1.1 	A bill for an act
1.2 	relating to financing and operation of state and local government; modifying 
1.3 	provisions governing individual income and corporate franchise taxes, federal 
1.4 	conformity, property taxes, certain state aids, sales and use taxes, minerals taxes, 
1.5 	tax increment financing, local sales and use taxes, local special taxes, provisions 
1.6 	related to public finance, and various other taxes and tax-related provisions; 
1.7 	modifying income tax credits; modifying existing and proposing new subtractions; 
1.8 	modifying provisions related to the taxation of pass-through entities; providing 
1.9 	for certain federal tax conformity; modifying provisions related to reporting of 
1.10 	corporate income; providing a onetime refundable rebate credit; modifying property 
1.11 	tax exemptions, classifications, and refunds; modifying local government aid 
1.12 	calculations; establishing soil and water conservation district aid; providing public 
1.13 	safety aid; providing for certain sales tax exemptions and providing new definitions; 
1.14 	modifying taconite taxes and distributions; modifying provisions related to tax 
1.15 	increment financing and allowing certain special local provisions; authorizing and 
1.16 	modifying certain local taxes; providing for a process to refund the state stadium 
1.17 	bonds; establishing tourism improvement areas; requiring reports; providing for 
1.18 	certain policy and technical modifications; appropriating money;amending 
1.19 	Minnesota Statutes 2022, sections 6.495, subdivision 3; 13.46, subdivision 2; 
1.20 	13.4967, by adding a subdivision; 16A.726; 38.27, subdivision 4; 41B.0391, 
1.21 	subdivisions 1, 2, 4, 6; 103D.905, subdivision 3; 116J.401, subdivision 3; 
1.22 	116J.8737, subdivisions 5, 12; 116U.27, subdivisions 1, 4, 7; 123B.61; 206.95; 
1.23 	270B.14, subdivision 2; 270C.13, subdivision 1; 270C.19, subdivisions 1, 2; 
1.24 	270C.446, subdivision 2; 270C.52, subdivision 2; 272.02, subdivisions 24, 73, 98, 
1.25 	by adding subdivisions; 272.025, subdivision 1; 273.11, subdivisions 12, 23; 
1.26 	273.111, by adding a subdivision; 273.124, subdivisions 6, 13, 13a, 13c, 13d, 14; 
1.27 	273.1245, subdivision 1; 273.128, subdivisions 1, 2, by adding a subdivision; 
1.28 	273.13, subdivisions 22, 25, 34, 35; 273.1315, subdivision 2; 273.1341; 273.1392; 
1.29 	273.41; 278.01, subdivision 1; 279.03, subdivision 1a; 282.261, subdivision 2; 
1.30 	289A.02, subdivision 7, as amended; 289A.08, subdivisions 7, as amended, 7a, 
1.31 	as amended; 289A.382, subdivision 2; 289A.50, by adding a subdivision; 290.01, 
1.32 	subdivisions 7b, 19, 31, as amended; 290.0131, by adding a subdivision; 290.0132, 
1.33 	subdivisions 4, 26, by adding subdivisions; 290.0134, by adding a subdivision; 
1.34 	290.06, subdivisions 2c, as amended, 22, 23, 39, by adding a subdivision; 290.067; 
1.35 	290.0671, subdivisions 1, 7; 290.0674; 290.0677, subdivision 1; 290.0681, 
1.36 	subdivisions 3, 4; 290.0685, subdivision 1; 290.091, subdivision 2, as amended; 
1.37 	290.17, subdivision 4, by adding a subdivision; 290.92, subdivision 20; 290.9705, 
1.38 	subdivision 1; 290A.03, subdivisions 6, 13, 15, as amended; 290A.04, subdivision 
2.1 	2h; 290A.19; 290B.03, subdivision 1; 290B.04, subdivisions 3, 4; 290B.05, 
2.2 	subdivision 1; 291.005, subdivision 1, as amended; 295.50, subdivision 4; 
2.3 	296A.083, subdivision 3; 297A.61, subdivision 29; 297A.67, by adding a 
2.4 	subdivision; 297A.68, subdivision 4, by adding subdivisions; 297A.70, subdivisions 
2.5 	7, 19, 21; 297A.71, subdivisions 51, 52; 297A.99, subdivisions 1, 2, 3; 297A.994, 
2.6 	subdivision 4; 297H.13, subdivision 2; 297I.20, subdivision 4, by adding 
2.7 	subdivisions; 298.015; 298.018, subdivisions 1, 1a; 298.28, subdivisions 5, 7a, by 
2.8 	adding a subdivision; 298.296, subdivision 4; 299C.76, subdivisions 1, 2; 366.095, 
2.9 	subdivision 1; 373.01, subdivision 3; 383B.117, subdivision 2; 383E.21; 410.32; 
2.10 	412.301; 469.033, subdivision 6; 469.053, subdivisions 4, 6; 469.107, subdivision 
2.11 	1; 469.174, subdivisions 14, 27, by adding a subdivision; 469.175, subdivision 6; 
2.12 	469.176, subdivisions 3, 4; 469.1763, subdivisions 2, 3, 4, 6; 469.1771, subdivisions 
2.13 	2, 2a, 3; 473.39, by adding a subdivision; 473F.02, subdivisions 2, 8; 473J.13, 
2.14 	subdivisions 2, 4; 474A.02, subdivisions 22b, 23a; 475.54, subdivision 1; 477A.011, 
2.15 	subdivision 34, by adding subdivisions; 477A.0124, subdivisions 2, 3; 477A.013, 
2.16 	subdivisions 8, 9; 477A.014, subdivision 1; 477A.015; 477A.03, subdivisions 2a, 
2.17 	2b; 477A.12, subdivision 1; 477A.16, subdivision 2; 477B.01, subdivisions 5, 10, 
2.18 	11, by adding subdivisions; 477B.02, subdivisions 2, 3, 5, 8, 9, 10, by adding a 
2.19 	subdivision; 477B.03, subdivisions 2, 3, 4, 5, 7; 477B.04, subdivision 1, by adding 
2.20 	a subdivision; 477C.02, subdivision 4; 477C.03, subdivisions 2, 5; 477C.04, by 
2.21 	adding a subdivision; Laws 1971, chapter 773, section 1, subdivision 2, as amended; 
2.22 	Laws 1993, chapter 375, article 9, section 46, as amended; Laws 1998, chapter 
2.23 	389, article 8, section 43, as amended; Laws 2003, chapter 127, article 10, section 
2.24 	31, subdivision 1, as amended; Laws 2006, chapter 259, article 11, section 3, as 
2.25 	amended; Laws 2008, chapter 366, article 5, sections 26, as amended; 36, 
2.26 	subdivisions 1, 3, as amended; article 7, sections 17; 20, as amended; article 17, 
2.27 	section 6; Laws 2011, First Special Session chapter 7, article 4, section 14; Laws 
2.28 	2014, chapter 308, article 6, section 12, subdivision 2; Laws 2019, First Special 
2.29 	Session chapter 6, article 6, sections 13, subdivisions 3, 4, by adding a subdivision; 
2.30 	18; 26; article 7, section 7; Laws 2021, First Special Session chapter 14, article 8, 
2.31 	sections 5; 6, subdivisions 2, 3; 15, subdivisions 2, 3, 4, by adding a subdivision; 
2.32 	20, subdivision 4; article 9, section 10; Laws 2023, chapter 1, section 15; proposing 
2.33 	coding for new law in Minnesota Statutes, chapters 204B; 290; 477A; proposing 
2.34 	coding for new law as Minnesota Statutes, chapters 116X; 428B; repealing 
2.35 	Minnesota Statutes 2022, sections 16A.965; 41B.0391, subdivision 7; 290.0132, 
2.36 	subdivision 33; 290.0681, subdivision 10; 297E.021; 477A.011, subdivisions 30a, 
2.37 	38, 42, 45; 477A.013, subdivision 13; 477B.02, subdivision 4; 477B.03, subdivision 
2.38 	6.
2.39 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.40 	ARTICLE 1
2.41 	INCOME AND CORPORATE FRANCHISE TAXES

2.42 	Section 1. Minnesota Statutes 2022, section 13.4967, is amended by adding a subdivision 
2.43 	to read:
2.44 		Subd. 9.New markets tax credit. Disclosure of information regarding issuance of new 
2.45 	market tax credit certificates is governed under section 270B.14, subdivision 2, paragraph 
2.46 	(a), clause (4).

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

3.1 	Sec. 2. Minnesota Statutes 2022, section 41B.0391, subdivision 1, is amended to read:
3.2 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
3.3 	the meanings given.
3.4 	(b) "Agricultural assets" means agricultural land, livestock, facilities, buildings, and 
3.5 	machinery used for farming in Minnesota.
3.6 	(c) "Beginning farmer" means an individual who:
3.7 	(1) is a resident of Minnesota;
3.8 	(2) is seeking entry, or has entered within the last ten years, into farming;
3.9 	(3) intends to farm land located within the state borders of Minnesota;
3.10 	(4) except as provided in subdivision 2, paragraph (f), is not and whose spouse is not a 
3.11 	family member of the owner of the agricultural assets from whom the beginning farmer is 
3.12 	seeking to purchase or rent agricultural assets;
3.13 	(5) except as provided in subdivision 2, paragraph (f), is not and whose spouse is not a 
3.14 	family member of a partner, member, shareholder, or trustee of the owner of agricultural 
3.15 	assets from whom the beginning farmer is seeking to purchase or rent agricultural assets; 
3.16 	and
3.17 	(6) meets the following eligibility requirements as determined by the authority:
3.18 	(i) has a net worth that does not exceed the limit provided under section 41B.03, 
3.19 	subdivision 3, paragraph (a), clause (2);
3.20 	(ii) provides the majority of the day-to-day physical labor and management of the farm;
3.21 	(iii) has, by the judgment of the authority, adequate farming experience or demonstrates 
3.22 	knowledge in the type of farming for which the beginning farmer seeks assistance from the 
3.23 	authority;
3.24 	(iv) demonstrates to the authority a profit potential by submitting projected earnings 
3.25 	statements;
3.26 	(v) asserts to the satisfaction of the authority that farming will be a significant source 
3.27 	of income for the beginning farmer;
3.28 	(vi) is enrolled in or has completed within ten years of their first year of farming a 
3.29 	financial management program approved by the authority or the commissioner of agriculture;
4.1 	(vii) agrees to notify the authority if the beginning farmer no longer meets the eligibility 
4.2 	requirements within the three-year certification period, in which case the beginning farmer 
4.3 	is no longer eligible for credits under this section; and
4.4 	(viii) has other qualifications as specified by the authority.
4.5 	The authority may waive the requirement in item (vi) if the participant requests a waiver 
4.6 	and has a four-year degree in an agricultural program or related field, reasonable agricultural 
4.7 	job-related experience, or certification as an adult farm management instructor.
4.8 	(d) "Family member" means a family member within the meaning of the Internal Revenue 
4.9 	Code, section 267(c)(4).
4.10 	(e) "Farm product" means plants and animals useful to humans and includes, but is not 
4.11 	limited to, forage and sod crops, oilseeds, grain and feed crops, dairy and dairy products, 
4.12 	poultry and poultry products, livestock, fruits, and vegetables.
4.13 	(f) "Farming" means the active use, management, and operation of real and personal 
4.14 	property for the production of a farm product.
4.15 	(g) "Owner of agricultural assets" means an individual, trust, or pass-through entity that 
4.16 	is the owner in fee of agricultural land or has legal title to any other agricultural asset. Owner 
4.17 	of agricultural assets does not mean an equipment dealer, livestock dealer defined in section 
4.18 	17A.03, subdivision 7, or comparable entity that is engaged in the business of selling 
4.19 	agricultural assets for profit and that is not engaged in farming as its primary business 
4.20 	activity. An owner of agricultural assets approved and certified by the authority under 
4.21 	subdivision 4 must notify the authority if the owner no longer meets the definition in this 
4.22 	paragraph within the three year certification period and is then no longer eligible for credits 
4.23 	under this section.
4.24 	(h) "Resident" has the meaning given in section 290.01, subdivision 7.
4.25 	(i) "Share rent agreement" means a rental agreement in which the principal consideration 
4.26 	given to the owner of agricultural assets is a predetermined portion of the production of 
4.27 	farm products produced from the rented agricultural assets and which provides for sharing 
4.28 	production costs or risk of loss, or both.

4.29 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
4.30 	31, 2022.

5.1 	Sec. 3. Minnesota Statutes 2022, section 41B.0391, subdivision 2, is amended to read:
5.2 		Subd. 2.Tax credit for owners of agricultural assets. (a) An owner of agricultural 
5.3 	assets may take a credit against the tax due under chapter 290 for the sale or rental of 
5.4 	agricultural assets to a beginning farmer in the amount allocated by the authority under 
5.5 	subdivision 4. An owner of agricultural assets is eligible for allocation of a credit equal to:
5.6 	(1) five eight percent of the lesser of the sale price or the fair market value of the 
5.7 	agricultural asset, up to a maximum of $32,000 $50,000;
5.8 	(2) ten percent of the gross rental income in each of the first, second, and third years of 
5.9 	a rental agreement, up to a maximum of $7,000 per year; or
5.10 	(3) 15 percent of the cash equivalent of the gross rental income in each of the first, 
5.11 	second, and third years of a share rent agreement, up to a maximum of $10,000 per year.
5.12 	(b) A qualifying rental agreement includes cash rent of agricultural assets or a share rent 
5.13 	agreement. The agricultural asset must be rented at prevailing community rates as determined 
5.14 	by the authority.
5.15 	(c) The credit may be claimed only after approval and certification by the authority, and 
5.16 	is limited to the amount stated on the certificate issued under subdivision 4. An owner of 
5.17 	agricultural assets must apply to the authority for certification and allocation of a credit, in 
5.18 	a form and manner prescribed by the authority.
5.19 	(d) An owner of agricultural assets or beginning farmer may terminate a rental agreement, 
5.20 	including a share rent agreement, for reasonable cause upon approval of the authority. If a 
5.21 	rental agreement is terminated without the fault of the owner of agricultural assets, the tax 
5.22 	credits shall not be retroactively disallowed. In determining reasonable cause, the authority 
5.23 	must look at which party was at fault in the termination of the agreement. If the authority 
5.24 	determines the owner of agricultural assets did not have reasonable cause, the owner of 
5.25 	agricultural assets must repay all credits received as a result of the rental agreement to the 
5.26 	commissioner of revenue. The repayment is additional income tax for the taxable year in 
5.27 	which the authority makes its decision or when a final adjudication under subdivision 5, 
5.28 	paragraph (a), is made, whichever is later.
5.29 	(e) The credit is limited to the liability for tax as computed under chapter 290 for the 
5.30 	taxable year. If the amount of the credit determined under this section for any taxable year 
5.31 	exceeds this limitation, the excess is a beginning farmer incentive credit carryover according 
5.32 	to section 290.06, subdivision 37.
6.1 	(f) For purposes of the credit for the sale of agricultural land only, the family member 
6.2 	definitional exclusions in subdivision 1, paragraph (c), clauses (4) and (5), do not apply. 
6.3 	For a sale to a family member to qualify for the credit, the sales price of the agricultural 
6.4 	land must equal or exceed the assessed value of the land as of the date of the sale. For 
6.5 	purposes of this paragraph, "sale to a family member" means a sale to a beginning farmer 
6.6 	in which the beginning farmer or the beginning farmer's spouse is a family member of:
6.7 	(1) the owner of the agricultural land; or
6.8 	(2) a partner, member, shareholder, or trustee of the owner of the agricultural land.
6.9 	(g) For a sale to a socially disadvantaged farmer or rancher, the credit rate under paragraph 
6.10 	(a), clause (1), is twelve percent rather than eight percent. For the purposes of this section, 
6.11 	"socially disadvantaged farmer or rancher" has the meaning given in United States Code, 
6.12 	title 7, section 2279(a)(5).

6.13 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
6.14 	31, 2022.

6.15 	Sec. 4. Minnesota Statutes 2022, section 41B.0391, subdivision 4, is amended to read:
6.16 		Subd. 4.Authority duties. (a) The authority shall:
6.17 	(1) approve and certify or recertify beginning farmers as eligible for the program under 
6.18 	this section;
6.19 	(2) approve and certify or recertify owners of agricultural assets as eligible for the tax 
6.20 	credit under subdivision 2 subject to the allocation limits in paragraph (c);
6.21 	(3) provide necessary and reasonable assistance and support to beginning farmers for 
6.22 	qualification and participation in financial management programs approved by the authority;
6.23 	(4) refer beginning farmers to agencies and organizations that may provide additional 
6.24 	pertinent information and assistance; and
6.25 	(5) notwithstanding section 41B.211, the Rural Finance Authority must share information 
6.26 	with the commissioner of revenue to the extent necessary to administer provisions under 
6.27 	this subdivision and section 290.06, subdivisions 37 and 38. The Rural Finance Authority 
6.28 	must annually notify the commissioner of revenue of approval and certification or 
6.29 	recertification of beginning farmers and owners of agricultural assets under this section. 
6.30 	For credits under subdivision 2, the notification must include the amount of credit approved 
6.31 	by the authority and stated on the credit certificate.
7.1 	(b) The certification of a beginning farmer or an owner of agricultural assets under this 
7.2 	section is valid for the year of the certification and the two following years, after which 
7.3 	time the beginning farmer or owner of agricultural assets must apply to the authority for 
7.4 	recertification.
7.5 	(c) For credits for owners of agricultural assets allowed under subdivision 2, the authority 
7.6 	must not allocate more than $5,000,000 for taxable years beginning after December 31, 
7.7 	2017, and before January 1, 2019, and must not allocate more than $6,000,000 for taxable 
7.8 	years beginning after December 31, 2018 $4,000,000 for each taxable year. The authority 
7.9 	must allocate credits on a first-come, first-served basis beginning on January 1 of each year, 
7.10 	except that recertifications for the second and third years of credits under subdivision 2, 
7.11 	paragraph (a), clauses (1) and (2), have first priority. Any amount authorized but not allocated 
7.12 	for taxable years ending before January 1, 2024, are canceled and are not allocated for future 
7.13 	taxable years. For taxable years beginning after December 31, 2023, any amount authorized 
7.14 	but not allocated in any taxable year does not cancel and is added to the allocation for the 
7.15 	next taxable year.

7.16 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
7.17 	31, 2022.

7.18 	Sec. 5. Minnesota Statutes 2022, section 41B.0391, subdivision 6, is amended to read:
7.19 		Subd. 6.Report to legislature. (a) No later than February 1, 2022 2024, the Rural 
7.20 	Finance Authority, in consultation with the commissioner of revenue, must provide a report 
7.21 	to the chairs and ranking minority members of the legislative committees having jurisdiction 
7.22 	over agriculture, economic development, rural development, and taxes, in compliance with 
7.23 	sections 3.195 and 3.197, on the beginning farmer tax credits under this section issued in 
7.24 	tax years beginning after December 31, 2017, and before January 1, 2022 2024.
7.25 	(b) The report must include background information on beginning farmers in Minnesota 
7.26 	and any other information the commissioner and authority find relevant to evaluating the 
7.27 	effect of the credits on increasing opportunities for and the number of beginning farmers.
7.28 	(c) For credits issued under subdivision 2, paragraph (a), clauses (1) to (3), the report 
7.29 	must include:
7.30 	(1) the number and amount of credits issued under each clause;
7.31 	(2) the geographic distribution of credits issued under each clause;
7.32 	(3) the type of agricultural assets for which credits were issued under clause (1);
8.1 	(4) the number and geographic distribution of beginning farmers whose purchase or 
8.2 	rental of assets resulted in credits for the seller or owner of the asset;
8.3 	(5) the number and amount of credits disallowed under subdivision 2, paragraph (d);
8.4 	(6) data on the number of beginning farmers by geographic region in calendar years 
8.5 	2017 through 2021 2023, including:
8.6 	(i) the number of beginning farmers by race and ethnicity, as those terms are applied in 
8.7 	the 2020 United States Census; and
8.8 	(ii) to the extent available, the number of beginning farmers who are members of a 
8.9 	socially disadvantaged group, as defined in United States Code, title 7, section 2279(a)(6); 
8.10 	and
8.11 	(7) the number and amount of credit applications that exceeded the allocation available 
8.12 	in each year.
8.13 	(d) For credits issued under subdivision 3, the report must include:
8.14 	(1) the number and amount of credits issued;
8.15 	(2) the geographic distribution of credits;
8.16 	(3) a listing and description of each approved financial management program for which 
8.17 	credits were issued; and
8.18 	(4) a description of the approval procedure for financial management programs not on 
8.19 	the list maintained by the authority, as provided in subdivision 3, paragraph (a).

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

8.21 	Sec. 6. Minnesota Statutes 2022, section 116J.401, subdivision 3, is amended to read:
8.22 		Subd. 3.Classification and release of data on individuals. (a) Data collected on 
8.23 	individuals pursuant to a program operated by the commissioner are private data on 
8.24 	individuals as defined in section 13.02, subdivision 12, unless more restrictively classified 
8.25 	by law.
8.26 	(b) The commissioner may release to the Department of Revenue data on individuals to 
8.27 	the extent required to administer the new markets tax credit under chapter 116X and sections 
8.28 	290.0693 and 297I.20, subdivision 6.

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

9.1 	Sec. 7. Minnesota Statutes 2022, section 116J.8737, subdivision 5, is amended to read:
9.2 		Subd. 5.Credit allowed. (a) A qualified investor or qualified fund is eligible for a credit 
9.3 	equal to 25 percent of the qualified investment in a qualified small business. Investments 
9.4 	made by a pass-through entity qualify for a credit only if the entity is a qualified fund. The 
9.5 	commissioner must not allocate to qualified investors or qualified funds more than the dollar 
9.6 	amount in credits allowed for the taxable years listed in paragraph (i). For each taxable year, 
9.7 	50 percent must be allocated to credits for qualified investments in qualified greater 
9.8 	Minnesota businesses and minority-owned, women-owned, or veteran-owned qualified 
9.9 	small businesses in Minnesota. Any portion of a taxable year's credits that is reserved for 
9.10 	qualified investments in greater Minnesota businesses and minority-owned, women-owned, 
9.11 	or veteran-owned qualified small businesses in Minnesota that is not allocated by September 
9.12 	30 of the taxable year is available for allocation to other credit applications beginning on 
9.13 	October 1. Any portion of a taxable year's credits that is not allocated by the commissioner 
9.14 	does not cancel and may be carried forward to subsequent taxable years until all credits 
9.15 	have been allocated.
9.16 	(b) The commissioner may not allocate more than a total maximum amount in credits 
9.17 	for a taxable year to a qualified investor for the investor's cumulative qualified investments 
9.18 	as an individual qualified investor and as an investor in a qualified fund; for married couples 
9.19 	filing joint returns the maximum is $250,000, and for all other filers the maximum is 
9.20 	$125,000. The commissioner may not allocate more than a total of $1,000,000 in credits 
9.21 	over all taxable years for qualified investments in any one qualified small business.
9.22 	(c) The commissioner may not allocate a credit to a qualified investor either as an 
9.23 	individual qualified investor or as an investor in a qualified fund if, at the time the investment 
9.24 	is proposed:
9.25 	(1) the investor is an officer or principal of the qualified small business; or
9.26 	(2) the investor, either individually or in combination with one or more members of the 
9.27 	investor's family, owns, controls, or holds the power to vote 20 percent or more of the 
9.28 	outstanding securities of the qualified small business.
9.29 	A member of the family of an individual disqualified by this paragraph is not eligible for a 
9.30 	credit under this section. For a married couple filing a joint return, the limitations in this 
9.31 	paragraph apply collectively to the investor and spouse. For purposes of determining the 
9.32 	ownership interest of an investor under this paragraph, the rules under section 267(c) and 
9.33 	267(e) of the Internal Revenue Code apply.
10.1 	(d) Applications for tax credits must be made available on the department's website by 
10.2 	November 1 of the preceding year.
10.3 	(e) Qualified investors and qualified funds must apply to the commissioner for tax credits. 
10.4 	Tax credits must be allocated to qualified investors or qualified funds in the order that the 
10.5 	tax credit request applications are filed with the department. The commissioner must approve 
10.6 	or reject tax credit request applications within 15 days of receiving the application. The 
10.7 	investment specified in the application must be made within 60 days of the allocation of 
10.8 	the credits. If the investment is not made within 60 days, the credit allocation is canceled 
10.9 	and available for reallocation. A qualified investor or qualified fund that fails to invest as 
10.10 	specified in the application, within 60 days of allocation of the credits, must notify the 
10.11 	commissioner of the failure to invest within five business days of the expiration of the 
10.12 	60-day investment period.
10.13 	(f) All tax credit request applications filed with the department on the same day must 
10.14 	be treated as having been filed contemporaneously. If two or more qualified investors or 
10.15 	qualified funds file tax credit request applications on the same day, and the aggregate amount 
10.16 	of credit allocation claims exceeds the aggregate limit of credits under this section or the 
10.17 	lesser amount of credits that remain unallocated on that day, then the credits must be allocated 
10.18 	among the qualified investors or qualified funds who filed on that day on a pro rata basis 
10.19 	with respect to the amounts claimed. The pro rata allocation for any one qualified investor 
10.20 	or qualified fund is the product obtained by multiplying a fraction, the numerator of which 
10.21 	is the amount of the credit allocation claim filed on behalf of a qualified investor and the 
10.22 	denominator of which is the total of all credit allocation claims filed on behalf of all 
10.23 	applicants on that day, by the amount of credits that remain unallocated on that day for the 
10.24 	taxable year.
10.25 	(g) A qualified investor or qualified fund, or a qualified small business acting on their 
10.26 	behalf, must notify the commissioner when an investment for which credits were allocated 
10.27 	has been made, and the taxable year in which the investment was made. A qualified fund 
10.28 	must also provide the commissioner with a statement indicating the amount invested by 
10.29 	each investor in the qualified fund based on each investor's share of the assets of the qualified 
10.30 	fund at the time of the qualified investment. After receiving notification that the investment 
10.31 	was made, the commissioner must issue credit certificates for the taxable year in which the 
10.32 	investment was made to the qualified investor or, for an investment made by a qualified 
10.33 	fund, to each qualified investor who is an investor in the fund. The certificate must state 
10.34 	that the credit is subject to revocation if the qualified investor or qualified fund does not 
10.35 	hold the investment in the qualified small business for at least three years, consisting of the 
11.1 	calendar year in which the investment was made and the two following years. The three-year 
11.2 	holding period does not apply if:
11.3 	(1) the investment by the qualified investor or qualified fund becomes worthless before 
11.4 	the end of the three-year period;
11.5 	(2) 80 percent or more of the assets of the qualified small business is sold before the end 
11.6 	of the three-year period;
11.7 	(3) the qualified small business is sold before the end of the three-year period;
11.8 	(4) the qualified small business's common stock begins trading on a public exchange 
11.9 	before the end of the three-year period; or
11.10 	(5) the qualified investor dies before the end of the three-year period.
11.11 	(h) The commissioner must notify the commissioner of revenue of credit certificates 
11.12 	issued under this section.
11.13 	(i) The credit allowed under this subdivision is effective as follows:
11.14 	(1) $10,000,000 for taxable years beginning after December 31, 2020, and before January 
11.15 	1, 2022; and
11.16 	(2) $5,000,000 for taxable years beginning after December 31, 2021, and before January 
11.17 	1, 2023 2027.

11.18 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
11.19 	31, 2022.

11.20 	Sec. 8. Minnesota Statutes 2022, section 116J.8737, subdivision 12, is amended to read:
11.21 		Subd. 12.Sunset. This section expires for taxable years beginning after December 31, 
11.22 	2022 2026, except that reporting requirements under subdivision 6 and revocation of credits 
11.23 	under subdivision 7 remain in effect through 2024 2028 for qualified investors and qualified 
11.24 	funds, and through 2026 2030 for qualified small businesses, reporting requirements under 
11.25 	subdivision 9 remain in effect through 2022 2026, and the appropriation in subdivision 11 
11.26 	remains in effect through 2026 2030.

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

11.28 	Sec. 9. Minnesota Statutes 2022, section 116U.27, subdivision 1, is amended to read:
11.29 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
11.30 	the meanings given.
12.1 	(b) "Allocation certificate" means a certificate issued by the commissioner to a taxpayer 
12.2 	upon receipt of an initial application for a credit for a project that has not yet been completed.
12.3 	(c) "Application" means the application for a credit under subdivision 4.
12.4 	(d) "Commissioner" means the commissioner of employment and economic development.
12.5 	(e) "Credit certificate" means a certificate issued by the commissioner upon submission 
12.6 	of the cost verification report in subdivision 4, paragraph (e).
12.7 	(f) "Eligible production costs" means eligible production costs as defined in section 
12.8 	116U.26, paragraph (b), clause (1), incurred in Minnesota that are directly attributable to 
12.9 	the production of a film project in Minnesota.
12.10 	(g) "Film" has the meaning given in section 116U.26, paragraph (b), clause (2).
12.11 	(h) "Project" means a film:
12.12 	(1) that includes the promotion of Minnesota;
12.13 	(2) for which the taxpayer has expended at least $1,000,000 in the taxable year a 
12.14 	consecutive 12-month period beginning when expenditures are first paid in Minnesota for 
12.15 	eligible production costs; and
12.16 	(3) to the extent practicable, that employs Minnesota residents.
12.17 	(i) "Promotion of Minnesota" or "promotion" means visible display of a static or animated 
12.18 	logo, approved by the commissioner and lasting approximately five seconds, that promotes 
12.19 	Minnesota within its presentation in the end credits before the below-the-line crew crawl 
12.20 	for the life of the project.

12.21 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
12.22 	31, 2022.

12.23 	Sec. 10. Minnesota Statutes 2022, section 116U.27, subdivision 4, is amended to read:
12.24 		Subd. 4.Applications; allocations. (a) To qualify for a credit under this section, a 
12.25 	taxpayer must submit to the commissioner an application for a credit in the form prescribed 
12.26 	by the commissioner, in consultation with the commissioner of revenue.
12.27 	(b) Upon approving an application for a credit that meets the requirements of this section, 
12.28 	the commissioner shall issue allocation certificates that:
12.29 	(1) verify eligibility for the credit;
13.1 	(2) state the amount of credit anticipated for the eligible project, with the credit amount 
13.2 	up to 25 percent of eligible project costs; and
13.3 	(3) state the taxable year in which the credit is allocated.
13.4 	The commissioner must consult with the Minnesota Film and TV Board prior to issuing an 
13.5 	allocation certificate.
13.6 	(c) The commissioner must not issue allocation certificates for more than $4,950,000
13.7 	$9,950,000 of credits each year. If the entire amount is not allocated in that taxable year, 
13.8 	any remaining amount is available for allocation for the four following taxable years until 
13.9 	the entire allocation has been made Any amount authorized but not allocated for taxable 
13.10 	years ending before January 1, 2024, are canceled and are not allocated for future taxable 
13.11 	years. For taxable years beginning after December 31, 2023, any amount authorized but not 
13.12 	allocated in any taxable year does not cancel and is added to the allocation for the next 
13.13 	taxable year. The commissioner must not award any credits for taxable years beginning 
13.14 	after December 31, 2024 2032, and any unallocated amounts cancel on that date.
13.15 	(d) The commissioner must allocate credits on a first-come, first-served basis.
13.16 	(e) Upon completion of a project, the taxpayer shall submit to the commissioner a report 
13.17 	prepared by an independent certified public accountant licensed in the state of Minnesota 
13.18 	to verify the amount of eligible production costs related to the project. The report must be 
13.19 	prepared in accordance with generally accepted accounting principles. Upon receipt and 
13.20 	review of the cost verification report, the commissioner shall determine the final amount 
13.21 	of eligible production costs and issue a credit certificate to the taxpayer. The credit may not 
13.22 	exceed the anticipated credit amount on the allocation certificate. If the credit is less than 
13.23 	the anticipated amount on the allocation credit, the difference is returned to the amount 
13.24 	available for allocation under paragraph (c). To claim the credit under section 290.06, 
13.25 	subdivision 39, or 297I.20, subdivision 4, a taxpayer must include a copy of the credit 
13.26 	certificate as part of the taxpayer's return.

13.27 	EFFECTIVE DATE. This section is effective for allocation certificates issued after 
13.28 	December 31, 2022.

13.29 	Sec. 11. Minnesota Statutes 2022, section 116U.27, subdivision 7, is amended to read:
13.30 		Subd. 7.Expiration. Subdivisions 1 to 5 expire January 1, 2025 2033, for taxable years 
13.31 	beginning after December 31, 2024 2032.

13.32 	EFFECTIVE DATE. This section is effective for allocation certificates issued after 
13.33 	December 31, 2022.

14.1 	Sec. 12. [116X.01] NEW MARKETS TAX CREDIT.
14.2 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
14.3 	the meanings given.
14.4 	(b) "Applicable percentage" means zero percent for each of the first two credit allowance 
14.5 	dates and ten percent for each of the final five credit allowance dates.
14.6 	(c) "CDFI fund" means the Community Development Financial Institutions fund of the 
14.7 	United States Department of the Treasury.
14.8 	(d) "Commissioner" means the commissioner of employment and economic development.
14.9 	(e) "Credit allowance date" means:
14.10 	(1) the date on which a qualified equity investment is initially made; and
14.11 	(2) each of the six anniversary dates thereafter.
14.12 	(f) "Greater Minnesota allocation" means $60,000,000 in qualified equity investment 
14.13 	authority to be awarded for investment in qualified active low-income community businesses 
14.14 	with principal business operations in a greater Minnesota county.
14.15 	(g) "Greater Minnesota county" means any county located in Minnesota that is not a 
14.16 	metropolitan county.
14.17 	(h) "Internal Revenue Code" has the meaning given in section 290.01, subdivision 31.
14.18 	(i) "Metropolitan allocation" means $60,000,000 in qualified equity investment authority 
14.19 	to be awarded for investment in qualified active low-income community businesses with 
14.20 	principal business operations in a metropolitan county.
14.21 	(j) "Metropolitan county" has the meaning given in section 473.121, subdivision 4.
14.22 	(k) "Minnesota qualified community development entity" means a qualified community 
14.23 	development entity that is or whose controlling entity is headquartered in this state.
14.24 	(l) "Principal business operations" means the physical location of a business where at 
14.25 	least 60 percent of a qualified active low-income community business' employees work. 
14.26 	An out-of-state business that has agreed to relocate employees or a Minnesota business that 
14.27 	has agreed to hire employees using the proceeds of a qualified low-income community 
14.28 	investment to establish principal business operations in Minnesota is deemed to have principal 
14.29 	business operations in Minnesota if the business satisfies the requirements of this paragraph 
14.30 	within 180 days of receiving the qualified low-income community investment or another 
14.31 	date as agreed by the business and the commissioner.
15.1 	(m) "Purchase price" means the amount paid to the qualified community development 
15.2 	entity for a qualified equity investment.
15.3 	(n) "Qualified active low-income community business" has the meaning given in section 
15.4 	45D of the Internal Revenue Code, except that businesses or projects may not derive more 
15.5 	than 15 percent or more of its annual revenue from the rental or sale of real estate. This 
15.6 	exception does not apply if the business is controlled by or is under common control with 
15.7 	another business, and the business is a primary tenant of real estate leased from that other 
15.8 	business.
15.9 	(o) "Qualified community development entity" has the meaning given in section 45D 
15.10 	of the Internal Revenue Code, provided that the entity:
15.11 	(1) has previously entered into an allocation agreement with the CDFI fund with respect 
15.12 	to credits authorized by section 45D of the Internal Revenue Code; and
15.13 	(2) includes the state within the service area set forth in the allocation agreement.
15.14 	(p) "Qualified equity investment" means an equity investment in a qualified community 
15.15 	development entity, if the equity investment:
15.16 	(1) is acquired after the effective date of this section at its original issuance solely in 
15.17 	exchange for cash, or if the investment met the requirements of this provision while under 
15.18 	the possession of a prior holder;
15.19 	(2) has at least 100 percent of its cash purchase price used by the qualified community 
15.20 	development entity to make qualified low-income community investments in qualified 
15.21 	active low-income community businesses that have their principal business operations in 
15.22 	the state of Minnesota; and
15.23 	(3) is:
15.24 	(i) designated by the qualified community development entity as a qualified equity 
15.25 	investment under this section; and
15.26 	(ii) except for a Minnesota qualified community development entity, is at least 50 percent 
15.27 	designated by the qualified community development entity as a qualified equity investment 
15.28 	eligible for the federal credit under section 45D of the Internal Revenue Code.
15.29 	(q) "Qualified low-income community investment" means any capital or equity investment 
15.30 	in, or loan to, any qualified active low-income community business.
15.31 	(r) "Tax credit" or "credit" means a credit against the tax imposed by chapter 290 or 
15.32 	297I.
16.1 	(s) "Taxpayer" means a taxpayer as defined in section 290.01, subdivision 6, or a taxpayer 
16.2 	as defined in section 297I.01, subdivision 16.
16.3 		Subd. 2.Credit allowed; qualification; limitation. (a) An entity is eligible for a credit 
16.4 	against the tax imposed under chapter 290 or 297I, subject to the requirements of this section. 
16.5 	The credit may be claimed against the tax imposed by chapter 290 or 297I, but not both.
16.6 	(b) The credit equals the applicable percentage for each credit allowance date multiplied 
16.7 	by the purchase price paid to the qualified community development entity for the qualified 
16.8 	equity investment.
16.9 		Subd. 3.Requirements. (a) A qualified community development entity that seeks to 
16.10 	have an equity investment designated as a qualified equity investment and be eligible for 
16.11 	the credit under this section must:
16.12 	(1) have an allocation agreement, that is currently in effect, executed by the applicant 
16.13 	or its controlling entity, and the CDFI fund;
16.14 	(2) be certified as a qualified community development entity by the CDFI fund; and
16.15 	(3) meet all requirements under section 45D of the Internal Revenue Code.
16.16 	(b) An entity that seeks to be eligible for the credit under this section must:
16.17 	(1) hold a qualified equity investment on a credit allowance date of that investment; and
16.18 	(2) meet all requirements under section 45D of the Internal Revenue Code.
16.19 		Subd. 4.Application. (a) A qualified community development entity that seeks to have 
16.20 	an equity investment designated as a qualified equity investment under this section shall 
16.21 	apply to the commissioner on a form provided by the commissioner that includes:
16.22 	(1) the name, address, and tax identification number of the applicant, and evidence of 
16.23 	the applicant's certification as a qualified community development entity by the CDFI fund;
16.24 	(2) a copy of the allocation agreement executed by the applicant or its controlling entity, 
16.25 	and the CDFI fund;
16.26 	(3) a certificate executed by an executive officer of the applicant attesting that the 
16.27 	allocation agreement remains in effect and has not been revoked or canceled by the CDFI 
16.28 	fund;
16.29 	(4) a description of the proposed amount, structure, and purchaser of the equity 
16.30 	investment;
17.1 	(5) for a qualified community development entity that is not a Minnesota qualified 
17.2 	community development entity, the amount of qualified equity investment authority sought 
17.3 	under the greater Minnesota allocation or the metropolitan allocation, as applicable, which 
17.4 	collectively may not exceed the applicant or its controlling entity's available qualified equity 
17.5 	investment authority under section 45D of the Internal Revenue Code multiplied by two;
17.6 	(6) if required by clause (5), evidence of the applicant or its controlling entity's available 
17.7 	qualified equity investment authority under section 45D of the Internal Revenue Code; and
17.8 	(7) a nonrefundable application fee of $5,000 paid to the commissioner to offset costs 
17.9 	associated with personnel and administrative expenses related to administering the credit.
17.10 	(b) The commissioner shall set a date to accept applications not less than 30 days but 
17.11 	not more than 45 days after the date the CDFI fund announces allocation awards under a 
17.12 	notice of funding availability that was published in the Federal Register in November 2022.
17.13 	(c) A qualified community development entity may apply for both a greater Minnesota 
17.14 	allocation and a metropolitan allocation.
17.15 		Subd. 5.Certification and timing of qualified equity investments. (a) Within 30 days 
17.16 	after receipt of an application, the commissioner shall grant or deny the application in full 
17.17 	or in part. If the commissioner denies any part of the application, the commissioner shall 
17.18 	inform the applicant of the grounds for the denial. If the applicant provides the information 
17.19 	required by the commissioner or otherwise completes its application within 15 days of the 
17.20 	notice of denial, the application is deemed complete as of the original date of submission. 
17.21 	If the applicant fails to provide the requested information or complete its application within 
17.22 	the 15-day period, the applicant may submit a new application.
17.23 	(b) If the application is deemed complete, the commissioner shall certify the proposed 
17.24 	equity investment as a qualified equity investment eligible for a credit under this section. 
17.25 	The commissioner shall provide written notice of the certification to the qualified community 
17.26 	development entity. Once the qualified community development entity identifies the 
17.27 	taxpayers who are allocated credits and their respective credit amounts, the qualified 
17.28 	community development entity shall provide a notice of allocation to the commissioner. 
17.29 	The commissioner shall provide a certification to the qualified community development 
17.30 	entity and each taxpayer containing the credit amount and utilization schedule for which 
17.31 	the taxpayer is eligible. If the taxpayer's eligibility to utilize the credits change due to a 
17.32 	transfer of a qualified equity investment or a change in allocation pursuant to paragraph (c), 
17.33 	the qualified community development entity shall notify the commissioner of the change.
18.1 	(c) The aggregate amount of credits allowed to all certified qualified equity investments 
18.2 	in greater Minnesota counties is $30,000,000. The aggregate amount of credits allowed to 
18.3 	all certified qualified equity investments in metropolitan counties is $30,000,000. The 
18.4 	commissioner shall certify applications for the greater Minnesota allocation and the 
18.5 	metropolitan allocation in proportionate percentages based upon the ratio of the amount of 
18.6 	qualified equity investments requested in applications for each allocation to the total amount 
18.7 	of qualified equity investments requested in all applications for each allocation received on 
18.8 	the same day.
18.9 	(d) If a pending request cannot be fully certified, the commissioner shall certify the 
18.10 	portion that may be certified unless the qualified community development entity elects to 
18.11 	withdraw its request rather than receive a partial award of qualified equity investment 
18.12 	authority.
18.13 	(e) A qualified community development entity must make its qualified equity investment 
18.14 	by January 1, 2026.
18.15 	(f) An approved applicant may transfer all or a portion of its certified qualified equity 
18.16 	investment authority to its controlling entity or any affiliate or partner of the controlling 
18.17 	entity that is also a qualified community development entity if the applicant provides the 
18.18 	information required in the application with respect to the transferee and the applicant 
18.19 	notifies the commissioner in the notice required by paragraph (g). Within 90 days after 
18.20 	receiving notice of certification under paragraph (b), the applicant or transferee shall:
18.21 	(1) issue qualified equity investments in an amount equal to the total amount of certified 
18.22 	qualified equity investment authority;
18.23 	(2) receive cash in the amount of the certified qualified equity investment; and
18.24 	(3) if the applicant or transferee is not a Minnesota qualified community development 
18.25 	entity, designate 50 percent of the qualified equity investment authority as a qualified equity 
18.26 	investment under section 45D of the Internal Revenue Code.
18.27 	The entity to which the certified qualified equity investment authority is transferred is 
18.28 	responsible for any assessment resulting from an audit by the commissioner of revenue.
18.29 	(g) The qualified community development entity must provide the commissioner with 
18.30 	evidence of the receipt of the cash investment and, if the qualified community development 
18.31 	entity is not a Minnesota qualified community development entity, the designation of 50 
18.32 	percent of the qualified equity investment as a qualified equity investment under section 
18.33 	45D of the Internal Revenue Code within 95 days after receiving notice of certification. If 
19.1 	the qualified community development entity does not receive the cash investment, issue the 
19.2 	qualified equity investment within 90 days following receipt of the certification notice, and 
19.3 	comply with paragraph (f), clause (3), if applicable, the certification is void. A voided 
19.4 	certification must be returned to the commissioner and must first be awarded pro rata to 
19.5 	applicants that received awards of qualified equity investment authority and complied with 
19.6 	paragraph (f).
19.7 	(h) The commissioner shall notify the commissioner of revenue of credits approved 
19.8 	under this subdivision within 15 days of granting an application.
19.9 		Subd. 6.Examination.  The commissioner may conduct examinations to verify that the 
19.10 	credits under this section have been received and applied according to the requirements of 
19.11 	this section and to verify that no event has occurred that would result in a recapture of credits 
19.12 	under subdivision 5.
19.13 		Subd. 7.Annual reporting by community development entities. (a) Each qualified 
19.14 	community development entity shall submit an annual report to the commissioner within 
19.15 	120 days after the beginning of each calendar year during the compliance period. No annual 
19.16 	report is due prior to the first anniversary of the initial credit allowance date. The report 
19.17 	must include but is not limited to information with respect to all qualified low-income 
19.18 	community investments made by the qualified community development entity, including:
19.19 	(1) the date and amount of, and bank statements or wire transfer reports documenting, 
19.20 	qualified low-income community investments;
19.21 	(2) the name and address of each qualified active low-income community business 
19.22 	funded by the qualified community development entity, the number of persons employed 
19.23 	by the business at the time of the initial qualified low-income community investment, and 
19.24 	a brief description of the business and its financing;
19.25 	(3) the number of employment positions maintained by each qualified active low-income 
19.26 	community business as of the date of the report or the end of the preceding calendar year 
19.27 	and the average annual salaries of those positions;
19.28 	(4) the total number of employment positions created and retained as a result of qualified 
19.29 	low-income community investments and the average annual salaries of those positions;
19.30 	(5) a certification by its chief executive officer or similar officer that no credits have 
19.31 	been subject to recapture under subdivision 5;
20.1 	(6) any changes with respect to the taxpayers entitled to claim credits with respect to 
20.2 	qualified equity investments issued by the qualified community development entity since 
20.3 	its last report pursuant to this section; and
20.4 	(7) each qualified community development entity shall pay the commissioner an annual 
20.5 	fee of $1,500. The initial annual fee required of the qualified community development entity 
20.6 	is due and payable to the commissioner along with the submission of documentation required 
20.7 	under subdivision 4, paragraph (g). Each subsequent annual fee is required to be submitted 
20.8 	with the annual report under paragraph (a).
20.9 	(b) The qualified community development entity is not required to provide the annual 
20.10 	report set forth in this section for qualified low-income community investments that have 
20.11 	been redeemed or repaid.
20.12 		Subd. 8.Program report. If the credit under this section has not been reviewed under 
20.13 	the provisions of section 3.8855 by December 15, 2032, the commissioner, with input from 
20.14 	the commissioner of revenue, shall report to the legislature no later than December 31, 2032, 
20.15 	regarding the implementation of the credit under this section, including an evaluation of 
20.16 	the credit using the components listed in section 3.885, subdivision 5.
20.17 		Subd. 9.Expiration. This section expires for taxable years beginning after December 
20.18 	31, 2031, except that the commissioner's authority to allow the credit under subdivision 2 
20.19 	based on certificates that were issued under subdivision 4 before expiration remains in effect 
20.20 	through the year following the year in which all certificates have either been canceled or 
20.21 	resulted in issuance of credit certificates, or 2034, whichever is earlier.
20.22 		Subd. 10.Account created; appropriation. The Minnesota new markets tax credit 
20.23 	account is created in the special revenue fund in the state treasury. The account is 
20.24 	administered by the commissioner. Application and reporting fees required under subdivision 
20.25 	3, paragraph (a), clause (7), are appropriated to the commissioner for costs associated with 
20.26 	certifying applications and for personnel and administrative expenses related to administering 
20.27 	the credit under this section.

20.28 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
20.29 	31, 2023.

20.30 	Sec. 13. Minnesota Statutes 2022, section 270B.14, subdivision 2, is amended to read:
20.31 		Subd. 2.Disclosure to Department of Employment and Economic Development. (a) 
20.32 	Data relating to individuals are treated as follows:
21.1 	(1) Return information may be disclosed to the Department of Employment and Economic 
21.2 	Development to the extent provided in clause (2) and for the purposes provided in clause 
21.3 	(3).
21.4 	(2) The data that may be disclosed is limited to the amount of gross income earned by 
21.5 	an individual, the total amounts of earnings from each employer, and the employer's name.
21.6 	(3) Data may be requested pertaining only to individuals who have claimed benefits 
21.7 	under sections 268.03 to 268.23 and only if the individuals are the subject of investigations 
21.8 	based on other information available to the Department of Employment and Economic 
21.9 	Development. Data received may be used only as set forth in section 268.19, subdivision 
21.10 	1, paragraph (b).
21.11 	(4) Notwithstanding the limitation in paragraph (a), the commissioner may disclose 
21.12 	return information to the Department of Employment and Economic Development to the 
21.13 	extent required to administer the new markets tax credit in sections 290.0693 and 297I.20.
21.14 	(b) Data pertaining to corporations or other employing units may be disclosed to the 
21.15 	Department of Employment and Economic Development to the extent necessary for the 
21.16 	proper enforcement of chapter 268.

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

21.18 	Sec. 14. Minnesota Statutes 2022, section 289A.08, subdivision 7, as amended by Laws 
21.19 	2023, chapter 1, section 2, is amended to read:
21.20 		Subd. 7.Composite income tax returns for nonresident partners, shareholders, and 
21.21 	beneficiaries. (a) The commissioner may allow a partnership with nonresident partners to 
21.22 	file a composite return and to pay the tax on behalf of nonresident partners who have no 
21.23 	other Minnesota source income. This composite return must include the names, addresses, 
21.24 	Social Security numbers, income allocation, and tax liability for the nonresident partners 
21.25 	electing to be covered by the composite return.
21.26 	(b) The computation of a partner's tax liability must be determined by multiplying the 
21.27 	income allocated to that partner by the highest rate used to determine the tax liability for 
21.28 	individuals under section 290.06, subdivision 2c. Nonbusiness deductions, standard 
21.29 	deductions, or personal exemptions are not allowed.
21.30 	(c) The partnership must submit a request to use this composite return filing method for 
21.31 	nonresident partners. The requesting partnership must file a composite return in the form 
21.32 	prescribed by the commissioner of revenue. The filing of a composite return is considered 
21.33 	a request to use the composite return filing method.
22.1 	(d) The electing partner must not have any Minnesota source income other than the 
22.2 	income from the partnership, other electing partnerships, and other qualifying entities 
22.3 	electing to file and pay the pass-through entity tax under subdivision 7a. If it is determined 
22.4 	that the electing partner has other Minnesota source income, the inclusion of the income 
22.5 	and tax liability for that partner under this provision will not constitute a return to satisfy 
22.6 	the requirements of subdivision 1. The tax paid for the individual as part of the composite 
22.7 	return is allowed as a payment of the tax by the individual on the date on which the composite 
22.8 	return payment was made. If the electing nonresident partner has no other Minnesota source 
22.9 	income, filing of the composite return is a return for purposes of subdivision 1.
22.10 	(e) This subdivision does not negate the requirement that an individual pay estimated 
22.11 	tax if the individual's liability would exceed the requirements set forth in section 289A.25. 
22.12 	The individual's liability to pay estimated tax is, however, satisfied when the partnership 
22.13 	pays composite estimated tax in the manner prescribed in section 289A.25.
22.14 	(f) If an electing partner's share of the partnership's gross income from Minnesota sources 
22.15 	is less than the filing requirements for a nonresident under this subdivision, the tax liability 
22.16 	is zero. However, a statement showing the partner's share of gross income must be included 
22.17 	as part of the composite return.
22.18 	(g) The election provided in this subdivision is only available to a partner who has no 
22.19 	other Minnesota source income and who is either (1) a full-year nonresident individual or 
22.20 	(2) a trust or estate that does not claim a deduction under either section 651 or 661 of the 
22.21 	Internal Revenue Code.
22.22 	(h) A corporation defined in section 290.9725 and its nonresident shareholders may 
22.23 	make an election under this paragraph. The provisions covering the partnership apply to 
22.24 	the corporation and the provisions applying to the partner apply to the shareholder.
22.25 	(i) Estates and trusts distributing current income only and the nonresident individual 
22.26 	beneficiaries of the estates or trusts may make an election under this paragraph. The 
22.27 	provisions covering the partnership apply to the estate or trust. The provisions applying to 
22.28 	the partner apply to the beneficiary.
22.29 	(j) For the purposes of this subdivision, "income" means the partner's share of federal 
22.30 	adjusted gross income from the partnership modified by the additions provided in section 
22.31 	290.0131, subdivisions 8 to 10, 16, and 17, and the subtractions provided in: (1) section 
22.32 	290.0132, subdivisions 9, 27, 28, and 31, to the extent the amount is assignable or allocable 
22.33 	to Minnesota under section 290.17; and (2) section 290.0132, subdivision 14. The subtraction 
22.34 	allowed under section 290.0132, subdivision 9, is only allowed on the composite tax 
23.1 	computation to the extent the electing partner would have been allowed the subtraction. has 
23.2 	the meaning given in section 290.01, subdivision 19, paragraph (h).

23.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
23.4 	31, 2022.

23.5 	Sec. 15. Minnesota Statutes 2022, section 289A.08, subdivision 7a, as amended by Laws 
23.6 	2023, chapter 1, section 3, is amended to read:
23.7 		Subd. 7a.Pass-through entity tax. (a) For the purposes of this subdivision, the following 
23.8 	terms have the meanings given:
23.9 	(1) "income" has the meaning given in subdivision 7, paragraph (j), modified by the 
23.10 	addition provided in section 290.0131, subdivision 5, and the subtraction provided in section 
23.11 	290.0132, subdivision 3, except that the provisions that apply to a partnership apply to a 
23.12 	qualifying entity and the provisions that apply to a partner apply to a qualifying owner. The 
23.13 	income of both a resident and nonresident qualifying owner is allocated and assigned to 
23.14 	this state as provided for nonresident partners and shareholders under sections 290.17, 
23.15 	290.191, and 290.20 section 290.01, subdivision 19, paragraphs (i) and (j);
23.16 	(2) "qualifying entity" means a partnership, limited liability company taxed as a 
23.17 	partnership or S corporation, or S corporation including a qualified subchapter S subsidiary 
23.18 	organized under section 1361(b)(3)(B) of the Internal Revenue Code that has at least one 
23.19 	qualifying owner. Qualifying entity does not include a partnership, limited liability company, 
23.20 	or corporation that has a partnership, limited liability company other than a disregarded 
23.21 	entity, or corporation as a partner, member, or shareholder publicly traded partnership, as 
23.22 	defined in section 7704 of the Internal Revenue Code; and
23.23 	(3) "qualifying owner" means:
23.24 	(i) a resident or nonresident individual or estate that is a partner, member, or shareholder 
23.25 	of a qualifying entity; or
23.26 	(ii) a resident or nonresident trust that is a shareholder of a qualifying entity that is an 
23.27 	S corporation.; or
23.28 	(iii) a disregarded entity that has a qualifying owner as its single owner.
23.29 	(b) For taxable years beginning after December 31, 2020, in which the taxes of a 
23.30 	qualifying owner are limited under section 164(b)(6)(B) of the Internal Revenue Code, a 
23.31 	qualifying entity may elect to file a return and pay the pass-through entity tax imposed under 
23.32 	paragraph (c). The election:
24.1 	(1) must be made on or before the due date or extended due date of the qualifying entity's 
24.2 	pass-through entity tax return;
24.3 	(2) must exclude partners, members, shareholders, or owners who are not qualifying 
24.4 	owners;
24.5 	(2) (3) may only be made by qualifying owners who collectively hold more than a 50 
24.6 	percent of the ownership interest interests in the qualifying entity held by qualifying owners;
24.7 	(3) (4) is binding on all qualifying owners who have an ownership interest in the 
24.8 	qualifying entity; and
24.9 	(4) (5) once made is irrevocable for the taxable year.
24.10 	(c) Subject to the election in paragraph (b), a pass-through entity tax is imposed on a 
24.11 	qualifying entity in an amount equal to the sum of the tax liability of each qualifying owner.
24.12 	(d) The amount of a qualifying owner's tax liability under paragraph (c) is the amount 
24.13 	of the qualifying owner's income multiplied by the highest tax rate for individuals under 
24.14 	section 290.06, subdivision 2c. When making this determination:
24.15 	(1) nonbusiness deductions, standard deductions, or personal exemptions are not allowed; 
24.16 	and
24.17 	(2) a credit or deduction is allowed only to the extent allowed to the qualifying owner.
24.18 	(e) The amount of each credit and deduction used to determine a qualifying owner's tax 
24.19 	liability under paragraph (d) must also be used to determine that qualifying owner's income 
24.20 	tax liability under chapter 290.
24.21 	(f) This subdivision does not negate the requirement that a qualifying owner pay estimated 
24.22 	tax if the qualifying owner's tax liability would exceed the requirements set forth in section 
24.23 	289A.25. The qualifying owner's liability to pay estimated tax on the qualifying owner's 
24.24 	tax liability as determined under paragraph (d) is, however, satisfied when the qualifying 
24.25 	entity pays estimated tax in the manner prescribed in section 289A.25 for composite estimated 
24.26 	tax.
24.27 	(g) A qualifying owner's adjusted basis in the interest in the qualifying entity, and the 
24.28 	treatment of distributions, is determined as if the election to pay the pass-through entity tax 
24.29 	under paragraph (b) is not made.
24.30 	(h) To the extent not inconsistent with this subdivision, for purposes of this chapter, a 
24.31 	pass-through entity tax return must be treated as a composite return and a qualifying entity 
25.1 	filing a pass-through entity tax return must be treated as a partnership filing a composite 
25.2 	return.
25.3 	(i) The provisions of subdivision 17 apply to the election to pay the pass-through entity 
25.4 	tax under this subdivision.
25.5 	(j) If a nonresident qualifying owner of a qualifying entity making the election to file 
25.6 	and pay the tax under this subdivision has no other Minnesota source income, filing of the 
25.7 	pass-through entity tax return is a return for purposes of subdivision 1, provided that the 
25.8 	nonresident qualifying owner must not have any Minnesota source income other than the 
25.9 	income from the qualifying entity, other electing qualifying entities, and other partnerships 
25.10 	electing to file a composite return under subdivision 7. If it is determined that the nonresident 
25.11 	qualifying owner has other Minnesota source income, the inclusion of the income and tax 
25.12 	liability for that owner under this provision will not constitute a return to satisfy the 
25.13 	requirements of subdivision 1. The tax paid for the qualifying owner as part of the 
25.14 	pass-through entity tax return is allowed as a payment of the tax by the qualifying owner 
25.15 	on the date on which the pass-through entity tax return payment was made.
25.16 	(k) Once a credit is claimed by a qualifying owner under section 290.06, subdivision 
25.17 	40, a qualifying entity cannot receive a refund for tax paid under this subdivision for any 
25.18 	amounts claimed under that section by the qualifying owners. Once a credit is claimed under 
25.19 	section 290.06, subdivision 40, any refund must be claimed in conjunction with a return 
25.20 	filed by the qualifying owner.
25.21 	(l) This section expires at the same time and on the same terms as section 164(b)(6)(B) 
25.22 	of the Internal Revenue Code, except that the expiration of this section does not affect the 
25.23 	commissioner's authority to audit or power of examination and assessments for credits 
25.24 	claimed under this section.

25.25 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
25.26 	31, 2021.

25.27 	Sec. 16. Minnesota Statutes 2022, section 289A.382, subdivision 2, is amended to read:
25.28 		Subd. 2.Reporting and payment requirements for partnerships and tiered 
25.29 	partners. (a) Except for when an audited partnership makes the election in subdivision 3, 
25.30 	and except for negative federal adjustments required under federal law taken into account 
25.31 	by the partnership in the partnership return for the adjustment or other year, all final federal 
25.32 	adjustments of an audited partnership must comply with paragraph (b) and each direct 
26.1 	partner of the audited partnership, other than a tiered partner, must comply with paragraph 
26.2 	(c).
26.3 	(b) No later than 90 days after the final determination date, the audited partnership must:
26.4 	(1) file a completed federal adjustments report, including all partner-level information 
26.5 	required under section 289A.12, subdivision 3, with the commissioner;
26.6 	(2) notify each of its direct partners of their distributive share of the final federal 
26.7 	adjustments;
26.8 	(3) file an amended composite report for all direct partners who were included in a 
26.9 	composite return under section 289A.08, subdivision 7, in the reviewed year, and pay the 
26.10 	additional amount that would have been due had the federal adjustments been reported 
26.11 	properly as required; and
26.12 	(4) file amended withholding reports for all direct partners who were or should have 
26.13 	been subject to nonresident withholding under section 290.92, subdivision 4b, in the reviewed 
26.14 	year, and pay the additional amount that would have been due had the federal adjustments 
26.15 	been reported properly as required.; and
26.16 	(5) file an amended pass-through entity tax report for all direct partners who were 
26.17 	included in a pass-through entity tax return under section 289A.08, subdivision 7a, in the 
26.18 	reviewed year, and pay the additional amount that would have been due had the federal 
26.19 	adjustments been reported properly as required.
26.20 	(c) No later than 180 days after the final determination date, each direct partner, other 
26.21 	than a tiered partner, that is subject to a tax administered under this chapter, other than the 
26.22 	sales tax, must:
26.23 	(1) file a federal adjustments report reporting their distributive share of the adjustments 
26.24 	reported to them under paragraph (b), clause (2); and
26.25 	(2) pay any additional amount of tax due as if the final federal adjustment had been 
26.26 	properly reported, plus any penalty and interest due under this chapter, and less any credit 
26.27 	for related amounts paid or withheld and remitted on behalf of the direct partner under 
26.28 	paragraph (b), clauses (3) and (4).

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

27.1 	Sec. 17. Minnesota Statutes 2022, section 290.01, subdivision 7b, is amended to read:
27.2 		Subd. 7b.Resident trust. (a) Resident trust means A trust, except a grantor type trust, 
27.3 	which eitherthat became irrevocable on or before December 31, 1995, or was first 
27.4 	administered in Minnesota on or before December 31, 1995, is a resident trust only if two 
27.5 	or more of the following conditions are satisfied:
27.6 	(1) a majority of the discretionary decisions of the trustees relative to the investment of 
27.7 	trust assets are made in Minnesota;
27.8 	(2) a majority of the discretionary decisions of the trustees relative to the distributions 
27.9 	of trust income and principal are made in Minnesota; or
27.10 	(3) the official books and records of the trust, consisting of the original minutes of trustee 
27.11 	meetings and the original trust instruments, are located in Minnesota.
27.12 	(b) A trust, except a grantor type trust, that became irrevocable after December 31, 1995, 
27.13 	or was first administered in Minnesota after December 31, 1995, is a resident trust only if:
27.14 	(1) either it:
27.15 	(i) was created by a will of a decedent who at death was domiciled in this state; or
27.16 	(2) (ii) is an irrevocable trust, the grantor of which was domiciled in this state at the time 
27.17 	the trust became irrevocable.; and
27.18 	(2) two or more of the following conditions are satisfied:
27.19 	(i) a majority of the discretionary decisions of the trustees relative to the investment of 
27.20 	trust assets are made in Minnesota;
27.21 	(ii) a majority of the discretionary decisions of the trustees relative to the distributions 
27.22 	of trust income and principal are made in Minnesota; or
27.23 	(iii) the official books and records of the trust, consisting of the original minutes of 
27.24 	trustee meetings and the original trust instruments, are located in Minnesota.
27.25 	(c) For the purpose of this subdivision, a trust is considered irrevocable to the extent the 
27.26 	grantor is not treated as the owner thereof under sections 671 to 678 of the Internal Revenue 
27.27 	Code. The term "grantor type trust" means a trust where the income or gains of the trust are 
27.28 	taxable to the grantor or others treated as substantial owners under sections 671 to 678 of 
27.29 	the Internal Revenue Code. This paragraph applies to trusts, except grantor type trusts, that 
27.30 	became irrevocable after December 31, 1995, or are first administered in Minnesota after 
27.31 	December 31, 1995.
28.1 	(b) This paragraph applies to trusts, except grantor type trusts, that are not governed 
28.2 	under paragraph (a). A trust, except a grantor type trust, is a resident trust only if two or 
28.3 	more of the following conditions are satisfied:
28.4 	(1) a majority of the discretionary decisions of the trustees relative to the investment of 
28.5 	trust assets are made in Minnesota;
28.6 	(2) a majority of the discretionary decisions of the trustees relative to the distributions 
28.7 	of trust income and principal are made in Minnesota;
28.8 	(3) the official books and records of the trust, consisting of the original minutes of trustee 
28.9 	meetings and the original trust instruments, are located in Minnesota.
28.10 	(c) (d) For purposes of paragraph paragraphs (a) and (b), if the trustees delegate decisions 
28.11 	and actions to an agent or custodian, the actions and decisions of the agent or custodian 
28.12 	must not be taken into account in determining whether the trust is administered in Minnesota, 
28.13 	if:
28.14 	(1) the delegation was permitted under the trust agreement;
28.15 	(2) the trustees retain the power to revoke the delegation on reasonable notice; and
28.16 	(3) the trustees monitor and evaluate the performance of the agent or custodian on a 
28.17 	regular basis as is reasonably determined by the trustees.

28.18 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
28.19 	31, 2024.

28.20 	Sec. 18. Minnesota Statutes 2022, section 290.01, subdivision 19, as amended by Laws 
28.21 	2023, chapter 1, section 4, is amended to read:
28.22 		Subd. 19.Net income. (a) For a trust or estate taxable under section 290.03, and a 
28.23 	corporation taxable under section 290.02, the term "net income" means the federal taxable 
28.24 	income, as defined in section 63 of the Internal Revenue Code of 1986, as amended through 
28.25 	the date named in this subdivision, incorporating the federal effective dates of changes to 
28.26 	the Internal Revenue Code and any elections made by the taxpayer in accordance with the 
28.27 	Internal Revenue Code in determining federal taxable income for federal income tax 
28.28 	purposes, and with the modifications provided in sections 290.0131 to 290.0136.
28.29 	(b) For an individual, the term "net income" means federal adjusted gross income with 
28.30 	the modifications provided in sections 290.0131, 290.0132, and 290.0135 to 290.0137.
28.31 	(c) In the case of a regulated investment company or a fund thereof, as defined in section 
28.32 	851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment 
29.1 	company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, 
29.2 	except that:
29.3 	(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal 
29.4 	Revenue Code does not apply;
29.5 	(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue 
29.6 	Code must be applied by allowing a deduction for capital gain dividends and exempt-interest 
29.7 	dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code; 
29.8 	and
29.9 	(3) the deduction for dividends paid must also be applied in the amount of any 
29.10 	undistributed capital gains which the regulated investment company elects to have treated 
29.11 	as provided in section 852(b)(3)(D) of the Internal Revenue Code.
29.12 	(d) The net income of a real estate investment trust as defined and limited by section 
29.13 	856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust 
29.14 	taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
29.15 	(e) The net income of a designated settlement fund as defined in section 468B(d) of the 
29.16 	Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal 
29.17 	Revenue Code.
29.18 	(f) The Internal Revenue Code of 1986, as amended through December 15, 2022, applies 
29.19 	for taxable years beginning after December 31, 1996.
29.20 	(g) Except as otherwise provided, references to the Internal Revenue Code in this 
29.21 	subdivision and sections 290.0131 to 290.0136 mean the code in effect for purposes of 
29.22 	determining net income for the applicable year.
29.23 	(h) In the case of a partnership electing to file a composite return under section 289A.08, 
29.24 	subdivision 7, income means the partner's share of federal adjusted gross income from the 
29.25 	partnership modified by the additions provided in section 290.0131, subdivisions 8 to 10, 
29.26 	16, and 17, and the subtractions provided in: (1) section 290.0132, subdivisions 9, 27, and 
29.27 	28, to the extent the amount is assignable or allocable to Minnesota under section 290.17; 
29.28 	and (2) section 290.0132, subdivision 14. The subtraction allowed under section 290.0132, 
29.29 	subdivision 9, is only allowed on the composite tax computation to the extent the electing 
29.30 	partner would have been allowed the subtraction.
29.31 	(i) In the case of a qualifying entity electing to pay the pass-through entity tax under 
29.32 	section 289A.08, subdivision 7a, income means the qualifying owner's share of federal 
29.33 	adjusted gross income from the qualifying entity modified by the additions provided in 
30.1 	section 290.0131, subdivisions 5, 8 to 10, 16, and 17, and the subtractions provided in: (1) 
30.2 	section 290.0132, subdivisions 3, 9, 27, and 28, to the extent the amount is assignable or 
30.3 	allocable to Minnesota under section 290.17; and (2) section 290.0132, subdivision 14. The 
30.4 	subtraction allowed under section 290.0132, subdivision 9, is only allowed on the 
30.5 	pass-through entity tax computation to the extent the qualifying owners would have been 
30.6 	allowed the subtraction.
30.7 	(j) The income of a resident qualifying owner of a qualifying entity that is a partnership 
30.8 	or limited liability company taxed as a partnership under the Internal Revenue Code is not 
30.9 	subject to allocation outside this state as provided for resident individuals under section 
30.10 	290.17, subdivision 1, paragraph (a). The income of a nonresident qualifying owner of a 
30.11 	qualifying entity and the income of a resident qualifying owner of a qualifying entity that 
30.12 	is an S corporation, including a qualified subchapter S subsidiary organized under section 
30.13 	1361(b)(3)(B) of the Internal Revenue Code, are allocated and assigned to this state as 
30.14 	provided for nonresident partners and shareholders under sections 290.17, 290.191, and 
30.15 	290.20.

30.16 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
30.17 	31, 2021.

30.18 	Sec. 19. Minnesota Statutes 2022, section 290.0131, is amended by adding a subdivision 
30.19 	to read:
30.20 		Subd. 21.Dependent flexible spending accounts. For a taxpayer who claims the credit 
30.21 	under section 290.067, or for a married taxpayer filing a separate return whose spouse claims 
30.22 	the credit under that section, the amount of dependent care assistance that is excluded from 
30.23 	gross income under section 129 of the Internal Revenue Code is an addition.

30.24 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
30.25 	31, 2022.

30.26 	Sec. 20. Minnesota Statutes 2022, section 290.0132, subdivision 4, is amended to read:
30.27 		Subd. 4.Education expenses. (a) Subject to the limits in paragraph (b), the following 
30.28 	amounts paid to others for each qualifying child are a subtraction:
30.29 	(1) education-related expenses; plus
30.30 	(2) tuition and fees paid to attend a school described in section 290.0674, subdivision 1
30.31 	subdivision 1a, paragraph (b), clause (4), that are not included in education-related expenses; 
30.32 	less
31.1 	(3) any amount used to claim the credit under section 290.0674.
31.2 	(b) The maximum subtraction allowed under this subdivision is:
31.3 	(1) $1,625 for each qualifying child in kindergarten through grade 6; and
31.4 	(2) $2,500 for each qualifying child in grades 7 through 12.
31.5 	(c) The definitions in section 290.0674, subdivision 1 subdivision 1a, apply to this 
31.6 	subdivision.

31.7 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
31.8 	31, 2022.

31.9 	Sec. 21. Minnesota Statutes 2022, section 290.0132, subdivision 26, is amended to read:
31.10 		Subd. 26.Social Security benefits. (a) A portion of taxable Social Security benefits is 
31.11 	allowed as a subtraction. The taxpayer is allowed a subtraction equalsequal to the greater 
31.12 	of the simplified subtraction allowed under paragraph (b) or the alternate subtraction 
31.13 	determined under paragraphs (c), (d), and (e).
31.14 	(b) A taxpayer's simplified subtraction equals the amount of taxable social security 
31.15 	benefits, as reduced under paragraphs (e) to (h).
31.16 	(c) For a taxpayer other than a married taxpayer filing a separate return with adjusted 
31.17 	gross income above the phaseout threshold, the simplified subtraction is reduced by ten 
31.18 	percent for each $4,000 of adjusted gross income, or fraction thereof, in excess of the 
31.19 	phaseout threshold. The phaseout threshold equals:
31.20 	(1) $100,000 for a married taxpayer filing a joint return or surviving spouse;
31.21 	(2) $78,000 for a single or head of household taxpayer; and
31.22 	(3) for a married taxpayer filing a separate return, half the amount for a married taxpayer 
31.23 	filing a joint return.
31.24 	(d) For a married taxpayer filing a separate return, the simplified subtraction is reduced 
31.25 	by ten percent for each $2,000 of adjusted gross income, or fraction thereof, in excess of 
31.26 	the phaseout threshold.
31.27 	(e) A taxpayer's alternate subtraction equals the lesser of taxable Social Security benefits 
31.28 	or a maximum subtraction subject to the limits under paragraphs (b), (c), and (d) (f), (g), 
31.29 	and (h).
31.30 	(b) (f) For married taxpayers filing a joint return and surviving spouses, the maximum 
31.31 	subtraction under paragraph (c) equals $5,150 $5,840. The maximum subtraction is reduced 
32.1 	by 20 percent of provisional income over $78,180 $88,630. In no case is the subtraction 
32.2 	less than zero.
32.3 	(c) (g) For single or head-of-household taxpayers, the maximum subtraction under 
32.4 	paragraph (c) equals $4,020 $4,560. The maximum subtraction is reduced by 20 percent of 
32.5 	provisional income over $61,080 $69,250. In no case is the subtraction less than zero.
32.6 	(d) (h) For married taxpayers filing separate returns, the maximum subtraction under 
32.7 	paragraph (c) equals one-half the maximum subtraction for joint returns under paragraph 
32.8 	(b) (d). The maximum subtraction is reduced by 20 percent of provisional income over 
32.9 	one-half the threshold amount specified in paragraph (b) (d). In no case is the subtraction 
32.10 	less than zero.
32.11 	(e) (i) For purposes of this subdivision, "provisional income" means modified adjusted 
32.12 	gross income as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of 
32.13 	the taxable Social Security benefits received during the taxable year, and "Social Security 
32.14 	benefits" has the meaning given in section 86(d)(1) of the Internal Revenue Code.
32.15 	(f) (j) The commissioner shall adjust the maximum subtraction andphaseout threshold 
32.16 	amounts in paragraphs (b) to(c) and (d) as provided in section 270C.22. The statutory year 
32.17 	is taxable year 2019 2023. The maximum subtraction and threshold amounts as adjusted 
32.18 	must be rounded to the nearest $10 amount. If the amount ends in $5, the amount is rounded 
32.19 	up to the nearest $10 amount.

