision. A tax levy shall be made for the payment of the principal and interest 
109.27 	on such notes as in the case of bonds. For purposes of this subdivision, "equipment" includes 
109.28 	computer hardware and software, whether bundled with machinery or equipment or 
109.29 	unbundled. For purposes of this subdivision, the term "medical equipment" includes computer 
109.30 	hardware and software and other intellectual property for use in medical diagnosis, medical 
109.31 	procedures, research, record keeping, billing, and other hospital applications, together with 
109.32 	application development services and training related to the use of the computer hardware 
109.33 	and software and other intellectual property, all without regard to their useful life. For 
109.34 	purposes of determining the amount of capital notes which the county may issue in any 
110.1 	year, the budget of the county and Hennepin Healthcare System, Inc. shall be combined 
110.2 	and the notes issuable under this subdivision shall be in addition to obligations issuable 
110.3 	under section 373.01, subdivision 3.

110.4 	Sec. 5. Minnesota Statutes 2020, section 410.32, is amended to read:
110.5 	410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
110.6 	(a) Notwithstanding any contrary provision of other law or charter, a home rule charter 
110.7 	city may, by resolution and without public referendum, issue capital notes subject to the 
110.8 	city debt limit to purchase capital equipment.
110.9 	(b) For purposes of this section, "capital equipment" means:
110.10 	(1) public safety equipment, ambulance and other medical equipment, road construction 
110.11 	and maintenance equipment, and other capital equipment; and
110.12 	(2) computer hardware and software, whether bundled with machinery or equipment or 
110.13 	unbundled, together with application development services and training related to the use 
110.14 	of the computer hardware and software.
110.15 	(c) The equipment or software must have an expected useful life at least as long as the 
110.16 	term of the notes.
110.17 	(d) The notes shall be payable in not more than ten 20 years and be issued on the terms 
110.18 	and in the manner determined by the city determines, provided that notes issued for projects 
110.19 	that eliminate R-22, as defined in section 240A.09, paragraph (b), clause (2), must be payable 
110.20 	in not more than 20 years. The total principal amount of the capital notes issued in a fiscal 
110.21 	year shall not exceed 0.03 percent of the estimated market value of taxable property in the 
110.22 	city for that year.
110.23 	(e) A tax levy shall be made for the payment of the principal and interest on the notes, 
110.24 	in accordance with section 475.61, as in the case of bonds.
110.25 	(f) Notes issued under this section shall require an affirmative vote of two-thirds of the 
110.26 	governing body of the city.
110.27 	(g) Notwithstanding a contrary provision of other law or charter, a home rule charter 
110.28 	city may also issue capital notes subject to its debt limit in the manner and subject to the 
110.29 	limitations applicable to statutory cities pursuant to section 412.301.

111.1 	Sec. 6. Minnesota Statutes 2020, section 412.301, is amended to read:
111.2 	412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
111.3 	(a) The council may issue certificates of indebtedness or capital notes subject to the city 
111.4 	debt limits to purchase capital equipment.
111.5 	(b) For purposes of this section, "capital equipment" means:
111.6 	(1) public safety equipment, ambulance and other medical equipment, road construction 
111.7 	and maintenance equipment, and other capital equipment; and
111.8 	(2) computer hardware and software, whether bundled with machinery or equipment or 
111.9 	unbundled, together with application development services and training related to the use 
111.10 	of the computer hardware or software.
111.11 	(c) The equipment or software must have an expected useful life at least as long as the 
111.12 	terms of the certificates or notes.
111.13 	(d) Such certificates or notes shall be payable in not more than ten 20 years and shall 
111.14 	be issued on such the terms and in such the manner as determined by the council may 
111.15 	determine, provided, however, that notes issued for projects that eliminate R-22, as defined 
111.16 	in section 240A.09, paragraph (b), clause (2), must be payable in not more than 20 years.
111.17 	(e) If the amount of the certificates or notes to be issued to finance any such purchase 
111.18 	exceeds 0.25 percent of the estimated market value of taxable property in the city, they shall 
111.19 	not be issued for at least ten days after publication in the official newspaper of a council 
111.20 	resolution determining to issue them; and if before the end of that time, a petition asking 
111.21 	for an election on the proposition signed by voters equal to ten percent of the number of 
111.22 	voters at the last regular municipal election is filed with the clerk, such certificates or notes 
111.23 	shall not be issued until the proposition of their issuance has been approved by a majority 
111.24 	of the votes cast on the question at a regular or special election.
111.25 	(f) A tax levy shall be made for the payment of the principal and interest on such 
111.26 	certificates or notes, in accordance with section 475.61, as in the case of bonds.

111.27 	ARTICLE 7
111.28 	LOCAL SALES TAXES

111.29 	Section 1. Minnesota Statutes 2020, section 297A.99, subdivision 3, is amended to read:
111.30 		Subd. 3.Legislative authority required before voter approval; requirements for 
111.31 	adoption, use, termination. (a) A political subdivision must receive legislative authority 
111.32 	to impose a local sales tax before submitting the tax for approval by voters of the political 
112.1 	subdivision. Imposition of a local sales tax is subject to approval by voters of the political 
112.2 	subdivision at a general election. The election must be conducted at a general election within 
112.3 	the two-year period after the governing body of the political subdivision has received 
112.4 	authority to impose the tax. If the authorizing legislation allows the tax to be imposed for 
112.5 	more than one project, there must be the political subdivision is not required to present each 
112.6 	project on the ballot. The political subdivision may present a separate question approving 
112.7 	the use of the tax revenue for each project. Regardless of whether the ballot presents a 
112.8 	separate question for each project, the question must state the project or projects proposed 
112.9 	to be funded with the tax, the amount for each project proposed to be funded with the tax, 
112.10 	and the estimated length of time the tax will be in effect. Notwithstanding the authorizing 
112.11 	legislation, a project that is not approved by the voters may not be funded with the local 
112.12 	sales tax revenue and the termination date of the tax set in the authorizing legislation must 
112.13 	be reduced proportionately based on the share of that project's cost to the total costs of all 
112.14 	projects included in the authorizing legislation.
112.15 	(b) The proceeds of the tax must be dedicated exclusively to payment of the construction 
112.16 	and rehabilitation costs and associated bonding costs related to the specific capital 
112.17 	improvement projects that were approved by the voters under paragraph (a).
112.18 	(c) The tax must terminate after the revenues raised are sufficient to fund the projects 
112.19 	approved by the voters under paragraph (a).
112.20 	(d) After a sales tax imposed by a political subdivision has expired or been terminated, 
112.21 	the political subdivision is prohibited from imposing a local sales tax for a period of one 
112.22 	year.
112.23 	(e) Notwithstanding paragraph (a), if a political subdivision received voter approval to 
112.24 	seek authority for a local sales tax at the November 6, 2018, general election and is granted 
112.25 	authority to impose a local sales tax before January 1, 2021, the tax may be imposed without 
112.26 	an additional referendum provided that it meets the requirements of subdivision 2 and the 
112.27 	list of specific projects contained in the resolution does not conflict with the projects listed 
112.28 	in the approving referendum.
112.29 	(f) If a tax is terminated because sufficient revenues have been raised, any amount of 
112.30 	tax collected under subdivision 9, after sufficient revenues have been raised and before the 
112.31 	quarterly termination required under subdivision 12, paragraph (a), that is greater than the 
112.32 	average quarterly revenues collected over the immediately preceding 12 calendar months 
112.33 	must be retained by the commissioner for deposit in the general fund.

113.1 	EFFECTIVE DATE. This section is effective for local sales taxes authorized in Laws 
113.2 	2021, First Special Session chapter 14, article 8, and thereafter.

113.3 	Sec. 2. Minnesota Statutes 2020, section 469.190, subdivision 7, is amended to read:
113.4 		Subd. 7.Collection. The statutory or home rule charter city, town, or county when the 
113.5 	county board is acting as a town board with respect to an unorganized territory may agree 
113.6 	with the commissioner of revenue that a tax imposed pursuant to this section shall be 
113.7 	collected by the commissioner together with the tax imposed by chapter 297A, and subject 
113.8 	to the same interest, penalties, and other rules and that its proceeds, less the cost of collection, 
113.9 	shall be remitted to the city.

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

113.11 	Sec. 3. Laws 1998, chapter 389, article 8, section 43, as amended by Laws 2005, First 
113.12 	Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session 
113.13 	chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections 
113.14 	11, 12, and 13, is amended by adding a subdivision to read:
113.15 		Subd. 1a.Authorization; extension. Notwithstanding Minnesota Statutes, section 
113.16 	477A.016, or any other law, ordinance, or city charter, and if approved by the voters at a 
113.17 	general election as required under Minnesota Statutes, section 297A.99, subdivision 3, the 
113.18 	city of Rochester may extend the sales and use tax of one-half of one percent authorized 
113.19 	under subdivision 1, paragraph (a), for the purposes specified in subdivision 3a. Except as 
113.20 	otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, 
113.21 	govern the imposition, administration, collection, and enforcement of the tax authorized 
113.22 	under this subdivision. The tax imposed under this subdivision is in addition to any local 
113.23 	sales and use tax imposed under any other special law.

113.24 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
113.25 	city of Rochester and its chief clerical officer comply with Minnesota Statutes, section 
113.26 	645.021, subdivisions 2 and 3.

113.27 	Sec. 4. Laws 1998, chapter 389, article 8, section 43, as amended by Laws 2005, First 
113.28 	Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session 
113.29 	chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections 
113.30 	11, 12, and 13, is amended by adding a subdivision to read:
113.31 		Subd. 3a.Use of sales and use tax revenues; additional projects. The revenues derived 
113.32 	from the extension of the tax authorized under subdivision 1a must be used by the city of 
114.1 	Rochester to pay the costs of collecting and administering the tax and paying for the following 
114.2 	projects in the city, including securing and paying debt service on bonds issued to finance 
114.3 	all or part of the following projects:
114.4 	(1) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d), 
114.5 	$50,000,000, plus associated bonding costs for the housing vitality fund;
114.6 	(2) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d), 
114.7 	$50,000,000, plus associated bonding costs for street reconstruction;
114.8 	(3) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d), 
114.9 	$40,000,000, plus associated bonding costs for flood control and water quality; and
114.10 	(4) $65,000,000, plus associated bonding costs for a Regional Community and Recreation 
114.11 	Complex.

114.12 	EFFECTIVE DATE. This section is effective the day after compliance by the governing 
114.13 	body of the city of Rochester with Minnesota Statutes, section 645.021.

114.14 	Sec. 5. Laws 1998, chapter 389, article 8, section 43, as amended by Laws 2005, First 
114.15 	Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session 
114.16 	chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections 
114.17 	11, 12, and 13, is amended by adding a subdivision to read:
114.18 		Subd. 4a.Bonding authority; additional projects and extension of tax. (a) The city 
114.19 	of Rochester may issue bonds under Minnesota Statutes, chapter 475, to finance all or a 
114.20 	portion of the costs of the projects authorized in subdivision 3a and approved by the voters 
114.21 	as required under Minnesota Statutes, section 297A.99, subdivision 3, paragraph (a). The 
114.22 	aggregate principal amount of bonds issued under this subdivision may not exceed 
114.23 	$205,000,000 for the projects described in subdivision 3a, plus an amount to be applied to 
114.24 	the payment of the costs of issuing the bonds.
114.25 	(b) The bonds may be paid from or secured by any funds available to the city of 
114.26 	Rochester, including the tax authorized under subdivision 1a and the full faith and credit 
114.27 	of the city. The issuance of bonds under this subdivision is not subject to Minnesota Statutes, 
114.28 	sections 275.60 and 275.61.
114.29 	(c) The bonds are not included in computing any debt limitation applicable to the city 
114.30 	of Rochester, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
114.31 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
114.32 	the bonds under Minnesota Statutes, section 475.58, is not required.

115.1 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
115.2 	city of Rochester and its chief clerical officer comply with Minnesota Statutes, section 
115.3 	645.021, subdivisions 2 and 3.

115.4 	Sec. 6. Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by Laws 
115.5 	2005, First Special Session chapter 3, article 5, section 30, Laws 2011, First Special Session 
115.6 	chapter 7, article 4, section 7, and Laws 2013, chapter 143, article 10, section 13, is amended 
115.7 	to read:
115.8 		Subd. 5.Termination of taxes. (a) The taxes imposed under subdivisions 1 and 2 expire 
115.9 	at the later of (1) December 31, 2009, or (2) when the city council determines that sufficient 
115.10 	funds have been received from the taxes to finance the first $71,500,000 of capital 
115.11 	expenditures and bonds for the projects authorized in subdivision 3, including the amount 
115.12 	to prepay or retire at maturity the principal, interest, and premium due on any bonds issued 
115.13 	for the projects under subdivision 4, unless the taxes are extended as allowed in paragraph 
115.14 	(b). Any funds remaining after completion of the project and retirement or redemption of 
115.15 	the bonds shall also be used to fund the projects under subdivision 3. The taxes imposed 
115.16 	under subdivisions 1 and 2 may expire at an earlier time if the city so determines by 
115.17 	ordinance.
115.18 	(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other 
115.19 	contrary provision of law, ordinance, or city charter, the city of Rochester may, by ordinance, 
115.20 	extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009, if approved 
115.21 	by the voters of the city at a special election in 2005 or the general election in 2006. The 
115.22 	question put to the voters must indicate that an affirmative vote would allow up to an 
115.23 	additional $40,000,000 of sales tax revenues be raised and up to $40,000,000 of bonds to 
115.24 	be issued above the amount authorized in the June 23, 1998, referendum for the projects 
115.25 	specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are extended under 
115.26 	this paragraph, the taxes expire when the city council determines that sufficient funds have 
115.27 	been received from the taxes to finance the projects and to prepay or retire at maturity the 
115.28 	principal, interest, and premium due on any bonds issued for the projects under subdivision 
115.29 	4. Any funds remaining after completion of the project and retirement or redemption of the 
115.30 	bonds may be placed in the general fund of the city.
115.31 	(c) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other 
115.32 	contrary provision of law, ordinance, or city charter, the city of Rochester may, by ordinance, 
115.33 	extend the taxes authorized in subdivisions 1, paragraph (a), and 2, up to December 31, 
115.34 	2049, provided that all additional revenues above those necessary to fund the projects and 
116.1 	associated financing costs listed in subdivision 3, paragraphs (a) to (e), are committed to 
116.2 	fund public infrastructure projects contained in the development plan adopted under 
116.3 	Minnesota Statutes, section 469.43, including all financing costs; otherwise the taxes 
116.4 	terminate when the city council determines that sufficient funds have been received from 
116.5 	the taxes to finance expenditures and bonds for the projects authorized in subdivision 3, 
116.6 	paragraphs (a) to (e), plus an amount equal to the costs of issuance of the bonds and including 
116.7 	the amount to prepay or retire at maturity the principal, interest, and premiums due on any 
116.8 	bonds issued for the projects under subdivision 4.
116.9 	(d) The tax imposed under subdivision 1, paragraph (b), expires at the earlier of December 
116.10 	31, 2049, or when the city council determines that sufficient funds have been raised from 
116.11 	the tax plus all other city funding sources authorized in this article to meet the city obligation 
116.12 	for financing the public infrastructure projects contained in the development plan adopted 
116.13 	under Minnesota Statutes, section 469.43, including all financing costs.
116.14 	(e) The tax imposed under subdivision 1a expires at the earlier of (1) 16-1/2 years after 
116.15 	first imposed, or (2) when the city council determines that the amount of revenues received 
116.16 	from the tax is sufficient to pay for the project costs authorized under subdivision 3a for 
116.17 	projects approved by the voters as required under Minnesota Statutes, section 297A.99, 
116.18 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
116.19 	of the bonds under subdivision 4a, including interest on the bonds. Except as otherwise 
116.20 	provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds 
116.21 	remaining after payment of the allowed costs due to the timing of the termination of the tax 
116.22 	under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general 
116.23 	fund of the city. The tax imposed under subdivision 1a may expire at an earlier time if the 
116.24 	city so determines by ordinance.

116.25 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
116.26 	city of Rochester and its chief clerical officer comply with Minnesota Statutes, section 
116.27 	645.021, subdivisions 2 and 3.

116.28 	Sec. 7. Laws 2008, chapter 366, article 7, section 17, is amended to read:
116.29 	Sec. 17. COOK COUNTY; LODGING AND ADMISSIONS TAXES TAX.
 116.30 		Subdivision 1.Lodging tax. Notwithstanding Minnesota Statutes, section 477A.016, 
116.31 	or any other provision of law, ordinance, or city charter, the Board of Commissioners of 
116.32 	Cook County may impose, by ordinance, a tax of up to one percent on the gross receipts 
116.33 	subject to the lodging tax under Minnesota Statutes, section 469.190. This tax is in addition 
117.1 	to any tax imposed under Minnesota Statutes, section 469.190, and the total tax imposed 
117.2 	under that section and this provision must not exceed four percent.
117.3 		Subd. 2.Admissions and recreation tax. Notwithstanding Minnesota Statutes, section 
117.4 	477A.016, or any other provision of law, ordinance, or city charter, the Board of 
117.5 	Commissioners of Cook County may impose, by ordinance, a tax of up to three percent on 
117.6 	admissions to entertainment and recreational facilities and rental of recreation equipment.
117.7 		Subd. 3.Use of taxes. The taxes tax imposed in subdivisions subdivision 1 and 2 must 
117.8 	be used to fund a new Cook County Event and Visitors Bureau as established by the Board 
117.9 	of Commissioners of Cook County. The Board of Commissioners of Cook County must 
117.10 	annually review the budget of the Cook County Event and Visitors Bureau. The event and 
117.11 	visitors bureau may not receive revenues raised from the taxes tax imposed in subdivisions
117.12 	subdivision 1 and 2 until the board of commissioners approves the annual budget.
117.13 		Subd. 4.Termination. The taxes tax imposed in subdivisions subdivision 1 and 2
117.14 	terminate 15 terminates 30 years after they are it is first imposed.

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

117.16 	Sec. 8. Laws 2011, First Special Session chapter 7, article 4, section 14, is amended to 
117.17 	read:
117.18 	Sec. 14. CITY OF MARSHALL; SALES AND USE TAX.
 117.19 		Subdivision 1.Authorization. Notwithstanding Minnesota Statutes, section 297A.99, 
117.20 	subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city charter, the city of 
117.21 	Marshall, if approved by the voters at a general election held within two years of the date 
117.22 	of final enactment of this section, may impose the tax authorized under subdivision 2. Two 
117.23 	separate ballot questions must be presented to the voters, one for each of the two facility 
117.24 	projects named in subdivision 3.
117.25 		Subd. 2.Sales and use tax authorized. The city of Marshall may impose by ordinance 
117.26 	a sales and use tax of up to one-half of one percent for the purposes specified in subdivision 
117.27 	3. The provisions of Minnesota Statutes, section 297A.99, except subdivisions 1 and 2, 
117.28 	govern the imposition, administration, collection, and enforcement of the tax authorized 
117.29 	under this subdivision.
117.30 		Subd. 2a.Authorization; extension. Notwithstanding Minnesota Statutes, section 
117.31 	297A.99, subdivision 3, paragraph (d), or 477A.016, or any other law, ordinance, or city 
117.32 	charter, after payment of the bonds authorized under subdivision 4, and if approved by the 
118.1 	voters at a general election as required under Minnesota Statutes, section 297A.99, 
118.2 	subdivision 3, the city of Marshall may extend the sales and use tax of one-half of one 
118.3 	percent authorized under subdivision 2 for the purposes specified in subdivision 3a. Except 
118.4 	as otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, 
118.5 	govern the imposition, administration, collection, and enforcement of the tax authorized 
118.6 	under this subdivision. The tax imposed under this subdivision is in addition to any local 
118.7 	sales and use tax imposed under any other special law.
118.8 		Subd. 3.Use of sales and use tax revenues. The revenues derived from the tax authorized 
118.9 	under subdivision 2 must be used by the city of Marshall to pay the costs of collecting and 
118.10 	administering the sales and use tax and to pay all or part of the costs of the new and existing 
118.11 	facilities of the Minnesota Emergency Response and Industry Training Center and all or 
118.12 	part of the costs of the new facilities of the Southwest Minnesota Regional Amateur Sports 
118.13 	Center. Authorized expenses include, but are not limited to, acquiring property, predesign, 
118.14 	design, and paying construction, furnishing, and equipment costs related to these facilities 
118.15 	and paying debt service on bonds or other obligations issued by the city of Marshall under 
118.16 	subdivision 4 to finance the capital costs of these facilities.
118.17 		Subd. 3a.Use of sales and use tax revenues; aquatic center. The revenues derived 
118.18 	from the extension of the tax authorized under subdivision 2a must be used by the city of 
118.19 	Marshall to pay the costs of collecting and administering the tax and paying for $16,000,000 
118.20 	plus associated bonding costs for the construction of a new municipal aquatic center in the 
118.21 	city, including securing and paying debt service on bonds issued to finance the project.
118.22 		Subd. 4.Bonds. (a) If the imposition of a sales and use tax is approved by the voters, 
118.23 	the city of Marshall may issue bonds under Minnesota Statutes, chapter 475, to finance all 
118.24 	or a portion of the costs of the facilities authorized in subdivision 3, and may issue bonds 
118.25 	to refund bonds previously issued. The aggregate principal amount of bonds issued under 
118.26 	this subdivision may not exceed $17,290,000, plus an amount to be applied to the payment 
118.27 	of the costs of issuing the bonds. The bonds may be paid from or secured by any funds 
118.28 	available to the city of Marshall, including the tax authorized under subdivision 2.
118.29 	(b) The bonds are not included in computing any debt limitation applicable to the city 
118.30 	of Marshall, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
118.31 	and interest on the bonds, is not subject to any levy limitation. A separate election to approve 
118.32 	the bonds under Minnesota Statutes, section 475.58, is not required.
118.33 		Subd. 4a.Bonds; additional use and extension of tax. (a) After payment of the bonds 
118.34 	authorized under subdivision 4, the city of Marshall may issue bonds under Minnesota 
119.1 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
119.2 	subdivision 2a and approved by the voters as required under Minnesota Statutes, section 
119.3 	297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued 
119.4 	under this subdivision may not exceed $16,000,000, plus an amount to be applied to the 
119.5 	payment of the costs of issuing the bonds.
119.6 	(b) The bonds may be paid from or secured by any funds available to the city of Marshall, 
119.7 	including the tax authorized under subdivision 2a. The issuance of bonds under this 
119.8 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
119.9 	(c) The bonds are not included in computing any debt limitation applicable to the city 
119.10 	of Marshall, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
119.11 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
119.12 	the bonds under Minnesota Statutes, section 475.58, is not required.
119.13 		Subd. 5.Termination of taxes. (a) The tax imposed under subdivision 2 expires at the 
119.14 	earlier of (1) 15 years after the tax is first imposed, or (2) when the city council determines 
119.15 	that the amount of revenues received from the tax to pay for the capital and administrative 
119.16 	costs of the facilities under subdivision 3 first equals or exceeds the amount authorized to 
119.17 	be spent for the facilities plus the additional amount needed to pay the costs related to 
119.18 	issuance of the bonds under subdivision 4, including interest on the bonds. Any funds 
119.19 	remaining after payment of all such costs and retirement or redemption of the bonds shall 
119.20 	be placed in the general fund of the city. The tax imposed under subdivision 2 may expire 
119.21 	at an earlier time if the city so determines by ordinance.
119.22 	(b) The tax imposed under subdivision 2a expires at the earlier of (1) 30 years after the 
119.23 	tax under subdivision 2 is first imposed, or (2) when the city council determines that the 
119.24 	amount of revenues received from the tax is sufficient to pay for the project costs authorized 
119.25 	under subdivision 3a for the project approved by the voters as required under Minnesota 
119.26 	Statutes, section 297A.99, subdivision 3, paragraph (a), plus an amount sufficient to pay 
119.27 	the costs related to issuance of the bonds under subdivision 4a, including interest on the 
119.28 	bonds. Except as otherwise provided in Minnesota Statutes, section 297A.99, subdivision 
119.29 	3, paragraph (f), any funds remaining after payment of the allowed costs due to the timing 
119.30 	of the termination of the tax under Minnesota Statutes, section 297A.99, subdivision 12, 
119.31 	shall be placed in the general fund of the city. The tax imposed under subdivision 2a may 
119.32 	expire at an earlier time if the city so determines by ordinance.

120.1 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
120.2 	city of Marshall and its chief clerical officer comply with Minnesota Statutes, section 
120.3 	645.021, subdivisions 2 and 3.

120.4 	Sec. 9. Laws 2021, First Special Session chapter 14, article 8, section 14, subdivision 4, 
120.5 	is amended to read:
120.6 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
120.7 	earlier of: (1) 22 30 years after the tax is first imposed; or (2) when the city council 
120.8 	determines that the amount received from the tax is sufficient to pay for the project costs 
120.9 	authorized under subdivision 2 for the project approved by voters as required under 
120.10 	Minnesota Statutes, section 297A.99, subdivision 3, paragraph (a), plus an amount sufficient 
120.11 	to pay the costs related to issuance of any bonds authorized under subdivision 3, including 
120.12 	interest on the bonds. Except as otherwise provided in Minnesota Statutes, section 297A.99, 
120.13 	subdivision 3, paragraph (f), any funds remaining after payment of allowed costs due to the 
120.14 	timing of the termination of the tax under Minnesota Statutes, section 297A.99, subdivision 
120.15 	12, shall be placed in the general fund of the city. The tax imposed under subdivision 1 may 
120.16 	expire at an earlier time if the city so determines by ordinance.

120.17 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
120.18 	city of Moorhead and its chief clerical officer comply with Minnesota Statutes, section 
120.19 	645.021, subdivisions 2 and 3.

120.20 	Sec. 10. Laws 2021, First Special Session chapter 14, article 8, section 15, is amended to 
120.21 	read:
120.22 	Sec. 15. CITY OF OAKDALE; TAXES AUTHORIZED.
 120.23 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
120.24 	section 477A.016, or any other ordinance or city charter, and if approved by the voters at 
120.25 	a general election as required under Minnesota Statutes, section 297A.99, subdivision 3, 
120.26 	the city of Oakdale may impose, by ordinance, a sales and use tax of one-half of one percent 
120.27 	for the purposes specified in subdivision 2. Except as otherwise provided in this section, 
120.28 	the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
120.29 	collection, and enforcement of the tax authorized under this subdivision. The tax imposed 
120.30 	under this subdivision is in addition to any local sales and use tax imposed under any other 
120.31 	special law.
121.1 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
121.2 	under subdivision 1 must be used by the city of Oakdale to pay the costs of collecting and 
121.3 	administering the tax and paying for the following projects in the city, including securing 
121.4 	and paying debt service on bonds issued to finance all or part of the following projects:
121.5 	(1) $22,000,000 plus associated bonding costs for construction of a new public works 
121.6 	facility; and
121.7 	(2) $15,000,000 plus associated bonding costs for construction and rehabilitation, and 
121.8 	associated building costs of the police department facility.
121.9 		Subd. 3.Bonding authority. (a) The city of Oakdale may issue bonds under Minnesota 
121.10 	Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in 
121.11 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
121.12 	not exceed: (1) $22,000,000 for the project listed in subdivision 2, clause (1), plus an amount 
121.13 	applied to the payment of costs of issuing the bonds; and (2) $15,000,000 for the projects 
121.14 	listed in subdivision 2, clause (2), plus an amount applied to the payment of costs of issuing 
121.15 	the bonds. The bonds may be paid from or secured by any funds available to the city of 
121.16 	Oakdale, including the tax authorized under subdivision 1. The issuance of bonds under 
121.17 	this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
121.18 	(b) The bonds are not included in computing any debt limitation applicable to the city. 
121.19 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
121.20 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
121.21 	under Minnesota Statutes, section 475.58, is not required.
121.22 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
121.23 	earlier of: (1) 25 30 years after the tax is first imposed; or (2) when the city council 
121.24 	determines that the city has received from this tax $37,000,000 to fund the projects listed 
121.25 	in subdivision 2, plus an amount sufficient to pay costs related to issuance of any bonds 
121.26 	authorized in subdivision 3, including interest on the bonds. Except as otherwise provided 
121.27 	under Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining 
121.28 	after payment of the allowed costs due to timing of the termination under Minnesota Statutes, 
121.29 	section 297A.99, shall be placed in the city's general fund. The tax imposed under subdivision 
121.30 	1 may expire at an earlier time if the city so determines by ordinance.

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

122.1 	Sec. 11. Laws 2021, First Special Session chapter 14, article 8, section 20, subdivision 2, 
122.2 	is amended to read:
122.3 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
122.4 	under subdivision 1 must be used by the city of Waite Park to pay the costs of collecting 
122.5 	and administering the tax and for the following projects in the city, including securing and 
122.6 	paying debt service on bonds issued to finance all or part of the following projects:
122.7 	(1) up to $7,500,000 plus associated bonding costs for regional trail connections; and
122.8 	(2) up to $20,000,000 plus associated bonding costs for construction and equipping of 
122.9 	a public safety facility; and
122.10 	(3) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d), 
122.11 	up to $15,500,000 plus associated bonding costs for the 10th Avenue regional corridor 
122.12 	project.

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

122.16 	Sec. 12. Laws 2021, First Special Session chapter 14, article 8, section 20, subdivision 3, 
122.17 	is amended to read:
122.18 		Subd. 3.Bonding authority. (a) The city of Waite Park may issue bonds under Minnesota 
122.19 	Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in 
122.20 	subdivision 2 and approved by the voters as required under Minnesota Statutes, section 
122.21 	297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued 
122.22 	under this subdivision may not exceed:
122.23 	(1) $7,500,000 $43,000,000 for the project projects listed in subdivision 2, clause (1),
122.24 	plus an amount needed to pay capitalized interest and an amount to be applied to the payment 
122.25 	of the costs of issuing the bonds; and
122.26 	(2) $20,000,000 for the project listed in subdivision 2, clause (2), plus an amount needed 
122.27 	to pay capitalized interest and an amount to be applied to the payment of the costs of issuing 
122.28 	the bonds.
122.29 	(b) The bonds may be paid from or secured by any funds available to the city of Waite 
122.30 	Park, including the tax authorized under subdivision 1. The issuance of bonds under this 
122.31 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
123.1 	(b) (c) The bonds are not included in computing any debt limitation applicable to the 
123.2 	city of Waite Park, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
123.3 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
123.4 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.

123.5 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
123.6 	city of Waite Park and its chief clerical officer comply with Minnesota Statutes, section 
123.7 	645.021, subdivisions 2 and 3.

123.8 	Sec. 13. Laws 2021, First Special Session chapter 14, article 8, section 20, subdivision 4, 
123.9 	is amended to read:
123.10 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
123.11 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 19 20 years 
123.12 	after the tax is first imposed, or (2) when the city council determines that the amount received 
123.13 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
123.14 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
123.15 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
123.16 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
123.17 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
123.18 	any funds remaining after payment of the allowed costs due to the timing of the termination 
123.19 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
123.20 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
123.21 	if the city so determines by ordinance.

123.22 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
123.23 	city of Waite Park and its chief clerical officer comply with Minnesota Statutes, section 
123.24 	645.021, subdivisions 2 and 3.

123.25 	Sec. 14. CITY OF AITKIN; TAXES AUTHORIZED.
 123.26 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
123.27 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
123.28 	at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3, 
123.29 	the city of Aitkin may impose by ordinance a sales and use tax of one percent for the purposes 
123.30 	specified in subdivision 2. Except as otherwise provided in this section, the provisions of 
123.31 	Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and 
123.32 	enforcement of the tax authorized under this subdivision. The tax imposed under this 
124.1 	subdivision is in addition to any local sales and use tax imposed under any other special 
124.2 	law.
124.3 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
124.4 	under subdivision 1 must be used by the city of Aitkin to pay the costs of collecting and 
124.5 	administering the tax and paying for the following projects in the city, including securing 
124.6 	and paying debt service on bonds issued to finance all or part of the following projects:
124.7 	(1) $8,300,000 plus associated bonding costs for construction of a new municipal 
124.8 	building; and
124.9 	(2) $1,000,000 plus associated bonding costs for improvements to parks and trails.
124.10 		Subd. 3.Bonding authority. (a) The city of Aitkin may issue bonds under Minnesota 
124.11 	Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in 
124.12 	subdivision 2 and approved by the voters as required under Minnesota Statutes, section 
124.13 	297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued 
124.14 	under this subdivision may not exceed $9,300,000 for the projects listed in subdivision 2, 
124.15 	plus an amount to be applied to the payment of the costs of issuing the bonds.
124.16 	(b) The bonds may be paid from or secured by any funds available to the city of Aitkin, 
124.17 	including the tax authorized under subdivision 1. The issuance of bonds under this 
124.18 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
124.19 	(c) The bonds are not included in computing any debt limitation applicable to the city 
124.20 	of Aitkin, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
124.21 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
124.22 	the bonds under Minnesota Statutes, section 475.58, is not required.
124.23 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
124.24 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 19 years 
124.25 	after being first imposed, or (2) when the city council determines that the amount received 
124.26 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
124.27 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
124.28 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
124.29 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
124.30 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
124.31 	any funds remaining after payment of the allowed costs due to the timing of the termination 
124.32 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
124.33 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
124.34 	if the city so determines by ordinance.

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

125.4 	Sec. 15. CITY OF BLACKDUCK; TAXES AUTHORIZED.
 125.5 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
125.6 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
125.7 	at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3, 
125.8 	the city of Blackduck may impose by ordinance a sales and use tax of one-half of one percent 
125.9 	for the purposes specified in subdivision 2. Except as otherwise provided in this section, 
125.10 	the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
125.11 	collection, and enforcement of the tax authorized under this subdivision. The tax imposed 
125.12 	under this subdivision is in addition to any local sales and use tax imposed under any other 
125.13 	special law.
125.14 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
125.15 	under subdivision 1 must be used by the city of Blackduck to pay the costs of collecting 
125.16 	and administering the tax and paying for the following projects in the city, including securing 
125.17 	and paying debt service on bonds issued to finance all or part of the following projects:
125.18 	(1) $200,000 plus associated bonding costs for improvements to a city campground;
125.19 	(2) $300,000 plus associated bonding costs for improvements to a walking trail;
125.20 	(3) $250,000 plus associated bonding costs for improvements to a wayside rest;
125.21 	(4) $150,000 plus associated bonding costs for golf course irrigation improvements; and
125.22 	(5) $100,000 plus associated bonding costs for reconstruction of a library.
125.23 		Subd. 3.Bonding authority. (a) The city of Blackduck may issue bonds under Minnesota 
125.24 	Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in 
125.25 	subdivision 2 and approved by the voters as required under Minnesota Statutes, section 
125.26 	297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued 
125.27 	under this subdivision may not exceed $1,000,000 for the projects listed in subdivision 2, 
125.28 	plus an amount to be applied to the payment of the costs of issuing the bonds.
125.29 	(b) The bonds may be paid from or secured by any funds available to the city of 
125.30 	Blackduck, including the tax authorized under subdivision 1. The issuance of bonds under 
125.31 	this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
126.1 	(c) The bonds are not included in computing any debt limitation applicable to the city 
126.2 	of Blackduck, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
126.3 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
126.4 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
126.5 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
126.6 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years 
126.7 	after being first imposed, or (2) when the city council determines that the amount received 
126.8 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
126.9 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
126.10 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
126.11 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
126.12 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
126.13 	any funds remaining after payment of the allowed costs due to the timing of the termination 
126.14 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
126.15 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
126.16 	if the city so determines by ordinance.

126.17 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
126.18 	city of Blackduck and its chief clerical officer comply with Minnesota Statutes, section 
126.19 	645.021, subdivisions 2 and 3.

126.20 	Sec. 16. CITY OF BLOOMINGTON; TAXES AUTHORIZED.
 126.21 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
126.22 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
126.23 	at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3, 
126.24 	the city of Bloomington may impose by ordinance a sales and use tax of one-half of one 
126.25 	percent for the purposes specified in subdivision 2. Except as otherwise provided in this 
126.26 	section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
126.27 	administration, collection, and enforcement of the tax authorized under this subdivision. 
126.28 	The tax imposed under this subdivision is in addition to any local sales and use tax imposed 
126.29 	under any other special law.
126.30 		Subd. 2.Use of sales and use tax revenues. (a) The revenues derived from the tax 
126.31 	authorized under subdivision 1 must be used by the city of Bloomington to pay the costs of 
126.32 	collecting and administering the tax and paying for the following projects in the city, 
126.33 	including securing and paying debt service on bonds issued to finance all or part of the 
126.34 	following projects:
127.1 	(1) $32,000,000 plus associated bonding costs for construction of improvements and 
127.2 	rehabilitation of the Bloomington Ice Garden and associated infrastructure;
127.3 	(2) $70,000,000 plus associated bonding costs for construction of a new Community 
127.4 	Health and Wellness Center and associated infrastructure;
127.5 	(3) $33,000,000 plus associated bonding costs for construction of an expansion to the 
127.6 	Bloomington Center for the Arts Concert Hall and associated infrastructure; and
127.7 	(4) $15,000,000 plus associated bonding costs for construction of and improvements to 
127.8 	the Dwan Golf Course and associated infrastructure.
127.9 	(b)(1) For purposes of this subdivision, "associated infrastructure" includes any or all 
127.10 	of the following activities: demolition, reconstruction, expansion, improvement, construction, 
127.11 	or rehabilitation, related to the existing facility or the new project, or both.
127.12 	(2) Associated infrastructure activities described in clause (1) include but are not limited 
127.13 	to the following activities associated with the capital project or projects that are needed for 
127.14 	safe access or use: facilities, roads, lighting, sidewalks, parking, landscaping, or utilities.
127.15 	(3) Costs include all the costs associated with delivering the projects.
127.16 		Subd. 3.Bonding authority. (a) The city of Bloomington may issue bonds under 
127.17 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities 
127.18 	authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes, 
127.19 	section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds 
127.20 	issued under this subdivision may not exceed $150,000,000 for the projects listed in 
127.21 	subdivision 2, plus an amount to be applied to the payment of the costs of issuing the bonds.
127.22 	(b) The bonds may be paid from or secured by any funds available to the city of 
127.23 	Bloomington, including the tax authorized under subdivision 1. The issuance of bonds under 
127.24 	this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
127.25 	(c) The bonds are not included in computing any debt limitation applicable to the city 
127.26 	of Bloomington, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
127.27 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
127.28 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
127.29 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
127.30 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years 
127.31 	after being first imposed, or (2) when the city council determines that the amount received 
127.32 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
127.33 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
128.1 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
128.2 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
128.3 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
128.4 	any funds remaining after payment of the allowed costs due to the timing of the termination 
128.5 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
128.6 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
128.7 	if the city so determines by ordinance.

128.8 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
128.9 	city of Bloomington and its chief clerical officer comply with Minnesota Statutes, section 
128.10 	645.021, subdivisions 2 and 3.

128.11 	Sec. 17. CITY OF BROOKLYN CENTER; TAXES AUTHORIZED.
 128.12 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
128.13 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
128.14 	at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3, 
128.15 	the city of Brooklyn Center may impose by ordinance a sales and use tax of one-half of one 
128.16 	percent for the purposes specified in subdivision 2. Except as otherwise provided in this 
128.17 	section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
128.18 	administration, collection, and enforcement of the tax authorized under this subdivision. 
128.19 	The tax imposed under this subdivision is in addition to any local sales and use tax imposed 
128.20 	under any other special law.
128.21 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
128.22 	under subdivision 1 must be used by the city of Brooklyn Center to pay the costs of collecting 
128.23 	and administering the tax and to finance up to $55,000,000, plus associated bonding costs, 
128.24 	for the renovation and expansion of the Brooklyn Center Community Center.
128.25 		Subd. 3.Bonding authority. (a) The city of Brooklyn Center may issue bonds under 
128.26 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities 
128.27 	authorized in subdivision 2. The aggregate principal amount of bonds issued under this 
128.28 	subdivision may not exceed $55,000,000 plus an amount to be applied to the payment of 
128.29 	the costs of issuing the bonds.
128.30 	(b) The bonds may be paid from or secured by any funds available to the city of Brooklyn 
128.31 	Center, including the tax authorized under subdivision 1 and the full faith and credit of the 
128.32 	city. The issuance of bonds under this subdivision is not subject to Minnesota Statutes, 
128.33 	sections 275.60 and 275.61.
129.1 	(c) The bonds are not included in computing any debt limitation applicable to the city 
129.2 	of Brooklyn Center and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
129.3 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
129.4 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
129.5 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
129.6 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years 
129.7 	after being first imposed, or (2) when the city council determines that the amount received 
129.8 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
129.9 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
129.10 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
129.11 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
129.12 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
129.13 	any funds remaining after payment of the allowed costs due to the timing of the termination 
129.14 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
129.15 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
129.16 	if the city so determines by ordinance.

129.17 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
129.18 	city of Brooklyn Center and its chief clerical officer comply with Minnesota Statutes, section 
129.19 	645.021, subdivisions 2 and 3.

129.20 	Sec. 18. CITY OF EAST GRAND FORKS; TAXES AUTHORIZED.
 129.21 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
129.22 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
129.23 	at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3, 
129.24 	the city of East Grand Forks may impose by ordinance a sales and use tax of 1.25 percent 
129.25 	for the purposes specified in subdivision 2. Except as otherwise provided in this section, 
129.26 	the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
129.27 	collection, and enforcement of the tax authorized under this subdivision. The tax imposed 
129.28 	under this subdivision is in addition to any local sales and use tax imposed under any other 
129.29 	special law.
129.30 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
129.31 	under subdivision 1 must be used by the city of East Grand Forks to pay the costs of 
129.32 	collecting and administering the tax and paying for the following projects in the city, 
129.33 	including securing and paying debt service on bonds issued to finance all or part of the 
129.34 	following projects:
130.1 	(1) $15,500,000 plus associated bonding costs for reconstruction and remodeling of, 
130.2 	and upgrades and additions to, the Civic Center Sports Complex; and
130.3 	(2) $6,000,000 plus associated bonding costs for reconstruction and remodeling of, and 
130.4 	upgrades and additions to, the VFW Memorial and Blue Line Arena.
130.5 		Subd. 3.Bonding authority. (a) The city of East Grand Forks may issue bonds under 
130.6 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities 
130.7 	authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes, 
130.8 	section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds 
130.9 	issued under this subdivision may not exceed $21,000,000 for the projects listed in 
130.10 	subdivision 2, plus an amount to be applied to the payment of the costs of issuing the bonds.
130.11 	(b) The bonds may be paid from or secured by any funds available to the city of East 
130.12 	Grand Forks, including the tax authorized under subdivision 1 and the full faith and credit 
130.13 	of the city. The issuance of bonds under this subdivision is not subject to Minnesota Statutes, 
130.14 	sections 275.60 and 275.61.
130.15 	(c) The bonds are not included in computing any debt limitation applicable to the city 
130.16 	of East Grand Forks and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
130.17 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
130.18 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
130.19 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
130.20 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years 
130.21 	after being first imposed, or (2) when the city council determines that the amount received 
130.22 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
130.23 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
130.24 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
130.25 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
130.26 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
130.27 	any funds remaining after payment of the allowed costs due to the timing of the termination 
130.28 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
130.29 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
130.30 	if the city so determines by ordinance.