32.20 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
32.21 	31, 2022.

32.22 	Sec. 22. Minnesota Statutes 2022, section 290.0132, is amended by adding a subdivision 
32.23 	to read:
32.24 		Subd. 34. Qualified retirement benefits. (a) The amount of qualified public pension 
32.25 	income is a subtraction. The subtraction in this section is limited to:
32.26 	(1) $25,000 for a married taxpayer filing a joint return or surviving spouse; or
32.27 	(2) $12,500 for all other filers.
32.28 	(b) For a taxpayer with adjusted gross income above the phaseout threshold, the 
32.29 	subtraction is reduced by ten percent for each $2,000 of adjusted gross income, or fraction 
32.30 	thereof, in excess of the threshold. The phaseout threshold equals:
32.31 	(1) $100,000 for a married taxpayer filing a joint return or surviving spouse;
32.32 	(2) $78,000 for a single or head of household taxpayer; or
33.1 	(3) for a married taxpayer filing a separate return, half the amount for a married taxpayer 
33.2 	filing a joint return.
33.3 	(c) For the purposes of this section, "qualified public pension income" means any amount 
33.4 	received:
33.5 	(1) by a former basic member or the survivor of a former basic member, as an annuity 
33.6 	or survivor benefit, from a pension plan governed by chapter 353, 353E, 354, or 354A, 
33.7 	provided that the annuity or benefit is based on service for which the member or survivor 
33.8 	is not also receiving Social Security benefits;
33.9 	(2) as an annuity or survivor benefit from the legislators plan under chapter 3A, the State 
33.10 	Patrol retirement plan under chapter 352B, or the public employees police and fire plan 
33.11 	under sections 353.63 to 353.666, provided that the annuity or benefit is based on service 
33.12 	for which the member or survivor is not also receiving Social Security benefits;
33.13 	(3) from any retirement system administered by the federal government that is based on 
33.14 	service for which the recipient or the recipient's survivor is not also receiving Social Security 
33.15 	benefits; or
33.16 	(4) from a public retirement system of or created by another state or any of its political 
33.17 	subdivisions, or the District of Columbia, if the income tax laws of the other state or district 
33.18 	permit a similar deduction or exemption or a reciprocal deduction or exemption of a 
33.19 	retirement or pension benefit received from a public retirement system of or created by this 
33.20 	state or any political subdivision of this state.
33.21 	(d) The commissioner must annually adjust the subtraction limits in paragraph (a) and 
33.22 	the phaseout thresholds in paragraph (b), as provided in section 270C.22. The statutory year 
33.23 	is taxable year 2023.

33.24 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
33.25 	31, 2022.

33.26 	Sec. 23. Minnesota Statutes 2022, section 290.0132, is amended by adding a subdivision 
33.27 	to read:
33.28 		Subd. 35.Subpart F income. For a unitary business, as defined in section 290.17, 
33.29 	subdivision 4, paragraph (b), the amount of subpart F income included in gross income 
33.30 	under section 951 of the Internal Revenue Code is a subtraction.

33.31 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
33.32 	31, 2023.

34.1 	Sec. 24. Minnesota Statutes 2022, section 290.0134, is amended by adding a subdivision 
34.2 	to read:
34.3 		Subd. 21.Subpart F income. For a unitary business, as defined in section 290.17, 
34.4 	subdivision 4, paragraph (b), the amount of subpart F income included in gross income 
34.5 	under section 951 of the Internal Revenue Code is a subtraction.

34.6 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
34.7 	31, 2023.

34.8 	Sec. 25. Minnesota Statutes 2022, section 290.06, subdivision 23, is amended to read:
34.9 		Subd. 23.Refund of contributions to political parties and candidates. (a) A taxpayer 
34.10 	may claim a refund equal to the amount of the taxpayer's contributions made in the calendar 
34.11 	year to candidates and to a political party. The maximum refund for an individual must not 
34.12 	exceed $50 $75 and for a married couple, filing jointly, must not exceed $100 $150. A 
34.13 	refund of a contribution is allowed only if the taxpayer files a form required by the 
34.14 	commissioner and attaches to the form a copy of an official refund receipt form issued by 
34.15 	the candidate or party and signed by the candidate, the treasurer of the candidate's principal 
34.16 	campaign committee, or the chair or treasurer of the party unit, after the contribution was 
34.17 	received. The receipt forms must be numbered, and the data on the receipt that are not public 
34.18 	must be made available to the campaign finance and public disclosure board upon its request. 
34.19 	A claim must be filed with the commissioner no sooner than January 1 of the calendar year 
34.20 	in which the contribution was made and no later than April 15 of the calendar year following 
34.21 	the calendar year in which the contribution was made. A taxpayer may file only one claim 
34.22 	per calendar year. Amounts paid by the commissioner after June 15 of the calendar year 
34.23 	following the calendar year in which the contribution was made must include interest at the 
34.24 	rate specified in section 270C.405.
34.25 	(b) No refund is allowed under this subdivision for a contribution to a candidate unless 
34.26 	the candidate:
34.27 	(1) has signed an agreement to limit campaign expenditures as provided in section 
34.28 	10A.322;
34.29 	(2) is seeking an office for which voluntary spending limits are specified in section 
34.30 	10A.25; and
34.31 	(3) has designated a principal campaign committee.
35.1 	This subdivision does not limit the campaign expenditures of a candidate who does not 
35.2 	sign an agreement but accepts a contribution for which the contributor improperly claims 
35.3 	a refund.
35.4 	(c) For purposes of this subdivision, "political party" means a major political party as 
35.5 	defined in section 200.02, subdivision 7, or a minor political party qualifying for inclusion 
35.6 	on the income tax or property tax refund form under section 10A.31, subdivision 3a.
35.7 	A "major party" or "minor party" includes the aggregate of that party's organization 
35.8 	within each house of the legislature, the state party organization, and the party organization 
35.9 	within congressional districts, counties, legislative districts, municipalities, and precincts.
35.10 	"Candidate" means a candidate as defined in section 10A.01, subdivision 10, except a 
35.11 	candidate for judicial office.
35.12 	"Contribution" means a gift of money.
35.13 	(d) The commissioner shall make copies of the form available to the public and candidates 
35.14 	upon request.
35.15 	(e) The following data collected or maintained by the commissioner under this subdivision 
35.16 	are private: the identities of individuals claiming a refund, the identities of candidates to 
35.17 	whom those individuals have made contributions, and the amount of each contribution.
35.18 	(f) The commissioner shall report to the campaign finance and public disclosure board 
35.19 	by each August 1 a summary showing the total number and aggregate amount of political 
35.20 	contribution refunds made on behalf of each candidate and each political party. These data 
35.21 	are public.
35.22 	(g) The amount necessary to pay claims for the refund provided in this section is 
35.23 	appropriated from the general fund to the commissioner of revenue.
35.24 	(h) For a taxpayer who files a claim for refund via the Internet or other electronic means, 
35.25 	the commissioner may accept the number on the official receipt as documentation that a 
35.26 	contribution was made rather than the actual receipt as required by paragraph (a).

35.27 	EFFECTIVE DATE. This section is effective January 1, 2024, and applies to refunds 
35.28 	for contributions made in calendar year 2024 and thereafter.

35.29 	Sec. 26. Minnesota Statutes 2022, section 290.06, subdivision 39, is amended to read:
35.30 		Subd. 39.Film production credit. (a) A taxpayer, including a taxpayer to whom a credit 
35.31 	has been assigned under section 116U.27, subdivision 3, may claim a credit against the tax 
36.1 	imposed by this chapter equal to the amount certified on a credit certificate under section 
36.2 	116U.27, subject to the limitations in this subdivision.
36.3 	(b) The credit is limited to the liability for tax, as computed under this chapter, for the 
36.4 	taxable year. If the amount of the credit determined under this subdivision for any taxable 
36.5 	year exceeds this limitation, the excess is a film production credit carryover to each of the 
36.6 	five succeeding taxable years. The entire amount of the excess unused credit for the taxable 
36.7 	year is carried first to the earliest of the taxable years to which the credit may be carried 
36.8 	and then to each successive year to which the credit may be carried. The amount of the 
36.9 	unused credit that may be added under this paragraph must not exceed the taxpayer's liability 
36.10 	for tax, less any film production credit for the taxable year.
36.11 	(c) Credits allowed to a partnership, a limited liability company taxed as a partnership, 
36.12 	or an S corporation are passed through to the partners, members, shareholders, or owners, 
36.13 	respectively, pro rata to each based on the partner's, member's, shareholder's, or owner's 
36.14 	share of the entity's assets, or as specially allocated in the organizational documents or any 
36.15 	other executed agreement, as of the last day of the taxable year.
36.16 	(d) Notwithstanding the approval and certification by the commissioner of employment 
36.17 	and economic development under section 116U.27, the commissioner may utilize any audit 
36.18 	and examination powers under chapter 270C or 289A to the extent necessary to verify that 
36.19 	the taxpayer is eligible for the credit and to assess the amount of any improperly claimed 
36.20 	credit. The commissioner may only assess the original recipient of the credit certificate for 
36.21 	the amount of improperly claimed credits. The commissioner may not assess a credit 
36.22 	certificate assignee for any amount of improperly claimed credits, and an assignee's claim 
36.23 	for credit is not affected by the commissioner's assessment of improperly claimed credits 
36.24 	against the assignor.
36.25 	(e) This subdivision expires January 1, 2025 2033, for taxable years beginning after 
36.26 	December 31, 2024, except that the expiration of this section does not affect the commissioner 
36.27 	of revenue's authority to audit or power of examination and assessment for credits claimed 
36.28 	under this subdivision.

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

36.30 	Sec. 27. Minnesota Statutes 2022, section 290.06, is amended by adding a subdivision to 
36.31 	read:
36.32 		Subd. 41.Pass-through entity tax paid to another state. (a) A credit is allowed against 
36.33 	the pass-through entity tax imposed under section 289A.08, subdivision 7a, for pass-through 
37.1 	entity tax paid to another state. The credit under this subdivision shall be deemed to be 
37.2 	allowed as a credit for taxes paid to another state in accordance with subdivision 22, 
37.3 	paragraph (a), and can only be claimed by the qualifying owner. As used in this subdivision, 
37.4 	"pass-through entity tax" means the tax under section 289A.08, subdivision 7a. The credit 
37.5 	allowed under this subdivision must be claimed in a manner prescribed by the commissioner.
37.6 	(b) This section expires at the same time and on the same terms as section 164(b)(6)(B) 
37.7 	of the Internal Revenue Code, except that the expiration of this section does not affect the 
37.8 	commissioner's authority to audit or power of examination and assessments for credits 
37.9 	claimed under this section.

37.10 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
37.11 	after December 21, 2021.

37.12 	Sec. 28. Minnesota Statutes 2022, section 290.067, is amended to read:
37.13 	290.067 DEPENDENT GREAT START CHILD CARE AND DEPENDENT CARE 
37.14 	CREDIT.
37.15 		Subdivision 1.Amount of credit. (a) A taxpayer may take as a credit against the tax 
37.16 	due from the taxpayer and a spouse, if any, under this chapter an amount equal to the 
37.17 	dependent care credit for which the taxpayer is eligible pursuant to the provisions of section 
37.18 	21 of the Internal Revenue Code except that in determining whether the child qualified as 
37.19 	a dependent, income received as a Minnesota family investment program grant or allowance 
37.20 	to or on behalf of the child must not be taken into account in determining whether the child 
37.21 	received more than half of the child's support from the taxpayer the taxpayer's eligible 
37.22 	dependent care expenses, as determined under subdivisions 1a and 1b, multiplied by the 
37.23 	taxpayer's credit percentage, as determined under subdivision 1c.
37.24 	(b) If a child who has not attained the age of six years at the close of the taxable year is 
37.25 	cared for at a licensed family day care home operated by the child's parent, the taxpayer is 
37.26 	deemed to have paid employment-related expenses. If the child is 16 months old or younger 
37.27 	at the close of the taxable year, the amount of expenses deemed to have been paid equals 
37.28 	the maximum limit for one qualified individual under section 21(c) and (d) of the Internal 
37.29 	Revenue Code. If the child is older than 16 months of age but has not attained the age of 
37.30 	six years at the close of the taxable year, the amount of expenses deemed to have been paid 
37.31 	equals the amount the licensee would charge for the care of a child of the same age for the 
37.32 	same number of hours of care.
37.33 	(c) If a married couple:
38.1 	(1) has a child who has not attained the age of one year at the close of the taxable year;
38.2 	(2) files a joint tax return for the taxable year; and
38.3 	(3) does not participate in a dependent care assistance program as defined in section 129 
38.4 	of the Internal Revenue Code, in lieu of the actual employment related expenses paid for 
38.5 	that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of (i) 
38.6 	the combined earned income of the couple or (ii) the amount of the maximum limit for one 
38.7 	qualified individual under section 21(c) and (d) of the Internal Revenue Code will be deemed 
38.8 	to be the employment related expense paid for that child. The earned income limitation of 
38.9 	section 21(d) of the Internal Revenue Code shall not apply to this deemed amount. These 
38.10 	deemed amounts apply regardless of whether any employment-related expenses have been 
38.11 	paid.
38.12 	(d) If the taxpayer is not required and does not file a federal individual income tax return 
38.13 	for the tax year, no credit is allowed for any amount paid to any person unless:
38.14 	(1) the name, address, and taxpayer identification number of the person are included on 
38.15 	the return claiming the credit; or
38.16 	(2) if the person is an organization described in section 501(c)(3) of the Internal Revenue 
38.17 	Code and exempt from tax under section 501(a) of the Internal Revenue Code, the name 
38.18 	and address of the person are included on the return claiming the credit.
38.19 	In the case of a failure to provide the information required under the preceding sentence, 
38.20 	the preceding sentence does not apply if it is shown that the taxpayer exercised due diligence 
38.21 	in attempting to provide the information required.
38.22 	(e) (b) In the case of a nonresident, part-year resident, or a person who has earned income 
38.23 	not subject to tax under this chapter including earned income excluded pursuant to section 
38.24 	290.0132, subdivision 10, the credit determined under section 21 of the Internal Revenue 
38.25 	Code this section must be allocated based on the ratio by which the earned income of the 
38.26 	claimant and the claimant's spouse from Minnesota sources bears to the total earned income 
38.27 	of the claimant and the claimant's spouse using the percentage calculated in section 290.06, 
38.28 	subdivision 2c, paragraph (e).
38.29 	(f) For residents of Minnesota, the subtractions for military pay under section 290.0132, 
38.30 	subdivisions 11 and 12, are not considered "earned income not subject to tax under this 
38.31 	chapter."
39.1 	(g) For residents of Minnesota, the exclusion of combat pay under section 112 of the 
39.2 	Internal Revenue Code is not considered "earned income not subject to tax under this 
39.3 	chapter."
39.4 	(h) For taxpayers with federal adjusted gross income in excess of $52,230, the credit is 
39.5 	equal to the lesser of the credit otherwise calculated under this subdivision, or the amount 
39.6 	equal to $600 minus five percent of federal adjusted gross income in excess of $52,230 for 
39.7 	taxpayers with one qualified individual, or $1,200 minus five percent of federal adjusted 
39.8 	gross income in excess of $52,230 for taxpayers with two or more qualified individuals, 
39.9 	but in no case is the credit less than zero.
39.10 	(c) For the purposes of this section, the following terms have the meanings given:
39.11 	(1) "employment-related expenses" has the meaning given in section 21(b)(2) of the 
39.12 	Internal Revenue Code;
39.13 	(2) "qualifying individual" has the meaning given in section 21(b)(1) of the Internal 
39.14 	Revenue Code, except that in determining whether the child qualified as a dependent, income 
39.15 	received as a Minnesota family investment program grant or allowance to or on behalf of 
39.16 	the child must not be taken into account in determining whether the child received more 
39.17 	than half of the child's support from the taxpayer; and
39.18 	(3) "young child" means a qualifying individual who had not attained the age of five by 
39.19 	December 31 of the taxable year.
39.20 		Subd. 1a.Eligible dependent care expenses. (a) A taxpayer's eligible dependent care 
39.21 	expenses equals the amount of employment-related expenses incurred by the taxable year, 
39.22 	subject to the limitations in paragraphs (b) and (c).
39.23 	(b) Except as provided in subdivision 1b, a taxpayer's eligible dependent care expenses 
39.24 	are limited to:
39.25 	(1) $3,000 if there was one qualifying individual with respect to the taxpayer; or
39.26 	(2) $6,000 if there were two or more qualifying individuals with respect to the taxpayer.
39.27 		Subd. 1b.Eligible expenses for taxpayers with young children. For a taxpayer with 
39.28 	a young child, the limit in paragraph (b) is increased as follows:
39.29 	(1) for a taxpayer with one young child with respect to the taxpayer, the limit is increased 
39.30 	by $7,000;
39.31 	(2) for a taxpayer with two young children with respect to the taxpayer, the limit is 
39.32 	increased by $14,000; and
40.1 	(3) for a taxpayer with three or more young children with respect to the taxpayer, the 
40.2 	limit is increased by $19,000.
40.3 		Subd. 1c.Credit percentage. (a) The credit percentage equals 50 percent, subject to 
40.4 	the reductions in paragraphs (b) and (c).
40.5 	(b) A taxpayer's credit percentage is reduced by one percentage point for each $800, or 
40.6 	fraction thereof, by which the taxpayer's adjusted gross income exceeds $160,000.
40.7 	(c) For a married taxpayer filing a separate return, the credit percentage must be calculated 
40.8 	under paragraphs (a) and (b), except the adjusted gross income thresholds are one-half the 
40.9 	amounts for other filers, as adjusted for inflation under subdivision 2b.
40.10 		Subd. 2b.Inflation adjustment. The commissioner shall annually adjust the dollar 
40.11 	amount of the income threshold at which the maximum credit percentage begins to be 
40.12 	reduced under subdivision 1 1c as provided in section 270C.22. The statutory year is taxable 
40.13 	year 2019 2023.
40.14 		Subd. 2c.Deemed expenses. (a) If a child who has not attained the age of six years at 
40.15 	the close of the taxable year is cared for at a licensed family day care home operated by the 
40.16 	child's parent, the taxpayer is deemed to have paid employment-related expenses. The 
40.17 	amount of expenses deemed to have been paid equals the amount the licensee would charge 
40.18 	for the care of a child of the same age for the same number of hours of care.
40.19 	(b) If a married couple:
40.20 	(1) has a child who has not attained the age of one year at the close of the taxable year; 
40.21 	and
40.22 	(2) does not participate in a dependent care assistance program as defined in section 129 
40.23 	of the Internal Revenue Code; then in lieu of the actual employment-related expenses paid 
40.24 	for that child under or the deemed amount under paragraph (a), the amount deemed to be 
40.25 	the employment-related expense paid for that child equals the lesser of:
40.26 	(i) the combined earned income of the couple; or
40.27 	(ii) the amount of the maximum limit for one qualified individual under subdivision 1a, 
40.28 	as increased by subdivision 1b.
40.29 	The earned income limitation of section 21(d) of the Internal Revenue Code shall not apply 
40.30 	to this deemed amount. These deemed amounts apply regardless of whether any 
40.31 	employment-related expenses have been paid.
41.1 		Subd. 2d.Identifying information required. (a) No credit is allowed for any amount 
41.2 	paid to any person unless:
41.3 	(1) the name, address, and taxpayer identification number of the person are included on 
41.4 	the return claiming the credit; or
41.5 	(2) if the person is an organization described in section 501(c)(3) of the Internal Revenue 
41.6 	Code and exempt from tax under section 501(a) of the Internal Revenue Code, the name 
41.7 	and address of the person are included on the return claiming the credit.
41.8 	(b) The rule in section 21(e)(10) of the Internal Revenue Code applies for the credit 
41.9 	under this section.
41.10 		Subd. 3.Credit to be refundable. If the amount of credit which a claimant would be 
41.11 	eligible to receive pursuant to this subdivision exceeds the claimant's tax liability under 
41.12 	chapter 290, the excess amount of the credit shall be refunded to the claimant by the 
41.13 	commissioner of revenue. An amount sufficient to pay the refunds required by this section 
41.14 	is appropriated to the commissioner from the general fund.
41.15 		Subd. 4.Right to file claim. The right to file a claim under this section shall be personal 
41.16 	to the claimant and shall not survive death, but such right may be exercised on behalf of a 
41.17 	claimant by the claimant's legal guardian or attorney-in-fact. When a claimant dies after 
41.18 	having filed a timely claim the amount thereof shall be disbursed to another member of the 
41.19 	household as determined by the commissioner of revenue. If the claimant was the only 
41.20 	member of a household, the claim may be paid to the claimant's personal representative, 
41.21 	but if neither is appointed and qualified within two years of the filing of the claim, the 
41.22 	amount of the claim shall escheat to the state.
41.23 		Subd. 5.Employment-related expenses. For the purposes of determining 
41.24 	employment-related expenses, the provisions of sections 21(d) and 21(e)(6) of the Internal 
41.25 	Revenue Code apply.
41.26 		Subd. 6.Rules for married couples filing separate returns. A married taxpayer filing 
41.27 	a separate return may claim the credit under this section, but only one spouse may claim 
41.28 	the credit.

41.29 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
41.30 	31, 2022.

42.1 	Sec. 29. Minnesota Statutes 2022, section 290.0671, subdivision 1, is amended to read:
42.2 		Subdivision 1.Credit allowed. (a) An individual who is a resident of Minnesota is 
42.3 	allowed a credit against the tax imposed by this chapter equal to a percentage of earned 
42.4 	income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of the 
42.5 	Internal Revenue Code, except that:
42.6 	(1) a taxpayer with no qualifying children who has attained the age of 19, but not attained 
42.7 	age 65 before the close of the taxable year and is otherwise eligible for a credit under section 
42.8 	32 of the Internal Revenue Code may also receive a credit; and
42.9 	(2) a taxpayer who is otherwise eligible for a credit under section 32 of the Internal 
42.10 	Revenue Code remains eligible for the credit even if the taxpayer's earned income or adjusted 
42.11 	gross income exceeds the income limitation under section 32 of the Internal Revenue Code.; 
42.12 	and
42.13 	(3) the requirements of section 32(m) of the Internal Revenue Code do not apply.
42.14 	(b) For individuals with no qualifying children, the credit equals 3.9 percent of the first 
42.15 	$7,150 of earned income. The credit is reduced by 2.0 percent of earned income or adjusted 
42.16 	gross income, whichever is greater, in excess of the phaseout threshold, but in no case is 
42.17 	the credit less than zero.
42.18 	(c) For individuals with one qualifying child, the credit equals 9.35 percent of the first 
42.19 	$11,950 of earned income. The credit is reduced by 6.0 percent of earned income or adjusted 
42.20 	gross income, whichever is greater, in excess of the phaseout threshold, but in no case is 
42.21 	the credit less than zero.
42.22 	(d) For individuals with two qualifying children, the credit equals 11 percent of the first 
42.23 	$19,600 of earned income. The credit is reduced by 10.5 percent of earned income or adjusted 
42.24 	gross income, whichever is greater, in excess of the phaseout threshold, but in no case is 
42.25 	the credit less than zero.
42.26 	(e) For individuals with three or more qualifying children, the credit equals 12.5 percent 
42.27 	of the first $20,000 of earned income. The credit is reduced by 10.5 percent of earned income 
42.28 	or adjusted gross income, whichever is greater, in excess of the phaseout threshold, but in 
42.29 	no case is the credit less than zero.
42.30 	(f) For a part-year resident, the credit must be allocated based on the percentage calculated 
42.31 	under section 290.06, subdivision 2c, paragraph (e).
42.32 	(g) For a person who was a resident for the entire tax year and has earned income not 
42.33 	subject to tax under this chapter, including income excluded under section 290.0132, 
43.1 	subdivision 10, the credit must be allocated based on the ratio of federal adjusted gross 
43.2 	income reduced by the earned income not subject to tax under this chapter over federal 
43.3 	adjusted gross income. For purposes of this paragraph, the following clauses are not 
43.4 	considered "earned income not subject to tax under this chapter":
43.5 	(1) the subtractions for military pay under section 290.0132, subdivisions 11 and 12;
43.6 	(2) the exclusion of combat pay under section 112 of the Internal Revenue Code; and
43.7 	(3) income derived from an Indian reservation by an enrolled member of the reservation 
43.8 	while living on the reservation.
43.9 	(h) For the purposes of this section, the phaseout threshold equals:
43.10 	(1) $14,570 for married taxpayers filing joint returns with no qualifying children;
43.11 	(2) $8,730 for all other taxpayers with no qualifying children;
43.12 	(3) $28,610 for married taxpayers filing joint returns with one qualifying child;
43.13 	(4) $22,770 for all other taxpayers with one qualifying child;
43.14 	(5) $32,840 for married taxpayers filing joint returns with two qualifying children;
43.15 	(6) $27,000 for all other taxpayers with two qualifying children;
43.16 	(7) $33,140 for married taxpayers filing joint returns with three or more qualifying 
43.17 	children; and
43.18 	(8) $27,300 for all other taxpayers with three or more qualifying children.
43.19 	(i) The commissioner shall construct tables showing the amount of the credit at various 
43.20 	income levels and make them available to taxpayers. The tables shall follow the schedule 
43.21 	contained in this subdivision, except that the commissioner may graduate the transition 
43.22 	between income brackets.

43.23 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
43.24 	31, 2022.

43.25 	Sec. 30. Minnesota Statutes 2022, section 290.0674, is amended to read:
43.26 	290.0674 MINNESOTA EDUCATION CREDIT.
43.27 		Subdivision 1.Credit allowed; definitions. An individual is allowed a credit against 
43.28 	the tax imposed by this chapter in an amount equal to 75 percent of the amount paid for 
43.29 	education-related expenses for a qualifying child in kindergarten through grade 12.
44.1 		Subd. 1a.Definitions. (a) For purposes of this section, the following terms have the 
44.2 	meanings given them.
44.3 	(b) "Education-related expenses" means:
44.4 	(1) qualifying instructional fees or tuition for instruction by an instructor under section 
44.5 	120A.22, subdivision 10, clause (1), (2), (3), (4), or (5), or a member of the Minnesota 
44.6 	Music Teachers Association, and who is not a lineal ancestor or sibling of the dependent 
44.7 	for instruction outside the regular school day or school year, including tutoring, driver's 
44.8 	education offered as part of school curriculum, regardless of whether it is taken from a 
44.9 	public or private entity or summer camps, in grade or age appropriate curricula that 
44.10 	supplement curricula and instruction available during the regular school year, that assists a 
44.11 	dependent to improve knowledge of core curriculum areas or to expand knowledge and 
44.12 	skills under the required academic standards under section 120B.021, subdivision 1, and 
44.13 	the world languages standards under section 120B.022, subdivision 1, and that do not include 
44.14 	the teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such 
44.15 	tenets, doctrines, or worship;
44.16 	(2) expenses for textbooks, including books and other instructional materials and 
44.17 	equipment purchased or leased for use in elementary and secondary schools in teaching 
44.18 	only those subjects legally and commonly taught in public elementary and secondary schools 
44.19 	in this state. "Textbooks" does not include instructional books and materials used in the 
44.20 	teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such 
44.21 	tenets, doctrines, or worship, nor does it include books or materials for extracurricular 
44.22 	activities including sporting events, musical or dramatic events, speech activities, driver's 
44.23 	education, or similar programs;
44.24 	(3) a maximum expense of $200 per family for personal computer hardware, excluding 
44.25 	single purpose processors, and educational software that assists a dependent to improve 
44.26 	knowledge of core curriculum areas or to expand knowledge and skills under the required 
44.27 	academic standards under section 120B.021, subdivision 1, and the elective standard under 
44.28 	section 120B.022, subdivision 1, clause (2), purchased for use in the taxpayer's home and 
44.29 	not used in a trade or business regardless of whether the computer is required by the 
44.30 	dependent's school; and
44.31 	(4) the amount paid to others for transportation of a qualifying child attending an 
44.32 	elementary or secondary school situated in Minnesota, North Dakota, South Dakota, Iowa, 
44.33 	or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory 
44.34 	attendance laws, which is not operated for profit, and which adheres to the provisions of 
45.1 	the Civil Rights Act of 1964 and chapter 363A. Amounts under this clause exclude any 
45.2 	expense the taxpayer incurred in using the taxpayer's or the qualifying child's vehicle.
45.3 	(c) "Qualified instructor" means an individual who is not a lineal ancestor or sibling of 
45.4 	the dependent and who is:
45.5 	(1) an instructor under section 120A.22, subdivision 10, clause (1), (2), (3), (4), or (5); 
45.6 	or
45.7 	(2) a member of the Minnesota Music Teachers Association.
45.8 	For purposes of this section, (d) "Qualifying child" has the meaning given in section 
45.9 	32(c)(3) of the Internal Revenue Code.
45.10 	(e) "Qualifying instructional fees or tuition" means fees or tuition for instruction by a 
45.11 	qualified instructor outside the regular school day or school year, and that does not include 
45.12 	the teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such 
45.13 	tenets, doctrines, or worship, including:
45.14 	(1) driver's education offered as part of school curriculum, regardless of whether it is 
45.15 	taken from a public or private entity; or
45.16 	(2) tutoring or summer camps that:
45.17 	(i) are in grade or age appropriate curricula that supplement curricula and instruction 
45.18 	available during the regular school year;
45.19 	(ii) assist a dependent to improve knowledge of core curriculum areas; or
45.20 	(iii) expand knowledge and skills under:
45.21 	(A) the required academic standards under section 120B.021, subdivision 1; and
45.22 	(B) the world languages standards under section 120B.022, subdivision 1.
45.23 		Subd. 2.Limitations. (a) For claimants with adjusted gross income not greater than 
45.24 	$33,500 $70,000, the maximum credit allowed for a family is $1,000 $1,500 multiplied by 
45.25 	the number of qualifying children in kindergarten through grade 12 in the family. The 
45.26 	maximum credit for families with one qualifying child in kindergarten through grade 12 is 
45.27 	reduced by $1 for each $4 of household adjusted gross income over $33,500 $70,000, and 
45.28 	the maximum credit for families with two or more qualifying children in kindergarten 
45.29 	through grade 12 is reduced by $2 for each $4 of household adjusted gross income over 
45.30 	$33,500 $70,000, but in no case is the credit less than zero.
46.1 	(b) In the case of a married claimant, a credit is not allowed unless a joint income tax 
46.2 	return is filed.
46.3 	(c) For a nonresident or part-year resident, the credit determined under subdivision 1 
46.4 	and the maximum credit amount in paragraph (a) must be allocated using the percentage 
46.5 	calculated in section 290.06, subdivision 2c, paragraph (e).
46.6 		Subd. 2a.Income. (a) For purposes of this section, "income" means the sum of the 
46.7 	following:
46.8 	(1) federal adjusted gross income as defined in section 62 of the Internal Revenue Code; 
46.9 	and
46.10 	(2) the sum of the following amounts to the extent not included in clause (1):
46.11 	(i) all nontaxable income;
46.12 	(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, 
46.13 	paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss 
46.14 	carryover allowed under section 469(b) of the Internal Revenue Code;
46.15 	(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a 
46.16 	solvent individual excluded from gross income under section 108(g) of the Internal Revenue 
46.17 	Code;
46.18 	(iv) cash public assistance and relief;
46.19 	(v) any pension or annuity (including railroad retirement benefits, all payments received 
46.20 	under the federal Social Security Act, Supplemental Security Income, and veterans benefits), 
46.21 	which was not exclusively funded by the claimant or spouse, or which was funded exclusively 
46.22 	by the claimant or spouse and which funding payments were excluded from federal adjusted 
46.23 	gross income in the years when the payments were made;
46.24 	(vi) interest received from the federal or a state government or any instrumentality or 
46.25 	political subdivision thereof;
46.26 	(vii) workers' compensation;
46.27 	(viii) nontaxable strike benefits;
46.28 	(ix) the gross amounts of payments received in the nature of disability income or sick 
46.29 	pay as a result of accident, sickness, or other disability, whether funded through insurance 
46.30 	or otherwise;
47.1 	(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 
47.2 	1986, as amended through December 31, 1995;
47.3 	(xi) contributions made by the claimant to an individual retirement account, including 
47.4 	a qualified voluntary employee contribution; simplified employee pension plan; 
47.5 	self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of 
47.6 	the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal 
47.7 	Revenue Code;
47.8 	(xii) nontaxable scholarship or fellowship grants;
47.9 	(xiii) the amount of deduction allowed under section 199 of the Internal Revenue Code;
47.10 	(xiv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue 
47.11 	Code;
47.12 	(xv) the amount deducted for tuition expenses under section 222 of the Internal Revenue 
47.13 	Code; and
47.14 	(xvi) the amount deducted for certain expenses of elementary and secondary school 
47.15 	teachers under section 62(a)(2)(D) of the Internal Revenue Code.
47.16 	In the case of an individual who files an income tax return on a fiscal year basis, the 
47.17 	term "federal adjusted gross income" means federal adjusted gross income reflected in the 
47.18 	fiscal year ending in the next calendar year. Federal adjusted gross income may not be 
47.19 	reduced by the amount of a net operating loss carryback or carryforward or a capital loss 
47.20 	carryback or carryforward allowed for the year.
47.21 	(b) "Income" does not include:
47.22 	(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
47.23 	(2) amounts of any pension or annuity that were exclusively funded by the claimant or 
47.24 	spouse if the funding payments were not excluded from federal adjusted gross income in 
47.25 	the years when the payments were made;
47.26 	(3) surplus food or other relief in kind supplied by a governmental agency;
47.27 	(4) relief granted under chapter 290A;
47.28 	(5) child support payments received under a temporary or final decree of dissolution or 
47.29 	legal separation; and
48.1 	(6) restitution payments received by eligible individuals and excludable interest as 
48.2 	defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, 
48.3 	Public Law 107-16.
48.4 		Subd. 4.Credit to be refundable. If the amount of credit that the claimant is eligible 
48.5 	to receive under this section exceeds the claimant's tax liability under this chapter, the 
48.6 	commissioner shall refund the excess to the claimant.
48.7 		Subd. 5.Appropriation. An amount sufficient to pay the refunds required by this section 
48.8 	is appropriated to the commissioner from the general fund.
48.9 		Subd. 6.Inflation adjustment.  The commissioner shall annually adjust the adjusted 
48.10 	gross income amounts in subdivision 2, as provided in section 270C.22. The statutory year 
48.11 	is taxable year 2023.

48.12 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
48.13 	31, 2022.

48.14 	Sec. 31. Minnesota Statutes 2022, section 290.0677, subdivision 1, is amended to read:
48.15 		Subdivision 1.Credit allowed; current military service.  (a) An individual is allowed 
48.16 	a credit against the tax due under this chapter equal to $59 for each month or portion thereof 
48.17 	that the individual was in active military service in a designated area after September 11, 
48.18 	2001, and before January 1, 2009, while a Minnesota domiciliary.
48.19 	(b) An individual is allowed a credit against the tax due under this chapter equal to $120 
48.20 	for each month or portion thereof that the individual was in active military service in a 
48.21 	designated area after December 31, 2008, while a Minnesota domiciliary.
48.22 	(c) For active service performed after September 11, 2001, and before December 31, 
48.23 	2006, the individual may claim the credit in the taxable year beginning after December 31, 
48.24 	2005, and before January 1, 2007.
48.25 	(d) For active service performed after December 31, 2006, the individual may claim the 
48.26 	credit for the taxable calendar year in which the active service was performed.

48.27 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
48.28 	31, 2022.

48.29 	Sec. 32. Minnesota Statutes 2022, section 290.0681, subdivision 3, is amended to read:
48.30 		Subd. 3.Applications; allocations. (a) To qualify for a credit or grant under this section, 
48.31 	the developer of a project must apply to the office before the rehabilitation begins. The 
49.1 	application must contain the information and be in the form prescribed by the office. The 
49.2 	office may collect a fee for application of up to 0.5 percent of qualified rehabilitation 
49.3 	expenditures, up to $40,000, based on estimated qualified rehabilitation expenditures, to 
49.4 	offset costs associated with personnel and administrative expenses related to administering 
49.5 	the credit and preparing the economic impact report in subdivision 9. Application fees are 
49.6 	deposited in the account. The application must indicate if the application is for a credit or 
49.7 	a grant in lieu of the credit or a combination of the two and designate the taxpayer qualifying 
49.8 	for the credit or the recipient of the grant.
49.9 	(b) Upon approving an application for credit, the office shall issue allocation certificates 
49.10 	that:
49.11 	(1) verify eligibility for the credit or grant;
49.12 	(2) state the amount of credit or grant anticipated with the project, with the credit amount 
49.13 	equal to 100 percent and the grant amount equal to 90 percent of the federal credit anticipated 
49.14 	in the application;
49.15 	(3) state that the credit or grant allowed may increase or decrease if the federal credit 
49.16 	the project receives at the time it is placed in service is different than the amount anticipated 
49.17 	at the time the allocation certificate is issued; and
49.18 	(4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer or 
49.19 	grant recipient is entitled to receive one-fifth of the total amount of either the credit or the 
49.20 	grant at the time the project is placed in service, provided that date is within threefive
49.21 	calendar years following the issuance of the allocation certificate.
49.22 	(c) The office, in consultation with the commissioner, shall determine if the project is 
49.23 	eligible for a credit or a grant under this section and must notify the developer in writing 
49.24 	of its determination. Eligibility for the credit is subject to review and audit by the 
49.25 	commissioner.
49.26 	(d) The federal credit recapture and repayment requirements under section 50 of the 
49.27 	Internal Revenue Code do not apply to the credit allowed under this section.
49.28 	(e) Any decision of the office under paragraph (c) may be challenged as a contested case 
49.29 	under chapter 14. The contested case proceeding must be initiated within 45 days of the 
49.30 	date of written notification by the office.

49.31 	EFFECTIVE DATE. This section is effective for applications for allocation certificates 
49.32 	submitted after June 30, 2023.

50.1 	Sec. 33. Minnesota Statutes 2022, section 290.0681, subdivision 4, is amended to read:
50.2 		Subd. 4.Credit certificates; grants. (a)(1) The developer of a project for which the 
50.3 	office has issued an allocation certificate must notify the office when the project is placed 
50.4 	in service. Upon verifying that the project has been placed in service, and was allowed a 
50.5 	federal credit, the office must issue a credit certificate to the taxpayer designated in the 
50.6 	application or must issue a grant to the recipient designated in the application. The credit 
50.7 	certificate must state the amount of the credit.
50.8 	(2) The credit amount equals the federal credit allowed for the project.
50.9 	(3) The grant amount equals 90 percent of the federal credit allowed for the project.
50.10 	(b) The recipient of a credit certificate may assign the certificate to another taxpayer 
50.11 	before the first one-fifth payment is claimed, which is then allowed the credit under this 
50.12 	section or section 297I.20, subdivision 3. Before the payment is claimed, the first assignee 
50.13 	may subsequently assign the credit certificate in whole, but not in part, to a second assignee. 
50.14 	A second assignment may only be assigned to a financial institution. An assignment is not 
50.15 	valid unless the assignee notifies the commissioner within 30 days of the date that the 
50.16 	assignment is made. The commissioner shall prescribe the forms necessary for notifying 
50.17 	the commissioner of the assignment of a credit certificate and for claiming a credit by 
50.18 	assignment. The original credit certificate recipient, and each assignee, must file a return 
50.19 	with the commissioner for the taxable year that the project is placed in service.
50.20 	(c) Credits passed through to partners, members, shareholders, or owners pursuant to 
50.21 	subdivision 5 are not an assignment of a credit certificate under this subdivision.
50.22 	(d) A grant agreement between the office and the recipient of a grant may allow the 
50.23 	grant to be issued to another individual or entity.

50.24 	EFFECTIVE DATE. This section is effective for projects placed in service after June 
50.25 	30, 2023.

50.26 	Sec. 34. Minnesota Statutes 2022, section 290.0685, subdivision 1, is amended to read:
50.27 		Subdivision 1.Credit allowed. (a) An individual who is a resident of Minnesota is 
50.28 	allowed a credit against the tax imposed by this chapter equal to $2,000 for each birth:
50.29 	(1) for which a certificate of birth resulting in stillbirth has been issued under section 
50.30 	144.2151.; or
50.31 	(2) outside of Minnesota for which there is a certificate similar to the certificate under 
50.32 	section 144.2151 that documents that the stillbirth occurred under the applicable local laws.
51.1 	(b) The credit under this section is allowed only in the taxable year in which the stillbirth 
51.2 	occurred and if the child would have been a dependent of the taxpayer as defined in section 
51.3 	152 of the Internal Revenue Code.
51.4 	(b) (c) For a nonresident or part-year resident, the credit must be allocated based on the 
51.5 	percentage calculated under section 290.06, subdivision 2c, paragraph (e).

51.6 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
51.7 	31, 2022.

51.8 	Sec. 35. [290.0687] MINNESOTA CHILD TAX CREDIT.
51.9 		Subdivision 1.Definitions. For purposes of this section, the following terms have the 
51.10 	meanings given:
51.11 	(1) "child" means a qualifying child, as defined in section 152(c) of the Internal Revenue 
51.12 	Code, who was under 18 years of age at the end of the taxable year;
51.13 	(2) "credit" means the Minnesota Child Tax Credit allowed by this section;
51.14 	(3) "disabled adult child" means a qualifying child, as defined in section 152(c) of the 
51.15 	Internal Revenue Code, who was:
51.16 	(i) at least 18 years of age at the end of the taxable year; and
51.17 	(ii) at any time during the taxable year was permanently and totally disabled, as defined 
51.18 	in section 22(e)(3) of the Internal Revenue Code; and
51.19 	(4) "threshold amount" means:
51.20 	(i) $33,300 for individuals who are not married;
51.21 	(ii) $50,000 for married taxpayers filing a joint return; and
51.22 	(iii) $25,000 for married taxpayers filing separate returns.
51.23 		Subd. 2.Credit allowed.  Residents and part-year residents are allowed a credit against 
51.24 	the tax due under this chapter in an amount equal to $620 per child or disabled adult child.
51.25 		Subd. 3.Limitations. (a) The maximum total credit allowed to a taxpayer for the taxable 
51.26 	year is $1,860.
51.27 	(b) The maximum credit, as determined in paragraph (a), is reduced by $62 for each 
51.28 	$1,000 by which the taxpayer's adjusted gross income exceeds the threshold amount. In no 
51.29 	case is the credit less than zero.
52.1 	(c) For part-year residents, the credit must be allocated based on the percentage calculated 
52.2 	under section 290.06, subdivision 2c, paragraph (e).
52.3 	(d) For purposes of this subdivision, marital status is determined under section 7703 of 
52.4 	the Internal Revenue Code.
52.5 		Subd. 4.Credit refundable. If the amount of credit which the claimant is eligible to 
52.6 	receive under this section exceeds the claimant's tax liability under this chapter, the 
52.7 	commissioner shall refund the excess to the claimant.
52.8 		Subd. 5.Inflation adjustment.  The commissioner must annually adjust the credit amount 
52.9 	under subdivision 2, the dollar amount of the income threshold at which the maximum credit 
52.10 	begins to be reduced under subdivision 3, and the maximum credit, as provided in section 
52.11 	270C.22. The statutory year is taxable year 2023.
52.12 		Subd. 6.Appropriation. An amount sufficient to pay the refunds required by this section 
52.13 	is appropriated to the commissioner from the general fund.
52.14 		Subd. 7.Sunset. This section expires for taxable years beginning after December 31, 
52.15 	2030. The expiration of this section does not affect the commissioner's authority to audit 
52.16 	or power of examination and assessment for credits claimed under this section.

52.17 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
52.18 	31, 2022.

52.19 	Sec. 36. [290.0693] NEW MARKETS TAX CREDIT.
52.20 		Subdivision 1.Definitions. For purposes of this section, terms defined in section 116X.01 
52.21 	have the meanings given in that section.
52.22 		Subd. 2.Credit allowed. (a) An entity that makes a qualified equity investment is 
52.23 	allowed a credit against the tax imposed under this chapter equal to the amount calculated 
52.24 	under section 116X.01, subdivision 2. An entity may claim a credit on each credit allowance 
52.25 	date.
52.26 	(b) Tax credits earned by or allocated to a partnership, a limited liability company taxed 
52.27 	as a partnership, or an S corporation are passed through to the partners, members, 
52.28 	shareholders, or owners, respectively, in accordance with the provisions of any agreement 
52.29 	among the partners, members, shareholders, or owners, or, in the absence of an agreement, 
52.30 	pro rata to each partner, member, shareholder, or owner based on their share of the entity's 
52.31 	assets as of the last day of the taxable year. A pass-through of a credit is not considered a 
52.32 	sale for the purposes of section 116X.01.
53.1 	(c) If the amount of the credit under this section exceeds the taxpayer's liability for tax 
53.2 	under this chapter, the excess is a credit carryover to each of the five succeeding taxable 
53.3 	years. The entire amount of the excess unused credit for the taxable year must be carried 
53.4 	first to the earliest of the taxable years to which the credit may be carried and then to each 
53.5 	successive year to which the credit may be carried. The amount of the unused credit that 
53.6 	may be added under this paragraph may not exceed the taxpayer's liability for tax, less any 
53.7 	credit for the current taxable year.
53.8 		Subd. 3.Credit recapture. (a) The commissioner must recapture credits should it 
53.9 	determine any of the following:
53.10 	(1) any amount of the federal tax credit available with respect to a qualified equity 
53.11 	investment that is eligible for a credit under this section is recaptured under section 45D of 
53.12 	the Internal Revenue Code;
53.13 	(2) the qualified community development entity redeems or makes principal repayment 
53.14 	with respect to a qualified equity investment prior to seven years after the date of issuance 
53.15 	of the qualified equity investment; or
53.16 	(3) the qualified community development entity fails to invest at least 100 percent of 
53.17 	the cash purchase price of the qualified equity investment in qualified low-income community 
53.18 	investments in greater Minnesota counties or metropolitan counties, as applicable, within 
53.19 	12 months of the issuance of the qualified equity investment and maintains the investment 
53.20 	in qualified low-income community investments in greater Minnesota counties or 
53.21 	metropolitan counties, as applicable, until the last credit allowance date for the qualified 
53.22 	equity investment.
53.23 	Upon verification of the event indicated in the notification, the commissioner must notify 
53.24 	the entity otherwise eligible for the credit allowed under this section and issue an assessment 
53.25 	and notify the entity and the commissioner of employment and economic development of 
53.26 	ineligibility for future credits with respect to the qualified equity investment. The recapture 
53.27 	under clause (1) must be proportionate to the federal recapture with respect to the qualified 
53.28 	equity investment. The recapture under clause (2) must be proportionate to the amount of 
53.29 	the redemption or repayment with respect to the qualified equity investment. The recapture 
53.30 	under clause (3) must be proportionate to the amount of qualified equity investment that 
53.31 	was failed to be invested or maintained.
53.32 	(b) For purposes of paragraph (a), clause (3), an investment is considered maintained 
53.33 	by a qualified community development entity even if the investment has been sold or repaid, 
53.34 	provided that the qualified community development entity reinvests an amount equal to the 
54.1 	capital returned to or recovered by the qualified community development entity from the 
54.2 	original investment, exclusive of any profits realized, in another qualified low-income 
54.3 	community investment in this state as required under the greater Minnesota allocation or 
54.4 	metropolitan allocation within 12 months after the receipt of that capital, after notice and 
54.5 	written approval of both the sale and reinvestment by the commissioner of employment and 
54.6 	economic development. Periodic loan repayments received by a qualified community 
54.7 	development entity from a qualified active low-income community business within a calendar 
54.8 	year must be treated as maintained in qualified low-income community investments if a 
54.9 	qualified community development entity reinvests the repayments in qualified low-income 
54.10 	community investments by the end of the current taxable year.
54.11 	(c) A qualified community development entity is not required to reinvest capital returned 
54.12 	from qualified low-income community investments after the sixth anniversary of the issuance 
54.13 	of the qualified equity investment, the proceeds of which were used to make the qualified 
54.14 	low-income community investment, and the qualified low-income community investment 
54.15 	is considered held by the qualified community development entity through the seventh 
54.16 	anniversary of the qualified equity investment's issuance.
54.17 	(d) With respect to any one qualified active low-income community business, the 
54.18 	maximum amount of qualified low-income community investments made in that business 
54.19 	in aggregate with all of its affiliates that may be counted toward the satisfaction of paragraph 
54.20 	(a), clause (3), is $10,000,000, whether made by one or several qualified community 
54.21 	development entities but exclusive of redeemed or repaid qualified low-income community 
54.22 	investment by the qualified active low-income community business.
54.23 	(e) The commissioner shall provide notice to the qualified community development 
54.24 	entity of any proposed recapture of credits pursuant to this subdivision. The notice must 
54.25 	specify the conditions under which the deficiency resulting in the proposed recapture occurred 
54.26 	and state that the credits will be recaptured within 90 days unless the qualified community 
54.27 	development entity complies with the conditions identified in the notice. If the entity does 
54.28 	not comply with the conditions identified in the notice within the 90-day period, the 
54.29 	commissioner shall provide the entity and the taxpayer from whom the credit is to be 
54.30 	recaptured with an order of assessment. Any credit amount that is recaptured must be 
54.31 	recaptured from the taxpayer who claimed the credit on a tax return. The qualified equity 
54.32 	investment authority of the recaptured credits must be returned to the commissioner of 
54.33 	employment and economic development, and must first be awarded pro rata to applicants 
54.34 	that have received awards of qualified equity investment authority and complied with this 
54.35 	subdivision.
55.1 	(f) If credits are recaptured under this section, any remaining outstanding credit is 
55.2 	forfeited.
55.3 		Subd. 4.Sunset. This section expires for taxable years beginning after December 31, 
55.4 	2031, except that the expiration of this section does not affect the commissioner of revenue's 
55.5 	authority to audit or power of examination and assessment for credits claimed under this 
55.6 	section.

55.7 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
55.8 	31, 2023.

55.9 	Sec. 37. [290.0694] CREDIT FOR SALES OF MANUFACTURED HOME PARKS 
55.10 	TO COOPERATIVES.
55.11 		Subdivision 1.Definitions. (a) For purposes of this section, the following definitions 
55.12 	have the meanings given.
55.13 	(b) "Qualified seller" means a taxpayer who sells qualified property to a manufactured 
55.14 	home park cooperative, a nonprofit organization organized under chapter 317A, or a 
55.15 	representative acting on behalf of residents as defined under section 327C.015, subdivision 
55.16 	13.
55.17 	(c) "Qualified property" means a manufactured home park in Minnesota classified as 
55.18 	4c(5)(i) or 4c(5)(iii) under section 273.13, subdivision 25, paragraph (d), that qualifies as 
55.19 	section 1250 property, as calculated under section 1250(a) of the Internal Revenue Code.
55.20 	(d) "Manufactured home park cooperative" has the meaning given in section 273.124, 
55.21 	subdivision 3a.
55.22 		Subd. 2.Credit allowed; carryforward. (a) A qualified seller is allowed a credit against 
55.23 	the tax imposed under this chapter. The credit equals five percent of the amount of the sale 
55.24 	price of the qualified property.
55.25 	(b) If the amount of the credit under this section exceeds the taxpayer's liability for tax 
55.26 	under this chapter, the excess is a credit carryover to each of the five succeeding taxable 
55.27 	years. The entire amount of the excess unused credit for the taxable year must be carried 
55.28 	first to the earliest of the taxable years to which the credit may be carried and then to each 
55.29 	successive year to which the credit may be carried. The amount of the unused credit that 
55.30 	may be added under this paragraph may not exceed the taxpayer's liability for tax, less any 
55.31 	credit for the current taxable year.
56.1 	(c) For nonresidents and part-year residents, the credit must be allocated based on the 
56.2 	percentage calculated under section 290.06, subdivision 2c, paragraph (e).
56.3 		Subd. 3.Partnerships; multiple owners. Credits granted to a partnership, a limited 
56.4 	liability company taxed as a partnership, an S corporation, or multiple owners of property 
56.5 	are passed through to the partners, members, shareholders, or owners, respectively, pro rata 
56.6 	to each partner, member, shareholder, or owner based on their share of the entity's assets 
56.7 	or as specially allocated in their organizational documents or any other executed document, 
56.8 	as of the last day of the taxable year.

56.9 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
56.10 	31, 2022.

56.11 	Sec. 38. [290.0695] SHORT LINE RAILROAD INFRASTRUCTURE 
56.12 	MODERNIZATION CREDIT.
56.13 		Subdivision 1.Definitions. (a) For purpose of this section, the following terms have the 
56.14 	meanings given them.
56.15 	(b) "Eligible taxpayer" means any railroad that is classified by the United States Surface 
56.16 	Transportation Board as a Class II or Class III railroad.
56.17 	(c) "Eligible transferee" means any taxpayer subject to tax under this chapter or chapter 
56.18 	297I.
56.19 	(c) "Qualified railroad reconstruction or replacement expenditures" means gross 
56.20 	expenditures in the taxable year for maintenance, reconstruction, or replacement of railroad 
56.21 	infrastructure, including track, roadbed, bridges, industrial leads and sidings, and track-related 
56.22 	structures owned or leased by a Class II or Class III railroad in Minnesota as of January 1, 
56.23 	2021. Qualified railroad reconstruction or replacement expenditures also includes new 
56.24 	construction of industrial leads, switches, spurs and sidings and extensions of existing sidings 
56.25 	in Minnesota by a Class II or Class III railroad.
56.26 		Subd. 2.Credit allowed; limitation; carryover. (a) An eligible taxpayer is allowed a 
56.27 	credit against the tax due under this chapter equal to 50 percent of:
56.28 	(1) $3,000, multiplied by;
56.29 	(2) the number of miles of railroad track owned or leased within the state by the eligible 
56.30 	taxpayer for which the taxpayer made qualified railroad reconstruction or replacement 
56.31 	expenditures as of the close of the taxable year for which the credit is claimed.
57.1 	(b) If the amount of the credit determined under this section for any taxable year exceeds 
57.2 	the limitation under paragraph (b), the excess is a credit carryover to each of the five 
57.3 	succeeding taxable years. The entire amount of the excess unused credit for the taxable year 
57.4 	must be carried first to the earliest of the taxable years to which the credit may be carried 
57.5 	and then to each successive year to which the credit may be carried. The amount of the 
57.6 	unused credit that may be added under this paragraph must not exceed the taxpayer's liability 
57.7 	for tax less the credit for the taxable year.
57.8 	(c) An eligible taxpayer claiming a credit under this section may not also claim the credit 
57.9 	under section 297I.20, subdivision 6, for the same qualified railroad reconstruction or 
57.10 	replacement expenditures.
57.11 		Subd. 3.Transferability; written agreement required; credit certificate. (a) An 
57.12 	eligible taxpayer may transfer the credit allowed under this section by written agreement 
57.13 	to an eligible transferee. The amount of the transferred credit is limited to the unused, 
57.14 	remaining portion of the credit.
57.15 	(b) The eligible taxpayer and the eligible transferee must jointly file a copy of the written 
57.16 	transfer agreement with the commissioner within 30 days of the transfer. The written 
57.17 	agreement must contain the name, address, and taxpayer identification number of the parties 
57.18 	to the transfer; the taxable year the eligible taxpayer incurred the qualified expenditures; 
57.19 	the amount of credit being transferred; and the taxable year or years for which the transferred 
57.20 	credit maybe claimed.
57.21 	(c) The commissioner must issue a credit certificate to the transferee within 30 days of 
57.22 	the joint filing of a copy of the written transfer agreement with the commissioner.
57.23 	(d) In the case of an audit or assessment, the transferee is liable for repayment of credits 
57.24 	claimed in excess of the allowed amount.
57.25 		Subd. 4.Partnerships; multiple owners. Credits granted or transferred to a partnership, 
57.26 	a limited liability company taxed as a partnership, an S corporation, or multiple owners of 
57.27 	property are passed through to the partners, members, shareholders, or owners, respectively, 
57.28 	pro rata to each partner, member, shareholder, or owner based on their share of the entity's 
57.29 	assets or as specially allocated in their organizational documents or any other executed 
57.30 	agreement, as of the last day of the taxable year.
57.31 		Subd. 5.Allocation for nonresidents and part-year residents. For a nonresident or 
57.32 	part-year resident, the credit determined under this section must be allocated based on the 
57.33 	percentage calculated under section 290.06, subdivision 2c, paragraph (e).

58.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
58.2 	31, 2022.

58.3 	Sec. 39. [290.0811] INCOME OF CERTAIN NONRESIDENTS.
58.4 		Subdivision 1.Exemption allowed. Notwithstanding section 290.081, compensation 
58.5 	received by a qualifying nonresident individual for employment duties in Minnesota is 
58.6 	excluded from gross income, subject to the limitations in this section.
58.7 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
58.8 	meanings given.
58.9 	(b) "Employee" and "employer" have the meanings given in section 290.92, subdivision 
58.10 	1.
58.11 	(c) "Employment duties" means professional or personal services performed for an 
58.12 	employer by an employee who is a qualifying nonresident individual.
58.13 	(d) "Entertainer" has the meaning given in section 290.9201.
58.14 	(e) "Qualifying nonresident individual" means an individual:
58.15 	(1) whose residence, place of abode, and place customarily returned to at least once a 
58.16 	month is in another state;
58.17 	(2) who is paid wages for employment duties, excluding duties performed as an 
58.18 	entertainer, in Minnesota on 30 or fewer days in the taxable year;
58.19 	(3) who performed employment duties in more than one state during the calendar year; 
58.20 	and
58.21 	(4) whose state of residence provides a substantially similar exclusion or does not impose 
58.22 	an individual income tax, or whose income is exempt from taxation in Minnesota under the 
58.23 	United States Constitution, or the Internal Revenue Code.
58.24 	(f) "Time and attendance system" means a system through which an employee is required, 
58.25 	on a contemporaneous basis, to record the employee's work location for every day worked 
58.26 	outside the state where the employee's employment duties are primarily performed and is 
58.27 	designed to allow the employer to allocate the employee's compensation for income tax 
58.28 	purposes among all states in which the employee performs employment duties for the 
58.29 	employer.
59.1 		Subd. 3.Withholding exemption; limitation. (a) Wages paid to a qualifying nonresident 
59.2 	individual are exempt from the withholding requirements under section 290.92, and the 
59.3 	filing requirements under section 289A.09, subject to the limitations of paragraph (b).
59.4 	(b) If during the taxable year, the number of days an employee spends performing 
59.5 	employment duties in Minnesota exceeds the 30-day threshold under subdivision 1, the 
59.6 	withholding requirements under section 290.92, and the filing requirements under section 
59.7 	289A.09, apply for every day in that calendar year, including the first 30 days, on which 
59.8 	the employee performs employment duties in Minnesota.
59.9 		Subd. 4.Employers; application of penalties. The commissioner shall not apply 
59.10 	penalties or interest otherwise applicable under chapter 289A for failing to deduct and 
59.11 	withhold income taxes as required under section 290.92, if when determining whether 
59.12 	withholding was required, the employer met either of the following conditions:
59.13 	(1) the employer at its sole discretion maintains a time and attendance system and relied 
59.14 	on data from that system; or
59.15 	(2) if the employer does not maintain a time and attendance system, and the employer 
59.16 	relies on either:
59.17 	(i) the employer's own records maintained in the regular course of business of the 
59.18 	employee's location; or
59.19 	(ii) the employee's reasonable determination of the time the employee expected to spend 
59.20 	performing employment duties in Minnesota, the employer has no actual knowledge of 
59.21 	fraud by employee in making the determination, and the employer and the employee did 
59.22 	not collude to evade taxation in making the determination.
59.23 		Subd. 5.Timing of employment duties performed. For the purposes of this section, 
59.24 	an employee shall be considered to be performing employment duties within Minnesota for 
59.25 	a day if the employee performs more of the employee's employment duties in Minnesota 
59.26 	than in any other state during that day. Any portion of the day during which the employee 
59.27 	is in transit must not be considered in determining the location of an employee's performance 
59.28 	of employment duties.
59.29 		Subd. 6.Severability. If any provision of this section or the application of a provision 
59.30 	of this section to any person or circumstance is held to be unconstitutional, then all other 
59.31 	provisions of this section shall remain valid and any rights, remedies, and privileges that 
59.32 	have been otherwise accrued by this section shall remain in effect, and may be proceeded 
59.33 	with and concluded under the provisions of this chapter or other applicable law.

60.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
60.2 	31, 2025.

60.3 	Sec. 40. Minnesota Statutes 2022, section 290.091, subdivision 2, as amended by Laws 
60.4 	2023, chapter 1, section 18, is amended to read:
60.5 		Subd. 2.Definitions. For purposes of the tax imposed by this section, the following 
60.6 	terms have the meanings given.
60.7 	(a) "Alternative minimum taxable income" means the sum of the following for the taxable 
60.8 	year:
60.9 	(1) the taxpayer's federal alternative minimum taxable income as defined in section 
60.10 	55(b)(1)(D) of the Internal Revenue Code;
60.11 	(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum 
60.12 	taxable income, but excluding:
60.13 	(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
60.14 	(ii) the medical expense deduction;
60.15 	(iii) the casualty, theft, and disaster loss deduction; and
60.16 	(iv) the impairment-related work expenses of a person with a disability;
60.17 	(3) for depletion allowances computed under section 613A(c) of the Internal Revenue 
60.18 	Code, with respect to each property (as defined in section 614 of the Internal Revenue Code), 
60.19 	to the extent not included in federal alternative minimum taxable income, the excess of the 
60.20 	deduction for depletion allowable under section 611 of the Internal Revenue Code for the 
60.21 	taxable year over the adjusted basis of the property at the end of the taxable year (determined 
60.22 	without regard to the depletion deduction for the taxable year);
60.23 	(4) to the extent not included in federal alternative minimum taxable income, the amount 
60.24 	of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue 
60.25 	Code determined without regard to subparagraph (E);
60.26 	(5) to the extent not included in federal alternative minimum taxable income, the amount 
60.27 	of interest income as provided by section 290.0131, subdivision 2;
60.28 	(6) the amount of addition required by section 290.0131, subdivisions 9, 10, and 16;
60.29 	(7) the deduction allowed under section 199A of the Internal Revenue Code, to the extent 
60.30 	not included in the addition required under clause (6); and
61.1 	(8) to the extent not included in federal alternative minimum taxable income, the amount 
61.2 	of foreign-derived intangible income deducted under section 250 of the Internal Revenue 
61.3 	Code;
61.4 	less the sum of the amounts determined under the following:
61.5 	(i) interest income as defined in section 290.0132, subdivision 2;
61.6 	(ii) an overpayment of state income tax as provided by section 290.0132, subdivision 
61.7 	3, to the extent included in federal alternative minimum taxable income;
61.8 	(iii) the amount of investment interest paid or accrued within the taxable year on 
61.9 	indebtedness to the extent that the amount does not exceed net investment income, as defined 
61.10 	in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted 
61.11 	in computing federal adjusted gross income;
61.12 	(iv) amounts subtracted from federal taxable or adjusted gross income as provided by 
61.13 	section 290.0132, subdivisions 7, 9 to 15, 17, 21, 24, 26 to 29, and 31, and 35;
61.14 	(v) the amount of the net operating loss allowed under section 290.095, subdivision 11, 
61.15 	paragraph (c); and
61.16 	(vi) the amount allowable as a Minnesota itemized deduction under section 290.0122, 
61.17 	subdivision 7.
61.18 	In the case of an estate or trust, alternative minimum taxable income must be computed 
61.19 	as provided in section 59(c) of the Internal Revenue Code, except alternative minimum 
61.20 	taxable income must be increased by the addition in section 290.0131, subdivision 16.
61.21 	(b) "Investment interest" means investment interest as defined in section 163(d)(3) of 
61.22 	the Internal Revenue Code.
61.23 	(c) "Net minimum tax" means the minimum tax imposed by this section.
61.24 	(d) "Regular tax" means the tax that would be imposed under this chapter (without regard 
61.25 	to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed 
61.26 	under this chapter.
61.27 	(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income 
61.28 	after subtracting the exemption amount determined under subdivision 3.

61.29 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
61.30 	31, 2022.

62.1 	Sec. 41. Minnesota Statutes 2022, section 290.17, subdivision 4, is amended to read:
62.2 		Subd. 4.Unitary business principle. (a) If a trade or business conducted wholly within 
62.3 	this state or partly within and partly without this state is part of a unitary business, the entire 
62.4 	worldwide income of the unitary business is subject to apportionment pursuant to section 
62.5 	290.191. Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary 
62.6 	business is considered to be derived from any particular source and none may be allocated 
62.7 	to a particular place except as provided by the applicable apportionment formula. The 
62.8 	provisions of this subdivision do not apply to business income subject to subdivision 5, 
62.9 	income of an insurance company, or income of an investment company determined under 
62.10 	section 290.36.
62.11 	(b) The term "unitary business" means business activities or operations which result in 
62.12 	a flow of value between them. The term may be applied within a single legal entity or 
62.13 	between multiple entities and without regard to whether each entity is a sole proprietorship, 
62.14 	a corporation, a partnership or a trust.
62.15 	(c) Unity is presumed whenever there is unity of ownership, operation, and use, evidenced 
62.16 	by centralized management or executive force, centralized purchasing, advertising, 
62.17 	accounting, or other controlled interaction, but the absence of these centralized activities 
62.18 	will not necessarily evidence a nonunitary business. Unity is also presumed when business 
62.19 	activities or operations are of mutual benefit, dependent upon or contributory to one another, 
62.20 	either individually or as a group.
62.21 	(d) Where a business operation conducted in Minnesota is owned by a business entity 
62.22 	that carries on business activity outside the state different in kind from that conducted within 
62.23 	this state, and the other business is conducted entirely outside the state, it is presumed that 
62.24 	the two business operations are unitary in nature, interrelated, connected, and interdependent 
62.25 	unless it can be shown to the contrary.
62.26 	(e) Unity of ownership does not exist when two or more corporations are involved unless 
62.27 	more than 50 percent of the voting stock of each corporation is directly or indirectly owned 
62.28 	by a common owner or by common owners, either corporate or noncorporate, or by one or 
62.29 	more of the member corporations of the group. For this purpose, the term "voting stock" 
62.30 	shall include membership interests of mutual insurance holding companies formed under 
62.31 	section 66A.40.
62.32 	(f) The net income and apportionment factors under section 290.191 or 290.20 of foreign 
62.33 	corporations and other foreign entities, but excluding a disqualified captive insurance 
62.34 	company, which are part of a unitary business shall not be included in the net income or 
63.1 	the apportionment factors of the unitary business; except that the income and apportionment 
63.2 	factors of a foreign entity, other than an entity treated as a C corporation for federal income 
63.3 	tax purposes, that are included in the federal taxable income, as defined in section 63 of the 
63.4 	Internal Revenue Code as amended through the date named in section 290.01, subdivision 
63.5 	19, of a domestic corporation, domestic entity, or individual must be included in determining 
63.6 	net income and the factors to be used in the apportionment of net income pursuant to section 
63.7 	290.191 or 290.20. A foreign corporation or other foreign entity which is not included on 
63.8 	a combined report and which is required to file a return under this chapter shall file on a 
63.9 	separate return basis.
63.10 	(g) (f) For purposes of determining the net income of a unitary business and the factors 
63.11 	to be used in the apportionment of net income pursuant to section 290.191 or 290.20, there 
63.12 	must be included only the income and apportionment factors of domestic and foreign
63.13 	corporations or other domestic and foreign entities that are determined to be part of the 
63.14 	unitary business pursuant to this subdivision, notwithstanding that foreign corporations or 
63.15 	other foreign entities might be included in the unitary business; except that the income and 
63.16 	apportionment factors of a foreign entity, other than an entity treated as a C corporation for 
63.17 	federal income tax purposes, that is included in the federal taxable income, as defined in 
63.18 	section 63 of the Internal Revenue Code as amended through the date named in section 
63.19 	290.01, subdivision 19, of a domestic corporation, domestic entity, or individual must be 
63.20 	included in determining net income and the factors to be used in the apportionment of net 
63.21 	income pursuant to section 290.191 or 290.20. For foreign corporations and other foreign 
63.22 	entities not subject to a federal income tax filing requirement under United States Code, 
63.23 	title 26, subtitle A, net income must be determined as required under section 290.01, 
63.24 	subdivision 19.
63.25 	(h) (g) Each corporation or other entity, except a sole proprietorship, that is part of a 
63.26 	unitary business must file combined reports as the commissioner determines. On the reports, 
63.27 	all intercompany transactions between entities included pursuant to paragraph (g) (f) must 
63.28 	be eliminated and the entire net income of the unitary business determined in accordance 
63.29 	with this subdivision is apportioned among the entities by using each entity's Minnesota 
63.30 	factors for apportionment purposes in the numerators of the apportionment formula and the 
63.31 	total factors for apportionment purposes of all entities included pursuant to paragraph (g)
63.32 	(f) in the denominators of the apportionment formula. Except as otherwise provided by 
63.33 	paragraph (f), all sales of the unitary business made within this state pursuant to section 
63.34 	290.191 or 290.20 must be included on the combined report of a corporation or other entity 
64.1 	that is a member of the unitary business and is subject to the jurisdiction of this state to 
64.2 	impose tax under this chapter.
64.3 	(i) (h) If a corporation has been divested from a unitary business and is included in a 
64.4 	combined report for a fractional part of the common accounting period of the combined 
64.5 	report:
64.6 	(1) its income includable in the combined report is its income incurred for that part of 
64.7 	the year determined by proration or separate accounting; and
64.8 	(2) its sales, property, and payroll included in the apportionment formula must be prorated 
64.9 	or accounted for separately.
64.10 	(j) (i) For purposes of this subdivision, "insurance company" means an insurance 
64.11 	company, as defined in section 290.01, subdivision 5b, that is not a disqualified captive 
64.12 	insurance company.

64.13 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
64.14 	31, 2023.

64.15 	Sec. 42. Minnesota Statutes 2022, section 290.17, is amended by adding a subdivision to 
64.16 	read:
64.17 		Subd. 4a.Foreign corporations and other foreign entities. (a) For purposes of imposing 
64.18 	a tax under this chapter, the federal taxable income of a foreign corporation or other foreign 
64.19 	entity must be computed as follows:
64.20 	(1) a profit and loss statement must be prepared in the currency in which the books of 
64.21 	account of the foreign corporation or other foreign entity are regularly maintained;
64.22 	(2) except as determined by the commissioner, adjustments must be made to the profit 
64.23 	and loss statement to conform the statement to the accounting principles generally accepted 
64.24 	in the United States for the preparation of those statements;
64.25 	(3) adjustments must be made to the profit and loss statement to conform it to the tax 
64.26 	accounting standards required by the commissioner;
64.27 	(4) unless otherwise authorized by the commissioner, the profit and loss statement of 
64.28 	each member of the combined group, and the apportionment factors related to the combined 
64.29 	group, whether domestic or foreign, must be converted into United States dollars; and
64.30 	(5) income apportioned to this state must be expressed in United States dollars.
65.1 	(b) Notwithstanding paragraph (a), if the commissioner determines that the information 
65.2 	required in the statements under that paragraph may only be obtained through a burdensome 
65.3 	effort and expense, the commissioner may allow reasonable approximations of the 
65.4 	information.

65.5 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
65.6 	31, 2023.

65.7 	Sec. 43. Minnesota Statutes 2022, section 297I.20, subdivision 4, is amended to read:
65.8 		Subd. 4.Film production credit. (a) A taxpayer may claim a credit against the premiums 
65.9 	tax imposed under this chapter equal to the amount indicated on the credit certificate 
65.10 	statement issued to the company under section 116U.27. If the amount of the credit exceeds 
65.11 	the taxpayer's liability for tax under this chapter, the excess is a credit carryover to each of 
65.12 	the five succeeding taxable years. The entire amount of the excess unused credit for the 
65.13 	taxable year must be carried first to the earliest of the taxable years to which the credit may 
65.14 	be carried and then to each successive year to which the credit may be carried. This credit 
65.15 	does not affect the calculation of fire state aid under section 477B.03 and police state aid 
65.16 	under section 477C.03.
65.17 	(b) This subdivision expires January 1, 2025 2033, for taxable years beginning after and 
65.18 	premiums received after December 31, 2024 2032.