130.31 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
130.32 	city of East Grand Forks and its chief clerical officer comply with Minnesota Statutes, 
130.33 	section 645.021, subdivisions 2 and 3.

131.1 	Sec. 19. CITY OF GOLDEN VALLEY; TAXES AUTHORIZED.
 131.2 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
131.3 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
131.4 	at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3, 
131.5 	the city of Golden Valley may impose by ordinance a sales and use tax of three-quarters of 
131.6 	one percent for the purposes specified in subdivision 2. Except as otherwise provided in 
131.7 	this section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
131.8 	administration, collection, and enforcement of the tax authorized under this subdivision. 
131.9 	The tax imposed under this subdivision is in addition to any local sales and use tax imposed 
131.10 	under any other special law.
131.11 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
131.12 	under subdivision 1 must be used by the city of Golden Valley to pay the costs of collecting 
131.13 	and administering the tax and paying for the following projects in the city, including securing 
131.14 	and paying debt service on bonds issued to finance all or part of the following projects:
131.15 	(1) $38,000,000 plus associated bonding costs for construction of a new public works 
131.16 	facility; and
131.17 	(2) $35,000,000 plus associated bonding costs for construction of a new public safety 
131.18 	facility.
131.19 		Subd. 3.Bonding authority. (a) The city of Golden Valley may issue bonds under 
131.20 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the projects 
131.21 	authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes, 
131.22 	section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds 
131.23 	issued under this subdivision may not exceed $73,000,000 for the projects listed in 
131.24 	subdivision 2, plus an amount to be applied to the payment of the costs of issuing the bonds.
131.25 	(b) The bonds may be paid from or secured by any funds available to the city of Golden 
131.26 	Valley, including the tax authorized under subdivision 1. The issuance of bonds under this 
131.27 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
131.28 	(c) The bonds are not included in computing any debt limitation applicable to the city 
131.29 	of Golden Valley, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
131.30 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
131.31 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
131.32 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
131.33 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 30 years 
132.1 	after the tax is first imposed, or (2) when the city council determines that the amount received 
132.2 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
132.3 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
132.4 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
132.5 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
132.6 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
132.7 	any funds remaining after payment of the allowed costs due to the timing of the termination 
132.8 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the 
132.9 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
132.10 	if the city so determines by ordinance.

132.11 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
132.12 	city of Golden Valley and its chief clerical officer comply with Minnesota Statutes, section 
132.13 	645.021, subdivisions 2 and 3.

132.14 	Sec. 20. CITY OF HENDERSON; TAXES AUTHORIZED.
 132.15 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
132.16 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
132.17 	at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3, 
132.18 	the city of Henderson may impose by ordinance a sales and use tax of one-half of one percent 
132.19 	for the purposes specified in subdivision 2. Except as otherwise provided in this section, 
132.20 	the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
132.21 	collection, and enforcement of the tax authorized under this subdivision. The tax imposed 
132.22 	under this subdivision is in addition to any local sales and use tax imposed under any other 
132.23 	special law.
132.24 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
132.25 	under subdivision 1 must be used by the city of Henderson to pay the costs of collecting 
132.26 	and administering the tax, and to finance up to $240,000 plus associated bonding costs for 
132.27 	the Allanson's Park Campground and Trail project. Authorized project costs include 
132.28 	improvements to trails, improvements to the park campground and related facilities, utility 
132.29 	improvements, handicap access improvements, and other improvements related to linkage 
132.30 	to other local trails, as well as the associated bond costs for any bonds issued under 
132.31 	subdivision 3.
132.32 		Subd. 3.Bonding authority. (a) The city of Henderson may issue bonds under Minnesota 
132.33 	Statutes, chapter 475, to finance up to $240,000 of the portion of the costs of the project 
132.34 	authorized in subdivision 2, and approved by the voters as required under Minnesota Statutes, 
133.1 	section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds 
133.2 	issued under this subdivision may not exceed $240,000 plus an amount to be applied to the 
133.3 	payment of the costs of issuing the bonds.
133.4 	(b) The bonds may be paid from or secured by any funds available to the city of 
133.5 	Henderson, including the tax authorized under subdivision 1. The issuance of bonds under 
133.6 	this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
133.7 	(c) The bonds are not included in computing any debt limitation applicable to the city 
133.8 	of Henderson, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
133.9 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
133.10 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
133.11 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
133.12 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 15 years 
133.13 	after the tax is first imposed; or (2) when the city council determines that the amount received 
133.14 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
133.15 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
133.16 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
133.17 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
133.18 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
133.19 	any funds remaining after payment of the allowed costs due to the timing of the termination 
133.20 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
133.21 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
133.22 	if the city so determines by ordinance.

133.23 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
133.24 	city of Henderson and its chief clerical officer comply with Minnesota Statutes, section 
133.25 	645.021, subdivisions 2 and 3.

133.26 	Sec. 21. LAKE OF THE WOODS COUNTY LODGING TAX AUTHORIZED.
 133.27 	(a) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of 
133.28 	law, ordinance, or city charter, and subject to the limitation in paragraph (b), the Board of 
133.29 	Commissioners of Lake of the Woods County may impose, by ordinance, a tax of up to 
133.30 	three percent on gross receipts in Lake of the Woods County subject to the lodging tax 
133.31 	provisions under Minnesota Statutes, section 469.190.
133.32 	(b) The provisions of paragraph (a) do not apply to the city of Baudette or any statutory 
133.33 	or home rule city or town located in Lake of the Woods County that imposes a lodging tax 
134.1 	under Minnesota Statutes, section 469.190. The total tax imposed under Minnesota Statutes, 
134.2 	section 469.190, and this section must not exceed three percent.
134.3 	(c) To the extent not inconsistent with Minnesota Statutes, section 469.190, this section 
134.4 	is governed by Minnesota Statutes, section 469.190.
134.5 	(d) Revenues derived from taxes imposed under this section must be used to fund a new 
134.6 	Lake of the Woods County Event and Visitors Bureau, as established by the Board of 
134.7 	Commissioners of Lake of the Woods County, for purposes of marketing Lake of the Woods 
134.8 	County. The Board of Commissioners must annually review the budget of the Event and 
134.9 	Visitors Bureau. The Event and Visitors Bureau may receive revenues raised from the taxes 
134.10 	imposed under this section only upon annual approval by the Board of Commissioners of 
134.11 	the Event and Visitors Bureau budget.

134.12 	EFFECTIVE DATE. This section is effective the day after the governing body of Lake 
134.13 	of the Woods County and its chief clerical officer comply with Minnesota Statutes, section 
134.14 	645.021, subdivisions 2 and 3.

134.15 	Sec. 22. CITY OF PARK RAPIDS; TAXES AUTHORIZED.
 134.16 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
134.17 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
134.18 	and if approved by the voters at a general election as required under Minnesota Statutes, 
134.19 	section 297A.99, subdivision 3, the city of Park Rapids may impose by ordinance a sales 
134.20 	and use tax of one-half of one percent for the purposes specified in subdivision 2. Except 
134.21 	as otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, 
134.22 	govern the imposition, administration, collection, and enforcement of the tax authorized 
134.23 	under this subdivision. The tax imposed under this subdivision is in addition to any local 
134.24 	sales and use tax imposed under any other special law.
134.25 		Subd. 2.Use of sales and use tax revenues. Notwithstanding the requirements of 
134.26 	Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d), the revenues derived 
134.27 	from the tax authorized under subdivision 1 must be used by the city of Park Rapids to pay 
134.28 	the costs of collecting and administering the tax and paying for the following arterial roadway 
134.29 	improvement projects in the city, including securing and paying debt service on bonds issued 
134.30 	to finance all or part of the following projects:
134.31 	(1) $3,201,000, plus associated bonding costs, for improvements to 12th Street and 
134.32 	Eastern Avenue from the southeast into the city;
135.1 	(2) $2,377,000, plus associated bonding costs, for improvements to 8th Street and 
135.2 	Fishhook Avenue from the south into the city;
135.3 	(3) $1,309,500, plus associated bonding costs, for improvements to Kaywood Drive on 
135.4 	the north side into the city and the Walmart retail area;
135.5 	(4) $1,261,000, plus associated bonding costs, for improvements to Huntsinger Avenue 
135.6 	on the east side into the city and near Park Rapids High School; and
135.7 	(5) $651,500, plus associated bonding costs, for improvements to Main Avenue South 
135.8 	into the city's downtown business district.
135.9 		Subd. 3.Bonding authority. (a) The city of Park Rapids may issue bonds under 
135.10 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the projects 
135.11 	authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes, 
135.12 	section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds 
135.13 	issued under this subdivision may not exceed $8,799,500 for the projects listed in subdivision 
135.14 	2, plus an amount to be applied to the payment of the costs of issuing the bonds.
135.15 	(b) The bonds may be paid from or secured by any funds available to the city of Park 
135.16 	Rapids, including the tax authorized under subdivision 1. The issuance of bonds under this 
135.17 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
135.18 	(c) The bonds are not included in computing any debt limitation applicable to the city 
135.19 	of Park Rapids, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
135.20 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
135.21 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
135.22 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
135.23 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years 
135.24 	after the tax is first imposed, or (2) when the city council determines that the amount received 
135.25 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
135.26 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
135.27 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
135.28 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
135.29 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
135.30 	any funds remaining after payment of the allowed costs due to the timing of the termination 
135.31 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the 
135.32 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
135.33 	if the city so determines by ordinance.

136.1 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
136.2 	city of Park Rapids and its chief clerical officer comply with Minnesota Statutes, section 
136.3 	645.021, subdivisions 2 and 3.

136.4 	Sec. 23. CITY OF PROCTOR; TAXES AUTHORIZED.
 136.5 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
136.6 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
136.7 	at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3, 
136.8 	the city of Proctor may impose by ordinance a sales and use tax of one-half of one percent 
136.9 	for the purposes specified in subdivision 2. Except as otherwise provided in this section, 
136.10 	the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
136.11 	collection, and enforcement of the tax authorized under this subdivision. The tax imposed 
136.12 	under this subdivision is in addition to any local sales and use tax imposed under any other 
136.13 	special law.
136.14 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
136.15 	under subdivision 1 must be used by the city of Proctor to pay the costs of collecting and 
136.16 	administering the tax and to finance up to $3,850,000 plus associated bonding costs for 
136.17 	construction of a new regional and statewide trail spur in the city, including securing and 
136.18 	paying debt service on bonds issued to finance all or part of the project.
136.19 		Subd. 3.Bonding authority. (a) The city of Proctor may issue bonds under Minnesota 
136.20 	Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in 
136.21 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
136.22 	not exceed $3,850,000, plus an amount to be applied to the payment of the costs of issuing 
136.23 	the bonds.
136.24 	(b) The bonds may be paid from or secured by any funds available to the city of Proctor, 
136.25 	including the tax authorized under subdivision 1. The issuance of bonds under this 
136.26 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
136.27 	(c) The bonds are not included in computing any debt limitation applicable to the city 
136.28 	of Proctor, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
136.29 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
136.30 	the bonds under Minnesota Statutes, section 475.58, is not required.
136.31 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
136.32 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years 
136.33 	after being first imposed, or (2) when the city council determines that the amount received 
137.1 	from the tax is sufficient to pay for the project costs authorized under subdivision 2, plus 
137.2 	an amount sufficient to pay the costs related to issuance of any bonds authorized under 
137.3 	subdivision 3, including interest on the bonds. Except as otherwise provided in Minnesota 
137.4 	Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining after payment 
137.5 	of the allowed costs due to the timing of the termination of the tax under Minnesota Statutes, 
137.6 	section 297A.99, subdivision 12, shall be placed in the general fund of the city. The tax 
137.7 	imposed under subdivision 1 may expire at an earlier time if the city so determines by 
137.8 	ordinance.

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

137.12 	Sec. 24. RICE COUNTY; TAXES AUTHORIZED.
 137.13 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
137.14 	section 477A.016, or any other law or ordinance, and if approved by the voters at a general 
137.15 	election as required under Minnesota Statutes, section 297A.99, subdivision 3, Rice County 
137.16 	may impose by ordinance a sales and use tax of three-eighths of one percent for the purposes 
137.17 	specified in subdivision 2. Except as otherwise provided in this section, the provisions of 
137.18 	Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and 
137.19 	enforcement of the tax authorized under this subdivision. The tax imposed under this 
137.20 	subdivision is in addition to any local sales and use tax imposed under any other special 
137.21 	law.
137.22 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
137.23 	under subdivision 1 must be used by Rice County to pay the costs of collecting and 
137.24 	administering the tax and paying for up to $77,000,000 plus associated bonding costs for 
137.25 	construction of a public safety facility in the county, including associated bond costs for 
137.26 	any bonds issued under subdivision 3.
137.27 		Subd. 3.Bonding authority. (a) Rice County may issue bonds under Minnesota Statutes, 
137.28 	chapter 475, to finance all or a portion of the costs of the facilities authorized in subdivision 
137.29 	2 and approved by the voters as required under Minnesota Statutes, section 297A.99, 
137.30 	subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this 
137.31 	subdivision may not exceed $77,000,000, plus an amount to be applied to the payment of 
137.32 	the costs of issuing the bonds.
138.1 	(b) The bonds may be paid from or secured by any funds available to Rice County, 
138.2 	including the tax authorized under subdivision 1. The issuance of bonds under this 
138.3 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
138.4 	(c) The bonds are not included in computing any debt limitation applicable to Rice 
138.5 	County, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
138.6 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
138.7 	the bonds under Minnesota Statutes, section 475.58, is not required.
138.8 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
138.9 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 30 years 
138.10 	after being first imposed, or (2) when the county board of commissioners determines that 
138.11 	the amount received from the tax is sufficient to pay for the project costs authorized under 
138.12 	subdivision 2, plus an amount sufficient to pay the costs related to issuance of any bonds 
138.13 	authorized under subdivision 3, including interest on the bonds. Except as otherwise provided 
138.14 	in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining 
138.15 	after payment of the allowed costs due to the timing of the termination of the tax under 
138.16 	Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of 
138.17 	the county. The tax imposed under subdivision 1 may expire at an earlier time if the county 
138.18 	so determines by ordinance.

138.19 	EFFECTIVE DATE. This section is effective the day after the governing body of Rice 
138.20 	County and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
138.21 	subdivisions 2 and 3.

138.22 	Sec. 25. CITY OF ROSEVILLE; TAXES AUTHORIZED.
 138.23 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
138.24 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
138.25 	at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3, 
138.26 	the city of Roseville may impose by ordinance a sales and use tax of one-half of one percent 
138.27 	for the purposes specified in subdivision 2. Except as otherwise provided in this section, 
138.28 	the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
138.29 	collection, and enforcement of the tax authorized under this subdivision. The tax imposed 
138.30 	under this subdivision is in addition to any local sales and use tax imposed under any other 
138.31 	special law.
138.32 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
138.33 	under subdivision 1 must be used by the city of Roseville to pay the costs of collecting and 
139.1 	administering the tax and paying for the following projects in the city, including securing 
139.2 	and paying debt service on bonds issued to finance all or part of the following projects:
139.3 	(1) $42,000,000 plus associated bonding costs for construction of a new maintenance 
139.4 	facility;
139.5 	(2) $7,000,000 plus associated bonding costs for construction of a new license and 
139.6 	passport center; and
139.7 	(3) $16,000,000 plus associated bonding costs for construction of a pedestrian bridge.
139.8 		Subd. 3.Bonding authority. (a) The city of Roseville may issue bonds under Minnesota 
139.9 	Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in 
139.10 	subdivision 2 and approved by the voters as required under Minnesota Statutes, section 
139.11 	297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued 
139.12 	under this subdivision may not exceed $65,000,000 for the projects listed in subdivision 2, 
139.13 	plus an amount to be applied to the payment of the costs of issuing the bonds.
139.14 	(b) The bonds may be paid from or secured by any funds available to the city of Roseville, 
139.15 	including the tax authorized under subdivision 1. The issuance of bonds under this 
139.16 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
139.17 	(c) The bonds are not included in computing any debt limitation applicable to the city 
139.18 	of Roseville, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
139.19 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
139.20 	the bonds under Minnesota Statutes, section 475.58, is not required.
139.21 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
139.22 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 16 years 
139.23 	after the tax is first imposed, or (2) when the city council determines that the amount received 
139.24 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
139.25 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
139.26 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
139.27 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
139.28 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
139.29 	any funds remaining after payment of the allowed costs due to the timing of the termination 
139.30 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
139.31 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
139.32 	if the city so determines by ordinance.

140.1 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
140.2 	city of Roseville and its chief clerical officer comply with Minnesota Statutes, section 
140.3 	645.021, subdivisions 2 and 3.

140.4 	Sec. 26. WINONA COUNTY; TAXES AUTHORIZED.
 140.5 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
140.6 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
140.7 	at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3, 
140.8 	Winona County may impose, by ordinance, a sales and use tax of one-quarter of one percent 
140.9 	for the purposes specified in subdivision 2. Except as otherwise provided in this section, 
140.10 	the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
140.11 	collection, and enforcement of the tax authorized under this subdivision. The tax imposed 
140.12 	under this subdivision is in addition to any local sales and use tax imposed under any other 
140.13 	special law.
140.14 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
140.15 	under subdivision 1 must be used by Winona County to pay the costs of collecting and 
140.16 	administering the tax, and to finance up to $28,000,000 plus associated bonding costs for 
140.17 	construction of a new correctional facility or upgrades to an existing correctional facility, 
140.18 	as well as the associated bond costs for any bonds issued under subdivision 3.
140.19 		Subd. 3.Bonding authority. (a) Winona County may issue bonds under Minnesota 
140.20 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
140.21 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
140.22 	not exceed $28,000,000, plus an amount applied to the payment of costs of issuing the 
140.23 	bonds.
140.24 	(b) The bonds may be paid from or secured by any funds available to the county, including 
140.25 	the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not 
140.26 	subject to Minnesota Statutes, sections 275.60 and 275.61.
140.27 	(c) The bonds are not included in computing any debt limitation applicable to the county. 
140.28 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
140.29 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
140.30 	under Minnesota Statutes, section 475.58, is not required.
140.31 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
140.32 	earlier of: (1) 25 years after the tax is first imposed; or (2) when the county determines that 
140.33 	it has received from this tax $28,000,000 to fund the project listed in subdivision 2, plus an 
141.1 	amount sufficient to pay costs related to issuance of any bonds authorized under subdivision 
141.2 	3, including interest on the bonds. Except as otherwise provided in Minnesota Statutes, 
141.3 	section 297A.99, subdivision 3, paragraph (f), any funds remaining after payment of the 
141.4 	allowed costs due to timing of the termination of the tax under Minnesota Statutes, section 
141.5 	297A.99, subdivision 12, shall be placed in the county's general fund. The tax imposed 
141.6 	under subdivision 1 may expire at an earlier time if the county determines by ordinance.

141.7 	EFFECTIVE DATE. This section is effective the day after the governing body of 
141.8 	Winona County and its chief clerical officer comply with Minnesota Statutes, section 
141.9 	645.021, subdivisions 2 and 3.

141.10 	Sec. 27. PANDEMIC-RELATED CONSTRUCTION COSTS; TEMPORARY 
141.11 	AUTHORITY FOR INCREASE.
 141.12 	(a) This section is intended as a response to pandemic-related increases in construction 
141.13 	costs for projects funded by local sales taxes governed under Minnesota Statutes, section 
141.14 	297A.99.
141.15 	(b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, the amount 
141.16 	authorized to finance projects authorized in Laws 2021, First Special Session chapter 14, 
141.17 	article 8, may be increased by up to $3,000,000. This limitation applies to the total amount 
141.18 	for all projects included in the authorization for a political subdivision and does not apply 
141.19 	to each project authorized. The governing body of the political subdivision shall adopt a 
141.20 	resolution indicating approval of the increased amount for each project and submit the 
141.21 	resolution to the state auditor no later than August 31 of the year the political subdivision 
141.22 	presents the tax for voter approval as required under Minnesota Statutes, section 297A.99, 
141.23 	subdivision 3, paragraph (a). The increase allowed under this section applies only to political 
141.24 	subdivisions that have not held an election as required under Minnesota Statutes, section 
141.25 	297A.99, subdivision 3, paragraph (a). The question to approve the tax must indicate the 
141.26 	amount approved in the resolution.
141.27 	(c) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, the amount 
141.28 	authorized to finance a project authorized in this act may be increased by up to ten percent 
141.29 	if the governing body of the political subdivision adopts a resolution indicating approval 
141.30 	of the increased amount for each project and submits the resolution to the state auditor no 
141.31 	later than August 31 of the year the political subdivision presents the tax for voter approval 
141.32 	as required under Minnesota Statutes, section 297A.99, subdivision 3, paragraph (a). The 
141.33 	question to approve the tax as required under Minnesota Statutes, section 297A.99, 
141.34 	subdivision 3, paragraph (a), must indicate the amount approved in the resolution.