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

65.20 	Sec. 44. Minnesota Statutes 2022, section 297I.20, is amended by adding a subdivision 
65.21 	to read:
65.22 		Subd. 6.Short line railroad infrastructure modernization credit. A taxpayer may 
65.23 	claim a credit against the premiums tax imposed under this chapter equal to the amount 
65.24 	indicated on the credit certificate statement issued to the company under section 290.0695, 
65.25 	provided that the taxpayer is not also claiming a credit under that section for the same 
65.26 	qualified railroad reconstruction or replacement expenditures. If the amount of the credit 
65.27 	exceeds the taxpayer's liability for tax under this chapter, the excess is a credit carryover to 
65.28 	each of the five succeeding taxable years. The entire amount of the excess unused credit 
65.29 	for the taxable year must be carried first to the earliest of the taxable years to which the 
65.30 	credit may be carried and then to each successive year to which the credit may be carried. 
65.31 	This credit does not affect the calculation of fire state aid under section 477B.03 and police 
65.32 	state aid under section 477C.03.

66.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
66.2 	31, 2022.

66.3 	Sec. 45. Minnesota Statutes 2022, section 297I.20, is amended by adding a subdivision 
66.4 	to read:
66.5 		Subd. 7.New markets tax credit. (a) A taxpayer may claim a credit against the premiums 
66.6 	tax imposed under this chapter equal to the amount calculated under section 116X.01, 
66.7 	subdivision 2. The credit is claimed beginning in the taxable year of the third credit allowance 
66.8 	date. If the amount of the credit exceeds the liability for tax under this chapter, the excess 
66.9 	is a credit carryover to each of the five succeeding taxable years. The entire amount of the 
66.10 	excess unused credit for the taxable year must be carried first to the earliest of the taxable 
66.11 	years to which the credit may be carried and then to each successive year to which the credit 
66.12 	may be carried. This credit does not affect the calculation of fire state aid under section 
66.13 	477B.03 and police state aid under section 477C.03.
66.14 	(b) This subdivision expires January 1, 2032, for taxable years beginning after and 
66.15 	premiums received after December 31, 2031.

66.16 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
66.17 	31, 2023.

66.18 	Sec. 46. 2023 ADVANCE PAYMENT AND ONE-TIME REFUNDABLE CREDIT.
 66.19 		Subdivision 1.Credit allowed; eligibility. (a) An individual is allowed a credit against 
66.20 	the tax imposed under Minnesota Statutes, chapter 290. The credit equals $279 for an 
66.21 	individual who files an income tax return as a single person or as a married person who 
66.22 	files a married filing separate income tax return and $558 for all other income tax filers.
66.23 	(b) For an individual, or a married couple filing a joint income tax return, with a 
66.24 	dependent, as defined in sections 151 and 152 of the Internal Revenue Code, the credit is 
66.25 	increased by $56 per dependent up to a maximum additional credit of $168.
66.26 	(c) The maximum combined credit under this subdivision is $447 for an individual who 
66.27 	files an income tax return as a single person or as a married individual who files a married 
66.28 	filing separate income tax return and $726 for all other income tax filers.
66.29 	(d) The credit is not available to an individual who:
66.30 	(1) is not a resident of Minnesota, as defined in Minnesota Statutes, section 290.01, 
66.31 	subdivision 7, during any part of 2023;
67.1 	(2) is a dependent, as defined in sections 151 and 152 of the Internal Revenue Code, for 
67.2 	2023; and
67.3 	(3) has adjusted gross income, as defined in Minnesota Statutes, section 290.01, 
67.4 	subdivision 21a, for 2023 greater than:
67.5 	(i) $75,000 for an individual who files an income tax return as a single person or as a 
67.6 	married person who files a married filing separate income tax return; and
67.7 	(ii) $150,000 for all other income tax filers.
67.8 	(e) For an individual who was a Minnesota resident for only part of 2023, or for a married 
67.9 	couple filing a joint return where one or both individuals were Minnesota residents for only 
67.10 	part of 2023, the credit equals the credit allowed under paragraph (a) times the percentage 
67.11 	calculated under Minnesota Statutes, section 290.06, subdivision 2c, paragraph (e).
67.12 	(f) If the amount of the credit under this subdivision exceeds the individual's or the 
67.13 	married couple's liability for tax under Minnesota Statutes, chapter 290, the commissioner 
67.14 	shall refund the excess to the taxpayer.
67.15 	(g) The credit applies to taxable years beginning after December 31, 2022, and before 
67.16 	January 1, 2024.
67.17 		Subd. 2.Advance payment of credit. (a) The commissioner of revenue may issue a 
67.18 	taxpayer an advance payment of the credit provided in subdivision 1. To be eligible for an 
67.19 	advance payment, the commissioner must reasonably believe the taxpayer will be eligible 
67.20 	for the credit, and the taxpayer must have filed, before January 1, 2023:
67.21 	(1) an individual income tax return for tax year 2021; or
67.22 	(2) a property tax refund return under Minnesota Statutes, chapter 290A, based on 
67.23 	property taxes payable in 2022 or rent constituting property taxes paid in 2021.
67.24 	(b) The commissioner may contract with a third party to implement all or part of the 
67.25 	payment process.
67.26 	(c) The commissioner must not issue an advance payment to any taxpayer who:
67.27 	(1) was not a resident of Minnesota on December 31, 2021;
67.28 	(2) was a dependent, as defined in sections 151 and 152 of the Internal Revenue Code, 
67.29 	for 2021;
67.30 	(3) had adjusted gross income, as defined in Minnesota Statutes, section 290.01, 
67.31 	subdivision 21a, for 2021 greater than (i) $50,000 for an individual who filed an income 
68.1 	tax return as a single person or as a married individual who filed a married filing separate 
68.2 	income tax return, or (ii) $100,000 for all other income tax filers; or
68.3 	(4) died before January 1, 2023.
68.4 	(d) The advance payment under this section shall be paid by the commissioner of revenue 
68.5 	based on information available in the commissioner's records, and individuals are not 
68.6 	required to file a claim with the commissioner. The decision of the commissioner to not 
68.7 	make an advance payment to a taxpayer is not appealable.
68.8 	(e) The commissioner of revenue must make a joint advance payment to individuals 
68.9 	who filed a joint income tax return for 2021. If individuals who receive a joint advance 
68.10 	payment do not file a joint tax return with each other for 2023, each spouse is deemed to 
68.11 	have received an advance payment equal to one-half of the joint payment.
68.12 		Subd. 3.Payments to taxpayers who do not receive an advance payment. (a) A 
68.13 	taxpayer may claim any amount of unpaid credit on an individual income tax return for 
68.14 	2023 if the taxpayer was eligible for:
68.15 	(1) the credit under subdivision 1 and did not receive an advance payment under 
68.16 	subdivision 2; or
68.17 	(2) the additional credit under subdivision 1, paragraph (a), clause (2), and did not receive 
68.18 	an advance payment for the full amount of the credit.
68.19 	(b) The credit allowed to a taxpayer under this subdivision is reduced by any advance 
68.20 	payment received under subdivision 2. The credit allowed for married taxpayers who file 
68.21 	a joint return in 2023 is reduced by any advance payment received under subdivision 2 by 
68.22 	either spouse.
68.23 	(c) No credit under paragraph (a), clause (2), is allowed unless the TIN of the dependent, 
68.24 	as defined in section 7701(a)(41) of the Internal Revenue Code, is included on the tax return 
68.25 	that lists the individual as a dependent.
68.26 		Subd. 4.Repayment of advance payment. (a) An individual or married couple who 
68.27 	receives an advance payment under subdivision 2 but who does not meet eligibility for the 
68.28 	credit under subdivision 1, paragraph (a), or does not meet eligibility for the amount of the 
68.29 	advance payment of the credit allowed under subdivision (1), paragraph (b), must repay the 
68.30 	amount of the overpayment to the commissioner of revenue. Repayment is due on April 
68.31 	15, 2024.
68.32 	(b) All provisions not inconsistent with this section under Minnesota Statutes, chapters 
68.33 	270C and 289A, relating to collection, audit, assessment, refunds, penalty, interest, 
69.1 	enforcement, collection remedies, appeal, and administration of individual income tax apply 
69.2 	to this section.
69.3 	(c) The commissioner may issue an order of assessment under Minnesota Statutes, 
69.4 	section 270C.33, to recover an advance payment made under subdivision 2 that is issued 
69.5 	to a person not eligible for the credit. The assessment must be made within the period for 
69.6 	assessing tax for the 2023 individual income tax under Minnesota Statutes, section 289A.38.
69.7 		Subd. 5.Internal Revenue Code. References to the Internal Revenue Code in this 
69.8 	section are to the Internal Revenue Code of 1986, as amended, that is in effect under 
69.9 	Minnesota Statutes, section 290.01, for the taxable year to which the reference relates.
69.10 		Subd. 6.Data classification. Data classified as nonpublic data or private data on 
69.11 	individuals, including return information, as defined in Minnesota Statutes, section 270B.01, 
69.12 	subdivision 3, may be shared or disclosed between the commissioner of revenue and any 
69.13 	third-party vendor contracted with under this section, to the extent necessary to administer 
69.14 	advance payments under this section.
69.15 		Subd. 7.Advance payment not subject to set off. The commissioner of revenue must 
69.16 	not apply, and must not certify to another agency to apply, an advance payment to any 
69.17 	unpaid tax or nontax debt.
69.18 		Subd. 8.Not income. (a) An advance payment or refund of a credit under this section 
69.19 	is not considered income in determining Minnesota income tax, Minnesota income tax 
69.20 	credits, the Minnesota property tax refund, or the Minnesota senior citizen property tax 
69.21 	deferral.
69.22 	(b) Notwithstanding any law to the contrary, the advance payment or credit under this 
69.23 	section must not be considered income, assets, or personal property for purposes of 
69.24 	determining eligibility or recertifying eligibility for:
69.25 	(1) child care assistance programs under Minnesota Statutes, chapter 119B;
69.26 	(2) general assistance, Minnesota supplemental aid, and food support under Minnesota 
69.27 	Statutes, chapter 256D;
69.28 	(3) housing support under Minnesota Statutes, chapter 256I;
69.29 	(4) the Minnesota family investment program and diversionary work program under 
69.30 	Minnesota Statutes, chapter 256J; and
69.31 	(5) economic assistance programs under Minnesota Statutes, chapter 256P.
70.1 	(c) The commissioner of human services must not consider an advance payment or credit 
70.2 	under this section as income or assets under Minnesota Statutes, section 256B.056, 
70.3 	subdivisions 1a, paragraph (a); 3; or 3c, or for persons with eligibility determined under 
70.4 	Minnesota Statutes, section 256B.057, subdivisions 3, 3a, or 3b.
70.5 		Subd. 9.Procurement. The commissioner of revenue is exempt from the requirements 
70.6 	of Minnesota Statutes, section 16A.15, subdivision 3; 16B.97; and 16B.98, subdivisions 5, 
70.7 	7, and 8; and chapter 16C, and any other state procurement laws and procedures in 
70.8 	administering this section.
70.9 		Subd. 10.Appropriation. The amount necessary to make the advance payments and 
70.10 	refunds payable under this section is appropriated to the commissioner of revenue from the 
70.11 	general fund.

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

70.13 	Sec. 47. HISTORIC STRUCTURE REHABILITATION CREDIT; SPECIAL 
70.14 	PROVISION.
 70.15 	For the purposes of the credit under Minnesota Statutes, section 290.0681, projects that 
70.16 	have started rehabilitation work after June 30, 2022, and before July 1, 2023, that otherwise 
70.17 	meet all other requirements of Minnesota Statutes, section 290.0681, subdivision 3, may 
70.18 	be eligible for the credit if the application is received within 60 days of July 1, 2023.

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

70.20 	Sec. 48. REVIVAL AND REENACTMENT OF EXPIRED PROVISIONS.
 70.21 	(a) The expired provisions of Minnesota Statutes, section 116J.8737, subdivisions 1 to 
70.22 	9, 11, and 12, as amended by Laws 2021, First Special Session chapter 14, article 1, sections 
70.23 	1 and 2, and sections 7 and 8 of this act, are revived and reenacted.
70.24 	(b) The expired provisions of Minnesota Statutes, section 290.0692, are revived and 
70.25 	reenacted.
70.26 	(c) The expired provisions of Minnesota Statutes, section 290.0681, subdivisions 1 to 
70.27 	9, as amended by sections 29 and 30, are revived and reenacted.

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

71.1 	Sec. 49. SUBTRACTION; CERTAIN UNEMPLOYMENT COMPENSATION.
 71.2 	(a) For the purposes of this section, "subtraction" has the meaning given in Minnesota 
71.3 	Statutes, section 290.0132, subdivision 1, and the rules in that subdivision apply for this 
71.4 	section.
71.5 	(b) Unemployment compensation received by individuals in taxable years beginning 
71.6 	after December 31, 2020, and before January 1, 2022, as a result of the decision issued by 
71.7 	the Minnesota Court of Appeals, 956 N.W. 2d 1, filed February 22, 2021, is a subtraction.

71.8 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
71.9 	after December 31, 2020, and before January 1, 2022.

71.10 	Sec. 50. REPEALER; REPEAL OF EXPIRATION AND REVIVAL OF EXPIRED 
71.11 	PROVISIONS.
 71.12 	(a) Minnesota Statutes 2022, section 290.0681, subdivision 10, is repealed.
71.13 	(b) Minnesota Statutes 2022, section 41B.0391, subdivision 7, is repealed.

71.14 	EFFECTIVE DATE. Paragraph (a) is effective the day following final enactment and 
71.15 	applies to applications for allocation certificates submitted after June 30, 2023. Paragraph 
71.16 	(b) is effective the day following final enactment.

71.17 	ARTICLE 2
71.18 	FEDERAL CONFORMITY

71.19 	Section 1. Minnesota Statutes 2022, section 289A.02, subdivision 7, as amended by Laws 
71.20 	2023, chapter 1, section 1, is amended to read:
71.21 		Subd. 7.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
71.22 	Revenue Code" means the Internal Revenue Code of 1986, as amended through December 
71.23 	15, 2022 March 1, 2023.

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

71.27 	Sec. 2. Minnesota Statutes 2022, section 290.01, subdivision 19, as amended by Laws 
71.28 	2023, chapter 1, section 4, is amended to read:
71.29 		Subd. 19.Net income. (a) For a trust or estate taxable under section 290.03, and a 
71.30 	corporation taxable under section 290.02, the term "net income" means the federal taxable 
72.1 	income, as defined in section 63 of the Internal Revenue Code of 1986, as amended through 
72.2 	the date named in this subdivision, incorporating the federal effective dates of changes to 
72.3 	the Internal Revenue Code and any elections made by the taxpayer in accordance with the 
72.4 	Internal Revenue Code in determining federal taxable income for federal income tax 
72.5 	purposes, and with the modifications provided in sections 290.0131 to 290.0136.
72.6 	(b) For an individual, the term "net income" means federal adjusted gross income with 
72.7 	the modifications provided in sections 290.0131, 290.0132, and 290.0135 to 290.0137.
72.8 	(c) In the case of a regulated investment company or a fund thereof, as defined in section 
72.9 	851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment 
72.10 	company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, 
72.11 	except that:
72.12 	(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal 
72.13 	Revenue Code does not apply;
72.14 	(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue 
72.15 	Code must be applied by allowing a deduction for capital gain dividends and exempt-interest 
72.16 	dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code; 
72.17 	and
72.18 	(3) the deduction for dividends paid must also be applied in the amount of any 
72.19 	undistributed capital gains which the regulated investment company elects to have treated 
72.20 	as provided in section 852(b)(3)(D) of the Internal Revenue Code.
72.21 	(d) The net income of a real estate investment trust as defined and limited by section 
72.22 	856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust 
72.23 	taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
72.24 	(e) The net income of a designated settlement fund as defined in section 468B(d) of the 
72.25 	Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal 
72.26 	Revenue Code.
72.27 	(f) The Internal Revenue Code of 1986, as amended through December 15, 2022 March 
72.28 	1, 2023, applies for taxable years beginning after December 31, 1996.
72.29 	(g) Except as otherwise provided, references to the Internal Revenue Code in this 
72.30 	subdivision and sections 290.0131 to 290.0136 mean the code in effect for purposes of 
72.31 	determining net income for the applicable year.

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

73.4 	Sec. 3. Minnesota Statutes 2022, section 290.01, subdivision 31, as amended by Laws 
73.5 	2023, chapter 1, section 5, is amended to read:
73.6 		Subd. 31.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
73.7 	Revenue Code" means the Internal Revenue Code of 1986, as amended through December 
73.8 	15, 2022 March 1, 2023. Internal Revenue Code also includes any uncodified provision in 
73.9 	federal law that relates to provisions of the Internal Revenue Code that are incorporated 
73.10 	into Minnesota law.

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

73.14 	Sec. 4. Minnesota Statutes 2022, section 290.06, subdivision 2c, as amended by Laws 
73.15 	2023, chapter 1, section 15, is amended to read:
73.16 		Subd. 2c.Schedules of rates for individuals, estates, and trusts. (a) The income taxes 
73.17 	imposed by this chapter upon married individuals filing joint returns and surviving spouses 
73.18 	as defined in section 2(a) of the Internal Revenue Code must be computed by applying to 
73.19 	their taxable net income the following schedule of rates:
73.20 	(1) On the first $38,770, 5.35 percent;
73.21 	(2) On all over $38,770, but not over $154,020, 6.8 percent;
73.22 	(3) On all over $154,020, but not over $269,010, 7.85 percent;
73.23 	(4) On all over $269,010, 9.85 percent.
73.24 	Married individuals filing separate returns, estates, and trusts must compute their income 
73.25 	tax by applying the above rates to their taxable income, except that the income brackets 
73.26 	will be one-half of the above amounts after the adjustment required in subdivision 2d.
73.27 	(b) The income taxes imposed by this chapter upon unmarried individuals must be 
73.28 	computed by applying to taxable net income the following schedule of rates:
73.29 	(1) On the first $26,520, 5.35 percent;
73.30 	(2) On all over $26,520, but not over $87,110, 6.8 percent;
74.1 	(3) On all over $87,110, but not over $161,720, 7.85 percent;
74.2 	(4) On all over $161,720, 9.85 percent.
74.3 	(c) The income taxes imposed by this chapter upon unmarried individuals qualifying as 
74.4 	a head of household as defined in section 2(b) of the Internal Revenue Code must be 
74.5 	computed by applying to taxable net income the following schedule of rates:
74.6 	(1) On the first $32,650, 5.35 percent;
74.7 	(2) On all over $32,650, but not over $131,190, 6.8 percent;
74.8 	(3) On all over $131,190, but not over $214,980, 7.85 percent;
74.9 	(4) On all over $214,980, 9.85 percent.
74.10 	(d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax 
74.11 	of any individual taxpayer whose taxable net income for the taxable year is less than an 
74.12 	amount determined by the commissioner must be computed in accordance with tables 
74.13 	prepared and issued by the commissioner of revenue based on income brackets of not more 
74.14 	than $100. The amount of tax for each bracket shall be computed at the rates set forth in 
74.15 	this subdivision, provided that the commissioner may disregard a fractional part of a dollar 
74.16 	unless it amounts to 50 cents or more, in which case it may be increased to $1.
74.17 	(e) An individual who is not a Minnesota resident for the entire year must compute the 
74.18 	individual's Minnesota income tax as provided in this subdivision. After the application of 
74.19 	the nonrefundable credits provided in this chapter, the tax liability must then be multiplied 
74.20 	by a fraction in which:
74.21 	(1) the numerator is the individual's Minnesota source federal adjusted gross income as 
74.22 	defined in section 62 of the Internal Revenue Code and increased by:
74.23 	(i) the additions required under sections 290.0131, subdivisions 2, 6, 8 to 10, 16, and
74.24 	17, 19, and 20, and 290.0137, paragraph (a); and reduced by
74.25 	(ii) the Minnesota assignable portion of the subtraction for United States government 
74.26 	interest under section 290.0132, subdivision 2, the subtractions under sections 290.0132, 
74.27 	subdivisions 9, 10, 14, 15, 17, 18, 27, and 31, and 32, and 290.0137, paragraph (c), after 
74.28 	applying the allocation and assignability provisions of section 290.081, clause (a), or 290.17; 
74.29 	and
74.30 	(2) the denominator is the individual's federal adjusted gross income as defined in section 
74.31 	62 of the Internal Revenue Code, increased by:
75.1 	(i) the additions required under sections 290.0131, subdivisions 2, 6, 8 to 10, 16, and
75.2 	17, 19, and 20, and 290.0137, paragraph (a); and reduced by
75.3 	(ii) the subtractions under sections 290.0132, subdivisions 2, 9, 10, 14, 15, 17, 18, 27, 
75.4 	and 31, and 32, and 290.0137, paragraph (c).
75.5 	(f) If an individual who is not a Minnesota resident for the entire year is a qualifying 
75.6 	owner of a qualifying entity that elects to pay tax as provided in section 289A.08, subdivision 
75.7 	7a, paragraph (b), the individual must compute the individual's Minnesota income tax as 
75.8 	provided in paragraph (e), and also must include, to the extent attributed to the electing 
75.9 	qualifying entity:
75.10 	(1) in paragraph (e), clause (1), item (i), and paragraph (e), clause (2), item (i), the 
75.11 	addition under section 290.0131, subdivision 5; and
75.12 	(2) in paragraph (e), clause (1), item (ii), and paragraph (e), clause (2), item (ii), the 
75.13 	subtraction under section 290.0132, subdivision 3.

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

75.16 	Sec. 5. Minnesota Statutes 2022, section 290A.03, subdivision 15, as amended by Laws 
75.17 	2023, chapter 1, section 20, is amended to read:
75.18 		Subd. 15.Internal Revenue Code.  "Internal Revenue Code" means the Internal Revenue 
75.19 	Code of 1986, as amended through December 15, 2022 March 1, 2023.

75.20 	EFFECTIVE DATE. This section is effective beginning with refunds based on rent 
75.21 	paid in 2023 and property taxes payable in 2024.

75.22 	Sec. 6. Minnesota Statutes 2022, section 291.005, subdivision 1, as amended by Laws 
75.23 	2023, chapter 1, section 21, is amended to read:
75.24 		Subdivision 1.Scope. Unless the context otherwise clearly requires, the following terms 
75.25 	used in this chapter shall have the following meanings:
75.26 	(1) "Commissioner" means the commissioner of revenue or any person to whom the 
75.27 	commissioner has delegated functions under this chapter.
75.28 	(2) "Federal gross estate" means the gross estate of a decedent as required to be valued 
75.29 	and otherwise determined for federal estate tax purposes under the Internal Revenue Code, 
75.30 	increased by the value of any property in which the decedent had a qualifying income interest 
76.1 	for life and for which an election was made under section 291.03, subdivision 1d, for 
76.2 	Minnesota estate tax purposes, but was not made for federal estate tax purposes.
76.3 	(3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986, 
76.4 	as amended through December 15, 2022 March 1, 2023.
76.5 	(4) "Minnesota gross estate" means the federal gross estate of a decedent after (a) 
76.6 	excluding therefrom any property included in the estate which has its situs outside Minnesota, 
76.7 	and (b) including any property omitted from the federal gross estate which is includable in 
76.8 	the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.
76.9 	(5) "Nonresident decedent" means an individual whose domicile at the time of death 
76.10 	was not in Minnesota.
76.11 	(6) "Personal representative" means the executor, administrator or other person appointed 
76.12 	by the court to administer and dispose of the property of the decedent. If there is no executor, 
76.13 	administrator or other person appointed, qualified, and acting within this state, then any 
76.14 	person in actual or constructive possession of any property having a situs in this state which 
76.15 	is included in the federal gross estate of the decedent shall be deemed to be a personal 
76.16 	representative to the extent of the property and the Minnesota estate tax due with respect 
76.17 	to the property.
76.18 	(7) "Resident decedent" means an individual whose domicile at the time of death was 
76.19 	in Minnesota. The provisions of section 290.01, subdivision 7, paragraphs (c) and (d), apply 
76.20 	to determinations of domicile under this chapter.
76.21 	(8) "Situs of property" means, with respect to:
76.22 	(i) real property, the state or country in which it is located;
76.23 	(ii) tangible personal property, the state or country in which it was normally kept or 
76.24 	located at the time of the decedent's death or for a gift of tangible personal property within 
76.25 	three years of death, the state or country in which it was normally kept or located when the 
76.26 	gift was executed;
76.27 	(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue 
76.28 	Code, owned by a nonresident decedent and that is normally kept or located in this state 
76.29 	because it is on loan to an organization, qualifying as exempt from taxation under section 
76.30 	501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is 
76.31 	deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
77.1 	(iv) intangible personal property, the state or country in which the decedent was domiciled 
77.2 	at death or for a gift of intangible personal property within three years of death, the state or 
77.3 	country in which the decedent was domiciled when the gift was executed.
77.4 	For a nonresident decedent with an ownership interest in a pass-through entity with 
77.5 	assets that include real or tangible personal property, situs of the real or tangible personal 
77.6 	property, including qualified works of art, is determined as if the pass-through entity does 
77.7 	not exist and the real or tangible personal property is personally owned by the decedent. If 
77.8 	the pass-through entity is owned by a person or persons in addition to the decedent, ownership 
77.9 	of the property is attributed to the decedent in proportion to the decedent's capital ownership 
77.10 	share of the pass-through entity.
77.11 	(9) "Pass-through entity" includes the following:
77.12 	(i) an entity electing S corporation status under section 1362 of the Internal Revenue 
77.13 	Code;
77.14 	(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
77.15 	(iii) a single-member limited liability company or similar entity, regardless of whether 
77.16 	it is taxed as an association or is disregarded for federal income tax purposes under Code 
77.17 	of Federal Regulations, title 26, section 301.7701-3; or
77.18 	(iv) a trust to the extent the property is includable in the decedent's federal gross estate; 
77.19 	but excludes
77.20 	(v) an entity whose ownership interest securities are traded on an exchange regulated 
77.21 	by the Securities and Exchange Commission as a national securities exchange under section 
77.22 	6 of the Securities Exchange Act, United States Code, title 15, section 78f.

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

77.26 	Sec. 7. Laws 2023, chapter 1, section 15, the effective date, is amended to read:

77.27 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
77.28 	after December 31, 2022 2019.

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

78.1 	Sec. 8. REPEALER.
 78.2 	Minnesota Statutes 2022, section 290.0132, subdivision 33, as added by Laws 2023, 
78.3 	chapter 1, section 12, is repealed.

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

78.5 	ARTICLE 3
78.6 	PROPERTY TAX

78.7 	Section 1. Minnesota Statutes 2022, section 103D.905, subdivision 3, is amended to read:
78.8 		Subd. 3.General fund. A general fund, consisting of an ad valorem tax levy, may not 
78.9 	exceed 0.0480.096 percent of estimated market value, or $250,000 $500,000, whichever 
78.10 	is less. The money in the fund shall be used for general administrative expenses and for the 
78.11 	construction or implementation and maintenance of projects of common benefit to the 
78.12 	watershed district. The managers may make an annual levy for the general fund as provided 
78.13 	in section 103D.911. In addition to the annual general levy, the managers may annually 
78.14 	levy a tax not to exceed 0.00798 percent of estimated market value for a period not to exceed 
78.15 	15 consecutive years to pay the cost attributable to the basic water management features of 
78.16 	projects initiated by petition of a political subdivision within the watershed district or by 
78.17 	petition of at least 50 resident owners whose property is within the watershed district.

78.18 	EFFECTIVE DATE. This section is effective beginning with assessment year 2024 
78.19 	and thereafter.

78.20 	Sec. 2. Minnesota Statutes 2022, section 272.02, subdivision 24, is amended to read:
78.21 		Subd. 24.Solar energy generating systems. Personal property consisting of solar energy 
78.22 	generating systems, as defined in section 272.0295, is exempt. If the real property upon 
78.23 	which a solar energy generating system is located is used primarily for solar energy 
78.24 	production subject to the production tax under section 272.0295, the real property shall be 
78.25 	classified as class 3a. If the real property upon which a solar energy generating system is 
78.26 	located is not used primarily for solar energy production subject to the production tax under 
78.27 	section 272.0295, the real property shall be classified without regard to the system. If real 
78.28 	property contains more than one solar energy generating system that cannot be combined 
78.29 	with the nameplate capacity of another solar energy generating system for the purposes of 
78.30 	the production tax under section 272.0295, but is in aggregate over one megawatt, then the 
78.31 	real property upon which the systems are located shall be classified as class 3a.

78.32 	EFFECTIVE DATE. This section is effective beginning with assessment year 2024.

79.1 	Sec. 3. Minnesota Statutes 2022, section 272.02, subdivision 98, is amended to read:
79.2 		Subd. 98.Certain property owned by an Indian tribe. (a) Property is exempt that:
79.3 	(1) was classified as 3a under section 273.13, subdivision 24, for taxes payable in 2013;
79.4 	(2) is located in a city of the first class with a population greater than 300,000 as of the 
79.5 	2010 federal census;
79.6 	(3) was on January 2, 2012, and is for the current assessment owned by a federally 
79.7 	recognized Indian tribe, or its instrumentality, that is located within the state of Minnesota; 
79.8 	and
79.9 	(4) is used exclusively for tribal purposes or institutions of purely public charity as 
79.10 	defined in subdivision 7.
79.11 	(b) For purposes of this subdivision, a "tribal purpose" means a public purpose as defined 
79.12 	in subdivision 8 and includes noncommercial tribal government activities. Property that 
79.13 	qualifies for the exemption under this subdivision is limited to no more than two contiguous 
79.14 	parcels and structures that do not exceed in the aggregate 20,000 square feet. Property 
79.15 	acquired for single-family housing, market-rate apartments, agriculture, or forestry does 
79.16 	not qualify for this exemption. The exemption created by This subdivision expires with 
79.17 	taxes payable in 2024 2034.
79.18 	(c) Property exempt under this section is exempt from the requirements of section 
79.19 	272.025. Upon the written request of an assessor, all books and records relating to the 
79.20 	ownership or use of the property which are reasonably necessary to verify that the property 
79.21 	qualifies for exemption shall be made available to the assessor.

79.22 	EFFECTIVE DATE. This section is effective for property taxes payable in 2023 and 
79.23 	thereafter.

79.24 	Sec. 4. Minnesota Statutes 2022, section 272.02, is amended by adding a subdivision to 
79.25 	read:
79.26 		Subd. 105.Elderly living facility. An elderly living facility is exempt from taxation if 
79.27 	it meets all of the following requirements:
79.28 	(1) the facility is located in a city of the first class with a population of fewer than 
79.29 	110,000;
79.30 	(2) the facility is owned and operated by a nonprofit corporation organized under chapter 
79.31 	317A;
80.1 	(3) construction of the facility was completed between January 1, 1963, and January 1, 
80.2 	1964;
80.3 	(4) the facility is an assisted living facility licensed by the state of Minnesota;
80.4 	(5) residents of the facility must be (i) at least 55 years of age, or (ii) disabled; and
80.5 	(6) at least 30 percent of the units in the facility are occupied by persons whose annual 
80.6 	income does not exceed 50 percent of the median family income for the area.
80.7 	For assessment year 2022 only, an exemption application under this section must be filed 
80.8 	with the county assessor by June 15, 2023.

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

80.10 	Sec. 5. Minnesota Statutes 2022, section 272.02, is amended by adding a subdivision to 
80.11 	read:
80.12 		Subd. 106.Energy storage systems. (a) Personal property consisting of an energy 
80.13 	storage system is exempt, provided that:
80.14 	(1) the property is not located in an energy community, as defined in the Inflation 
80.15 	Redution Act of 2022, Public Law 117-169, section 13101; and
80.16 	(2) the storage capacity of the system does not exceed 300 megawatt-hours.
80.17 	(b) For the purposes of this subdivision, "energy storage system" has the meaning given 
80.18 	in section 216B.2422, subdivision 1, paragraph (f).
80.19 	(c) A taxpayer requesting an exemption under this subdivision must file an application 
80.20 	with the commissioner of revenue. The commissioner shall prescribe the content, format, 
80.21 	and manner of the application pursuant to section 270C.30, except that a "law administered 
80.22 	by the commissioner" includes the property tax laws. In determining eligibility for the 
80.23 	exemption under this section, the commissioner of revenue may request information and 
80.24 	advice from the commissioner of commerce. On determining that property qualifies for 
80.25 	exemption, the commissioner of revenue shall issue an order exempting the property from 
80.26 	taxation. The commissioner of revenue shall develop an electronic means to notify interested 
80.27 	parties when the commissioner has issued an order exempting property from taxation under 
80.28 	this section. The energy storage system shall continue to be exempt from taxation as long 
80.29 	as the order issued by the commissioner of revenue remains in effect.

80.30 	EFFECTIVE DATE. This section is effective beginning with assessment year 2024.

81.1 	Sec. 6. Minnesota Statutes 2022, section 272.025, subdivision 1, is amended to read:
81.2 		Subdivision 1.Statement of exemption. (a) Except in the case of property owned by 
81.3 	the state of Minnesota or any political subdivision thereof, a taxpayer claiming an exemption 
81.4 	from taxation on property described in section 272.02 must file a statement of exemption 
81.5 	with the assessor of the assessment district in which the property is located. By January 2, 
81.6 	2018, and each third year thereafter, the commissioner of revenue shall publish on its website 
81.7 	a list of the exemptions for which a taxpayer claiming an exemption must file a statement 
81.8 	of exemption. The commissioner's requirement that a taxpayer file a statement of exemption 
81.9 	pursuant to this subdivision shall not be considered a rule and is not subject to the 
81.10 	Administrative Procedure Act, chapter 14.
81.11 	(b) A taxpayer claiming an exemption from taxation on property described in section 
81.12 	272.02, subdivision subdivisions 10 and 106, must file a statement of exemption with the 
81.13 	commissioner of revenue, on or before February 15 of each year for which the taxpayer 
81.14 	claims an exemption.
81.15 	(c) In case of sickness, absence or other disability or for good cause, the assessor or the 
81.16 	commissioner may extend the time for filing the statement of exemption for a period not to 
81.17 	exceed 60 days.
81.18 	(d) The commissioner of revenue shall prescribe the content, format, and manner of the 
81.19 	statement of exemption pursuant to section 270C.30, except that a "law administered by 
81.20 	the commissioner" includes the property tax laws.
81.21 	(e) If a statement is made by electronic means, the taxpayer's signature is defined pursuant 
81.22 	to section 270C.304, except that a "law administered by the commissioner" includes the 
81.23 	property tax laws.

81.24 	EFFECTIVE DATE. This section is effective beginning with assessment year 2024.

81.25 	Sec. 7. Minnesota Statutes 2022, section 273.11, subdivision 12, is amended to read:
81.26 		Subd. 12.Community land trusts. (a) A community land trust, as defined under chapter 
81.27 	462A, is (i) a community-based nonprofit corporation organized under chapter 317A, which 
81.28 	qualifies for tax exempt status under 501(c)(3), or (ii) a "city" as defined in section 462C.02, 
81.29 	subdivision 6, which has received funding from the Minnesota housing finance agency for 
81.30 	purposes of the community land trust program. The Minnesota Housing Finance Agency 
81.31 	shall set the criteria for community land trusts.
81.32 	(b) Before the community land trust can rent or sell a unit to an applicant, the community 
81.33 	land trust shall verify to the satisfaction of the administering agency or the city that the 
82.1 	family income of each person or family applying for a unit in the community land trust 
82.2 	building is within the income criteria provided in section 462A.30, subdivision 9. The 
82.3 	administering agency or the city shall verify to the satisfaction of the county assessor that 
82.4 	the occupant meets the income criteria under section 462A.30, subdivision 9. The property 
82.5 	tax benefits under paragraph (c) shall be granted only to property owned or rented by persons 
82.6 	or families within the qualifying income limits. The family income criteria and verification 
82.7 	is only necessary at the time of initial occupancy in the property.
82.8 	(c) A unit which is owned by the occupant and used as a homestead by the occupant 
82.9 	qualifies for homestead treatment as class 1a under section 273.13, subdivision 22, unless 
82.10 	the unit meets the requirements of section 273.13, subdivision 25, paragraph (e), clause (2), 
82.11 	in which case the unit shall be classified as 4d(2). A unit which is rented by the occupant 
82.12 	and used as a homestead by the occupant shall be class 4a or 4b property, under section 
82.13 	273.13, subdivision 25, whichever is applicable. Any remaining portion of the property not 
82.14 	used for residential purposes shall be classified by the assessor in the appropriate class based 
82.15 	upon the use of that portion of the property owned by the community land trust. The land 
82.16 	upon which the building is located shall be assessed at the same classification rate as the 
82.17 	units within the building, provided that if the building contains some units assessed as class 
82.18 	1a or class 4d(1) and some units assessed as class 4a or 4b, the market value of the land 
82.19 	will be assessed in the same proportions as the value of the building.

82.20 	EFFECTIVE DATE. This section is effective beginning with assessment year 2024.

82.21 	Sec. 8. Minnesota Statutes 2022, section 273.11, subdivision 23, is amended to read:
82.22 		Subd. 23.First tier valuation limit; agricultural homestead property. (a) The 
82.23 	commissioner of revenue shall annually certify the first tier limit for agricultural homestead 
82.24 	property. For assessment year 2010 2024, the limit is $1,140,000 $3,500,000. Beginning 
82.25 	with assessment year 2011 2025, the limit is the product of (i) the first tier limit for the 
82.26 	preceding assessment year, and (ii) the ratio of the statewide average taxable market value 
82.27 	of agricultural property per acre of deeded farm land in the preceding assessment year to 
82.28 	the statewide average taxable market value of agricultural property per acre of deeded farm 
82.29 	land for the second preceding assessment year. The limit shall be rounded to the nearest 
82.30 	$10,000.
82.31 	(b) For the purposes of this subdivision, "agricultural property" means all class 2a 
82.32 	property under section 273.13, subdivision 23, except for property consisting of the house, 
82.33 	garage, and immediately surrounding one acre of land of an agricultural homestead.
82.34 	(c) The commissioner shall certify the limit by January 2 of each assessment year.

83.1 	EFFECTIVE DATE. This section is effective beginning with assessment year 2024.

83.2 	Sec. 9. Minnesota Statutes 2022, section 273.111, is amended by adding a subdivision to 
83.3 	read:
83.4 		Subd. 3b.Property no longer eligible for deferment. (a) Real estate that received the 
83.5 	tax deferment under this section for assessment year 2012 and would have continued to 
83.6 	qualify for tax deferment for assessment years from 2013 to 2023 but for an eminent domain 
83.7 	action that reduced the real estate to less than ten acres, shall reapply as provided in paragraph 
83.8 	(b) and, if determined eligible, shall qualify for the tax deferment under this section for 
83.9 	assessment year 2024 and thereafter until:
83.10 	(1) the property no longer qualifies for classification as class 2a under section 273.13;
83.11 	(2) the property is voluntarily withdrawn from the program; or
83.12 	(3) the property is sold, transferred, or subdivided.
83.13 	(b) Application for deferment under this subdivision shall be filed by May 1 of the year 
83.14 	prior to the year in which the taxes are payable. The application must be filed with the 
83.15 	assessor of the taxing district in which the real property is located on the form prescribed 
83.16 	by the commissioner of revenue. The assessor may request additional information necessary 
83.17 	to determine eligibility under this subdivision.
83.18 	(c) Property assessed under this subdivision is subject to additional taxes, as provided 
83.19 	in subdivision 9, when the property:
83.20 	(1) no longer qualifies for classification as class 2a under section 273.13;
83.21 	(2) is voluntarily withdrawn from the program; or
83.22 	(3) is sold, transferred, or subdivided.

83.23 	EFFECTIVE DATE. This section is effective for assessment year 2024 and thereafter.

83.24 	Sec. 10. Minnesota Statutes 2022, section 273.124, subdivision 6, is amended to read:
83.25 		Subd. 6.Leasehold cooperatives. When one or more dwellings or one or more buildings 
83.26 	which each contain several dwelling units is owned by a nonprofit corporation subject to 
83.27 	the provisions of chapter 317A and qualifying under section 501(c)(3) or 501(c)(4) of the 
83.28 	Internal Revenue Code, or a limited partnership which corporation or partnership operates 
83.29 	the property in conjunction with a cooperative association, and has received public financing, 
83.30 	homestead treatment may be claimed by the cooperative association on behalf of the members 
83.31 	of the cooperative for each dwelling unit occupied by a member of the cooperative. The 
84.1 	cooperative association must provide the assessor with the Social Security numbers or 
84.2 	individual taxpayer identification numbers of those members. To qualify for the treatment 
84.3 	provided by this subdivision, the following conditions must be met:
84.4 	(a) the cooperative association must be organized under chapter 308A or 308B and all 
84.5 	voting members of the board of directors must be resident tenants of the cooperative and 
84.6 	must be elected by the resident tenants of the cooperative;
84.7 	(b) the cooperative association must have a lease for occupancy of the property for a 
84.8 	term of at least 20 years, which permits the cooperative association, while not in default on 
84.9 	the lease, to participate materially in the management of the property, including material 
84.10 	participation in establishing budgets, setting rent levels, and hiring and supervising a 
84.11 	management agent;
84.12 	(c) to the extent permitted under state or federal law, the cooperative association must 
84.13 	have a right under a written agreement with the owner to purchase the property if the owner 
84.14 	proposes to sell it; if the cooperative association does not purchase the property it is offered 
84.15 	for sale, the owner may not subsequently sell the property to another purchaser at a price 
84.16 	lower than the price at which it was offered for sale to the cooperative association unless 
84.17 	the cooperative association approves the sale;
84.18 	(d) a minimum of 40 percent of the cooperative association's members must have incomes 
84.19 	at or less than 60 percent of area median gross income as determined by the United States 
84.20 	Secretary of Housing and Urban Development under section 142(d)(2)(B) of the Internal 
84.21 	Revenue Code. For purposes of this clause, "member income" means the income of a member 
84.22 	existing at the time the member acquires cooperative membership;
84.23 	(e) if a limited partnership owns the property, it must include as the managing general 
84.24 	partner a nonprofit organization operating under the provisions of chapter 317A and 
84.25 	qualifying under section 501(c)(3) or 501(c)(4) of the Internal Revenue Code and the limited 
84.26 	partnership agreement must provide that the managing general partner have sufficient powers 
84.27 	so that it materially participates in the management and control of the limited partnership;
84.28 	(f) prior to becoming a member of a leasehold cooperative described in this subdivision, 
84.29 	a person must have received notice that (1) describes leasehold cooperative property in plain 
84.30 	language, including but not limited to the effects of classification under this subdivision on 
84.31 	rents, property taxes and tax credits or refunds, and operating expenses, and (2) states that 
84.32 	copies of the articles of incorporation and bylaws of the cooperative association, the lease 
84.33 	between the owner and the cooperative association, a sample sublease between the 
84.34 	cooperative association and a tenant, and, if the owner is a partnership, a copy of the limited 
85.1 	partnership agreement, can be obtained upon written request at no charge from the owner, 
85.2 	and the owner must send or deliver the materials within seven days after receiving any 
85.3 	request;
85.4 	(g) if a dwelling unit of a building was occupied on the 60th day prior to the date on 
85.5 	which the unit became leasehold cooperative property described in this subdivision, the 
85.6 	notice described in paragraph (f) must have been sent by first class mail to the occupant of 
85.7 	the unit at least 60 days prior to the date on which the unit became leasehold cooperative 
85.8 	property. For purposes of the notice under this paragraph, the copies of the documents 
85.9 	referred to in paragraph (f) may be in proposed version, provided that any subsequent 
85.10 	material alteration of those documents made after the occupant has requested a copy shall 
85.11 	be disclosed to any occupant who has requested a copy of the document. Copies of the 
85.12 	articles of incorporation and certificate of limited partnership shall be filed with the secretary 
85.13 	of state after the expiration of the 60-day period unless the change to leasehold cooperative 
85.14 	status does not proceed;
85.15 	(h) the county attorney of the county in which the property is located must certify to the 
85.16 	assessor that the property meets the requirements of this subdivision;
85.17 	(i) the public financing received must be from at least one of the following sources:
85.18 	(1) tax increment financing proceeds used for the acquisition or rehabilitation of the 
85.19 	building or interest rate write-downs relating to the acquisition of the building;
85.20 	(2) government issued bonds exempt from taxes under section 103 of the Internal Revenue 
85.21 	Code, the proceeds of which are used for the acquisition or rehabilitation of the building;
85.22 	(3) programs under section 221(d)(3), 202, or 236, of Title II of the National Housing 
85.23 	Act;
85.24 	(4) rental housing program funds under Section 8 of the United States Housing Act of 
85.25 	1937, as amended, or the market rate family graduated payment mortgage program funds 
85.26 	administered by the Minnesota Housing Finance Agency that are used for the acquisition 
85.27 	or rehabilitation of the building;
85.28 	(5) low-income housing credit under section 42 of the Internal Revenue Code;
85.29 	(6) public financing provided by a local government used for the acquisition or 
85.30 	rehabilitation of the building, including grants or loans from (i) federal community 
85.31 	development block grants; (ii) HOME block grants; or (iii) residential rental bonds issued 
85.32 	under chapter 474A; or
86.1 	(7) other rental housing program funds provided by the Minnesota Housing Finance 
86.2 	Agency for the acquisition or rehabilitation of the building;
86.3 	(j) at the time of the initial request for homestead classification or of any transfer of 
86.4 	ownership of the property, the governing body of the municipality in which the property is 
86.5 	located must hold a public hearing and make the following findings:
86.6 	(1) that the granting of the homestead treatment of the apartment's units will facilitate 
86.7 	safe, clean, affordable housing for the cooperative members that would otherwise not be 
86.8 	available absent the homestead designation;
86.9 	(2) that the owner has presented information satisfactory to the governing body showing 
86.10 	that the savings garnered from the homestead designation of the units will be used to reduce 
86.11 	tenant's rents or provide a level of furnishing or maintenance not possible absent the 
86.12 	designation; and
86.13 	(3) that the requirements of paragraphs (b), (d), and (i) have been met.
86.14 	Homestead treatment must be afforded to units occupied by members of the cooperative 
86.15 	association and the units must be assessed as provided in subdivision 3, provided that any 
86.16 	unit not so occupied shall be classified and assessed pursuant to the appropriate class. No 
86.17 	more than three acres of land may, for assessment purposes, be included with each dwelling 
86.18 	unit that qualifies for homestead treatment under this subdivision.
86.19 	When dwelling units no longer qualify under this subdivision, the current owner must 
86.20 	notify the assessor within 60 days. Failure to notify the assessor within 60 days shall result 
86.21 	in the loss of benefits under this subdivision for taxes payable in the year that the failure is 
86.22 	discovered. For these purposes, "benefits under this subdivision" means the difference in 
86.23 	the net tax capacity of the units which no longer qualify as computed under this subdivision 
86.24 	and as computed under the otherwise applicable law, times the local tax rate applicable to 
86.25 	the building for that taxes payable year. Upon discovery of a failure to notify, the assessor 
86.26 	shall inform the auditor of the difference in net tax capacity for the building or buildings in 
86.27 	which units no longer qualify, and the auditor shall calculate the benefits under this 
86.28 	subdivision. Such amount, plus a penalty equal to 100 percent of that amount, shall then be 
86.29 	demanded of the building's owner. The property owner may appeal the county's determination 
86.30 	by serving copies of a petition for review with county officials as provided in section 278.01
86.31 	and filing a proof of service as provided in section 278.01 with the Minnesota Tax Court 
86.32 	within 60 days of the date of the notice from the county. The appeal shall be governed by 
86.33 	the Tax Court procedures provided in chapter 271, for cases relating to the tax laws as 
86.34 	defined in section 271.01, subdivision 5; disregarding sections 273.125, subdivision 5, and 
87.1 	278.03, but including section 278.05, subdivision 2. If the amount of the benefits under this 
87.2 	subdivision and penalty are not paid within 60 days, and if no appeal has been filed, the 
87.3 	county auditor shall certify the amount of the benefit and penalty to the succeeding year's 
87.4 	tax list to be collected as part of the property taxes on the affected buildings.

87.5 	EFFECTIVE DATE. This section is effective retroactively for homestead applications 
87.6 	filed in 2023 and thereafter.

87.7 	Sec. 11. Minnesota Statutes 2022, section 273.124, subdivision 13, is amended to read:
87.8 		Subd. 13.Homestead application. (a) A person who meets the homestead requirements 
87.9 	under subdivision 1 must file a homestead application with the county assessor to initially 
87.10 	obtain homestead classification.
87.11 	(b) The commissioner shall prescribe the content, format, and manner of the homestead 
87.12 	application required to be filed under this chapter pursuant to section 270C.30. The 
87.13 	application must clearly inform the taxpayer that this application must be signed by all 
87.14 	owners who occupy the property or by the qualifying relative and returned to the county 
87.15 	assessor in order for the property to receive homestead treatment.
87.16 	(c) Every property owner applying for homestead classification must furnish to the 
87.17 	county assessor the Social Security number or individual tax identification number of each 
87.18 	occupant who is listed as an owner of the property on the deed of record, the name and 
87.19 	address of each owner who does not occupy the property, and the name and Social Security 
87.20 	number or individual tax identification number of the spouse of each occupying owner. The 
87.21 	application must be signed by each owner who occupies the property and by each owner's 
87.22 	spouse who occupies the property, or, in the case of property that qualifies as a homestead 
87.23 	under subdivision 1, paragraph (c), by the qualifying relative.
87.24 	If a property owner occupies a homestead, the property owner's spouse may not claim 
87.25 	another property as a homestead unless the property owner and the property owner's spouse 
87.26 	file with the assessor an affidavit or other proof required by the assessor stating that the 
87.27 	property qualifies as a homestead under subdivision 1, paragraph (e).
87.28 	Owners or spouses occupying residences owned by their spouses and previously occupied 
87.29 	with the other spouse, either of whom fail to include the other spouse's name and Social 
87.30 	Security number or individual tax identification number on the homestead application or 
87.31 	provide the affidavits or other proof requested, will be deemed to have elected to receive 
87.32 	only partial homestead treatment of their residence. The remainder of the residence will be 
87.33 	classified as nonhomestead residential. When an owner or spouse's name and Social Security 
88.1 	number or individual tax identification number appear on homestead applications for two 
88.2 	separate residences and only one application is signed, the owner or spouse will be deemed 
88.3 	to have elected to homestead the residence for which the application was signed.
88.4 	(d) If residential real estate is occupied and used for purposes of a homestead by a relative 
88.5 	of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for 
88.6 	the property to receive homestead status, a homestead application must be filed with the 
88.7 	assessor. The Social Security number or individual tax identification number of each relative 
88.8 	occupying the property and the name and Social Security number or individual tax 
88.9 	identification number of the spouse of a relative occupying the property shall be required 
88.10 	on the homestead application filed under this subdivision. If a different relative of the owner 
88.11 	subsequently occupies the property, the owner of the property must notify the assessor 
88.12 	within 30 days of the change in occupancy. The Social Security number or individual tax 
88.13 	identification number of a relative occupying the property or the spouse of a relative 
88.14 	occupying the property is private data on individuals as defined by section 13.02, subdivision 
88.15 	12, but may be disclosed to the commissioner of revenue, or, for the purposes of proceeding 
88.16 	under the Revenue Recapture Act to recover personal property taxes owing, to the county 
88.17 	treasurer.
88.18 	(e) The homestead application shall also notify the property owners that if the property 
88.19 	is granted homestead status for any assessment year, that same property shall remain 
88.20 	classified as homestead until the property is sold or transferred to another person, or the 
88.21 	owners, the spouse of the owner, or the relatives no longer use the property as their 
88.22 	homestead. Upon the sale or transfer of the homestead property, a certificate of value must 
88.23 	be timely filed with the county auditor as provided under section 272.115. Failure to notify 
88.24 	the assessor within 30 days that the property has been sold, transferred, or that the owner, 
88.25 	the spouse of the owner, or the relative is no longer occupying the property as a homestead, 
88.26 	shall result in the penalty provided under this subdivision and the property will lose its 
88.27 	current homestead status.
88.28 	(f) If a homestead application has not been filed with the county by December 31, the 
88.29 	assessor shall classify the property as nonhomestead for the current assessment year for 
88.30 	taxes payable in the following year, provided that the owner may be entitled to receive the 
88.31 	homestead classification by proper application under section 375.192.

88.32 	EFFECTIVE DATE. This section is effective retroactively for applications for 
88.33 	homestead filed in 2023 and thereafter.

89.1 	Sec. 12. Minnesota Statutes 2022, section 273.124, subdivision 13a, is amended to read:
89.2 		Subd. 13a.Occupant list.  At the request of the commissioner, each county must give 
89.3 	the commissioner a list that includes the name and Social Security number or individual 
89.4 	taxpayer identification number of each occupant of homestead property who is the property 
89.5 	owner, property owner's spouse, qualifying relative of a property owner, or a spouse of a 
89.6 	qualifying relative. The commissioner shall use the information provided on the lists as 
89.7 	appropriate under the law, including for the detection of improper claims by owners, or 
89.8 	relatives of owners, under chapter 290A.

89.9 	EFFECTIVE DATE. This section is effective for homestead data provided to the 
89.10 	commissioner in 2024 and thereafter.

89.11 	Sec. 13. Minnesota Statutes 2022, section 273.124, subdivision 13c, is amended to read:
89.12 		Subd. 13c.Property lists.  In addition to lists of homestead properties, the commissioner 
89.13 	may ask the counties to furnish lists of all properties and the record owners. The Social 
89.14 	Security numbers, individual taxpayer identification numbers, and federal identification 
89.15 	numbers that are maintained by a county or city assessor for property tax administration 
89.16 	purposes, and that may appear on the lists retain their classification as private or nonpublic 
89.17 	data; but may be viewed, accessed, and used by the county auditor or treasurer of the same 
89.18 	county for the limited purpose of assisting the commissioner in the preparation of microdata 
89.19 	samples under section 270C.12. The commissioner shall use the information provided on 
89.20 	the lists as appropriate under the law, including for the detection of improper claims by 
89.21 	owners, or relatives of owners, under chapter 290A.

89.22 	EFFECTIVE DATE. This section is effective for homestead data provided to the 
89.23 	commissioner in 2024 and thereafter.

89.24 	Sec. 14. Minnesota Statutes 2022, section 273.124, subdivision 13d, is amended to read:
89.25 		Subd. 13d.Homestead data.  On or before April 30 each year beginning in 2007, each 
89.26 	county must provide the commissioner with the following data for each parcel of homestead 
89.27 	property by electronic means as defined in section 289A.02, subdivision 8:
89.28 	(1) the property identification number assigned to the parcel for purposes of taxes payable 
89.29 	in the current year;
89.30 	(2) the name and Social Security number or individual taxpayer identification number 
89.31 	of each occupant of homestead property who is the property owner or qualifying relative 
90.1 	of a property owner, and the spouse of the property owner who occupies homestead property 
90.2 	or spouse of a qualifying relative of a property owner who occupies homestead property;
90.3 	(3) the classification of the property under section 273.13 for taxes payable in the current 
90.4 	year and in the prior year;
90.5 	(4) an indication of whether the property was classified as a homestead for taxes payable 
90.6 	in the current year because of occupancy by a relative of the owner or by a spouse of a 
90.7 	relative;
90.8 	(5) the property taxes payable as defined in section 290A.03, subdivision 13, for the 
90.9 	current year and the prior year;
90.10 	(6) the market value of improvements to the property first assessed for tax purposes for 
90.11 	taxes payable in the current year;
90.12 	(7) the assessor's estimated market value assigned to the property for taxes payable in 
90.13 	the current year and the prior year;
90.14 	(8) the taxable market value assigned to the property for taxes payable in the current 
90.15 	year and the prior year;
90.16 	(9) whether there are delinquent property taxes owing on the homestead;
90.17 	(10) the unique taxing district in which the property is located; and
90.18 	(11) such other information as the commissioner decides is necessary.
90.19 	The commissioner shall use the information provided on the lists as appropriate under 
90.20 	the law, including for the detection of improper claims by owners, or relatives of owners, 
90.21 	under chapter 290A.

90.22 	EFFECTIVE DATE. This section is effective for homestead data provided to the 
90.23 	commissioner in 2024 and thereafter.

90.24 	Sec. 15. Minnesota Statutes 2022, section 273.124, subdivision 14, is amended to read:
90.25 		Subd. 14.Agricultural homesteads; special provisions. (a) Real estate of less than ten 
90.26 	acres that is the homestead of its owner must be classified as class 2a under section 273.13, 
90.27 	subdivision 23, paragraph (a), if:
90.28 	(1) the parcel on which the house is located is contiguous on at least two sides to (i) 
90.29 	agricultural land, (ii) land owned or administered by the United States Fish and Wildlife 
90.30 	Service, or (iii) land administered by the Department of Natural Resources on which in lieu 
90.31 	taxes are paid under sections 477A.11 to 477A.14 or section 477A.17;
91.1 	(2) its owner also owns a noncontiguous parcel of agricultural land that is at least 20 
91.2 	acres;
91.3 	(3) the noncontiguous land is located not farther than four townships or cities, or a 
91.4 	combination of townships or cities from the homestead; and
91.5 	(4) the agricultural use value of the noncontiguous land and farm buildings is equal to 
91.6 	at least 50 percent of the market value of the house, garage, and one acre of land.
91.7 	Homesteads initially classified as class 2a under the provisions of this paragraph shall 
91.8 	remain classified as class 2a, irrespective of subsequent changes in the use of adjoining 
91.9 	properties, as long as the homestead remains under the same ownership, the owner owns a 
91.10 	noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use 
91.11 	value qualifies under clause (4). Homestead classification under this paragraph is limited 
91.12 	to property that qualified under this paragraph for the 1998 assessment.
91.13 	(b)(i) Agricultural property shall be classified as the owner's homestead, to the same 
91.14 	extent as other agricultural homestead property, if all of the following criteria are met:
91.15 	(1) the agricultural property consists of at least 40 acres including undivided government 
91.16 	lots and correctional 40's;
91.17 	(2) the owner, the owner's spouse, or a grandchild, child, sibling, or parent of the owner 
91.18 	or of the owner's spouse, is actively farming the agricultural property, either on the person's 
91.19 	own behalf as an individual or on behalf of a partnership operating a family farm, family 
91.20 	farm corporation, joint family farm venture, or limited liability company of which the person 
91.21 	is a partner, shareholder, or member;
91.22 	(3) both the owner of the agricultural property and the person who is actively farming 
91.23 	the agricultural property under clause (2), are Minnesota residents;
91.24 	(4) neither the owner nor the spouse of the owner claims another agricultural homestead 
91.25 	in Minnesota; and
91.26 	(5) neither the owner nor the person actively farming the agricultural property lives 
91.27 	farther than four townships or cities, or a combination of four townships or cities, from the 
91.28 	agricultural property, except that if the owner or the owner's spouse is required to live in 
91.29 	employer-provided housing, the owner or owner's spouse, whichever is actively farming 
91.30 	the agricultural property, may live more than four townships or cities, or combination of 
91.31 	four townships or cities from the agricultural property.
91.32 	The relationship under this paragraph may be either by blood or marriage.
92.1 	(ii) Property containing the residence of an owner who owns qualified property under 
92.2 	clause (i) shall be classified as part of the owner's agricultural homestead, if that property 
92.3 	is also used for noncommercial storage or drying of agricultural crops.
92.4 	(iii) As used in this paragraph, "agricultural property" means class 2a property and any 
92.5 	class 2b property that is contiguous to and under the same ownership as the class 2a property.
92.6 	(c) Noncontiguous land shall be included as part of a homestead under section 273.13, 
92.7 	subdivision 23, paragraph (a), only if the homestead is classified as class 2a and the detached 
92.8 	land is located in the same township or city, or not farther than four townships or cities or 
92.9 	combination thereof from the homestead. Any taxpayer of these noncontiguous lands must 
92.10 	notify the county assessor that the noncontiguous land is part of the taxpayer's homestead, 
92.11 	and, if the homestead is located in another county, the taxpayer must also notify the assessor 
92.12 	of the other county.
92.13 	(d) Agricultural land used for purposes of a homestead and actively farmed by a person 
92.14 	holding a vested remainder interest in it must be classified as a homestead under section 
92.15 	273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a, any other 
92.16 	dwellings on the land used for purposes of a homestead by persons holding vested remainder 
92.17 	interests who are actively engaged in farming the property, and up to one acre of the land 
92.18 	surrounding each homestead and reasonably necessary for the use of the dwelling as a home, 
92.19 	must also be assessed class 2a.
92.20 	(e) Agricultural land and buildings that were class 2a homestead property under section 
92.21 	273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain classified as 
92.22 	agricultural homesteads for subsequent assessments if:
92.23 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
92.24 	homestead as a result of the April 1997 floods;
92.25 	(2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, or 
92.26 	Wilkin;
92.27 	(3) the agricultural land and buildings remain under the same ownership for the current 
92.28 	assessment year as existed for the 1997 assessment year and continue to be used for 
92.29 	agricultural purposes;
92.30 	(4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles 
92.31 	of one of the parcels of agricultural land that is owned by the taxpayer; and
92.32 	(5) the owner notifies the county assessor that the relocation was due to the 1997 floods, 
92.33 	and the owner furnishes the assessor any information deemed necessary by the assessor in 
93.1 	verifying the change in dwelling. Further notifications to the assessor are not required if the 
93.2 	property continues to meet all the requirements in this paragraph and any dwellings on the 
93.3 	agricultural land remain uninhabited.
93.4 	(f) Agricultural land and buildings that were class 2a homestead property under section 
93.5 	273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain classified 
93.6 	agricultural homesteads for subsequent assessments if:
93.7 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
93.8 	homestead as a result of damage caused by a March 29, 1998, tornado;
93.9 	(2) the property is located in the county of Blue Earth, Brown, Cottonwood, Le Sueur, 
93.10 	Nicollet, Nobles, or Rice;
93.11 	(3) the agricultural land and buildings remain under the same ownership for the current 
93.12 	assessment year as existed for the 1998 assessment year;
93.13 	(4) the dwelling occupied by the owner is located in this state and is within 50 miles of 
93.14 	one of the parcels of agricultural land that is owned by the taxpayer; and
93.15 	(5) the owner notifies the county assessor that the relocation was due to a March 29, 
93.16 	1998, tornado, and the owner furnishes the assessor any information deemed necessary by 
93.17 	the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the 
93.18 	owner must notify the assessor by December 1, 1998. Further notifications to the assessor 
93.19 	are not required if the property continues to meet all the requirements in this paragraph and 
93.20 	any dwellings on the agricultural land remain uninhabited.
93.21 	(g) Agricultural property of a family farm corporation, joint family farm venture, family 
93.22 	farm limited liability company, or partnership operating a family farm as described under 
93.23 	subdivision 8 shall be classified homestead, to the same extent as other agricultural homestead 
93.24 	property, if all of the following criteria are met:
93.25 	(1) the property consists of at least 40 acres including undivided government lots and 
93.26 	correctional 40's;
93.27 	(2) a shareholder, member, or partner of that entity is actively farming the agricultural 
93.28 	property;
93.29 	(3) that shareholder, member, or partner who is actively farming the agricultural property 
93.30 	is a Minnesota resident;
93.31 	(4) neither that shareholder, member, or partner, nor the spouse of that shareholder, 
93.32 	member, or partner claims another agricultural homestead in Minnesota; and
94.1 	(5) that shareholder, member, or partner does not live farther than four townships or 
94.2 	cities, or a combination of four townships or cities, from the agricultural property.
94.3 	Homestead treatment applies under this paragraph even if:
94.4 	(i) the shareholder, member, or partner of that entity is actively farming the agricultural 
94.5 	property on the shareholder's, member's, or partner's own behalf; or
94.6 	(ii) the family farm is operated by a family farm corporation, joint family farm venture, 
94.7 	partnership, or limited liability company other than the family farm corporation, joint family 
94.8 	farm venture, partnership, or limited liability company that owns the land, provided that:
94.9 	(A) the shareholder, member, or partner of the family farm corporation, joint family 
94.10 	farm venture, partnership, or limited liability company that owns the land who is actively 
94.11 	farming the land is a shareholder, member, or partner of the family farm corporation, joint 
94.12 	family farm venture, partnership, or limited liability company that is operating the farm; 
94.13 	and
94.14 	(B) more than half of the shareholders, members, or partners of each family farm 
94.15 	corporation, joint family farm venture, partnership, or limited liability company are persons 
94.16 	or spouses of persons who are a qualifying relative under section 273.124, subdivision 1, 
94.17 	paragraphs (c) and (d).
94.18 	Homestead treatment applies under this paragraph for property leased to a family farm 
94.19 	corporation, joint farm venture, limited liability company, or partnership operating a family 
94.20 	farm if legal title to the property is in the name of an individual who is a member, shareholder, 
94.21 	or partner in the entity.
94.22 	(h) To be eligible for the special agricultural homestead under this subdivision, an initial 
94.23 	full application must be submitted to the county assessor where the property is located. 
94.24 	Owners and the persons who are actively farming the property shall be required to complete 
94.25 	only a one-page abbreviated version of the application in each subsequent year provided 
94.26 	that none of the following items have changed since the initial application:
94.27 	(1) the day-to-day operation, administration, and financial risks remain the same;
94.28 	(2) the owners and the persons actively farming the property continue to live within the 
94.29 	four townships or city criteria and are Minnesota residents;
94.30 	(3) the same operator of the agricultural property is listed with the Farm Service Agency;
94.31 	(4) a Schedule F or equivalent income tax form was filed for the most recent year;
94.32 	(5) the property's acreage is unchanged; and
95.1 	(6) none of the property's acres have been enrolled in a federal or state farm program 
95.2 	since the initial application.
95.3 	The owners and any persons who are actively farming the property must include the 
95.4 	appropriate Social Security numbers or individual taxpayer identification numbers, and sign 
95.5 	and date the application. If any of the specified information has changed since the full 
95.6 	application was filed, the owner must notify the assessor, and must complete a new 
95.7 	application to determine if the property continues to qualify for the special agricultural 
95.8 	homestead. The commissioner of revenue shall prepare a standard reapplication form for 
95.9 	use by the assessors.
95.10 	(i) Agricultural land and buildings that were class 2a homestead property under section 
95.11 	273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain classified 
95.12 	agricultural homesteads for subsequent assessments if:
95.13 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
95.14 	homestead as a result of damage caused by the August 2007 floods;
95.15 	(2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele, 
95.16 	Wabasha, or Winona;
95.17 	(3) the agricultural land and buildings remain under the same ownership for the current 
95.18 	assessment year as existed for the 2007 assessment year;
95.19 	(4) the dwelling occupied by the owner is located in this state and is within 50 miles of 
95.20 	one of the parcels of agricultural land that is owned by the taxpayer; and
95.21 	(5) the owner notifies the county assessor that the relocation was due to the August 2007 
95.22 	floods, and the owner furnishes the assessor any information deemed necessary by the 
95.23 	assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the 
95.24 	owner must notify the assessor by December 1, 2008. Further notifications to the assessor 
95.25 	are not required if the property continues to meet all the requirements in this paragraph and 
95.26 	any dwellings on the agricultural land remain uninhabited.
95.27 	(j) Agricultural land and buildings that were class 2a homestead property under section 
95.28 	273.13, subdivision 23, paragraph (a), for the 2008 assessment shall remain classified as 
95.29 	agricultural homesteads for subsequent assessments if:
95.30 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
95.31 	homestead as a result of the March 2009 floods;
95.32 	(2) the property is located in the county of Marshall;
96.1 	(3) the agricultural land and buildings remain under the same ownership for the current 
96.2 	assessment year as existed for the 2008 assessment year and continue to be used for 
96.3 	agricultural purposes;
96.4 	(4) the dwelling occupied by the owner is located in Minnesota and is within 50 miles 
96.5 	of one of the parcels of agricultural land that is owned by the taxpayer; and
96.6 	(5) the owner notifies the county assessor that the relocation was due to the 2009 floods, 
96.7 	and the owner furnishes the assessor any information deemed necessary by the assessor in 
96.8 	verifying the change in dwelling. Further notifications to the assessor are not required if the 
96.9 	property continues to meet all the requirements in this paragraph and any dwellings on the 
96.10 	agricultural land remain uninhabited.

96.11 	EFFECTIVE DATE. This section is effective retroactively for homestead applications 
96.12 	filed in 2023 and thereafter.

96.13 	Sec. 16. Minnesota Statutes 2022, section 273.1245, subdivision 1, is amended to read:
96.14 		Subdivision 1.Private or nonpublic data. The following data are private or nonpublic 
96.15 	data as defined in section 13.02, subdivisions 9 and 12, when they are submitted to a county 
96.16 	or local assessor under section 273.124, 273.13, or another section, to support a claim for 
96.17 	the property tax homestead classification under section 273.13, or other property tax 
96.18 	classification or benefit:
96.19 	(1) Social Security numbers;
96.20 	(2) individual taxpayer identification numbers;
96.21 	(2) (3) copies of state or federal income tax returns; and
96.22 	(3) (4) state or federal income tax return information, including the federal income tax 
96.23 	schedule F.

96.24 	EFFECTIVE DATE. This section is effective retroactively for homestead applications 
96.25 	filed in 2023 and thereafter.

96.26 	Sec. 17. Minnesota Statutes 2022, section 273.128, subdivision 1, is amended to read:
96.27 		Subdivision 1.Requirement. Low-income rental property classified as class 4d 4d(1)
96.28 	under section 273.13, subdivision 25, is entitled to valuation under this section if at least 
96.29 	20 percent of the units in the rental housing property meet any of the following qualifications:
96.30 	(1) the units are subject to a housing assistance payments contract under Section 8 of 
96.31 	the United States Housing Act of 1937, as amended;
97.1 	(2) the units are rent-restricted and income-restricted units of a qualified low-income 
97.2 	housing project receiving tax credits under section 42(g) of the Internal Revenue Code;
97.3 	(3) the units are financed by the Rural Housing Service of the United States Department 
97.4 	of Agriculture and receive payments under the rental assistance program pursuant to section 
97.5 	521(a) of the Housing Act of 1949, as amended; or
97.6 	(4) the units are subject to rent and income restrictions under the terms of financial 
97.7 	assistance provided to the rental housing property by the federal government or the state of 
97.8 	Minnesota, or a local unit of government, as evidenced by a document recorded against the 
97.9 	property.
97.10 	The restrictions must require assisted units to be occupied by residents whose household 
97.11 	income at the time of initial occupancy does not exceed 60 percent of the greater of area or 
97.12 	state median income, adjusted for family size, as determined by the United States Department 
97.13 	of Housing and Urban Development. The restriction must also require the rents for assisted 
97.14 	units to not exceed 30 percent of 60 percent of the greater of area or state median income, 
97.15 	adjusted for family size, as determined by the United States Department of Housing and 
97.16 	Urban Development.

97.17 	EFFECTIVE DATE. This section is effective beginning with assessment year 2024.

97.18 	Sec. 18. Minnesota Statutes 2022, section 273.128, is amended by adding a subdivision 
97.19 	to read:
97.20 		Subd. 1a.Approval. A property owner must receive approval by resolution of the 
97.21 	governing body of the city or town where the property is located before submitting an initial 
97.22 	application to the Housing Finance Agency, as required under subdivision 2, for property 
97.23 	that has not, in whole or in part, been classified as class 4d(1) under section 273.13, 
97.24 	subdivision 25, prior to assessment year 2024. A property owner that receives approval as 
97.25 	required under this subdivision, and the certification made under subdivision 3, shall not 
97.26 	be required to seek approval under this subdivision prior to submitting an application under 
97.27 	subdivision 2 in each subsequent year. If the property is located in a city or town in which 
97.28 	the net tax capacity of 4d(1) property did not exceed two percent of the total net tax capacity 
97.29 	in the city or town in the prior assessment year, the property owner does not need to receive 
97.30 	approval under this subdivision.

97.31 	EFFECTIVE DATE. This section is effective beginning with assessment year 2024.

98.1 	Sec. 19. Minnesota Statutes 2022, section 273.128, subdivision 2, is amended to read:
98.2 		Subd. 2.Application. (a) Application for certification under this section must be filed 
98.3 	by March 31 of the levy year, or at a later date if the Housing Finance Agency deems 
98.4 	practicable. The application must be filed with the Housing Finance Agency, on a form 
98.5 	prescribed by the agency, and must contain the information required by the Housing Finance 
98.6 	Agency.
98.7 	(b) Each application must include:
98.8 	(1) the property tax identification number; and
98.9 	(2) evidence that the property meets the requirements of subdivision subdivisions 1 and 
98.10 	1a.
98.11 	(c) The Housing Finance Agency may charge an application fee approximately equal 
98.12 	to the costs of processing and reviewing the applications but not to exceed $10 per unit. If 
98.13 	imposed, the applicant must pay the application fee to the Housing Finance Agency. The 
98.14 	fee must be deposited in the housing development fund.