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

142.2 	ARTICLE 8
142.3 	TAX INCREMENT FINANCING

142.4 	Section 1. Minnesota Statutes 2020, section 469.174, subdivision 14, is amended to read:
142.5 		Subd. 14.Administrative expenses. (a) "Administrative expenses" or "administrative 
142.6 	costs" means alldocumented expenditures of an authority other than or municipality, 
142.7 	including but not limited to:
142.8 	(1) amounts paid for services provided by bond counsel, fiscal consultants, and economic 
142.9 	development consultants;
142.10 	(2) allocated expenses and staff time of the authority or municipality for administering 
142.11 	a project, including but not limited to preparing the tax increment financing plan, negotiating 
142.12 	and preparing agreements, accounting for segregated funds of the district, preparing and 
142.13 	submitting required reporting for the district, and reviewing and monitoring compliance 
142.14 	with sections 469.174 to 469.1794;
142.15 	(3) amounts paid to publish annual disclosures and provide notices under section 469.175;
142.16 	(4) amounts to provide for the usual and customary maintenance and operation of 
142.17 	properties purchased with tax increments, including necessary reserves for repairs and the 
142.18 	cost of any insurance;
142.19 	(5) amounts allocated or paid to prepare a development action response plan for a soils 
142.20 	condition district or hazardous substance subdistrict; and
142.21 	(6) amounts used to pay bonds, interfund loans, or other financial obligations to the 
142.22 	extent those obligations were used to finance costs described in clauses (1) to (5).
142.23 	(b) Administrative expenses and administrative costs do not include:
142.24 	(1) amounts paid for the purchase of land and buildings;
142.25 	(2) amounts paid to contractors or others providing materials and services, including 
142.26 	architectural and engineering services, directly connected with the physical development 
142.27 	of the real property in the project, including architectural and engineering services and 
142.28 	materials and services for demolition, soil correction, and the construction or installation 
142.29 	of public improvements;
142.30 	(3) relocation benefits paid to or services provided for persons residing or businesses 
142.31 	located in the project;
143.1 	(4) amounts used to pay principal or interest on, fund a reserve for, or sell at a discount 
143.2 	bonds issued pursuant to section 469.178; or
143.3 	(5) (4) amounts paid for property taxes or payments in lieu of taxes; and
143.4 	(5) amounts used to pay principal or interest on, fund a reserve for, or sell at a discount 
143.5 	bonds issued pursuant to section 469.178 or other financial obligations to the extent those 
143.6 	obligations were used to finance costs described in clauses (1) to (3) (4).
143.7 	For districts for which the requests for certifications were made before August 1, 1979, 
143.8 	or after June 30, 1982, "administrative expenses" includes amounts paid for services provided 
143.9 	by bond counsel, fiscal consultants, and planning or economic development consultants.
143.10 	This definition does not apply to administrative expenses or administrative costs referenced 
143.11 	under section 469.176, subdivision 4h.

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

143.14 	Sec. 2. Minnesota Statutes 2020, section 469.174, is amended by adding a subdivision to 
143.15 	read:
143.16 		Subd. 30.Pay-as-you-go contract and note. "Pay-as-you-go contract and note" means 
143.17 	a written note or contractual obligation under which all of the following apply:
143.18 	(1) the note or contractual obligation evidences an authority's commitment to reimburse 
143.19 	a developer, property owner, or note holder for the payment of costs of activities, including 
143.20 	any interest on unreimbursed costs;
143.21 	(2) the reimbursement is made from tax increment revenues identified in the note or 
143.22 	contractual obligation as received by a municipality or authority as taxes are paid; and
143.23 	(3) the risk that available tax increments may be insufficient to fully reimburse the costs 
143.24 	is borne by the developer, property owner, or note holder.

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

143.26 	Sec. 3. Minnesota Statutes 2020, section 469.176, subdivision 3, is amended to read:
143.27 		Subd. 3.Limitation on administrative expenses. (a) For districts for which certification 
143.28 	was requested before August 1, 2001, no tax increment shall be used to pay any 
143.29 	administrative expenses for a project which exceed ten percent of the total estimated tax 
143.30 	increment expenditures authorized by the tax increment financing plan or ten percent of the 
143.31 	total tax increment expenditures for the project net of any amounts returned to the county 
144.1 	auditor as excess increment; as returned increment under section 469.1763, subdivision 4, 
144.2 	paragraph (g); or as remedies under section 469.1771, subdivision 2, whichever is less.
144.3 	(b) For districts for which certification was requested after July 31, 2001, no tax increment 
144.4 	may be used to pay any administrative expenses for a project which exceed ten percent of 
144.5 	total estimated tax increment expenditures authorized by the tax increment financing plan 
144.6 	or ten percent of the total tax increments, as defined in section 469.174, subdivision 25, 
144.7 	clause (1), from received for the district net of any amounts returned to the county auditor 
144.8 	as excess increment; as returned increment under section 469.1763, subdivision 4, paragraph 
144.9 	(g); or as remedies under section 469.1771, subdivision 2, whichever is less.
144.10 	(c) Increments used to pay the county's administrative expenses under subdivision 4h 
144.11 	are not subject to the percentage limits in this subdivision.
144.12 	(d) Increments defined under section 469.174, subdivision 25, clause (2), used for 
144.13 	administrative expenses described under section 469.174, subdivision 14, paragraph (a), 
144.14 	clause (4), are not subject to the percentage limits in this subdivision.

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

144.17 	Sec. 4. Minnesota Statutes 2020, section 469.176, subdivision 4, is amended to read:
144.18 		Subd. 4.Limitation on use of tax increment; general rule. All revenues derived from 
144.19 	tax increment shall be used in accordance with the tax increment financing plan. The revenues 
144.20 	shall be used solely for the following purposes: (1) to pay the principal of and interest on 
144.21 	bonds issued to finance a project; (2) by a rural development financing authority for the 
144.22 	purposes stated in section 469.142,; by a port authority or municipality exercising the powers 
144.23 	of a port authority to finance or otherwise pay the cost of redevelopment pursuant to sections 
144.24 	469.048 to 469.068,; by an economic development authority to finance or otherwise pay 
144.25 	the cost of redevelopment pursuant to sections 469.090 to 469.108,; by a housing and 
144.26 	redevelopment authority or economic development authority to finance or otherwise pay 
144.27 	public redevelopment costs pursuant to sections 469.001 to 469.047,; by a municipality or 
144.28 	economic development authority to finance or otherwise pay the capital and administration 
144.29 	costs of a development district pursuant to sections 469.124 to 469.133,; by a municipality 
144.30 	or authority to finance or otherwise pay the costs of developing and implementing a 
144.31 	development action response plan,; by a municipality or redevelopment agency to finance 
144.32 	or otherwise pay premiums for insurance or other security guaranteeing the payment when 
144.33 	due of principal of and interest on the bonds pursuant to chapter 462C, sections 469.152 to 
144.34 	469.165, or both, or to accumulate and maintain a reserve securing the payment when due 
145.1 	of the principal of and interest on the bonds pursuant to chapter 462C, sections 469.152 to 
145.2 	469.165, or both, which revenues in the reserve shall not exceed, subsequent to the fifth 
145.3 	anniversary of the date of issue of the first bond issue secured by the reserve, an amount 
145.4 	equal to 20 percent of the aggregate principal amount of the outstanding and nondefeased 
145.5 	bonds secured by the reserve; and (3) to pay administrative expenses.

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

145.8 	Sec. 5. Minnesota Statutes 2020, section 469.176, subdivision 4c, is amended to read:
145.9 		Subd. 4c.Economic development districts. (a) Revenue derived from tax increment 
145.10 	from an economic development district may not be used to provide improvements, loans, 
145.11 	subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting 
145.12 	of buildings and ancillary facilities, if more than 15 percent of the buildings and facilities 
145.13 	(determined on the basis of square footage) are used for a purpose other than:
145.14 	(1) the manufacturing or production of tangible personal property, including processing 
145.15 	resulting in the change in condition of the property;
145.16 	(2) warehousing, storage, and distribution of tangible personal property, excluding retail 
145.17 	sales;
145.18 	(3) research and development related to the activities listed in clause (1) or (2);
145.19 	(4) telemarketing if that activity is the exclusive use of the property;
145.20 	(5) tourism facilities;
145.21 	(6) space necessary for and related to the activities listed in clauses (1) to (5); or
145.22 	(7) a workforce housing project that satisfies the requirements of paragraph (d).
145.23 	(b) Notwithstanding the provisions of this subdivision, revenues derived from tax 
145.24 	increment from an economic development district may be used to provide improvements, 
145.25 	loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000 
145.26 	square feet of any separately owned commercial facility located within the municipal 
145.27 	jurisdiction of a small city, if the revenues derived from increments are spent only to assist 
145.28 	the facility directly or for administrative expenses, the assistance is necessary to develop 
145.29 	the facility, and all of the increments, except those for administrative expenses, are spent 
145.30 	only for activities within the district. If the separately owned commercial facility is a 
145.31 	multilevel facility, the 15,000 square feet limitation under this paragraph shall apply to the 
145.32 	first floor only. For purposes of this paragraph, "first floor" means the floor at street level.
146.1 	(c) A city is a small city for purposes of this subdivision if the city was a small city in 
146.2 	the year in which the request for certification was made and applies for the rest of the 
146.3 	duration of the district, regardless of whether the city qualifies or ceases to qualify as a 
146.4 	small city.
146.5 	(d) A project qualifies as a workforce housing project under this subdivision if:
146.6 	(1) increments from the district are used exclusively to assist in the acquisition of 
146.7 	property; construction of improvements; and provision of loans or subsidies, grants, interest 
146.8 	rate subsidies, public infrastructure, and related financing costs for rental housing 
146.9 	developments in the municipality;
146.10 	(2) the governing body of the municipality made the findings for the project required 
146.11 	by section 469.175, subdivision 3, paragraph (f); and
146.12 	(3) the governing bodies of the county and the school district, following receipt, review, 
146.13 	and discussion of the materials required by section 469.175, subdivision 2, for the tax 
146.14 	increment financing district, have each approved the tax increment financing plan, by 
146.15 	resolution.

146.16 	EFFECTIVE DATE. This section is effective for districts for which the request for 
146.17 	certification was made after December 31, 2021.

146.18 	Sec. 6. Minnesota Statutes 2021 Supplement, section 469.1763, subdivision 2, is amended 
146.19 	to read:
146.20 		Subd. 2.Expenditures outside district. (a) For each tax increment financing district, 
146.21 	an amount equal to at least 75 percent of the total revenue derived from tax increments paid 
146.22 	by properties in the district must be expended on activities in the district or to pay bonds, 
146.23 	to the extent that the proceeds of the bonds were used to finance activities in the district or 
146.24 	to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other 
146.25 	than redevelopment districts for which the request for certification was made after June 30, 
146.26 	1995, the in-district percentage for purposes of the preceding sentence is 80 percent. Not 
146.27 	more than 25 percent of the total revenue derived from tax increments paid by properties 
146.28 	in the district may be expended, through a development fund or otherwise, on activities 
146.29 	outside of the district but within the defined geographic area of the project except to pay, 
146.30 	or secure payment of, debt service on credit enhanced bonds. For districts, other than 
146.31 	redevelopment districts for which the request for certification was made after June 30, 1995, 
146.32 	the pooling percentage for purposes of the preceding sentence is 20 percent. The revenues 
146.33 	derived from tax increments paid by properties in the district that are expended on costs 
147.1 	under section 469.176, subdivision 4h, paragraph (b), may be deducted first before calculating 
147.2 	the percentages that must be expended within and without the district.
147.3 	(b) In the case of a housing district, a housing project, as defined in section 469.174, 
147.4 	subdivision 11, is an activity in the district.
147.5 	(c) All administrative expenses are considered to be expenditures for activities outside 
147.6 	of the district, except that if the only expenses for activities outside of the district under this 
147.7 	subdivision are for the purposes described in paragraph (d), administrative expenses will 
147.8 	be considered as expenditures for activities in the district.
147.9 	(d) The authority may elect, in the tax increment financing plan for the district, to increase 
147.10 	by up to ten percentage points the permitted amount of expenditures for activities located 
147.11 	outside the geographic area of the district under paragraph (a). As permitted by section 
147.12 	469.176, subdivision 4k, the expenditures, including the permitted expenditures under 
147.13 	paragraph (a), need not be made within the geographic area of the project. Expenditures 
147.14 	that meet the requirements of this paragraph are legally permitted expenditures of the district, 
147.15 	notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase 
147.16 	under this paragraph, the expenditures must:
147.17 	(1) be used exclusively to assist housing that meets the requirement for a qualified 
147.18 	low-income building, as that term is used in section 42 of the Internal Revenue Code; and
147.19 	(2) not exceed the qualified basis of the housing, as defined under section 42(c) of the 
147.20 	Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal 
147.21 	Revenue Code; and
147.22 	(3) be used to:
147.23 	(i) acquire and prepare the site of the housing;
147.24 	(ii) acquire, construct, or rehabilitate the housing; or
147.25 	(iii) make public improvements directly related to the housing; or
147.26 	(4) be used to develop housing:
147.27 	(i) if the market value of the housing does not exceed the lesser of:
147.28 	(A) 150 percent of the average market value of single-family homes in that municipality; 
147.29 	or
147.30 	(B) $200,000 for municipalities located in the metropolitan area, as defined in section 
147.31 	473.121, or $125,000 for all other municipalities; and
148.1 	(ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition 
148.2 	of existing structures, site preparation, and pollution abatement on one or more parcels, if 
148.3 	the parcel contains a residence containing one to four family dwelling units that has been 
148.4 	vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision 
148.5 	7, but without regard to whether the residence is the owner's principal residence, and only 
148.6 	after the redemption period has expired; or
148.7 	(5) to assist owner-occupied housing that meets the requirements of section 469.1761, 
148.8 	subdivision 2.
148.9 	(e) The authority under paragraph (d), clause (4), expires on December 31, 2016. 
148.10 	Increments may continue to be expended under this authority after that date, if they are used 
148.11 	to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if 
148.12 	December 31, 2016, is considered to be the last date of the five-year period after certification 
148.13 	under that provision.
148.14 	(f) For purposes of determining whether the minimum percentage of expenditures for 
148.15 	activities in the district and maximum percentages of expenditures allowed on activities 
148.16 	outside the district have been met under this subdivision, any amounts returned to the county 
148.17 	auditor as excess increment, as returned increment under subdivision 4, paragraph (g), or 
148.18 	as remedies under section 469.1771, subdivision 2, shall first be subtracted from the total 
148.19 	revenues derived from tax increments paid by properties in the district. Any other amounts 
148.20 	returned to the county auditor for purposes other than a remedy under section 469.1771, 
148.21 	subdivision 3, are considered to be expenditures for activities in the district.

148.22 	EFFECTIVE DATE. This section is effective the day following final enactment and 
148.23 	applies to all districts with a request for certification date after April 30, 1990, except that 
148.24 	paragraph (f) shall apply to districts decertifying after December 31, 2022.

148.25 	Sec. 7. Minnesota Statutes 2021 Supplement, section 469.1763, subdivision 3, is amended 
148.26 	to read:
148.27 		Subd. 3.Five-year rule. (a) Revenues derived from tax increments paid by properties 
148.28 	in the district that are considered to have been expended on an activity within the district 
148.29 	under will instead be considered to have been expended on an activity outside the district 
148.30 	for purposes of subdivision 2 only if one of the following occurs unless:
148.31 	(1) before or within five years after certification of the district, the revenues are actually 
148.32 	paid to a third party with respect to the activity;
149.1 	(2) bonds, the proceeds of which must be used to finance the activity, are issued and 
149.2 	sold to a third party before or within five years after certification of the district, the revenues 
149.3 	are spent to repay the bonds, and the proceeds of the bonds either are, on the date of issuance, 
149.4 	reasonably expected to be spent before the end of the later of (i) the five-year period, or (ii) 
149.5 	a reasonable temporary period within the meaning of the use of that term under section 
149.6 	148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve 
149.7 	or replacement fund;
149.8 	(3) binding contracts with a third party are entered into for performance of the activity 
149.9 	before or within five years after certification of the district and the revenues are spent under 
149.10 	the contractual obligation;
149.11 	(4) costs with respect to the activity are paid before or within five years after certification 
149.12 	of the district and the revenues are spent to reimburse a party for payment of the costs, 
149.13 	including interest on unreimbursed costs; or
149.14 	(5) expenditures are made revenues are spent for housing purposes as permitted described
149.15 	by subdivision 2, paragraphs paragraph (b) and (d), or for public infrastructure purposes 
149.16 	within a zone as permitted by subdivision 2, paragraph (e).
149.17 	(b) For purposes of this subdivision, bonds include subsequent refunding bonds if the 
149.18 	original refunded bonds meet the requirements of paragraph (a), clause (2).
149.19 	(c) For a redevelopment district or a renewal and renovation district certified after June 
149.20 	30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) are 
149.21 	extended to ten years after certification of the district. For a redevelopment district certified 
149.22 	after April 20, 2009, and before June 30, 2012, the five-year periods described in paragraph 
149.23 	(a) are extended to eight years after certification of the district. This extension is provided 
149.24 	primarily to accommodate delays in development activities due to unanticipated economic 
149.25 	circumstances.
149.26 	(d) For a redevelopment district that was certified after December 31, 2017, and before 
149.27 	June 30, 2020, the five-year periods described in paragraph (a) are extended to eight years 
149.28 	after certification of the district.

149.29 	EFFECTIVE DATE. This section is effective the day following final enactment and 
149.30 	applies to all districts with a request for certification date after April 30, 1990.