98.15 	EFFECTIVE DATE. This section is effective beginning with assessment year 2024.

98.16 	Sec. 20. Minnesota Statutes 2022, section 273.13, subdivision 22, is amended to read:
98.17 		Subd. 22.Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and 
98.18 	(c), real estate which is residential and used for homestead purposes is class 1a. In the case 
98.19 	of a duplex or triplex in which one of the units is used for homestead purposes, the entire 
98.20 	property is deemed to be used for homestead purposes. The market value of class 1a property 
98.21 	must be determined based upon the value of the house, garage, and land.
98.22 	The first $500,000 of market value of class 1a property has a net classification rate of 
98.23 	one percent of its market value; and the market value of class 1a property that exceeds 
98.24 	$500,000 has a classification rate of 1.25 percent of its market value.
98.25 	(b) Class 1b property includes homestead real estate or homestead manufactured homes 
98.26 	used for the purposes of a homestead by:
98.27 	(1) any person who is blind as defined in section 256D.35, or the person who is blind 
98.28 	and the spouse of the person who is blind;
98.29 	(2) any person who is permanently and totally disabled or by the person with a disability 
98.30 	and the spouse of the person with a disability; or
99.1 	(3) the surviving spouse of a veteran who was permanently and totally disabled 
99.2 	homesteading a property classified under this paragraph for taxes payable in 2008.
99.3 	Property is classified and assessed under clause (2) only if the government agency or 
99.4 	income-providing source certifies, upon the request of the homestead occupant, that the 
99.5 	homestead occupant satisfies the disability requirements of this paragraph, and that the 
99.6 	property is not eligible for the valuation exclusion under subdivision 34.
99.7 	Property is classified and assessed under paragraph (b) only if the commissioner of 
99.8 	revenue or the county assessor certifies that the homestead occupant satisfies the requirements 
99.9 	of this paragraph.
99.10 	Permanently and totally disabled for the purpose of this subdivision means a condition 
99.11 	which is permanent in nature and totally incapacitates the person from working at an 
99.12 	occupation which brings the person an income. The first $50,000 market value of class 1b 
99.13 	property has a net classification rate of .45 percent of its market value. The remaining market 
99.14 	value of class 1b property is classified as class 1a or class 2a property, whichever is 
99.15 	appropriate.
99.16 	(c) Class 1c property is commercial use real and personal property that abuts public 
99.17 	water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by 
99.18 	the Department of Natural Resources, and is devoted to temporary and seasonal residential 
99.19 	occupancy for recreational purposes but not devoted to commercial purposes for more than 
99.20 	250 days in the year preceding the year of assessment, and that includes a portion used as 
99.21 	a homestead by the owner, which includes a dwelling occupied as a homestead by a 
99.22 	shareholder of a corporation that owns the resort, a partner in a partnership that owns the 
99.23 	resort, or a member of a limited liability company that owns the resort even if the title to 
99.24 	the homestead is held by the corporation, partnership, or limited liability company. For 
99.25 	purposes of this paragraph, property is devoted to a commercial purpose on a specific day 
99.26 	if any portion of the property, excluding the portion used exclusively as a homestead, is 
99.27 	used for residential occupancy and a fee is charged for residential occupancy. Class 1c 
99.28 	property must contain three or more rental units. A "rental unit" is defined as a cabin, 
99.29 	condominium, townhouse, sleeping room, or individual camping site equipped with water 
99.30 	and electrical hookups for recreational vehicles. Class 1c property must provide recreational 
99.31 	activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill 
99.32 	or cross-country ski equipment; provide marina services, launch services, or guide services; 
99.33 	or sell bait and fishing tackle. Any unit in which the right to use the property is transferred 
99.34 	to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies 
99.35 	for class 1c even though it may remain available for rent. A camping pad offered for rent 
100.1 	by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of 
100.2 	the rental agreement, as long as the use of the camping pad does not exceed 250 days. If 
100.3 	the same owner owns two separate parcels that are located in the same township, and one 
100.4 	of those properties is classified as a class 1c property and the other would be eligible to be 
100.5 	classified as a class 1c property if it was used as the homestead of the owner, both properties 
100.6 	will be assessed as a single class 1c property; for purposes of this sentence, properties are 
100.7 	deemed to be owned by the same owner if each of them is owned by a limited liability 
100.8 	company, and both limited liability companies have the same membership. The portion of 
100.9 	the property used as a homestead is class 1a property under paragraph (a). The remainder 
100.10 	of the property is classified as follows: the first $600,000 $850,000 of market value is tier 
100.11 	I, the next $1,700,000 $2,250,000 of market value is tier II, and any remaining market value 
100.12 	is tier III. The classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; 
100.13 	and tier III, 1.25 percent. Owners of real and personal property devoted to temporary and 
100.14 	seasonal residential occupancy for recreation purposes in which all or a portion of the 
100.15 	property was devoted to commercial purposes for not more than 250 days in the year 
100.16 	preceding the year of assessment desiring classification as class 1c, must submit a declaration 
100.17 	to the assessor designating the cabins or units occupied for 250 days or less in the year 
100.18 	preceding the year of assessment by January 15 of the assessment year. Those cabins or 
100.19 	units and a proportionate share of the land on which they are located must be designated as 
100.20 	class 1c as otherwise provided. The remainder of the cabins or units and a proportionate 
100.21 	share of the land on which they are located must be designated as class 3a commercial. The 
100.22 	owner of property desiring designation as class 1c property must provide guest registers or 
100.23 	other records demonstrating that the units for which class 1c designation is sought were not 
100.24 	occupied for more than 250 days in the year preceding the assessment if so requested. The 
100.25 	portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center 
100.26 	or meeting room, and (5) other nonresidential facility operated on a commercial basis not 
100.27 	directly related to temporary and seasonal residential occupancy for recreation purposes 
100.28 	does not qualify for class 1c.
100.29 	(d) Class 1d property includes structures that meet all of the following criteria:
100.30 	(1) the structure is located on property that is classified as agricultural property under 
100.31 	section 273.13, subdivision 23;
100.32 	(2) the structure is occupied exclusively by seasonal farm workers during the time when 
100.33 	they work on that farm, and the occupants are not charged rent for the privilege of occupying 
100.34 	the property, provided that use of the structure for storage of farm equipment and produce 
100.35 	does not disqualify the property from classification under this paragraph;
101.1 	(3) the structure meets all applicable health and safety requirements for the appropriate 
101.2 	season; and
101.3 	(4) the structure is not salable as residential property because it does not comply with 
101.4 	local ordinances relating to location in relation to streets or roads.
101.5 	The market value of class 1d property has the same classification rates as class 1a property 
101.6 	under paragraph (a).

101.7 	EFFECTIVE DATE. This section is effective beginning with assessment year 2024.

101.8 	Sec. 21. Minnesota Statutes 2022, section 273.13, subdivision 25, is amended to read:
101.9 		Subd. 25.Class 4. (a) Class 4a is residential real estate containing four or more units 
101.10 	and used or held for use by the owner or by the tenants or lessees of the owner as a residence 
101.11 	for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a 
101.12 	also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt 
101.13 	under section 272.02, and contiguous property used for hospital purposes, without regard 
101.14 	to whether the property has been platted or subdivided. The market value of class 4a property 
101.15 	has a classification rate of 1.25 percent.
101.16 	(b) Class 4b includes:
101.17 	(1) residential real estate containing less than four units, including property rented as a 
101.18 	short-term rental property for more than 14 days in the preceding year, that does not qualify 
101.19 	as class 4bb, other than seasonal residential recreational property;
101.20 	(2) manufactured homes not classified under any other provision;
101.21 	(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm 
101.22 	classified under subdivision 23, paragraph (b) containing two or three units; and
101.23 	(4) unimproved property that is classified residential as determined under subdivision 
101.24 	33.
101.25 	For the purposes of this paragraph, "short-term rental property" means nonhomestead 
101.26 	residential real estate rented for periods of less than 30 consecutive days.
101.27 	The market value of class 4b property has a classification rate of 1.25 percent.
101.28 	(c) Class 4bb includes:
101.29 	(1) nonhomestead residential real estate containing one unit, other than seasonal 
101.30 	residential recreational property;
102.1 	(2) a single family dwelling, garage, and surrounding one acre of property on a 
102.2 	nonhomestead farm classified under subdivision 23, paragraph (b); and
102.3 	(3) a condominium-type storage unit having an individual property identification number 
102.4 	that is not used for a commercial purpose.
102.5 	Class 4bb property has the same classification rates as class 1a property under subdivision 
102.6 	22.
102.7 	Property that has been classified as seasonal residential recreational property at any time 
102.8 	during which it has been owned by the current owner or spouse of the current owner does 
102.9 	not qualify for class 4bb.
102.10 	(d) Class 4c property includes:
102.11 	(1) except as provided in subdivision 22, paragraph (c), real and personal property 
102.12 	devoted to commercial temporary and seasonal residential occupancy for recreation purposes, 
102.13 	for not more than 250 days in the year preceding the year of assessment. For purposes of 
102.14 	this clause, property is devoted to a commercial purpose on a specific day if any portion of 
102.15 	the property is used for residential occupancy, and a fee is charged for residential occupancy. 
102.16 	Class 4c property under this clause must contain three or more rental units. A "rental unit" 
102.17 	is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site 
102.18 	equipped with water and electrical hookups for recreational vehicles. A camping pad offered 
102.19 	for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c 
102.20 	under this clause regardless of the term of the rental agreement, as long as the use of the 
102.21 	camping pad does not exceed 250 days. In order for a property to be classified under this 
102.22 	clause, either (i) the business located on the property must provide recreational activities, 
102.23 	at least 40 percent of the annual gross lodging receipts related to the property must be from 
102.24 	business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid 
102.25 	bookings by lodging guests during the year must be for periods of at least two consecutive 
102.26 	nights; or (B) at least 20 percent of the annual gross receipts must be from charges for 
102.27 	providing recreational activities, or (ii) the business must contain 20 or fewer rental units, 
102.28 	and must be located in a township or a city with a population of 2,500 or less located outside 
102.29 	the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion 
102.30 	of a state trail administered by the Department of Natural Resources. For purposes of item 
102.31 	(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c 
102.32 	property also includes commercial use real property used exclusively for recreational 
102.33 	purposes in conjunction with other class 4c property classified under this clause and devoted 
102.34 	to temporary and seasonal residential occupancy for recreational purposes, up to a total of 
103.1 	two acres, provided the property is not devoted to commercial recreational use for more 
103.2 	than 250 days in the year preceding the year of assessment and is located within two miles 
103.3 	of the class 4c property with which it is used. In order for a property to qualify for 
103.4 	classification under this clause, the owner must submit a declaration to the assessor 
103.5 	designating the cabins or units occupied for 250 days or less in the year preceding the year 
103.6 	of assessment by January 15 of the assessment year. Those cabins or units and a proportionate 
103.7 	share of the land on which they are located must be designated class 4c under this clause 
103.8 	as otherwise provided. The remainder of the cabins or units and a proportionate share of 
103.9 	the land on which they are located will be designated as class 3a. The owner of property 
103.10 	desiring designation as class 4c property under this clause must provide guest registers or 
103.11 	other records demonstrating that the units for which class 4c designation is sought were not 
103.12 	occupied for more than 250 days in the year preceding the assessment if so requested. The 
103.13 	portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center 
103.14 	or meeting room, and (5) other nonresidential facility operated on a commercial basis not 
103.15 	directly related to temporary and seasonal residential occupancy for recreation purposes 
103.16 	does not qualify for class 4c. For the purposes of this paragraph, "recreational activities" 
103.17 	means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country 
103.18 	ski equipment; providing marina services, launch services, or guide services; or selling bait 
103.19 	and fishing tackle;
103.20 	(2) qualified property used as a golf course if:
103.21 	(i) it is open to the public on a daily fee basis. It may charge membership fees or dues, 
103.22 	but a membership fee may not be required in order to use the property for golfing, and its 
103.23 	green fees for golfing must be comparable to green fees typically charged by municipal 
103.24 	courses; and
103.25 	(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
103.26 	A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with 
103.27 	the golf course is classified as class 3a property;
103.28 	(3) real property up to a maximum of three acres of land owned and used by a nonprofit 
103.29 	community service oriented organization and not used for residential purposes on either a 
103.30 	temporary or permanent basis, provided that:
103.31 	(i) the property is not used for a revenue-producing activity for more than six days in 
103.32 	the calendar year preceding the year of assessment; or
103.33 	(ii) the organization makes annual charitable contributions and donations at least equal 
103.34 	to the property's previous year's property taxes and the property is allowed to be used for 
104.1 	public and community meetings or events for no charge, as appropriate to the size of the 
104.2 	facility.
104.3 	For purposes of this clause:
104.4 	(A) "charitable contributions and donations" has the same meaning as lawful gambling 
104.5 	purposes under section 349.12, subdivision 25, excluding those purposes relating to the 
104.6 	payment of taxes, assessments, fees, auditing costs, and utility payments;
104.7 	(B) "property taxes" excludes the state general tax;
104.8 	(C) a "nonprofit community service oriented organization" means any corporation, 
104.9 	society, association, foundation, or institution organized and operated exclusively for 
104.10 	charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 
104.11 	federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal 
104.12 	Revenue Code; and
104.13 	(D) "revenue-producing activities" shall include but not be limited to property or that 
104.14 	portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 
104.15 	liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 
104.16 	alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 
104.17 	insurance business, or office or other space leased or rented to a lessee who conducts a 
104.18 	for-profit enterprise on the premises.
104.19 	Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The 
104.20 	use of the property for social events open exclusively to members and their guests for periods 
104.21 	of less than 24 hours, when an admission is not charged nor any revenues are received by 
104.22 	the organization shall not be considered a revenue-producing activity.
104.23 	The organization shall maintain records of its charitable contributions and donations 
104.24 	and of public meetings and events held on the property and make them available upon 
104.25 	request any time to the assessor to ensure eligibility. An organization meeting the requirement 
104.26 	under item (ii) must file an application by May 1 with the assessor for eligibility for the 
104.27 	current year's assessment. The commissioner shall prescribe a uniform application form 
104.28 	and instructions;
104.29 	(4) postsecondary student housing of not more than one acre of land that is owned by a 
104.30 	nonprofit corporation organized under chapter 317A and is used exclusively by a student 
104.31 	cooperative, sorority, or fraternity for on-campus housing or housing located within two 
104.32 	miles of the border of a college campus;
105.1 	(5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding 
105.2 	manufactured home parks described in items (ii) and (iii), (ii) manufactured home parks as 
105.3 	defined in section 327.14, subdivision 3, that are described in section 273.124, subdivision 
105.4 	3a, and (iii) class I manufactured home parks as defined in section 327C.015, subdivision 
105.5 	2;
105.6 	(6) real property that is actively and exclusively devoted to indoor fitness, health, social, 
105.7 	recreational, and related uses, is owned and operated by a not-for-profit corporation, and is 
105.8 	located within the metropolitan area as defined in section 473.121, subdivision 2;
105.9 	(7) a leased or privately owned noncommercial aircraft storage hangar not exempt under 
105.10 	section 272.01, subdivision 2, and the land on which it is located, provided that:
105.11 	(i) the land is on an airport owned or operated by a city, town, county, Metropolitan 
105.12 	Airports Commission, or group thereof; and
105.13 	(ii) the land lease, or any ordinance or signed agreement restricting the use of the leased 
105.14 	premise, prohibits commercial activity performed at the hangar.
105.15 	If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be 
105.16 	filed by the new owner with the assessor of the county where the property is located within 
105.17 	60 days of the sale;
105.18 	(8) a privately owned noncommercial aircraft storage hangar not exempt under section 
105.19 	272.01, subdivision 2, and the land on which it is located, provided that:
105.20 	(i) the land abuts a public airport; and
105.21 	(ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement 
105.22 	restricting the use of the premises, prohibiting commercial use or activity performed at the 
105.23 	hangar; and
105.24 	(9) residential real estate, a portion of which is used by the owner for homestead purposes, 
105.25 	and that is also a place of lodging, if all of the following criteria are met:
105.26 	(i) rooms are provided for rent to transient guests that generally stay for periods of 14 
105.27 	or fewer days;
105.28 	(ii) meals are provided to persons who rent rooms, the cost of which is incorporated in 
105.29 	the basic room rate;
105.30 	(iii) meals are not provided to the general public except for special events on fewer than 
105.31 	seven days in the calendar year preceding the year of the assessment; and
105.32 	(iv) the owner is the operator of the property.
106.1 	The market value subject to the 4c classification under this clause is limited to five rental 
106.2 	units. Any rental units on the property in excess of five, must be valued and assessed as 
106.3 	class 3a. The portion of the property used for purposes of a homestead by the owner must 
106.4 	be classified as class 1a property under subdivision 22;
106.5 	(10) real property up to a maximum of three acres and operated as a restaurant as defined 
106.6 	under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under 
106.7 	section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to 
106.8 	commercial purposes for not more than 250 consecutive days, or receives at least 60 percent 
106.9 	of its annual gross receipts from business conducted during four consecutive months. Gross 
106.10 	receipts from the sale of alcoholic beverages must be included in determining the property's 
106.11 	qualification under item (ii). The property's primary business must be as a restaurant and 
106.12 	not as a bar. Gross receipts from gift shop sales located on the premises must be excluded. 
106.13 	Owners of real property desiring 4c classification under this clause must submit an annual 
106.14 	declaration to the assessor by February 1 of the current assessment year, based on the 
106.15 	property's relevant information for the preceding assessment year;
106.16 	(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as 
106.17 	a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public 
106.18 	and devoted to recreational use for marina services. The marina owner must annually provide 
106.19 	evidence to the assessor that it provides services, including lake or river access to the public 
106.20 	by means of an access ramp or other facility that is either located on the property of the 
106.21 	marina or at a publicly owned site that abuts the property of the marina. No more than 800 
106.22 	feet of lakeshore may be included in this classification. Buildings used in conjunction with 
106.23 	a marina for marina services, including but not limited to buildings used to provide food 
106.24 	and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified 
106.25 	as class 3a property; and
106.26 	(12) real and personal property devoted to noncommercial temporary and seasonal 
106.27 	residential occupancy for recreation purposes.
106.28 	Class 4c property has a classification rate of 1.5 percent of market value, except that (i) 
106.29 	each parcel of noncommercial seasonal residential recreational property under clause (12) 
106.30 	has the same classification rates as class 4bb property, (ii) manufactured home parks assessed 
106.31 	under clause (5), item (i), have the same classification rate as class 4b property, the market 
106.32 	value of manufactured home parks assessed under clause (5), item (ii), have a classification 
106.33 	rate of 0.75 percent if more than 50 percent of the lots in the park are occupied by 
106.34 	shareholders in the cooperative corporation or association and a classification rate of one 
106.35 	percent if 50 percent or less of the lots are so occupied, and class I manufactured home 
107.1 	parks as defined in section 327C.015, subdivision 2, have a classification rate of 1.0 percent, 
107.2 	(iii) commercial-use seasonal residential recreational property and marina recreational land 
107.3 	as described in clause (11), has a classification rate of one percent for the first $500,000 of 
107.4 	market value, and 1.25 percent for the remaining market value, (iv) the market value of 
107.5 	property described in clause (4) has a classification rate of one percent, (v) the market value 
107.6 	of property described in clauses (2), (6), and (10) has a classification rate of 1.25 percent, 
107.7 	(vi) that portion of the market value of property in clause (9) qualifying for class 4c property 
107.8 	has a classification rate of 1.25 percent, and (vii) property qualifying for classification under 
107.9 	clause (3) that is owned or operated by a congressionally chartered veterans organization 
107.10 	has a classification rate of one percent. The commissioner of veterans affairs must provide 
107.11 	a list of congressionally chartered veterans organizations to the commissioner of revenue 
107.12 	by June 30, 2017, and by January 1, 2018, and each year thereafter.
107.13 	(e) Class 4d property is includes:
107.14 	(1) qualifying low-income rental housing certified to the assessor by the Housing Finance 
107.15 	Agency under section 273.128, subdivision 3. If only a portion of the units in the building 
107.16 	qualify as low-income rental housing units as certified under section 273.128, subdivision 
107.17 	3, only the proportion of qualifying units to the total number of units in the building qualify 
107.18 	for class 4d 4d(1). The remaining portion of the building shall be classified by the assessor 
107.19 	based upon its use. Class 4d 4d(1) also includes the same proportion of land as the qualifying 
107.20 	low-income rental housing units are to the total units in the building. For all properties 
107.21 	qualifying as class 4d 4d(1), the market value determined by the assessor must be based on 
107.22 	the normal approach to value using normal unrestricted rents.; and
107.23 	(2) a unit that is owned by the occupant and used as a homestead by the occupant, and 
107.24 	otherwise meets all the requirements for community land trust property under section 273.11, 
107.25 	subdivision 12, provided that by December 31 of each assessment year, the community land 
107.26 	trust certifies to the assessor that (i) the community land trust owns the real property on 
107.27 	which the unit is located, and (ii) the unit owner is a member in good standing of the 
107.28 	community land trust. For all units qualifying as class 4d(2), the market value determined 
107.29 	by the assessor must be based on the normal approach to value without regard to any 
107.30 	restrictions that apply because the unit is a community land trust property.
107.31 	(f) The first tier of market value of class 4d property has a classification rate of 0.75 
107.32 	percent. The remaining value of class 4d property has a classification rate of 0.25 percent. 
107.33 	For the purposes of this paragraph, the "first tier of market value of class 4d property" means 
107.34 	the market value of each housing unit up to the first tier limit. For the purposes of this 
107.35 	paragraph, all class 4d property value must be assigned to individual housing units. The 
108.1 	first tier limit is $100,000 for assessment years 2022 and 2023. For subsequent assessment 
108.2 	years, the limit is adjusted each year by the average statewide change in estimated market 
108.3 	value of property classified as class 4a and 4d under this section for the previous assessment 
108.4 	year, excluding valuation change due to new construction, rounded to the nearest $1,000, 
108.5 	provided, however, that the limit may never be less than $100,000. Beginning with 
108.6 	assessment year 2015, the commissioner of revenue must certify the limit for each assessment 
108.7 	year by November 1 of the previous year. Class 4d(1) property has a classification rate of 
108.8 	0.25 percent. Class 4d(2) property has a classification rate of 0.75 percent.

108.9 	EFFECTIVE DATE. This section is effective beginning with assessment year 2024 
108.10 	and thereafter.

108.11 	Sec. 22. Minnesota Statutes 2022, section 273.13, subdivision 34, is amended to read:
108.12 		Subd. 34.Homestead of veteran with a disability or family caregiver. (a) All or a 
108.13 	portion of the market value of property owned by a veteran and serving as the veteran's 
108.14 	homestead under this section is excluded in determining the property's taxable market value 
108.15 	if the veteran has a service-connected disability of 70 percent or more as certified by the 
108.16 	United States Department of Veterans Affairs. To qualify for exclusion under this subdivision, 
108.17 	the veteran must have been honorably discharged from the United States armed forces, as 
108.18 	indicated by United States Government Form DD214 or other official military discharge 
108.19 	papers.
108.20 	(b)(1) For a disability rating of 70 percent or more, $150,000 $165,000 of market value 
108.21 	is excluded, except as provided in clause (2); and
108.22 	(2) for a total (100 percent) and permanent disability, $300,000 $330,000 of market 
108.23 	value is excluded.
108.24 	(c) If a veteran with a disability qualifying for a valuation exclusion under paragraph 
108.25 	(b), clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the 
108.26 	spouse holds the legal or beneficial title to the homestead and permanently resides there, 
108.27 	the exclusion shall carry over to the benefit of the veteran's spouse until such time as the 
108.28 	spouse remarries, or sells, transfers, or otherwise disposes of the property, except as otherwise 
108.29 	provided in paragraph (n). Qualification under this paragraph requires an application under 
108.30 	paragraph (h), and a spouse must notify the assessor if there is a change in the spouse's 
108.31 	marital status, ownership of the property, or use of the property as a permanent residence.
108.32 	(d) If the spouse of a member of any branch or unit of the United States armed forces 
108.33 	who dies due to a service-connected cause while serving honorably in active service, as 
109.1 	indicated on United States Government Form DD1300 or DD2064, holds the legal or 
109.2 	beneficial title to a homestead and permanently resides there, the spouse is entitled to the 
109.3 	benefit described in paragraph (b), clause (2), until such time as the spouse remarries or 
109.4 	sells, transfers, or otherwise disposes of the property, except as otherwise provided in 
109.5 	paragraph (n).
109.6 	(e) If a veteran meets the disability criteria of paragraph (a) but does not own property 
109.7 	classified as homestead in the state of Minnesota, then the homestead of the veteran's primary 
109.8 	family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify 
109.9 	for under paragraph (b).
109.10 	(f) In the case of an agricultural homestead, only the portion of the property consisting 
109.11 	of the house and garage and immediately surrounding one acre of land qualifies for the 
109.12 	valuation exclusion under this subdivision.
109.13 	(g) A property qualifying for a valuation exclusion under this subdivision is not eligible 
109.14 	for the market value exclusion under subdivision 35, or classification under subdivision 22, 
109.15 	paragraph (b).
109.16 	(h) To qualify for a valuation exclusion under this subdivision a property owner must 
109.17 	apply to the assessor by December 31 of the first assessment year for which the exclusion 
109.18 	is sought. Except as provided in paragraph (c), the owner of a property that has been accepted 
109.19 	for a valuation exclusion must notify the assessor if there is a change in ownership of the 
109.20 	property or in the use of the property as a homestead.
109.21 	(i) A first-time application by a qualifying spouse for the market value exclusion under 
109.22 	paragraph (d) must be made any time within two years of the death of the service member.
109.23 	(j) For purposes of this subdivision:
109.24 	(1) "active service" has the meaning given in section 190.05;
109.25 	(2) "own" means that the person's name is present as an owner on the property deed;
109.26 	(3) "primary family caregiver" means a person who is approved by the secretary of the 
109.27 	United States Department of Veterans Affairs for assistance as the primary provider of 
109.28 	personal care services for an eligible veteran under the Program of Comprehensive Assistance 
109.29 	for Family Caregivers, codified as United States Code, title 38, section 1720G; and
109.30 	(4) "veteran" has the meaning given the term in section 197.447.
109.31 	(k) If a veteran dying after December 31, 2011, did not apply for or receive the exclusion 
109.32 	under paragraph (b), clause (2), before dying, the veteran's spouse is entitled to the benefit 
110.1 	under paragraph (b), clause (2), until the spouse remarries or sells, transfers, or otherwise 
110.2 	disposes of the property, except as otherwise provided in paragraph (n), if:
110.3 	(1) the spouse files a first-time application within two years of the death of the service 
110.4 	member or by June 1, 2019, whichever is later;
110.5 	(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the 
110.6 	homestead and permanently resides there;
110.7 	(3) the veteran met the honorable discharge requirements of paragraph (a); and
110.8 	(4) the United States Department of Veterans Affairs certifies that:
110.9 	(i) the veteran met the total (100 percent) and permanent disability requirement under 
110.10 	paragraph (b), clause (2); or
110.11 	(ii) the spouse has been awarded dependency and indemnity compensation.
110.12 	(l) The purpose of this provision of law providing a level of homestead property tax 
110.13 	relief for veterans with a disability, their primary family caregivers, and their surviving 
110.14 	spouses is to help ease the burdens of war for those among our state's citizens who bear 
110.15 	those burdens most heavily.
110.16 	(m) By July 1, the county veterans service officer must certify the disability rating and 
110.17 	permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.
110.18 	(n) A spouse who received the benefit in paragraph (c), (d), or (k) but no longer holds 
110.19 	the legal or beneficial title to the property may continue to receive the exclusion for a 
110.20 	property other than the property for which the exclusion was initially granted until the spouse 
110.21 	remarries or sells, transfers, or otherwise disposes of the property, provided that:
110.22 	(1) the spouse applies under paragraph (h) for the continuation of the exclusion allowed 
110.23 	under this paragraph;
110.24 	(2) the spouse holds the legal or beneficial title to the property for which the continuation 
110.25 	of the exclusion is sought under this paragraph, and permanently resides there;
110.26 	(3) the estimated market value of the property for which the exclusion is sought under 
110.27 	this paragraph is less than or equal to the estimated market value of the property that first 
110.28 	received the exclusion, based on the value of each property on the date of the sale of the 
110.29 	property that first received the exclusion; and
110.30 	(4) the spouse has not previously received the benefit under this paragraph for a property 
110.31 	other than the property for which the exclusion is sought.
111.1 	(o) If a spouse previously received the exclusion under paragraph (c) or (d), but the 
111.2 	exclusion expired prior to assessment year 2019 before the eligibility time period for 
111.3 	surviving spouses was changed to a potential lifetime benefit, the spouse may reapply under 
111.4 	paragraph (h) for the exclusion under paragraph (c) or (d).

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

111.6 	Sec. 23. Minnesota Statutes 2022, section 273.13, subdivision 35, is amended to read:
111.7 		Subd. 35.Homestead market value exclusion. (a) Prior to determining a property's 
111.8 	net tax capacity under this section, property classified as 4d(2) under subdivision 25, 
111.9 	paragraph (e), clause (2), class 1a, or 1b under subdivision 22, and the portion of property 
111.10 	classified as class 2a under subdivision 23 consisting of the house, garage, and surrounding 
111.11 	one acre of land, shall be eligible for a market value exclusion as determined under paragraph 
111.12 	(b).
111.13 	(b) For a homestead valued at $76,000 $95,000 or less, the exclusion is 40 percent of 
111.14 	market value. For a homestead valued between $76,000 $95,000 and $413,800 $517,200, 
111.15 	the exclusion is $30,400 $38,000 minus nine percent of the valuation over $76,000 $95,000. 
111.16 	For a homestead valued at $413,800 $517,200 or more, there is no valuation exclusion. The 
111.17 	valuation exclusion shall be rounded to the nearest whole dollar, and may not be less than 
111.18 	zero.
111.19 	(c) Any valuation exclusions or adjustments under section 273.11 shall be applied prior 
111.20 	to determining the amount of the valuation exclusion under this subdivision.
111.21 	(d) In the case of a property that is classified as part homestead and part nonhomestead, 
111.22 	(i) the exclusion shall apply only to the homestead portion of the property, but (ii) if a portion 
111.23 	of a property is classified as nonhomestead solely because not all the owners occupy the 
111.24 	property, not all the owners have qualifying relatives occupying the property, or solely 
111.25 	because not all the spouses of owners occupy the property, the exclusion amount shall be 
111.26 	initially computed as if that nonhomestead portion were also in the homestead class and 
111.27 	then prorated to the owner-occupant's percentage of ownership. For the purpose of this 
111.28 	section, when an owner-occupant's spouse does not occupy the property, the percentage of 
111.29 	ownership for the owner-occupant spouse is one-half of the couple's ownership percentage.

111.30 	EFFECTIVE DATE. This section is effective for assessment year 2024 and thereafter.

112.1 	Sec. 24. Minnesota Statutes 2022, section 273.1315, subdivision 2, is amended to read:
112.2 		Subd. 2.Class 1b homestead declaration 2009 and thereafter. (a) Any property owner 
112.3 	seeking classification and assessment of the owner's homestead as class 1b property pursuant 
112.4 	to section 273.13, subdivision 22, paragraph (b), after October 1, 2008, shall file with the 
112.5 	county assessor a class 1b homestead declaration, on a form prescribed by the commissioner 
112.6 	of revenue. The declaration must contain the following information:
112.7 	(1) the information necessary to verify that, on or before June 30 of the filing year, the 
112.8 	property owner or the owner's spouse satisfies the requirements of section 273.13, subdivision 
112.9 	22, paragraph (b), for class 1b classification; and
112.10 	(2) any additional information prescribed by the commissioner.
112.11 	(b) The declaration must be filed on or before October 1 to be effective for property 
112.12 	taxes payable during the succeeding calendar year. The Social Security numbers, individual 
112.13 	taxpayer identification numbers, and income and medical information received from the 
112.14 	property owner pursuant to this subdivision are private data on individuals as defined in 
112.15 	section 13.02. If approved by the assessor, the declaration remains in effect until the property 
112.16 	no longer qualifies under section 273.13, subdivision 22, paragraph (b). Failure to notify 
112.17 	the assessor within 30 days that the property no longer qualifies under that paragraph because 
112.18 	of a sale, change in occupancy, or change in the status or condition of an occupant shall 
112.19 	result in the penalty provided in section 273.124, subdivision 13b, computed on the basis 
112.20 	of the class 1b benefits for the property, and the property shall lose its current class 1b 
112.21 	classification.

112.22 	EFFECTIVE DATE. This section is effective retroactively for homestead applications 
112.23 	filed in 2023 and thereafter.

112.24 	Sec. 25. Minnesota Statutes 2022, section 273.41, is amended to read:
112.25 	273.41 AMOUNT OF TAX; DISTRIBUTION.
112.26 	There is hereby imposed upon each such cooperative association on December 31 of 
112.27 	each year a tax of $10 for each 100 members, or fraction thereof, of such association. The 
112.28 	tax, when paid, shall be in lieu of all personal property taxes, state, county, or local, upon 
112.29 	distribution lines and the attachments and appurtenances thereto of such associations located 
112.30 	in rural areas. For purposes of this section, "attachments and appurtenances" includes but 
112.31 	is not limited to all cooperative association-owned metering and streetlighting equipment 
112.32 	that is physically or electrically connected to the cooperative association's distribution 
112.33 	system. The tax shall be payable on or before March 1 of the next succeeding year, to the 
113.1 	commissioner of revenue. If the tax, or any portion thereof, is not paid within the time herein 
113.2 	specified for the payment thereof, there shall be added thereto a specific penalty equal to 
113.3 	ten percent of the amount so remaining unpaid. Such penalty shall be collected as part of 
113.4 	said tax, and the amount of said tax not timely paid, together with said penalty, shall bear 
113.5 	interest at the rate specified in section 270C.40 from the time such tax should have been 
113.6 	paid until paid. The commissioner shall deposit the amount so received in the general fund 
113.7 	of the state treasury.

113.8 	EFFECTIVE DATE. This section is effective beginning with assessment year 2024.

113.9 	Sec. 26. Minnesota Statutes 2022, section 279.03, subdivision 1a, is amended to read:
113.10 		Subd. 1a.Rate. (a) Except as provided in paragraph paragraphs (b) and (c), interest on 
113.11 	delinquent property taxes, penalties, and costs unpaid on or after January 1 is payable at the 
113.12 	per annum rate determined in section 270C.40, subdivision 5. If the rate so determined is 
113.13 	less than ten percent, the rate of interest is ten percent. The maximum per annum rate is 14 
113.14 	percent if the rate specified under section 270C.40, subdivision 5, exceeds 14 percent. The 
113.15 	rate is subject to change on January 1 of each year.
113.16 	(b) If a person is the owner of one or more parcels of property on which taxes are 
113.17 	delinquent, and the delinquent taxes are more than 25 percent of the prior year's school 
113.18 	district levy, interest on the delinquent property taxes, penalties, and costs unpaid is payable 
113.19 	at twice the rate determined under paragraph (a) for the year.
113.20 	(c) A county board, by resolution, may establish an interest rate lower than the interest 
113.21 	rate determined under paragraph (a).

113.22 	EFFECTIVE DATE. This section is effective for property taxes, penalties, and costs 
113.23 	determined to be delinquent on or after January 1, 2024.

113.24 	Sec. 27. Minnesota Statutes 2022, section 282.261, subdivision 2, is amended to read:
113.25 		Subd. 2.Interest rate. (a) Except as provided under paragraph (b), the unpaid balance 
113.26 	on any repurchase contract approved by the county board is subject to interest at the rate 
113.27 	determined in section 279.03, subdivision 1a. The interest rate is subject to change each 
113.28 	year on the unpaid balance in the manner provided for rate changes in section 279.03, 
113.29 	subdivision 1a.
113.30 	(b) A county board, by resolution, or a county auditor, if delegated the responsibility to 
113.31 	administer tax-forfeited land assigned to the county board as provided under section 282.135, 
113.32 	may establish an interest rate lower than the interest rate determined under paragraph (a).

114.1 	EFFECTIVE DATE. This section is effective January 1, 2024.

114.2 	Sec. 28. Minnesota Statutes 2022, section 290A.03, subdivision 6, is amended to read:
114.3 		Subd. 6.Homestead. "Homestead" means the dwelling occupied as the claimant's 
114.4 	principal residence and so much of the land surrounding it, not exceeding ten acres, as is 
114.5 	reasonably necessary for use of the dwelling as a home and any other property used for 
114.6 	purposes of a homestead as defined in section 273.13, subdivision 22, except or section 
114.7 	273.13, subdivision 25, paragraph (e), clause (2). For agricultural land assessed as part of 
114.8 	a homestead pursuant to section 273.13, subdivision 23, "homestead" is limited to the house 
114.9 	and garage and immediately surrounding one acre of land. The homestead may be owned 
114.10 	or rented and may be a part of a multidwelling or multipurpose building and the land on 
114.11 	which it is built. A manufactured home, as defined in section 273.125, subdivision 8, or a 
114.12 	park trailer taxed as a manufactured home under section 168.012, subdivision 9, assessed 
114.13 	as personal property may be a dwelling for purposes of this subdivision.

114.14 	EFFECTIVE DATE. This section is effective for refund claims based on taxes payable 
114.15 	in 2025 and thereafter.

114.16 	Sec. 29. Minnesota Statutes 2022, section 290A.04, subdivision 2h, is amended to read:
114.17 		Subd. 2h.Additional refund. (a) If the gross property taxes payable on a homestead 
114.18 	increase more than 12 ten percent over the property taxes payable in the prior year on the 
114.19 	same property that is owned and occupied by the same owner on January 2 of both years, 
114.20 	and the amount of that increase is $100 or more, a claimant who is a homeowner shall be 
114.21 	allowed an additional refund equal to 60 percent of the amount of the increase over the 
114.22 	greater of 12 ten percent of the prior year's property taxes payable or $100. This subdivision 
114.23 	shall not apply to any increase in the gross property taxes payable attributable to 
114.24 	improvements made to the homestead after the assessment date for the prior year's taxes. 
114.25 	This subdivision shall not apply to any increase in the gross property taxes payable 
114.26 	attributable to the termination of valuation exclusions under section 273.11, subdivision 
114.27 	16.
114.28 	The maximum refund allowed under this subdivision is $1,000 $2,000.
114.29 	(b) For purposes of this subdivision "gross property taxes payable" means property taxes 
114.30 	payable determined without regard to the refund allowed under this subdivision.
115.1 	(c) In addition to the other proofs required by this chapter, each claimant under this 
115.2 	subdivision shall file with the property tax refund return a copy of the property tax statement 
115.3 	for taxes payable in the preceding year or other documents required by the commissioner.
115.4 	(d) Upon request, the appropriate county official shall make available the names and 
115.5 	addresses of the property taxpayers who may be eligible for the additional property tax 
115.6 	refund under this section. The information shall be provided on a magnetic computer disk. 
115.7 	The county may recover its costs by charging the person requesting the information the 
115.8 	reasonable cost for preparing the data. The information may not be used for any purpose 
115.9 	other than for notifying the homeowner of potential eligibility and assisting the homeowner, 
115.10 	without charge, in preparing a refund claim.

115.11 	EFFECTIVE DATE. This section is effective for refund claims based on taxes payable 
115.12 	in 2024 and thereafter.

115.13 	Sec. 30. Minnesota Statutes 2022, section 290B.03, subdivision 1, is amended to read:
115.14 		Subdivision 1.Program qualifications. The qualifications for the senior citizens' 
115.15 	property tax deferral program are as follows:
115.16 	(1) the property must be owned and occupied as a homestead by a person 65 years of 
115.17 	age or older. In the case of a married couple, at least one of the spouses must be at least 65 
115.18 	years old at the time the first property tax deferral is granted, regardless of whether the 
115.19 	property is titled in the name of one spouse or both spouses, or titled in another way that 
115.20 	permits the property to have homestead status, and the other spouse must be at least 62 years 
115.21 	of age;
115.22 	(2) the total household income of the qualifying homeowners, as defined in section 
115.23 	290A.03, subdivision 5, for the calendar year preceding the year of the initial application 
115.24 	may not exceed $60,000 $96,000;
115.25 	(3) the homestead must have been owned and occupied as the homestead of at least one 
115.26 	of the qualifying homeowners for at least 15 five years prior to the year the initial application 
115.27 	is filed;
115.28 	(4) there are no state or federal tax liens or judgment liens on the homesteaded property;
115.29 	(5) there are no mortgages or other liens on the property that secure future advances, 
115.30 	except for those subject to credit limits that result in compliance with clause (6); and
115.31 	(6) the total unpaid balances of debts secured by mortgages and other liens on the 
115.32 	property, including unpaid and delinquent special assessments and interest and any delinquent 
116.1 	property taxes, penalties, and interest, but not including property taxes payable during the 
116.2 	year or debts secured by a residential PACE lien, as defined in section 216C.435, subdivision 
116.3 	10d, does not exceed 75 percent of the assessor's estimated market value for the year.

116.4 	EFFECTIVE DATE. This section is effective for applications for deferral of taxes 
116.5 	payable in 2024 and thereafter.

116.6 	Sec. 31. Minnesota Statutes 2022, section 290B.04, subdivision 3, is amended to read:
116.7 		Subd. 3.Excess-income certification by taxpayer. A taxpayer whose initial application 
116.8 	has been approved under subdivision 2 shall notify the commissioner of revenue in writing 
116.9 	by July 1 if the taxpayer's household income for the preceding calendar year exceeded 
116.10 	$60,000 $96,000. The certification must state the homeowner's total household income for 
116.11 	the previous calendar year. No property taxes may be deferred under this chapter in any 
116.12 	year following the year in which a program participant filed or should have filed an 
116.13 	excess-income certification under this subdivision, unless the participant has filed a 
116.14 	resumption of eligibility certification as described in subdivision 4.

116.15 	EFFECTIVE DATE. This section is effective for applications for deferral of taxes 
116.16 	payable in 2024 and thereafter.

116.17 	Sec. 32. Minnesota Statutes 2022, section 290B.04, subdivision 4, is amended to read:
116.18 		Subd. 4.Resumption of eligibility certification by taxpayer. A taxpayer who has 
116.19 	previously filed an excess-income certification under subdivision 3 may resume program 
116.20 	participation if the taxpayer's household income for a subsequent year is $60,000 $96,000
116.21 	or less. If the taxpayer chooses to resume program participation, the taxpayer must notify 
116.22 	the commissioner of revenue in writing by July 1 of the year following a calendar year in 
116.23 	which the taxpayer's household income is $60,000 $96,000 or less. The certification must 
116.24 	state the taxpayer's total household income for the previous calendar year. Once a taxpayer 
116.25 	resumes participation in the program under this subdivision, participation will continue until 
116.26 	the taxpayer files a subsequent excess-income certification under subdivision 3 or until 
116.27 	participation is terminated under section 290B.08, subdivision 1.

116.28 	EFFECTIVE DATE. This section is effective for applications for deferral of taxes 
116.29 	payable in 2024 and thereafter.

116.30 	Sec. 33. Minnesota Statutes 2022, section 290B.05, subdivision 1, is amended to read:
116.31 		Subdivision 1.Determination by commissioner. The commissioner shall determine 
116.32 	each qualifying homeowner's "annual maximum property tax amount" following approval 
117.1 	of the homeowner's initial application and following the receipt of a resumption of eligibility 
117.2 	certification. The "annual maximum property tax amount" equals three percent of the 
117.3 	homeowner's total household income for the year preceding either the initial application or 
117.4 	the resumption of eligibility certification, whichever is applicable. Following approval of 
117.5 	the initial application, the commissioner shall determine the qualifying homeowner's 
117.6 	"maximum allowable deferral." No tax may be deferred relative to the appropriate assessment 
117.7 	year for any homeowner whose total household income for the previous year exceeds 
117.8 	$60,000 $96,000. No tax shall be deferred in any year in which the homeowner does not 
117.9 	meet the program qualifications in section 290B.03. The maximum allowable total deferral 
117.10 	is equal to 75 percent of the assessor's estimated market value for the year, less the balance 
117.11 	of any mortgage loans and other amounts secured by liens against the property at the time 
117.12 	of application, including any unpaid and delinquent special assessments and interest and 
117.13 	any delinquent property taxes, penalties, and interest, but not including property taxes 
117.14 	payable during the year.

117.15 	EFFECTIVE DATE. This section is effective for applications for deferral of taxes 
117.16 	payable in 2024 and thereafter.

117.17 	Sec. 34. Minnesota Statutes 2022, section 383E.21, is amended to read:
117.18 	383E.21 COUNTYWIDE PUBLIC SAFETY IMPROVEMENTS AND 
117.19 	EQUIPMENT; BONDING AND TAX LEVIES.
117.20 		Subdivision 1.Authority to levy property taxes and incur debt. (a) To finance the 
117.21 	cost of designing, constructing, and acquiring countywide public safety improvements and 
117.22 	equipment, including personal property, benefiting both Anoka County and the municipalities 
117.23 	located within Anoka County, the governing body of Anoka County may levy property 
117.24 	taxes for public safety improvements and equipment, and issue:
117.25 	(1) capital improvement bonds under the provisions of section 373.40 as if the 
117.26 	infrastructure and equipment qualified as a "capital improvement" within the meaning of 
117.27 	section 373.40, subdivision 1, paragraph (b); and
117.28 	(2) capital notes under the provisions of section 373.01, subdivision 3, as if the equipment 
117.29 	qualified as "capital equipment" within the meaning of section 373.01, subdivision 3. 
117.30 	Personal property acquired with the proceeds of the bonds or capital notes issued under this 
117.31 	section must have an expected useful life at least as long as the term of debt.
117.32 	(b) The outstanding principal amount of the bonds and the capital notes issued under 
117.33 	this section may not exceed $8,000,000 at any time. Any bonds or notes issued pursuant to 
118.1 	this section must only be issued after approval by a majority vote of the Anoka County Joint 
118.2 	Law Enforcement Council, a joint powers board.
118.3 		Subd. 2.Treatment of levy. (a) Anoka County shall not include any taxes levied under 
118.4 	this section in its levy certified under section 275.07, subdivision 1, paragraph (a). Anoka 
118.5 	County shall separately certify taxes levied under this section to the county auditor.
118.6 	(b) Notwithstanding sections 275.065, subdivision 3, and 276.04, the county may report 
118.7 	the tax attributable to any levy to fund public safety capital improvements or equipment 
118.8 	projects approved by the Anoka County Joint Law Enforcement Council or pay principal 
118.9 	and interest on bonds or notes issued under this section as a separate line item on the proposed 
118.10 	property tax notice and the property tax statement.
118.11 		Subd. 3.Expiration. This section expires on December 31, 2023 2033. The county may 
118.12 	not issue a bond or note under this section with a maturity or payment date after the expiration 
118.13 	date of this section. No property tax may be levied under this section for taxes payable in 
118.14 	a calendar year after the calendar year in which this section expires. Expiration of this section 
118.15 	does not affect the obligation to pay or the authority to collect taxes levied under this section 
118.16 	before its expiration.

118.17 	EFFECTIVE DATE. This section is effective the day after the governing body of 
118.18 	Anoka County and its chief clerical officer comply with the requirements of Minnesota 
118.19 	Statutes, section 645.021, subdivisions 2 and 3.

118.20 	Sec. 35. Minnesota Statutes 2022, section 473F.02, subdivision 2, is amended to read:
118.21 		Subd. 2.Area. "Area" means the territory included within the boundaries of Anoka, 
118.22 	Carver, Dakota excluding the city of Northfield, Hennepin, Ramsey, Scott excluding the 
118.23 	city of New Prague, and Washington Counties metropolitan area as defined in section 
118.24 	473.121, subdivision 2, excluding lands constituting a major or an intermediate airport as 
118.25 	defined under section 473.625.

118.26 	EFFECTIVE DATE; APPLICATION. This section is effective for taxes payable in 
118.27 	2024 and thereafter and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
118.28 	Scott, and Washington.

118.29 	Sec. 36. Minnesota Statutes 2022, section 473F.02, subdivision 8, is amended to read:
118.30 		Subd. 8.Municipality. "Municipality" means a city, town, or township located in whole 
118.31 	or part within the area, but not the cities of New Prague or Northfield as defined in 
118.32 	subdivision 2. If a municipality is located partly within and partly without the area, the 
119.1 	references in sections 473F.01 to 473F.13 to property or any portion thereof subject to 
119.2 	taxation or taxing jurisdiction within the municipality are to such property or portion thereof 
119.3 	as is located in that portion of the municipality within the area, except that the fiscal capacity 
119.4 	of such a municipality shall be computed upon the basis of the valuation and population of 
119.5 	the entire municipality.
119.6 	A municipality shall be excluded from the area if its municipal comprehensive zoning 
119.7 	and planning policies conscientiously exclude most commercial-industrial development, 
119.8 	for reasons other than preserving an agricultural use. The Metropolitan Council and the 
119.9 	commissioner of revenue shall jointly make this determination annually and shall notify 
119.10 	those municipalities that are ineligible to participate in the tax base sharing program provided 
119.11 	in this chapter for the following year.

119.12 	EFFECTIVE DATE; APPLICATION. This section is effective for taxes payable in 
119.13 	2024 and thereafter and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
119.14 	Scott, and Washington.

119.15 	Sec. 37. NORTHWEST MINNESOTA MULTI-COUNTY HOUSING AND 
119.16 	REDEVELOPMENT AUTHORITY; LEVY AUTHORITY.
 119.17 	Notwithstanding any law to the contrary, Laws 2008, chapter 366, article 5, section 33, 
119.18 	the effective date, as amended by Laws 2013, chapter 143, article 4, section 35, and Laws 
119.19 	2019, First Special Session chapter 6, article 4, section 31, is effective for taxes levied in 
119.20 	2008, payable in 2009, and is repealed effective for taxes levied in 2033, payable in 2034, 
119.21 	and thereafter.

119.22 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
119.23 	Northwest Minnesota Multi-County Housing and Redevelopment Authority and its chief 
119.24 	clerical officer comply with the requirements of Minnesota Statutes, section 645.021, 
119.25 	subdivisions 2 and 3.

119.26 	Sec. 38. CLASS 4D(1); CLASS-RATE REDUCTION PROPERTY TAX SAVINGS 
119.27 	REPORT.
 119.28 	(a) By November 1, 2025, each county must identify ten properties located within the 
119.29 	county with the greatest number of units classified as class 4d(1) under Minnesota Statutes, 
119.30 	section 273.13, subdivision 25. After identifying each property, the county must contact 
119.31 	and survey each property owner as to how each owner used property tax savings resulting 
119.32 	from the class rate change made to property classified as class 4d(1) under Minnesota 
119.33 	Statutes, section 273.13, subdivision 25, beginning with property taxes payable in 2025.
120.1 	(b) By March 15, 2026, each county shall issue a report to the commissioner of revenue 
120.2 	and to the legislative committees with jurisdiction over taxes and property taxes indicating 
120.3 	how each surveyed property owner used property tax savings resulting from the class 4d(1) 
120.4 	class rate change. The report shall include uses identified by type, including but not limited 
120.5 	to property maintenance, property security, property improvements, property operations, 
120.6 	rent stabilization, and increases in the property's capital expenditure fund balance.

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

120.8 	ARTICLE 4
120.9 	PROPERTY TAX AIDS

120.10 	Section 1. Minnesota Statutes 2022, section 273.1392, is amended to read:
120.11 	273.1392 PAYMENT; SCHOOL DISTRICTS.
120.12 	The amounts of bovine tuberculosis credit reimbursements under section 273.113; 
120.13 	conservation tax credits under section 273.119; disaster or emergency reimbursement under 
120.14 	sections 273.1231 to 273.1235; agricultural credits under sections 273.1384 and 273.1387; 
120.15 	aids and credits under section 273.1398; enterprise zone property credit payments under 
120.16 	section 469.171; and metropolitan agricultural preserve reduction under section 473H.10; 
120.17 	and electric generation transition aid under section 477A.24 for school districts, shall be 
120.18 	certified to the Department of Education by the Department of Revenue. The amounts so 
120.19 	certified shall be paid according to section 127A.45, subdivisions 9, 10, and 13.

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

120.21 	Sec. 2. Minnesota Statutes 2022, section 477A.011, is amended by adding a subdivision 
120.22 	to read:
120.23 		Subd. 3b.Population age 65 and over. "Population age 65 and over" means the 
120.24 	population age 65 and over established as of July 15 in an aid calculation year by the most 
120.25 	recent federal census, by a special census conducted under contract with the United States 
120.26 	Bureau of the Census, by a population estimate made by the Metropolitan Council, or by a 
120.27 	population estimate of the state demographer made pursuant to section 4A.02, whichever 
120.28 	is the most recent as to the stated date of the count or estimate for the preceding calendar 
120.29 	year and which has been certified to the commissioner of revenue on or before July 15 of 
120.30 	the aid calculation year. A revision to an estimate or count is effective for these purposes 
120.31 	only if certified to the commissioner on or before July 15 of the aid calculation year. Clerical 
120.32 	errors in the certification or use of estimates and counts established as of July 15 in the aid 
121.1 	calculation year are subject to correction within the time periods allowed under section 
121.2 	477A.014.

121.3 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
121.4 	and thereafter.

121.5 	Sec. 3. Minnesota Statutes 2022, section 477A.011, is amended by adding a subdivision 
121.6 	to read:
121.7 		Subd. 3c.Transformed population. "Transformed population" means the logarithm to 
121.8 	the base 10 of the population.

121.9 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
121.10 	and thereafter.

121.11 	Sec. 4. Minnesota Statutes 2022, section 477A.011, subdivision 34, is amended to read:
121.12 		Subd. 34.City revenue need. (a) For a city with a population equal to or greater than 
121.13 	10,000, "city revenue need" is 1.15 times the sum of (1) 4.59 8.572 times the pre-1940 
121.14 	housing percentage; plus (2) 0.622 times the percent of housing built between 1940 and 
121.15 	1970 11.494 times the city age index; plus (3) 169.415 times the jobs per capita 5.719 times 
121.16 	the commercial industrial utility percentage; plus (4) the sparsity adjustment 9.484 times 
121.17 	peak population decline; plus (5) 307.664 293.056.
121.18 	(b) For a city with a population equal to or greater than 2,500 and less than 10,000, "city 
121.19 	revenue need" is 1.15 times the sum of (1) 572.62 497.308; plus (2) 5.026 6.667 times the 
121.20 	pre-1940 housing percentage; minus plus (3) 53.768 times household size 9.215 times the 
121.21 	commercial industrial utility percentage; plus (4) 14.022 16.081 times peak population 
121.22 	decline; plus (5) the sparsity adjustment.
121.23 	(c) For a city with a population less than 2,500, "city revenue need" is the sum of (1) 
121.24 	410 196.487; plus (2) 0.367 220.877 times the city's transformed population over 100; plus 
121.25 	(3) the sparsity adjustment. The city revenue need for a city under this paragraph shall not 
121.26 	exceed 630 plus the city's sparsity adjustment.
121.27 	(d) For a city with a population of at least 2,500 but less than 3,000, the "city revenue 
121.28 	need" equals (1) the transition factor times the city's revenue need calculated in paragraph 
121.29 	(b); plus (2) 630 the city's revenue need calculated under the formula in paragraph (c) times 
121.30 	the difference between one and the transition factor. For a city with a population of at least 
121.31 	10,000 but less than 11,000, the "city revenue need" equals (1) the transition factor times 
121.32 	the city's revenue need calculated in paragraph (a); plus (2) the city's revenue need calculated 
122.1 	under the formula in paragraph (b) times the difference between one and the transition 
122.2 	factor. For purposes of the first sentence of this paragraph "transition factor" is 0.2 percent 
122.3 	times the amount that the city's population exceeds the minimum threshold. For purposes 
122.4 	of the second sentence of this paragraph, "transition factor" is 0.1 percent times the amount 
122.5 	that the city's population exceeds the minimum threshold.
122.6 	(e) The city revenue need cannot be less than zero.
122.7 	(f) For calendar year 2015 2024 and subsequent years, the city revenue need for a city, 
122.8 	as determined in paragraphs (a) to (e), is multiplied by the ratio of the annual implicit price 
122.9 	deflator for government consumption expenditures and gross investment for state and local 
122.10 	governments as prepared by the United States Department of Commerce, for the most 
122.11 	recently available year to the 2013 2022 implicit price deflator for state and local government 
122.12 	purchases.

122.13 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
122.14 	and thereafter.

122.15 	Sec. 5. Minnesota Statutes 2022, section 477A.011, is amended by adding a subdivision 
122.16 	to read:
122.17 		Subd. 46.City age index. "City age index" means 100 times the ratio of (1) the population 
122.18 	age 65 and over within the city, to (2) the population of the city.

122.19 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
122.20 	and thereafter.

122.21 	Sec. 6. Minnesota Statutes 2022, section 477A.011, is amended by adding a subdivision 
122.22 	to read:
122.23 		Subd. 47.Commercial industrial utility percentage. The "commercial industrial utility 
122.24 	percentage" for a city is 100 times the ratio of (1) the sum of the estimated market values 
122.25 	of all real and personal property in the city classified as class 3 under section 273.13, 
122.26 	subdivision 24, to (2) the total market value of all taxable real and personal property in the 
122.27 	city. The market values are the amounts computed before any adjustments for fiscal 
122.28 	disparities under section 276A.06 or 473F.08. The market values used for this subdivision 
122.29 	are not equalized.

122.30 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
122.31 	and thereafter.

123.1 	Sec. 7. Minnesota Statutes 2022, section 477A.0124, subdivision 2, is amended to read:
123.2 		Subd. 2.Definitions. (a) For the purposes of this section, the following terms have the 
123.3 	meanings given them.
123.4 	(b) "County program aid" means the sum of "county need aid," "county tax base 
123.5 	equalization aid," and "county transition aid."
123.6 	(c) "Age-adjusted population" means a county's population multiplied by the county age 
123.7 	index.
123.8 	(d) "County age index" means the percentage of the population age 65 and over within 
123.9 	the county divided by the percentage of the population age 65 and over within the state, 
123.10 	except that the age index for any county may not be greater than 1.8 nor less than 0.8.
123.11 	(e) "Population age 65 and over" means the population age 65 and over established as 
123.12 	of July 15 in an aid calculation year by the most recent federal census, by a special census 
123.13 	conducted under contract with the United States Bureau of the Census, by a population 
123.14 	estimate made by the Metropolitan Council, or by a population estimate of the state 
123.15 	demographer made pursuant to section 4A.02, whichever is the most recent as to the stated 
123.16 	date of the count or estimate for the preceding calendar year and which has been certified 
123.17 	to the commissioner of revenue on or before July 15 of the aid calculation year. A revision 
123.18 	to an estimate or count is effective for these purposes only if certified to the commissioner 
123.19 	on or before July 15 of the aid calculation year. Clerical errors in the certification or use of 
123.20 	estimates and counts established as of July 15 in the aid calculation year are subject to 
123.21 	correction within the time periods allowed under section 477A.014 has the meaning given 
123.22 	in section 477A.011, subdivision 3b.
123.23 	(f) "Part I crimes" means the three-year average annual number of Part I crimes reported 
123.24 	for each county by the Department of Public Safety for the most recent years available. By 
123.25 	July 1 of each year, the commissioner of public safety shall certify to the commissioner of 
123.26 	revenue the number of Part I crimes reported for each county for the three most recent 
123.27 	calendar years available.
123.28 	(g) "Households receiving Supplemental Nutrition Assistance Program (SNAP) benefits" 
123.29 	means the average monthly number of households receiving SNAP benefits for the three 
123.30 	most recent years for which data is available. By July 1 of each year, the commissioner of 
123.31 	human services must certify to the commissioner of revenue the average monthly number 
123.32 	of households in the state and in each county that receive SNAP benefits, for the three most 
123.33 	recent calendar years available.
124.1 	(h) "County net tax capacity" means the county's adjusted net tax capacity under section 
124.2 	273.1325.
124.3 	(i) "Group A offenses" means the annual number of Group A offenses under the National 
124.4 	Incident-Based Reporting System reported for each county by the Department of Public 
124.5 	Safety. By July 1 of each year, the commissioner of public safety shall certify to the 
124.6 	commissioner of revenue the number of Group A offenses reported for each county for the 
124.7 	three most recent full calendar years available.
124.8 	(j) "Adjusted offenses" means the county's average annual number of Group A offenses 
124.9 	for the three-year period ending with the second prior calendar year to the year in which 
124.10 	the aid is certified. For aids payable in 2024 and 2025 only, for the purpose of the three-year 
124.11 	average calculated under this paragraph, the commissioner must substitute the annual number 
124.12 	of Part I crimes for any year in which the annual number of Group A offenses is not available.

124.13 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
124.14 	and thereafter.

124.15 	Sec. 8. Minnesota Statutes 2022, section 477A.0124, subdivision 3, is amended to read:
124.16 		Subd. 3.County need aid. For 2005 and subsequent years, The money appropriated to 
124.17 	county need aid each calendar year shall be allocated as follows: 40 percent based on each 
124.18 	county's share of age-adjusted population, 40 percent based on each county's share of the 
124.19 	state total of households receiving SNAP benefits, and 20 percent based on each county's 
124.20 	share of the state total of Part I crimes adjusted offenses.

124.21 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
124.22 	and thereafter.

124.23 	Sec. 9. Minnesota Statutes 2022, section 477A.013, subdivision 8, is amended to read:
124.24 		Subd. 8.City formula aid. (a) For aids payable in 2018 2024 and thereafter, the formula 
124.25 	aid for a city is equal to the product of (1) the difference between its unmet need and its 
124.26 	certified aid in the previous year and before any aid adjustment under subdivision 13, and 
124.27 	(2) the aid gap percentage.
124.28 	(b) The applicable aid gap percentage must be calculated by the Department of Revenue 
124.29 	so that the total of the aid under subdivision 9 equals the total amount available for aid under 
124.30 	section 477A.03. The aid gap percentage must be the same for all cities subject to paragraph 
124.31 	(a). Data used in calculating aids to cities under sections 477A.011 to 477A.013 shall be 
124.32 	the most recently available data as of January 1 in the year in which the aid is calculated.

125.1 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
125.2 	and thereafter.

125.3 	Sec. 10. Minnesota Statutes 2022, section 477A.013, subdivision 9, is amended to read:
125.4 		Subd. 9.City aid distribution. (a) In calendar year 2018 2024 and thereafter, if a city's 
125.5 	certified aid before any aid adjustment under subdivision 13 for the previous year is less 
125.6 	than its current unmet need, the city shall receive an aid distribution equal to the sum of (1) 
125.7 	its certified aid in the previous year before any aid adjustment under subdivision 13, and 
125.8 	(2) the city formula aid under subdivision 8, and (3) its aid adjustment under subdivision 
125.9 	13.
125.10 	(b) For aids payable in 2020 only, no city's aid amount before any adjustment under 
125.11 	subdivision 13 may be less than its pay 2019 certified aid amount, less any aid adjustment 
125.12 	under subdivision 13 for that year. For aids payable in 2020 2024 and thereafter, if a city's 
125.13 	certified aid before any aid adjustment under subdivision 13 for the previous year is equal 
125.14 	to or greater than its current unmet need, the total aid for a city is equal to the greater of (1) 
125.15 	its unmet need plus any aid adjustment under subdivision 13, or (2) the amount it was 
125.16 	certified to receive in the previous year minus the sum of (i) any adjustment under subdivision 
125.17 	13 that was paid in the previous year but has expired, and (ii) the lesser of (i) $10 multiplied 
125.18 	by its population, or (ii) five percent of its net levy in the year prior to the aid distribution. 
125.19 	No city may have a total aid amount less than $0.

125.20 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
125.21 	and thereafter.

125.22 	Sec. 11. Minnesota Statutes 2022, section 477A.014, subdivision 1, is amended to read:
125.23 		Subdivision 1.Calculations and payments. (a) The commissioner of revenue shall 
125.24 	make all necessary calculations and make payments pursuant to sections 477A.013 and 
125.25 	477A.03 under this chapter directly to the affected taxing authorities political subdivisions
125.26 	annually. In addition, The commissioner shall notify the authorities political subdivisions
125.27 	of their aid amounts, as well as the computational factors used in making the calculations 
125.28 	for their authority, and those statewide total figures that are pertinent, before August 1 of 
125.29 	the year preceding the aid distribution year, unless a different date is specified.
125.30 	(b) For the purposes of this subdivision, aid is determined for a city or town based on 
125.31 	its city or town status as of June 30 of the year preceding the aid distribution year. If the 
125.32 	effective date for a municipal incorporation, consolidation, annexation, detachment, 
125.33 	dissolution, or township organization is on or before June 30 of the year preceding the aid 
126.1 	distribution year, such change in boundaries or form of government shall be recognized for 
126.2 	aid determinations for the aid distribution year. If the effective date for a municipal 
126.3 	incorporation, consolidation, annexation, detachment, dissolution, or township organization 
126.4 	is after June 30 of the year preceding the aid distribution year, such change in boundaries 
126.5 	or form of government shall not be recognized for aid determinations until the following 
126.6 	year.
126.7 		Subd. 1a.Adjustments to computational factors. (c) (a) Changes in boundaries or 
126.8 	form of government will may only be recognized for the purposes of this subdivision, to 
126.9 	the extent that, on or before July 15 of the aid calculation year: (1) changes in market values 
126.10 	are included in market values reported by assessors to the commissioner, and changes in 
126.11 	population and household size are included in their respective certifications to the 
126.12 	commissioner as referenced in section 477A.011 computational factors have been recertified 
126.13 	or otherwise reported in reliable form to the commissioner, or (2) an annexation information 
126.14 	report as provided in paragraph (d) (b) is received by the commissioner on or before July 
126.15 	15 of the aid calculation year. Revisions to estimates or data for use in recognizing changes 
126.16 	in boundaries or form of government are not effective for purposes of this subdivision unless 
126.17 	received by the commissioner on or before July 15 of the aid calculation year. Clerical errors 
126.18 	in the certification or use of estimates and data established as of July 15 in the aid calculation 
126.19 	year are subject to correction within the time periods allowed under subdivision 3.
126.20 	(d) (b) In the case of an annexation, an annexation information report may be completed 
126.21 	by the annexing jurisdiction and submitted to the commissioner for purposes of this 
126.22 	subdivision if the net tax capacity of annexed area for the assessment year preceding the 
126.23 	effective date of the annexation exceeds five percent of the city's net tax capacity for the 
126.24 	same year. The form and contents of the annexation information report shall be prescribed 
126.25 	by the commissioner. The commissioner shall change the net tax capacity, the population, 
126.26 	the population decline, the commercial industrial percentage, and the transformed population
126.27 	adjust the computational factors used to calculate aid under section 477A.013, subdivision 
126.28 	9, for the annexing jurisdiction only if the annexation information report provides data the 
126.29 	commissioner determines to be reliable for all of these factors used to compute city revenue 
126.30 	need for the annexing jurisdiction. The commissioner shall adjust the pre-1940 housing 
126.31 	percentage and household size only if the entire area of an existing city or town is annexed 
126.32 	or consolidated and only if reliable data is available for all of these factors used to compute 
126.33 	city revenue need for the annexing jurisdiction the entire annexed area.

126.34 	EFFECTIVE DATE. This section is effective July 1, 2023.

127.1 	Sec. 12. Minnesota Statutes 2022, section 477A.015, is amended to read:
127.2 	477A.015 PAYMENT DATES.
127.3 	(a) The commissioner of revenue shall make the payments of local government aid to 
127.4 	affected taxing authorities in two installments on July 20 and December 26 annually.
127.5 	(b) Notwithstanding paragraph (a), for aids payable in 2019 2025 only, the commissioner 
127.6 	of revenue shall make payments of the aid payable under section 477A.013, subdivision 9, 
127.7 	in three installments as follows: (1) 14.6 12.39 percent of the aid shall be paid on June 15, 
127.8 	2019 March 20, 2025; (2) 35.4 37.61 percent of the aid shall be paid on July 20, 2019 2025; 
127.9 	and (3) 50 percent of the aid shall be paid on December 26, 2019 2025.
127.10 	(c) When the commissioner of public safety determines that a local government has 
127.11 	suffered financial hardship due to a natural disaster, the commissioner of public safety shall 
127.12 	notify the commissioner of revenue, who shall make payments of aids under sections 
127.13 	477A.011 to 477A.014, which are otherwise due on December 26, as soon as is practical 
127.14 	after the determination is made but not before July 20.
127.15 	(d) The commissioner may pay all or part of the payments of aids under sections 
127.16 	477A.011 to 477A.014, which are due on December 26 at any time after August 15 if a 
127.17 	local government requests such payment as being necessary for meeting its cash flow needs.

127.18 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
127.19 	and thereafter.

127.20 	Sec. 13. Minnesota Statutes 2022, section 477A.03, subdivision 2a, is amended to read:
127.21 		Subd. 2a.Cities. For aids payable in 2016 and 2017, the total aid paid under section 
127.22 	477A.013, subdivision 9, is $519,398,012. For aids payable in 2018 and 2019, the total aid 
127.23 	paid under section 477A.013, subdivision 9, is $534,398,012. For aids payable in 2020, the 
127.24 	total aid paid under section 477A.013, subdivision 9, is $560,398,012. For aids payable in 
127.25 	2021 and thereafter through 2023, the total aid payable under section 477A.013, subdivision 
127.26 	9, is $564,398,012. For aids payable in 2024 and thereafter, the total aid payable under 
127.27 	section 477A.013, subdivision 9, is $604,398,012.

127.28 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
127.29 	and thereafter.

128.1 	Sec. 14. Minnesota Statutes 2022, section 477A.03, subdivision 2b, is amended to read:
128.2 		Subd. 2b.Counties. (a) For aids payable in 2018 and 2019, the total aid payable under 
128.3 	section 477A.0124, subdivision 3, is $103,795,000, of which $3,000,000 shall be allocated 
128.4 	as required under Laws 2014, chapter 150, article 4, section 6. For aids payable in 2020, 
128.5 	the total aid payable under section 477A.0124, subdivision 3, is $116,795,000, of which 
128.6 	$3,000,000 shall be allocated as required under Laws 2014, chapter 150, article 4, section 
128.7 	6. For aids payable in 2021 through 2024 2023, the total aid payable under section 
128.8 	477A.0124, subdivision 3, is $118,795,000, of which $3,000,000 shall be allocated as 
128.9 	required under Laws 2014, chapter 150, article 4, section 6. For aids payable in 2024, the 
128.10 	total aid payable under section 477A.0124, subdivision 3, is $136,496,026, of which 
128.11 	$3,000,000 shall be allocated as required under Laws 2014, chapter 150, article 4, section 
128.12 	6. For aids payable in 2025 and thereafter, the total aid payable under section 477A.0124, 
128.13 	subdivision 3, is $115,795,000 $133,496,026. On or before the first installment date provided 
128.14 	in section 477A.015, paragraph (a), $500,000 of this appropriation shall be transferred each 
128.15 	year by the commissioner of revenue to the Board of Public Defense for the payment of 
128.16 	services under section 611.27. Any transferred amounts not expended or encumbered in a 
128.17 	fiscal year shall be certified by the Board of Public Defense to the commissioner of revenue 
128.18 	on or before October 1 and shall be included in the next certification of county need aid.
128.19 	(b) For aids payable in 2018 and 2019, the total aid under section 477A.0124, subdivision 
128.20 	4, is $130,873,444. For aids payable in 2020, the total aid under section 477A.0124, 
128.21 	subdivision 4, is $143,873,444. For aids payable in 2021 and thereafter through 2023, the 
128.22 	total aid under section 477A.0124, subdivision 4, is $145,873,444. For aids payable in 2024 
128.23 	and thereafter, the total aid under section 477A.0124, subdivision 4, is $168,172,418. The 
128.24 	commissioner of revenue shall transfer to the Legislative Budget Office $207,000 annually 
128.25 	for the cost of preparation of local impact notes as required by section 3.987, and other local 
128.26 	government activities. The commissioner of revenue shall transfer to the commissioner of 
128.27 	education $7,000 annually for the cost of preparation of local impact notes for school districts 
128.28 	as required by section 3.987. The commissioner of revenue shall deduct the amounts 
128.29 	transferred under this paragraph from the appropriation under this paragraph. The amounts 
128.30 	transferred are appropriated to the Legislative Coordinating Commission and the 
128.31 	commissioner of education respectively.

128.32 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
128.33 	and thereafter.

129.1 	Sec. 15. Minnesota Statutes 2022, section 477A.12, subdivision 1, is amended to read:
129.2 		Subdivision 1.Types of land; payments.  The following amounts are annually 
129.3 	appropriated to the commissioner of natural resources from the general fund for transfer to 
129.4 	the commissioner of revenue. The commissioner of revenue shall pay the transferred funds 
129.5 	to counties as required by sections 477A.11 to 477A.14. The amounts, based on the acreage 
129.6 	as of July 1 of each year prior to the payment year, are:
129.7 	(1) $5.133 multiplied by the total number of acres of acquired natural resources land or, 
129.8 	at the county's option three-fourths of one percent of the appraised value of all acquired 
129.9 	natural resources land in the county, whichever is greater;
129.10 	(2) $5.133, multiplied by the total number of acres of transportation wetland or, at the 
129.11 	county's option, three-fourths of one percent of the appraised value of all transportation 
129.12 	wetland in the county, whichever is greater;
129.13 	(3) $5.133, multiplied by the total number of acres of wildlife management land, or, at 
129.14 	the county's option, three-fourths of one percent of the appraised value of all wildlife 
129.15 	management land in the county, whichever is greater;
129.16 	(4) 50 percent of the dollar amount as determined under clause (1), multiplied by the 
129.17 	number of acres of military refuge land in the county;
129.18 	(5) $2 $2.25, multiplied by the number of acres of county-administered other natural 
129.19 	resources land in the county;
129.20 	(6) $5.133, multiplied by the total number of acres of land utilization project land in the 
129.21 	county;
129.22 	(7) $2 $2.25, multiplied by the number of acres of commissioner-administered other 
129.23 	natural resources land in the county; and
129.24 	(8) without regard to acreage, and notwithstanding the rules adopted under section 
129.25 	84A.55, $300,000 for local assessments under section 84A.55, subdivision 9, that shall be 
129.26 	divided and distributed to the counties containing state-owned lands within a conservation 
129.27 	area in proportion to each county's percentage of the total annual ditch assessments.