150.1 	Sec. 8. Minnesota Statutes 2021 Supplement, section 469.1763, subdivision 4, is amended 
150.2 	to read:
150.3 		Subd. 4.Use of revenues for decertification. (a) In each year beginning with the sixth 
150.4 	year following certification of the district, or beginning with the ninth year following 
150.5 	certification of the district for districts whose five-year rule is extended to eight years under 
150.6 	subdivision 3, paragraph (d), if the applicable in-district percent of the revenues derived 
150.7 	from tax increments paid by properties in the district exceeds the amount of expenditures 
150.8 	that have been made for costs permitted under subdivision 3, an amount equal to the 
150.9 	difference between the in-district percent of the revenues derived from tax increments paid 
150.10 	by properties in the district and the amount of expenditures that have been made for costs 
150.11 	permitted under subdivision 3 must be used and only used to pay or defease the following 
150.12 	or be set aside to pay the following:
150.13 	(1) outstanding bonds, as defined in subdivision 3, paragraphs (a), clause (2), and (b);
150.14 	(2) contracts, as defined in subdivision 3, paragraph (a), clauses (3) and (4);
150.15 	(3) credit enhanced bonds to which the revenues derived from tax increments are pledged, 
150.16 	but only to the extent that revenues of the district for which the credit enhanced bonds were 
150.17 	issued are insufficient to pay the bonds and to the extent that the increments from the 
150.18 	applicable pooling percent share for the district are insufficient; or
150.19 	(4) the amount provided by the tax increment financing plan to be paid under subdivision 
150.20 	2, paragraphs (b), (d), and (e).
150.21 	(b) The (a) Beginning with the sixth year following certification of the district, or 
150.22 	beginning with the year following the extended period for districts whose five-year period 
150.23 	is extended under subdivision 3, paragraphs (c) and (d), a district must be decertified and 
150.24 	the pledge of tax increment discharged when the outstanding bonds have been defeased and
150.25 	when sufficient money has been set aside to pay, based on the product of the applicable 
150.26 	in-district percentage multiplied by the increment to becumulative revenues derived from 
150.27 	tax increments paid by properties in the district that have been collected through the end of 
150.28 	the calendar year, equals or exceeds an amount sufficient to pay the following amounts:
150.29 	(1) contractualany costs and obligations as defineddescribed in subdivision 3, paragraph
150.30 	paragraphs (a), clauses (3) and (4); and (b), excluding those under a qualifying pay-as-you-go 
150.31 	contract and note;
151.1 	(2) the amount specified in the tax increment financing plan for activities qualifying 
151.2 	under subdivision 2, paragraph (b), that have not been funded with the proceeds of bonds 
151.3 	qualifying under paragraph (a), clause (1); and
151.4 	(3) the additional expenditures permitted by the tax increment financing plan for housing 
151.5 	activities under an election under subdivision 2, paragraph (d), that have not been funded 
151.6 	with the proceeds of bonds qualifying under paragraph (a), clause (1).
151.7 	(2) any accrued interest on the costs and obligations in clause (1), payable in accordance 
151.8 	with the terms thereof; and
151.9 	(3) any administrative expenses falling within the exception in subdivision 2, paragraph 
151.10 	(c).
151.11 	(b) For districts with an outstanding qualifying pay-as-you-go contract and note, the 
151.12 	required decertification under paragraph (a) is deferred until the end of the remaining term 
151.13 	of the last outstanding qualifying pay-as-you-go contract and note, and the applicable 
151.14 	in-district percentage of cumulative revenues derived from tax increments paid by properties 
151.15 	in the district are sufficient to pay the obligations identified in subdivision 3, paragraphs 
151.16 	(a) and (b), provided that the deferral shall not exceed the district's duration limit under 
151.17 	section 469.176. During the deferral, beginning at the time paragraph (a) would otherwise 
151.18 	require decertification, the authority must annually either:
151.19 	(1) remove from the district, by the end of the year, all parcels that will no longer have 
151.20 	their tax increment revenue pledged or subject to a qualifying pay-as-you-go contract and 
151.21 	note or other costs and obligations described in subdivision 3, paragraphs (a) and (b), after 
151.22 	the end of the year; or
151.23 	(2) use the applicable in-district percentage of revenues derived from tax increments 
151.24 	paid by those parcels to prepay an outstanding qualifying pay-as-you-go contract and note 
151.25 	of the district or other costs and obligations described in subdivision 3, paragraphs (a) and 
151.26 	(b), or to accumulate and use revenues derived from tax increments paid by those parcels 
151.27 	as permitted under paragraph (i).
151.28 	The authority must remove any parcels as required by this paragraph by modification 
151.29 	of the tax increment financing plan and notify the county auditor of the removed parcels by 
151.30 	the end of the same calendar year. Notwithstanding section 469.175, subdivision 4, 
151.31 	paragraphs (b), clause (1), and (e), the notice, discussion, public hearing, and findings 
151.32 	required for approval of the original plan are not required for such a modification.
152.1 	(c) Notwithstanding paragraph (a) or (b), if tax increment was pledged prior to August 
152.2 	1, 2022, to a bond other than a pay-as-you-go contract and note or interfund loan, and the 
152.3 	proceeds of the bond were used solely or in part to pay authorized costs for activities outside 
152.4 	the district, the requirement to decertify under paragraph (a) or remove parcels under 
152.5 	paragraph (b) shall not apply prior to the bond being fully paid or defeased.
152.6 	(d) For purposes of this subdivision, "applicable in-district percentage" means the 
152.7 	percentage of tax increment revenue that is restricted for expenditures within the district, 
152.8 	as determined under subdivision 2, paragraphs (a) and (d), for the district.
152.9 	(e) For purposes of this subdivision, "qualifying pay-as-you-go contract and note" means 
152.10 	a pay-as-you-go contract and note that is considered to be for activities within the district 
152.11 	under subdivision 3, paragraph (a).
152.12 	(f) For purposes of this subdivision, the reference in paragraph (a) to cumulative revenues 
152.13 	derived from tax increments paid by properties in the district through the end of the calendar 
152.14 	year shall include any final settlement distributions made in the following January. For 
152.15 	purposes of the calculation in paragraph (a), any amounts returned to the county auditor as 
152.16 	excess increment or as remedies under section 469.1771, subdivision 2, shall first be 
152.17 	subtracted from the cumulative revenues derived from tax increments paid by properties in 
152.18 	the district.
152.19 	(g) The timing and implementation of a decertification pursuant to paragraphs (a) and 
152.20 	(b) shall be subject to the following:
152.21 	(1) when a decertification is required under paragraph (a) and not deferred under 
152.22 	paragraph (b), the authority must, as soon as practical and no later than the final settlement 
152.23 	distribution date of January 25 as identified in section 276.111 for the property taxes payable 
152.24 	in the calendar year identified in paragraph (a), make the decertification by resolution 
152.25 	effective for the end of the calendar year identified in paragraph (a), and communicate the 
152.26 	decertification to the county auditor;
152.27 	(2) when a decertification is deferred under paragraph (b), the authority must, by 
152.28 	December 31 of the year in which the last qualifying pay-as-you-go contract and note reaches 
152.29 	termination, make the decertification by resolution effective for the end of that calendar 
152.30 	year and communicate the decertification to the county auditor;
152.31 	(3) if the county auditor is unable to prevent tax increments from being calculated for 
152.32 	taxes payable in the year following the year for which the decertification is made effective, 
152.33 	the county auditor may redistribute the tax increments in the same manner as excess 
153.1 	increments under section 469.176, subdivision 2, paragraph (c), clause (4), without first 
153.2 	distributing them to the authority; and
153.3 	(4) if tax increments are distributed to an authority for a taxes payable year after the year 
153.4 	for which the decertification was required to be effective, the authority must return the 
153.5 	amount of the distributions to the county auditor for redistribution in the same manner as 
153.6 	excess increments under section 469.176, subdivision 2, paragraph (c), clause (4).
153.7 	(h) The provisions of this subdivision do not apply to a housing district.
153.8 	(i) Notwithstanding anything to the contrary in paragraph (a) or (b), if an authority has 
153.9 	made the election in the tax increment financing plan for the district under subdivision 2, 
153.10 	paragraph (d), then the requirement to decertify under paragraph (a) or remove parcels under 
153.11 	paragraph (b) shall not apply prior to such time that the accumulated revenues derived from 
153.12 	tax increments paid by properties in the district that are eligible to be expended for housing 
153.13 	purposes described under subdivision 2, paragraph (d),  equals the lesser of the amount the 
153.14 	authority is permitted to expend for housing purposes described under subdivision 2, 
153.15 	paragraph (d), or the amount authorized for such purposes in the tax increment financing 
153.16 	plan. Increment revenues collected after the district would have decertified under paragraph 
153.17 	(a) or from parcels which otherwise would be subject to removal under paragraph (b), absent 
153.18 	the exception of this paragraph, shall be used solely for housing purposes as described in 
153.19 	subdivision 2, paragraph (d).

153.20 	EFFECTIVE DATE. This section is effective the day following final enactment and 
153.21 	applies to all districts with a request for certification after April 30, 1990, except that the 
153.22 	requirements under paragraph (b) to remove parcels or use revenues from such parcels as 
153.23 	prescribed in paragraph (b) apply only to districts for which the request for certification 
153.24 	was made after the day following final enactment.

153.25 	Sec. 9. Minnesota Statutes 2020, section 469.1763, subdivision 6, is amended to read:
153.26 		Subd. 6.Pooling permitted for deficits. (a) This subdivision applies only to districts 
153.27 	for which the request for certification was made before August 1, 2001, and without regard 
153.28 	to whether the request for certification was made prior to August 1, 1979.
153.29 	(b) The municipality for the district may transfer available increments from another tax 
153.30 	increment financing district located in the municipality, if the transfer is necessary to 
153.31 	eliminate a deficit in the district to which the increments are transferred. The municipality 
153.32 	may transfer increments as provided by this subdivision without regard to whether the 
153.33 	transfer or expenditure is authorized by the tax increment financing plan for the district 
154.1 	from which the transfer is made. A deficit in the district for purposes of this subdivision 
154.2 	means the lesser of the following two amounts:
154.3 	(1)(i) the amount due during the calendar year to pay preexisting obligations of the 
154.4 	district; minus the sum of
154.5 	(ii) (i) the total increments collected or to be collected from properties located within 
154.6 	the district that are available for the calendar year including amounts collected in prior years 
154.7 	that are currently available; plus
154.8 	(iii) (ii) total increments from properties located in other districts in the municipality 
154.9 	including amounts collected in prior years that are available to be used to meet the district's 
154.10 	obligations under this section, excluding this subdivision, or other provisions of law; or
154.11 	(2) the reduction in increments collected from properties located in the district for the 
154.12 	calendar year as a result of the changes in classification rates in Laws 1997, chapter 231, 
154.13 	article 1; Laws 1998, chapter 389, article 2; and Laws 1999, chapter 243, and Laws 2001, 
154.14 	First Special Session chapter 5, or the elimination of the general education tax levy under 
154.15 	Laws 2001, First Special Session chapter 5.
154.16 	The authority may compute the deficit amount under clause (1) only (without regard to 
154.17 	the limit under clause (2)) if the authority makes an irrevocable commitment, by resolution, 
154.18 	to use increments from the district to which increments are to be transferred and any 
154.19 	transferred increments are only used to pay preexisting obligations and administrative 
154.20 	expenses for the district that are required to be paid under section 469.176, subdivision 4h, 
154.21 	paragraph (a).
154.22 	(c) A preexisting obligation means:
154.23 	(1) bonds issued and sold before August 1, 2001, or bonds issued pursuant to a binding 
154.24 	contract requiring the issuance of bonds entered into before July 1, 2001, and bonds issued 
154.25 	to refund such bonds or to reimburse expenditures made in conjunction with a signed 
154.26 	contractual agreement entered into before August 1, 2001, to the extent that the bonds are 
154.27 	secured by a pledge of increments from the tax increment financing district; and
154.28 	(2) binding contracts entered into before August 1, 2001, to the extent that the contracts 
154.29 	require payments secured by a pledge of increments from the tax increment financing district.
154.30 	(d) The municipality may require a development authority, other than a seaway port 
154.31 	authority, to transfer available increments including amounts collected in prior years that 
154.32 	are currently available for any of its tax increment financing districts in the municipality to 
154.33 	make up an insufficiency in another district in the municipality, regardless of whether the 
155.1 	district was established by the development authority or another development authority. 
155.2 	This authority applies notwithstanding any law to the contrary, but applies only to a 
155.3 	development authority that:
155.4 	(1) was established by the municipality; or
155.5 	(2) the governing body of which is appointed, in whole or part, by the municipality or 
155.6 	an officer of the municipality or which consists, in whole or part, of members of the 
155.7 	governing body of the municipality. The municipality may use this authority only after it 
155.8 	has first used all available increments of the receiving development authority to eliminate 
155.9 	the insufficiency and exercised any permitted action under section 469.1792, subdivision 
155.10 	3, for preexisting districts of the receiving development authority to eliminate the 
155.11 	insufficiency.
155.12 	(e) The authority under this subdivision to spend tax increments outside of the area of 
155.13 	the district from which the tax increments were collected:
155.14 	(1) is an exception to the restrictions under section 469.176, subdivisions 4b, 4c, 4d, 4e, 
155.15 	4i, and 4j; the expenditure limits under section 469.176, subdivision 1c; and the other 
155.16 	provisions of this section; and the percentage restrictions under subdivision 2 must be 
155.17 	calculated after deducting increments spent under this subdivision from the total increments 
155.18 	for the district; and
155.19 	(2) applies notwithstanding the provisions of the Tax Increment Financing Act in effect 
155.20 	for districts for which the request for certification was made before June 30, 1982, or any 
155.21 	other law to the contrary.
155.22 	(f) If a preexisting obligation requires the development authority to pay an amount that 
155.23 	is limited to the increment from the district or a specific development within the district and 
155.24 	if the obligation requires paying a higher amount to the extent that increments are available, 
155.25 	the municipality may determine that the amount due under the preexisting obligation equals 
155.26 	the higher amount and may authorize the transfer of increments under this subdivision to 
155.27 	pay up to the higher amount. The existence of a guarantee of obligations by the individual 
155.28 	or entity that would receive the payment under this paragraph is disregarded in the 
155.29 	determination of eligibility to pool under this subdivision. The authority to transfer increments 
155.30 	under this paragraph may only be used to the extent that the payment of all other preexisting 
155.31 	obligations in the municipality due during the calendar year have been satisfied.
155.32 	(g) For transfers of increments made in calendar year 2005 and later, the reduction in 
155.33 	increments as a result of the elimination of the general education tax levy for purposes of 
155.34 	paragraph (b), clause (2), for a taxes payable year equals the general education tax rate for 
156.1 	the school district under Minnesota Statutes 2000, section 273.1382, subdivision 1, for taxes 
156.2 	payable in 2001, multiplied by the captured tax capacity of the district for the current taxes 
156.3 	payable year.

156.4 	EFFECTIVE DATE. This section is effective the day following final enactment and 
156.5 	applies only to districts for which the request for certification was made before August 1, 
156.6 	2001, and without regard to whether the request for certification was made prior to August 
156.7 	1, 1979.

156.8 	Sec. 10. Minnesota Statutes 2020, section 469.1771, subdivision 2, is amended to read:
156.9 		Subd. 2.Collection of increment. If an authority includes or retains a parcel of property 
156.10 	in a tax increment financing district that does not qualify for inclusion or retention within 
156.11 	the district, the authority must pay to the county auditor an amount of money equal to the 
156.12 	increment collected from the property for the year or years. The property must be eliminated 
156.13 	from the original and captured tax capacity of the district effective for the current property 
156.14 	tax assessment year. This subdivision does not apply to a failure to decertify a district at 
156.15 	the end of the duration limit specified in the tax increment financing plan.

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

156.17 	Sec. 11. Minnesota Statutes 2020, section 469.1771, subdivision 2a, is amended to read:
156.18 		Subd. 2a.Suspension of distribution of tax increment. (a) If an authority fails to make 
156.19 	a disclosure or to submit a report containing the information required by section 469.175, 
156.20 	subdivisions 5 and 6, regarding a tax increment financing district within the time provided 
156.21 	in section 469.175, subdivisions 5 and 6, the state auditor shall mail to the authority a written 
156.22 	notice that it or the municipality has failed to make the required disclosure or to submit a 
156.23 	required report with respect to a particular district. The state auditor shall mail the notice 
156.24 	on or before the third Tuesday of August of the year in which the disclosure or report was 
156.25 	required to be made or submitted. The notice must describe the consequences of failing to 
156.26 	disclose or submit a report as provided in paragraph (b). If the state auditor has not received 
156.27 	a copy of a disclosure or a report described in this paragraph on or before the first day of 
156.28 	October of the year in which the disclosure or report was required to be made or submitted, 
156.29 	the state auditor shall mail a written notice to the county auditor to hold the distribution of 
156.30 	tax increment from a particular district.
156.31 	(b) Upon receiving written notice from the state auditor to hold the distribution of tax 
156.32 	increment, the county auditor shall hold: all tax increment that otherwise would be distributed 
156.33 	after receipt of the notice, until further notified under paragraph (c).
157.1 	(1) 100 percent of the amount of tax increment that otherwise would be distributed, if 
157.2 	the distribution is made after the first day of October but during the year in which the 
157.3 	disclosure or report was required to be made or submitted; or
157.4 	(2) 100 percent of the amount of tax increment that otherwise would be distributed, if 
157.5 	the distribution is made after December 31 of the year in which the disclosure or report was 
157.6 	required to be made or submitted.
157.7 	(c) Upon receiving the copy of the disclosure and all of the reports described in paragraph 
157.8 	(a) with respect to a district regarding which the state auditor has mailed to the county 
157.9 	auditor a written notice to hold distribution of tax increment, the state auditor shall mail to 
157.10 	the county auditor a written notice lifting the hold and authorizing the county auditor to 
157.11 	distribute to the authority or municipality any tax increment that the county auditor had held 
157.12 	pursuant to paragraph (b). The state auditor shall mail the written notice required by this 
157.13 	paragraph within five working days after receiving the last outstanding item. The county 
157.14 	auditor shall distribute the tax increment to the authority or municipality within 15 working 
157.15 	days after receiving the written notice required by this paragraph.
157.16 	(d) Notwithstanding any law to the contrary, any interest that accrues on tax increment 
157.17 	while it is being held by the county auditor pursuant to paragraph (b) is not tax increment 
157.18 	and may be retained by the county.
157.19 	(e) For purposes of sections 469.176, subdivisions 1a to 1g, and 469.177, subdivision 
157.20 	11, tax increment being held by the county auditor pursuant to paragraph (b) is considered 
157.21 	distributed to or received by the authority or municipality as of the time that it would have 
157.22 	been distributed or received but for paragraph (b).

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

157.24 	Sec. 12. Minnesota Statutes 2020, section 469.1771, subdivision 3, is amended to read:
157.25 		Subd. 3.Expenditure of increment. If an authority expends revenues derived from tax 
157.26 	increments, including the proceeds of tax increment bonds, (1) for a purpose that is not a 
157.27 	permitted project under section 469.176 sections 469.174 to 469.1794, (2) for a purpose 
157.28 	that is not permitted under section 469.176 sections 469.174 to 469.1794 for the district 
157.29 	from which the increment was received, or (3) on activities outside of the geographic area 
157.30 	in which the revenues may be expended under this chapter, the authority must pay to the 
157.31 	county auditor an amount equal to the expenditures made in violation of the law.

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

158.1 	Sec. 13. Laws 2014, chapter 308, article 6, section 12, subdivision 2, is amended to read:
158.2 		Subd. 2.Special rules. (a) If the city elects, upon the adoption of the tax increment 
158.3 	financing plan for a district, the rules under this section apply to a redevelopment district, 
158.4 	renewal and renovation district, soil condition district, or soil deficiency district established 
158.5 	by the city or a development authority of the city in the project area.
158.6 	(b) Prior to or upon the adoption of the first tax increment plan subject to the special 
158.7 	rules under this subdivision, the city must find by resolution that parcels consisting of at 
158.8 	least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way, 
158.9 	are characterized by one or more of the following conditions:
158.10 	(1) peat or other soils with geotechnical deficiencies that impair development of 
158.11 	commercial buildings or infrastructure;
158.12 	(2) soils or terrain that require substantial filling in order to permit the development of 
158.13 	commercial buildings or infrastructure;
158.14 	(3) landfills, dumps, or similar deposits of municipal or private waste;
158.15 	(4) quarries or similar resource extraction sites;
158.16 	(5) floodway; and
158.17 	(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174, 
158.18 	subdivision 10.
158.19 	(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the 
158.20 	relevant condition if at least 70 percent of the area of the parcel contains the relevant 
158.21 	condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by 
158.22 	substandard buildings if substandard buildings occupy at least 30 percent of the area of the 
158.23 	parcel.
158.24 	(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is 
158.25 	extended to eight 11 years for any district,; the five-year period under Minnesota Statutes, 
158.26 	section 469.175, subdivision 4, paragraph (f), is extended to eight years for any district; and 
158.27 	Minnesota Statutes, section 469.1763, subdivision 4, does not apply to any district.
158.28 	(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763, 
158.29 	subdivision 2, paragraph (a), not more than 40 percent of the total revenue derived from tax 
158.30 	increments paid by properties in any district, measured over the life of the district, may be 
158.31 	expended on activities outside the district but within the project area.
158.32 	(f) For a soil deficiency district:
159.1 	(1) increments may be collected through 20 years after the receipt by the authority of 
159.2 	the first increment from the district;
159.3 	(2) increments may be used only to:
159.4 	(i) acquire parcels on which the improvements described in item (ii) will occur;
159.5 	(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional 
159.6 	cost of installing public improvements directly caused by the deficiencies; and
159.7 	(iii) pay for the administrative expenses of the authority allocable to the district; and
159.8 	(3) any parcel acquired with increments from the district must be sold at no less than 
159.9 	their fair market value.
159.10 	(g) Increments spent for any infrastructure costs, whether inside a district or outside a 
159.11 	district but within the project area, are deemed to satisfy the requirements of Minnesota 
159.12 	Statutes, section 469.176, subdivision 4j.
159.13 	(h) The authority to approve tax increment financing plans to establish tax increment 
159.14 	financing districts under this section expires June 30, 2020.

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

159.18 	Sec. 14. CITY OF SHAKOPEE; TAX INCREMENT FINANCING DISTRICT.
 159.19 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
159.20 	the meanings given.
159.21 	(b) "City" means the city of Shakopee.
159.22 	(c) "Project area" means the following parcels, identified by parcel identification number: 
159.23 	279160102, 279160110, 279170020, and 279160120.
159.24 	(d) "Soil deficiency district" means a type of tax increment financing district consisting 
159.25 	of a portion of the project area in which the city finds by resolution that the following 
159.26 	conditions exist:
159.27 	(1) unusual terrain or soil deficiencies that occurred over 70 percent of the acreage in 
159.28 	the district require substantial filling, grading, or other physical preparation for use; and
159.29 	(2) the estimated cost of the physical preparation under clause (1), excluding costs 
159.30 	directly related to roads as defined in Minnesota Statutes, section 160.01, and local 
159.31 	improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, other 
160.1 	than clauses (8) to (10), and 430.01, exceeds the fair market value of the land before 
160.2 	completion of the preparation.
160.3 		Subd. 2.Special rules. (a) If the city elects, upon the adoption of the tax increment 
160.4 	financing plan for a district, the rules under this section apply to a redevelopment district, 
160.5 	renewal and renovation district, soil condition district, or soil deficiency district established 
160.6 	by the city or a development authority of the city in the project area. The city, or a 
160.7 	development authority acting on its behalf, may establish one or more soil deficiency districts 
160.8 	within the project area.
160.9 	(b) Prior to or upon the adoption of the first tax increment plan subject to the special 
160.10 	rules under this subdivision, the city must find by resolution that parcels consisting of at 
160.11 	least 70 percent of the acreage of the project area, excluding street and railroad rights-of-way, 
160.12 	are characterized by one or more of the following conditions:
160.13 	(1) peat or other soils with geotechnical deficiencies that impair development of 
160.14 	residential or commercial buildings or infrastructure;
160.15 	(2) soils or terrain that requires substantial filling in order to permit the development of 
160.16 	residential or commercial buildings or infrastructure;
160.17 	(3) landfills, dumps, or similar deposits of municipal or private waste;
160.18 	(4) quarries or similar resource extraction sites;
160.19 	(5) floodways; and
160.20 	(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174, 
160.21 	subdivision 10.
160.22 	(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the 
160.23 	relevant condition if at least 60 percent of the area of the parcel contains the relevant 
160.24 	condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by 
160.25 	substandard buildings if substandard buildings occupy at least 30 percent of the area of the 
160.26 	parcel.
160.27 	(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is 
160.28 	extended to ten years for any district, and the period under Minnesota Statutes, section 
160.29 	469.1763, subdivision 4, is extended to 11 years.
160.30 	(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763, 
160.31 	subdivision 2, paragraph (a), not more than 80 percent of the total revenue derived from tax 
161.1 	increments paid by properties in any district, measured over the life of the district, may be 
161.2 	expended on activities outside the district but within the project area.
161.3 	(f) For a soil deficiency district:
161.4 	(1) increments may be collected through 20 years after the receipt by the authority of 
161.5 	the first increment from the district; and
161.6 	(2) except as otherwise provided in this subdivision, increments may be used only to:
161.7 	(i) acquire parcels on which the improvements described in item (ii) will occur;
161.8 	(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional 
161.9 	cost of installing public improvements directly caused by the deficiencies; and
161.10 	(iii) pay for the administrative expenses of the authority allocable to the district.
161.11 	(g) The authority to approve tax increment financing plans to establish tax increment 
161.12 	financing districts under this section expires December 31, 2026.