129.28 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2024.

129.29 	Sec. 16. Minnesota Statutes 2022, section 477A.16, subdivision 2, is amended to read:
129.30 		Subd. 2.Aid eligibility; payment. (a) If the net tax capacity differential of the local 
129.31 	unit exceeds four percent of its modified net tax capacity, the local unit is eligible for 
129.32 	transition aid computed under paragraph (b).
130.1 	(b) For aids payable in 2010 and thereafter, transition aid under this section for an eligible 
130.2 	local unit equals (1) the current year net tax capacity differential for taxes payable in the 
130.3 	year preceding the aid distribution year, times (2) the jurisdiction's tax rate for taxes payable 
130.4 	in 2008.
130.5 	(c) The commissioner of revenue shall compute the amount of transition aid payable to 
130.6 	each local unit under this section. On or before August 1 of each year, the commissioner 
130.7 	shall certify the amount of transition aid computed for aids payable in the following year 
130.8 	for each recipient local unit. The commissioner shall pay transition aid to local units annually 
130.9 	at the times provided in section 477A.015.
130.10 	(d) Notwithstanding paragraph (a), beginning with aids payable in 2024, a local unit is 
130.11 	not eligible for transition aid if the local unit was not eligible for transition aid in the previous 
130.12 	year.
130.13 	(e) Notwithstanding paragraph (b), transition aid under this section for an eligible local 
130.14 	unit must be reduced by:
130.15 	(1) 25 percent of the amount calculated under paragraph (b) for aid payable in 2024;
130.16 	(2) 50 percent of the amount calculated under paragraph (b) for aid payable in 2025; 
130.17 	and
130.18 	(3) 75 percent of the amount calculated under paragraph (b) for aid payable in 2026.
130.19 	(f) Aid distributions under this section expire after aids payable in 2026 have been 
130.20 	distributed.

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

130.22 	Sec. 17. [477A.23] SOIL AND WATER CONSERVATION DISTRICT AID.
130.23 		Subdivision 1.Definitions. For purposes of this section, the following terms have the 
130.24 	meanings given:
130.25 	(1) "nonpublic land" means land, excluding public land and Tribal land;
130.26 	(2) "public land" means land that:
130.27 	(i) is owned by the federal government, the state, or a county; and
130.28 	(ii) is administered by the state or a county, but not including land administered by the 
130.29 	Minnesota State Colleges and Universities;
131.1 	(3) "Tribal land" means land contained within the boundary of an American Indian Tribal 
131.2 	subdivision of a federally recognized Indian Tribe located in Minnesota, according to the 
131.3 	most recent data available from the United States Bureau of the Census;
131.4 	(4) "population" means the population estimated as of June 1 in an aid calculation year 
131.5 	by the most recent federal census;
131.6 	(5) "transformed population" means the cube root of population; and
131.7 	(6) "soil and water conservation district" means a district under chapter 103C that is 
131.8 	implementing the duties under that chapter as determined by the Board of Water and Soil 
131.9 	Resources as of the date the board provides the certification to the commissioner of revenue 
131.10 	required by subdivision 3. For purposes of this section, soil and water conservation district 
131.11 	includes a county exercising the duties and authorities of a soil and water conservation 
131.12 	district under section 383A.606 or 383B.761.
131.13 		Subd. 2.Distribution. The Board of Water and Soil Resources must calculate the amount 
131.14 	of aid to be distributed to the certified soil and water conservation districts from the 
131.15 	appropriation in subdivision 6 as follows:
131.16 	(1) 70 percent of the appropriation must be distributed equally among the districts;
131.17 	(2) 20 percent of the appropriation must be distributed proportionally among the districts 
131.18 	according to the amount of nonpublic land located in a district as compared to the amount 
131.19 	of nonpublic land in all districts; and
131.20 	(3) ten percent of the appropriation must be distributed proportionally among the districts 
131.21 	according to the transformed population of the district as compared to the total transformed 
131.22 	population of all districts.
131.23 		Subd. 3.Certification to commissioner. On or before June 1 each year, the Board of 
131.24 	Water and Soil Resources must certify to the commissioner of revenue the soil and water 
131.25 	conservation districts that will receive a payment under this section and the amount of each 
131.26 	payment.
131.27 		Subd. 4.Use of proceeds. (a) Notwithstanding section 103C.401, subdivision 2, a soil 
131.28 	and water conservation district that receives a distribution under this section must use the 
131.29 	proceeds to implement chapter 103C and other duties and services prescribed by statute.
131.30 	(b) The board of each soil and water conservation district must establish, by resolution, 
131.31 	annual guidelines for using payments received under this section. Current year guidelines 
131.32 	and guidelines from the year immediately prior must be posted on the district website.
132.1 	(c) A soil and water conservation district that receives a payment under this section may 
132.2 	appropriate any portion of the payment to a governmental unit with which the district has 
132.3 	a cooperative agreement under section 103C.231. Any payment received under this section 
132.4 	and appropriated by the district must be used as required by this section.
132.5 		Subd. 5.Payments. The commissioner of revenue must distribute soil and water 
132.6 	conservation district aid in the same manner and at the same times as aid payments provided 
132.7 	under section 477A.015.
132.8 		Subd. 6.Appropriation. $12,723,000 is annually appropriated from the general fund 
132.9 	to the commissioner of revenue to make the payments required under this section.
132.10 		Subd. 7.Aid amount corrections. If, due to a clerical error, the amount certified by the 
132.11 	Board of Water and Soil Resources to the commissioner of revenue is less than the amount 
132.12 	to which the district is entitled under this section, the Board of Water and Soil Resources 
132.13 	shall recertify the correct amount to the commissioner of revenue and communicate the 
132.14 	error and the corrected amount to the affected soil and water conservation district as soon 
132.15 	as practical after the error is discovered.

132.16 	EFFECTIVE DATE. This section is effective beginning with aids payable in calendar 
132.17 	year 2023 and thereafter.

132.18 	Sec. 18. [477A.24] ELECTRIC GENERATION TRANSITION AID.
132.19 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
132.20 	the meanings given.
132.21 	(b) "Electric generating unit" means a single generating unit at an electric generating 
132.22 	plant powered by coal, nuclear, or natural gas.
132.23 	(c) "Electric generation property" means taxable property of an electric generating plant 
132.24 	owned by a public utility, as defined in section 216B.02, subdivision 4, that is powered by 
132.25 	coal, nuclear, or natural gas and located in an eligible taxing jurisdiction.
132.26 	(d) "Eligible taxing jurisdiction" means a county, home rule charter or statutory city, 
132.27 	town, or school district.
132.28 	(e) "Unit base year" means the assessment year in which the assessed value of electric 
132.29 	generation property is reduced due to the retirement of the electric generating unit.
132.30 	(f) "Unit differential" means (1) the tax capacity of electric generation property in the 
132.31 	assessment year preceding the unit base year, minus (2) the tax capacity of electric generation 
132.32 	property in the unit base year. The unit differential may not be less than zero. The unit 
133.1 	differential equals zero if the tax capacity of electric generation property in the eligible 
133.2 	taxing jurisdiction in the assessment year preceding the unit base year is less than four 
133.3 	percent of the total net tax capacity of the eligible taxing jurisdiction in that year, as adjusted 
133.4 	under section 473F.08, subdivision 2, or 276A.06, subdivision 2, as applicable, except that, 
133.5 	in an eligible taxing jurisdiction with multiple electric generating units, only the unit 
133.6 	differential calculated upon the first retirement of an electric generating unit in that 
133.7 	jurisdiction following the effective date of this section is subject to the reduction under this 
133.8 	sentence.
133.9 		Subd. 2.Required notification. Notwithstanding the requirements of Minnesota Rules, 
133.10 	chapter 8100, a public utility must notify the commissioner when the public utility expects 
133.11 	to retire an electric generating unit and remove that unit from the property tax base. The 
133.12 	notification must be in the form and manner determined by the commissioner, include 
133.13 	information required by the commissioner to calculate transition aid under this section, and 
133.14 	be filed together with the reports required under section 273.371.
133.15 		Subd. 3.Unit transition amount. (a) The initial unit transition amount equals the product 
133.16 	of (1) the unit differential, times (2) the jurisdiction's tax rate for taxes payable in the unit 
133.17 	base year.
133.18 	(b) The unit transition amount for the year following the unit base year, or in the year 
133.19 	as provided under subdivision 7, equals the initial unit transition amount. Unit transition 
133.20 	amounts in subsequent years must be reduced each year by an amount equal to five percent 
133.21 	of the initial unit transition amount. If the unit transition amount attributable to any unit is 
133.22 	less than $5,000 in any year, the unit transition amount for that unit equals zero.
133.23 		Subd. 4.Electric generation transition aid. Electric generation transition aid for an 
133.24 	eligible taxing jurisdiction equals the sum of the unit transition amounts for that jurisdiction.
133.25 		Subd. 5.Aid elimination. (a) Notwithstanding subdivision 4, beginning for aid in the 
133.26 	year after the year in which the jurisdiction first qualified for aid, aid for an eligible taxing 
133.27 	jurisdiction equals zero if the commissioner determines that the eligible taxing jurisdiction's 
133.28 	total net tax capacity in the assessment year preceding the aid calculation year is greater 
133.29 	than the product of:
133.30 	(1) 90 percent of the jurisdiction's total net tax capacity in the assessment year preceding 
133.31 	the aid calculation year in which the jurisdiction first qualified for aid under this section; 
133.32 	times
133.33 	(2) the greater of one or the ratio of (i) the statewide total net tax capacity of real and 
133.34 	personal property in the assessment year preceding the aid calculation year to (ii) the 
134.1 	statewide total net tax capacity of real and personal property in the assessment year preceding 
134.2 	the aid calculation year in which the jurisdiction first qualified for aid under this section.
134.3 	(b) For the purposes of this subdivision, "net tax capacity" means net tax capacity as 
134.4 	adjusted under section 473F.08, subdivision 2, or 276A.06, subdivision 2, as applicable.
134.5 	(c) If aid to a jurisdiction attributable to a previous unit retirement has been eliminated 
134.6 	under this subdivision, the jurisdiction may qualify for aid under this section for subsequent 
134.7 	unit retirements.
134.8 		Subd. 6.Commissioner's duties; payment schedule. (a) The commissioner of revenue 
134.9 	shall compute the amount of electric generation transition aid payable to each jurisdiction 
134.10 	under this section. The portion of aid to an eligible taxing jurisdiction that consists of the 
134.11 	initial unit transition amount under subdivision 3, paragraph (a), must be certified on or 
134.12 	before May 1 in the year the aid is payable. The portion of aid to an eligible taxing 
134.13 	jurisdiction that consists of the unit transition amount under subdivision 3, paragraph (b), 
134.14 	must be certified by August 1 of each year for aids payable in the following calendar year. 
134.15 	The commissioner shall pay aid to each jurisdiction other than school districts annually at 
134.16 	the times provided in section 477A.015. Aids to school districts must be certified to the 
134.17 	commissioner of education and paid under section 273.1392.
134.18 	(b) The commissioner of revenue may require counties to provide any data that the 
134.19 	commissioner deems necessary to administer this section.
134.20 		Subd. 7.Aid for prior unit retirements. An electric generating unit with a unit base 
134.21 	year after 2016 but before 2023 must be counted for the purpose of calculating aid under 
134.22 	this section. For a unit eligible to be counted under this subdivision and for the purpose of 
134.23 	the schedule of amounts under subdivision 3, paragraph (b), the unit base year is 2023.
134.24 		Subd. 8.Appropriation. An amount sufficient to make the aid payments required by 
134.25 	this section to eligible taxing jurisdictions other than school districts is annually appropriated 
134.26 	from the general fund to the commissioner of revenue. An amount sufficient to make the 
134.27 	aid payments required by this section for school districts is annually appropriated from the 
134.28 	general fund to the commissioner of education.

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

134.30 	Sec. 19. [477A.31] MAHNOMEN PROPERTY TAX REIMBURSEMENT AID.
134.31 		Subdivision 1.Aid amounts. (a) The commissioner of revenue shall make reimbursement 
134.32 	aid payments to compensate for the loss of property tax revenue related to the trust conversion 
134.33 	application of the Shooting Star Casino. The commissioner shall pay the county of 
135.1 	Mahnomen, $1,010,000; the city of Mahnomen, $210,000; and Independent School District 
135.2 	No. 432, Mahnomen, $140,000.
135.3 	(b) The payments shall be made annually on July 20.
135.4 		Subd. 2.Appropriation. An amount sufficient to pay reimbursement aid under this 
135.5 	section is annually appropriated from the general fund to the commissioner of revenue.

135.6 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
135.7 	and thereafter.

135.8 	Sec. 20. Laws 2006, chapter 259, article 11, section 3, as amended by Laws 2008, chapter 
135.9 	154, article 1, section 4, and Laws 2013, chapter 143, article 2, section 33, is amended to 
135.10 	read:
135.11 	Sec. 3. MAHNOMEN COUNTY; COUNTY, CITY, SCHOOL DISTRICT, 
135.12 	PROPERTY TAX REIMBURSEMENT.
 135.13 		Subdivision 1. Aid appropriation. (a) $1,200,000 is appropriated annually from the 
135.14 	general fund to the commissioner of revenue to be used to make payments to compensate 
135.15 	for the loss of property tax revenue related to the trust conversion application of the Shooting 
135.16 	Star Casino. The commissioner shall pay the county of Mahnomen, $900,000; the city of 
135.17 	Mahnomen, $160,000; and Independent School District No. 432, Mahnomen, $140,000. 
135.18 	The payments shall be made on July 20, of 2013 and each subsequent year.
135.19 	(b) This section expires after aids payable year 2023.

135.20 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
135.21 	and thereafter.

135.22 	Sec. 21. 2021 AID PENALTY FORGIVENESS.
 135.23 		Subdivision 1.City of Echo. Notwithstanding Minnesota Statutes, section 477A.017, 
135.24 	subdivision 3, the city of Echo is eligible to receive its aid payment for calendar year 2021 
135.25 	under Minnesota Statutes, section 477A.013, that was withheld under Minnesota Statutes, 
135.26 	section 477A.017, subdivision 3, and its small city assistance payment for calendar year 
135.27 	2021 under Minnesota Statutes, section 162.145, that was withheld under Minnesota Statutes, 
135.28 	section 162.145, subdivision 3, paragraph (c). If the state auditor certifies to the commissioner 
135.29 	of revenue that it received the annual financial reporting form for 2020 from the city by 
135.30 	June 1, 2023, the commissioner of revenue must make a payment of $46,060 to the city by 
135.31 	June 30, 2023.
136.1 		Subd. 2.City of Morton. Notwithstanding Minnesota Statutes, section 477A.017, 
136.2 	subdivision 3, the city of Morton is eligible to receive its aid payment for calendar year 
136.3 	2021 under Minnesota Statutes, section 477A.013, that was withheld under Minnesota 
136.4 	Statutes, section 477A.017, subdivision 3, and its small city assistance payment for calendar 
136.5 	year 2021 under Minnesota Statutes, section 162.145, that was withheld under Minnesota 
136.6 	Statutes, section 162.145, subdivision 3, paragraph (c). If the state auditor certifies to the 
136.7 	commissioner of revenue that it received the annual financial reporting form for 2020 from 
136.8 	the city by June 1, 2023, the commissioner of revenue must make a payment of $79,476 to 
136.9 	the city by June 30, 2023.
136.10 		Subd. 3.Appropriation. The amounts necessary to make the payments required under 
136.11 	this section are appropriated in fiscal year 2023 from the general fund to the commissioner 
136.12 	of revenue. This is a onetime appropriation.

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

136.14 	Sec. 22. 2023 PUBLIC SAFETY AID.
 136.15 		Subdivision 1.Definitions. For purposes of this section, the following terms have the 
136.16 	meanings given:
136.17 	(1) "commissioner" means the commissioner of revenue;
136.18 	(2) "local unit" means (i) a statutory or home rule charter city, or (ii) a town with a 
136.19 	population of at least 10,000;
136.20 	(3) "population" means population estimates made or conducted by the United States 
136.21 	Bureau of the Census; the Metropolitan Council pursuant to Minnesota Statutes, section 
136.22 	473.24; or by the state demographer pursuant to Minnesota Statutes, section 4A.02, paragraph 
136.23 	(d), whichever is the most recent estimate and available as of January 1, 2023;
136.24 	(4) "Tribal governments" has the meaning given to "Minnesota Tribal governments" in 
136.25 	Minnesota Statutes, section 10.65, subdivision 2, paragraph (a), clause (4); and
136.26 	(5) "Tribal population" means population estimates made or conducted by the United 
136.27 	States Bureau of the Census of the federally recognized American Indian reservations and 
136.28 	off-reservation trust lands in Minnesota, whichever is the most recent estimate and available 
136.29 	as of January 1, 2023.
136.30 		Subd. 2.County aid. A county's public safety aid equals the sum of:
136.31 	(1) the product of (i) the county's population, and (ii) the county basic allowance; plus
137.1 	(2) the product of (i) the county's population minus the total population of every local 
137.2 	unit located in that county, and (ii) the county additional allowance.
137.3 		Subd. 3.Tribal government aid. A Tribal government's public safety aid equals the 
137.4 	sum of:
137.5 	(1) the product of (i) the Tribe's population, and (ii) the county basic allowance; plus
137.6 	(2) the product of (i) the Tribe's population, and (ii) the county additional allowance.
137.7 		Subd. 4.Local unit aid. A local unit's public safety aid equals the greater of (1) $1,500, 
137.8 	or (2) the product of (i) the local unit's population, and (ii) the local unit allowance.
137.9 		Subd. 5.Commissioner to calculate allowances. (a) The commissioner must calculate 
137.10 	the county basic allowance so that the total amount of aid distributed under subdivisions 2, 
137.11 	clause (1), and 3, clause (1), equals 70 percent of the amount appropriated for aid to counties 
137.12 	and Tribal governments.
137.13 	(b) The commissioner must calculate the county additional allowance so that the total 
137.14 	amount of aid distributed under subdivisions 2, clause (2), and 3, clause (2), equals 30 
137.15 	percent of the amount appropriated for aid to counties and Tribal governments.
137.16 	(c) The commissioner must calculate the local unit allowance so that the total amount 
137.17 	of aid distributed under subdivision 4 equals the amount appropriated for aid to local units.
137.18 		Subd. 6.Eligible uses. (a) A county, Tribal government, or local unit must use the aid 
137.19 	under this section to provide public safety, including but not limited to training programs 
137.20 	for peace officers and other public safety staff on mental health crisis response, de-escalation 
137.21 	strategies, or community engagement or to pay other personnel and equipment costs.
137.22 	(b) A county must consult with its county sheriff in determining how to use the aid.
137.23 	(c) A county, Tribal government, or local unit may not apply the aid under this section 
137.24 	toward:
137.25 	(1) its employer contribution to the public employees police and fire fund if the county, 
137.26 	Tribal government, or local unit received police state aid under Minnesota Statutes, chapter 
137.27 	477C, in calendar year 2022; or
137.28 	(2) any costs associated with alleged wrongdoing or misconduct.
137.29 		Subd. 7.Certification; payment date. The commissioner must certify the aid amount 
137.30 	to be paid in 2023 to each county, Tribal government, and local unit by September 1, 2023. 
137.31 	The commissioner must make the full 2023 payment to each county, Tribal government, 
137.32 	and local unit by December 26, 2023.
138.1 		Subd. 8.Appropriation. (a) $300,000,000 is appropriated in fiscal year 2024 from the 
138.2 	general fund to the commissioner of revenue for public safety aid under this section.
138.3 	(b) Of the amount in paragraph (a), 30 percent is for aid to counties and Tribal 
138.4 	governments and 70 percent is for aid to local units.
138.5 	(c) This is a onetime appropriation.

138.6 	EFFECTIVE DATE. This section is effective for aids payable in 2023.

138.7 	Sec. 23. CITY OF HIBBING; 2024 CITY FORMULA AID ADJUSTMENT.
 138.8 	For aid payable in 2024 only, the city formula aid calculated under Minnesota Statutes, 
138.9 	section 477A.013, subdivision 8, for the City of Hibbing is increased by $1,606,400.

138.10 	EFFECTIVE DATE. This section is effective for aids payable in 2024 only.

138.11 	Sec. 24. CRISIS RESPONSE AND CRIMINAL INVESTIGATION GRANTS; 
138.12 	SPECIAL REVENUE ACCOUNT; APPROPRIATION.
 138.13 	The crisis response and criminal investigation account is created in the special revenue 
138.14 	fund consisting of money deposited, donated, allotted, transferred, or otherwise provided 
138.15 	to the account. Of the amount in the account, up to $5,000,000 in each of fiscal years 2024, 
138.16 	2025, 2026, 2027, and 2028 are appropriated to the commissioner of public safety for grants 
138.17 	administered by the Office of Justice Programs to be awarded to local law enforcement 
138.18 	agencies or local governments to improve responses to situations involving individuals 
138.19 	experiencing a mental health crisis and to improve criminal investigations. The Office of 
138.20 	Justice Programs may use up to 2.5 percent of the annual appropriation to administer the 
138.21 	grants. This appropriation is in addition to any appropriation enacted for the same purpose 
138.22 	during the 2023 regular legislative session.

138.23 	Sec. 25. CRISIS RESPONSE AND CRIMINAL INVESTIGATION ACCOUNT; 
138.24 	TRANSFER.
 138.25 	$25,000,000 in fiscal year 2024 is transferred from the general fund to the crisis response 
138.26 	and criminal investigation account in the special revenue fund. The base for this appropriation 
138.27 	is $0 in fiscal year 2025 and thereafter. Any balance in the account on June 30, 2028, cancels 
138.28 	to the general fund. This transfer is in addition to any transfer enacted for the same purpose 
138.29 	during the 2023 regular legislative session.

139.1 	Sec. 26. TRIBAL NATION HOUSING AND HOMELESSNESS AID.
 139.2 	(a) $44,000,000 in fiscal year 2024 is appropriated from the general fund to the 
139.3 	commissioner of revenue for direct aid to Tribal Nations for homelessness prevention, 
139.4 	emergency shelter, and other needs related to housing instability and homelessness.
139.5 	(b) The commissioner of revenue may pay aid under this section to the governing body 
139.6 	of the:
139.7 	(1) Fond du Lac Band;
139.8 	(2) Grand Portage Band;
139.9 	(3) Mille Lacs Band;
139.10 	(4) White Earth Band;
139.11 	(5) Bois Forte Band;
139.12 	(6) Leech Lake Band;
139.13 	(7) Red Lake Nation;
139.14 	(8) Upper Sioux Community;
139.15 	(9) Lower Sioux Community;
139.16 	(10) Shakopee Mdewakanton Sioux Community; and
139.17 	(11) Prairie Island Mdewakanton Dakota Community.
139.18 	(c) To receive aid under this section, a Tribal Nation must apply in writing to the 
139.19 	commissioner of revenue on or before July 1, 2023. As part of the application, the Tribal 
139.20 	Nation must agree to spend the aid money for homelessness prevention, emergency shelter, 
139.21 	and other needs related to housing instability and homelessness.
139.22 	(d) Each Tribal Nation must be paid an amount equal to the amount appropriated in 
139.23 	paragraph (a) divided by the number of Tribal Nations that timely applied for aid. The 
139.24 	commissioner of revenue shall certify the amount of aid payable to each Tribal Nation on 
139.25 	or before September 1, 2023.
139.26 	(e) The commissioner of revenue must distribute all aid payable under this section on 
139.27 	or before December 26, 2023.
139.28 	(f) On or before February 1, 2024, a recipient of aid under this section must provide a 
139.29 	report to the commissioner of revenue in the form prescribed by the commissioner of revenue. 
140.1 	The commissioner of revenue must compile and provide the reports to the chairs and ranking 
140.2 	minority members of the legislative committees with jurisdiction over taxes.
140.3 	(g) The appropriation under this section is onetime.

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

140.5 	Sec. 27. APPROPRIATION; CITY OF SPRING GROVE FIRE REMEDIATION 
140.6 	GRANT.
 140.7 	$250,000 in fiscal year 2024 is appropriated from the general fund to the commissioner 
140.8 	of revenue for a grant to the city of Spring Grove to remediate the effects of the fire in the 
140.9 	city on December 22, 2022. The grant recipient must use the money appropriated under this 
140.10 	section for remediation costs incurred by public or private entities as a result of the fire, 
140.11 	including disaster recovery, infrastructure, reimbursement for emergency personnel costs, 
140.12 	reimbursement for equipment costs, and reimbursement for property tax abatements. This 
140.13 	appropriation is onetime and is available until June 30, 2025.

140.14 	EFFECTIVE DATE. This section is effective July 1, 2023.

140.15 	Sec. 28. APPROPRIATION; CLASS 4D(1) LOW-INCOME RENTAL PROPERTY 
140.16 	2025 AND 2026 TRANSITION AID.
 140.17 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms in this 
140.18 	subdivision have the meanings given.
140.19 	(b) "4d(1) property" means class 4d(1) low-income rental property under Minnesota 
140.20 	Statutes, section 273.13, subdivision 25.
140.21 	(c) "Base assessment year" means assessment year 2023.
140.22 	(d) "City" means a home rule charter or statutory city.
140.23 	(e) "Modified transition tax capacity" means the product of (1) one minus the transition 
140.24 	ratio for the city, times (2) the transition tax capacity for the city.
140.25 	(f) "Transition ratio" means the ratio of (1) the net tax capacity of 4d(1) property for the 
140.26 	city in the base assessment year calculated using the classification rates and first-tier limit 
140.27 	in effect for 4d(1) property for taxes payable in 2025, to (2) the net tax capacity of 4d(1) 
140.28 	property for the city in the base assessment year calculated using the classification rates 
140.29 	and first-tier limit in effect for 4d(1) property for taxes payable in 2024.
141.1 	(g) "Transition tax capacity" means the greater of zero or the difference between (1) the 
141.2 	net tax capacity of 4d(1) property for the city in the base assessment year, minus (2) two 
141.3 	percent of the total net tax capacity for the city in the base assessment year.
141.4 		Subd. 2.Aid amount. In 2025 and 2026 only, transition aid for a city equals the product 
141.5 	of (1) the city's tax rate for taxes payable in 2024, times (2) the modified transition tax 
141.6 	capacity for the city.
141.7 		Subd. 3.Administration; payment schedule. (a) For purposes of this section, net tax 
141.8 	capacity must be determined by the commissioner of revenue based on information available 
141.9 	to the commissioner as of July 15, 2024.
141.10 	(b) The commissioner of revenue must certify the aid amount to be paid to each city 
141.11 	before August 1 of the year preceding the aid distribution year and must pay the aid in two 
141.12 	installments on the dates specified in Minnesota Statutes, section 477A.015.
141.13 		Subd. 4.Appropriation. An amount sufficient to pay transition aid under this section 
141.14 	is annually appropriated from the general fund to the commissioner of revenue.

141.15 	EFFECTIVE DATE. This section is effective for aid payable in calendar year 2025 
141.16 	and 2026 only.

141.17 	Sec. 29. REPEALER.
 141.18 	Minnesota Statutes 2022, sections 477A.011, subdivisions 30a, 38, 42, and 45; and 
141.19 	477A.013, subdivision 13, are repealed.

141.20 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
141.21 	and thereafter.

141.22 	ARTICLE 5
141.23 	SALES AND USE TAXES

141.24 	Section 1. Minnesota Statutes 2022, section 38.27, subdivision 4, is amended to read:
141.25 		Subd. 4.Use of a portion of county fair revenues. A county agricultural society must 
141.26 	annually determine the amount of sales tax savings attributable to section 297A.70, 
141.27 	subdivision 21. If the county agricultural society owns its own fairgrounds, it, and must use 
141.28 	the amount equal to the sales tax savings to maintain, improve, or expand society-owned 
141.29 	buildings and facilities on the fairgrounds; otherwise it must transfer this amount to the 
141.30 	owner of the fairgrounds. An owner that receives a transfer of money under this subdivision 
142.1 	must use the transferred amount to maintain, improve, and expand entity owned buildings 
142.2 	and facilities on the county fairgrounds.

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

142.4 	Sec. 2. Minnesota Statutes 2022, section 297A.67, is amended by adding a subdivision to 
142.5 	read:
142.6 		Subd. 39.Firearm storage units. Secure firearm storage units are exempt. For the 
142.7 	purposes of this subdivision:
142.8 	(1) "secure firearm storage unit" means a container that is fully enclosed and locked by 
142.9 	a padlock, keylock, combination lock, or similar locking device, and is either specifically 
142.10 	designed for the safe storage of firearms or sold for that purpose by a federally licensed 
142.11 	firearms dealer; and
142.12 	(2) "firearm" has the meaning provided in section 97A.015, subdivision 19.

142.13 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
142.14 	30, 2023.

142.15 	Sec. 3. Minnesota Statutes 2022, section 297A.68, is amended by adding a subdivision to 
142.16 	read:
142.17 		Subd. 35b.Fiber and conduit; broadband and Internet access. Fiber and conduit 
142.18 	purchased or leased for use directly by a broadband or Internet service provider, primarily 
142.19 	in the provision of broadband or Internet access services that are ultimately to be sold at 
142.20 	retail, are exempt.

142.21 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
142.22 	30, 2023.

142.23 	Sec. 4. Minnesota Statutes 2022, section 297A.68, is amended by adding a subdivision to 
142.24 	read:
142.25 		Subd. 46.Amenities included with the privilege of admission. (a) The sale of amenities, 
142.26 	including but not limited to food and beverages, parking services, and promotional items, 
142.27 	that are included in the sales price of the privilege of admission to athletic events and places 
142.28 	of amusement under section 297A.61, subdivision 3, paragraph (m), are exempt when sold 
142.29 	by a seller of the privilege of admission.
143.1 	(b) Under this subdivision, the exempt portion of the sale of the privilege of admission 
143.2 	is equal to the purchase price of the amenity if sales or use tax was paid on the amenity 
143.3 	when purchased by the seller.
143.4 	(c) The seller must retain records documenting the price and tax paid by the seller when 
143.5 	purchasing the amenities and the price and tax collected when the seller sells the privilege 
143.6 	of admission.

143.7 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
143.8 	made after June 30, 2022.

143.9 	Sec. 5. Minnesota Statutes 2022, section 297A.70, subdivision 7, is amended to read:
143.10 		Subd. 7.Hospitals, outpatient surgical centers, and critical access dental providers, 
143.11 	and blood centers. (a) Sales, except for those listed in paragraph (d) (e), to a hospital are 
143.12 	exempt, if the items purchased are used in providing hospital services. For purposes of this 
143.13 	subdivision, "hospital" means a hospital organized and operated for charitable purposes 
143.14 	within the meaning of section 501(c)(3) of the Internal Revenue Code, and licensed under 
143.15 	chapter 144 or by any other jurisdiction, and "hospital services" are services authorized or 
143.16 	required to be performed by a "hospital" under chapter 144.
143.17 	(b) Sales, except for those listed in paragraph (d) (e), to an outpatient surgical center are 
143.18 	exempt, if the items purchased are used in providing outpatient surgical services. For purposes 
143.19 	of this subdivision, "outpatient surgical center" means an outpatient surgical center organized 
143.20 	and operated for charitable purposes within the meaning of section 501(c)(3) of the Internal 
143.21 	Revenue Code, and licensed under chapter 144 or by any other jurisdiction. For the purposes 
143.22 	of this subdivision, "outpatient surgical services" means: (1) services authorized or required 
143.23 	to be performed by an outpatient surgical center under chapter 144; and (2) urgent care. For 
143.24 	purposes of this subdivision, "urgent care" means health services furnished to a person 
143.25 	whose medical condition is sufficiently acute to require treatment unavailable through, or 
143.26 	inappropriate to be provided by, a clinic or physician's office, but not so acute as to require 
143.27 	treatment in a hospital emergency room.
143.28 	(c) Sales, except for those listed in paragraph (d) (e), to a critical access dental provider 
143.29 	are exempt, if the items purchased are used in providing critical access dental care services. 
143.30 	For the purposes of this subdivision, "critical access dental provider" means a dentist or 
143.31 	dental clinic that qualifies under section 256B.76, subdivision 4, paragraph (b), and, in the 
143.32 	previous calendar year, had no more than 15 percent of its patients covered by private dental 
143.33 	insurance.
144.1 	(d) Sales, except for those listed in paragraph (e), to a blood center are exempt, if the 
144.2 	items purchased are used in providing blood collection and distribution services. 
144.3 	Notwithstanding paragraph (e), leases by a blood center of a truck, as defined in section 
144.4 	168.002; a bus, as defined in section 168.002; or a passenger automobile, as defined in 
144.5 	section 168.002, if the truck, bus, or automobile is used for carrying out the purposes of the 
144.6 	blood center, including the collection of blood from donors, setting up of blood drives, and 
144.7 	delivering blood to hospitals are exempt. For purposes of this subdivision, "blood center" 
144.8 	means an entity organized and operated for charitable purposes under section 501(c)(3) of 
144.9 	the Internal Revenue Code that is:
144.10 	(1) registered as a blood establishment pursuant to Code of Federal Regulations, title 
144.11 	21, part 607;
144.12 	(2) a human cells, tissues, and cellular and tissue-based products establishment under 
144.13 	Code of Federal Regulations, title 21, part 1271, subpart B; or
144.14 	(3) a clinical lab that performs infectious disease testing, blood typing, and other 
144.15 	laboratory testing services in connection with blood processing for transfusion into humans 
144.16 	under Code of Federal Regulations, title 42, part 493.
144.17 	(e) This exemption does not apply to the following products and services:
144.18 	(1) purchases made by a clinic, physician's office, or any other medical facility not 
144.19 	operating as a hospital, outpatient surgical center, or critical access dental provider, or blood 
144.20 	center, even though the clinic, office, or facility may be owned and operated by a hospital, 
144.21 	outpatient surgical center, or critical access dental provider, or blood center;
144.22 	(2) sales under section 297A.61, subdivision 3, paragraph (g), clause (2), and prepared 
144.23 	food, candy, and soft drinks;
144.24 	(3) building and construction materials used in constructing buildings or facilities that 
144.25 	will not be used principally by the hospital, outpatient surgical center, or critical access 
144.26 	dental provider, or blood center;
144.27 	(4) building, construction, or reconstruction materials purchased by a contractor or a 
144.28 	subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed 
144.29 	maximum price covering both labor and materials for use in the construction, alteration, or 
144.30 	repair of a hospital, outpatient surgical center, or critical access dental provider, or blood 
144.31 	center; or
144.32 	(5) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11.
145.1 	(e) (f) A limited liability company also qualifies for exemption under this subdivision 
145.2 	if (1) it consists of a sole member that would qualify for the exemption, and (2) the items 
145.3 	purchased qualify for the exemption.
145.4 	(f) (g) An entity that contains both a hospital and a nonprofit unit may claim this 
145.5 	exemption on purchases made for both the hospital and nonprofit unit provided that:
145.6 	(1) the nonprofit unit would have qualified for exemption under subdivision 4; and
145.7 	(2) the items purchased would have qualified for the exemption.

145.8 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
145.9 	made after December 31, 2019.

145.10 	Sec. 6. Minnesota Statutes 2022, section 297A.70, subdivision 19, is amended to read:
145.11 		Subd. 19.Nonprofit snowmobile clubs; machinery and equipment. (a) The following 
145.12 	sales to an eligible nonprofit snowmobile club are exempt:
145.13 	sales of (1) tangible personal property, including grooming machines, attachments, other 
145.14 	associated accessories, and repair parts,to a nonprofit snowmobile club that is used primarily 
145.15 	and directly for the grooming of state or grant-in-aid snowmobile trails are exempt. The 
145.16 	exemption applies to grooming machines, attachments, other associated accessories, and 
145.17 	repair parts.; and
145.18 	(2) materials and supplies used or consumed in, and equipment incorporated into, the 
145.19 	construction, reconstruction, maintenance, or improvement of state or grant-in-aid 
145.20 	snowmobile trails, completed by the nonprofit snowmobile club.
145.21 	(b) A nonprofit snowmobile club is eligible for the exemption under this subdivision if 
145.22 	it received, in the current year or in the previous three-year period, a state grant-in-aid 
145.23 	maintenance and grooming grant administered by the Department of Natural Resources by 
145.24 	applying for the grant with a local unit of government sponsor.

145.25 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
145.26 	30, 2023.

145.27 	Sec. 7. Minnesota Statutes 2022, section 297A.70, subdivision 21, is amended to read:
145.28 		Subd. 21.County agricultural society sales at county fairs. (a) The following sales 
145.29 	by a county agricultural society during a regularly scheduled county fair are exempt. For 
145.30 	purposes of this subdivision, sales include are exempt:
145.31 	(1) admissions to and parking at the county fairgrounds,;
146.1 	(2) admissions to separately ticketed events run by the county agricultural society,; and
146.2 	(3) concessions and other sales made by employees or volunteers of the county 
146.3 	agricultural society on the county fairgrounds.
146.4 	This (b) The exemption under paragraph (a) does not apply to sales or for events by a 
146.5 	county agricultural society held at a time other than at the time of the regularly scheduled 
146.6 	county fair, or events not held on the county fairgrounds.

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

146.8 	Sec. 8. Minnesota Statutes 2022, section 297A.71, subdivision 51, is amended to read:
146.9 		Subd. 51.Properties destroyed by fire. (a) Building materials and supplies used or 
146.10 	consumed in, and equipment incorporated into, the construction or replacement of real 
146.11 	property affected by, and capital equipment to replace equipment destroyed in, the fire on 
146.12 	March 11, 2018, in the city of Mazeppa are exempt. The tax must be imposed and collected 
146.13 	as if the rate under section 297A.62, subdivision 1, applied and then refunded in the manner 
146.14 	provided in section 297A.75. For purposes of this subdivision, "capital equipment" includes 
146.15 	durable equipment used in a restaurant for food storage, preparation, and serving.
146.16 	(b) The exemption under this subdivision applies to sales and purchases made after 
146.17 	March 11, 2018, and before January 1, 2022 2025. Notwithstanding section 289A.40, a 
146.18 	claim for refund may be filed until June 1, 2028.

146.19 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
146.20 	made after March 11, 2018, and before January 1, 2025.

146.21 	Sec. 9. Minnesota Statutes 2022, section 297A.71, subdivision 52, is amended to read:
146.22 		Subd. 52.Construction; certain local government facilities. (a) Materials and supplies 
146.23 	used in and equipment incorporated into the construction, reconstruction, upgrade, expansion, 
146.24 	or remodeling of the following local government owned facilities are exempt:
146.25 	(1) a new fire station, which includes firefighting, emergency management, public safety 
146.26 	training, and other public safety facilities in the city of Monticello if materials, supplies, 
146.27 	and equipment are purchased after January 31, 2019, and before January 1, 2022;
146.28 	(2) a new fire station, which includes firefighting and public safety training facilities 
146.29 	and public safety facilities, in the city of Inver Grove Heights if materials, supplies, and 
146.30 	equipment are purchased after June 30, 2018, and before January 1, 2021;
147.1 	(3) a fire station and police station, including access roads, lighting, sidewalks, and 
147.2 	utility components, on or adjacent to the property on which the fire station or police station 
147.3 	are located that are necessary for safe access to and use of those buildings, in the city of 
147.4 	Minnetonka if materials, supplies, and equipment are purchased after May 23, 2019, and 
147.5 	before January 1, 2022;
147.6 	(4) the school building in Independent School District No. 414, Minneota, if materials, 
147.7 	supplies, and equipment are purchased after January 1, 2018, and before January 1, 2021;
147.8 	(5) a fire station in the city of Mendota Heights, if materials, supplies, and equipment 
147.9 	are purchased after December 31, 2018, and before January 1, 2021; and
147.10 	(6) a Dakota County law enforcement collaboration center, also known as the Safety 
147.11 	and Mental Health Alternative Response Training (SMART) Center, if materials, supplies, 
147.12 	and equipment are purchased after June 30, 2019, and before July 1, 2021.; and
147.13 	(7) the North Metro Regional Public Safety Training Facility in Maple Grove, if materials, 
147.14 	supplies, and equipment are purchased after August 31, 2021, and before December 31, 
147.15 	2023.
147.16 	(b) The tax must be imposed and collected as if the rate under section 297A.62, 
147.17 	subdivision 1, applied and then refunded in the manner provided in section 297A.75.
147.18 	(c) The total refund for the project listed in paragraph (a), clause (3), must not exceed 
147.19 	$850,000.

147.20 	EFFECTIVE DATE; APPLICATION. This section is effective retroactively for sales 
147.21 	and purchases made after August 31, 2021, and before December 31, 2023.

147.22 	Sec. 10. SALES AND USE TAX EXEMPTION; CERTAIN NATURAL GAS FEES.
 147.23 		Subdivision 1.Exemption. Fees related to natural gas sold for residential use to customers 
147.24 	who were metered and billed as residential users and who used natural gas for their primary 
147.25 	source of residential heat are exempt from sales and use tax imposed under Minnesota 
147.26 	Statutes, chapter 297A, for purposes of the billing periods May to October, provided that:
147.27 	(1) the fee for the natural gas is subject to a cost recovery plan for the price increase in 
147.28 	natural gas during the period from February 13, 2021, to February 17, 2021, identified in 
147.29 	docket G-999/CI-21-135 before the Minnesota Public Utilities Commission; and
147.30 	(2) the fee is separately stated and labeled as a fee pursuant to a cost recovery plan under 
147.31 	clause (1).
148.1 		Subd. 2.Application; refund. (a) By October 1, 2023, each utility must apply to the 
148.2 	commissioner of revenue for a refund of sales taxes collected and remitted pursuant to 
148.3 	Minnesota Statutes, section 297A.77, on fees for sales and purchases of natural gas subject 
148.4 	to a cost recovery plan under subdivision 1, clause (1), that were added to residential 
148.5 	customers' bills for the period beginning September 1, 2021, and ending June 30, 2023.
148.6 	(b) The provisions of Minnesota Statutes, section 289A.50, subdivision 2, paragraphs 
148.7 	(a), (b), and (d), apply to refunds issued under this subdivision. For purposes of this 
148.8 	subdivision, "utility" means a utility subject to the cost recovery plan under subdivision 1, 
148.9 	clause (1). Within 90 days after the date the commissioner issues the refund under Minnesota 
148.10 	Statutes, section 289A.50, subdivision 2, paragraph (a), to the utility, the utility must provide 
148.11 	a plan to the Minnesota Public Utilities Commission for crediting taxes exempt under 
148.12 	subdivision 1 to residential customers.
148.13 	(c) The plan must be approved by the Minnesota Public Utilities Commission. Any 
148.14 	amount not refunded or credited to a residential customer by a utility within 60 days of 
148.15 	approval of the plan must be returned to the commissioner by the utility.

148.16 	EFFECTIVE DATE. This section is effective retroactively for fees applied to sales 
148.17 	and purchases of natural gas that are billed from September 1, 2021, to December 31, 2026.

148.18 	Sec. 11. BELTRAMI COUNTY; SALES TAX EXEMPTION FOR CONSTRUCTION 
148.19 	MATERIALS.
 148.20 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
148.21 	equipment incorporated into the construction of a new county jail in Beltrami County are 
148.22 	exempt from sales and use tax under Minnesota Statutes, chapter 297A, provided that the 
148.23 	materials, supplies, and equipment are purchased after March 31, 2024, and before January 
148.24 	1, 2028.
148.25 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
148.26 	297A.62, subdivision 1, applied, and then refunded in the same manner provided for projects 
148.27 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
148.28 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
148.29 	is appropriated from the general fund to the commissioner of revenue.

148.30 	EFFECTIVE DATE. This section is effective for sales and purchases made after March 
148.31 	31, 2024, and before January 1, 2028.

149.1 	Sec. 12. CITY OF CHANHASSEN; SALES TAX EXEMPTION FOR 
149.2 	CONSTRUCTION MATERIALS.
 149.3 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
149.4 	equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation, 
149.5 	or remodeling of a new city hall and senior center, council chambers, and park amenities 
149.6 	in the city of Chanhassen are exempt from sales and use tax under Minnesota Statutes, 
149.7 	chapter 297A, provided that the materials, supplies, and equipment are purchased after 
149.8 	January 31, 2024, and before February 1, 2027.
149.9 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
149.10 	297A.62, subdivision 1, applied and then refunded in the same manner provided in Minnesota 
149.11 	Statutes, section 297A.75, subdivision 1, clause (17).
149.12 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
149.13 	is appropriated from the general fund to the commissioner of revenue.

149.14 	EFFECTIVE DATE. This section is effective for sales and purchases made after January 
149.15 	31, 2024, and before February 1, 2027.

149.16 	Sec. 13. CHISHOLM PUBLIC SCHOOLS; SALES TAX EXEMPTION FOR 
149.17 	CONSTRUCTION MATERIALS.
 149.18 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
149.19 	incorporated into the construction and renovation projects for Chisholm Elementary School, 
149.20 	Chisholm High School, and Vaughan Steffensrud School in Independent School District 
149.21 	No. 695, Chisholm Public Schools, are exempt from sales and use tax imposed under 
149.22 	Minnesota Statutes, chapter 297A. The exemption under this subdivision only applies if 
149.23 	materials, supplies, and equipment are purchased after December 31, 2021, and before 
149.24 	January 1, 2025.
149.25 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
149.26 	297A.62, subdivision 1, applied, and then refunded in the same manner provided for projects 
149.27 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
149.28 	purchases must not be issued until after June 30, 2023.
149.29 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
149.30 	is appropriated from the general fund to the commissioner of revenue.

149.31 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
149.32 	made after December 31, 2021, and before January 1, 2025.

150.1 	Sec. 14. DULUTH PUBLIC SCHOOLS; SALES TAX EXEMPTION FOR 
150.2 	CONSTRUCTION MATERIALS.
 150.3 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
150.4 	incorporated into the construction of an administrative building and a transportation facility 
150.5 	in Independent School District No. 709, Duluth Public Schools, are exempt from sales and 
150.6 	use tax imposed under Minnesota Statutes, chapter 297A, if materials, supplies, and 
150.7 	equipment are purchased after June 30, 2021, and before January 1, 2025.
150.8 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
150.9 	297A.62, subdivision 1, applied, and then refunded in the same manner provided for projects 
150.10 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
150.11 	purchases must not be issued until after June 30, 2023.
150.12 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
150.13 	is appropriated from the general fund to the commissioner of revenue.

150.14 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
150.15 	made after June 30, 2021, and before January 1, 2025.

150.16 	Sec. 15. ELY PUBLIC SCHOOLS; SALES TAX EXEMPTION FOR 
150.17 	CONSTRUCTION MATERIALS.
 150.18 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
150.19 	incorporated into the following projects in Independent School District No. 696, Ely Public 
150.20 	Schools, are exempt from sales and use tax imposed under Minnesota Statutes, chapter 
150.21 	297A, if materials, supplies, and equipment are purchased after May 1, 2019, and before 
150.22 	January 1, 2024:
150.23 	(1) renovations to the elementary school building and high school building; and
150.24 	(2) construction of a building that connects the elementary school and high school 
150.25 	buildings containing classrooms, a common area, a gymnasium, and administrative offices.
150.26 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
150.27 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
150.28 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
150.29 	purchases must not be issued until after June 30, 2023. Notwithstanding Minnesota Statutes, 
150.30 	section 289A.40, a claim for refund may be filed until June 1, 2027.
150.31 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
150.32 	is appropriated from the general fund to the commissioner of revenue.

151.1 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
151.2 	made after May 1, 2019, and before January 1, 2024.

151.3 	Sec. 16. HIBBING PUBLIC SCHOOLS; SALES TAX EXEMPTION FOR 
151.4 	CONSTRUCTION MATERIALS.
 151.5 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
151.6 	incorporated into the following projects in the city of Hibbing are exempt from sales and 
151.7 	use tax imposed under Minnesota Statutes, chapter 297A, if materials, supplies, and 
151.8 	equipment are purchased after May 1, 2019, and before January 1, 2025:
151.9 	(1) the addition of an Early Childhood Family Education Center to an existing elementary 
151.10 	school;
151.11 	(2) improvements to an existing athletic facility in Independent School District No. 701, 
151.12 	Hibbing Public Schools;
151.13 	(3) a reroofing project at Hibbing Washington Elementary School; and
151.14 	(4) a Hibbing High School restroom remodel project.
151.15 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
151.16 	297A.62, subdivision 1, applied, and then refunded in the same manner provided for projects 
151.17 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
151.18 	purchases must not be issued until after June 30, 2023. Notwithstanding Minnesota Statutes, 
151.19 	section 289A.40, a claim for refund may be filed until June 1, 2028.
151.20 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
151.21 	is appropriated from the general fund to the commissioner of revenue.

151.22 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
151.23 	made after May 1, 2019, and before January 1, 2025.

151.24 	Sec. 17. SALES TAX EXEMPTION FOR CONSTRUCTION MATERIALS; ITASCA 
151.25 	COUNTY.
 151.26 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
151.27 	equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation, 
151.28 	or remodeling of the Itasca County courthouse and new correctional facility are exempt 
151.29 	from sales and use tax under Minnesota Statutes, chapter 297A, provided that the materials, 
151.30 	supplies, and equipment are purchased after April 30, 2021, and before January 1, 2025.
152.1 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
152.2 	297A.62, subdivision 1, applied and then refunded in the same manner provided in Minnesota 
152.3 	Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible purchases must 
152.4 	not be issued until after June 30, 2023.
152.5 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
152.6 	is appropriated from the general fund to the commissioner of revenue.

152.7 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
152.8 	made after April 30, 2021, and before January 1, 2025.

152.9 	Sec. 18. MINNEAPOLIS-ST. PAUL INTERNATIONAL AIRPORT; SALES TAX 
152.10 	EXEMPTION FOR CONSTRUCTION MATERIALS.
 152.11 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
152.12 	incorporated into the construction, reconstruction, repair, maintenance, or improvement of 
152.13 	public infrastructure at the Minneapolis-St. Paul International Airport purchased by a 
152.14 	contractor or subcontractor are exempt from sales and use tax imposed under Minnesota 
152.15 	Statutes, chapter 297A, if materials, supplies, and equipment are purchased after June 30, 
152.16 	2023, and before July 1, 2024.
152.17 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
152.18 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
152.19 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
152.20 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
152.21 	exceed $8,000,000.
152.22 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
152.23 	is appropriated from the general fund to the commissioner of revenue.

152.24 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
152.25 	30, 2023, and before July 1, 2024.

152.26 	Sec. 19. CITY OF MOORHEAD; SALES TAX EXEMPTION FOR 
152.27 	CONSTRUCTION MATERIALS.
 152.28 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
152.29 	equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation, 
152.30 	or remodeling of a regional library and community center in the city of Moorhead are exempt 
152.31 	from sales and use tax under Minnesota Statutes, chapter 297A, provided that the materials, 
152.32 	supplies, and equipment are purchased after February 29, 2024, and before April 1, 2027.
153.1 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
153.2 	297A.62, subdivision 1, applied and then refunded in the same manner provided in Minnesota 
153.3 	Statutes, section 297A.75, subdivision 1, clause (17).
153.4 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
153.5 	is appropriated from the general fund to the commissioner of revenue.

153.6 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
153.7 	February 29, 2024, and before April 1, 2027.

153.8 	Sec. 20. NASHWAUK-KEEWATIN PUBLIC SCHOOLS; SALES TAX EXEMPTION 
153.9 	FOR CONSTRUCTION MATERIALS.
 153.10 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
153.11 	incorporated into the construction of a new school building and attached community wellness 
153.12 	center to replace Keewatin Elementary School and the Nashwauk High School in Independent 
153.13 	School District No. 319, Nashwauk-Keewatin Public Schools, are exempt from sales and 
153.14 	use tax imposed under Minnesota Statutes, chapter 297A, if materials, supplies, and 
153.15 	equipment are purchased after December 31, 2021, and before January 1, 2025.
153.16 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
153.17 	297A.62, subdivision 1, applied, and then refunded in the same manner provided for projects 
153.18 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
153.19 	purchases must not be issued until after June 30, 2023.
153.20 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
153.21 	is appropriated from the general fund to the commissioner of revenue.

153.22 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
153.23 	made after December 31, 2021, and before January 1, 2025.

153.24 	Sec. 21. NORTHERN LIGHTS ACADEMY; SALES TAX EXEMPTION FOR 
153.25 	CONSTRUCTION MATERIALS.
 153.26 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
153.27 	incorporated into the following projects at Northern Lights Academy Cooperative No. 6096 
153.28 	are exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, if 
153.29 	materials, supplies, and equipment are purchased after December 31, 2021, and before 
153.30 	January 1, 2025:
153.31 	(1) the construction of a new addition to the existing facility; and
154.1 	(2) renovations and improvements to the existing facility.
154.2 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
154.3 	297A.62, subdivision 1, applied, and then refunded in the same manner provided for projects 
154.4 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
154.5 	purchases must not be issued until after June 30, 2023.
154.6 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
154.7 	is appropriated from the general fund to the commissioner of revenue.

154.8 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
154.9 	made after December 31, 2021, and before January 1, 2025.

154.10 	Sec. 22. NORTHLAND LEARNING CENTER; SALES TAX EXEMPTION FOR 
154.11 	CONSTRUCTION MATERIALS.
 154.12 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
154.13 	incorporated into the following projects at Independent School District No. 6076 are exempt 
154.14 	from sales and use tax imposed under Minnesota Statutes, chapter 297A, if materials, 
154.15 	supplies, and equipment are purchased after December 31, 2021, and before January 1, 
154.16 	2025:
154.17 	(1) the construction of a new addition to the James Madison Building for Northland 
154.18 	Learning Center; and
154.19 	(2) renovations and improvements to the existing facility.
154.20 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
154.21 	297A.62, subdivision 1, applied, and then refunded in the same manner provided for projects 
154.22 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
154.23 	purchases must not be issued until after June 30, 2023.
154.24 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
154.25 	is appropriated from the general fund to the commissioner of revenue.

154.26 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
154.27 	made after December 31, 2021, and before January 1, 2025.

154.28 	Sec. 23. CITY OF OAKDALE; SALES TAX EXEMPTION FOR CONSTRUCTION 
154.29 	MATERIALS.
 154.30 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
154.31 	equipment incorporated into the construction of a new public works facility in the city of 
155.1 	Oakdale are exempt from sales and use tax under Minnesota Statutes, chapter 297A, provided 
155.2 	that the materials, supplies, and equipment are purchased after August 31, 2023, and before 
155.3 	January 1, 2027.
155.4 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
155.5 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
155.6 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
155.7 	purchases must not be issued until after June 30, 2023.
155.8 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
155.9 	is appropriated from the general fund to the commissioner of revenue.

155.10 	EFFECTIVE DATE. This section is effective for sales and purchases made after August 
155.11 	31, 2023, and before January 1, 2027.

155.12 	Sec. 24. CITY OF RAMSEY; SALES TAX EXEMPTION FOR CONSTRUCTION 
155.13 	MATERIALS.
 155.14 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
155.15 	equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation, 
155.16 	or remodeling of a new water treatment plant in the city of Ramsey are exempt from sales 
155.17 	and use tax under Minnesota Statutes, chapter 297A, provided that the materials, supplies, 
155.18 	and equipment are purchased after December 31, 2022.
155.19 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
155.20 	297A.62, subdivision 1, applied and then refunded in the same manner provided in Minnesota 
155.21 	Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible purchases must 
155.22 	not be issued until after June 30, 2023.
155.23 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
155.24 	is appropriated from the general fund to the commissioner of revenue.

155.25 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
155.26 	made after December 31, 2022.

155.27 	Sec. 25. RED LAKE COUNTY SCHOOL DISTRICT; SALES TAX EXEMPTION 
155.28 	FOR CONSTRUCTION MATERIALS.
 155.29 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
155.30 	incorporated into the construction of a new school in Independent School District No. 2906, 
155.31 	Red Lake County School District, are exempt from sales and use tax imposed under 
156.1 	Minnesota Statutes, chapter 297A, if materials, supplies, and equipment are purchased after 
156.2 	December 31, 2020, and before January 1, 2026.
156.3 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
156.4 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
156.5 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
156.6 	purchases must not be issued until after June 30, 2023.
156.7 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
156.8 	is appropriated from the general fund to the commissioner of revenue.

156.9 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
156.10 	made after December 31, 2020, and before January 1, 2026.

156.11 	Sec. 26. RED ROCK CENTRAL SCHOOL DISTRICT; SALES TAX EXEMPTION 
156.12 	FOR CONSTRUCTION MATERIALS.
 156.13 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
156.14 	incorporated into the construction of a new prekindergarten through grade 12 learning 
156.15 	facility in Independent School District No. 2884, Red Rock Central School District, are 
156.16 	exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, if materials, 
156.17 	supplies, and equipment are purchased after December 31, 2021, and before July 1, 2025.
156.18 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
156.19 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
156.20 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
156.21 	purchases must not be issued until after June 30, 2023.
156.22 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
156.23 	is appropriated from the general fund to the commissioner of revenue.

156.24 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
156.25 	made after December 31, 2021, and before July 1, 2025.

156.26 	Sec. 27. ROCK RIDGE PUBLIC SCHOOLS; SALES TAX EXEMPTION FOR 
156.27 	CONSTRUCTION MATERIALS.
 156.28 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
156.29 	incorporated into the construction of two new elementary school buildings and a new high 
156.30 	school building in Independent School District No. 2909, Rock Ridge Public Schools, are 
156.31 	exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, if materials, 
156.32 	supplies, and equipment are purchased after May 1, 2019, and before January 1, 2024.
157.1 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
157.2 	297A.62, subdivision 1, applied, and then refunded in the same manner provided for projects 
157.3 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
157.4 	purchases must not be issued until after June 30, 2023. Notwithstanding Minnesota Statutes, 
157.5 	section 289A.40, a claim for refund may be filed until June 1, 2027.
157.6 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
157.7 	is appropriated from the general fund to the commissioner of revenue.

157.8 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
157.9 	made after May 1, 2019, and before January 1, 2024.

157.10 	Sec. 28. CITY OF SPRING GROVE; SALES TAX EXEMPTION FOR 
157.11 	CONSTRUCTION MATERIALS AND CAPITAL EQUIPMENT.
 157.12 		Subdivision 1.Exemption; refund. (a) The sale and purchase of the following items 
157.13 	are exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, if the 
157.14 	items are used to repair, replace, or otherwise recover from real and personal property 
157.15 	damage that occurred during the fire on December 22, 2022, in the city of Spring Grove:
157.16 	(1) building materials and supplies used or consumed in, and equipment incorporated 
157.17 	into, the construction, replacement, or repair of real property; and
157.18 	(2) capital equipment to replace equipment destroyed in the fire.
157.19 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
157.20 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
157.21 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). The exemption under 
157.22 	paragraph (a) applies to sales and purchases made after December 22, 2022, and before 
157.23 	January 1, 2028. Refunds for eligible purchases must not be issued until after June 30, 2023.
157.24 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
157.25 	is appropriated from the general fund to the commissioner of revenue.

157.26 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
157.27 	made after December 22, 2022, and before January 1, 2028.

157.28 	Sec. 29. SPRINGFIELD SCHOOL DISTRICT; SALES TAX EXEMPTION FOR 
157.29 	CONSTRUCTION MATERIALS.
 157.30 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
157.31 	incorporated into the following projects for Independent School District No. 85, Springfield 
158.1 	School District, are exempt from sales and use tax imposed under Minnesota Statutes, 
158.2 	chapter 297A, if materials, supplies, and equipment are purchased after December 31, 2021, 
158.3 	and before July 1, 2025:
158.4 	(1) construction of a main secure entrance;
158.5 	(2) construction of a required tornado storm shelter and related safety, security, and 
158.6 	accessibility improvements;
158.7 	(3) installation of HVAC improvements;
158.8 	(4) renovation and interior modifications necessary to convert the existing elementary 
158.9 	school gymnasium for use for career and technical education trades and an auto shop; and
158.10 	(5) addition of a new school gymnasium, including the construction and improvement 
158.11 	of new locker rooms, and the renovation and repurposing of existing locker rooms for use 
158.12 	for cafeteria improvements and school programming needs.
158.13 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
158.14 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
158.15 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
158.16 	purchases must not be issued until after June 30, 2023.
158.17 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
158.18 	is appropriated from the general fund to the commissioner of revenue.

158.19 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
158.20 	made after December 31, 2021, and before July 1, 2025.

158.21 	Sec. 30. CITY OF WAYZATA; SALES TAX EXEMPTION FOR CONSTRUCTION 
158.22 	MATERIALS.
 158.23 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
158.24 	equipment incorporated into the following projects in the city of Wayzata are exempt from 
158.25 	sales and use tax under Minnesota Statutes, chapter 297A, provided that the materials, 
158.26 	supplies, and equipment are purchased after March 31, 2020, and before July 1, 2025:
158.27 	(1) expansion and remodeling of Depot Park;
158.28 	(2) construction of community docks for purposes of access from Lake Minnetonka;
158.29 	(3) construction of a lakeside boardwalk of approximately 1,500 lineal feet;
158.30 	(4) shoreline restoration, including installation of native plants, trees, and natural habitat;
159.1 	(5) restoration of Section Foreman House, including installation of a learning center to 
159.2 	provide indoor and outdoor classroom and community space;
159.3 	(6) construction of Eco Park, including shoreline restoration and marsh and water quality 
159.4 	improvement, a pier extension of the lakeside boardwalk, and creation of eco-living 
159.5 	classrooms;
159.6 	(7) construction of a public plaza with a restroom, 9/11 memorial, interactive water 
159.7 	display, and gathering space;
159.8 	(8) construction of a regional multiuse trail; and
159.9 	(9) construction of railroad crossings.
159.10 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
159.11 	297A.62, subdivision 1, applied and then refunded in the same manner provided in Minnesota 
159.12 	Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible purchases must 
159.13 	not be issued until after June 30, 2023.
159.14 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
159.15 	is appropriated from the general fund to the commissioner of revenue.

159.16 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
159.17 	made after March 31, 2020, and before January 1, 2025.

159.18 	Sec. 31. CITY OF WOODBURY; SALES TAX EXEMPTION FOR 
159.19 	CONSTRUCTION MATERIALS.
 159.20 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
159.21 	equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation, 
159.22 	or remodeling of the Central Park project in the city of Woodbury are exempt from sales 
159.23 	and use tax under Minnesota Statutes, chapter 297A, provided that the materials, supplies, 
159.24 	and equipment are purchased after June 30, 2023, and before January 1, 2026.
159.25 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
159.26 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
159.27 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
159.28 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
159.29 	is appropriated from the general fund to the commissioner of revenue.

159.30 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
159.31 	30, 2023, and before January 1, 2026.

160.1 	ARTICLE 6
160.2 	MINERALS

160.3 	Section 1. Minnesota Statutes 2022, section 272.02, subdivision 73, is amended to read:
160.4 		Subd. 73.Property subject to taconite production tax or net gross proceeds tax. (a) 
160.5 	Real and personal property described in section 298.25 is exempt to the extent the tax on 
160.6 	taconite and iron sulphides under section 298.24 is described in section 298.25 as being in 
160.7 	lieu of other taxes on such property. This exemption applies for taxes payable in each year 
160.8 	that the tax under section 298.24 is payable with respect to such property.
160.9 	(b) Deposits of mineral, metal, or energy resources the mining of which is subject to 
160.10 	taxation or the minimum payment under section 298.015 are exempt.

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

160.12 	Sec. 2. Minnesota Statutes 2022, section 273.1341, is amended to read:
160.13 	273.1341 TACONITE ASSISTANCE AREA.
160.14 	A "taconite assistance area" means the geographic area that falls within the boundaries 
160.15 	of a school district that contains:
160.16 	(1) a municipality in which the assessed valuation of unmined iron ore on May 1, 1941, 
160.17 	was not less than 40 percent of the assessed valuation of all real property; or
160.18 	(2) a municipality in which on January 1, 1977, or the applicable assessment date, there 
160.19 	is a taconite concentrating plant or where taconite is mined or quarried or where there is 
160.20 	located an electric generating plant which qualifies as a taconite facility. ; or
160.21 	(3) a municipality:
160.22 	(i) that is located in a county that contains a school district described in clause (1) or 
160.23 	(2); and
160.24 	(ii) where active mining of materials subject to the tax under section 298.015, subdivision 
160.25 	1, is occurring, or where a mine subject to the minimum payment under section 298.015, 
160.26 	subdivision 3, is located.

160.27 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
160.28 	31, 2022.

161.1 	Sec. 3. Minnesota Statutes 2022, section 297A.68, subdivision 4, is amended to read:
161.2 		Subd. 4.Taconite, other ores, metals, or minerals; production materials. Mill liners, 
161.3 	grinding rods, and grinding balls that are substantially consumed in the production of taconite 
161.4 	or other ores, metals, or minerals are exempt when sold to or stored, used, or consumed by 
161.5 	persons taxed under the in-lieu or net gross proceeds provisions of chapter 298.

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

161.7 	Sec. 4. Minnesota Statutes 2022, section 298.015, is amended to read:
161.8 	298.015 NET GROSS PROCEEDS TAX ON MINING.
161.9 		Subdivision 1.Tax imposed. A person engaged in the business of mining shall pay to 
161.10 	the state of Minnesota for distribution as provided in section 298.018 a net gross proceeds 
161.11 	tax equal to two 0.4 percent of the net gross proceeds from mining in Minnesota. The tax 
161.12 	applies to all ores, metals, and minerals mined, extracted, produced, or refined within the 
161.13 	state of Minnesota except for sand, silica sand, gravel, building stone, crushed rock, 
161.14 	limestone, granite, dimension granite, dimension stone, horticultural peat, clay, soil, iron 
161.15 	ore, and taconite concentrates. The tax is in addition to all other taxes provided for by law.
161.16 		Subd. 2.Net Gross proceeds. For purposes of this section, the term "net gross proceeds" 
161.17 	means the gross proceeds from mining, as defined in section 298.016, less the deductions 
161.18 	for purposes of determining taxable income under section 298.01, subdivision 3b, applied 
161.19 	to the mining, production, processing, beneficiation, smelting, or refining of metal or mineral 
161.20 	products. No other credits or deductions shall apply to this tax.
161.21 		Subd. 3.Minimum payment. (a) A person who has obtained all required permits to 
161.22 	mine all ores and metals, except for sand, silica sand, gravel, building stone, crushed rock, 
161.23 	limestone, granite, dimension granite, dimension stone, horticultural peat, clay, soil, iron 
161.24 	ore, and iron concentrates, is annually subject to the minimum payment under this 
161.25 	subdivision, unless:
161.26 	(1) the tax imposed on the individual under subdivision 1 in a given year is greater than 
161.27 	zero; or
161.28 	(2) the person demonstrates to the commissioner of revenue that it is legally prohibited 
161.29 	from engaging in the business of mining under a permit it has obtained.
161.30 	(b) The annual payment under this subdivision is (1) $2,000,000, multiplied by (2) the 
161.31 	number of months in a calendar year the individual is subject to the minimum payment 
161.32 	under this subdivision, as determined under paragraph (a), divided by 12.

162.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
162.2 	31, 2022.

162.3 	Sec. 5. Minnesota Statutes 2022, section 298.018, subdivision 1, is amended to read:
162.4 		Subdivision 1.Within taconite assistance area. (a) The proceeds of the tax paid under 
162.5 	sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the 
162.6 	taconite assistance area defined in section 273.1341, shall be allocated as follows:
162.7 	(1) except as provided under paragraph (b), five percent to the city or town within which 
162.8 	the minerals or energy resources are mined or extracted, or within which the concentrate 
162.9 	was produced. If the mining and concentration, or different steps in either process, are 
162.10 	carried on in more than one taxing district, the commissioner shall apportion equitably the 
162.11 	proceeds among the cities and towns by attributing 50 percent of the proceeds of the tax to 
162.12 	the operation of mining or extraction, and the remainder to the concentrating plant and to 
162.13 	the processes of concentration, and with respect to each thereof giving due consideration 
162.14 	to the relative extent of the respective operations performed in each taxing district;
162.15 	(2) ten percent to the taconite municipal aid account to be distributed as provided in 
162.16 	section 298.282, subdivisions 1 and 2, on the dates provided under this section;
162.17 	(3) ten percent to the school district within which the minerals or energy resources are 
162.18 	mined or extracted, or within which the concentrate was produced. If the mining and 
162.19 	concentration, or different steps in either process, are carried on in more than one school 
162.20 	district, distribution among the school districts must be based on the apportionment formula 
162.21 	prescribed in clause (1);
162.22 	(4) 20 percent to a group of school districts comprised of those school districts wherein 
162.23 	the mineral or energy resource was mined or extracted or in which there is a qualifying 
162.24 	municipality as defined by section 273.134, paragraph (b), in direct proportion to school 
162.25 	district indexes as follows: for each school district, its pupil units determined under section 
162.26 	126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted 
162.27 	net tax capacity per pupil unit for school districts receiving aid under this clause as calculated 
162.28 	pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution 
162.29 	to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that 
162.30 	portion of the distribution which its index bears to the sum of the indices for all school 
162.31 	districts that receive the distributions;
162.32 	(5) 20 ten percent to the county within which the minerals or energy resources are mined 
162.33 	or extracted, or within which the concentrate was produced. If the mining and concentration, 
163.1 	or different steps in either process, are carried on in more than one county, distribution 
163.2 	among the counties must be based on the apportionment formula prescribed in clause (1), 
163.3 	provided that any county receiving distributions under this clause shall pay one percent of 
163.4 	its proceeds to the Range Association of Municipalities and Schools;
163.5 	(6) 20 five percent to St. Louis County acting as the counties' fiscal agent to be distributed 
163.6 	as provided in sections 273.134 to 273.136;
163.7 	(7) five 20 percent to the commissioner of Iron Range resources and rehabilitation for 
163.8 	the purposes of section 298.22;
163.9 	(8) three percent to the Douglas J. Johnson economic protection trust fund; and
163.10 	(9) seven percent to the taconite environmental protection fund; and
163.11 	(10) ten percent to the commissioner of Iron Range resources and rehabilitation for 
163.12 	capital improvements to Giants Ridge Recreation Area.
163.13 	(b) If the materials or energy resources are mined, extracted, or concentrated in School 
163.14 	District No. 2711, Mesabi East, then the amount under paragraph (a), clause (1), must instead 
163.15 	be distributed pursuant to this paragraph. The cities of Aurora, Babbitt, Ely, and Hoyt Lakes 
163.16 	must each receive 20 percent of the amount. The city of Biwabik and Embarrass Township 
163.17 	must each receive ten percent of the amount.
163.18 	(c) For the first five years that tax paid under section 298.015, subdivisions 1 and 2, is 
163.19 	distributed under this subdivision, ten percent of the total proceeds distributed in each year 
163.20 	must first be distributed pursuant to this paragraph. The remaining 90 percent of the total 
163.21 	proceeds distributed in each of those years must be distributed as outlined in paragraph (a). 
163.22 	Of the amount available under this paragraph, the cities of Aurora, Babbitt, Ely, and Hoyt 
163.23 	Lakes must each receive 20 percent. Of the amount available under this paragraph, the city 
163.24 	of Biwabik and Embarrass Township must each receive ten percent.

163.25 	EFFECTIVE DATE. This section is effective for distributions beginning after December 
163.26 	31, 2022.

163.27 	Sec. 6. Minnesota Statutes 2022, section 298.018, subdivision 1a, is amended to read:
163.28 		Subd. 1a.Distribution date. The proceeds of the tax allocated under subdivision 1 shall 
163.29 	be distributed on December 15 each year. Any payment of proceeds received after December 
163.30 	15 shall be distributed on the next net gross proceeds tax distribution date.

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

164.1 	Sec. 7. Minnesota Statutes 2022, section 298.28, subdivision 5, is amended to read:
164.2 		Subd. 5.Counties. (a) 21.05 cents per taxable ton for distributions in 2015 through 2023, 
164.3 	and 26.05 cents per taxable ton for distributions beginning in 2024, is allocated to counties 
164.4 	to be distributed, based upon certification by the commissioner of revenue, under paragraphs 
164.5 	(b) to (d).
164.6 	(b) 10.525 cents per taxable ton shall be distributed to the county in which the taconite 
164.7 	is mined or quarried or in which the concentrate is produced, less any amount which is to 
164.8 	be distributed pursuant to paragraph (c). The apportionment formula prescribed in subdivision 
164.9 	2 is the basis for the distribution.
164.10 	(c) 1.0 cent per taxable ton of the tax distributed to the counties under paragraph (b) 
164.11 	shall be paid to a county that received a distribution under this section in 2000 because there 
164.12 	was located in the county an electric power plant owned by and providing the primary source 
164.13 	of power for a taxpayer mining and concentrating taconite in a different county.
164.14 	(d) 10.525 cents per taxable ton for distributions in 2015 through 2023, and 15.525 cents 
164.15 	per taxable ton for distributions beginning in 2024, shall be paid to the county from which 
164.16 	the taconite was mined, quarried or concentrated to be deposited in the county road and 
164.17 	bridge fund. If the mining, quarrying and concentrating, or separate steps in any of those 
164.18 	processes are carried on in more than one county, the commissioner shall follow the 
164.19 	apportionment formula prescribed in subdivision 2.