161.13 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
161.14 	city of Shakopee and its chief clerical officer comply with the requirements of Minnesota 
161.15 	Statutes, section 645.021, subdivisions 2 and 3.

161.16 	Sec. 15. CITY OF WOODBURY; TIF DISTRICT NO. 13; EXPENDITURES 
161.17 	ALLOWED; DURATION EXTENSION.
 161.18 	(a) Notwithstanding Minnesota Statutes, section 469.1763, subdivision 2, or any other 
161.19 	law to the contrary, the city of Woodbury may expend increments generated from Tax 
161.20 	Increment Financing District No. 13 for the maintenance and facility and infrastructure 
161.21 	upgrades to Central Park. All such expenditures are deemed expended on activities within 
161.22 	the district.
161.23 	(b) Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, the city of 
161.24 	Woodbury may elect to extend the duration of Tax Increment Financing District No. 13 by 
161.25 	five years.

161.26 	EFFECTIVE DATE. Paragraph (a) is effective the day after the governing body of the 
161.27 	city of Woodbury and its chief clerical officer comply with the requirements of Minnesota 
161.28 	Statutes, section 645.021, subdivisions 2 and 3. Paragraph (b) is effective upon compliance 
161.29 	by the city of Woodbury, Washington County, and Independent School District No. 833 
161.30 	with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, 
161.31 	subdivisions 2 and 3.

162.1 	ARTICLE 9
162.2 	MISCELLANEOUS

162.3 	Section 1. Minnesota Statutes 2021 Supplement, section 3.192, is amended to read:
162.4 	3.192 REQUIREMENTS FOR NEW OR RENEWED TAX EXPENDITURES.
162.5 	(a) Any Within 60 days after final enactment of a bill that creates, renews, or continues 
162.6 	a tax expenditure must include, the chairs of the house of representatives and senate 
162.7 	committees with primary jurisdiction over taxes must submit to the Tax Expenditure Review 
162.8 	Commission a statement of intent that clearly provides the purpose of the tax expenditure 
162.9 	and a standard or goal against which its effectiveness may be measured.
162.10 	(b) For purposes of this section, "tax expenditure" has the meaning given in section 
162.11 	270C.11, subdivision 6, and "Tax Expenditure Review Commission" has the meaning given 
162.12 	in section 3.855.
162.13 	(c) Any bill that creates a new tax expenditure or continues an expiring tax expenditure 
162.14 	must include an expiration date for the tax expenditure that is no more than eight years from 
162.15 	the day the provision takes effect Compliance with paragraphs (a) and (b) is not subject to 
162.16 	judicial review.

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

162.18 	Sec. 2. Minnesota Statutes 2020, section 270C.11, is amended by adding a subdivision to 
162.19 	read:
162.20 		Subd. 2a.Report of expiring tax expenditures. By October 1 of each year, the 
162.21 	commissioner shall provide a report to the chairs and ranking minority members of the 
162.22 	house of representatives and senate committees with jurisdiction over taxation listing each 
162.23 	tax expenditure that, absent legislative action, will expire before July 1 of the following 
162.24 	year.

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

162.26 	Sec. 3. Minnesota Statutes 2021 Supplement, section 290.92, subdivision 20, is amended 
162.27 	to read:
162.28 		Subd. 20.Miscellaneous withholding arrangements. (a) For purposes of this section, 
162.29 	any payment or distribution to an individual as defined under section 3405(e)(2) or (3) of 
162.30 	the Internal Revenue Code shall be treated as if it were a payment of wages by an employer 
162.31 	to an employee for a payroll period subject to withholding at a rate of 6.25 percent, or any 
163.1 	rate specified by the recipient. Any payment to an individual of sick pay which does not 
163.2 	constitute wages, determined without regard to this subdivision, shall be treated as if it were 
163.3 	a payment of wages by an employer to an employee for a payroll period, if, at the time the 
163.4 	payment is made a request that such sick pay be subject to withholding under this section 
163.5 	is in effect. Sick pay means any amount which:
163.6 	(1) is paid to an employee pursuant to a plan to which the employer is a party, and
163.7 	(2) constitutes remuneration or a payment in lieu of remuneration for any period during 
163.8 	which the employee is temporarily absent from work on account of sickness or personal 
163.9 	injuries.
163.10 	(b) A request for withholding, the amount withheld, and sick pay paid pursuant to certain 
163.11 	collective bargaining agreements shall conform with the provisions of section 3402(o)(3), 
163.12 	(4), and (5) of the Internal Revenue Code.
163.13 	(c) The commissioner is authorized by rules to provide for withholding:
163.14 	(1) from remuneration for services performed by an employee for the employer which, 
163.15 	without regard to this subdivision, does not constitute wages, and
163.16 	(2) from any other type of payment with respect to which the commissioner finds that 
163.17 	withholding would be appropriate under the provisions of this section, if the employer and 
163.18 	the employee, or in the case of any other type of payment the person making and the person 
163.19 	receiving the payment, agree to such withholding. Such agreement shall be made in such 
163.20 	form and manner as the commissioner may by rules provide. For purposes of this section 
163.21 	remuneration or other payments with respect to which such agreement is made shall be 
163.22 	treated as if they were wages paid by an employer to an employee to the extent that such 
163.23 	remuneration is paid or other payments are made during the period for which the agreement 
163.24 	is in effect.
163.25 	(d) An individual receiving a payment or distribution under paragraph (a) may elect to 
163.26 	have paragraph (a) not apply to the payment or distribution as follows.
163.27 	(1) For payments defined under section 3405(e)(2) of the Internal Revenue Code, and
163.28 	an election remains in effect until revoked by such individual.
163.29 	(2) For distributions defined under section 3405(e)(3) of the Internal Revenue Code, the 
163.30 	election is on a distribution-by-distribution basis.

163.31 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
163.32 	31, 2021.

164.1 	Sec. 4. Minnesota Statutes 2021 Supplement, section 297E.02, subdivision 3, is amended 
164.2 	to read:
164.3 		Subd. 3.Collection; disposition. (a) Taxes imposed by this section are due and payable 
164.4 	to the commissioner when the gambling tax return is required to be filed. Distributors must 
164.5 	file their monthly sales figures with the commissioner on a form prescribed by the 
164.6 	commissioner. Returns covering the taxes imposed under this section must be filed with 
164.7 	the commissioner on or before the 20th day of the month following the close of the previous 
164.8 	calendar month. The commissioner shall prescribe the content, format, and manner of returns 
164.9 	or other documents pursuant to section 270C.30. The proceeds, along with the revenue 
164.10 	received from all license fees and other fees under sections 349.11 to 349.191, 349.211, 
164.11 	and 349.213, must be paid to the commissioner of management and budget for deposit in 
164.12 	the general fund.
164.13 	(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by the 
164.14 	distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards by 
164.15 	the organization is exempt from taxes imposed by chapter 297A and is exempt from all 
164.16 	local taxes and license fees except a fee authorized under section 349.16, subdivision 8.
164.17 	(c)(1) One-half of one percent of the revenue deposited in the general fund under 
164.18 	paragraph (a), is appropriated to the commissioner of human services for the compulsive 
164.19 	gambling treatment program established under section 245.98. One-half of one percent of 
164.20 	the revenue deposited in the general fund under paragraph (a), is appropriated to the 
164.21 	commissioner of human services for a grant to the state affiliate recognized by the National 
164.22 	Council on Problem Gambling to increase public awareness of problem gambling, education 
164.23 	and training for individuals and organizations providing effective treatment services to 
164.24 	problem gamblers and their families, and research relating to problem gambling. Money 
164.25 	appropriated by this paragraph must supplement and must not replace existing state funding 
164.26 	for these programs.
164.27 	(2) For fiscal years 2024 and 2025 only, the appropriations under clause (1) must be 
164.28 	calculated without regard to the changes to the combined net receipts tax brackets in section 
164.29 	297E.02, subdivision 6.
164.30 	(d) The commissioner of human services must provide to the state affiliate recognized 
164.31 	by the National Council on Problem Gambling a monthly statement of the amounts deposited 
164.32 	under paragraph (c). Beginning January 1, 2022, the commissioner of human services must 
164.33 	provide to the chairs and ranking minority members of the legislative committees with 
164.34 	jurisdiction over treatment for problem gambling and to the state affiliate recognized by the 
165.1 	National Council on Problem Gambling an annual reconciliation of the amounts deposited 
165.2 	under paragraph (c). The annual reconciliation under this paragraph must include the amount 
165.3 	allocated to the commissioner of human services for the compulsive gambling treatment 
165.4 	program established under section 245.98, and the amount allocated to the state affiliate 
165.5 	recognized by the National Council on Problem Gambling.

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

165.7 	Sec. 5. Minnesota Statutes 2020, section 297E.02, subdivision 6, is amended to read:
165.8 		Subd. 6.Combined net receipts tax. (a) In addition to the taxes imposed under 
165.9 	subdivision 1, a tax is imposed on the combined net receipts of the organization. As used 
165.10 	in this section, "combined net receipts" is the sum of the organization's gross receipts from 
165.11 	lawful gambling less gross receipts directly derived from the conduct of paper bingo, raffles, 
165.12 	and paddlewheels, as defined in section 297E.01, subdivision 8, and less the net prizes 
165.13 	actually paid, other than prizes actually paid for paper bingo, raffles, and paddlewheels, for 
165.14 	the fiscal year. The combined net receipts of an organization are subject to a tax computed 
165.15 	according to the following schedule:

165.16
165.17		If the combined net receipts 
for the fiscal year are:
		The tax is:
		
165.18		Not over $87,500 $100,000
		ninefive percent
		
165.19
165.20165.21		Over $87,500 $100,000, but 
not over $122,500
		$7,875 $5,000 plus 18 percent of the 
amount over $87,500 $100,000, but 
not over $122,500
		
165.22
165.23165.24		Over $122,500, but not 
over $157,500
		$14,175 $9,050 plus 27 percent of the 
amount over $122,500, but not over 
$157,500
		
165.25165.26		Over $157,500
		$23,625 $18,500 plus 36 percent of 
the amount over $157,500
		
165.27 	(b) Gross receipts derived from sports-themed tipboards are exempt from taxation under 
165.28 	this section. For purposes of this paragraph, a sports-themed tipboard means a sports-themed 
165.29 	tipboard as defined in section 349.12, subdivision 34, under which the winning numbers 
165.30 	are determined by the numerical outcome of a professional sporting event.

165.31 	EFFECTIVE DATE. This section is effective for games reported as played after June 
165.32 	30, 2023.

165.33 	Sec. 6. Minnesota Statutes 2020, section 297E.021, subdivision 2, is amended to read:
165.34 		Subd. 2.Determination of revenue increase. By March 15 of each fiscal year, the 
165.35 	commissioner of management and budget, in consultation with the commissioner, shall 
166.1 	determine the estimated increase in revenues received from taxes imposed under this chapter 
166.2 	over the estimated revenues under the February 2012 state budget forecast for that fiscal 
166.3 	year. For fiscal years after fiscal year 2015, the commissioner of management and budget 
166.4 	shall use the February 2012 state budget forecast for fiscal year 2015 as the a baseline of: 
166.5 	(1) $30,100,000 in fiscal year 2024; and (2) $29,200,000 in fiscal year 2025 and thereafter. 
166.6 	All calculations under this subdivision must be made net of estimated refunds of the taxes 
166.7 	required to be paid.

166.8 	EFFECTIVE DATE. This section is effective for fiscal year 2024 and thereafter.

166.9 	Sec. 7. Minnesota Statutes 2020, section 298.28, subdivision 5, is amended to read:
166.10 		Subd. 5.Counties. (a) 21.05 cents per taxable ton for distributions in 2015 through 2023, 
166.11 	and 26.05 cents per taxable ton for distributions beginning in 2024, is allocated to counties 
166.12 	to be distributed, based upon certification by the commissioner of revenue, under paragraphs 
166.13 	(b) to (d).
166.14 	(b) 10.525 cents per taxable ton shall be distributed to the county in which the taconite 
166.15 	is mined or quarried or in which the concentrate is produced, less any amount which is to 
166.16 	be distributed pursuant to paragraph (c). The apportionment formula prescribed in subdivision 
166.17 	2 is the basis for the distribution.
166.18 	(c) 1.0 cent per taxable ton of the tax distributed to the counties under paragraph (b) 
166.19 	shall be paid to a county that received a distribution under this section in 2000 because there 
166.20 	was located in the county an electric power plant owned by and providing the primary source 
166.21 	of power for a taxpayer mining and concentrating taconite in a different county.
166.22 	(d) 10.525 cents per taxable ton for distributions in 2015 through 2023, and 15.525 cents 
166.23 	per taxable ton for distributions beginning in 2024, shall be paid to the county from which 
166.24 	the taconite was mined, quarried or concentrated to be deposited in the county road and 
166.25 	bridge fund. If the mining, quarrying and concentrating, or separate steps in any of those 
166.26 	processes are carried on in more than one county, the commissioner shall follow the 
166.27 	apportionment formula prescribed in subdivision 2.

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

166.29 	Sec. 8. Minnesota Statutes 2020, section 298.28, subdivision 7a, is amended to read:
166.30 		Subd. 7a.Iron Range school consolidation and cooperatively operated school 
166.31 	account. (a) The following amounts must be allocated to the commissioner of Iron Range 
167.1 	resources and rehabilitation to be deposited in the Iron Range school consolidation and 
167.2 	cooperatively operated school account that is hereby created:
167.3 	(1)(i) for distributions in 2015 through 2023 2033, ten cents per taxable ton of the tax 
167.4 	imposed under section 298.24; and
167.5 	(ii) for distributions beginning in 2024 2034, five cents per taxable ton of the tax imposed 
167.6 	under section 298.24;
167.7 	(2) the amount as determined under section 298.17, paragraph (b), clause (3); and
167.8 	(3) any other amount as provided by law.
167.9 	(b) Expenditures from this account may be approved as ongoing annual expenditures 
167.10 	and shall be made only to provide disbursements to assist school districts with the payment 
167.11 	of bonds that were issued for qualified school projects, or for any other school disbursement 
167.12 	as approved by the commissioner of Iron Range resources and rehabilitation after consultation 
167.13 	with the Iron Range Resources and Rehabilitation Board. For purposes of this section, 
167.14 	"qualified school projects" means school projects within the taconite assistance area as 
167.15 	defined in section 273.1341, that were (1) approved, by referendum, after April 3, 2006; 
167.16 	and (2) approved by the commissioner of education pursuant to section 123B.71.
167.17 	(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for 
167.18 	bonds issued under section 123A.482, subdivision 9, must be increased each year to offset 
167.19 	any reduction in debt service equalization aid that the school district qualifies for in that 
167.20 	year, under section 123B.53, subdivision 6, compared with the amount the school district 
167.21 	qualified for in fiscal year 2018.
167.22 	(d) No expenditure under this section shall be made unless approved by the commissioner 
167.23 	of Iron Range resources and rehabilitation after consultation with the Iron Range Resources 
167.24 	and Rehabilitation Board.

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

167.26 	Sec. 9. Minnesota Statutes 2020, section 298.28, subdivision 9b, is amended to read:
167.27 		Subd. 9b.Taconite environmental fund. Five cents per ton through distributions in 
167.28 	2033 must be paid to the taconite environmental fund for use under section 298.2961, 
167.29 	subdivision 4. Beginning with distributions in 2034, ten cents per ton must be paid to the 
167.30 	taconite environmental fund of which five cents per ton must be used as provided under 
167.31 	section 298.2961, subdivision 4.

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

168.1 	ARTICLE 10
168.2 	DEPARTMENT OF REVENUE POLICY AND TECHNICAL: PARTNERSHIP 
168.3 	TAXES

168.4 	Section 1. Minnesota Statutes 2021 Supplement, section 289A.08, subdivision 7a, is 
168.5 	amended to read:
168.6 		Subd. 7a.Pass-through entity tax. (a) For the purposes of this subdivision, the following 
168.7 	terms have the meanings given:
168.8 	(1) "income" has the meaning given in subdivision 7, paragraph (j), modified by the 
168.9 	addition provided in section 290.0131, subdivision 5, and the subtraction provided in section 
168.10 	290.0132, subdivision 3, except that the provisions that apply to a partnership apply to a 
168.11 	qualifying entity and the provisions that apply to a partner apply to a qualifying owner. The 
168.12 	income of both a resident and nonresident qualifying owner is allocated and assigned to 
168.13 	this state as provided for nonresident partners and shareholders under sections 290.17, 
168.14 	290.191, and 290.20;
168.15 	(2) "qualifying entity" means a partnership, limited liability company taxed as a 
168.16 	partnership or S corporation, or S corporation including a qualified subchapter S subsidiary 
168.17 	organized under section 1361(b)(3)(B) of the Internal Revenue Code. Qualifying entity does 
168.18 	not include a partnership, limited liability company, or corporation that has a partnership, 
168.19 	limited liability company other than a disregarded entity, or corporation as a partner, member, 
168.20 	or shareholder; and
168.21 	(3) "qualifying owner" means:
168.22 	(i) a resident or nonresident individual or estate that is a partner, member, or shareholder 
168.23 	of a qualifying entity; or
168.24 	(ii) a resident or nonresident trust that is a shareholder of a qualifying entity that is an 
168.25 	S corporation.
168.26 	(b) For taxable years beginning after December 31, 2020, in which the taxes of a 
168.27 	qualifying owner are limited under section 164(b)(6)(B) of the Internal Revenue Code, a 
168.28 	qualifying entity may elect to file a return and pay the pass-through entity tax imposed under 
168.29 	paragraph (c). The election:
168.30 	(1) must be made on or before the due date or extended due date of the qualifying entity's 
168.31 	pass-through entity tax return;
168.32 	(2) may only be made by qualifying owners who collectively hold more than a 50 percent 
168.33 	ownership interest in the qualifying entity;
169.1 	(3) is binding on all qualifying owners who have an ownership interest in the qualifying 
169.2 	entity; and
169.3 	(4) once made is irrevocable for the taxable year.
169.4 	(c) Subject to the election in paragraph (b), a pass-through entity tax is imposed on a 
169.5 	qualifying entity in an amount equal to the sum of the tax liability of each qualifying owner.
169.6 	(d) The amount of a qualifying owner's tax liability under paragraph (c) is the amount 
169.7 	of the qualifying owner's income multiplied by the highest tax rate for individuals under 
169.8 	section 290.06, subdivision 2c. When making this determination:
169.9 	(1) nonbusiness deductions, standard deductions, or personal exemptions are not allowed; 
169.10 	and
169.11 	(2) a credit or deduction is allowed only to the extent allowed to the qualifying owner.
169.12 	(e) The amount of each credit and deduction used to determine a qualifying owner's tax 
169.13 	liability under paragraph (d) must also be used to determine that qualifying owner's income 
169.14 	tax liability under chapter 290.
169.15 	(f) This subdivision does not negate the requirement that a qualifying owner pay estimated 
169.16 	tax if the qualifying owner's tax liability would exceed the requirements set forth in section 
169.17 	289A.25. The qualifying owner's liability to pay estimated tax on the qualifying owner's 
169.18 	tax liability as determined under paragraph (d) is, however, satisfied when the qualifying 
169.19 	entity pays estimated tax in the manner prescribed in section 289A.25 for composite estimated 
169.20 	tax.
169.21 	(g) A qualifying owner's adjusted basis in the interest in the qualifying entity, and the 
169.22 	treatment of distributions, is determined as if the election to pay the pass-through entity tax 
169.23 	under paragraph (b) is not made.
169.24 	(h) To the extent not inconsistent with this subdivision, for purposes of this chapter, a 
169.25 	pass-through entity tax return must be treated as a composite return and a qualifying entity 
169.26 	filing a pass-through entity tax return must be treated as a partnership filing a composite 
169.27 	return.
169.28 	(i) The provisions of subdivision 17 apply to the election to pay the pass-through entity 
169.29 	tax under this subdivision.
169.30 	(j) If a nonresident qualifying owner of a qualifying entity making the election to file 
169.31 	and pay the tax under this subdivision has no other Minnesota source income, filing of the 
169.32 	pass-through entity tax return is a return for purposes of subdivision 1, provided that the 
170.1 	nonresident qualifying owner must not have any Minnesota source income other than the 
170.2 	income from the qualifying entity, other electing qualifying entities, and other partnerships 
170.3 	electing to file a composite return under subdivision 7. If it is determined that the nonresident 
170.4 	qualifying owner has other Minnesota source income, the inclusion of the income and tax 
170.5 	liability for that owner under this provision will not constitute a return to satisfy the 
170.6 	requirements of subdivision 1. The tax paid for the qualifying owner as part of the 
170.7 	pass-through entity tax return is allowed as a payment of the tax by the qualifying owner 
170.8 	on the date on which the pass-through entity tax return payment was made.

170.9 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
170.10 	after December 31, 2020.

170.11 	Sec. 2. Minnesota Statutes 2021 Supplement, section 289A.382, subdivision 2, is amended 
170.12 	to read:
170.13 		Subd. 2.Reporting and payment requirements for partnerships and tiered 
170.14 	partners. (a) Except for when an audited partnership makes the election in subdivision 3, 
170.15 	and except for negative federal adjustments required under federal law taken into account 
170.16 	by the partnership in the partnership return for the adjustment or other year, all final federal 
170.17 	adjustments of an audited partnership must comply with paragraph (b) and each direct 
170.18 	partner of the audited partnership, other than a tiered partner, must comply with paragraph 
170.19 	(c).
170.20 	(b) No later than 90 days after the final determination date, the audited partnership must:
170.21 	(1) file a completed federal adjustments report, including all partner-level information 
170.22 	required under section 289A.12, subdivision 3, with the commissioner;
170.23 	(2) notify each of its direct partners of their distributive share of the final federal 
170.24 	adjustments;
170.25 	(3) file an amended composite report for all direct partners who were included in a 
170.26 	composite return under section 289A.08, subdivision 7, in the reviewed year, and pay the 
170.27 	additional amount that would have been due had the federal adjustments been reported 
170.28 	properly as required; and
170.29 	(4) file amended withholding reports for all direct partners who were or should have 
170.30 	been subject to nonresident withholding under section 290.92, subdivision 4b, in the reviewed 
170.31 	year, and pay the additional amount that would have been due had the federal adjustments 
170.32 	been reported properly as required.; and
171.1 	(5) file an amended pass-through entity tax report for all direct partners who were 
171.2 	included in a pass-through entity tax return under section 289A.08, subdivision 7a, in the 
171.3 	reviewed year, and pay the additional amount that would have been due had the federal 
171.4 	adjustments been reported properly as required.
171.5 	(c) No later than 180 days after the final determination date, each direct partner, other 
171.6 	than a tiered partner, that is subject to a tax administered under this chapter, other than the 
171.7 	sales tax, must:
171.8 	(1) file a federal adjustments report reporting their distributive share of the adjustments 
171.9 	reported to them under paragraph (b), clause (2); and
171.10 	(2) pay any additional amount of tax due as if the final federal adjustment had been 
171.11 	properly reported, plus any penalty and interest due under this chapter, and less any credit 
171.12 	for related amounts paid or withheld and remitted on behalf of the direct partner under 
171.13 	paragraph (b), clauses (3) and (4).

171.14 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
171.15 	after December 31, 2020.

171.16 	ARTICLE 11
171.17 	DEPARTMENT OF REVENUE POLICY AND TECHNICAL: SALES AND USE 
171.18 	TAXES AND SPECIAL TAXES

171.19 	Section 1. Minnesota Statutes 2020, section 296A.083, subdivision 3, is amended to read:
171.20 		Subd. 3.Surcharge rate. (a) By July 16, 2008, and each April 1 thereafter May 1 each 
171.21 	year, the commissioner of revenue shall calculate and publish a surcharge as provided in 
171.22 	paragraphs paragraph (b) and (c). The surcharge is imposed from August 1, 2008, through 
171.23 	June 30, 2009, and each new surcharge thereafter is imposed the following beginning July 
171.24 	1 of the year it is published through June 30 of the following year.
171.25 	(b) For fiscal years 2009 through 2012, the commissioner shall set the surcharge as 
171.26 	specified in the following surcharge rate schedule.

171.27	Surcharge Rate Schedule
	
171.28		Fiscal Year
	Rate (in cents per gallon)
	
171.29		2009
	0.5
		
171.30		2010
	2.1
		
171.31		2011
	2.5
		
171.32		2012
	3.0
		
172.1 	(c) For fiscal year 2013 and thereafter, (b) The commissioner shall set the surcharge at 
172.2 	the lesser of (1) 3.5 cents, or (2) an amount calculated so that the total proceeds from the 
172.3 	surcharge deposited in the trunk highway fund from fiscal year 2009 to the upcoming fiscal 
172.4 	year equals the total amount of debt service from fiscal years 2009 to 2039, and the surcharge 
172.5 	is rounded to the nearest 0.1 cent.

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

172.7 	Sec. 2. Minnesota Statutes 2020, section 297A.61, subdivision 29, is amended to read:
172.8 		Subd. 29.State. Unless specifically provided otherwise, "state" means any state of the 
172.9 	United States, the Commonwealth of Puerto Rico, and the District of Columbia, and any 
172.10 	territory of the United States, including American Samoa, Guam, Northern Mariana Islands, 
172.11 	Puerto Rico, and the U.S. Virgin Islands.

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

172.13 	ARTICLE 12
172.14 	DEPARTMENT OF REVENUE POLICY AND TECHNICAL: FIRE AND POLICE 
172.15 	STATE AIDS

172.16 	Section 1. Minnesota Statutes 2020, section 6.495, subdivision 3, is amended to read:
172.17 		Subd. 3.Report Reports to commissioner of revenue. (a) On or before September 15, 
172.18 	November 1, March 1, and June 1, the state auditor shall must file with the commissioner 
172.19 	of revenue a financial compliance report certifying for each relief association:
172.20 	(1) the completion of the annual financial report required under section 424A.014 and 
172.21 	the auditing or certification of those financial reports under subdivision 1; and
172.22 	(2) the receipt of any actuarial valuations required under section 424A.093 or Laws 
172.23 	2013, chapter 111, article 5, sections 31 to 42.
172.24 	(b) The commissioner of revenue shall prescribe the content, format, and manner of the 
172.25 	financial compliance reports required by paragraph (a), pursuant to section 270C.30.

172.26 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2023 
172.27 	and thereafter.

172.28 	Sec. 2. Minnesota Statutes 2020, section 477B.01, is amended by adding a subdivision to 
172.29 	read:
172.30 		Subd. 1a.Apportionment agreement. "Apportionment agreement" means an agreement 
172.31 	between two or more fire departments that provide contracted fire protection service to the 
173.1 	same municipality and establishes the percentage of the population and the percentage of 
173.2 	the estimated market value within the municipality serviced by each fire department.

173.3 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2023 
173.4 	and thereafter.

173.5 	Sec. 3. Minnesota Statutes 2020, section 477B.01, subdivision 5, is amended to read:
173.6 		Subd. 5.Fire department. (a) "Fire department" includes means:
173.7 	(1) a municipal fire department and;
173.8 	(2) an independent nonprofit firefighting corporation.;
173.9 	(3) a fire department established as or operated by a joint powers entity; or
173.10 	(4) a fire protection special taxing district established under chapter 144F or special law.
173.11 	(b) This subdivision only applies to this chapter.

173.12 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2023 
173.13 	and thereafter.

173.14 	Sec. 4. Minnesota Statutes 2020, section 477B.01, is amended by adding a subdivision to 
173.15 	read:
173.16 		Subd. 7a.Joint powers entity. "Joint powers entity" means a joint powers entity created 
173.17 	under section 471.59.

173.18 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2023 
173.19 	and thereafter.

173.20 	Sec. 5. Minnesota Statutes 2020, section 477B.01, subdivision 10, is amended to read:
173.21 		Subd. 10.Municipality. (a) "Municipality" means:
173.22 	(1) a home rule charter or statutory city;
173.23 	(2) an organized town;
173.24 	(3) a park district subject to chapter 398 a joint powers entity;
173.25 	(4) the University of Minnesota a fire protection special taxing district; and or
173.26 	(5) an American Indian tribal government entity located within a federally recognized 
173.27 	American Indian reservation.
173.28 	(b) This subdivision only applies to this chapter 477B.

174.1 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2023 
174.2 	and thereafter.

174.3 	Sec. 6. Minnesota Statutes 2020, section 477B.01, subdivision 11, is amended to read:
174.4 		Subd. 11.Secretary. (a) "Secretary" means:
174.5 	(1) the secretary of an independent nonprofit firefighting corporation that has a subsidiary 
174.6 	incorporated firefighters' relief association or whose firefighters participate in the statewide 
174.7 	volunteer firefighter plan.; or
174.8 	(2) the secretary of a joint powers entity or fire protection special taxing district or, if 
174.9 	there is no such person, the person primarily responsible for managing the finances of a 
174.10 	joint powers entity or fire protection special taxing district.
174.11 	(b) This subdivision only applies to this chapter.

174.12 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2023 
174.13 	and thereafter.

174.14 	Sec. 7. Minnesota Statutes 2020, section 477B.02, subdivision 2, is amended to read:
174.15 		Subd. 2.Establishment of fire department. (a) An independent nonprofit firefighting 
174.16 	corporation must be created under the nonprofit corporation act of this state operating for 
174.17 	the exclusive purpose of firefighting, or the governing body of a municipality must officially 
174.18 	establish a fire department.
174.19 	(b) The fire department must have provided firefighting services for at least one calendar 
174.20 	year, and must have a current fire department identification number issued by the state fire 
174.21 	marshal.

174.22 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2023 
174.23 	and thereafter.

174.24 	Sec. 8. Minnesota Statutes 2020, section 477B.02, subdivision 3, is amended to read:
174.25 		Subd. 3.Personnel and Benefits requirements. (a) A fire department must have a 
174.26 	minimum of ten paid or volunteer firefighters, including a fire chief and assistant fire chief.
174.27 	(b) The fire department must have regular scheduled meetings and frequent drills that 
174.28 	include instructions in firefighting tactics and in the use, care, and operation of all fire 
174.29 	apparatus and equipment.
175.1 	(c) (a) The fire department must have a separate subsidiary incorporated firefighters' 
175.2 	relief association that provides retirement benefits or must participate in the statewide 
175.3 	volunteer firefighter plan; or if the municipality solely employs full-time firefighters as 
175.4 	defined in section 299N.03, subdivision 5, retirement coverage must be provided by the 
175.5 	public employees police and fire retirement plan. For purposes of retirement benefits, a fire 
175.6 	department may be associated with only one volunteer firefighters' relief association or one 
175.7 	account in the voluntary statewide volunteer firefighter retirement plan at one time.
175.8 	(d) (b) Notwithstanding paragraph (c) (a), a municipality without a relief association as 
175.9 	described under section 424A.08, paragraph (a), may still qualify to receive fire state aid if 
175.10 	all other requirements of this section are met.

175.11 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2023 
175.12 	and thereafter.

175.13 	Sec. 9. Minnesota Statutes 2020, section 477B.02, is amended by adding a subdivision to 
175.14 	read:
175.15 		Subd. 4a.Public safety answering point requirement. The fire department must be 
175.16 	dispatched by a public safety answering point as defined in section 403.02, subdivision 19.

175.17 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2023 
175.18 	and thereafter.

175.19 	Sec. 10. Minnesota Statutes 2020, section 477B.02, subdivision 5, is amended to read:
175.20 		Subd. 5.Fire service contract or agreement; apportionment agreement filing 
175.21 	requirement requirements. (a) Every municipality or independent nonprofit firefighting 
175.22 	corporation must file a copy of any duly executed and valid fire service contract or agreement
175.23 	with the commissioner (1) a copy of any duly executed and valid fire service contracts, (2) 
175.24 	written notification of any fire service contract terminations, and (3) written notification of 
175.25 	any dissolution of a fire department, within 60 days of contract execution or termination, 
175.26 	or department dissolution.
175.27 	(b) If more than one fire department provides service to a municipality, the fire 
175.28 	departments furnishing service must enter into an agreement apportioning among themselves 
175.29 	the percentage of the population and the percentage of the estimated market value of each 
175.30 	shared service fire department service area. The agreement must be in writing and must be 
175.31 	filed file an apportionment agreement with the commissioner.
176.1 	(c) When a municipality is a joint powers entity, it must file its joint powers agreement 
176.2 	with the commissioner. If the joint powers agreement does not include sufficient information 
176.3 	defining the fire department service area of the joint powers entity for the purposes of 
176.4 	calculating fire state aid, the secretary must file a written statement with the commissioner 
176.5 	defining the fire department service area.
176.6 	(d) When a municipality is a fire protection special taxing district, it must file its 
176.7 	resolution establishing the fire protection special taxing district, and any agreements required 
176.8 	for the establishment of the fire protection special taxing district, with the commissioner. 
176.9 	If the resolution or agreement does not include sufficient information defining the fire 
176.10 	department service area of the fire protection special taxing district, the secretary must file 
176.11 	a written statement with the commissioner defining the fire department service area.
176.12 	(e) The commissioner shall prescribe the content, format, and manner of the notifications, 
176.13 	apportionment agreements, and written statements under paragraphs (a) to (d), pursuant to 
176.14 	section 270C.30, except that copies of fire service contracts, joint powers agreements, and 
176.15 	resolutions establishing fire protection special taxing districts shall be filed in their existing 
176.16 	form.
176.17 	(f) A document filed with the commissioner under this subdivision must be refiled any 
176.18 	time it is updated within 60 days of the update. An apportionment agreement must be refiled 
176.19 	only when a change in the averaged sum of the percentage of population and percentage of 
176.20 	estimated market value serviced by a fire department subject to the apportionment agreement 
176.21 	is at least one percent. The percentage amount must be rounded to the nearest whole 
176.22 	percentage.
176.23 	(g) Upon the request of the commissioner, the county auditor must provide information 
176.24 	that the commissioner requires to accurately apportion the estimated market value of a fire 
176.25 	department service area for a fire department providing service to an unorganized territory 
176.26 	located in the county.

176.27 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2023 
176.28 	and thereafter.

176.29 	Sec. 11. Minnesota Statutes 2020, section 477B.02, subdivision 8, is amended to read:
176.30 		Subd. 8.PERA certification to commissioner. On or before February 1 each year, if 
176.31 	retirement coverage for a fire department is provided by the statewide volunteer firefighter 
176.32 	plan, the executive director of the Public Employees Retirement Association must certify 
176.33 	the existence of retirement coverage. to the commissioner the fire departments that transferred 
177.1 	retirement coverage to, or terminated participation in, the voluntary statewide volunteer 
177.2 	firefighter retirement plan since the previous certification under this paragraph. This 
177.3 	certification must include the number of active volunteer firefighters under section 477B.03, 
177.4 	subdivision 5, paragraph (e).

177.5 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2023 
177.6 	and thereafter.

177.7 	Sec. 12. Minnesota Statutes 2020, section 477B.02, subdivision 9, is amended to read:
177.8 		Subd. 9.Fire department certification to commissioner. On or before March 15 of 
177.9 	each year, the municipal clerk or the secretary, and the fire chief, must jointly certify to the 
177.10 	commissioner that the fire department exists and meets the qualification requirements of 
177.11 	this section the fire department service area as of December 31 of the previous year, and 
177.12 	that the fire department meets the qualification requirements of this section. The municipal 
177.13 	clerk or the secretary must provide the commissioner with documentation that the 
177.14 	commissioner deems necessary for determining eligibility for fire state aid or for calculating 
177.15 	and apportioning fire state aid under section 477B.03. The commissioner shall prescribe 
177.16 	the content, format, and manner of the certification must be on a form prescribed by the 
177.17 	commissioner and must include all other information that the commissioner requires pursuant 
177.18 	to section 270C.30. The municipal clerk or the secretary must send a copy of the certification 
177.19 	filed under this subdivision to the fire chief within five business days of the date the 
177.20 	certification was filed with the commissioner.

177.21 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2023 
177.22 	and thereafter.

177.23 	Sec. 13. Minnesota Statutes 2020, section 477B.03, subdivision 2, is amended to read:
177.24 		Subd. 2.Apportionment of fire state aid. (a) The amount of fire state aid available for 
177.25 	apportionment, before the addition of the minimum fire state aid allocation amount under 
177.26 	subdivision 5, is equal to 107 percent of the amount of premium taxes paid to the state upon 
177.27 	the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the 
177.28 	commissioner by companies or insurance companies on the Minnesota Fire Premium Report, 
177.29 	except that credits claimed under section 297I.20, subdivisions 3, 4, and 5, do not affect the 
177.30 	calculation of the amount of fire state aid available for apportionment. This amount must 
177.31 	be reduced by the amount required to pay the state auditor's costs and expenses of the audits 
177.32 	or exams of the firefighters' relief associations.
178.1 	(b) The total amount available for apportionment must not be less than two percent of 
178.2 	the premiums less return premiums reported to the commissioner by companies or insurance 
178.3 	companies on the Minnesota Fire Premium Report after subtracting the following amounts:
178.4 	(1) the amount required to pay the state auditor's costs and expenses of the audits or 
178.5 	exams of the firefighters' relief associations; and
178.6 	(2) one percent of the premiums reported by township mutual insurance companies and 
178.7 	mutual property and casualty companies with total assets of $5,000,000 or less.
178.8 	(c) The commissioner must apportion the fire state aid to each municipality or independent 
178.9 	nonprofit firefighting corporation qualified under section 477B.02 relative to the premiums 
178.10 	reported on the Minnesota Fire Premium Reports filed under this chapter.
178.11 	(d) The commissioner must calculate the percentage of increase or decrease reflected in 
178.12 	the apportionment over or under the previous year's available state aid using the same 
178.13 	premiums as a basis for comparison.

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

178.15 	Sec. 14. Minnesota Statutes 2020, section 477B.03, subdivision 3, is amended to read:
178.16 		Subd. 3.Population and estimated market value. (a) Official statewide federal census 
178.17 	figures The most recent population estimates made by the state demographer pursuant to 
178.18 	section 4A.02, paragraph (d), must be used in calculations requiring the use of population 
178.19 	figures under this chapter. Increases or decreases in population disclosed by reason of any 
178.20 	special census must not be taken into consideration.
178.21 	(b) The latest available estimated market value property figures for the assessment year 
178.22 	immediately preceding the year the aid is distributed must be used in calculations requiring 
178.23 	the use of estimated market value property figures under this chapter.

178.24 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2023 
178.25 	and thereafter.

178.26 	Sec. 15. Minnesota Statutes 2020, section 477B.03, subdivision 4, is amended to read:
178.27 		Subd. 4.Initial fire state aid allocation amount. (a) The initial fire state aid allocation 
178.28 	amount is the amount available for apportionment as fire state aid under subdivision 2, 
178.29 	without the inclusion of any additional funding amount to support a minimum fire state aid 
178.30 	amount under section 423A.02, subdivision 3. The initial fire state aid allocation amount 
178.31 	is allocated one-half in proportion to the population for each fire department service area 
179.1 	and one-half in proportion to the estimated market value of each fire department service 
179.2 	area, including (1) the estimated market value of tax-exempt property, and (2) the estimated 
179.3 	market value of natural resources lands receiving in lieu payments under sections 477A.11 
179.4 	to 477A.14 and 477A.17. The estimated market value of minerals is excluded.
179.5 	(b) In the case of a municipality or independent nonprofit firefighting corporation 
179.6 	furnishing fire protection to other municipalities as evidenced by valid fire service contracts, 
179.7 	joint powers agreements, resolutions, and other supporting documents filed with the 
179.8 	commissioner under section 477B.02, subdivision 5, the distribution must be adjusted 
179.9 	proportionately to take into consideration the crossover fire protection service. Necessary 
179.10 	adjustments must be made to subsequent apportionments.
179.11 	(c) In the case of municipalities or independent nonprofit firefighting corporations 
179.12 	qualifying for aid, the commissioner must calculate the state aid for the municipality or 
179.13 	independent nonprofit firefighting corporation on the basis of the population and the estimated 
179.14 	market value of the area furnished fire protection service by the fire department as evidenced 
179.15 	by valid fire service agreements contracts, joint powers agreements, resolutions, and other 
179.16 	supporting documents filed with the commissioner under section 477B.02, subdivision 5.
179.17 	(d) In the case of more than one fire department furnishing contracted fire service to a 
179.18 	municipality, the population and estimated market value in the apportionment agreement 
179.19 	filed with the commissioner under section 477B.02, subdivision 5, must be used in calculating 
179.20 	the state aid.

179.21 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2023 
179.22 	and thereafter.