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

164.21 	Sec. 8. Minnesota Statutes 2022, section 298.28, subdivision 7a, is amended to read:
164.22 		Subd. 7a.Iron Range school consolidation and cooperatively operated school 
164.23 	account. (a) The following amounts must be allocated to the commissioner of Iron Range 
164.24 	resources and rehabilitation to be deposited in the Iron Range school consolidation and 
164.25 	cooperatively operated school account that is hereby created:
164.26 	(1)(i) for distributions beginning in 2015 through 2023, ten cents per taxable ton of the 
164.27 	tax imposed under section 298.24; and
164.28 	(ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed 
164.29 	under section 298.24;
164.30 	(2) the amount as determined under section 298.17, paragraph (b), clause (3); and
164.31 	(3) any other amount as provided by law.
165.1 	(b) Expenditures from this account may be approved as ongoing annual expenditures 
165.2 	and shall be made only to provide disbursements to assist school districts with the payment 
165.3 	of bonds that were issued for qualified school projects, or for any other school disbursement 
165.4 	as approved by the commissioner of Iron Range resources and rehabilitation after consultation 
165.5 	with the Iron Range Resources and Rehabilitation Board. For purposes of this section, 
165.6 	"qualified school projects" means school projects within the taconite assistance area as 
165.7 	defined in section 273.1341, that were (1) approved, by referendum, after April 3, 2006; 
165.8 	and (2) approved by the commissioner of education pursuant to section 123B.71.
165.9 	(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for 
165.10 	bonds issued under section 123A.482, subdivision 9, must be increased each year to offset 
165.11 	any reduction in debt service equalization aid that the school district qualifies for in that 
165.12 	year, under section 123B.53, subdivision 6, compared with the amount the school district 
165.13 	qualified for in fiscal year 2018.
165.14 	(d) No expenditure under this section shall be made unless approved by the commissioner 
165.15 	of Iron Range resources and rehabilitation after consultation with the Iron Range Resources 
165.16 	and Rehabilitation Board.

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

165.18 	Sec. 9. Minnesota Statutes 2022, section 298.28, is amended by adding a subdivision to 
165.19 	read:
165.20 		Subd. 16.Transfer. Of the amount annually distributed to the Douglas J. Johnson 
165.21 	Economic Protection Trust Fund under this section, $3,500,000 shall be transferred to the 
165.22 	Iron Range school consolidation and cooperatively operated school account under subdivision 
165.23 	7a. Any remaining amount of the amount annually distributed to the Douglas J. Johnson 
165.24 	Economic Protection Trust Fund shall be transferred to the Iron Range resources and 
165.25 	rehabilitation account under subdivision 7. The transfers under this subdivision must be 
165.26 	made within ten days of the August payment.

165.27 	EFFECTIVE DATE. This section is effective beginning with production year 2023.

165.28 	Sec. 10. Minnesota Statutes 2022, section 298.296, subdivision 4, is amended to read:
165.29 		Subd. 4.Temporary loan authority. (a) After consultation with the advisory board, 
165.30 	the commissioner may use up to $7,500,000 from the corpus of the trust for loans, loan 
165.31 	guarantees, grants, or equity investments as provided in this subdivision. The money would 
165.32 	be available for loans for construction and equipping of facilities constituting (1) a value 
166.1 	added iron products plant, which may be either a new plant or a facility incorporated into 
166.2 	an existing plant that produces iron upgraded to a minimum of 75 percent iron content or 
166.3 	any iron alloy with a total minimum metallic content of 90 percent; or (2) a new mine or 
166.4 	minerals processing plant for any mineral subject to the net gross proceeds tax imposed 
166.5 	under section 298.015. A loan or loan guarantee under this paragraph may not exceed 
166.6 	$5,000,000 for any facility.
166.7 	(b) Additionally, the commissioner, after consultation with the advisory board, may use 
166.8 	up to $5,500,000 from the corpus of the trust for additional grants, loans, loan guarantees, 
166.9 	or equity investments for the purposes set forth in paragraph (a).
166.10 	(c) The commissioner, after consultation with the advisory board, may require that the 
166.11 	fund receive an equity percentage in any project to which it contributes under this section.

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

166.13 	Sec. 11. TRANSFER 2023 DISTRIBUTION ONLY; PROPERTY TAX RELIEF 
166.14 	ACCOUNT.
 166.15 	(a) The fund established under Minnesota Statutes, section 298.28, subdivision 7, shall 
166.16 	receive the excess balance remaining in the fund established under Minnesota Statutes, 
166.17 	section 298.28, subdivision 6, after the distribution of amounts required under Minnesota 
166.18 	Statutes, section 298.28, subdivision 6, for the 2023 distribution. The transfer amount under 
166.19 	this section must not exceed $6,000,000 and must be made within ten days of the August 
166.20 	2023 payment. The commissioner of Iron Range resources and rehabilitation must distribute 
166.21 	these transferred funds as outlined in this section. The uses listed are not subject to review 
166.22 	or recommendation by the Iron Range Resources and Rehabilitation Board. The commissioner 
166.23 	must distribute the funds for the following uses:
166.24 	(1) $250,000 to St. Louis County for a grant to the St. Louis County Agricultural Society 
166.25 	for construction and furnishing of a facility to house a food booth and equipment for the 
166.26 	St. Louis County 4-H Club;
166.27 	(2) $100,000 to Alborn Snow Devils Inc. for trail grooming costs and equipment;
166.28 	(3) $300,000 to School District No. 2142, St. Louis County Schools, for the purchase 
166.29 	and installation of lights at the Cherry School baseball and softball fields;
166.30 	(4) $150,000 to the Seitaniemi Housebarn and Sisu Heritage Site for facility upgrades;
166.31 	(5) $600,000 to the city of Aurora for downtown beautification projects, as outlined in 
166.32 	paragraph (c);
167.1 	(6) $500,000 to School District No. 2142, St. Louis County Schools, for wastewater 
167.2 	upgrades at the South Ridge School;
167.3 	(7) $500,000 to the city of Mountain Iron for the Outdoor Recreation Center;
167.4 	(8) $100,000 to the city of Buhl for capital improvements to the city hall;
167.5 	(9) $150,000 to School District No. 712, Mountain Iron-Buhl Public School, for fitness 
167.6 	equipment and capital upgrades to the fitness center;
167.7 	(10) $100,000 to the Mesabi Sno Voyageurs Snowmobile Club for trail grooming costs 
167.8 	and equipment;
167.9 	(11) $100,000 to the PathBlazers Snowmobile Club for trail grooming costs and 
167.10 	equipment;
167.11 	(12) $100,000 to the Ely Igloo Snowmobile Club for trail grooming costs and equipment;
167.12 	(13) $100,000 to the Voyageur Trail Society, Inc. for trail grooming costs and equipment;
167.13 	(14) $200,000 to Veterans On The Lake Resort for cabin accessibility upgrades, a 
167.14 	handicap dock, tennis court repaving, and replacement of an underground power cable;
167.15 	(15) $650,000 to School District No. 2142, St. Louis County Schools, for wastewater 
167.16 	upgrades at the North Woods School;
167.17 	(16) $200,000 to the City of Babbitt for capital improvements to city-owned buildings;
167.18 	(17) $750,000 to the Boundary Waters Care Center for capital equipment purchases;
167.19 	(18) $800,000 to the Cook County Historical Society to predesign, design, construct, 
167.20 	furnish, and equip the renovation of the following Historic Cook County sites: (i) the Cook 
167.21 	County History Museum; (ii) the Johnson Heritage Post Art Gallery; (iii) the Bally 
167.22 	Blacksmith Shop; (iv) the St. Francis Xavier Church, also known as the Chippewa City 
167.23 	Church; and (v) 1930s Nee-Gee Fishing Tug and Fish House; and to complete design for 
167.24 	and to construct, furnish, and equip a new collections storage facility in Cook County;
167.25 	(19) $100,000 to the Virginia Community Foundation for the Mesabi Fit Coalition to 
167.26 	rehabilitate the former Mesabi Family YMCA building;
167.27 	(20) $50,000 to the United States Hockey Hall of Fame Museum Inc. for capital 
167.28 	improvements;
167.29 	(21) $100,000 to the Ranger Snowmobile and ATV Club for trail grooming costs and 
167.30 	equipment; and
168.1 	(22) $100,000 to the Crane Lake Voyageurs Snowmobile Club for trail grooming costs 
168.2 	and equipment.
168.3 	(b) If the amount of the transfer under paragraph (a) is less than $6,000,000, each of the 
168.4 	uses in paragraph (a), clauses (1) to (22), must be proportionally reduced so that the total 
168.5 	amount distributed under those clauses does not exceed the amount of the transfer.
168.6 	(c) The city of Aurora must use the funds received under this section for improvements 
168.7 	to city-owned property in the downtown area and to establish a grant program to businesses 
168.8 	for front entrance enhancements and exterior storefront improvements. The grants may 
168.9 	award no more than $25,000 to a business. All improvements under this paragraph must be 
168.10 	made along St. Louis County State-Aid Highway 100 (3rd Avenue North and Main Street), 
168.11 	from marked Trunk Highway 135 to St. Louis County State-Aid Highway 110.
168.12 	(d) The funds under paragraph (a), clause (19), must only be distributed if the Virginia 
168.13 	Community Foundation purchases the former Mesabi Family YMCA building.

168.14 	EFFECTIVE DATE. This section is effective the day following final enactment and 
168.15 	applies only to the 2023 distribution.

168.16 	Sec. 12. TRANSFER 2023 DISTRIBUTION ONLY; DOUGLAS J. JOHNSON 
168.17 	ECONOMIC PROTECTION TRUST FUND.
 168.18 	Of the funds distributed to the Douglas J. Johnson Economic Protection Trust Fund 
168.19 	under Minnesota Statutes, section 298.28, for the 2023 distribution only, an amount equal 
168.20 	to $3,500,000 shall be transferred from the Douglas J. Johnson Economic Protection Trust 
168.21 	Fund to the Iron Range school consolidation and cooperatively operated school account 
168.22 	under Minnesota Statutes, section 298.28, subdivision 7a. The transfer must be made within 
168.23 	ten days of the August 2023 payment.

168.24 	EFFECTIVE DATE. This section is effective the day following final enactment and 
168.25 	applies only to the 2023 distribution.

168.26 	ARTICLE 7
168.27 	TAX INCREMENT FINANCING

168.28 	Section 1. Minnesota Statutes 2022, section 469.174, subdivision 27, is amended to read:
168.29 		Subd. 27.Small city. "Small city" means any home rule charter or statutory city that 
168.30 	has a population of 5,000 or less and that is located ten five miles or more from a home rule 
168.31 	charter or statutory city, located in this state, with a population of 10,000 or more. For 
169.1 	purposes of this definition, the distance between cities is measured by drawing a straight 
169.2 	line from the nearest boundaries of the two cities.

169.3 	EFFECTIVE DATE. This section is effective for districts for which the request for 
169.4 	certification was made after July 1, 2023.

169.5 	Sec. 2. Laws 2003, chapter 127, article 10, section 31, subdivision 1, as amended by Laws 
169.6 	2008, chapter 366, article 5, section 21, and Laws 2019, First Special Session chapter 6, 
169.7 	article 7, section 1, is amended to read:
169.8 		Subdivision 1. District extension. (a) The governing body of the city of Hopkins may 
169.9 	elect to extend the duration of its redevelopment tax increment financing district 2-11 by 
169.10 	up to four additional years.
169.11 	(b) Notwithstanding Minnesota Statutes, section 469.1763, subdivision 2, effective upon 
169.12 	approval of this subdivision, no increments may be spent on activities located outside of 
169.13 	the area of the district, other than:
169.14 	(1) to pay administrative expenses, not to exceed ten percent of the total tax increments 
169.15 	from the district; or
169.16 	(2) to pay the costs of housing or redevelopment activities that are consistent with 
169.17 	Minnesota Statutes, section 469.176, subdivision 4j, provided that expenditures under this 
169.18 	clause may not exceed 2025 percent of the total tax increments from the district.
169.19 	The total amount of increment that may be spent on activities located outside the area of 
169.20 	the district under this section shall be limited to 25 28 percent.

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

169.24 	Sec. 3. Laws 2008, chapter 366, article 5, section 26, as amended by Laws 2013, chapter 
169.25 	143, article 9, section 11, and Laws 2019, First Special Session chapter 6, article 7, section 
169.26 	2, is amended to read:
169.27 	Sec. 26. BLOOMINGTON TAX INCREMENT FINANCING; FIVE-YEAR RULE.
 169.28 	(a) The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that 
169.29 	activities must be undertaken within a five-year period from the date of certification of a 
169.30 	tax increment financing district, are increased to a 21-year26-year period for the Port 
169.31 	Authority of the City of Bloomington's Tax Increment Financing District No. 1-I, 
170.1 	Bloomington Central Station. The requirements of Minnesota Statutes, section 469.1763, 
170.2 	subdivision 4, relating to the use of increment after the expiration of the five-year rule, is 
170.3 	extended to the 27th year.
170.4 	(b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any other 
170.5 	law to the contrary, the city of Bloomington and its port authority may extend the duration 
170.6 	limits of the district for a period through December 31, 2039 2044.
170.7 	(c) Effective for taxes payable in 2014, tax increment for the district must be computed 
170.8 	using the current local tax rate, notwithstanding the provisions of Minnesota Statutes, section 
170.9 	469.177, subdivision 1a.

170.10 	EFFECTIVE DATE. This section is effective upon compliance by the city of 
170.11 	Bloomington, Hennepin County, and Independent School District No. 271 with the 
170.12 	requirements of Minnesota Statutes, section 469.1782, subdivision 2.

170.13 	Sec. 4. Laws 2008, chapter 366, article 5, section 36, subdivision 1, is amended to read:
170.14 		Subdivision 1.Authorization. Notwithstanding the provisions of any other law, upon 
170.15 	approval of the governing body of the city of St. Paul, the Housing and Redevelopment 
170.16 	Authority of the city of St. Paul may establish a redevelopment tax increment financing 
170.17 	district comprised of the properties included in the existing downtown and Seventh Place 
170.18 	tax increment district (County #82). Notwithstanding Minnesota Statutes, section 469.177, 
170.19 	subdivision 6, if certification of the district is requested by July 31, 2008, the certification 
170.20 	will be recognized by the county auditor in determining local tax rates for taxes payable in 
170.21 	2009 and subsequent years. The district created under this section terminates December 31, 
170.22 	2023 2033. The city may create the district under this section only if it enters into an 
170.23 	agreement with Ramsey County to pay the county annually out of the increment from this 
170.24 	district an amount equal to the tax that would have been payable to the county on the captured 
170.25 	tax capacity of the district had the district not been created.

170.26 	EFFECTIVE DATE. This section is effective upon compliance by the city of St. Paul, 
170.27 	Ramsey County, and Independent School District No. 625 with the requirements of Minnesota 
170.28 	Statutes, section 469.1782, subdivision 2.

170.29 	Sec. 5. Laws 2008, chapter 366, article 5, section 36, subdivision 3, as amended by Laws 
170.30 	2014, chapter 150, article 5, section 5, is amended to read:
170.31 		Subd. 3.Authorized expenditures. Tax increment from the district may be expended 
170.32 	only to pay principal and interest on bond obligations issued by the city of St. Paul in 2009 
171.1 	for the RiverCentre Arena, including payment of principal and interest on any bonds issued 
171.2 	to repay the bonds or loans, as amended in 2014, but only through taxes payable year 2023. 
171.3 	Commencing with taxes payable year 2024, tax increments from the district may be expended 
171.4 	to facilitate capital improvements within the city's RiverCentre complex, including but not 
171.5 	limited to the St. Paul RiverCentre, Xcel Energy Center, Roy Wilkins Auditorium, and St. 
171.6 	Paul RiverCentre Parking Ramp and adjacent areas controlled by the city. All such 
171.7 	expenditures are deemed to be activities within the district under Minnesota Statutes, section 
171.8 	469.1763, subdivisions 2, 3, and 4.

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

171.12 	Sec. 6. Laws 2014, chapter 308, article 6, section 12, subdivision 2, is amended to read:
171.13 		Subd. 2.Special rules. (a) If the city elects, upon the adoption of the tax increment 
171.14 	financing plan for a district, the rules under this section apply to a redevelopment district, 
171.15 	renewal and renovation district, soil condition district, or soil deficiency district established 
171.16 	by the city or a development authority of the city in the project area.
171.17 	(b) Prior to or upon the adoption of the first tax increment plan subject to the special 
171.18 	rules under this subdivision, the city must find by resolution that parcels consisting of at 
171.19 	least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way, 
171.20 	are characterized by one or more of the following conditions:
171.21 	(1) peat or other soils with geotechnical deficiencies that impair development of 
171.22 	commercial buildings or infrastructure;
171.23 	(2) soils or terrain that require substantial filling in order to permit the development of 
171.24 	commercial buildings or infrastructure;
171.25 	(3) landfills, dumps, or similar deposits of municipal or private waste;
171.26 	(4) quarries or similar resource extraction sites;
171.27 	(5) floodway; and
171.28 	(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174, 
171.29 	subdivision 10.
171.30 	(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the 
171.31 	relevant condition if at least 70 percent of the area of the parcel contains the relevant 
171.32 	condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by 
172.1 	substandard buildings if substandard buildings occupy at least 30 percent of the area of the 
172.2 	parcel.
172.3 	(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is 
172.4 	extended to eight 12 years for any district,; the five-year rule under Minnesota Statutes, 
172.5 	section 469.175, subdivision 4, paragraph (f), is extended to nine years for any district; and 
172.6 	Minnesota Statutes, section 469.1763, subdivision 4, does not apply to any district.
172.7 	(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763, 
172.8 	subdivision 2, paragraph (a), not more than 40 percent of the total revenue derived from tax 
172.9 	increments paid by properties in any district, measured over the life of the district, may be 
172.10 	expended on activities outside the district but within the project area.
172.11 	(f) For a soil deficiency district:
172.12 	(1) increments may be collected through 20 years after the receipt by the authority of 
172.13 	the first increment from the district;
172.14 	(2) increments may be used only to:
172.15 	(i) acquire parcels on which the improvements described in item (ii) will occur;
172.16 	(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional 
172.17 	cost of installing public improvements directly caused by the deficiencies; and
172.18 	(iii) pay for the administrative expenses of the authority allocable to the district; and
172.19 	(3) any parcel acquired with increments from the district must be sold at no less than 
172.20 	their fair market value.
172.21 	(g) Increments spent for any infrastructure costs, whether inside a district or outside a 
172.22 	district but within the project area, are deemed to satisfy the requirements of Minnesota 
172.23 	Statutes, section 469.176, subdivision 4j.
172.24 	(h) The authority to approve tax increment financing plans to establish tax increment 
172.25 	financing districts under this section expires June 30, 2020.

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

173.1 	Sec. 7. Laws 2019, First Special Session chapter 6, article 7, section 7, is amended to read:
173.2 	Sec. 7. CITY OF DULUTH; TAX INCREMENT FINANCING DISTRICT; SPECIAL 
173.3 	RULES AUTHORIZATION.
 173.4 		Subdivision 1.Establishment. The city of Duluth or the Duluth Economic Development 
173.5 	Authority may establish, by resolution, one not more than two redevelopment tax increment 
173.6 	financing district districts located in the city of Duluth, St. Louis County, Minnesota, within 
173.7 	the area bordered on the northeast by Slip 3 and the Pier B Resort property line extended 
173.8 	northwest to Interstate 35, on the southeast by the Duluth Harbor, on the southwest by the 
173.9 	Compass Minerals property line extended northwest to Interstate 35, and on the northwest 
173.10 	by Interstate 35, together with adjacent roads and rights-of-way; and such property is deemed 
173.11 	to meet the requirements of Minnesota Statutes, section 469.174, subdivision 10.
173.12 		Subd. 2.Eligible expenditures. Expenditures incurred in connection with the 
173.13 	development of the property described in subdivision 1 are deemed to meet the requirements 
173.14 	of Minnesota Statutes, section 469.176, subdivision 4j. Eligible expenditures for any tax 
173.15 	increment financing district established in the area described in subdivision 1 include, 
173.16 	without limitation, seawalls and pier facings adjacent to the boundaries of such district.
173.17 		Subd. 3.Duration. Notwithstanding Minnesota Statutes, section 469.176, subdivision 
173.18 	1b, or any other law to the contrary, the city of Duluth or its economic development authority 
173.19 	may extend the duration limit of a district established under subdivision 1 by five years.

173.20 	EFFECTIVE DATE. (a) The amendment to subdivision 1 is effective the day after the 
173.21 	governing body of the city of Duluth and its chief clerical officer comply with Minnesota 
173.22 	Statutes, section 645.021, subdivisions 2 and 3.
173.23 	(b) Subdivision 3 is effective upon compliance by the city of Duluth, St. Louis County, 
173.24 	and Independent School District No. 709 with the requirements of Minnesota Statutes, 
173.25 	section 469.1782, subdivision 2.

173.26 	Sec. 8. Laws 2021, First Special Session chapter 14, article 9, section 10, is amended to 
173.27 	read:
173.28 	Sec. 10. CITY OF RAMSEY; TAX INCREMENT FINANCING DISTRICT NO. 
173.29 	14; FIVE-YEAR RULE EXTENSION.
 173.30 	(a) The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities 
173.31 	must be undertaken within a five-year period from the date of certification of a tax increment 
174.1 	financing district, is extended by a two-year five-year period to November 28, 2023 2026, 
174.2 	for Tax Increment Financing District No. 14 administered by the city of Ramsey.
174.3 	(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, relating 
174.4 	to the use of increment after the expiration of the five-year period under Minnesota Statutes, 
174.5 	section 469.1763, subdivision 3, is extended to the 13th 16th year for Tax Increment 
174.6 	Financing District No. 14.

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

174.10 	Sec. 9. CITY OF CHATFIELD; TIF AUTHORITY; ECONOMIC DEVELOPMENT 
174.11 	AUTHORIZATION.
 174.12 	Notwithstanding Minnesota Statutes, section 469.176, subdivision 4c, paragraph (b), or 
174.13 	any other law to the contrary, the city of Chatfield or its economic development authority 
174.14 	may establish an economic development district to construct a multilevel hotel on Mill 
174.15 	Creek Road and Division Street NW, south of Trunk Highway 30, in the city of Chatfield, 
174.16 	Olmsted County, provided that the first floor of the hotel does not exceed 15,000 square 
174.17 	feet. For purposes of this section, "first floor" means the floor at street level where the public 
174.18 	is permitted to enter and exit.

174.19 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
174.20 	city of Chatfield and its chief clerical officer comply with the requirements of Minnesota 
174.21 	Statutes, section 645.021, subdivisions 2 and 3.

174.22 	Sec. 10. CITY OF DULUTH; TAX INCREMENT FINANCING DISTRICT; 
174.23 	SPECIAL RULES.
 174.24 		Subdivision 1.Establishment. Under the special rules established in subdivision 2, the 
174.25 	economic development authority of the city of Duluth or the city of Duluth may establish 
174.26 	one or more redevelopment districts located wholly within the area of the city of Duluth, 
174.27 	St. Louis County, Minnesota, limited to the area classified as the Medical Regional Exchange 
174.28 	District and East 1st Street Corridor as bounded by: East 6th Street from North 3rd Avenue 
174.29 	East to North 7th Avenue East; North 7th Avenue East from East 6th Street to East 3rd 
174.30 	Street; East 3rd Street from North 7th Avenue East to North 12th Avenue East; North 12th 
174.31 	Avenue East from East 3rd Street straight through the Duluth Rose Garden to the Lake 
174.32 	Superior Waterfront; the Lake Superior waterfront from the Duluth Rose Garden at North 
174.33 	12th Avenue East to Lake Place Park at North 3rd Avenue East; North 3rd Avenue East 
175.1 	from Lake Place Park at the Lake Superior waterfront to East Superior Street; East Superior 
175.2 	Street from North 3rd Avenue East to North Lake Avenue; North Lake Avenue from East 
175.3 	Superior Street to East 2nd Street; East 2nd Street from North Lake Avenue to North 3rd 
175.4 	Avenue East; North 3rd Ave East from East 2nd Street to East 6th Street.
175.5 		Subd. 2.Special rules. If the city or authority establishes a redevelopment tax increment 
175.6 	financing district under this section, the following special rules apply:
175.7 	(1) the district is deemed to meet all the requirements of Minnesota Statutes, section 
175.8 	469.174, subdivision 10; and
175.9 	(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.

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

175.13 	Sec. 11. CITY OF FRIDLEY; TAX INCREMENT FINANCING DISTRICT; 
175.14 	SPECIAL RULES.
 175.15 		Subdivision 1.Transfer of increment. Notwithstanding Minnesota Statutes, section 
175.16 	469.176, subdivision 4j, the city of Fridley or its economic development authority may 
175.17 	transfer tax increment accumulated from Fridley Tax Increment Financing District No. 20 
175.18 	to the Fridley Housing and Redevelopment Authority for the purposes authorized in 
175.19 	subdivision 2. Only increment allowed to be expended outside of the district pursuant to 
175.20 	Minnesota Statutes, section 469.1763, subdivision 2, may be transferred under this section.
175.21 		Subd. 2.Allowable use. Tax increment transferred under subdivision 1 must be used 
175.22 	only to:
175.23 	(1) make grants, loans, and loan guarantees for the development, rehabilitation, or 
175.24 	financing of housing; or
175.25 	(2) match other funds from federal, state, or private resources for housing projects.
175.26 		Subd. 3.Annual financial reporting. Tax increment transferred under this section is 
175.27 	subject to the annual reporting requirements under Minnesota Statutes, section 469.175, 
175.28 	subdivision 6.
175.29 		Subd. 4.Legislative reports. By February 1, 2025, and February 1, 2027, the city of 
175.30 	Fridley must issue a report to the chairs and ranking minority members of the legislative 
175.31 	committees with jurisdiction over taxes and property taxes. Each report must include detailed 
175.32 	information relating to each program financed with increment transferred under this section.
176.1 		Subd. 5.Expiration. The authority to make transfers under subdivision 1 expires 
176.2 	December 31, 2027.

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

176.6 	Sec. 12. CITY OF PLYMOUTH; TIF AUTHORITY.
 176.7 		Subdivision 1.Establishment. Under the special rules established in subdivision 2, the 
176.8 	city of Plymouth may establish not more than two redevelopment districts located wholly 
176.9 	within the city of Plymouth, Hennepin County, Minnesota, limited to the following parcels 
176.10 	identified by tax identification numbers: 34-119-22-44-0002, 03-118-22-12-0002, 
176.11 	03-118-22-11-0007, 02-118-22-22-0005, and 03-118-22-14-0032, together with adjacent 
176.12 	roads and rights-of-way.
176.13 		Subd. 2.Special rules. If the city establishes a tax increment financing district under 
176.14 	this section, the following special rules apply:
176.15 	(1) the district is deemed to meet the requirements of Minnesota Statutes, section 469.174, 
176.16 	subdivision 10;
176.17 	(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district; 
176.18 	and
176.19 	(3) not more than 75 percent of increments generated from the district may be expended 
176.20 	on improvements to Chankahda Trail, formerly known as Hennepin County Road 47, outside 
176.21 	the project area, and all such expenditures are deemed expended on activities within the 
176.22 	district for the purposes of Minnesota Statutes, section 469.1763.
176.23 		Subd. 3.Expiration. The authority to approve a tax increment financing plan to establish 
176.24 	a tax increment financing district under this section expires December 31, 2030.

176.25 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
176.26 	city of Plymouth and its chief clerical officer comply with Minnesota Statutes, section 
176.27 	645.021, subdivisions 2 and 3.

176.28 	Sec. 13. CITY OF SHAKOPEE; TAX INCREMENT FINANCING DISTRICT.
 176.29 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
176.30 	the meanings given.
176.31 	(b) "City" means the city of Shakopee.
177.1 	(c) "Project area" means the following parcels, identified by parcel identification numbers: 
177.2 	279160102, 279160110, 279170020, and 279160120.
177.3 	(d) "Soil deficiency district" means a type of tax increment financing district consisting 
177.4 	of a portion of the project area in which the city finds by resolution that the following 
177.5 	conditions exist:
177.6 	(1) unusual terrain or soil deficiencies that occurred over 70 percent of the acreage in 
177.7 	the district require substantial filling, grading, or other physical preparation for use; and
177.8 	(2) the estimated cost of the physical preparation under clause (1), excluding costs 
177.9 	directly related to roads as defined in Minnesota Statutes, section 160.01, and local 
177.10 	improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, clauses 
177.11 	(1) to (7) and (11) to (22), and 430.01, exceeds the fair market value of the land before 
177.12 	completion of the preparation.
177.13 		Subd. 2.Special rules. (a) If the city elects, upon the adoption of the tax increment 
177.14 	financing plan for a district, the rules under this section apply to a redevelopment district, 
177.15 	renewal and renovation district, soil condition district, or soil deficiency district established 
177.16 	by the city or a development authority of the city in the project area. The city, or a 
177.17 	development authority acting on its behalf, may establish one or more soil deficiency districts 
177.18 	within the project area.
177.19 	(b) Prior to or upon the adoption of the first tax increment plan subject to the special 
177.20 	rules under this subdivision, the city must find by resolution that parcels consisting of at 
177.21 	least 70 percent of the acreage of the project area, excluding street and railroad rights-of-way, 
177.22 	are characterized by one or more of the following conditions:
177.23 	(1) peat or other soils with geotechnical deficiencies that impair development of 
177.24 	residential or commercial buildings or infrastructure;
177.25 	(2) soils or terrain that requires substantial filling in order to permit the development of 
177.26 	residential or commercial buildings or infrastructure;
177.27 	(3) landfills, dumps, or similar deposits of municipal or private waste;
177.28 	(4) quarries or similar resource extraction sites;
177.29 	(5) floodways; and
177.30 	(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174, 
177.31 	subdivision 10.
178.1 	(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the 
178.2 	relevant condition if at least 60 percent of the area of the parcel contains the relevant 
178.3 	condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by 
178.4 	substandard buildings if substandard buildings occupy at least 30 percent of the area of the 
178.5 	parcel.
178.6 	(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is 
178.7 	extended to ten years for any district, and the period under Minnesota Statutes, section 
178.8 	469.1763, subdivision 4, is extended to 11 years.
178.9 	(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763, 
178.10 	subdivision 2, paragraph (a), not more than 80 percent of the total revenue derived from tax 
178.11 	increments paid by properties in any district, measured over the life of the district, may be 
178.12 	expended on activities outside the district but within the project area.
178.13 	(f) For a soil deficiency district:
178.14 	(1) increments may be collected through 20 years after the receipt by the authority of 
178.15 	the first increment from the district; and
178.16 	(2) except as otherwise provided in this subdivision, increments may be used only to:
178.17 	(i) acquire parcels on which the improvements described in item (ii) will occur;
178.18 	(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional 
178.19 	cost of installing public improvements directly caused by the deficiencies; and
178.20 	(iii) pay for the administrative expenses of the authority allocable to the district.
178.21 	(g) The authority to approve tax increment financing plans to establish tax increment 
178.22 	financing districts under this section expires December 31, 2026.

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

178.26 	Sec. 14. CITY OF WEST ST. PAUL; TIF AUTHORITY.
 178.27 		Subdivision 1.Establishment. Under the special rules established in subdivision 2, the 
178.28 	economic development authority of the city of West St. Paul or the city of West St. Paul 
178.29 	may establish one or more redevelopment tax increment financing districts consisting of 
178.30 	the parcels in the city of West St. Paul, Dakota County, Minnesota, currently identified with 
178.31 	the following parcel identification numbers: 42-83680-01-011, 42-11561-00-010, 
179.1 	42-11561-01-010, 42-11560-01-021, 42-11561-00-020, and 42-11560-01-022, as the same 
179.2 	may be replatted or reconfigured, together with adjacent roads and rights-of-way.
179.3 		Subd. 2.Special rules. If the city or authority establishes one or more tax increment 
179.4 	financing districts under this section, the following special rules apply:
179.5 	(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section 
179.6 	469.174, subdivision 10; and
179.7 	(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.

179.8 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
179.9 	city of West St. Paul and its chief clerical officer comply with Minnesota Statutes, section 
179.10 	645.021, subdivisions 2 and 3.

179.11 	Sec. 15. CITY OF WOODBURY; TAX INCREMENT FINANCING DISTRICT 
179.12 	NO. 13; EXPENDITURES ALLOWED; DURATION EXTENSION.
 179.13 	(a) Notwithstanding Minnesota Statutes, section 469.1763, subdivision 2, or any other 
179.14 	law to the contrary, the city of Woodbury may expend increments generated from Tax 
179.15 	Increment Financing District No. 13 for the maintenance, and facility and infrastructure 
179.16 	upgrades to Central Park. All such expenditures are deemed expended on activities within 
179.17 	the district.
179.18 	(b) Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, the city of 
179.19 	Woodbury may elect to extend the duration of Tax Increment Financing District No. 13 by 
179.20 	five years.

179.21 	EFFECTIVE DATE. Paragraph (a) is effective the day after the governing body of the 
179.22 	city of Woodbury and its chief clerical officer comply with the requirements of Minnesota 
179.23 	Statutes, section 645.021, subdivisions 2 and 3. Paragraph (b) is effective upon compliance 
179.24 	by the city of Woodbury, Washington County, and Independent School District No. 833 
179.25 	with the requirements of Minnesota Statutes, section 469.1782, subdivision 2.

179.26 	ARTICLE 8
179.27 	OFFICE OF THE STATE AUDITOR: TAX INCREMENT FINANCING GENERAL 
179.28 	LAW MODIFICATIONS

179.29 	Section 1. Minnesota Statutes 2022, section 469.174, subdivision 14, is amended to read:
179.30 		Subd. 14.Administrative expenses. (a) "Administrative expenses" or "administrative 
179.31 	costs" means alldocumented expenditures of an authority other than or municipality, 
179.32 	including but not limited to:
180.1 	(1) amounts paid for services provided by bond counsel, fiscal consultants, and economic 
180.2 	development consultants;
180.3 	(2) allocated expenses and staff time of the authority or municipality for administering 
180.4 	a project, including but not limited to preparing the tax increment financing plan, negotiating 
180.5 	and preparing agreements, accounting for segregated funds of the district, preparing and 
180.6 	submitting required reporting for the district, and reviewing and monitoring compliance 
180.7 	with sections 469.174 to 469.1794;
180.8 	(3) amounts paid to publish annual disclosures and provide notices under section 469.175;
180.9 	(4) amounts to provide for the usual and customary maintenance and operation of 
180.10 	properties purchased with tax increments, including necessary reserves for repairs and the 
180.11 	cost of any insurance;
180.12 	(5) amounts allocated or paid to prepare a development action response plan for a soils 
180.13 	condition district or hazardous substance subdistrict; and
180.14 	(6) amounts used to pay bonds, interfund loans, or other financial obligations to the 
180.15 	extent those obligations were used to finance costs described in clauses (1) to (5).
180.16 	(b) Administrative expenses and administrative costs do not include:
180.17 	(1) amounts paid for the purchase of land or buildings;
180.18 	(2) amounts paid to contractors or others providing materials and services, including 
180.19 	architectural and engineering services, directly connected with the physical development 
180.20 	of the real property in the project, including architectural and engineering services and 
180.21 	materials and services for demolition, soil correction, and the construction or installation 
180.22 	of public improvements;
180.23 	(3) relocation benefits paid to or services provided for persons residing or businesses 
180.24 	located in the project;
180.25 	(4) amounts used to pay principal or interest on, fund a reserve for, or sell at a discount 
180.26 	bonds issued pursuant to section 469.178; or
180.27 	(5) (4) amounts paid for property taxes or payments in lieu of taxes; and
180.28 	(5) amounts used to pay principal or interest on, fund a reserve for, or sell at a discount 
180.29 	bonds issued pursuant to section 469.178 or other financial obligations to the extent those 
180.30 	obligations were used to finance costs described in clauses (1) to (3) (4).
181.1 	For districts for which the requests for certifications were made before August 1, 1979, 
181.2 	or after June 30, 1982, "administrative expenses" includes amounts paid for services provided 
181.3 	by bond counsel, fiscal consultants, and planning or economic development consultants.
181.4 	This definition does not apply to administrative expenses or administrative costs referenced 
181.5 	under section 469.176, subdivision 4h.

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

181.8 	Sec. 2. Minnesota Statutes 2022, section 469.174, is amended by adding a subdivision to 
181.9 	read:
181.10 		Subd. 30.Pay-as-you-go contract and note. "Pay-as-you-go contract and note" means 
181.11 	a written note or contractual obligation under which all of the following apply:
181.12 	(1) the note or contractual obligation evidences an authority's commitment to reimburse 
181.13 	a developer, property owner, or note holder for the payment of costs of activities, including 
181.14 	any interest on unreimbursed costs;
181.15 	(2) the reimbursement is made from tax increment revenues identified in the note or 
181.16 	contractual obligation as received by a municipality or authority as taxes are paid; and
181.17 	(3) the risk that available tax increments may be insufficient to fully reimburse the costs 
181.18 	is borne by the developer, property owner, or note holder.

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

181.20 	Sec. 3. Minnesota Statutes 2022, section 469.175, subdivision 6, is amended to read:
181.21 		Subd. 6.Annual financial reporting. (a) The state auditor shall develop a uniform 
181.22 	system of accounting and financial reporting for tax increment financing districts. The 
181.23 	system of accounting and financial reporting shall, as nearly as possible:
181.24 	(1) provide for full disclosure of the sources and uses of tax increments of the district;
181.25 	(2) permit comparison and reconciliation with the affected local government's accounts 
181.26 	and financial reports;
181.27 	(3) permit auditing of the funds expended on behalf of a district, including a single 
181.28 	district that is part of a multidistrict project or that is funded in part or whole through the 
181.29 	use of a development account funded with tax increments from other districts or with other 
181.30 	public money;
182.1 	(4) be consistent with generally accepted accounting principles.
182.2 	(b) The authority must annually submit to the state auditor a financial report in compliance 
182.3 	with paragraph (a). Copies of the report must also be provided to the county auditor and to 
182.4 	the governing body of the municipality, if the authority is not the municipality. To the extent 
182.5 	necessary to permit compliance with the requirement of financial reporting, the county and 
182.6 	any other appropriate local government unit or private entity must provide the necessary 
182.7 	records or information to the authority or the state auditor as provided by the system of 
182.8 	accounting and financial reporting developed pursuant to paragraph (a). The authority must 
182.9 	submit the annual report for a year on or before August 1 of the next year.
182.10 	(c) The annual financial report must also include the following items:
182.11 	(1) the original net tax capacity of the district and any subdistrict under section 469.177, 
182.12 	subdivision 1;
182.13 	(2) the net tax capacity for the reporting period of the district and any subdistrict;
182.14 	(3) the captured net tax capacity of the district;
182.15 	(4) any fiscal disparity deduction from the captured net tax capacity under section 
182.16 	469.177, subdivision 3;
182.17 	(5) the captured net tax capacity retained for tax increment financing under section 
182.18 	469.177, subdivision 2, paragraph (b), clause (1);
182.19 	(6) any captured net tax capacity distributed among affected taxing districts under section 
182.20 	469.177, subdivision 2, paragraph (b), clause (2);
182.21 	(7) the type of district;
182.22 	(8) the date the municipality approved the tax increment financing plan and the date of 
182.23 	approval of any modification of the tax increment financing plan, the approval of which 
182.24 	requires notice, discussion, a public hearing, and findings under subdivision 4, paragraph 
182.25 	(a);
182.26 	(9) the date the authority first requested certification of the original net tax capacity of 
182.27 	the district and the date of the request for certification regarding any parcel added to the 
182.28 	district;
182.29 	(10) the date the county auditor first certified the original net tax capacity of the district 
182.30 	and the date of certification of the original net tax capacity of any parcel added to the district;
182.31 	(11) the month and year in which the authority has received or anticipates it will receive 
182.32 	the first increment from the district;
183.1 	(12) the date the district must be decertified;
183.2 	(13) for the reporting period and prior years of the district, the actual amount received 
183.3 	from, at least, the following categories:
183.4 	(i) tax increments paid by the captured net tax capacity retained for tax increment 
183.5 	financing under section 469.177, subdivision 2, paragraph (b), clause (1), but excluding any 
183.6 	excess taxes;
183.7 	(ii) tax increments that are interest or other investment earnings on or from tax increments;
183.8 	(iii) tax increments that are proceeds from the sale or lease of property, tangible or 
183.9 	intangible, purchased by the authority with tax increments;
183.10 	(iv) tax increments that are repayments of loans or other advances made by the authority 
183.11 	with tax increments;
183.12 	(v) bond proceeds; and
183.13 	(vi) the agricultural homestead market value credit paid to the authority under section 
183.14 	273.1384;
183.15 	(14) for the reporting period and for the prior years of the district, the actual amount 
183.16 	expended for, at least, the following categories:
183.17 	(i) acquisition of land and buildings through condemnation or purchase;
183.18 	(ii) site improvements or preparation costs;
183.19 	(iii) installation of public utilities, parking facilities, streets, roads, sidewalks, or other 
183.20 	similar public improvements;
183.21 	(iv) administrative costs, including the allocated cost of the authority; and
183.22 	(v) for housing districts, construction of affordable housing;
183.23 	(15) the amount of any payments for activities and improvements located outside of the 
183.24 	district that are paid for or financed with tax increments;
183.25 	(16) the amount of payments of principal and interest that are made during the reporting 
183.26 	period on any nondefeased:
183.27 	(i) general obligation tax increment financing bonds; and
183.28 	(ii) other tax increment financing bonds, including pay-as-you-go contracts and notes;
183.29 	(17) the principal amount, at the end of the reporting period, of any nondefeased:
183.30 	(i) general obligation tax increment financing bonds; and
184.1 	(ii) other tax increment financing bonds, including pay-as-you-go contracts and notes;
184.2 	(18) the amount of principal and interest payments that are due for the current calendar 
184.3 	year on any nondefeased:
184.4 	(i) general obligation tax increment financing bonds; and
184.5 	(ii) other tax increment financing bonds, including pay-as-you-go contracts and notes;
184.6 	(19) if the fiscal disparities contribution under chapter 276A or 473F for the district is 
184.7 	computed under section 469.177, subdivision 3, paragraph (a), the amount of total increased 
184.8 	property taxes to be paid from outside the tax increment financing district; and
184.9 	(20) any additional information the state auditor may require.
184.10 	(d) The reporting requirements imposed by this subdivision apply to districts certified 
184.11 	before, on, and after August 1, 1979.

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

184.13 	Sec. 4. Minnesota Statutes 2022, section 469.176, subdivision 3, is amended to read:
184.14 		Subd. 3.Limitation on administrative expenses. (a) For districts for which certification 
184.15 	was requested before August 1, 2001, no tax increment shall be used to pay any 
184.16 	administrative expenses for a project which exceed ten percent of the total estimated tax 
184.17 	increment expenditures authorized by the tax increment financing plan or ten percent of the 
184.18 	total tax increment expenditures for the project net of any amounts returned to the county 
184.19 	auditor as excess increment; as returned increment under section 469.1763, subdivision 4, 
184.20 	paragraph (g); or as remedies under section 469.1771, subdivision 2, whichever is less.
184.21 	(b) For districts for which certification was requested after July 31, 2001, no tax increment 
184.22 	may be used to pay any administrative expenses for a project which exceed ten percent of 
184.23 	total estimated tax increment expenditures authorized by the tax increment financing plan 
184.24 	or ten percent of the total tax increments, as defined in section 469.174, subdivision 25, 
184.25 	clause (1), from received for the district net of any amounts returned to the county auditor 
184.26 	as excess increment; as returned increment under section 469.1763, subdivision 4, paragraph 
184.27 	(g); or as remedies under section 469.1771, subdivision 2, whichever is less.
184.28 	(c) Increments used to pay the county's administrative expenses under subdivision 4h 
184.29 	are not subject to the percentage limits in this subdivision.
184.30 	(d) Increments defined under section 469.174, subdivision 25, clause (2), used for 
184.31 	administrative expenses described under section 469.174, subdivision 14, paragraph (a), 
184.32 	clause (4), are not subject to the percentage limits in this subdivision.

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

185.3 	Sec. 5. Minnesota Statutes 2022, section 469.176, subdivision 4, is amended to read:
185.4 		Subd. 4.Limitation on use of tax increment; general rule. All revenues derived from 
185.5 	tax increment shall be used in accordance with the tax increment financing plan. The revenues 
185.6 	shall be used solely for the following purposes: (1) to pay the principal of and interest on 
185.7 	bonds issued to finance a project; (2) by a rural development financing authority for the 
185.8 	purposes stated in section 469.142,; by a port authority or municipality exercising the powers 
185.9 	of a port authority to finance or otherwise pay the cost of redevelopment pursuant to sections 
185.10 	469.048 to 469.068,; by an economic development authority to finance or otherwise pay 
185.11 	the cost of redevelopment pursuant to sections 469.090 to 469.108,; by a housing and 
185.12 	redevelopment authority or economic development authority to finance or otherwise pay 
185.13 	public redevelopment costs pursuant to sections 469.001 to 469.047,; by a municipality or 
185.14 	economic development authority to finance or otherwise pay the capital and administration 
185.15 	costs of a development district pursuant to sections 469.124 to 469.133,; by a municipality 
185.16 	or authority to finance or otherwise pay the costs of developing and implementing a 
185.17 	development action response plan,; by a municipality or redevelopment agency to finance 
185.18 	or otherwise pay premiums for insurance or other security guaranteeing the payment when 
185.19 	due of principal of and interest on the bonds pursuant to chapter 462C, sections 469.152 to 
185.20 	469.165, or both, or to accumulate and maintain a reserve securing the payment when due 
185.21 	of the principal of and interest on the bonds pursuant to chapter 462C, sections 469.152 to 
185.22 	469.165, or both, which revenues in the reserve shall not exceed, subsequent to the fifth 
185.23 	anniversary of the date of issue of the first bond issue secured by the reserve, an amount 
185.24 	equal to 20 percent of the aggregate principal amount of the outstanding and nondefeased 
185.25 	bonds secured by the reserve; and (3) to pay administrative expenses.

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

185.28 	Sec. 6. Minnesota Statutes 2022, section 469.1763, subdivision 2, is amended to read:
185.29 		Subd. 2.Expenditures outside district. (a) For each tax increment financing district, 
185.30 	an amount equal to at least 75 percent of the total revenue derived from tax increments paid 
185.31 	by properties in the district must be expended on activities in the district or to pay bonds, 
185.32 	to the extent that the proceeds of the bonds were used to finance activities in the district or 
185.33 	to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other 
186.1 	than redevelopment districts for which the request for certification was made after June 30, 
186.2 	1995, the in-district percentage for purposes of the preceding sentence is 80 percent. Not 
186.3 	more than 25 percent of the total revenue derived from tax increments paid by properties 
186.4 	in the district may be expended, through a development fund or otherwise, on activities 
186.5 	outside of the district but within the defined geographic area of the project except to pay, 
186.6 	or secure payment of, debt service on credit enhanced bonds. For districts, other than 
186.7 	redevelopment districts for which the request for certification was made after June 30, 1995, 
186.8 	the pooling percentage for purposes of the preceding sentence is 20 percent. The revenues 
186.9 	derived from tax increments paid by properties in the district that are expended on costs 
186.10 	under section 469.176, subdivision 4h, paragraph (b), may be deducted first before calculating 
186.11 	the percentages that must be expended within and without the district.
186.12 	(b) In the case of a housing district, a housing project, as defined in section 469.174, 
186.13 	subdivision 11, is an activity in the district.
186.14 	(c) All administrative expenses are considered to be expenditures for activities outside 
186.15 	of the district, except that if the only expenses for activities outside of the district under this 
186.16 	subdivision are for the purposes described in paragraph (d), administrative expenses will 
186.17 	be considered as expenditures for activities in the district.
186.18 	(d) The authority may elect, in the tax increment financing plan for the district, to increase 
186.19 	by up to ten percentage points the permitted amount of expenditures for activities located 
186.20 	outside the geographic area of the district under paragraph (a). As permitted by section 
186.21 	469.176, subdivision 4k, the expenditures, including the permitted expenditures under 
186.22 	paragraph (a), need not be made within the geographic area of the project. Expenditures 
186.23 	that meet the requirements of this paragraph are legally permitted expenditures of the district, 
186.24 	notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase 
186.25 	under this paragraph, the expenditures must:
186.26 	(1) be used exclusively to assist housing that meets the requirement for a qualified 
186.27 	low-income building, as that term is used in section 42 of the Internal Revenue Code; and
186.28 	(2) not exceed the qualified basis of the housing, as defined under section 42(c) of the 
186.29 	Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal 
186.30 	Revenue Code; and
186.31 	(3) be used to:
186.32 	(i) acquire and prepare the site of the housing;
186.33 	(ii) acquire, construct, or rehabilitate the housing; or
187.1 	(iii) make public improvements directly related to the housing; or
187.2 	(4) be used to develop housing:
187.3 	(i) if the market value of the housing does not exceed the lesser of:
187.4 	(A) 150 percent of the average market value of single-family homes in that municipality; 
187.5 	or
187.6 	(B) $200,000 for municipalities located in the metropolitan area, as defined in section 
187.7 	473.121, or $125,000 for all other municipalities; and
187.8 	(ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition 
187.9 	of existing structures, site preparation, and pollution abatement on one or more parcels, if 
187.10 	the parcel contains a residence containing one to four family dwelling units that has been 
187.11 	vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision 
187.12 	7, but without regard to whether the residence is the owner's principal residence, and only 
187.13 	after the redemption period has expired; or
187.14 	(5) to assist owner-occupied housing that meets the requirements of section 469.1761, 
187.15 	subdivision 2.
187.16 	(e) The authority under paragraph (d), clause (4), expires on December 31, 2016. 
187.17 	Increments may continue to be expended under this authority after that date, if they are used 
187.18 	to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if 
187.19 	December 31, 2016, is considered to be the last date of the five-year period after certification 
187.20 	under that provision.
187.21 	(f) For purposes of determining whether the minimum percentage of expenditures for 
187.22 	activities in the district and maximum percentages of expenditures allowed on activities 
187.23 	outside the district have been met under this subdivision, any amounts returned to the county 
187.24 	auditor as excess increment, as returned increment under subdivision 4, paragraph (g), or 
187.25 	as remedies under section 469.1771, subdivision 2, shall first be subtracted from the total 
187.26 	revenues derived from tax increments paid by properties in the district. Any other amounts 
187.27 	returned to the county auditor for purposes other than a remedy under section 469.1771, 
187.28 	subdivision 3, are considered to be expenditures for activities in the district.

187.29 	EFFECTIVE DATE. This section is effective the day following final enactment and 
187.30 	applies to all districts with a request for certification date after April 30, 1990, except that 
187.31 	paragraph (f) shall apply to districts decertifying after December 31, 2023.

188.1 	Sec. 7. Minnesota Statutes 2022, section 469.1763, subdivision 3, is amended to read:
188.2 		Subd. 3.Five-year rule. (a) Revenues derived from tax increments paid by properties 
188.3 	in the district that are considered to have been expended on an activity within the district 
188.4 	under will instead be considered to have been expended on an activity outside the district 
188.5 	for purposes of subdivision 2 only if one of the following occurs unless:
188.6 	(1) before or within five years after certification of the district, the revenues are actually 
188.7 	paid to a third party with respect to the activity;
188.8 	(2) bonds, the proceeds of which must be used to finance the activity, are issued and 
188.9 	sold to a third party before or within five years after certification of the district, the revenues 
188.10 	are spent to repay the bonds, and the proceeds of the bonds either are, on the date of issuance, 
188.11 	reasonably expected to be spent before the end of the later of (i) the five-year period, or (ii) 
188.12 	a reasonable temporary period within the meaning of the use of that term under section 
188.13 	148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve 
188.14 	or replacement fund;
188.15 	(3) binding contracts with a third party are entered into for performance of the activity 
188.16 	before or within five years after certification of the district and the revenues are spent under 
188.17 	the contractual obligation;
188.18 	(4) costs with respect to the activity are paid before or within five years after certification 
188.19 	of the district and the revenues are spent to reimburse a party for payment of the costs, 
188.20 	including interest on unreimbursed costs; or
188.21 	(5) expenditures are made revenues are spent for housing purposes as permitted described
188.22 	by subdivision 2, paragraphs paragraph (b) and (d), or for public infrastructure purposes 
188.23 	within a zone as permitted by subdivision 2, paragraph (e).
188.24 	(b) For purposes of this subdivision, bonds include subsequent refunding bonds if the 
188.25 	original refunded bonds meet the requirements of paragraph (a), clause (2).
188.26 	(c) For a redevelopment district or a renewal and renovation district certified after June 
188.27 	30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) are 
188.28 	extended to ten years after certification of the district. For a redevelopment district certified 
188.29 	after April 20, 2009, and before June 30, 2012, the five-year periods described in paragraph 
188.30 	(a) are extended to eight years after certification of the district. This extension is provided 
188.31 	primarily to accommodate delays in development activities due to unanticipated economic 
188.32 	circumstances.
189.1 	(d) For a redevelopment district that was certified after December 31, 2017, and before 
189.2 	June 30, 2020, the five-year periods described in paragraph (a) are extended to eight years 
189.3 	after certification of the district.

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

189.6 	Sec. 8. Minnesota Statutes 2022, section 469.1763, subdivision 4, is amended to read:
189.7 		Subd. 4.Use of revenues for decertification. (a) In each year beginning with the sixth 
189.8 	year following certification of the district, or beginning with the ninth year following 
189.9 	certification of the district for districts whose five-year rule is extended to eight years under 
189.10 	subdivision 3, paragraph (d), if the applicable in-district percent of the revenues derived 
189.11 	from tax increments paid by properties in the district exceeds the amount of expenditures 
189.12 	that have been made for costs permitted under subdivision 3, an amount equal to the 
189.13 	difference between the in-district percent of the revenues derived from tax increments paid 
189.14 	by properties in the district and the amount of expenditures that have been made for costs 
189.15 	permitted under subdivision 3 must be used and only used to pay or defease the following 
189.16 	or be set aside to pay the following:
189.17 	(1) outstanding bonds, as defined in subdivision 3, paragraphs (a), clause (2), and (b);
189.18 	(2) contracts, as defined in subdivision 3, paragraph (a), clauses (3) and (4);
189.19 	(3) credit enhanced bonds to which the revenues derived from tax increments are pledged, 
189.20 	but only to the extent that revenues of the district for which the credit enhanced bonds were 
189.21 	issued are insufficient to pay the bonds and to the extent that the increments from the 
189.22 	applicable pooling percent share for the district are insufficient; or
189.23 	(4) the amount provided by the tax increment financing plan to be paid under subdivision 
189.24 	2, paragraphs (b), (d), and (e).
189.25 	(b) The (a) Beginning with the sixth year following certification of the district, or 
189.26 	beginning with the year following the extended period for districts whose five-year period 
189.27 	is extended under subdivision 3, paragraphs (c) and (d), a district must be decertified and 
189.28 	the pledge of tax increment discharged when the outstanding bonds have been defeased and
189.29 	when sufficient money has been set aside to pay, based on the product of the applicable 
189.30 	in-district percentage multiplied by the increment to becumulative revenues derived from 
189.31 	tax increments paid by properties in the district that have been collected through the end of 
189.32 	the calendar year, equals or exceeds an amount sufficient to pay the following amounts:
190.1 	(1) contractualany costs and obligations as defineddescribed in subdivision 3, paragraph
190.2 	paragraphs (a), clauses (3) and (4); and (b), excluding those under a qualifying pay-as-you-go 
190.3 	contract and note;
190.4 	(2) the amount specified in the tax increment financing plan for activities qualifying 
190.5 	under subdivision 2, paragraph (b), that have not been funded with the proceeds of bonds 
190.6 	qualifying under paragraph (a), clause (1); and
190.7 	(3) the additional expenditures permitted by the tax increment financing plan for housing 
190.8 	activities under an election under subdivision 2, paragraph (d), that have not been funded 
190.9 	with the proceeds of bonds qualifying under paragraph (a), clause (1).
190.10 	(2) any accrued interest on the costs and obligations in clause (1), payable in accordance 
190.11 	with the terms thereof; and
190.12 	(3) any administrative expenses falling within the exception in subdivision 2, paragraph 
190.13 	(c).
190.14 	(b) For districts with an outstanding qualifying pay-as-you-go contract and note, the 
190.15 	required decertification under paragraph (a) is deferred until the end of the remaining term 
190.16 	of the last outstanding qualifying pay-as-you-go contract and note, and the applicable 
190.17 	in-district percentage of cumulative revenues derived from tax increments paid by properties 
190.18 	in the district are sufficient to pay the obligations identified in subdivision 3, paragraphs 
190.19 	(a) and (b), provided that the deferral shall not exceed the district's duration limit under 
190.20 	section 469.176. During the deferral, beginning at the time paragraph (a) would otherwise 
190.21 	require decertification, the authority must annually either:
190.22 	(1) remove from the district, by the end of the year, all parcels that will no longer have 
190.23 	their tax increment revenue pledged or subject to a qualifying pay-as-you-go contract and 
190.24 	note or other costs and obligations described in subdivision 3, paragraphs (a) and (b), after 
190.25 	the end of the year; or
190.26 	(2) use the applicable in-district percentage of revenues derived from tax increments 
190.27 	paid by those parcels to prepay an outstanding qualifying pay-as-you-go contract and note 
190.28 	of the district or other costs and obligations described in subdivision 3, paragraphs (a) and 
190.29 	(b), or to accumulate and use revenues derived from tax increments paid by those parcels 
190.30 	as permitted under paragraph (i).
190.31 	The authority must remove any parcels as required by this paragraph by modification 
190.32 	of the tax increment financing plan and notify the county auditor of the removed parcels by 
190.33 	the end of the same calendar year. Notwithstanding section 469.175, subdivision 4, 
191.1 	paragraphs (b), clause (1), and (e), the notice, discussion, public hearing, and findings 
191.2 	required for approval of the original plan are not required for such a modification.
191.3 	(c) Notwithstanding paragraph (a) or (b), if tax increment was pledged prior to August 
191.4 	1, 2023, to a bond other than a pay-as-you-go contract and note or interfund loan, and the 
191.5 	proceeds of the bond were used solely or in part to pay authorized costs for activities outside 
191.6 	the district, the requirement to decertify under paragraph (a) or remove parcels under 
191.7 	paragraph (b) shall not apply prior to the bond being fully paid or defeased.
191.8 	(d) For purposes of this subdivision, "applicable in-district percentage" means the 
191.9 	percentage of tax increment revenue that is restricted for expenditures within the district, 
191.10 	as determined under subdivision 2, paragraphs (a) and (d), for the district.
191.11 	(e) For purposes of this subdivision, "qualifying pay-as-you-go contract and note" means 
191.12 	a pay-as-you-go contract and note that is considered to be for activities within the district 
191.13 	under subdivision 3, paragraph (a).
191.14 	(f) For purposes of this subdivision, the reference in paragraph (a) to cumulative revenues 
191.15 	derived from tax increments paid by properties in the district through the end of the calendar 
191.16 	year shall include any final settlement distributions made in the following January. For 
191.17 	purposes of the calculation in paragraph (a), any amounts returned to the county auditor as 
191.18 	excess increment or as remedies under section 469.1771, subdivision 2, shall first be 
191.19 	subtracted from the cumulative revenues derived from tax increments paid by properties in 
191.20 	the district.
191.21 	(g) The timing and implementation of a decertification pursuant to paragraphs (a) and 
191.22 	(b) shall be subject to the following:
191.23 	(1) when a decertification is required under paragraph (a) and not deferred under 
191.24 	paragraph (b), the authority must, as soon as practical and no later than the final settlement 
191.25 	distribution date of January 25 as identified in section 276.111 for the property taxes payable 
191.26 	in the calendar year identified in paragraph (a), make the decertification by resolution 
191.27 	effective for the end of the calendar year identified in paragraph (a), and communicate the 
191.28 	decertification to the county auditor;
191.29 	(2) when a decertification is deferred under paragraph (b), the authority must, by 
191.30 	December 31 of the year in which the last qualifying pay-as-you-go contract and note reaches 
191.31 	termination, make the decertification by resolution effective for the end of that calendar 
191.32 	year and communicate the decertification to the county auditor;
192.1 	(3) if the county auditor is unable to prevent tax increments from being calculated for 
192.2 	taxes payable in the year following the year for which the decertification is made effective, 
192.3 	the county auditor may redistribute the tax increments in the same manner as excess 
192.4 	increments under section 469.176, subdivision 2, paragraph (c), clause (4), without first 
192.5 	distributing them to the authority; and
192.6 	(4) if tax increments are distributed to an authority for a taxes payable year after the year 
192.7 	for which the decertification was required to be effective, the authority must return the 
192.8 	amount of the distributions to the county auditor for redistribution in the same manner as 
192.9 	excess increments under section 469.176, subdivision 2, paragraph (c), clause (4).
192.10 	(h) The provisions of this subdivision do not apply to a housing district.
192.11 	(i) Notwithstanding anything to the contrary in paragraph (a) or (b), if an authority has 
192.12 	made the election in the tax increment financing plan for the district under subdivision 2, 
192.13 	paragraph (d), then the requirement to decertify under paragraph (a) or remove parcels under 
192.14 	paragraph (b) shall not apply prior to such time that the accumulated revenues derived from 
192.15 	tax increments paid by properties in the district that are eligible to be expended for housing 
192.16 	purposes described under subdivision 2, paragraph (d),  equals the lesser of the amount the 
192.17 	authority is permitted to expend for housing purposes described under subdivision 2, 
192.18 	paragraph (d), or the amount authorized for such purposes in the tax increment financing 
192.19 	plan. Increment revenues collected after the district would have decertified under paragraph 
192.20 	(a) or from parcels which otherwise would be subject to removal under paragraph (b), absent 
192.21 	the exception of this paragraph, shall be used solely for housing purposes as described in 
192.22 	subdivision 2, paragraph (d).

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

192.28 	Sec. 9. Minnesota Statutes 2022, section 469.1763, subdivision 6, is amended to read:
192.29 		Subd. 6.Pooling permitted for deficits. (a) This subdivision applies only to districts 
192.30 	for which the request for certification was made before August 1, 2001, and without regard 
192.31 	to whether the request for certification was made prior to August 1, 1979.
192.32 	(b) The municipality for the district may transfer available increments from another tax 
192.33 	increment financing district located in the municipality, if the transfer is necessary to 
193.1 	eliminate a deficit in the district to which the increments are transferred. The municipality 
193.2 	may transfer increments as provided by this subdivision without regard to whether the 
193.3 	transfer or expenditure is authorized by the tax increment financing plan for the district 
193.4 	from which the transfer is made. A deficit in the district for purposes of this subdivision 
193.5 	means the lesser of the following two amounts:
193.6 	(1)(i) the amount due during the calendar year to pay preexisting obligations of the 
193.7 	district; minus the sum of
193.8 	(ii) (i) the total increments collected or to be collected from properties located within 
193.9 	the district that are available for the calendar year including amounts collected in prior years 
193.10 	that are currently available; plus
193.11 	(iii) (ii) total increments from properties located in other districts in the municipality 
193.12 	including amounts collected in prior years that are available to be used to meet the district's 
193.13 	obligations under this section, excluding this subdivision, or other provisions of law; or
193.14 	(2) the reduction in increments collected from properties located in the district for the 
193.15 	calendar year as a result of the changes in classification rates in Laws 1997, chapter 231, 
193.16 	article 1; Laws 1998, chapter 389, article 2; and Laws 1999, chapter 243, and Laws 2001, 
193.17 	First Special Session chapter 5, or the elimination of the general education tax levy under 
193.18 	Laws 2001, First Special Session chapter 5.
193.19 	The authority may compute the deficit amount under clause (1) only (without regard to 
193.20 	the limit under clause (2)) if the authority makes an irrevocable commitment, by resolution, 
193.21 	to use increments from the district to which increments are to be transferred and any 
193.22 	transferred increments are only used to pay preexisting obligations and administrative 
193.23 	expenses for the district that are required to be paid under section 469.176, subdivision 4h, 
193.24 	paragraph (a).
193.25 	(c) A preexisting obligation means:
193.26 	(1) bonds issued and sold before August 1, 2001, or bonds issued pursuant to a binding 
193.27 	contract requiring the issuance of bonds entered into before July 1, 2001, and bonds issued 
193.28 	to refund such bonds or to reimburse expenditures made in conjunction with a signed 
193.29 	contractual agreement entered into before August 1, 2001, to the extent that the bonds are 
193.30 	secured by a pledge of increments from the tax increment financing district; and
193.31 	(2) binding contracts entered into before August 1, 2001, to the extent that the contracts 
193.32 	require payments secured by a pledge of increments from the tax increment financing district.
194.1 	(d) The municipality may require a development authority, other than a seaway port 
194.2 	authority, to transfer available increments including amounts collected in prior years that 
194.3 	are currently available for any of its tax increment financing districts in the municipality to 
194.4 	make up an insufficiency in another district in the municipality, regardless of whether the 
194.5 	district was established by the development authority or another development authority. 
194.6 	This authority applies notwithstanding any law to the contrary, but applies only to a 
194.7 	development authority that:
194.8 	(1) was established by the municipality; or
194.9 	(2) the governing body of which is appointed, in whole or part, by the municipality or 
194.10 	an officer of the municipality or which consists, in whole or part, of members of the 
194.11 	governing body of the municipality. The municipality may use this authority only after it 
194.12 	has first used all available increments of the receiving development authority to eliminate 
194.13 	the insufficiency and exercised any permitted action under section 469.1792, subdivision 
194.14 	3, for preexisting districts of the receiving development authority to eliminate the 
194.15 	insufficiency.
194.16 	(e) The authority under this subdivision to spend tax increments outside of the area of 
194.17 	the district from which the tax increments were collected:
194.18 	(1) is an exception to the restrictions under section 469.176, subdivisions 4b, 4c, 4d, 4e, 
194.19 	4i, and 4j; the expenditure limits under section 469.176, subdivision 1c; and the other 
194.20 	provisions of this section; and the percentage restrictions under subdivision 2 must be 
194.21 	calculated after deducting increments spent under this subdivision from the total increments 
194.22 	for the district; and
194.23 	(2) applies notwithstanding the provisions of the Tax Increment Financing Act in effect 
194.24 	for districts for which the request for certification was made before June 30, 1982, or any 
194.25 	other law to the contrary.
194.26 	(f) If a preexisting obligation requires the development authority to pay an amount that 
194.27 	is limited to the increment from the district or a specific development within the district and 
194.28 	if the obligation requires paying a higher amount to the extent that increments are available, 
194.29 	the municipality may determine that the amount due under the preexisting obligation equals 
194.30 	the higher amount and may authorize the transfer of increments under this subdivision to 
194.31 	pay up to the higher amount. The existence of a guarantee of obligations by the individual 
194.32 	or entity that would receive the payment under this paragraph is disregarded in the 
194.33 	determination of eligibility to pool under this subdivision. The authority to transfer increments 
195.1 	under this paragraph may only be used to the extent that the payment of all other preexisting 
195.2 	obligations in the municipality due during the calendar year have been satisfied.
195.3 	(g) For transfers of increments made in calendar year 2005 and later, the reduction in 
195.4 	increments as a result of the elimination of the general education tax levy for purposes of 
195.5 	paragraph (b), clause (2), for a taxes payable year equals the general education tax rate for 
195.6 	the school district under Minnesota Statutes 2000, section 273.1382, subdivision 1, for taxes 
195.7 	payable in 2001, multiplied by the captured tax capacity of the district for the current taxes 
195.8 	payable year.

195.9 	EFFECTIVE DATE. This section is effective the day following final enactment and 
195.10 	applies only to districts for which the request for certification was made before August 1, 
195.11 	2001, and without regard to whether the request for certification was made prior to August 
195.12 	1, 1979.

195.13 	Sec. 10. Minnesota Statutes 2022, section 469.1771, subdivision 2, is amended to read:
195.14 		Subd. 2.Collection of increment. If an authority includes or retains a parcel of property 
195.15 	in a tax increment financing district that does not qualify for inclusion or retention within 
195.16 	the district, the authority must pay to the county auditor an amount of money equal to the 
195.17 	increment collected from the property for the year or years. The property must be eliminated 
195.18 	from the original and captured tax capacity of the district effective for the current property 
195.19 	tax assessment year. This subdivision does not apply to a failure to decertify a district at 
195.20 	the end of the duration limit specified in the tax increment financing plan.

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

195.22 	Sec. 11. Minnesota Statutes 2022, section 469.1771, subdivision 2a, is amended to read:
195.23 		Subd. 2a.Suspension of distribution of tax increment. (a) If an authority fails to make 
195.24 	a disclosure or to submit a report containing the information required by section 469.175, 
195.25 	subdivisions 5 and 6, regarding a tax increment financing district within the time provided 
195.26 	in section 469.175, subdivisions 5 and 6, the state auditor shall mail to the authority a written 
195.27 	notice that it or the municipality has failed to make the required disclosure or to submit a 
195.28 	required report with respect to a particular district. The state auditor shall mail the notice 
195.29 	on or before the third Tuesday of August of the year in which the disclosure or report was 
195.30 	required to be made or submitted. The notice must describe the consequences of failing to 
195.31 	disclose or submit a report as provided in paragraph (b). If the state auditor has not received 
195.32 	a copy of a disclosure or a report described in this paragraph on or before the first day of 
195.33 	October of the year in which the disclosure or report was required to be made or submitted, 
196.1 	the state auditor shall mail a written notice to the county auditor to hold the distribution of 
196.2 	tax increment from a particular district.
196.3 	(b) Upon receiving written notice from the state auditor to hold the distribution of tax 
196.4 	increment, the county auditor shall hold: all tax increment that otherwise would be distributed 
196.5 	after receipt of the notice, until further notified under paragraph (c).
196.6 	(1) 100 percent of the amount of tax increment that otherwise would be distributed, if 
196.7 	the distribution is made after the first day of October but during the year in which the 
196.8 	disclosure or report was required to be made or submitted; or
196.9 	(2) 100 percent of the amount of tax increment that otherwise would be distributed, if 
196.10 	the distribution is made after December 31 of the year in which the disclosure or report was 
196.11 	required to be made or submitted.
196.12 	(c) Upon receiving the copy of the disclosure and all of the reports described in paragraph 
196.13 	(a) with respect to a district regarding which the state auditor has mailed to the county 
196.14 	auditor a written notice to hold distribution of tax increment, the state auditor shall mail to 
196.15 	the county auditor a written notice lifting the hold and authorizing the county auditor to 
196.16 	distribute to the authority or municipality any tax increment that the county auditor had held 
196.17 	pursuant to paragraph (b). The state auditor shall mail the written notice required by this 
196.18 	paragraph within five working days after receiving the last outstanding item. The county 
196.19 	auditor shall distribute the tax increment to the authority or municipality within 15 working 
196.20 	days after receiving the written notice required by this paragraph.
196.21 	(d) Notwithstanding any law to the contrary, any interest that accrues on tax increment 
196.22 	while it is being held by the county auditor pursuant to paragraph (b) is not tax increment 
196.23 	and may be retained by the county.
196.24 	(e) For purposes of sections 469.176, subdivisions 1a to 1g, and 469.177, subdivision 
196.25 	11, tax increment being held by the county auditor pursuant to paragraph (b) is considered 
196.26 	distributed to or received by the authority or municipality as of the time that it would have 
196.27 	been distributed or received but for paragraph (b).

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

196.29 	Sec. 12. Minnesota Statutes 2022, section 469.1771, subdivision 3, is amended to read:
196.30 		Subd. 3.Expenditure of increment. If an authority expends revenues derived from tax 
196.31 	increments, including the proceeds of tax increment bonds, (1) for a purpose that is not a 
196.32 	permitted project under section 469.176 sections 469.174 to 469.1794, (2) for a purpose 
196.33 	that is not permitted under section 469.176 sections 469.174 to 469.1794 for the district 
197.1 	from which the increment was received, or (3) on activities outside of the geographic area 
197.2 	in which the revenues may be expended under this chapter, the authority must pay to the 
197.3 	county auditor an amount equal to the expenditures made in violation of the law.