179.23 	Sec. 16. Minnesota Statutes 2020, section 477B.03, subdivision 5, is amended to read:
179.24 		Subd. 5.Minimum fire state aid allocation amount. (a) The minimum fire state aid 
179.25 	allocation amount is the amount derived from any additional funding amount to support a 
179.26 	minimum fire state aid amount under section 423A.02, subdivision 3. The minimum fire 
179.27 	state aid allocation amount is allocated to municipalities or independent nonprofit firefighting 
179.28 	corporations with volunteer firefighters' relief associations or covered by the statewide 
179.29 	volunteer firefighter plan. The amount is based on the number of active volunteer firefighters 
179.30 	who are (1) members of the relief association as reported to the Office of the State Auditor 
179.31 	in a specific annual financial reporting year as specified in paragraphs (b) to (d), or (2) 
179.32 	covered by the statewide volunteer firefighter plan as specified in paragraph (e).
180.1 	(b) For relief associations established in calendar year 1993 or a prior year, the number 
180.2 	of active volunteer firefighters equals the number of active volunteer firefighters who were 
180.3 	members of the relief association as reported in the annual financial reporting for calendar 
180.4 	year 1993, but not to exceed 30 active volunteer firefighters.
180.5 	(c) For relief associations established in calendar year 1994 through calendar year 1999, 
180.6 	the number of active volunteer firefighters equals the number of active volunteer firefighters 
180.7 	who were members of the relief association as reported in the annual financial reporting for 
180.8 	calendar year 1998 to the Office of the State Auditor, but not to exceed 30 active volunteer 
180.9 	firefighters.
180.10 	(d) For relief associations established after calendar year 1999, the number of active 
180.11 	volunteer firefighters equals the number of active volunteer firefighters who are members 
180.12 	of the relief association as reported in the first annual financial reporting submitted to the 
180.13 	Office of the State Auditor, but not to exceed 20 active volunteer firefighters.
180.14 	(e) If a relief association is terminated as a result of For a municipality or independent 
180.15 	nonprofit firefighting corporation that is providing retirement coverage for volunteer 
180.16 	firefighters by the statewide volunteer firefighter plan under chapter 353G, the number of 
180.17 	active volunteer firefighters equals the number of active volunteer firefighters of the 
180.18 	municipality or independent nonprofit firefighting corporation covered by the statewide 
180.19 	plan as certified by the executive director of the Public Employees Retirement Association 
180.20 	to the commissioner and the state auditor by February 1 immediately following the date the 
180.21 	municipality or independent nonprofit firefighting corporation begins coverage in the plan, 
180.22 	but not to exceed 30 active firefighters.

180.23 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2023 
180.24 	and thereafter.

180.25 	Sec. 17. Minnesota Statutes 2020, section 477B.03, subdivision 7, is amended to read:
180.26 		Subd. 7.Appeal. A municipality, an independent nonprofit firefighting corporation, a 
180.27 	fire relief association, or the statewide volunteer firefighter plan may object to the amount 
180.28 	of fire state aid apportioned to it by filing a written request with the commissioner to review 
180.29 	and adjust the apportionment of funds within the state. The objection of a municipality, an 
180.30 	independent nonprofit firefighting corporation, a fire relief association, or the voluntary 
180.31 	statewide volunteer firefighter retirement plan must be filed with the commissioner within 
180.32 	60 days of the date the amount of apportioned fire state aid is paid. The decision of the 
180.33 	commissioner is subject to appeal, review, and adjustment by the district court in the county 
180.34 	in which the applicable municipality or independent nonprofit firefighting corporation is 
181.1 	located or by the Ramsey County District Court with respect to the statewide volunteer 
181.2 	firefighter plan.

181.3 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2023 
181.4 	and thereafter.

181.5 	Sec. 18. Minnesota Statutes 2020, section 477B.04, subdivision 1, is amended to read:
181.6 		Subdivision 1.Payments. (a) The commissioner must make payments to the Public 
181.7 	Employees Retirement Association for deposit in the statewide volunteer firefighter fund 
181.8 	on behalf of a municipality or independent nonprofit firefighting corporation that is a member 
181.9 	of the statewide volunteer firefighter plan under chapter 353G, or directly to a municipality 
181.10 	or county designated by an independent nonprofit firefighting corporation. The commissioner 
181.11 	must directly pay all other municipalities qualifying for fire state aid, except as provided in 
181.12 	paragraph (d). The payment is equal to the amount of fire state aid apportioned to the 
181.13 	applicable fire state aid recipient under section 477B.03.
181.14 	(b) Fire state aid is payable on October 1 annually. The amount of state aid due and not 
181.15 	paid by October 1 accrues interest payable to the recipient at the rate of one percent for each 
181.16 	month or part of a month that the amount remains unpaid after October 1.
181.17 	(c) If the commissioner of revenue does not receive a financial compliance report 
181.18 	described in section 6.495, subdivision 3, for a relief association, the amount of fire state 
181.19 	aid apportioned to a municipality or independent nonprofit firefighting corporation under 
181.20 	section 477B.03 for that relief association must be withheld from payment to the Public 
181.21 	Employees Retirement Association or the municipality. The commissioner of revenue must 
181.22 	issue a withheld payment within ten business days of receipt of a financial compliance report 
181.23 	under section 6.495, subdivision 3. The interest under paragraph (b) does not apply when
181.24 	to a payment has not been made by October 1 due to noncompliance with sections 424A.014
181.25 	and 477B.02, subdivision 7 withheld under this paragraph.
181.26 	(d) The commissioner must make payments directly to the largest municipality in 
181.27 	population located within any area included in a joint powers entity that does not have a 
181.28 	designated agency under section 471.59, subdivision 3, or within the fire department service 
181.29 	area of an eligible independent nonprofit firefighting corporation. If there is no city or town 
181.30 	within the fire department service area of an eligible independent nonprofit firefighting 
181.31 	corporation, fire state aid must be paid to the county where the independent nonprofit 
181.32 	firefighting corporation is located.

182.1 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2023 
182.2 	and thereafter.

182.3 	Sec. 19. Minnesota Statutes 2020, section 477B.04, is amended by adding a subdivision 
182.4 	to read:
182.5 		Subd. 4.Aid amount corrections. (a) An adjustment needed to correct a fire state aid 
182.6 	overpayment or underpayment due to a clerical error must be made to subsequent fire state 
182.7 	aid payments as provided in paragraphs (b) and (c). The authority to correct an aid payment 
182.8 	under this subdivision is limited to three years after the payment was issued.
182.9 	(b) If an overpayment equals more than ten percent of the most recently paid aid amount, 
182.10 	the commissioner must reduce the aid a municipality or independent nonprofit firefighting 
182.11 	corporation is to receive by the amount overpaid over a period of no more than three years. 
182.12 	If an overpayment equals or is less than ten percent of the most recently paid aid amount, 
182.13 	the commissioner must reduce the next aid payment occurring in 30 days or more by the 
182.14 	amount overpaid.
182.15 	(c) In the event of an underpayment, the commissioner must distribute the amount of 
182.16 	underpaid funds to the municipality or independent nonprofit firefighting corporation over 
182.17 	a period of no more than three years. An additional distribution to a municipality or 
182.18 	independent nonprofit firefighting corporation must be paid from the general fund and must 
182.19 	not diminish the payments made to other municipalities or independent nonprofit firefighting 
182.20 	corporations under this chapter.

182.21 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2023 
182.22 	and thereafter.

182.23 	Sec. 20. Minnesota Statutes 2020, section 477C.03, subdivision 2, is amended to read:
182.24 		Subd. 2.Apportionment of police state aid. (a) The total amount available for 
182.25 	apportionment as police state aid is equal to 104 percent of the amount of premium taxes 
182.26 	paid to the state on the premiums reported to the commissioner by companies or insurance 
182.27 	companies on the Minnesota Aid to Police Premium Report, except that credits claimed 
182.28 	under section 297I.20, subdivisions 3, 4, and 5, do not affect the calculation of the total 
182.29 	amount of police state aid available for apportionment. The total amount for apportionment 
182.30 	for the police state aid program must not be less than two percent of the amount of premiums 
182.31 	reported to the commissioner by companies or insurance companies on the Minnesota Aid 
182.32 	to Police Premium Report.
183.1 	(b) The commissioner must calculate the percentage of increase or decrease reflected in 
183.2 	the apportionment over or under the previous year's available state aid using the same 
183.3 	premiums as a basis for comparison.
183.4 	(c) In addition to the amount for apportionment of police state aid under paragraph (a), 
183.5 	each year $100,000 must be apportioned for police state aid. An amount sufficient to pay 
183.6 	this increase is annually appropriated from the general fund.
183.7 	(d) The commissioner must apportion police state aid to all municipalities in proportion 
183.8 	to the relationship that the total number of peace officers employed by that municipality for 
183.9 	the prior calendar year and the proportional or fractional number who were employed less 
183.10 	than a calendar year as credited under section 477C.02, subdivision 1, paragraph (c), bears 
183.11 	to the total number of peace officers employed by all municipalities subject to any reduction 
183.12 	under subdivision 3.
183.13 	(e) Any necessary additional adjustments must be made to subsequent police state aid 
183.14 	apportionments.

183.15 	EFFECTIVE DATE. (a) The amendment to paragraph (a) is effective the day following 
183.16 	final enactment.
183.17 	(b) The amendment striking paragraph (e) is effective for aids payable in calendar year 
183.18 	2023 and thereafter.

183.19 	Sec. 21. Minnesota Statutes 2020, section 477C.03, subdivision 5, is amended to read:
183.20 		Subd. 5.Appeal. A municipality may object to the amount of police state aid apportioned 
183.21 	to it by filing a written request with the commissioner to review and adjust the apportionment 
183.22 	of funds to the municipality. The objection of a municipality must be filed with the 
183.23 	commissioner within 60 days of the date the amount of apportioned police state aid is paid.
183.24 	The decision of the commissioner is subject to appeal, review, and adjustment by the district 
183.25 	court in the county in which the applicable municipality is located or by the Ramsey County 
183.26 	District Court with respect to the Departments of Natural Resources or Public Safety.

183.27 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2023 
183.28 	and thereafter.

183.29 	Sec. 22. Minnesota Statutes 2020, section 477C.04, is amended by adding a subdivision 
183.30 	to read:
183.31 		Subd. 4.Aid amount corrections. (a) An adjustment needed to correct a police state 
183.32 	aid overpayment or underpayment due to a clerical error must be made to subsequent police 
184.1 	state aid payments as provided in paragraphs (b) and (c). The authority to correct an aid 
184.2 	payment under this subdivision is limited to three years after the payment was issued.
184.3 	(b) If an overpayment equals more than ten percent of the most recently paid aid amount, 
184.4 	the commissioner must reduce the aid a municipality is to receive by the amount overpaid 
184.5 	over a period of no more than three years. If an overpayment equals or is less than ten 
184.6 	percent of the most recently paid aid amount, the commissioner must reduce the next aid 
184.7 	payment occurring in 30 days or more by the amount overpaid.
184.8 	(c) In the event of an underpayment, the commissioner must distribute the amount of 
184.9 	underpaid funds to the municipality over a period of no more than three years. An additional 
184.10 	distribution to a municipality must be paid from the general fund and must not diminish the 
184.11 	payments made to other municipalities under this chapter.

184.12 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2023 
184.13 	and thereafter.

184.14 	Sec. 23. REPEALER.
 184.15 	Minnesota Statutes 2020, sections 477B.02, subdivision 4; and 477B.03, subdivision 6,
184.16 	are repealed.

184.17 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2023 
184.18 	and thereafter.

184.19 	ARTICLE 13
184.20 	DEPARTMENT OF REVENUE POLICY AND TECHNICAL: MISCELLANEOUS 
184.21 	TAX PROVISIONS

184.22 	Section 1. Minnesota Statutes 2020, section 290A.03, subdivision 13, is amended to read:
184.23 		Subd. 13.Property taxes payable. "Property taxes payable" means the property tax 
184.24 	exclusive of special assessments, penalties, and interest payable on a claimant's homestead 
184.25 	after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2, 
184.26 	and any other state paid property tax credits in any calendar year, and after any refund 
184.27 	claimed and allowable under section 290A.04, subdivision 2h, that is first payable in the 
184.28 	year that the property tax is payable. In the case of a claimant who makes ground lease 
184.29 	payments, "property taxes payable" includes the amount of the payments directly attributable 
184.30 	to the property taxes assessed against the parcel on which the house is located. Regardless 
184.31 	of the limitations in section 280A(c)(5) of the Internal Revenue Code, "property taxes 
184.32 	payable" must be apportioned or reduced for the use of a portion of the claimant's homestead 
185.1 	for a business purpose if the claimant deducts any business depreciation expenses for the 
185.2 	use of a portion of the homestead or deducts expenses under section 280A of the Internal 
185.3 	Revenue Code for a business operated in the claimant's homestead. For homesteads which 
185.4 	are manufactured homes as defined in section 273.125, subdivision 8, including manufactured 
185.5 	homes located in a manufactured home community owned by a cooperative organized under 
185.6 	chapter 308A or 308B, and park trailers taxed as manufactured homes under section 168.012, 
185.7 	subdivision 9, "property taxes payable" shall also include 17 percent of the gross rent paid 
185.8 	in the preceding year for the site on which the homestead is located. When a homestead is 
185.9 	owned by two or more persons as joint tenants or tenants in common, such tenants shall 
185.10 	determine between them which tenant may claim the property taxes payable on the 
185.11 	homestead. If they are unable to agree, the matter shall be referred to the commissioner of 
185.12 	revenue whose decision shall be final. Property taxes are considered payable in the year 
185.13 	prescribed by law for payment of the taxes.
185.14 	In the case of a claim relating to "property taxes payable," the claimant must have owned 
185.15 	and occupied the homestead on January 2 of the year in which the tax is payable and (i) the 
185.16 	property must have been classified as homestead property pursuant to section 273.124, on 
185.17 	or before December 15 31 of the assessment year to which the "property taxes payable" 
185.18 	relate; or (ii) the claimant must provide documentation from the local assessor that application 
185.19 	for homestead classification has been made on or before December 15 31 of the year in 
185.20 	which the "property taxes payable" were payable and that the assessor has approved the 
185.21 	application.

185.22 	EFFECTIVE DATE. This section is effective for refund claims based on property taxes 
185.23 	payable in 2022 and thereafter.

185.24 	Sec. 2. Minnesota Statutes 2020, section 290A.19, is amended to read:
185.25 	290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE.
185.26 	(a) The owner or managing agent of any property for which rent is paid for occupancy 
185.27 	as a homestead must furnish a certificate of rent paid to a person who is a renter on December 
185.28 	31, in the form prescribed by the commissioner. If the renter moves before December 31, 
185.29 	the owner or managing agent may give the certificate to the renter at the time of moving, 
185.30 	or mail the certificate to the forwarding address if an address has been provided by the 
185.31 	renter. The certificate must be made available to the renter before February 1 of the year 
185.32 	following the year in which the rent was paid. The owner or managing agent must retain a 
185.33 	duplicate of each certificate or an equivalent record showing the same information for a 
186.1 	period of three years. The duplicate or other record must be made available to the 
186.2 	commissioner upon request.
186.3 	(b) The commissioner may require the owner or managing agent, through a simple 
186.4 	process, to furnish to the commissioner on or before March 1 a copy of each certificate of 
186.5 	rent paid furnished to a renter for rent paid in the prior year. The commissioner shall prescribe 
186.6 	the content, format, and manner of the form pursuant to section 270C.30. The commissioner 
186.7 	may require the Social Security number, individual taxpayer identification number, federal 
186.8 	employer identification number, or Minnesota taxpayer identification number of the owner 
186.9 	or managing agent who is required to furnish a certificate of rent paid under this paragraph. 
186.10 	Prior to implementation, the commissioner, after consulting with representatives of owners 
186.11 	or managing agents, shall develop an implementation and administration plan for the 
186.12 	requirements of this paragraph that attempts to minimize financial burdens, administration 
186.13 	and compliance costs, and takes into consideration existing systems of owners and managing 
186.14 	agents.
186.15 	(c) For the purposes of this section, "owner" includes a park owner as defined under 
186.16 	section 327C.01, subdivision 6, and "property" includes a lot as defined under section 
186.17 	327C.01, subdivision 3.

186.18 	EFFECTIVE DATE. This section is effective for refund claims based on rent paid in 
186.19 	2022 and thereafter.

APPENDIX 

Repealed Minnesota Statutes: UEH3669-2 

290.0131 INDIVIDUALS; ADDITIONS TO FEDERAL TAXABLE INCOME.Subd. 15.529 plan addition. 
The lesser of the following amounts is an addition: 

(1) the total distributions for the taxable year from a qualified plan under section 529 of the Internal Revenue Code, owned by the taxpayer, that are expended for qualified higher education expenses under section 529(c)(7) of the Internal Revenue Code (expenses for tuition for elementary or secondary public, private, or religious school); or 

(2) the total amount required to be reported to the taxpayer by any trustee of a qualified tuition plan under section 529 of the Internal Revenue Code as earnings on Internal Revenue Service Form 1099Q for the taxable year. 

290.0674 MINNESOTA EDUCATION CREDIT.Subd. 2a.Income. 
(a) For purposes of this section, "income" means the sum of the following: 

(1) federal adjusted gross income as defined in section 62 of the Internal Revenue Code; and 

(2) the sum of the following amounts to the extent not included in clause (1): 

(i) all nontaxable income; 

(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss carryover allowed under section 469(b) of the Internal Revenue Code; 

(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a solvent individual excluded from gross income under section 108(g) of the Internal Revenue Code; 

(iv) cash public assistance and relief; 

(v) any pension or annuity (including railroad retirement benefits, all payments received under the federal Social Security Act, Supplemental Security Income, and veterans benefits), which was not exclusively funded by the claimant or spouse, or which was funded exclusively by the claimant or spouse and which funding payments were excluded from federal adjusted gross income in the years when the payments were made; 

(vi) interest received from the federal or a state government or any instrumentality or political subdivision thereof; 

(vii) workers' compensation; 

(viii) nontaxable strike benefits; 

(ix) the gross amounts of payments received in the nature of disability income or sick pay as a result of accident, sickness, or other disability, whether funded through insurance or otherwise; 

(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 1986, as amended through December 31, 1995; 

(xi) contributions made by the claimant to an individual retirement account, including a qualified voluntary employee contribution; simplified employee pension plan; self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal Revenue Code; 

(xii) nontaxable scholarship or fellowship grants; 

(xiii) the amount of deduction allowed under section 199 of the Internal Revenue Code; 

(xiv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue Code; 

(xv) the amount deducted for tuition expenses under section 222 of the Internal Revenue Code; and 

(xvi) the amount deducted for certain expenses of elementary and secondary school teachers under section 62(a)(2)(D) of the Internal Revenue Code. 

In the case of an individual who files an income tax return on a fiscal year basis, the term "federal adjusted gross income" means federal adjusted gross income reflected in the fiscal year ending in the next calendar year. Federal adjusted gross income may not be reduced by the amount of a net operating loss carryback or carryforward or a capital loss carryback or carryforward allowed for the year. 

(b) "Income" does not include: 

(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102; 

(2) amounts of any pension or annuity that were exclusively funded by the claimant or spouse if the funding payments were not excluded from federal adjusted gross income in the years when the payments were made; 

(3) surplus food or other relief in kind supplied by a governmental agency; 

(4) relief granted under chapter 290A; 

(5) child support payments received under a temporary or final decree of dissolution or legal separation; and 

(6) restitution payments received by eligible individuals and excludable interest as defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, Public Law 107-16. 

290.0681 CREDIT FOR HISTORIC STRUCTURE REHABILITATION.Subd. 10.Sunset. 
This section expires after fiscal year 2022, except that the office's authority to issue credit certificates under subdivision 4 based on allocation certificates that were issued before fiscal year 2023 remains in effect through 2025, and the reporting requirements in subdivision 9 remain in effect through the year following the year in which all allocation certificates have either been canceled or resulted in issuance of credit certificates, or 2026, whichever is earlier. 

477B.02 QUALIFYING FOR FIRE STATE AID.Subd. 4.Equipment requirements. 
The fire department must have all of the following equipment, or the equivalent as determined by the state fire marshal, by December 31 of the year preceding the certification required in subdivision 8: 

(1) a motorized fire truck equipped with: 

(i) a motorized pump; 

(ii) a 250-gallon or larger water tank; 

(iii) 300 feet of one inch or larger fire hose in two lines with combination spray and straight stream nozzles; 

(iv) five-gallon hand pumps - tank extinguisher or equivalent; 

(v) a dry chemical extinguisher or equivalent; 

(vi) ladders; 

(vii) extension ladders; 

(viii) pike poles; 

(ix) crowbars; 

(x) axes; 

(xi) lanterns; and 

(xii) fire coats, helmets, and boots; 

(2) the items in clause (1) suitably housed in a building of good construction with facilities for care of hoses and equipment; 

(3) a reliable and adequate method of receiving fire alarms by telephone or with electric siren and suitable means of sounding an alarm; and 

(4) if response is to be provided outside the corporate limits of the municipality where the fire department is located, another piece of motorized apparatus to make the response. 

477B.03 CALCULATION OF FIRE STATE AID; APPEAL.Subd. 6.Corrective aid adjustments. 
Any adjustments needed to correct prior misallocations must be made to subsequent fire state aid apportionments.