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

197.5 	ARTICLE 9
197.6 	LOCAL SALES TAXES

197.7 	Section 1. Minnesota Statutes 2022, section 297A.99, subdivision 1, is amended to read:
197.8 		Subdivision 1.Authorization; scope. (a) A political subdivision of this state may impose 
197.9 	a general sales tax (1) under section 297A.992, (2) under section 297A.993, (3) if permitted 
197.10 	by special law, or (4) if the political subdivision enacted and imposed the tax before January 
197.11 	1, 1982, and its predecessor provision.
197.12 	(b) This section governs the imposition of a general sales tax by the political subdivision. 
197.13 	The provisions of this section preempt the provisions of any special law:
197.14 	(1) enacted before June 2, 1997, or
197.15 	(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law 
197.16 	provision from this section's rules by reference.
197.17 	(c) This section does not apply to or preempt a sales tax on motor vehicles. Beginning 
197.18 	July 1, 2019, no political subdivision may impose a special excise tax on motor vehicles 
197.19 	unless it is imposed under section 297A.993.
197.20 	(d) A political subdivision may not advertise or expend funds for the promotion of a 
197.21 	referendum to support imposing a local sales tax and may only spend funds related to 
197.22 	imposing a local sales tax to:.
197.23 	(e) Notwithstanding paragraph (d), a political subdivision may only spend funds related 
197.24 	to imposing a local sales tax to:
197.25 	(1) conduct the referendum;
197.26 	(2) disseminate information included in the resolution adopted and submitted under 
197.27 	subdivision 2, but only if the disseminated information includes a list of specific projects 
197.28 	and the cost of each individual project;
197.29 	(3) provide notice of, and conduct public forums at which proponents and opponents on 
197.30 	the merits of the referendum are given equal time to express their opinions on the merits of 
197.31 	the referendum;
198.1 	(4) provide facts and data on the impact of the proposed local sales tax on consumer 
198.2 	purchases; and
198.3 	(5) provide facts and data related to the individual programs and projects to be funded 
198.4 	with the local sales tax.

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

198.6 	Sec. 2. Minnesota Statutes 2022, section 297A.99, subdivision 2, is amended to read:
198.7 		Subd. 2.Local resolution before application for authority. (a) Before the governing 
198.8 	body of a political subdivision requests legislative approval to impose a local sales tax 
198.9 	authorized by a special law, it shall adopt a resolution indicating its approval of the tax. The 
198.10 	resolution must include the following information: The governing body of a political 
198.11 	subdivision seeking legislative approval to either impose a new local sales tax authorized 
198.12 	by special law or modify an existing local sales tax authorized by special law must adopt a 
198.13 	resolution indicating its approval of the tax each year it requests legislative approval. The 
198.14 	resolution must be adopted not more than 90 days before the date the political subdivision 
198.15 	submits the information required under paragraph (b), and must include the following 
198.16 	information:
198.17 	(1) the proposed tax rate;
198.18 	(2) a detailed description of no more than five capital projects that will be funded with 
198.19 	revenue from the tax;
198.20 	(3) documentation of the regional significance of each project, including the share of 
198.21 	the economic benefit to or use of each project by persons residing, or businesses located, 
198.22 	outside of the jurisdiction political subdivision;
198.23 	(4) the amount of local sales tax revenue that would be used for each project and the 
198.24 	estimated time needed to raise that amount of revenue; and
198.25 	(5) the total revenue that will be raised for all projects before the tax expires, and the 
198.26 	estimated length of time that the tax will be in effect if all proposed projects are funded.
198.27 	(b) The jurisdiction seeking authority to impose a local sales tax by special law political 
198.28 	subdivision must submit the resolution in paragraph (a) along with underlying documentation 
198.29 	indicating how the benefits under paragraph (a), clause (3), were determined, to the chairs 
198.30 	and ranking minority members of the legislative committees of the house of representatives 
198.31 	and senate with jurisdiction over taxes no later than January 31 of the each year in which 
198.32 	the jurisdiction political subdivision is seeking a special law authorizing or modifying the 
199.1 	tax. The political subdivision must submit an amended resolution if, after meeting the 
199.2 	requirements of this paragraph, the political subdivision seeks to:
199.3 	(1) add a project that will be funded with the revenue from the tax;
199.4 	(2) increase the amount that will be used for any project;
199.5 	(3) increase the total revenue raised for all projects before the tax expires; or
199.6 	(4) increase the estimated length of time that the tax will be in effect if all proposed 
199.7 	projects are funded.
199.8 	(c) The special legislation granting or modifying local sales tax authority is not required 
199.9 	to allow funding for all projects listed in the resolution with the revenue from the local sales 
199.10 	tax, but must not include any projects not contained in the resolution.
199.11 	(d) For purposes of this section, a "capital project" or "project" means:
199.12 	(1) a single building or structure including associated infrastructure needed to safely 
199.13 	access or use the building or structure;
199.14 	(2) improvements within a single park or named recreation area; or
199.15 	(3) a contiguous trail.

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

199.17 	Sec. 3. Minnesota Statutes 2022, section 297A.99, subdivision 3, is amended to read:
199.18 		Subd. 3.Legislative authority required before voter approval; requirements for 
199.19 	adoption, use, termination. (a) A political subdivision must receive legislative authority 
199.20 	to impose or modify a local sales tax before submitting the tax for approval by voters of the 
199.21 	political subdivision. Imposition or modification of a local sales tax is subject to approval 
199.22 	by voters of the political subdivision at a general election. The election must be conducted 
199.23 	at a general election on the first Tuesday after the first Monday in November within the 
199.24 	two-year period after the governing body of the political subdivision has received authority 
199.25 	to impose or modify the tax. If the authorizing legislation allows authorizes or modifies the 
199.26 	tax to be imposed for more than one project, there must be the political subdivision is not 
199.27 	required to present each project separately on the ballot. The political subdivision may 
199.28 	present a separate question approving the use of the tax revenue for each project. Regardless 
199.29 	of whether the ballot presents a separate question for each project, the question must state 
199.30 	the project or projects proposed to be funded with the tax, the amount for each project 
199.31 	proposed to be funded with the tax, and the estimated length of time the tax will be in effect. 
199.32 	Notwithstanding the authorizing legislation or special law modifying the tax, a project that 
200.1 	is not approved by the voters may not be funded with the local sales tax revenue and the 
200.2 	termination date of the tax set in the authorizing legislation or special law modifying the 
200.3 	tax must be reduced proportionately based on the share of that project's cost to the total 
200.4 	costs of all projects included in the authorizing legislation or special law modifying the tax.
200.5 	(b) The proceeds of the tax must be dedicated exclusively to payment of the construction 
200.6 	and rehabilitation costs and associated bonding costs related to the specific capital 
200.7 	improvement projects that were approved by the voters under paragraph (a).
200.8 	(c) The tax must terminate after the revenues raised are sufficient to fund the projects 
200.9 	approved by the voters under paragraph (a).
200.10 	(d) After a sales tax imposed by a political subdivision has expired or been terminated, 
200.11 	the political subdivision is prohibited from imposing a local sales tax for a period of one 
200.12 	year.
200.13 	(e) Notwithstanding paragraph (a), if a political subdivision received voter approval to 
200.14 	seek authority for a local sales tax at the November 6, 2018, general election and is granted 
200.15 	authority to impose a local sales tax before January 1, 2021, the tax may be imposed without 
200.16 	an additional referendum provided that it meets the requirements of subdivision 2 and the 
200.17 	list of specific projects contained in the resolution does not conflict with the projects listed 
200.18 	in the approving referendum.
200.19 	(f) If a tax is terminated because sufficient revenues have been raised, any amount of 
200.20 	tax collected under subdivision 9, after sufficient revenues have been raised and before the 
200.21 	quarterly termination required under subdivision 12, paragraph (a), that is greater than the 
200.22 	average quarterly revenues collected over the immediately preceding 12 calendar months 
200.23 	must be retained by the commissioner for deposit in the general fund.

200.24 	EFFECTIVE DATE. This section is effective for new local sales taxes authorized in 
200.25 	May, 2023, and thereafter.

200.26 	Sec. 4. Laws 1993, chapter 375, article 9, section 46, as amended by Laws 1997, chapter 
200.27 	231, article 7, section 40, Laws 1998, chapter 389, article 8, sections 30, 31, and 32, Laws 
200.28 	2003, First Special Session chapter 21, article 8, section 13, Laws 2005, First Special Session 
200.29 	chapter 3, article 5, sections 26 and 27, Laws 2009, chapter 88, article 4, sections 15 and 
200.30 	16, and Laws 2013, chapter 143, article 8, sections 44 and 45, is amended by adding a 
200.31 	subdivision to read:
200.32 		Subd. 1a.Sales and use tax authorization. Notwithstanding Minnesota Statutes, section 
200.33 	477A.016, or any other law, ordinance, or city charter, and if approved by the voters at an 
201.1 	election as required under Minnesota Statutes, section 297A.99, subdivision 3, the city of 
201.2 	St. Paul may impose by ordinance a sales and use tax of one percent for the purposes specified 
201.3 	in subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota 
201.4 	Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement 
201.5 	of the tax authorized under this subdivision. The tax imposed under this subdivision is in 
201.6 	addition to any other local sales and use tax imposed by the city of St. Paul under any other 
201.7 	special law.

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

201.11 	Sec. 5. Laws 1993, chapter 375, article 9, section 46, as amended by Laws 1997, chapter 
201.12 	231, article 7, section 40, Laws 1998, chapter 389, article 8, sections 30, 31, and 32, Laws 
201.13 	2003, First Special Session chapter 21, article 8, section 13, Laws 2005, First Special Session 
201.14 	chapter 3, article 5, sections 26 and 27, Laws 2009, chapter 88, article 4, sections 15 and 
201.15 	16, and Laws 2013, chapter 143, article 8, sections 44 and 45, is amended by adding a 
201.16 	subdivision to read:
201.17 		Subd. 2b.Use of revenues. The revenues derived from the tax authorized under 
201.18 	subdivision 1a must be used by the city of St. Paul to pay the costs of collecting and 
201.19 	administering the tax and to finance all or part of the following projects in the city, including 
201.20 	securing and paying debt service on bonds issued under subdivision 3a:
201.21 	(1) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d), 
201.22 	$738,000,000, plus associated bonding costs for street improvements; and
201.23 	(2) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d), 
201.24 	$246,000,000, plus associated bonding costs for capital improvements to St. Paul parks and 
201.25 	recreation facilities.

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

201.29 	Sec. 6. Laws 1993, chapter 375, article 9, section 46, as amended by Laws 1997, chapter 
201.30 	231, article 7, section 40, Laws 1998, chapter 389, article 8, sections 30, 31, and 32, Laws 
201.31 	2003, First Special Session chapter 21, article 8, section 13, Laws 2005, First Special Session 
201.32 	chapter 3, article 5, sections 26 and 27, Laws 2009, chapter 88, article 4, sections 15 and 
202.1 	16, and Laws 2013, chapter 143, article 8, sections 44 and 45, is amended by adding a 
202.2 	subdivision to read:
202.3 		Subd. 3a.Bonding authority. (a) The city of St. Paul may issue bonds under Minnesota 
202.4 	Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in 
202.5 	subdivision 2b and approved by the voters as required under Minnesota Statutes, section 
202.6 	297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued 
202.7 	under this subdivision may not exceed $984,000,000 for the projects listed in subdivision 
202.8 	2b, plus an amount to be applied to the payment of the costs of issuing the bonds.
202.9 	(b) The bonds may be paid from or secured by any funds available to the city of St. Paul, 
202.10 	including the tax authorized under subdivision 1a. The issuance of bonds under this 
202.11 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
202.12 	(c) The bonds are not included in computing any debt limitation applicable to the city 
202.13 	of St. Paul, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
202.14 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
202.15 	the bonds under Minnesota Statutes, section 475.58, is not required.

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

202.19 	Sec. 7. Laws 1993, chapter 375, article 9, section 46, subdivision 5, as amended by Laws 
202.20 	1998, chapter 389, article 8, section 32, and Laws 2013, chapter 143, article 8, section 45, 
202.21 	is amended to read:
202.22 		Subd. 5.Expiration of taxing authority. (a) The authority granted by subdivision 1 to 
202.23 	the city to impose a sales tax shall expire on December 31, 2042, or at an earlier time as the 
202.24 	city shall, by ordinance, determine. Any funds remaining after completion of projects 
202.25 	approved under subdivision 2, paragraph (a) and retirement or redemption of any bonds or 
202.26 	other obligations may be placed in the general fund of the city.
202.27 	(b) The tax imposed under subdivision 1a expires at the earlier of (1) 20 years after the 
202.28 	tax is first imposed, or (2) when the city council determines that the amount of revenues 
202.29 	received from the tax is sufficient to pay for the project costs authorized under subdivision 
202.30 	2b for projects approved by the voters as required under Minnesota Statutes, section 297A.99, 
202.31 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
202.32 	of the bonds under subdivision 3a, including interest on the bonds. Except as otherwise 
202.33 	provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds 
203.1 	remaining after payment of the allowed costs due to the timing of the termination of the tax 
203.2 	under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general 
203.3 	fund of the city. The tax imposed under subdivision 1a may expire at an earlier time if the 
203.4 	city so determines by ordinance.

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

203.8 	Sec. 8. Laws 1998, chapter 389, article 8, section 43, as amended by Laws 2005, First 
203.9 	Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session 
203.10 	chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections 
203.11 	11, 12, and 13, is amended by adding a subdivision to read:
203.12 		Subd. 1a.Authorization; extension. Notwithstanding Minnesota Statutes, section 
203.13 	477A.016, or any other law, ordinance, or city charter, and notwithstanding Minnesota 
203.14 	Statutes, section 297A.99, subdivision 3, paragraph (d), if approved by the voters at an 
203.15 	election held in 2023, the city of Rochester may extend the sales and use tax of one-half of 
203.16 	one percent authorized under subdivision 1, paragraph (a), for the purposes specified in 
203.17 	subdivision 3a. Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, 
203.18 	paragraph (a), the city may, but is not required to, present one question on the ballot for all 
203.19 	projects authorized under subdivision 3a. If all projects are presented in one question, the 
203.20 	question must state each project proposed to be funded with the tax, the amount for each 
203.21 	project proposed to be funded with the tax, and the estimated length of time the tax will be 
203.22 	in effect for each project. Except as otherwise provided in this section, the provisions of 
203.23 	Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and 
203.24 	enforcement of the tax authorized under this subdivision. The tax imposed under this 
203.25 	subdivision is in addition to any local sales and use tax imposed under any other special 
203.26 	law.

203.27 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
203.28 	city of Rochester and its chief clerical officer comply with Minnesota Statutes, section 
203.29 	645.021, subdivisions 2 and 3.

203.30 	Sec. 9. Laws 1998, chapter 389, article 8, section 43, as amended by Laws 2005, First 
203.31 	Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session 
204.1 	chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections 
204.2 	11, 12, and 13, is amended by adding a subdivision to read:
204.3 		Subd. 3a.Use of sales and use tax revenues; additional projects. (a) The revenues 
204.4 	derived from the extension of the tax authorized under subdivision 1a must be used by the 
204.5 	city of Rochester to pay the costs of collecting and administering the tax and paying for the 
204.6 	following projects in the city, including securing and paying debt service on bonds issued 
204.7 	to finance all or part of the following projects, plus associated bonding costs:
204.8 	(1) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraphs (a) 
204.9 	and (b):
204.10 	(i) $60,000,000 for an economic vitality fund and expenses eligible to be paid from the 
204.11 	fund, subject to adoption of a resolution under paragraph (c), clause (1); or
204.12 	(ii) $50,000,000 for an economic vitality fund and expenses eligible to be paid from the 
204.13 	fund, subject to the requirements of paragraph (c), clause (2);
204.14 	(2) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d), 
204.15 	$50,000,000 for street reconstruction;
204.16 	(3) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d), 
204.17 	$40,000,000 for flood control and water quality, excluding removal of the MN00515 dam; 
204.18 	and
204.19 	(4) $65,000,000 for a sports and recreation complex.
204.20 	(b) The city must use $10,000,000 of the money allocated to the purpose in paragraph 
204.21 	(a), clause (1), for a grant to Rochester Area Economic Development Incorporated to establish 
204.22 	the EverRAEDI development fund. Of that amount, $5,000,000 must be used for grants and 
204.23 	loans for economic development projects in communities located in the city of Rochester, 
204.24 	and $5,000,000 must be used for grants and loans for economic development projects in 
204.25 	communities located in the Rochester metropolitan statistical area and the cities of Pine 
204.26 	Island, St. Charles, and Zumbrota, excluding the city of Rochester. Rochester Area Economic 
204.27 	Development Incorporated may charge grant and loan recipients a service fee of up to five 
204.28 	percent of the grant or loan amount to pay for administrative costs associated with the 
204.29 	EverRAEDI development fund. Rochester Area Economic Development Incorporated shall 
204.30 	report on, at minimum, an annual basis on all EverRAEDI fund activities to the governing 
204.31 	board of the city of Rochester.
204.32 	(c) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraphs 
204.33 	(a), (b), and (d), the city must either:
205.1 	(1) pass a resolution that authorizes $10,000,000 of the revenues from the tax authorized 
205.2 	under subdivision 1a for the use described in paragraph (a), clause (1), item (i), to be used 
205.3 	for an economic development fund for the purposes specified in paragraph (b); or
205.4 	(2) if the city does not pass a resolution under clause (1), the city must allocate 
205.5 	$10,000,000 from the amount authorized in paragraph (a), clause (1), item (ii), for the 
205.6 	purposes specified in paragraph (b).

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

205.9 	Sec. 10. Laws 1998, chapter 389, article 8, section 43, as amended by Laws 2005, First 
205.10 	Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session 
205.11 	chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections 
205.12 	11, 12, and 13, is amended by adding a subdivision to read:
205.13 		Subd. 4a.Bonding authority; additional projects and extension of tax. (a) The city 
205.14 	of Rochester may issue bonds under Minnesota Statutes, chapter 475, to finance all or a 
205.15 	portion of the costs of the projects authorized in subdivision 3a and approved by the voters 
205.16 	as required under Minnesota Statutes, section 297A.99, subdivision 3, paragraph (a). The 
205.17 	aggregate principal amount of bonds issued under this subdivision may not exceed:
205.18 	(1) if the city passes a resolution under subdivision 3a, paragraph (c), clause (1), 
205.19 	$215,000,000 for the projects described in subdivision 3a, paragraph (a), clauses (1), item 
205.20 	(i), and (2) to (4), plus an amount to be applied to the payment of the costs of issuing the 
205.21 	bonds; or
205.22 	(2) if the city does not pass a resolution under subdivision 3a, paragraph (c), clause (1), 
205.23 	$205,000,000 for the projects described in subdivision 3a, paragraph (a), clauses (1), item 
205.24 	(ii), and (2) to (4), plus an amount to be applied to the payment of the costs of issuing the 
205.25 	bonds.
205.26 	(b) The bonds may be paid from or secured by any funds available to the city of 
205.27 	Rochester, including the tax authorized under subdivision 1a and the full faith and credit 
205.28 	of the city. The issuance of bonds under this subdivision is not subject to Minnesota Statutes, 
205.29 	sections 275.60 and 275.61.
205.30 	(c) The bonds are not included in computing any debt limitation applicable to the city 
205.31 	of Rochester, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
205.32 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
205.33 	the bonds under Minnesota Statutes, section 475.58, is not required.

206.1 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
206.2 	city of Rochester and its chief clerical officer comply with Minnesota Statutes, section 
206.3 	645.021, subdivisions 2 and 3.

206.4 	Sec. 11. Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by Laws 
206.5 	2005, First Special Session chapter 3, article 5, section 30, Laws 2011, First Special Session 
206.6 	chapter 7, article 4, section 7, and Laws 2013, chapter 143, article 10, section 13, is amended 
206.7 	to read:
206.8 		Subd. 5.Termination of taxes. (a) The taxes imposed under subdivisions 1 and 2 expire 
206.9 	at the later of (1) December 31, 2009, or (2) when the city council determines that sufficient 
206.10 	funds have been received from the taxes to finance the first $71,500,000 of capital 
206.11 	expenditures and bonds for the projects authorized in subdivision 3, including the amount 
206.12 	to prepay or retire at maturity the principal, interest, and premium due on any bonds issued 
206.13 	for the projects under subdivision 4, unless the taxes are extended as allowed in paragraph 
206.14 	(b). Any funds remaining after completion of the project and retirement or redemption of 
206.15 	the bonds shall also be used to fund the projects under subdivision 3. The taxes imposed 
206.16 	under subdivisions 1 and 2 may expire at an earlier time if the city so determines by 
206.17 	ordinance.
206.18 	(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other 
206.19 	contrary provision of law, ordinance, or city charter, the city of Rochester may, by ordinance, 
206.20 	extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009, if approved 
206.21 	by the voters of the city at a special election in 2005 or the general election in 2006. The 
206.22 	question put to the voters must indicate that an affirmative vote would allow up to an 
206.23 	additional $40,000,000 of sales tax revenues be raised and up to $40,000,000 of bonds to 
206.24 	be issued above the amount authorized in the June 23, 1998, referendum for the projects 
206.25 	specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are extended under 
206.26 	this paragraph, the taxes expire when the city council determines that sufficient funds have 
206.27 	been received from the taxes to finance the projects and to prepay or retire at maturity the 
206.28 	principal, interest, and premium due on any bonds issued for the projects under subdivision 
206.29 	4. Any funds remaining after completion of the project and retirement or redemption of the 
206.30 	bonds may be placed in the general fund of the city.
206.31 	(c) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other 
206.32 	contrary provision of law, ordinance, or city charter, the city of Rochester may, by ordinance, 
206.33 	extend the taxes authorized in subdivisions 1, paragraph (a), and 2, up to December 31, 
206.34 	2049, provided that all additional revenues above those necessary to fund the projects and 
207.1 	associated financing costs listed in subdivision 3, paragraphs (a) to (e), are committed to 
207.2 	fund public infrastructure projects contained in the development plan adopted under 
207.3 	Minnesota Statutes, section 469.43, including all financing costs; otherwise the taxes 
207.4 	terminate when the city council determines that sufficient funds have been received from 
207.5 	the taxes to finance expenditures and bonds for the projects authorized in subdivision 3, 
207.6 	paragraphs (a) to (e), plus an amount equal to the costs of issuance of the bonds and including 
207.7 	the amount to prepay or retire at maturity the principal, interest, and premiums due on any 
207.8 	bonds issued for the projects under subdivision 4.
207.9 	(d) The tax imposed under subdivision 1, paragraph (b), expires at the earlier of December 
207.10 	31, 2049, or when the city council determines that sufficient funds have been raised from 
207.11 	the tax plus all other city funding sources authorized in this article to meet the city obligation 
207.12 	for financing the public infrastructure projects contained in the development plan adopted 
207.13 	under Minnesota Statutes, section 469.43, including all financing costs.
207.14 	(e) The tax imposed under subdivision 1a expires at the earlier of (1) 24 years after first 
207.15 	imposed, or (2) when the city council determines that the amount of revenues received from 
207.16 	the tax is sufficient to pay for the project costs authorized under subdivision 3a for projects 
207.17 	approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision 
207.18 	3, paragraph (a), plus an amount sufficient to pay the costs related to issuance of the bonds 
207.19 	under subdivision 4a, including interest on the bonds. Except as otherwise provided in 
207.20 	Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining 
207.21 	after payment of the allowed costs due to the timing of the termination of the tax under 
207.22 	Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of 
207.23 	the city. The tax imposed under subdivision 1a may expire at an earlier time if the city so 
207.24 	determines by ordinance.

207.25 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
207.26 	city of Rochester and its chief clerical officer comply with Minnesota Statutes, section 
207.27 	645.021, subdivisions 2 and 3.

207.28 	Sec. 12. Laws 2008, chapter 366, article 7, section 20, as amended by Laws 2017, First 
207.29 	Special Session chapter 1, article 5, section 17, is amended to read:
207.30 	Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED.
 207.31 		Subdivision 1.Sales and use tax authorized. Notwithstanding Minnesota Statutes, 
207.32 	section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to the 
207.33 	approval of the voters on November 7, 2006, the city of North Mankato may impose by 
208.1 	ordinance a sales and use tax of one-half of one percent for the purposes specified in 
208.2 	subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
208.3 	administration, collection, and enforcement of the taxes authorized under this subdivision.
208.4 		Subd. 2.Use of revenues. Revenues received from the tax authorized by subdivision 1 
208.5 	must be used to pay all or part of the capital costs of the following projects:
208.6 	(1) the local share of the Trunk Highway 14/County State-Aid Highway 41 interchange 
208.7 	project;
208.8 	(2) development of regional parks and hiking and biking trails, including construction 
208.9 	of indoor regional athletic facilities;
208.10 	(3) expansion of the North Mankato Taylor Library;
208.11 	(4) riverfront redevelopment; and
208.12 	(5) lake improvement projects.
208.13 	The total amount of revenues from the tax in subdivision 1 that may be used to fund 
208.14 	these projects is $15,000,000 plus any associated bond costs.
208.15 		Subd. 2a.Authorization to extend the tax. Notwithstanding Minnesota Statutes, section 
208.16 	297A.99, subdivision 3, the North Mankato city council may, by resolution, extend the tax 
208.17 	authorized under subdivision 1 to cover an additional $9,000,000 $15,000,000 in bonds, 
208.18 	plus associated bond costs, to fund the projects in subdivision 2 pursuant to voter approval 
208.19 	to extend the tax at the November 8, 2016, general election.
208.20 		Subd. 3.Bonds. (a) The city of North Mankato, pursuant to the approval of the voters 
208.21 	at the November 7, 2006 referendum authorizing the imposition of the taxes in this section, 
208.22 	may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative 
208.23 	expenses for the projects described in subdivision 2, in an amount that does not exceed 
208.24 	$6,000,000. A separate election to approve the bonds under Minnesota Statutes, section 
208.25 	475.58, is not required.
208.26 	(b) The city of North Mankato, pursuant to approval of the voters at the November 8, 
208.27 	2016, referendum extending the tax to provide additional revenue to be spent for the projects 
208.28 	in subdivision 2, may issue additional bonds under Minnesota Statutes, chapter 475, to pay 
208.29 	capital and administrative expenses for those projects in an amount that does not exceed 
208.30 	$9,000,000 $15,000,000. A separate election to approve the bonds under Minnesota Statutes, 
208.31 	section 475.58, is not required.
209.1 	(c) The debt represented by the bonds is not included in computing any debt limitation 
209.2 	applicable to the city, and any levy of taxes under Minnesota Statutes, section 475.61, to 
209.3 	pay principal and interest on the bonds is not subject to any levy limitation.
209.4 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
209.5 	earlier of December 31, 2038 2044, or when revenues from the taxes first equal or exceed 
209.6 	$15,000,000 $21,000,000 plus the additional amount needed to pay costs related to issuance 
209.7 	of bonds under subdivision 3, including interest. Any funds remaining after completion of 
209.8 	the projects and retirement or redemption of the bonds shall be placed in a capital facilities 
209.9 	and equipment replacement fund of the city. The tax imposed under subdivision 1 may 
209.10 	expire at an earlier time if the city so determines by ordinance.

209.11 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
209.12 	city of North Mankato and its chief clerical officer comply with Minnesota Statutes, section 
209.13 	645.021, subdivisions 2 and 3.

209.14 	Sec. 13. Laws 2011, First Special Session chapter 7, article 4, section 14, is amended to 
209.15 	read:
209.16 	Sec. 14. CITY OF MARSHALL; SALES AND USE TAX.
 209.17 		Subdivision 1.Authorization. Notwithstanding Minnesota Statutes, section 297A.99, 
209.18 	subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city charter, the city of 
209.19 	Marshall, if approved by the voters at a general election held within two years of the date 
209.20 	of final enactment of this section, may impose the tax authorized under subdivision 2. Two 
209.21 	separate ballot questions must be presented to the voters, one for each of the two facility 
209.22 	projects named in subdivision 3.
209.23 		Subd. 2.Sales and use tax authorized. The city of Marshall may impose by ordinance 
209.24 	a sales and use tax of up to one-half of one percent for the purposes specified in subdivision 
209.25 	3. The provisions of Minnesota Statutes, section 297A.99, except subdivisions 1 and 2, 
209.26 	govern the imposition, administration, collection, and enforcement of the tax authorized 
209.27 	under this subdivision.
209.28 		Subd. 2a.Authorization; extension. (a) Notwithstanding Minnesota Statutes, section 
209.29 	297A.99, subdivision 3, paragraph (d), or 477A.016, or any other law, ordinance, or city 
209.30 	charter, after payment of the bonds authorized under subdivision 4, and if approved by the 
209.31 	voters at an election held on November 7, 2023, the city of Marshall may extend the sales 
209.32 	and use tax of one-half of one percent authorized under subdivision 2 for the purposes 
209.33 	specified in subdivision 3a.
210.1 	(b) Except as otherwise provided in this section, the provisions of Minnesota Statutes, 
210.2 	section 297A.99, govern the imposition, administration, collection, and enforcement of the 
210.3 	tax authorized under this subdivision. The tax imposed under this subdivision is in addition 
210.4 	to any local sales and use tax imposed under any other special law.
210.5 		Subd. 3.Use of sales and use tax revenues. The revenues derived from the tax authorized 
210.6 	under subdivision 2 must be used by the city of Marshall to pay the costs of collecting and 
210.7 	administering the sales and use tax and to pay all or part of the costs of the new and existing 
210.8 	facilities of the Minnesota Emergency Response and Industry Training Center and all or 
210.9 	part of the costs of the new facilities of the Southwest Minnesota Regional Amateur Sports 
210.10 	Center. Authorized expenses include, but are not limited to, acquiring property, predesign, 
210.11 	design, and paying construction, furnishing, and equipment costs related to these facilities 
210.12 	and paying debt service on bonds or other obligations issued by the city of Marshall under 
210.13 	subdivision 4 to finance the capital costs of these facilities.
210.14 		Subd. 3a.Use of sales and use tax revenues; aquatic center. The revenues derived 
210.15 	from the extension of the tax authorized under subdivision 2a must be used by the city of 
210.16 	Marshall to pay the costs of collecting and administering the tax and paying for $18,370,000 
210.17 	plus associated bonding costs for the construction of a new municipal aquatic center in the 
210.18 	city, including securing and paying debt service on bonds issued to finance the project.
210.19 		Subd. 4.Bonds. (a) If the imposition of a sales and use tax is approved by the voters, 
210.20 	the city of Marshall may issue bonds under Minnesota Statutes, chapter 475, to finance all 
210.21 	or a portion of the costs of the facilities authorized in subdivision 3, and may issue bonds 
210.22 	to refund bonds previously issued. The aggregate principal amount of bonds issued under 
210.23 	this subdivision may not exceed $17,290,000, plus an amount to be applied to the payment 
210.24 	of the costs of issuing the bonds. The bonds may be paid from or secured by any funds 
210.25 	available to the city of Marshall, including the tax authorized under subdivision 2.
210.26 	(b) The bonds are not included in computing any debt limitation applicable to the city 
210.27 	of Marshall, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
210.28 	and interest on the bonds, is not subject to any levy limitation. A separate election to approve 
210.29 	the bonds under Minnesota Statutes, section 475.58, is not required.
210.30 		Subd. 4a.Bonds; additional use and extension of tax. (a) After payment of the bonds 
210.31 	authorized under subdivision 4, the city of Marshall may issue bonds under Minnesota 
210.32 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
210.33 	subdivision 2a. The aggregate principal amount of bonds issued under this subdivision may 
210.34 	not exceed $18,370,000, plus an amount to be applied to the payment of the costs of issuing 
211.1 	the bonds. The bonds may be paid from or secured by any funds available to the city of 
211.2 	Marshall, including the tax authorized under subdivision 2a. The issuance of bonds under 
211.3 	this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
211.4 	(b) The bonds are not included in computing any debt limitation applicable to the city 
211.5 	of Marshall, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
211.6 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
211.7 	the bonds under Minnesota Statutes, section 475.58, is not required.
211.8 		Subd. 5.Termination of taxes. (a) The tax imposed under subdivision 2 expires at the 
211.9 	earlier of (1) 15 years after the tax is first imposed, or (2) when the city council determines 
211.10 	that the amount of revenues received from the tax to pay for the capital and administrative 
211.11 	costs of the facilities under subdivision 3 first equals or exceeds the amount authorized to 
211.12 	be spent for the facilities plus the additional amount needed to pay the costs related to 
211.13 	issuance of the bonds under subdivision 4, including interest on the bonds. Any funds 
211.14 	remaining after payment of all such costs and retirement or redemption of the bonds shall 
211.15 	be placed in the general fund of the city. The tax imposed under subdivision 2 may expire 
211.16 	at an earlier time if the city so determines by ordinance.
211.17 	(b) The tax imposed under subdivision 2a expires at the earlier of (1) 35 years after the 
211.18 	tax under subdivision 2 is first imposed, or (2) when the city council determines that the 
211.19 	amount of revenues received from the tax is sufficient to pay for the project costs authorized 
211.20 	under subdivision 3a, plus an amount sufficient to pay the costs related to issuance of the 
211.21 	bonds under subdivision 4a, including interest on the bonds. Except as otherwise provided 
211.22 	in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining 
211.23 	after payment of the allowed costs due to the timing of the termination of the tax under 
211.24 	Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of 
211.25 	the city. The tax imposed under subdivision 2a may expire at an earlier time if the city so 
211.26 	determines by ordinance.

211.27 	EFFECTIVE DATE. This section is effective the day after compliance by the governing 
211.28 	body of the city of Marshall and its chief clerical officer with Minnesota Statutes, section 
211.29 	645.021, subdivisions 2 and 3.

211.30 	Sec. 14. Laws 2019, First Special Session chapter 6, article 6, section 13, is amended by 
211.31 	adding a subdivision to read:
211.32 		Subd. 1a.Sales and use tax authorization; modification. Notwithstanding Minnesota 
211.33 	Statutes, section 477A.016, or any other law, ordinance, or city charter, the modifications 
211.34 	to bonding authority in subdivision 3 and the amount of tax that may be collected before 
212.1 	the termination of taxes in subdivision 5 are effective if approved by the voters at an election 
212.2 	as required under Minnesota Statutes, section 297A.99, subdivision 3.

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

212.6 	Sec. 15. Laws 2019, First Special Session chapter 6, article 6, section 13, subdivision 3, 
212.7 	is amended to read:
212.8 		Subd. 3.Bonding authority. (a) The city may issue bonds under Minnesota Statutes, 
212.9 	chapter 475, to pay the costs of the projects authorized in subdivision 2. The aggregate 
212.10 	principal amount of bonds issued under this subdivision may not exceed $1,500,000
212.11 	$8,135,000 plus an amount to be applied to the payment of the costs of issuing the bonds. 
212.12 	The bonds may be paid from or secured by any funds available to the city, including the 
212.13 	tax authorized under subdivision 1. The issuance of bonds under this subdivision is not 
212.14 	subject to Minnesota Statutes, sections 275.60 and 275.61.
212.15 	(b) The bonds are not included in computing any debt limitation applicable to the city, 
212.16 	and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest 
212.17 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
212.18 	under Minnesota Statutes, section 475.58, is not required.

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

212.22 	Sec. 16. Laws 2019, First Special Session chapter 6, article 6, section 13, subdivision 4, 
212.23 	is amended to read:
212.24 		Subd. 4.Termination of taxes. (a) The tax imposed under subdivision 1 expires at the 
212.25 	earlier of: (1) December 31, 2045; or (2) when the city council determines that $1,500,000
212.26 	$8,135,000 has been received from the tax to pay for the cost of the projects authorized 
212.27 	under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the 
212.28 	bonds authorized under subdivision 3, including interest on the bonds.
212.29 	(b) Any funds remaining after payment of all such costs and retirement or redemption 
212.30 	of the bonds shall be placed in the general fund of the city. The tax imposed under subdivision 
212.31 	1 may expire at an earlier time if the city so determines by ordinance.

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

213.4 	Sec. 17. Laws 2019, First Special Session chapter 6, article 6, section 18, is amended to 
213.5 	read:
213.6 	Sec. 18. CITY OF EXCELSIOR; LOCAL SALES AND USE TAX AUTHORIZED.
 213.7 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
213.8 	section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city 
213.9 	charter, the city of Excelsior may impose, by ordinance, a sales and use tax of up to one-half 
213.10 	of one percent for the purposes specified in subdivision 2, as approved by the voters at the 
213.11 	November 4, 2014, general election. Except as otherwise provided in this section, the 
213.12 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
213.13 	collection, and enforcement of the tax authorized under this subdivision.
213.14 		Subd. 1a.Authorization; additional revenues allowed. Notwithstanding Minnesota 
213.15 	Statutes, section 477A.016, or any other law, ordinance, or city charter, and if approved by 
213.16 	the voters at an election as required under Minnesota Statutes, section 297A.99, subdivision 
213.17 	3, the city of Excelsior may collect additional revenue from the sales and use tax authorized 
213.18 	under subdivision 1, for the purpose specified in subdivision 2a. Except as otherwise provided 
213.19 	in this section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
213.20 	administration, collection, and enforcement of the tax authorized under this subdivision. 
213.21 	The tax imposed under this subdivision is in addition to any local sales and use tax imposed 
213.22 	under any other special law.
213.23 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
213.24 	under subdivision 1 must be used by the city of Excelsior to pay the costs of collecting and 
213.25 	administering the tax and to finance the capital and administrative costs of improvements 
213.26 	to the commons as indicated in the Commons Master Plan as adopted by the city council 
213.27 	on November 20, 2017. Authorized expenses include, but are not limited to, improvements 
213.28 	for walkability and accessibility, enhancement of beach area and facilities, prevention and 
213.29 	management of shoreline erosion, redesign of the port and band shell, improvement of 
213.30 	playground equipment, and securing and paying debt service on bonds issued under 
213.31 	subdivision 3 or other obligations issued to the improvements listed in this subdivision in 
213.32 	the city of Excelsior.
214.1 		Subd. 2a.Use of sales and use tax revenues; expanded. The revenues derived from 
214.2 	the additional authorization granted under subdivision 1a must be used by the city of 
214.3 	Excelsior to pay the costs of collecting and administering the tax and paying for $23,000,000, 
214.4 	plus associated bonding costs, for the costs of improvements to the commons as indicated 
214.5 	in the Commons Master Plan as adopted by the city council on January 9, 2023, including 
214.6 	securing and paying debt service on bonds issued to finance the project.
214.7 		Subd. 3.Bonding authority. (a) If the imposition of the tax is approved by the voters 
214.8 	under subdivision 1, the city of Excelsior may issue bonds under Minnesota Statutes, chapter 
214.9 	475, to finance all or a portion of the costs of the projects authorized in subdivision 2, 
214.10 	without a second vote. The aggregate principal amount of bonds issued under this subdivision 
214.11 	may not exceed $7,000,000, plus an amount to be applied to the payment of the costs of 
214.12 	issuing the bonds. The bonds may be paid from or secured by any funds available to the 
214.13 	city of Excelsior, including the tax authorized under subdivision 1. The issuance of bonds 
214.14 	under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
214.15 	(b) The bonds are not included in computing any debt limitation applicable to the city 
214.16 	of Excelsior, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
214.17 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
214.18 	the bonds under Minnesota Statutes, section 475.58, is not required.
214.19 		Subd. 3a.Bonding authority; additional use of tax. (a) After payment of the bonds 
214.20 	authorized under subdivision 3, the city of Excelsior may issue bonds under Minnesota 
214.21 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
214.22 	subdivision 2a. The aggregate principal amount of bonds issued under this subdivision may 
214.23 	not exceed $23,000,000, plus an amount to be applied to the payment of the costs of issuing 
214.24 	the bonds.
214.25 	(b) The bonds may be paid from or secured by any funds available to the city of Excelsior, 
214.26 	including the tax authorized under subdivision 1a. The issuance of bonds under this 
214.27 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
214.28 	(c) The bonds are not included in computing any debt limitation applicable to the city 
214.29 	of Excelsior, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
214.30 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
214.31 	the bonds under Minnesota Statutes, section 475.58, is not required.
214.32 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 and subdivision 
214.33 	1a expires at the earlier of: (1) 25 years after the tax is first imposed; or (2) when the city 
214.34 	council determines that $7,000,000 $30,000,000 has been received from the tax to pay for 
215.1 	the cost of the projects authorized under subdivision 2 and subdivision 2a, plus an amount 
215.2 	sufficient to pay the costs related to issuance of the bonds authorized under subdivision 3
215.3 	and subdivision 3a, including interest on the bonds. Any funds remaining after payment of 
215.4 	all such costs and retirement or redemption of the bonds shall be placed in the general fund 
215.5 	of the city. The tax imposed under subdivision 1 may expire at an earlier time if the city so 
215.6 	determines by ordinance.

215.7 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
215.8 	city of Excelsior and its chief clerical officer comply with Minnesota Statutes, section 
215.9 	645.021, subdivisions 2 and 3.

215.10 	Sec. 18. Laws 2019, First Special Session chapter 6, article 6, section 26, is amended to 
215.11 	read:
215.12 	Sec. 26. CITY OF ROGERS; LOCAL TAXES AUTHORIZED.
 215.13 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
215.14 	sections 297A.99 and 477A.016, or any other law or ordinance, and as approved by the 
215.15 	voters at the general election of November 6, 2018, the city of Rogers may impose, by 
215.16 	ordinance, a sales and use tax of one-quarter of one percent for the purposes specified in 
215.17 	subdivision 3. Except as otherwise provided in this section, the provisions of Minnesota 
215.18 	Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement 
215.19 	of the taxes authorized under this subdivision.
215.20 		Subd. 2.Excise tax authorized. Notwithstanding Minnesota Statutes, section 477A.016, 
215.21 	or any other contrary provision of law, or ordinance, the city of Rogers may impose by 
215.22 	ordinance, for the purposes specified in subdivision 3, an excise tax of up to $20 per motor 
215.23 	vehicle, as defined by ordinance, purchased or acquired from any person engaged within 
215.24 	the city of Rogers in the business of selling motor vehicles at retail.
215.25 		Subd. 3.Use of sales and use tax and excise tax revenues. (a) The revenues derived 
215.26 	from the taxes authorized under subdivisions 1 and 2 must be used by the city of Rogers to 
215.27 	pay the costs of collecting and administering the taxes and the capital and administrative 
215.28 	costs of any or all of the following projects:
215.29 	(1) trail and pedestrian facilities including an I-94 pedestrian crossing, a County Road 
215.30 	144 pedestrian tunnel, and other new trails and trail connections;
215.31 	(2) aquatics facilities consisting of either or both of a splash pad and any contribution 
215.32 	toward the community portion of a school pool; and
216.1 	(3) community athletic facilities including construction of South Community park, site 
216.2 	improvements for future recreation facilities, and a multipurpose indoor turf facility.
216.3 	(b) The total that may be raised from the taxes to pay for these projects is limited to 
216.4 	$16,500,000 $25,000,000, plus the costs related to the issuance and paying debt service on 
216.5 	bonds for these projects.
216.6 		Subd. 4.Bonding authority. (a) The city of Rogers may issue bonds under Minnesota 
216.7 	Statutes, chapter 475, pursuant to approval by the voters at the general election of November 
216.8 	6, 2018, to finance all or a portion of the costs of the projects authorized in subdivision 3. 
216.9 	The aggregate principal amount of bonds issued under this subdivision may not exceed 
216.10 	$16,500,000 $25,000,000, minus an amount equal to any state grant authorized before 
216.11 	October 1, 2019, to fund any of the projects listed in subdivision 3, and plus an amount 
216.12 	equal to interest on and the costs of issuing the bonds. The bonds may be paid from or 
216.13 	secured by any funds available to the city of Rogers, including the taxes authorized under 
216.14 	subdivisions 1 and 2.
216.15 	(b) The bonds are not included in computing any debt limitation applicable to the city 
216.16 	of Rogers, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
216.17 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
216.18 	the bonds under Minnesota Statutes, section 475.58, is not required.
216.19 		Subd. 5.Termination of taxes. The taxes imposed under subdivisions 1 and 2 expire 
216.20 	at the earlier of: (1) 20 years after the taxes are first imposed; or (2) when the city council 
216.21 	determines that $16,500,000 $25,000,000, minus an amount equal to any state grant 
216.22 	authorized before October 1, 2019, to fund any of the projects listed in subdivision 3, and 
216.23 	plus an amount sufficient to pay interest on and the costs of issuing the bonds authorized 
216.24 	under subdivision 4, has been received from the taxes to pay for the cost of the projects 
216.25 	authorized under subdivision 3. Any funds remaining after payment of all such costs and 
216.26 	payment of the bonds in full shall be placed in the general fund of the city. The taxes imposed 
216.27 	under subdivisions 1 and 2 may expire at an earlier time if the city so determines by 
216.28 	ordinance.

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

217.1 	Sec. 19. Laws 2021, First Special Session chapter 14, article 8, section 5, is amended to 
217.2 	read:
217.3 	Sec. 5. CITY OF EDINA; TAXES AUTHORIZED.
 217.4 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
217.5 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
217.6 	and if approved by the voters at a general election as required under Minnesota Statutes, 
217.7 	section 297A.99, subdivision 3, the city of Edina may impose by ordinance a sales and use 
217.8 	tax of one-half of one percent for the purposes specified in subdivision 2. Except as otherwise 
217.9 	provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the 
217.10 	imposition, administration, collection, and enforcement of the tax authorized under this 
217.11 	subdivision. The tax imposed under this subdivision is in addition to any local sales and 
217.12 	use tax imposed under any other special law.
217.13 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
217.14 	under subdivision 1 must be used by the city of Edina to pay the costs of collecting and 
217.15 	administering the tax and paying for the following projects in the city, including securing 
217.16 	and paying debt service on bonds issued to finance all or part of the following projects:
217.17 	(1) $17,700,000 plus associated bonding costs for development of Fred Richards Park 
217.18 	as identified in the Fred Richards Park Master Plan; and
217.19 	(2) $21,600,000 $53,300,000 plus associated bonding costs for improvements to Braemar 
217.20 	Park as identified in the Braemar Park Master Plan.
217.21 		Subd. 3.Bonding authority. (a) The city of Edina may issue bonds under Minnesota 
217.22 	Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in 
217.23 	subdivision 2 and approved by the voters as required under Minnesota Statutes, section 
217.24 	297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued 
217.25 	under this subdivision may not exceed: (1) $17,700,000 for the project listed in subdivision 
217.26 	2, clause (1), plus an amount to be applied to the payment of the costs of issuing the bonds; 
217.27 	and (2) $21,600,000 $53,300,000 for the project listed in subdivision 2, clause (2), plus an 
217.28 	amount to be applied to the payment of the costs of issuing the bonds. The bonds may be 
217.29 	paid from or secured by any funds available to the city of Edina, including the tax authorized 
217.30 	under subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota 
217.31 	Statutes, sections 275.60 and 275.61.
217.32 	(b) The bonds are not included in computing any debt limitation applicable to the city 
217.33 	of Edina, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
218.1 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
218.2 	the bonds under Minnesota Statutes, section 475.58, is not required.
218.3 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
218.4 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 19 years 
218.5 	after the tax is first imposed, or (2) when the city council determines that the amount received 
218.6 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
218.7 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
218.8 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
218.9 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
218.10 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
218.11 	any funds remaining after payment of the allowed costs due to the timing of the termination 
218.12 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the 
218.13 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
218.14 	if the city so determines by ordinance.

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

218.18 	Sec. 20. Laws 2021, First Special Session chapter 14, article 8, section 6, subdivision 2, 
218.19 	is amended to read:
218.20 		Subd. 2.Use of sales and use tax revenues. (a) The revenues derived from the tax 
218.21 	authorized under subdivision 1 must be used by the city of Fergus Falls to pay the costs of 
218.22 	collecting and administering the tax and for the following projects in the city, including 
218.23 	securing and paying debt service, on bonds issued to finance all or part of the following 
218.24 	projects:
218.25 	(1) $7,800,000 for an aquatics center; and
218.26 	(2) $5,200,000 for the DeLagoon Improvement Project.
218.27 	(b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved 
218.28 	by the voters at the November 8, 2022, general election, the city of Fergus Falls may by 
218.29 	ordinance increase the cost for the project in paragraph (a), clause (1), by up to $3,000,000, 
218.30 	without holding another local election.

218.31 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
218.32 	city of Fergus Falls and its chief clerical officer comply with Minnesota Statutes, section 
218.33 	645.021, subdivisions 2 and 3.

219.1 	Sec. 21. Laws 2021, First Special Session chapter 14, article 8, section 6, subdivision 3, 
219.2 	is amended to read:
219.3 		Subd. 3.Bonding authority. (a) The city of Fergus Falls may issue bonds under 
219.4 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities 
219.5 	authorized in subdivision 2, and approved by the voters as required under Minnesota Statutes, 
219.6 	section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds 
219.7 	issued under this subdivision may not exceed:
219.8 	(1) $7,800,000 for the project listed in subdivision 2, clause (1), plus an amount needed 
219.9 	to pay capitalized interest and an amount to be applied to the payment of the costs of issuing 
219.10 	the bonds; and
219.11 	(2) $5,200,000 for the project listed in subdivision 2, clause (2), plus an amount needed 
219.12 	to pay capitalized interest and an amount to be applied to the payment of the costs of issuing 
219.13 	the bonds.
219.14 	(b) The bonds may be paid from or secured by any funds available to the city of Fergus 
219.15 	Falls, including the tax authorized under subdivision 1. The issuance of bonds under this 
219.16 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
219.17 	(c) The bonds are not included in computing any debt limitation applicable to the city 
219.18 	of Fergus Falls, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
219.19 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
219.20 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
219.21 	(d) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved 
219.22 	by the voters at the November 8, 2022, general election, the city of Fergus Falls may by 
219.23 	ordinance increase the amount of bonding for the project in paragraph (a), clause (1), by up 
219.24 	to $3,000,000, without holding another local election.

219.25 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
219.26 	city of Fergus Falls and its chief clerical officer comply with Minnesota Statutes, section 
219.27 	645.021, subdivisions 2 and 3.

219.28 	Sec. 22. Laws 2021, First Special Session chapter 14, article 8, section 15, subdivision 2, 
219.29 	is amended to read:
219.30 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
219.31 	under subdivision 1 must be used by the city of Oakdale to pay the costs of collecting and 
219.32 	administering the tax and paying for the following projects in the city, including securing 
219.33 	and paying debt service on bonds issued to finance all or part of the following projects:
220.1 	(1) $22,000,000 $28,000,000 plus associated bonding costs for construction of a new 
220.2 	public works facility; and
220.3 	(2) $15,000,000 $18,000,000 plus associated bonding costs for construction and 
220.4 	rehabilitation, and associated building costs of the police department facility.

220.5 	Sec. 23. Laws 2021, First Special Session chapter 14, article 8, section 15, subdivision 3, 
220.6 	is amended to read:
220.7 		Subd. 3.Bonding authority. (a) The city of Oakdale may issue bonds under Minnesota 
220.8 	Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in 
220.9 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
220.10 	not exceed: (1) $22,000,000 $28,000,000 for the project listed in subdivision 2, clause (1), 
220.11 	plus an amount applied to the payment of costs of issuing the bonds; and (2) $15,000,000
220.12 	$18,000,000 for the projects listed in subdivision 2, clause (2), plus an amount applied to 
220.13 	the payment of costs of issuing the bonds. The bonds may be paid from or secured by any 
220.14 	funds available to the city of Oakdale, including the tax authorized under subdivision 1. 
220.15 	The issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections 
220.16 	275.60 and 275.61.
220.17 	(b) The bonds are not included in computing any debt limitation applicable to the city. 
220.18 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
220.19 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
220.20 	under Minnesota Statutes, section 475.58, is not required.

220.21 	Sec. 24. Laws 2021, First Special Session chapter 14, article 8, section 15, subdivision 4, 
220.22 	is amended to read:
220.23 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
220.24 	earlier of: (1) 25 30 years after the tax is first imposed; or (2) when the city council 
220.25 	determines that the city has received from this tax $37,000,000 $46,000,000 to fund the 
220.26 	projects listed in subdivision 2, plus an amount sufficient to pay costs related to issuance 
220.27 	of any bonds authorized in subdivision 3, including interest on the bonds. Except as otherwise 
220.28 	provided under Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds 
220.29 	remaining after payment of the allowed costs due to timing of the termination under 
220.30 	Minnesota Statutes, section 297A.99, shall be placed in the city's general fund. The tax 
220.31 	imposed under subdivision 1 may expire at an earlier time if the city so determines by 
220.32 	ordinance.

221.1 	Sec. 25. Laws 2021, First Special Session chapter 14, article 8, section 15, is amended by 
221.2 	adding a subdivision to read:
221.3 		Subd. 5.Requirements. (a) The city of Oakdale must adopt a resolution that includes 
221.4 	the requirements of Minnesota Statutes, section 297A.99, subdivision 2, paragraph (a), and 
221.5 	reflects the increases in project costs and bond issuance in subdivisions 2 and 3 and the 
221.6 	increase in the duration of the tax in subdivision 4, and submit the resolution to the state 
221.7 	auditor no later than September 1, 2023.
221.8 	(b) The modifications in subdivisions 2 to 4 are subject to approval by the voters of the 
221.9 	city of Oakdale at an election conducted on the first Tuesday after the first Monday in 
221.10 	November within the two-year period after the governing body of the city has received 
221.11 	authority to modify the tax. Notwithstanding the authorizing legislation, a modification that 
221.12 	is not approved by the voters may not be funded with the local sales tax revenue and the 
221.13 	termination date of the tax set in subdivision 4 must be reduced proportionately based on 
221.14 	the share of that project's cost to the total costs of all projects included in the authorizing 
221.15 	legislation.

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

221.19 	Sec. 26. Laws 2021, First Special Session chapter 14, article 8, section 20, subdivision 4, 
221.20 	is amended to read:
221.21 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
221.22 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 19 20 years 
221.23 	after the tax is first imposed, or (2) when the city council determines that the amount received 
221.24 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
221.25 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
221.26 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
221.27 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
221.28 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
221.29 	any funds remaining after payment of the allowed costs due to the timing of the termination 
221.30 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
221.31 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
221.32 	if the city so determines by ordinance.

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

222.1 	Sec. 27. BELTRAMI COUNTY; TAXES AUTHORIZED.
 222.2 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
222.3 	section 297A.99, subdivision 1, or 477A.016, or any other law or ordinance, and if approved 
222.4 	by the voters at an election as required under Minnesota Statutes, section 297A.99, 
222.5 	subdivision 3, Beltrami County may impose by ordinance a sales and use tax of five-eighths 
222.6 	of one percent for the purpose specified in subdivision 2. Except as otherwise provided in 
222.7 	this section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
222.8 	administration, collection, and enforcement of the tax authorized under this subdivision. 
222.9 	The tax imposed under this subdivision is in addition to any local sales and use tax imposed 
222.10 	under any other special law.
222.11 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
222.12 	under subdivision 1 must be used by Beltrami County to pay the costs of collecting and 
222.13 	administering the tax, and to finance up to $80,000,000 for the construction of a new county 
222.14 	jail. Authorized costs include the associated bond costs for any bonds issued under 
222.15 	subdivision 3.
222.16 		Subd. 3.Bonding authority. (a) Beltrami County may issue bonds under Minnesota 
222.17 	Statutes, chapter 475, to finance the costs of the facility authorized in subdivision 2. The 
222.18 	aggregate principal amount of bonds issued under this subdivision may not exceed 
222.19 	$80,000,000 for the project listed in subdivision 2, plus an amount to be applied to the 
222.20 	payment of the costs of issuing the bonds. The bonds may be paid from or secured by any 
222.21 	funds available to the county, including the tax authorized under subdivision 1. The issuance 
222.22 	of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 
222.23 	275.61.
222.24 	(b) The bonds are not included in computing any debt limitation applicable to the county, 
222.25 	and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest 
222.26 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
222.27 	under Minnesota Statutes, section 475.58, is not required.
222.28 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
222.29 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 30 years 
222.30 	after the tax is first imposed; or (2) when the county board determines that the amount 
222.31 	received from the tax is sufficient to pay $80,000,000 in project costs authorized under 
222.32 	subdivision 2, plus an amount sufficient to pay the costs related to issuance of any bonds 
222.33 	authorized under subdivision 3, including interest on the bonds. Except as otherwise provided 
222.34 	in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining 
223.1 	after payment of the allowed costs due to the timing of the termination of the tax under 
223.2 	Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of 
223.3 	the county. The tax imposed under subdivision 1 may expire at an earlier time if the county 
223.4 	so determines by ordinance.

223.5 	EFFECTIVE DATE. This section is effective the day after the governing body of 
223.6 	Beltrami County and its chief clerical officer comply with Minnesota Statutes, section 
223.7 	645.021, subdivisions 2 and 3.

223.8 	Sec. 28. CITY OF BLACKDUCK; TAXES AUTHORIZED.
 223.9 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
223.10 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
223.11 	at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the 
223.12 	city of Blackduck may impose, by ordinance, a sales and use tax of up to one-half of one 
223.13 	percent for the purposes specified in subdivision 2. Except as otherwise provided in this 
223.14 	section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
223.15 	administration, collection, and enforcement of the tax authorized under this subdivision. 
223.16 	The tax imposed under this subdivision is in addition to any local sales and use tax imposed 
223.17 	under any other special law.
223.18 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
223.19 	under subdivision 1 must be used by the city of Blackduck to pay the costs of collecting 
223.20 	and administering the tax, including associated bond costs on bonds issued under subdivision 
223.21 	3, and securing and paying debt service on the bonds, and to finance all or part of the 
223.22 	following projects:
223.23 	(1) $200,000 for electricity and utility improvements at the city campground;
223.24 	(2) $250,000 for construction of a playground and ADA-compliant restroom at the city 
223.25 	wayside rest;
223.26 	(3) $300,000 for trail extensions and improvements adjacent to Wayside Rest Park;
223.27 	(4) $150,000 for irrigation improvements at the city golf course; and
223.28 	(5) $100,000 for rehabilitation of the Blackduck Community Library.
223.29 		Subd. 3.Bonding authority. (a) The city of Blackduck may issue bonds under Minnesota 
223.30 	Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in 
223.31 	subdivision 2 and approved by the voters as required under Minnesota Statutes, section 
224.1 	297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued 
224.2 	under this subdivision may not exceed:
224.3 	(1) $200,000 for the project listed in subdivision 2, clause (1), plus an amount to be 
224.4 	applied to the payment of the costs of issuing the bonds;
224.5 	(2) $250,000 for the project listed in subdivision 2, clause (2), plus an amount to be 
224.6 	applied to the payment of the costs of issuing the bonds;
224.7 	(3) $300,000 for the project listed in subdivision 2, clause (3), plus an amount to be 
224.8 	applied to the payment of the costs of issuing the bonds;
224.9 	(4) $150,000 for the project listed in subdivision 2, clause (4), plus an amount to be 
224.10 	applied to the payment of the costs of issuing the bonds; and
224.11 	(5) $100,000 for the project listed in subdivision 2, clause (5), plus an amount to be 
224.12 	applied to the payment of the costs of issuing the bonds.
224.13 	(b) The bonds may be paid from or secured by any funds available to the county, including 
224.14 	the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not 
224.15 	subject to Minnesota Statutes, sections 275.60 and 275.61.
224.16 	(c) The bonds are not included in computing any debt limitation applicable to the county. 
224.17 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
224.18 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
224.19 	under Minnesota Statutes, section 475.58, is not required.
224.20 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
224.21 	earlier of: (1) 20 years after the tax is first imposed; or (2) when the county determines that 
224.22 	the amount it has received from this tax is sufficient to pay for the project costs authorized 
224.23 	under subdivision 2 for projects approved by voters as required under Minnesota Statutes, 
224.24 	section 297A.99, subdivision 3, paragraph (a), plus an amount sufficient to pay the costs 
224.25 	related to issuance of any bonds authorized under subdivision 3, including interest on the 
224.26 	bonds. Except as otherwise provided in Minnesota Statutes, section 297A.99, subdivision 
224.27 	3, paragraph (f), any funds remaining after payment of the allowed costs due to timing of 
224.28 	the termination of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall 
224.29 	be placed in the county's general fund. The tax imposed under subdivision 1 may expire at 
224.30 	an earlier time if the county determines by ordinance.

224.31 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
224.32 	city of Blackduck and its chief clerical officer comply with Minnesota Statutes, section 
224.33 	645.021, subdivisions 2 and 3.

225.1 	Sec. 29. CITY OF BLOOMINGTON; TAXES AUTHORIZED.
 225.2 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
225.3 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
225.4 	and if approved by the voters at an election as required under Minnesota Statutes, section 
225.5 	297A.99, subdivision 3, the city of Bloomington may impose by ordinance a sales and use 
225.6 	tax of one-half of one percent for the purposes specified in subdivision 2. Except as otherwise 
225.7 	provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the 
225.8 	imposition, administration, collection, and enforcement of the tax authorized under this 
225.9 	subdivision. The tax imposed under this subdivision is in addition to any local sales and 
225.10 	use tax imposed under any other special law.
225.11 		Subd. 2.Use of sales and use tax revenues. (a) The revenues derived from the tax 
225.12 	authorized under subdivision 1 must be used by the city of Bloomington to pay the costs of 
225.13 	collecting and administering the tax and paying for the following projects in the city, 
225.14 	including securing and paying debt service on bonds issued to finance all or part of the 
225.15 	following projects:
225.16 	(1) $35,000,000 for new construction and rehabilitation of the Bloomington Ice Garden 
225.17 	and associated infrastructure;
225.18 	(2) $100,000,000 for construction of a new Community Health and Wellness Center 
225.19 	and associated infrastructure; and
225.20 	(3) $20,000,000 for new construction and restoration of the Nine Mile Creek Corridor 
225.21 	Renewal and associated infrastructure.
225.22 	(b) For purposes of this subdivision, "associated infrastructure" includes but is not limited 
225.23 	to any or all of the following items required for the safe access or use of the capital projects: 
225.24 	facilities, roads, lighting, sidewalks, parking, landscaping, and utilities.
225.25 		Subd. 3.Bonding authority. (a) The city of Bloomington may issue bonds under 
225.26 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the projects 
225.27 	authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes, 
225.28 	section 297A.99, subdivision 3, paragraph (a).The aggregate principal amount of bonds 
225.29 	issued under this subdivision may not exceed:
225.30 	(1) $35,000,000 for the project listed in subdivision 2, paragraph (a), clause (1), plus an 
225.31 	amount to be applied to the payment of the costs of issuing the bonds;
225.32 	(2) $100,000,000 for the project listed in subdivision 2, paragraph (a), clause (2), plus 
225.33 	an amount to be applied to the payment of the costs of issuing the bonds; and
226.1 	(3) $20,000,000 for the project listed in subdivision 2, paragraph (a), clause (3), plus an 
226.2 	amount to be applied to the payment of the costs of issuing the bonds.
226.3 	(b) The bonds may be paid from or secured by any funds available to the city of 
226.4 	Bloomington, including the tax authorized under subdivision 1. The issuance of bonds under 
226.5 	this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
226.6 	(c) The bonds are not included in computing any debt limitation applicable to the city 
226.7 	of Bloomington, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
226.8 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
226.9 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
226.10 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
226.11 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years 
226.12 	after the tax is first imposed, or (2) when the city council determines that the amount received 
226.13 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
226.14 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
226.15 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
226.16 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
226.17 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
226.18 	any funds remaining after payment of the allowed costs due to the timing of the termination 
226.19 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the 
226.20 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
226.21 	if the city so determines by ordinance.

226.22 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
226.23 	city of Bloomington and its chief clerical officer comply with Minnesota Statutes, section 
226.24 	645.021, subdivisions 2 and 3.

226.25 	Sec. 30. BROOKLYN CENTER; TAXES AUTHORIZED.
 226.26 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
226.27 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
226.28 	and if approved by the voters at a general election as required under Minnesota Statutes, 
226.29 	section 297A.99, subdivision 3, the city of Brooklyn Center may impose by ordinance a 
226.30 	sales and use tax of one-half of one percent for the purposes specified in subdivision 2. 
226.31 	Except as otherwise provided in this section, the provisions of Minnesota Statutes, section 
226.32 	297A.99, govern the imposition, administration, collection, and enforcement of the tax 
226.33 	authorized under this subdivision. The tax imposed under this subdivision is in addition to 
226.34 	any local sales and use tax imposed under any other special law.
227.1 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
227.2 	under subdivision 1 must be used by the city of Brooklyn Center to pay the costs of collecting 
227.3 	and administering the tax and paying for the following projects in the city, including securing 
227.4 	and paying debt service on bonds issued to finance $44,000,000 plus associated bonding 
227.5 	costs for the renovation and expansion of the Brooklyn Center Community Center.
227.6 		Subd. 3.Bonding authority. (a) The city of Brooklyn Center may issue bonds under 
227.7 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities 
227.8 	authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes, 
227.9 	section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds 
227.10 	issued under this subdivision may not exceed $44,000,000 for the projects listed in 
227.11 	subdivision 2 plus an amount to be applied to the payment of the costs of issuing the bonds.
227.12 	(b) The bonds may be paid from or secured by any funds available to the city of Brooklyn 
227.13 	Center, including the tax authorized under subdivision 1 and the full faith and credit of the 
227.14 	city. The issuance of bonds under this subdivision is not subject to Minnesota Statutes, 
227.15 	sections 275.60 and 275.61.
227.16 	(c) The bonds are not included in computing any debt limitation applicable to the city 
227.17 	of Brooklyn Center and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
227.18 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
227.19 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
227.20 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
227.21 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years 
227.22 	after being first imposed, or (2) when the city council determines that the amount received 
227.23 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
227.24 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
227.25 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
227.26 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
227.27 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
227.28 	any funds remaining after payment of the allowed costs due to the timing of the termination 
227.29 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
227.30 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
227.31 	if the city so determines by ordinance.

227.32 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
227.33 	city of Brooklyn Center and its chief clerical officer comply with Minnesota Statutes, section 
227.34 	645.021, subdivisions 2 and 3.

228.1 	Sec. 31. CITY OF CHANHASSEN; TAXES AUTHORIZED.
 228.2 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
228.3 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
228.4 	and if approved by the voters at an election as required under Minnesota Statutes, section 
228.5 	297A.99, subdivision 3, the city of Chanhassen may impose by ordinance a sales and use 
228.6 	tax of up to one-half of one percent for the purposes specified in subdivision 2. Except as 
228.7 	otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, 
228.8 	govern the imposition, administration, collection, and enforcement of the tax authorized 
228.9 	under this subdivision. The tax imposed under this subdivision is in addition to any local 
228.10 	sales and use tax imposed under any other special law.
228.11 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
228.12 	under subdivision 1 must be used by the city of Chanhassen to pay the costs of collecting 
228.13 	and administering the tax and paying for up to $40,000,000 for construction costs of the 
228.14 	Avienda Recreational Facility, including securing and paying debt service on bonds issued 
228.15 	to finance all or part of the project.
228.16 		Subd. 3.Bonding authority. (a) The city of Chanhassen may issue bonds under 
228.17 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the projects 
228.18 	authorized in subdivision 2. The aggregate principal amount of bonds issued under this 
228.19 	subdivision may not exceed $40,000,000, plus an amount to be applied to the payment of 
228.20 	the costs of issuing the bonds.
228.21 	(b) The bonds may be paid from or secured by any funds available to the city of 
228.22 	Chanhassen, including the tax authorized under subdivision 1. The issuance of bonds under 
228.23 	this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
228.24 	(c) The bonds are not included in computing any debt limitation applicable to the city 
228.25 	of Chanhassen, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
228.26 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
228.27 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
228.28 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
228.29 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years 
228.30 	after the tax is first imposed, or (2) when the city council determines that the amount received 
228.31 	from the tax is sufficient to pay for the project costs authorized under subdivision 2, plus 
228.32 	an amount sufficient to pay the costs related to issuance of any bonds authorized under 
228.33 	subdivision 3, including interest on the bonds. Except as otherwise provided in Minnesota 
228.34 	Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining after payment 
229.1 	of the allowed costs due to the timing of the termination of the tax under Minnesota Statutes, 
229.2 	section 297A.99, subdivision 12, must be placed in the general fund of the city. The tax 
229.3 	imposed under subdivision 1 may expire at an earlier time if the city so determines by 
229.4 	ordinance.

229.5 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
229.6 	city of Chanhassen and its chief clerical officer comply with Minnesota Statutes, section 
229.7 	645.021, subdivisions 2 and 3.

229.8 	Sec. 32. COTTAGE GROVE; TAXES AUTHORIZED.
 229.9 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
229.10 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
229.11 	at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the 
229.12 	city of Cottage Grove may impose by ordinance a sales and use tax of one-half of one 
229.13 	percent for the purposes specified in subdivision 2. Except as otherwise provided in this 
229.14 	section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
229.15 	administration, collection, and enforcement of the tax authorized under this subdivision. 
229.16 	The tax imposed under this subdivision is in addition to any local sales and use tax imposed 
229.17 	under any other special law.
229.18 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
229.19 	under subdivision 1 must be used by the city of Cottage Grove to pay the costs of collecting 
229.20 	and administering the tax and paying for the following projects in the city, including securing 
229.21 	and paying debt service on bonds issued to finance all or part of the following projects:
229.22 	(1) $17,000,000 for construction of improvements to Hamlet Park;
229.23 	(2) $6,000,000 for construction of improvements to River Oaks Golf Course; and
229.24 	(3) $13,000,000 for construction of improvements to the Mississippi Dunes Park project.
229.25 		Subd. 3.Bonding authority. (a) The city of Cottage Grove may issue bonds under 
229.26 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the projects 
229.27 	authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes, 
229.28 	section 297A.99, subdivision 3, paragraph (a).The aggregate principal amount of bonds 
229.29 	issued under this subdivision may not exceed:
229.30 	(1) $17,000,000 for the project listed in subdivision 2, clause (1), plus an amount to be 
229.31 	applied to the payment of the costs of issuing the bonds;
230.1 	(2) $6,000,000 for the project listed in subdivision 2, clause (2), plus an amount to be 
230.2 	applied to the payment of the costs of issuing the bonds; and
230.3 	(3) $13,000,000 for the project listed in subdivision 2, clause (3), plus an amount to be 
230.4 	applied to the payment of the costs of issuing the bonds.
230.5 	(b) The bonds may be paid from or secured by any funds available to the city of Cottage 
230.6 	Grove, including the tax authorized under subdivision 1. The issuance of bonds under this 
230.7 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
230.8 	(c) The bonds are not included in computing any debt limitation applicable to the city 
230.9 	of Cottage Grove, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
230.10 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
230.11 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
230.12 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
230.13 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 25 years 
230.14 	after the tax is first imposed, or (2) when the city council determines that the amount received 
230.15 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
230.16 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
230.17 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
230.18 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
230.19 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
230.20 	any funds remaining after payment of the allowed costs due to the timing of the termination 
230.21 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the 
230.22 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
230.23 	if the city so determines by ordinance.

230.24 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
230.25 	city of Cottage Grove and its chief clerical officer comply with Minnesota Statutes, section 
230.26 	645.021, subdivisions 2 and 3.

230.27 	Sec. 33. CITY OF DETROIT LAKES; TAXES AUTHORIZED.
 230.28 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
230.29 	section 297A.99, subdivision 3, paragraphs (a) and (d), and section 477A.016, or any other 
230.30 	law, ordinance, or city charter, and if approved by the voters at an election held on either 
230.31 	November 7, 2023, or as otherwise required under Minnesota Statutes, section 297A.99, 
230.32 	subdivision 3, the city of Detroit Lakes may impose by ordinance a sales and use tax of 
230.33 	one-half of one percent for the purpose specified in subdivision 2. Except as otherwise 
231.1 	provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the 
231.2 	imposition, administration, collection, and enforcement of the tax authorized under this 
231.3 	subdivision. The tax imposed under this subdivision is in addition to any local sales and 
231.4 	use tax imposed under any other special law.
231.5 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
231.6 	under subdivision 1 must be used by the city of Detroit Lakes to pay the costs of collecting 
231.7 	and administering the tax, and to finance up to $17,300,000, plus associated bond costs, for 
231.8 	the construction and renovation of the Detroit Lakes Pavilion, including park improvements, 
231.9 	beachfront improvements, and parking improvements.
231.10 		Subd. 3.Bonding authority. (a) The city of Detroit Lakes may issue bonds under 
231.11 	Minnesota Statutes, chapter 475, to finance all or a portion of the project costs authorized 
231.12 	in subdivision 2. The aggregate principal amount of bonds issued under this subdivision 
231.13 	may not exceed $17,300,000, plus an amount to be applied to the payment of the costs of 
231.14 	issuing the bonds.
231.15 	(b) The bonds may be paid from or secured by any funds available to the city of Detroit 
231.16 	Lakes, including the tax authorized under subdivision 1. The issuance of bonds under this 
231.17 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
231.18 	(c) The bonds are not included in computing any debt limitation applicable to the city 
231.19 	of Detroit Lakes, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
231.20 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
231.21 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
231.22 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
231.23 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 12 years 
231.24 	after the tax is first imposed, or (2) when the city council determines that the amount received 
231.25 	from the tax is sufficient to pay for the project costs authorized under subdivision 2, plus 
231.26 	an amount sufficient to pay the costs related to issuance of any bonds authorized under 
231.27 	subdivision 3, including interest on the bonds. Except as otherwise provided in Minnesota 
231.28 	Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining after payment 
231.29 	of the allowed costs due to the timing of the termination of the tax under Minnesota Statutes, 
231.30 	section 297A.99, subdivision 12, must be placed in the general fund of the city. The tax 
231.31 	imposed under subdivision 1 may expire at an earlier time if the city so determines by 
231.32 	ordinance.

232.1 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
232.2 	city of Detroit Lakes and its chief clerical officer comply with Minnesota Statutes, section 
232.3 	645.021, subdivisions 2 and 3.

232.4 	Sec. 34. CITY OF DILWORTH; TAXES AUTHORIZED.
 232.5 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
232.6 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
232.7 	at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the 
232.8 	city of Dilworth may impose by ordinance a sales and use tax of one-half of one percent 
232.9 	for the purpose specified in subdivision 2. Except as otherwise provided in this section, the 
232.10 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
232.11 	collection, and enforcement of the tax authorized under this subdivision. The tax imposed 
232.12 	under this subdivision is in addition to any local sales and use tax imposed under any other 
232.13 	special law.
232.14 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
232.15 	under subdivision 1 must be used by the city of Dilworth to pay the costs of collecting and 
232.16 	administering the tax, and to finance up to $5,400,000 for the construction of a community 
232.17 	and recreational center. Authorized costs include the associated bond costs for any bonds 
232.18 	issued under subdivision 3.
232.19 		Subd. 3.Bonding authority. (a) The city of Dilworth may issue bonds under Minnesota 
232.20 	Statutes, chapter 475, to finance the costs of the facility authorized in subdivision 2. The 
232.21 	aggregate principal amount of bonds issued under this subdivision may not exceed $5,400,000 
232.22 	for the project listed in subdivision 2, plus an amount to be applied to the payment of the 
232.23 	costs of issuing the bonds.
232.24 	(b) The bonds may be paid from or secured by any funds available to the city, including 
232.25 	the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not 
232.26 	subject to Minnesota Statutes, sections 275.60 and 275.61.
232.27 	(c) The bonds are not included in computing any debt limitation applicable to the city, 
232.28 	and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest 
232.29 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
232.30 	under Minnesota Statutes, section 475.58, is not required.
232.31 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
232.32 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 25 years 
232.33 	after the tax is first imposed; or (2) when the city council determines that the amount received 
233.1 	from the tax is sufficient to pay $5,400,000 in project costs authorized under subdivision 
233.2 	2, plus an amount sufficient to pay the costs related to issuance of any bonds authorized 
233.3 	under subdivision 3, including interest on the bonds. Except as otherwise provided in 
233.4 	Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining 
233.5 	after payment of the allowed costs due to the timing of the termination of the tax under 
233.6 	Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of 
233.7 	the city. The tax imposed under subdivision 1 may expire at an earlier time if the city so 
233.8 	determines by ordinance.

233.9 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
233.10 	city of Dilworth and its chief clerical officer comply with Minnesota Statutes, section 
233.11 	645.021, subdivisions 2 and 3.

233.12 	Sec. 35. CITY OF EAST GRAND FORKS; TAXES AUTHORIZED.
 233.13 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
233.14 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
233.15 	at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the 
233.16 	city of East Grand Forks may impose by ordinance a sales and use tax of up to one percent 
233.17 	for the purposes specified in subdivision 2. Except as otherwise provided in this section, 
233.18 	the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
233.19 	collection, and enforcement of the tax authorized under this subdivision. The tax imposed 
233.20 	under this subdivision is in addition to any local sales and use tax imposed under any other 
233.21 	special law.
233.22 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
233.23 	under subdivision 1 must be used by the city of East Grand Forks to pay the costs of 
233.24 	collecting and administering the tax and paying for the following projects in the city, 
233.25 	including securing and paying debt service on bonds issued to finance all or part of the 
233.26 	following projects:
233.27 	(1) $6,745,000 plus associated bonding costs for reconstruction and remodeling of, and 
233.28 	upgrades and additions to, the Civic Center Sports Complex; and
233.29 	(2) $8,000,000 plus associated bonding costs for reconstruction and remodeling of, and 
233.30 	upgrades and additions to, the VFW Memorial Arena and Blue Line Arena.
233.31 		Subd. 3.Bonding authority. (a) The city of East Grand Forks may issue bonds under 
233.32 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities 
233.33 	authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes, 
234.1 	section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds 
234.2 	issued under this subdivision may not exceed:
234.3 	(1) $6,745,000 for the project listed in subdivision 2, clause (1), plus an amount to be 
234.4 	applied to the payment of the costs of issuing the bonds; and
234.5 	(2) $8,000,000 for the project listed in subdivision 2, clause (2), plus an amount to be 
234.6 	applied to the payment of the costs of issuing the bonds.
234.7 	(b) The bonds may be paid from or secured by any funds available to the city, including 
234.8 	the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not 
234.9 	subject to Minnesota Statutes, sections 275.60 and 275.61.
234.10 	(c) The bonds are not included in computing any debt limitation applicable to the city 
234.11 	and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest 
234.12 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
234.13 	under Minnesota Statutes, section 475.58, is not required.
234.14 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
234.15 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years 
234.16 	after being first imposed, or (2) when the city council determines that the amount received 
234.17 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
234.18 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
234.19 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
234.20 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
234.21 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
234.22 	any funds remaining after payment of the allowed costs due to the timing of the termination 
234.23 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
234.24 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
234.25 	if the city so determines by ordinance.

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

234.29 	Sec. 36. CITY OF FAIRMONT; TAXES AUTHORIZED.
 234.30 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
234.31 	section 297A.99, subdivisions 1 and 3, paragraph (d), or 477A.016, or any other law, 
234.32 	ordinance, or city charter, and if approved by the voters at an election as required under 
234.33 	Minnesota Statutes, section 297A.99, subdivision 3, the city of Fairmont may impose by 
235.1 	ordinance a sales and use tax of one-half of one percent for the purpose specified in 
235.2 	subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota 
235.3 	Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement 
235.4 	of the tax authorized under this subdivision. The tax imposed under this subdivision is in 
235.5 	addition to any local sales and use tax imposed under any other special law.
235.6 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
235.7 	under subdivision 1 must be used by the city of Fairmont to pay the costs of collecting and 
235.8 	administering the tax and to finance up to $20,000,000, plus associated bonding costs, for 
235.9 	construction of a community center and ice arena.
235.10 		Subd. 3.Bonding authority. (a) The city of Fairmont may issue bonds under Minnesota 
235.11 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
235.12 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
235.13 	not exceed $20,000,000, plus an amount to be applied to the payment of the costs of issuing 
235.14 	the bonds.
235.15 	(b) The bonds may be paid from or secured by any funds available to the city of Fairmont, 
235.16 	including the tax authorized under subdivision 1. The issuance of bonds under this 
235.17 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
235.18 	(c) The bonds are not included in computing any debt limitation applicable to the city 
235.19 	of Fairmont, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
235.20 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
235.21 	the bonds under Minnesota Statutes, section 475.58, is not required.
235.22 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
235.23 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 25 years 
235.24 	after the tax is first imposed, or (2) when the city council determines that the amount received 
235.25 	from the tax is sufficient to pay, plus an amount sufficient to pay the costs related to issuance 
235.26 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
235.27 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
235.28 	any funds remaining after payment of the allowed costs due to the timing of the termination 
235.29 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the 
235.30 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
235.31 	if the city so determines by ordinance.

235.32 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
235.33 	city of Fairmont and its chief clerical officer comply with Minnesota Statutes, section 
235.34 	645.021, subdivisions 2 and 3.

236.1 	Sec. 37. CITY OF HENDERSON; TAXES AUTHORIZED.
 236.2 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
236.3 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
236.4 	at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the 
236.5 	city of Henderson may impose by ordinance a sales and use tax of one-half of one percent 
236.6 	for the purposes specified in subdivision 2. Except as otherwise provided in this section, 
236.7 	the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
236.8 	collection, and enforcement of the tax authorized under this subdivision. The tax imposed 
236.9 	under this subdivision is in addition to any local sales and use tax imposed under any other 
236.10 	special law.
236.11 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
236.12 	under subdivision 1 must be used by the city of Henderson to pay the costs of collecting 
236.13 	and administering the tax, and to finance up to $250,000 for the Allanson's Park Campground 
236.14 	and Trail project. Authorized project costs include improvements to trails, improvements 
236.15 	to the park campground and related facilities, utility improvements, handicap access 
236.16 	improvements, and other improvements related to linkage to other local trails, as well as 
236.17 	the associated bond costs for any bonds issued under subdivision 3.
236.18 		Subd. 3.Bonding authority. (a) The city of Henderson may issue bonds under Minnesota 
236.19 	Statutes, chapter 475, to finance up to $250,000 of the portion of the costs of the project 
236.20 	authorized in subdivision 2, and approved by the voters as required under Minnesota Statutes, 
236.21 	section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds 
236.22 	issued under this subdivision may not exceed $250,000 plus an amount to be applied to the 
236.23 	payment of the costs of issuing the bonds.
236.24 	(b) The bonds may be paid from or secured by any funds available to the city of 
236.25 	Henderson, including the tax authorized under subdivision 1. The issuance of bonds under 
236.26 	this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
236.27 	(c) The bonds are not included in computing any debt limitation applicable to the city 
236.28 	of Henderson, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
236.29 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
236.30 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
236.31 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
236.32 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 15 years 
236.33 	after the tax is first imposed; or (2) when the city council determines that the amount received 
236.34 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
237.1 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
237.2 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
237.3 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
237.4 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
237.5 	any funds remaining after payment of the allowed costs due to the timing of the termination 
237.6 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
237.7 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
237.8 	if the city so determines by ordinance.

237.9 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
237.10 	city of Henderson and its chief clerical officer comply with Minnesota Statutes, section 
237.11 	645.021, subdivisions 2 and 3.

237.12 	Sec. 38. CITY OF HIBBING; TAXES AUTHORIZED.
 237.13 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
237.14 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
237.15 	and if approved by the voters at an election as required under Minnesota Statutes, section 
237.16 	297A.99, subdivision 3, the city of Hibbing may impose by ordinance a sales and use tax 
237.17 	of one-half of one percent for the purpose specified in subdivision 2. Except as otherwise 
237.18 	provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the 
237.19 	imposition, administration, collection, and enforcement of the tax authorized under this 
237.20 	subdivision. The tax imposed under this subdivision is in addition to any local sales and 
237.21 	use tax imposed under any other special law.
237.22 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
237.23 	under subdivision 1 must be used by the city of Hibbing to pay the costs of collecting and 
237.24 	administering the tax, and to finance up to $19,600,000 for the construction of a regional 
237.25 	public safety center. Authorized costs include the associated bond costs for any bonds issued 
237.26 	under subdivision 3.
237.27 		Subd. 3.Bonding authority. (a) The city of Hibbing may issue bonds under Minnesota 
237.28 	Statutes, chapter 475, to finance the costs of the facility authorized in subdivision 2. The 
237.29 	aggregate principal amount of bonds issued under this subdivision may not exceed 
237.30 	$19,600,000 for the project listed in subdivision 2, plus an amount to be applied to the 
237.31 	payment of the costs of issuing the bonds.
237.32 	(b) The bonds may be paid from or secured by any funds available to the city, including 
237.33 	the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not 
237.34 	subject to Minnesota Statutes, sections 275.60 and 275.61.
238.1 	(c) The bonds are not included in computing any debt limitation applicable to the city, 
238.2 	and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest 
238.3 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
238.4 	under Minnesota Statutes, section 475.58, is not required.
238.5 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
238.6 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 20 years 
238.7 	after the tax is first imposed; or (2) when the city council determines that the amount received 
238.8 	from the tax is sufficient to pay $19,600,000 in project costs authorized under subdivision 
238.9 	2, plus an amount sufficient to pay the costs related to issuance of any bonds authorized 
238.10 	under subdivision 3, including interest on the bonds. Except as otherwise provided in 
238.11 	Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining 
238.12 	after payment of the allowed costs due to the timing of the termination of the tax under 
238.13 	Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of 
238.14 	the city. The tax imposed under subdivision 1 may expire at an earlier time if the city so 
238.15 	determines by ordinance.

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

238.19 	Sec. 39. GOLDEN VALLEY; TAXES AUTHORIZED.
 238.20 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
238.21 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
238.22 	and if approved by the voters at an election as required under Minnesota Statutes, section 
238.23 	297A.99, subdivision 3, the city of Golden Valley may impose by ordinance a sales and 
238.24 	use tax of 1.25 percent for the purposes specified in subdivision 2. Except as otherwise 
238.25 	provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the 
238.26 	imposition, administration, collection, and enforcement of the tax authorized under this 
238.27 	subdivision. The tax imposed under this subdivision is in addition to any local sales and 
238.28 	use tax imposed under any other special law.
238.29 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
238.30 	under subdivision 1 must be used by the city of Golden Valley to pay the costs of collecting 
238.31 	and administering the tax and paying for the following projects in the city, including securing 
238.32 	and paying debt service on bonds issued to finance all or part of the following projects:
238.33 	(1) $45,000,000 plus associated bonding costs for construction of a new public works 
238.34 	facility;
239.1 	(2) $15,000,000 plus associated bonding costs for the purchase of land for a new public 
239.2 	works facility; and
239.3 	(3) $45,000,000 plus associated bonding costs for construction of a new public safety 
239.4 	facility.
239.5 		Subd. 3.Bonding authority. (a) The city of Golden Valley may issue bonds under 
239.6 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the projects 
239.7 	authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes, 
239.8 	section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds 
239.9 	issued under this subdivision may not exceed:
239.10 	(1) $45,000,000 for the project listed in subdivision 2, clause (1), plus an amount to be 
239.11 	applied to the payment of the costs of issuing the bonds;
239.12 	(2) $15,000,000 for the project listed in subdivision 2, clause (2), plus an amount to be 
239.13 	applied to the payment of the costs of issuing the bonds; and
239.14 	(3) $45,000,000 for the project listed in subdivision 2, clause (3), plus an amount to be 
239.15 	applied to the payment of the costs of issuing the bonds.
239.16 	(b) The bonds may be paid from or secured by any funds available to the city of Golden 
239.17 	Valley, including the tax authorized under subdivision 1. The issuance of bonds under this 
239.18 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
239.19 	(c) The bonds are not included in computing any debt limitation applicable to the city 
239.20 	of Golden Valley, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
239.21 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
239.22 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
239.23 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
239.24 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 30 years 
239.25 	after the tax is first imposed, or (2) when the city council determines that the amount received 
239.26 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
239.27 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
239.28 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
239.29 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
239.30 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
239.31 	any funds remaining after payment of the allowed costs due to the timing of the termination 
239.32 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the 
240.1 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
240.2 	if the city so determines by ordinance.

240.3 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
240.4 	city of Golden Valley and its chief clerical officer comply with Minnesota Statutes, section 
240.5 	645.021, subdivisions 2 and 3.

240.6 	Sec. 40. CITY OF JACKSON; TAXES AUTHORIZED.
 240.7 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
240.8 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
240.9 	at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the 
240.10 	city of Jackson may impose by ordinance a sales and use tax of one percent for the purpose 
240.11 	specified in subdivision 2. Except as otherwise provided in this section, the provisions of 
240.12 	Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and 
240.13 	enforcement of the tax authorized under this subdivision. The tax imposed under this 
240.14 	subdivision is in addition to any local sales and use tax imposed under any other special 
240.15 	law.
240.16 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
240.17 	under subdivision 1 must be used by the city of Jackson to pay the costs of collecting and 
240.18 	administering the tax, and to finance up to $5,750,000 for construction, renovation, and 
240.19 	improvements to a new outdoor athletic complex, including securing and paying debt service 
240.20 	on bonds issued under subdivision 3.
240.21 		Subd. 3.Bonding authority. (a) The city of Jackson may issue bonds under Minnesota 
240.22 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
240.23 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
240.24 	not exceed $5,750,000, plus an amount to be applied to the payment of the costs of issuing 
240.25 	the bonds.
240.26 	(b) The bonds may be paid from or secured by any funds available to the city of Jackson, 
240.27 	including the tax authorized under subdivision 1. The issuance of bonds under this 
240.28 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
240.29 	(c) The bonds are not included in computing any debt limitation applicable to the city 
240.30 	of Jackson, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
240.31 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
240.32 	the bonds under Minnesota Statutes, section 475.58, is not required.
241.1 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
241.2 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 30 years 
241.3 	after the tax is first imposed, or (2) when the city council determines that the amount received 
241.4 	from the tax is sufficient to pay for the project costs authorized under subdivision 2, plus 
241.5 	an amount sufficient to pay the costs related to issuance of any bonds authorized under 
241.6 	subdivision 3, including interest on the bonds. Except as otherwise provided in Minnesota 
241.7 	Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining after payment 
241.8 	of the allowed costs due to the timing of the termination of the tax under Minnesota Statutes, 
241.9 	section 297A.99, subdivision 12, must be placed in the general fund of the city. The tax 
241.10 	imposed under subdivision 1 may expire at an earlier time if the city so determines by 
241.11 	ordinance.

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

241.15 	Sec. 41. JACKSON COUNTY; TAXES AUTHORIZED.
 241.16 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
241.17 	section 477A.016, or any other law or ordinance, and if approved by the voters at an election 
241.18 	as required under Minnesota Statutes, section 297A.99, subdivision 3, Jackson County may 
241.19 	impose by ordinance a sales and use tax of one percent for the purposes specified in 
241.20 	subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota 
241.21 	Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement 
241.22 	of the tax authorized under this subdivision. The tax imposed under this subdivision is in 
241.23 	addition to any local sales and use tax imposed under any other special law.
241.24 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
241.25 	under subdivision 1 must be used by Jackson County to pay the costs of collecting and 
241.26 	administering the tax and paying for up to $39,000,000 for construction of a law enforcement 
241.27 	center and government center in the county, including associated bond costs for any bonds 
241.28 	issued under subdivision 3.
241.29 		Subd. 3.Bonding authority. (a) Jackson County may issue bonds under Minnesota 
241.30 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
241.31 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
241.32 	not exceed $39,000,000, plus an amount to be applied to the payment of the costs of issuing 
241.33 	the bonds.
242.1 	(b) The bonds may be paid from or secured by any funds available to Jackson County, 
242.2 	including the tax authorized under subdivision 1. The issuance of bonds under this 
242.3 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
242.4 	(c) The bonds are not included in computing any debt limitation applicable to Jackson 
242.5 	County, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
242.6 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
242.7 	the bonds under Minnesota Statutes, section 475.58, is not required.
242.8 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
242.9 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 30 years 
242.10 	after the tax is first imposed, or (2) when the county board of commissioners determines 
242.11 	that the amount received from the tax is sufficient to pay for the project costs authorized 
242.12 	under subdivision 2, plus an amount sufficient to pay the costs related to issuance of any 
242.13 	bonds authorized under subdivision 3, including interest on the bonds. Except as otherwise 
242.14 	provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds 
242.15 	remaining after payment of the allowed costs due to the timing of the termination of the tax 
242.16 	under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general 
242.17 	fund of the county. The tax imposed under subdivision 1 may expire at an earlier time if 
242.18 	the county so determines by ordinance.

242.19 	EFFECTIVE DATE. This section is effective the day after the governing body of 
242.20 	Jackson County and its chief clerical officer comply with Minnesota Statutes, section 
242.21 	645.021, subdivisions 2 and 3.

242.22 	Sec. 42. MONTICELLO; TAXES AUTHORIZED.
 242.23 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
242.24 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
242.25 	and if approved by the voters at an election as required under Minnesota Statutes, section 
242.26 	297A.99, subdivision 3, the city of Monticello may impose by ordinance a sales and use 
242.27 	tax of one-half of one percent for the purposes specified in subdivision 2. Except as otherwise 
242.28 	provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the 
242.29 	imposition, administration, collection, and enforcement of the tax authorized under this 
242.30 	subdivision. The tax imposed under this subdivision is in addition to any local sales and 
242.31 	use tax imposed under any other special law.
242.32 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
242.33 	under subdivision 1 must be used by the city of Monticello to pay the costs of collecting 
243.1 	and administering the tax and paying for the following projects in the city, including securing 
243.2 	and paying debt service on bonds issued to finance all or part of the following projects:
243.3 	(1) $15,000,000 for new construction and rehabilitation of the Bertram Chain of Lakes 
243.4 	Regional Athletic Park; and
243.5 	(2) $15,000,000 for new construction and improvements to the Pointes at Cedar 
243.6 	Recreation Area.
243.7 		Subd. 3.Bonding authority. (a) The city of Monticello may issue bonds under Minnesota 
243.8 	Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in 
243.9 	subdivision 2 and approved by the voters as required under Minnesota Statutes, section 
243.10 	297A.99, subdivision 3, paragraph (a).The aggregate principal amount of bonds issued 
243.11 	under this subdivision may not exceed:
243.12 	(1) $15,000,000 for the project listed in subdivision 2, clause (1), plus an amount to be 
243.13 	applied to the payment of the costs of issuing the bonds; and
243.14 	(2) $15,000,000 for the project listed in subdivision 2, clause (2), plus an amount to be 
243.15 	applied to the payment of the costs of issuing the bonds.
243.16 	(b) The bonds may be paid from or secured by any funds available to the city of 
243.17 	Monticello, including the tax authorized under subdivision 1. The issuance of bonds under 
243.18 	this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
243.19 	(c) The bonds are not included in computing any debt limitation applicable to the city 
243.20 	of Monticello, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
243.21 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
243.22 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
243.23 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
243.24 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years 
243.25 	after the tax is first imposed, or (2) when the city council determines that the amount received 
243.26 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
243.27 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
243.28 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
243.29 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
243.30 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
243.31 	any funds remaining after payment of the allowed costs due to the timing of the termination 
243.32 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the 
244.1 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
244.2 	if the city so determines by ordinance.

244.3 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
244.4 	city of Monticello and its chief clerical officer comply with Minnesota Statutes, section 
244.5 	645.021, subdivisions 2 and 3.

244.6 	Sec. 43. CITY OF MOUNDS VIEW; TAXES AUTHORIZED.
 244.7 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
244.8 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
244.9 	at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the 
244.10 	city of Mounds View may impose, by ordinance, a sales and use tax of up to one and one-half 
244.11 	percent for the purposes specified in subdivision 2. Except as otherwise provided in this 
244.12 	section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
244.13 	administration, collection, and enforcement of the tax authorized under this subdivision. 
244.14 	The tax imposed under this subdivision is in addition to any local sales and use tax imposed 
244.15 	under any other special law.
244.16 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
244.17 	under subdivision 1 must be used by the city of Mounds View to pay the costs of collecting 
244.18 	and administering the tax, including associated bond costs on bonds issued under subdivision 
244.19 	3, and securing and paying debt service on the bonds, and to finance up to $16,500,000, for 
244.20 	construction of an expanded community center into a regional amateur sports and recreational 
244.21 	facility.
244.22 		Subd. 3.Bonding authority. (a) The city of Mounds View may issue bonds under 
244.23 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project 
244.24 	authorized in subdivision 2. The aggregate principal amount of bonds issued under this 
244.25 	subdivision may not exceed $16,500,000, plus an amount applied to the payment of costs 
244.26 	of issuing the bonds.
244.27 	(b) The bonds may be paid from or secured by any funds available to the county, including 
244.28 	the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not 
244.29 	subject to Minnesota Statutes, sections 275.60 and 275.61.
244.30 	(c) The bonds are not included in computing any debt limitation applicable to the county. 
244.31 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
244.32 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
244.33 	under Minnesota Statutes, section 475.58, is not required.
245.1 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
245.2 	earlier of: (1) 20 years after the tax is first imposed; or (2) when the county determines that 
245.3 	it has received from this tax $16,500,000 to fund the project listed in subdivision 2, plus an 
245.4 	amount sufficient to pay costs related to issuance of any bonds authorized under subdivision 
245.5 	3, including interest on the bonds. Except as otherwise provided in Minnesota Statutes, 
245.6 	section 297A.99, subdivision 3, paragraph (f), any funds remaining after payment of the 
245.7 	allowed costs due to the timing of the termination of the tax under Minnesota Statutes, 
245.8 	section 297A.99, subdivision 12, shall be placed in the county's general fund. The tax 
245.9 	imposed under subdivision 1 may expire at an earlier time if the county determines by 
245.10 	ordinance.

245.11 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
245.12 	city of Mounds View and its chief clerical officer comply with Minnesota Statutes, section 
245.13 	645.021, subdivisions 2 and 3.

245.14 	Sec. 44. CITY OF PROCTOR; TAXES AUTHORIZED.
 245.15 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
245.16 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
245.17 	at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the 
245.18 	city of Proctor may impose by ordinance a sales and use tax of one-half of one percent for 
245.19 	the purposes specified in subdivision 2. Except as otherwise provided in this section, the 
245.20 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
245.21 	collection, and enforcement of the tax authorized under this subdivision. The tax imposed 
245.22 	under this subdivision is in addition to any local sales and use tax imposed under any other 
245.23 	special law.
245.24 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
245.25 	under subdivision 1 must be used by the city of Proctor to pay the costs of collecting and 
245.26 	administering the tax and to finance up to $6,900,000 plus associated bonding costs for 
245.27 	construction of a new regional and statewide trail spur in the city, including securing and 
245.28 	paying debt service on bonds issued to finance all or part of the project.
245.29 		Subd. 3.Bonding authority. (a) The city of Proctor may issue bonds under Minnesota 
245.30 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
245.31 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
245.32 	not exceed $6,900,000, plus an amount to be applied to the payment of the costs of issuing 
245.33 	the bonds.
246.1 	(b) The bonds may be paid from or secured by any funds available to the city of Proctor, 
246.2 	including the tax authorized under subdivision 1. The issuance of bonds under this 
246.3 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
246.4 	(c) The bonds are not included in computing any debt limitation applicable to the city 
246.5 	of Proctor, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
246.6 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
246.7 	the bonds under Minnesota Statutes, section 475.58, is not required.
246.8 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
246.9 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years 
246.10 	after the tax is first imposed, or (2) when the city council determines that the amount received 
246.11 	from the tax is sufficient to pay for the project costs authorized under subdivision 2, plus 
246.12 	an amount sufficient to pay the costs related to issuance of any bonds authorized under 
246.13 	subdivision 3, including interest on the bonds. Except as otherwise provided in Minnesota 
246.14 	Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining after payment 
246.15 	of the allowed costs due to the timing of the termination of the tax under Minnesota Statutes, 
246.16 	section 297A.99, subdivision 12, shall be placed in the general fund of the city. The tax 
246.17 	imposed under subdivision 1 may expire at an earlier time if the city so determines by 
246.18 	ordinance.

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

246.22 	Sec. 45. RICE COUNTY; TAXES AUTHORIZED.
 246.23 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
246.24 	section 477A.016, or any other law or ordinance, and if approved by the voters at an election 
246.25 	as required under Minnesota Statutes, section 297A.99, subdivision 3, Rice County may 
246.26 	impose by ordinance a sales and use tax of three-eighths of one percent for the purpose 
246.27 	specified in subdivision 2. Except as otherwise provided in this section, the provisions of 
246.28 	Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and 
246.29 	enforcement of the tax authorized under this subdivision. The tax imposed under this 
246.30 	subdivision is in addition to any local sales and use tax imposed under any other special 
246.31 	law.
246.32 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
246.33 	under subdivision 1 must be used by Rice County to pay the costs of collecting and 
246.34 	administering the tax and paying for up to $48,000,000 for the construction of a public 
247.1 	safety facility in the county, including associated bond costs for any bonds issued under 
247.2 	subdivision 3.
247.3 		Subd. 3.Bonding authority. (a) Rice County may issue bonds under Minnesota Statutes, 
247.4 	chapter 475, to finance all or a portion of the costs of the project authorized in subdivision 
247.5 	2. The aggregate principal amount of bonds issued under this subdivision may not exceed 
247.6 	$48,000,000, plus an amount to be applied to the payment of the costs of issuing the bonds.
247.7 	(b) The bonds may be paid from or secured by any funds available to Rice County, 
247.8 	including the tax authorized under subdivision 1. The issuance of bonds under this 
247.9 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
247.10 	(c) The bonds are not included in computing any debt limitation applicable to Rice 
247.11 	County, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
247.12 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
247.13 	the bonds under Minnesota Statutes, section 475.58, is not required.
247.14 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
247.15 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 30 years 
247.16 	after the tax is first imposed, or (2) when the county board of commissioners determines 
247.17 	that the amount received from the tax is sufficient to pay for the project costs authorized 
247.18 	under subdivision 2, plus an amount sufficient to pay the costs related to issuance of any 
247.19 	bonds authorized under subdivision 3, including interest on the bonds. Except as otherwise 
247.20 	provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds 
247.21 	remaining after payment of the allowed costs due to the timing of the termination of the tax 
247.22 	under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general 
247.23 	fund of the county. The tax imposed under subdivision 1 may expire at an earlier time if 
247.24 	the county so determines by ordinance.

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

247.28 	Sec. 46. RICHFIELD; TAXES AUTHORIZED.
 247.29 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
247.30 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
247.31 	at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the 
247.32 	city of Richfield may impose, by ordinance, a sales and use tax of one-half of one percent 
247.33 	for the purposes specified in subdivision 2. Except as otherwise provided in this section, 
248.1 	the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
248.2 	collection, and enforcement of the tax authorized under this subdivision.
248.3 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
248.4 	under subdivision 1 must be used by the city of Richfield to pay the costs of collecting and 
248.5 	administering the tax and paying for the following projects in the city, including securing 
248.6 	and paying debt service on bonds issued to finance all or part of the following regional 
248.7 	projects:
248.8 	(1) $11,000,000 plus associated bonding costs for construction of the Wood Lake Nature 
248.9 	Center building;
248.10 	(2) $9,000,000 plus associated bonding costs for construction of the Veterans Park 
248.11 	Complex; and
248.12 	(3) $45,000,000 plus associated bonding costs for construction of the Richfield 
248.13 	Community Center Project.
248.14 		Subd. 3.Bonding authority. (a) The city of Richfield may issue bonds under Minnesota 
248.15 	Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in 
248.16 	subdivision 2 and approved by voters as required under Minnesota Statutes, section 297A.99, 
248.17 	subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this 
248.18 	subdivision may not exceed $65,000,000, plus an amount applied to the payment of costs 
248.19 	of issuing the bonds. The bonds may be paid from or secured by any funds available to the 
248.20 	city of Richfield, including the tax authorized under subdivision 1. The issuance of bonds 
248.21 	under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
248.22 	(b) The bonds are not included in computing any debt limitation applicable to the city. 
248.23 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
248.24 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
248.25 	under Minnesota Statutes, section 475.58, is not required.
248.26 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
248.27 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years 
248.28 	after being first imposed, or (2) when the city council determines that the amount received 
248.29 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
248.30 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
248.31 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
248.32 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
248.33 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
248.34 	any funds remaining after payment of the allowed costs due to the timing of the termination 
249.1 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
249.2 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
249.3 	if the city so determines by ordinance.

249.4 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
249.5 	city of Richfield and its chief clerical officer comply with Minnesota Statutes, section 
249.6 	645.021, subdivisions 2 and 3.

249.7 	Sec. 47. CITY OF ROSEVILLE; TAXES AUTHORIZED.
 249.8 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
249.9 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
249.10 	and if approved by the voters at an election as required under Minnesota Statutes, section 
249.11 	297A.99, subdivision 3, the city of Roseville may impose by ordinance a sales and use tax 
249.12 	of one-half of one percent for the purposes specified in subdivision 2. Except as otherwise 
249.13 	provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the 
249.14 	imposition, administration, collection, and enforcement of the tax authorized under this 
249.15 	subdivision. The tax imposed under this subdivision is in addition to any local sales and 
249.16 	use tax imposed under any other special law.
249.17 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
249.18 	under subdivision 1 must be used by the city of Roseville to pay the costs of collecting and 
249.19 	administering the tax and paying for the following projects in the city, including securing 
249.20 	and paying debt service on bonds issued to finance all or part of the following projects:
249.21 	(1) $64,200,000 for construction of a new maintenance facility; and
249.22 	(2) $12,700,000 for construction of a new license and passport center.
249.23 		Subd. 3.Bonding authority. (a) The city of Roseville may issue bonds under Minnesota 
249.24 	Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in 
249.25 	subdivision 2 and approved by the voters as required under Minnesota Statutes, section 
249.26 	297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued 
249.27 	under this subdivision may not exceed:
249.28 	(1) $64,200,000 for the project listed in subdivision 2, clause (1), plus an amount to be 
249.29 	applied to the payment of the costs of issuing the bonds; and
249.30 	(2) $12,700,000 for the project listed in subdivision 2, clause (2), plus an amount to be 
249.31 	applied to the payment of the costs of issuing the bonds.
250.1 	(b) The bonds may be paid from or secured by any funds available to the city of Roseville, 
250.2 	including the tax authorized under subdivision 1. The issuance of bonds under this 
250.3 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
250.4 	(c) The bonds are not included in computing any debt limitation applicable to the city 
250.5 	of Roseville, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
250.6 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
250.7 	the bonds under Minnesota Statutes, section 475.58, is not required.
250.8 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
250.9 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years 
250.10 	after the tax is first imposed, or (2) when the city council determines that the amount received 
250.11 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
250.12 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
250.13 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
250.14 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
250.15 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
250.16 	any funds remaining after payment of the allowed costs due to the timing of the termination 
250.17 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
250.18 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
250.19 	if the city so determines by ordinance.

250.20 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
250.21 	city of Roseville and its chief clerical officer comply with Minnesota Statutes, section 
250.22 	645.021, subdivisions 2 and 3.

250.23 	Sec. 48. CITY OF ST. JOSEPH; TAXES AUTHORIZED.
 250.24 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
250.25 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
250.26 	at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the 
250.27 	city of St. Joseph may impose by ordinance a sales and use tax of one-half of one percent 
250.28 	for the purposes specified in subdivision 2. Except as otherwise provided in this section, 
250.29 	the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
250.30 	collection, and enforcement of the tax authorized under this subdivision. The tax imposed 
250.31 	under this subdivision is in addition to any local sales and use tax imposed under any other 
250.32 	special law.
250.33 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
250.34 	under subdivision 1 must be used by the city of St. Joseph to pay the costs of collecting and 
251.1 	administering the tax and paying for the following projects in the city, including securing 
251.2 	and paying debt service on bonds issued to finance all or part of the following projects:
251.3 	(1) $11,000,000 for construction of Phase II of the St. Joseph community center 
251.4 	expansion; and
251.5 	(2) $6,000,000 for Phases II and III of the improvements to East Park along the Sauk 
251.6 	River in the city of St. Joseph.
251.7 		Subd. 3.Bonding authority. (a) The city of St. Joseph may issue bonds under Minnesota 
251.8 	Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in 
251.9 	subdivision 2 and approved by the voters as required under Minnesota Statutes, section 
251.10 	297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued 
251.11 	under this subdivision may not exceed:
251.12 	(1) $11,000,000 for the project listed in subdivision 2, clause (1), plus an amount to be 
251.13 	applied to the payment of the costs of issuing the bonds; and
251.14 	(2) $6,000,000 for the project listed in subdivision 2, clause (2), plus an amount to be 
251.15 	applied to the payment of the costs of issuing the bonds.
251.16 	(b) The bonds may be paid from or secured by any funds available to the city of St. 
251.17 	Joseph, including the tax authorized under subdivision 1. The issuance of bonds under this 
251.18 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
251.19 	(c) The bonds are not included in computing any debt limitation applicable to the city 
251.20 	of St. Joseph, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
251.21 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
251.22 	the bonds under Minnesota Statutes, section 475.58, is not required.
251.23 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
251.24 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 17 years 
251.25 	after the tax is first imposed, or (2) when the city council determines that the amount received 
251.26 	from the tax is sufficient to pay for the project costs authorized under subdivision 2 for 
251.27 	projects approved by voters as required under Minnesota Statutes, section 297A.99, 
251.28 	subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance 
251.29 	of any bonds authorized under subdivision 3, including interest on the bonds. Except as 
251.30 	otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), 
251.31 	any funds remaining after payment of the allowed costs due to the timing of the termination 
251.32 	of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the 
252.1 	general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time 
252.2 	if the city so determines by ordinance.

252.3 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
252.4 	city of St. Joseph and its chief clerical officer comply with Minnesota Statutes, section 
252.5 	645.021, subdivisions 2 and 3.

252.6 	Sec. 49. STEARNS COUNTY; TAXES AUTHORIZED.
 252.7 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
252.8 	section 297A.99, subdivision 1, or 477A.016, or any other law or ordinance, and if approved 
252.9 	by the voters at an election as required under Minnesota Statutes, section 297A.99, 
252.10 	subdivision 3, Stearns County may impose by ordinance a sales and use tax of three-eighths 
252.11 	of one percent for the purpose specified in subdivision 2. Except as otherwise provided in 
252.12 	this section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
252.13 	administration, collection, and enforcement of the tax authorized under this subdivision. 
252.14 	The tax imposed under this subdivision is in addition to any local sales and use tax imposed 
252.15 	under any other special law.
252.16 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
252.17 	under subdivision 1 must be used by Stearns County to pay the costs of collecting and 
252.18 	administering the tax, and to finance up to $325,000,000 for the construction of a new 
252.19 	Stearns County Justice Center consisting of a law enforcement center, judicial center, and 
252.20 	jail. Authorized costs include the associated bond costs for any bonds issued under 
252.21 	subdivision 3.
252.22 		Subd. 3.Bonding authority. (a) Stearns County may issue bonds under Minnesota 
252.23 	Statutes, chapter 475, to finance the costs of the facility authorized in subdivision 2. The 
252.24 	aggregate principal amount of bonds issued under this subdivision may not exceed 
252.25 	$325,000,000 for the project listed in subdivision 2, plus an amount to be applied to the 
252.26 	payment of the costs of issuing the bonds.
252.27 	(b) The bonds may be paid from or secured by any funds available to the county, including 
252.28 	the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not 
252.29 	subject to Minnesota Statutes, sections 275.60 and 275.61.
252.30 	(c) The bonds are not included in computing any debt limitation applicable to the county, 
252.31 	and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest 
252.32 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
252.33 	under Minnesota Statutes, section 475.58, is not required.
253.1 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
253.2 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 30 years 
253.3 	after the tax is first imposed; or (2) when the county board determines that the amount 
253.4 	received from the tax is sufficient to pay $325,000,000 in project costs authorized under 
253.5 	subdivision 2, plus an amount sufficient to pay the costs related to issuance of any bonds 
253.6 	authorized under subdivision 3, including interest on the bonds. Except as otherwise provided 
253.7 	in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining 
253.8 	after payment of the allowed costs due to the timing of the termination of the tax under 
253.9 	Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of 
253.10 	the county. The tax imposed under subdivision 1 may expire at an earlier time if the county 
253.11 	so determines by ordinance.

253.12 	EFFECTIVE DATE. This section is effective the day after the governing body of 
253.13 	Stearns County and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
253.14 	subdivisions 2 and 3.

253.15 	Sec. 50. CITY OF STILLWATER; TAXES AUTHORIZED.
 253.16 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
253.17 	section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters 
253.18 	at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the 
253.19 	city of Stillwater may impose by ordinance a sales and use tax of one-half of one percent 
253.20 	for the purpose specified in subdivision 2. Except as otherwise provided in this section, the 
253.21 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
253.22 	collection, and enforcement of the tax authorized under this subdivision. The tax imposed 
253.23 	under this subdivision is in addition to any local sales and use tax imposed under any other 
253.24 	special law.
253.25 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
253.26 	under subdivision 1 must be used by the city of Stillwater to pay the costs of collecting and 
253.27 	administering the tax, and to finance up to $12,500,000 for the construction, renovation, 
253.28 	and improvements to the Riverfront Improvement Project.
253.29 		Subd. 3.Bonding authority. (a) The city of Stillwater may issue bonds under Minnesota 
253.30 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
253.31 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
253.32 	not exceed $12,500,000.
254.1 	(b) The bonds may be paid from or secured by any funds available to the city of Stillwater, 
254.2 	including the tax authorized under subdivision 1. The issuance of bonds under this 
254.3 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
254.4 	(c) The bonds are not included in computing any debt limitation applicable to the city 
254.5 	of Stillwater, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
254.6 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
254.7 	the bonds under Minnesota Statutes, section 475.58, is not required.
254.8 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
254.9 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years 
254.10 	after the tax is first imposed, or (2) when the city council determines that the amount received 
254.11 	from the tax is sufficient to pay for the project costs authorized under subdivision 2, plus 
254.12 	an amount sufficient to pay the costs related to issuance of any bonds authorized under 
254.13 	subdivision 3, including interest on the bonds. Except as otherwise provided in Minnesota 
254.14 	Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining after payment 
254.15 	of the allowed costs due to the timing of the termination of the tax under Minnesota Statutes, 
254.16 	section 297A.99, subdivision 12, must be placed in the general fund of the city. The tax 
254.17 	imposed under subdivision 1 may expire at an earlier time if the city so determines by 
254.18 	ordinance.

254.19 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
254.20 	city of Stillwater and its chief clerical officer comply with Minnesota Statutes, section 
254.21 	645.021, subdivisions 2 and 3.

254.22 	Sec. 51. WINONA COUNTY; TAXES AUTHORIZED.
 254.23 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
254.24 	sections 297A.99, subdivision 1, and 477A.016, or any other law, ordinance, or city charter, 
254.25 	and if approved by the voters at an election as required under Minnesota Statutes, section 
254.26 	297A.99, subdivision 3, Winona County may impose, by ordinance, a sales and use tax of 
254.27 	one-quarter of one percent for the purposes specified in subdivision 2. Except as otherwise 
254.28 	provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the 
254.29 	imposition, administration, collection, and enforcement of the tax authorized under this 
254.30 	subdivision. The tax imposed under this subdivision is in addition to any local sales and 
254.31 	use tax imposed under any other special law.
254.32 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
254.33 	under subdivision 1 must be used by Winona County to pay the costs of collecting and 
254.34 	administering the tax, and to finance up to $28,000,000 for construction of a new correctional 
255.1 	facility or upgrades to an existing correctional facility, as well as the associated bond costs 
255.2 	for any bonds issued under subdivision 3.
255.3 		Subd. 3.Bonding authority. (a) Winona County may issue bonds under Minnesota 
255.4 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
255.5 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
255.6 	not exceed $28,000,000, plus an amount applied to the payment of costs of issuing the 
255.7 	bonds.
255.8 	(b) The bonds may be paid from or secured by any funds available to the county, including 
255.9 	the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not 
255.10 	subject to Minnesota Statutes, sections 275.60 and 275.61.
255.11 	(c) The bonds are not included in computing any debt limitation applicable to the county. 
255.12 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
255.13 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
255.14 	under Minnesota Statutes, section 475.58, is not required.
255.15 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
255.16 	earlier of: (1) 25 years after the tax is first imposed; or (2) when the county determines that 
255.17 	it has received from this tax $28,000,000 to fund the project listed in subdivision 2, plus an 
255.18 	amount sufficient to pay costs related to issuance of any bonds authorized under subdivision 
255.19 	3, including interest on the bonds. Except as otherwise provided in Minnesota Statutes, 
255.20 	section 297A.99, subdivision 3, paragraph (f), any funds remaining after payment of the 
255.21 	allowed costs due to timing of the termination of the tax under Minnesota Statutes, section 
255.22 	297A.99, subdivision 12, shall be placed in the county's general fund. The tax imposed 
255.23 	under subdivision 1 may expire at an earlier time if the county determines by ordinance.

255.24 	EFFECTIVE DATE. This section is effective the day after the governing body of 
255.25 	Winona County and its chief clerical officer comply with Minnesota Statutes, section 
255.26 	645.021, subdivisions 2 and 3.

255.27 	Sec. 52. CITY OF WOODBURY; TAXES AUTHORIZED.
 255.28 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
255.29 	section 297A.99, subdivision 3, paragraph (d), or 477A.016, or any other law, ordinance, 
255.30 	or city charter, and if approved by the voters at an election as required under Minnesota 
255.31 	Statutes, section 297A.99, subdivision 3, the city of Woodbury may impose by ordinance 
255.32 	a sales and use tax of one-half of one percent for the purpose specified in subdivision 2. 
255.33 	Except as otherwise provided in this section, the provisions of Minnesota Statutes, section 
256.1 	297A.99, govern the imposition, administration, collection, and enforcement of the tax 
256.2 	authorized under this subdivision. The tax imposed under this subdivision is in addition to 
256.3 	any local sales and use tax imposed under any other special law.
256.4 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
256.5 	under subdivision 1 must be used by the city of Woodbury to pay the costs of collecting 
256.6 	and administering the tax and to finance up to $50,000,000, plus associated bonding costs, 
256.7 	for the construction of a new public safety campus.
256.8 		Subd. 3.Bonding authority. (a) The city of Woodbury may issue bonds under Minnesota 
256.9 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
256.10 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
256.11 	not exceed $50,000,000, plus an amount to be applied to the payment of the costs of issuing 
256.12 	the bonds.
256.13 	(b) The bonds may be paid from or secured by any funds available to the city of 
256.14 	Woodbury, including the tax authorized under subdivision 1. The issuance of bonds under 
256.15 	this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
256.16 	(c) The bonds are not included in computing any debt limitation applicable to the city 
256.17 	of Woodbury, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
256.18 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
256.19 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
256.20 		Subd. 4.Termination of taxes. Subject to Minnesota Statutes, section 297A.99, 
256.21 	subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years 
256.22 	after the tax is first imposed, or (2) when the city council determines that the amount received 
256.23 	from the tax is sufficient to pay $50,000,000 in project costs authorized under subdivision 
256.24 	2, plus an amount sufficient to pay the costs related to issuance of any bonds authorized 
256.25 	under subdivision 3, including interest on the bonds. Except as otherwise provided in 
256.26 	Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining 
256.27 	after payment of the allowed costs due to the timing of the termination of the tax under 
256.28 	Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the general fund of 
256.29 	the city. The tax imposed under subdivision 1 may expire at an earlier time if the city so 
256.30 	determines by ordinance.

256.31 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
256.32 	city of Woodbury and its chief clerical officer comply with Minnesota Statutes, section 
256.33 	645.021, subdivisions 2 and 3.

257.1 	ARTICLE 10
257.2 	LOCAL SPECIAL TAXES

257.3 	Section 1. Laws 2008, chapter 366, article 7, section 17, is amended to read:
257.4 	Sec. 17. COOK COUNTY; LODGING AND ADMISSIONS TAXES TAX.
 257.5 		Subdivision 1.Lodging tax. Notwithstanding Minnesota Statutes, section 477A.016, 
257.6 	or any other provision of law, ordinance, or city charter, the Board of Commissioners of 
257.7 	Cook County may impose, by ordinance, a tax of up to one percent on the gross receipts 
257.8 	subject to the lodging tax under Minnesota Statutes, section 469.190. This tax is in addition 
257.9 	to any tax imposed under Minnesota Statutes, section 469.190, and the total tax imposed 
257.10 	under that section and this provision must not exceed four percent.
257.11 		Subd. 2.Admissions and recreation tax. Notwithstanding Minnesota Statutes, section 
257.12 	477A.016, or any other provision of law, ordinance, or city charter, the Board of 
257.13 	Commissioners of Cook County may impose, by ordinance, a tax of up to three percent on 
257.14 	admissions to entertainment and recreational facilities and rental of recreation equipment.
257.15 		Subd. 3.Use of taxes. The taxes tax imposed in subdivisions subdivision 1 and 2 must 
257.16 	be used to fund a new Cook County Event and Visitors Bureau as established by the Board 
257.17 	of Commissioners of Cook County. The Board of Commissioners of Cook County must 
257.18 	annually review the budget of the Cook County Event and Visitors Bureau. The event and 
257.19 	visitors bureau may not receive revenues raised from the taxes tax imposed in subdivisions
257.20 	subdivision 1 and 2 until the board of commissioners approves the annual budget.
257.21 		Subd. 4.Termination. The taxes tax imposed in subdivisions subdivision 1 and 2
257.22 	terminate 15 terminates 30 years after they are it is first imposed.

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

257.24 	Sec. 2. LAKE OF THE WOODS COUNTY LODGING TAX AUTHORIZED.
 257.25 	(a) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of 
257.26 	law, ordinance, or city charter, and subject to the limitation in paragraph (b), the Board of 
257.27 	Commissioners of Lake of the Woods County may impose, by ordinance, a tax of up to 
257.28 	three percent on gross receipts in Lake of the Woods County subject to the lodging tax 
257.29 	provisions under Minnesota Statutes, section 469.190.
257.30 	(b) The provisions of paragraph (a) do not apply to any statutory or home rule city or 
257.31 	town located in Lake of the Woods County that imposes a lodging tax under Minnesota 
258.1 	Statutes, section 469.190, or the city of Baudette. The total tax imposed under Minnesota 
258.2 	Statutes, section 469.190, and this section must not exceed three percent.
258.3 	(c) To the extent not inconsistent with Minnesota Statutes, section 469.190, this section 
258.4 	is governed by Minnesota Statutes, section 469.190.
258.5 	(d) Revenues derived from taxes imposed under this section must be used to fund a new 
258.6 	Lake of the Woods County Event and Visitors Bureau, as established by the Board of 
258.7 	Commissioners of Lake of the Woods County, for purposes of marketing Lake of the Woods 
258.8 	County. The Board of Commissioners must annually review the budget of the Event and 
258.9 	Visitors Bureau. The Event and Visitors Bureau may receive revenues raised from the taxes 
258.10 	imposed under this section only upon annual approval by the Board of Commissioners of 
258.11 	the Event and Visitors Bureau budget.

258.12 	EFFECTIVE DATE. This section is effective the day after the governing body of Lake 
258.13 	of the Woods County and its chief clerical officer comply with Minnesota Statutes, section 
258.14 	645.021, subdivisions 2 and 3.

258.15 	Sec. 3. CITY OF WAYZATA FOOD AND BEVERAGE TAX.
 258.16 		Subdivision 1.Food and beverage tax authorized. Notwithstanding Minnesota Statutes, 
258.17 	section 477A.016, or any ordinance, city charter, or other provision of law, the city of 
258.18 	Wayzata may, by ordinance, impose a sales tax of up to one percent on the gross receipts 
258.19 	on all sales of food and beverages by a restaurant or place of refreshment, as defined by 
258.20 	resolution of the city, that are located within the city, which has become a regional 
258.21 	destination. For purposes of this section, "food and beverages" includes retail on-sale of 
258.22 	intoxicating liquor and fermented malt beverages.
258.23 		Subd. 2.Use of proceeds from tax. (a) The proceeds of any tax imposed under 
258.24 	subdivision 1 shall be used by the city to pay all or a portion of the expenses of:
258.25 	(1) operation, maintenance, and capital expenses for city parks;
258.26 	(2) operation costs related to providing public safety for a regional destination; and
258.27 	(3) costs related to downtown business attraction and retention.
258.28 	(b) Authorized capital expenses include securing or paying debt service on bonds or 
258.29 	other obligations issued to finance the construction of park capital improvements.
258.30 		Subd. 3.Collection, administration, and enforcement. If the city desires, it may enter 
258.31 	into an agreement with the commissioner of revenue to administer, collect, and enforce the 
258.32 	taxes authorized under subdivisions 1 and 2. If the commissioner agrees to collect the tax, 
259.1 	the provisions of Minnesota Statutes, section 297A.99, related to collection, administration, 
259.2 	and enforcement apply.

259.3 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
259.4 	city of Wayzata and its chief clerical officer comply with Minnesota Statutes, section 
259.5 	645.021, subdivisions 2 and 3.

259.6 	ARTICLE 11
259.7 	PUBLIC FINANCE

259.8 	Section 1. Minnesota Statutes 2022, section 123B.61, is amended to read:
259.9 	123B.61 PURCHASE OF CERTAIN EQUIPMENT.
259.10 	The board of a district may issue general obligation certificates of indebtedness or capital 
259.11 	notes subject to the district debt limits to: (a) purchase vehicles, computers, telephone 
259.12 	systems, cable equipment, photocopy and office equipment, technological equipment for 
259.13 	instruction, and other capital equipment having an expected useful life at least as long as 
259.14 	the terms of the certificates or notes; (b) purchase computer hardware and software, without 
259.15 	regard to its expected useful life, whether bundled with machinery or equipment or 
259.16 	unbundled, together with application development services and training related to the use 
259.17 	of the computer; and (c) prepay special assessments. The certificates or notes must be 
259.18 	payable in not more than ten 20 years and must be issued on the terms and in the manner 
259.19 	determined by the board, except that certificates or notes issued to prepay special assessments 
259.20 	must be payable in not more than 20 years. The certificates or notes may be issued by 
259.21 	resolution and without the requirement for an election. The certificates or notes are general 
259.22 	obligation bonds for purposes of section 126C.55. A tax levy must be made for the payment 
259.23 	of the principal and interest on the certificates or notes, in accordance with section 475.61, 
259.24 	as in the case of bonds. The sum of the tax levies under this section and section 123B.62 
259.25 	for each year must not exceed the lesser of the amount of the district's total operating capital 
259.26 	revenue or the sum of the district's levy in the general and community service funds excluding 
259.27 	the adjustments under this section for the year preceding the year the initial debt service 
259.28 	levies are certified. The district's general fund levy for each year must be reduced by the 
259.29 	sum of (1) the amount of the tax levies for debt service certified for each year for payment 
259.30 	of the principal and interest on the certificates or notes issued under this section as required 
259.31 	by section 475.61, (2) the amount of the tax levies for debt service certified for each year 
259.32 	for payment of the principal and interest on bonds issued under section 123B.62, and (3) 
259.33 	any excess amount in the debt redemption fund used to retire bonds, certificates, or notes 
259.34 	issued under this section or section 123B.62 after April 1, 1997, other than amounts used 
260.1 	to pay capitalized interest. If the district's general fund levy is less than the amount of the 
260.2 	reduction, the balance shall be deducted first from the district's community service fund 
260.3 	levy, and next from the district's general fund or community service fund levies for the 
260.4 	following year. A district using an excess amount in the debt redemption fund to retire the 
260.5 	certificates or notes shall report the amount used for this purpose to the commissioner by 
260.6 	July 15 of the following fiscal year. A district having an outstanding capital loan under 
260.7 	section 126C.69 must not use an excess amount in the debt redemption fund to retire the 
260.8 	certificates or notes.

260.9 	Sec. 2. Minnesota Statutes 2022, section 366.095, subdivision 1, is amended to read:
260.10 		Subdivision 1.Certificates of indebtedness. The town board may issue certificates of 
260.11 	indebtedness within the debt limits for a town purpose otherwise authorized by law, including 
260.12 	projects that eliminate R-22, as defined in section 240A.09, paragraph (b), clause (2). The 
260.13 	certificates shall be payable in not more than ten 20 years and be issued on the terms and 
260.14 	in the manner as determined by the board may determine, provided that notes issued for 
260.15 	projects that eliminate R-22, as defined in section 240A.09, paragraph (b), clause (2), must 
260.16 	be payable in not more than 20 years. If the amount of the certificates to be issued exceeds 
260.17 	0.25 percent of the estimated market value of the town, they shall not be issued for at least 
260.18 	ten days after publication in a newspaper of general circulation in the town of the board's 
260.19 	resolution determining to issue them. If within that time, a petition asking for an election 
260.20 	on the proposition signed by voters equal to ten percent of the number of voters at the last 
260.21 	regular town election is filed with the clerk, the certificates shall not be issued until their 
260.22 	issuance has been approved by a majority of the votes cast on the question at a regular or 
260.23 	special election. A tax levy shall be made to pay the principal and interest on the certificates 
260.24 	as in the case of bonds.

260.25 	Sec. 3. Minnesota Statutes 2022, section 373.01, subdivision 3, is amended to read:
260.26 		Subd. 3.Capital notes. (a) A county board may, by resolution and without referendum, 
260.27 	issue capital notes subject to the county debt limit to purchase capital equipment useful for 
260.28 	county purposes that has an expected useful life at least equal to the term of the notes. The 
260.29 	notes shall be payable in not more than ten 20 years and shall be issued on the terms and in 
260.30 	a the manner determined by the board determines. A tax levy shall be made for payment of 
260.31 	the principal and interest on the notes, in accordance with section 475.61, as in the case of 
260.32 	bonds.
260.33 	(b) For purposes of this subdivision, "capital equipment" means:
261.1 	(1) public safety, ambulance, road construction or maintenance, and medical equipment; 
261.2 	and
261.3 	(2) computer hardware and software, whether bundled with machinery or equipment or 
261.4 	unbundled, together with application development services and training related to the use 
261.5 	of the computer hardware or software; and
261.6 	(3) projects that eliminate R-22, as defined in section 240A.09, paragraph (b), clause 
261.7 	(2).

261.8 	Sec. 4. Minnesota Statutes 2022, section 383B.117, subdivision 2, is amended to read:
261.9 		Subd. 2.Equipment acquisition; capital notes. The board may, by resolution and 
261.10 	without public referendum, issue capital notes within existing debt limits for the purpose 
261.11 	of purchasing ambulance and other medical equipment, road construction or maintenance 
261.12 	equipment, public safety equipment, including projects that eliminate R-22, as defined in 
261.13 	section 240A.09, paragraph (b), clause (2), and other capital equipment having an expected 
261.14 	useful life at least equal to the term of the notes issued. The notes shall be payable in not 
261.15 	more than ten 20 years and shall be issued on the terms and in a the manner as determined 
261.16 	by the board determines, provided that notes issued for projects that eliminate R-22, as 
261.17 	defined in section 240A.09, paragraph (b), clause (2), must be payable in not more than 20 
261.18 	years. The total principal amount of the notes issued for any fiscal year shall not exceed 
261.19 	one percent of the total annual budget for that year and shall be issued solely for the purchases 
261.20 	authorized in this subdivision. A tax levy shall be made for the payment of the principal 
261.21 	and interest on such notes as in the case of bonds. For purposes of this subdivision, 
261.22 	"equipment" includes computer hardware and software, whether bundled with machinery 
261.23 	or equipment or unbundled. For purposes of this subdivision, the term "medical equipment" 
261.24 	includes computer hardware and software and other intellectual property for use in medical 
261.25 	diagnosis, medical procedures, research, record keeping, billing, and other hospital 
261.26 	applications, together with application development services and training related to the use 
261.27 	of the computer hardware and software and other intellectual property, all without regard 
261.28 	to their useful life. For purposes of determining the amount of capital notes which the county 
261.29 	may issue in any year, the budget of the county and Hennepin Healthcare System, Inc. shall 
261.30 	be combined and the notes issuable under this subdivision shall be in addition to obligations 
261.31 	issuable under section 373.01, subdivision 3.

262.1 	Sec. 5. Minnesota Statutes 2022, section 410.32, is amended to read:
262.2 	410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
262.3 	(a) Notwithstanding any contrary provision of other law or charter, a home rule charter 
262.4 	city may, by resolution and without public referendum, issue capital notes subject to the 
262.5 	city debt limit to purchase capital equipment.
262.6 	(b) For purposes of this section, "capital equipment" means:
262.7 	(1) public safety equipment, ambulance and other medical equipment, road construction 
262.8 	and maintenance equipment, and other capital equipment; and
262.9 	(2) computer hardware and software, whether bundled with machinery or equipment or 
262.10 	unbundled, together with application development services and training related to the use 
262.11 	of the computer hardware and software; and
262.12 	(3) projects that eliminate R-22, as defined in section 240A.09, paragraph (b), clause 
262.13 	(2).
262.14 	(c) The equipment or software must have an expected useful life at least as long as the 
262.15 	term of the notes.
262.16 	(d) The notes shall be payable in not more than ten 20 years and be issued on the terms 
262.17 	and in the manner determined by the city determines, provided that notes issued for projects 
262.18 	that eliminate R-22, as defined in section 240A.09, paragraph (b), clause (2), must be payable 
262.19 	in not more than 20 years. The total principal amount of the capital notes issued in a fiscal 
262.20 	year shall not exceed 0.03 percent of the estimated market value of taxable property in the 
262.21 	city for that year.
262.22 	(e) A tax levy shall be made for the payment of the principal and interest on the notes, 
262.23 	in accordance with section 475.61, as in the case of bonds.
262.24 	(f) Notes issued under this section shall require an affirmative vote of two-thirds of the 
262.25 	governing body of the city.
262.26 	(g) Notwithstanding a contrary provision of other law or charter, a home rule charter 
262.27 	city may also issue capital notes subject to its debt limit in the manner and subject to the 
262.28 	limitations applicable to statutory cities pursuant to section 412.301.

263.1 	Sec. 6. Minnesota Statutes 2022, section 412.301, is amended to read:
263.2 	412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
263.3 	(a) The council may issue certificates of indebtedness or capital notes subject to the city 
263.4 	debt limits to purchase capital equipment.
263.5 	(b) For purposes of this section, "capital equipment" means:
263.6 	(1) public safety equipment, ambulance and other medical equipment, road construction 
263.7 	and maintenance equipment, and other capital equipment; and
263.8 	(2) computer hardware and software, whether bundled with machinery or equipment or 
263.9 	unbundled, together with application development services and training related to the use 
263.10 	of the computer hardware or software; and
263.11 	(3) projects that eliminate R-22, as defined in section 240A.09, paragraph (b), clause 
263.12 	(2).
263.13 	(c) The equipment or software must have an expected useful life at least as long as the 
263.14 	terms of the certificates or notes.
263.15 	(d) Such certificates or notes shall be payable in not more than ten 20 years and shall 
263.16 	be issued on such the terms and in such the manner as determined by the council may 
263.17 	determine, provided, however, that notes issued for projects that eliminate R-22, as defined 
263.18 	in section 240A.09, paragraph (b), clause (2), must be payable in not more than 20 years.
263.19 	(e) If the amount of the certificates or notes to be issued to finance any such purchase 
263.20 	exceeds 0.25 percent of the estimated market value of taxable property in the city, they shall 
263.21 	not be issued for at least ten days after publication in the official newspaper of a council 
263.22 	resolution determining to issue them; and if before the end of that time, a petition asking 
263.23 	for an election on the proposition signed by voters equal to ten percent of the number of 
263.24 	voters at the last regular municipal election is filed with the clerk, such certificates or notes 
263.25 	shall not be issued until the proposition of their issuance has been approved by a majority 
263.26 	of the votes cast on the question at a regular or special election.
263.27 	(f) A tax levy shall be made for the payment of the principal and interest on such 
263.28 	certificates or notes, in accordance with section 475.61, as in the case of bonds.

263.29 	Sec. 7. Minnesota Statutes 2022, section 469.033, subdivision 6, is amended to read:
263.30 		Subd. 6.Operation area as taxing district, special tax. All of the territory included 
263.31 	within the area of operation of any authority shall constitute a taxing district for the purpose 
263.32 	of levying and collecting special benefit taxes as provided in this subdivision. All of the 
264.1 	taxable property, both real and personal, within that taxing district shall be deemed to be 
264.2 	benefited by projects to the extent of the special taxes levied under this subdivision. Subject 
264.3 	to the consent by resolution of the governing body of the city in and for which it was created, 
264.4 	an authority may levy a tax upon all taxable property within that taxing district. The tax 
264.5 	shall be extended, spread, and included with and as a part of the general taxes for state, 
264.6 	county, and municipal purposes by the county auditor, to be collected and enforced therewith, 
264.7 	together with the penalty, interest, and costs. As the tax, including any penalties, interest, 
264.8 	and costs, is collected by the county treasurer it shall be accumulated and kept in a separate 
264.9 	fund to be known as the "housing and redevelopment project fund." The money in the fund 
264.10 	shall be turned over to the authority at the same time and in the same manner that the tax 
264.11 	collections for the city are turned over to the city, and shall be expended only for the purposes 
264.12 	of sections 469.001 to 469.047. It shall be paid out upon vouchers signed by the chair of 
264.13 	the authority or an authorized representative. The amount of the levy shall be an amount 
264.14 	approved by the governing body of the city, but shall not exceed 0.0185 percent of estimated 
264.15 	market value. The authority shall each year formulate and file a budget in accordance with 
264.16 	the budget procedure of the city in the same manner as required of executive departments 
264.17 	of the city or, if no budgets are required to be filed, by August 1. The amount of the tax 
264.18 	levy for the following year shall be based on that budget. The requirements of section 
264.19 	275.067 apply to a housing and redevelopment authority that has not previously certified a 
264.20 	levy.

264.21 	Sec. 8. Minnesota Statutes 2022, section 469.053, subdivision 4, is amended to read:
264.22 		Subd. 4.Mandatory city levy. A city shall, at the request of the port authority, levy a 
264.23 	tax in any year for the benefit of the port authority. The tax must not exceed 0.01813 percent 
264.24 	of estimated market value. The amount levied must be paid by the city treasurer to the 
264.25 	treasurer of the port authority, to be spent by the authority. The requirements of section 
264.26 	275.067 apply to a port authority that has not previously certified a levy.

264.27 	Sec. 9. Minnesota Statutes 2022, section 469.053, subdivision 6, is amended to read:
264.28 		Subd. 6.Discretionary city levy. Upon request of a port authority, the port authority's 
264.29 	city may levy a tax to be spent by and for its port authority. The tax must enable the port 
264.30 	authority to carry out efficiently and in the public interest sections 469.048 to 469.068 to 
264.31 	create and develop industrial development districts. The levy must not be more than 0.00282 
264.32 	percent of estimated market value. The county treasurer shall pay the proceeds of the tax 
264.33 	to the port authority treasurer. The money may be spent by the authority in performance of 
264.34 	its duties to create and develop industrial development districts. In spending the money the 
265.1 	authority must judge what best serves the public interest. The levy in this subdivision is in 
265.2 	addition to the levy in subdivision 4. The requirements of section 275.067 apply to a port 
265.3 	authority that has not previously certified a levy.

265.4 	Sec. 10. Minnesota Statutes 2022, section 469.107, subdivision 1, is amended to read:
265.5 		Subdivision 1.City tax levy. A city may, at the request of the authority, levy a tax in 
265.6 	any year for the benefit of the authority. The tax must be not more than 0.01813 percent of 
265.7 	estimated market value. The amount levied must be paid by the city treasurer to the treasurer 
265.8 	of the authority, to be spent by the authority. The requirements of section 275.067 apply to 
265.9 	an economic development authority that has not previously certified a levy.

265.10 	Sec. 11. Minnesota Statutes 2022, section 473.39, is amended by adding a subdivision to 
265.11 	read:
265.12 		Subd. 1x.Obligations. In addition to other authority in this section, the council may 
265.13 	issue certificates of indebtedness, bonds, or other obligations under this section in an amount 
265.14 	not exceeding $104,545,000 for capital expenditures as prescribed in the council's transit 
265.15 	capital improvement program and for related costs, including the costs of issuance and sale 
265.16 	of the obligations. Of this authorization, after July 1, 2023, the council may issue certificates 
265.17 	of indebtedness, bonds, or other obligations in an amount not exceeding $51,500,000, and 
265.18 	after July 1, 2024, the council may issue certificates of indebtedness, bonds, or other 
265.19 	obligations in an additional amount not exceeding $53,045,000.

265.20 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
265.21 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
265.22 	Scott, and Washington.

265.23 	Sec. 12. Minnesota Statutes 2022, section 474A.02, subdivision 22b, is amended to read:
265.24 		Subd. 22b.Public facilities project. "Public facilities project" means any publicly owned 
265.25 	facility, or a facility that is used for district heating or cooling, whether publicly or privately 
265.26 	owned, that is eligible to be financed with the proceeds of public facilities bonds as defined 
265.27 	under section 474A.02, subdivision 23a.

265.28 	Sec. 13. Minnesota Statutes 2022, section 474A.02, subdivision 23a, is amended to read:
265.29 		Subd. 23a.Qualified bonds. "Qualified bonds" means the specific type or types of 
265.30 	obligations that are subject to the annual volume cap. Qualified bonds include the following 
265.31 	types of obligations as defined in federal tax law:
266.1 	(a) "public facility bonds" means "exempt facility bonds" as defined in federal tax law, 
266.2 	except for residential rental project bonds, which are those obligations issued to finance 
266.3 	airports, docks and wharves, mass commuting facilities, facilities for the furnishing of water, 
266.4 	sewage facilities, solid waste disposal facilities, facilities for the local furnishing of electric 
266.5 	energy or gas, local district heating or cooling facilities, and qualified hazardous waste 
266.6 	facilities. New bonds and other obligations are ineligible to receive state allocations or 
266.7 	entitlement authority for public facility projects under this section if they have been issued:
266.8 	(1) for the purpose of refinancing, refunding, or otherwise defeasing existing debt; and
266.9 	(2) more than one calendar year prior to the date of application;
266.10 	(b) "residential rental project bonds" which are those obligations issued to finance 
266.11 	qualified residential rental projects;
266.12 	(c) "mortgage bonds";
266.13 	(d) "small issue bonds" issued to finance manufacturing projects and the acquisition or 
266.14 	improvement of agricultural real or personal property under sections 41C.01 to 41C.13;
266.15 	(e) "student loan bonds" issued by or on behalf of the Minnesota Office of Higher 
266.16 	Education;
266.17 	(f) "redevelopment bonds";
266.18 	(g) "governmental bonds" with a nonqualified amount in excess of $15,000,000 as set 
266.19 	forth in section 141(b)5 of federal tax law; and
266.20 	(h) "enterprise zone facility bonds" issued to finance facilities located within 
266.21 	empowerment zones or enterprise communities, as authorized under Public Law 103-66, 
266.22 	section 13301.

266.23 	Sec. 14. Minnesota Statutes 2022, section 475.54, subdivision 1, is amended to read:
266.24 		Subdivision 1.In installments; exception; annual limit. Except as provided in 
266.25 	subdivision 3, 5a, 15, or 17, or as expressly authorized in another law, all obligations of 
266.26 	each issue shall mature or be subject to mandatory sinking fund redemption in installments, 
266.27 	the first not later than three years and the last not later than 30 years from the date of the 
266.28 	issue; or 40 years or the useful life of the asset, whichever is less, for municipal water and 
266.29 	wastewater treatment systems and essential community facilities financed or guaranteed by 
266.30 	the United States Department of Agriculture and municipal water and wastewater treatment 
266.31 	systems. No amount of principal of the issue payable in any calendar year shall exceed an 
267.1 	amount equal to the smallest amount payable in any preceding calendar year ending three 
267.2 	years or more after the issue date multiplied:
267.3 	(1) by five, in the case of obligations maturing not later than 25 years from the date of 
267.4 	issue; and
267.5 	(2) by six, in the case of obligations maturing 25 years or later from the date of issue.

267.6 	Sec. 15. Laws 1971, chapter 773, section 1, subdivision 2, as amended by Laws 1974, 
267.7 	chapter 351, section 5, Laws 1976, chapter 234, sections 1 and 7, Laws 1978, chapter 788, 
267.8 	section 1, Laws 1981, chapter 369, section 1, Laws 1983, chapter 302, section 1, Laws 1988, 
267.9 	chapter 513, section 1, Laws 1992, chapter 511, article 9, section 23, Laws 1998, chapter 
267.10 	389, article 3, section 27, Laws 2002, chapter 390, section 23, and Laws 2013, chapter 143, 
267.11 	article 12, section 18, is amended to read:
267.12 	Subd. 2. For each of the years 2013 to 2024 2023 to 2035, the city of St. Paul is authorized 
267.13 	to issue bonds in the aggregate principal amount of $20,000,000 $30,000,000 for each year.

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

267.17 	Sec. 16. CITY OF VIRGINIA; NET DEBT LIMIT EXEMPTION.
 267.18 	The city of Virginia may finance the construction of a public safety building in the city 
267.19 	of Virginia by obtaining a loan from the United States Department of Agriculture secured 
267.20 	by its general obligation pledge. Any bonds issued relating to this construction project or 
267.21 	repayment of the loan must not be included in the computation of the city's limit on net debt 
267.22 	under Minnesota Statutes, section 475.53, subdivision 1.

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

267.26 	ARTICLE 12
267.27 	STADIUM RESERVE

267.28 	Section 1. Minnesota Statutes 2022, section 16A.726, is amended to read:
267.29 	16A.726 SPORTS FACILITIES TRANSFERS; APPROPRIATIONS.
267.30 	(a) If state appropriation bonds have not been issued under section 16A.965, amounts 
267.31 	not to exceed the increased revenues estimated by the commissioner of management and 
268.1 	budget under section 297E.021, subdivision 2, are appropriated from the general fund to 
268.2 	the commissioner of management and budget to make transfers to the Minnesota Sports 
268.3 	Facilities Authority for stadium costs as defined under section 473J.03, subdivision 9.
268.4 	(b)(a) The commissioner shall make transfers to the Minnesota Sports Facilities Authority 
268.5 	required to make the state payments under section 473J.13, subdivisions 2 and 4, and for 
268.6 	the amount of Minneapolis taxes withheld under section 297A.994, subdivision 4, paragraph 
268.7 	(a), clause (5) (4). Amounts sufficient to make the transfers are appropriated to the 
268.8 	commissioner from the general fund.
268.9 	(c) (b) $2,700,000 is annually appropriated from the general fund from fiscal year 2014 
268.10 	through fiscal year 2033 to the commissioner of management and budget for a grant to the 
268.11 	city of St. Paul for the operating or capital costs of new or existing sports facilities.

268.12 	EFFECTIVE DATE. This section is effective July 1, 2023.

268.13 	Sec. 2. Minnesota Statutes 2022, section 297A.994, subdivision 4, is amended to read:
268.14 		Subd. 4.General fund allocations. (a) The commissioner must retain and deposit to 
268.15 	the general fund the following amounts, as required by subdivision 3, clause (3):
268.16 	(1) for state bond debt service support beginning in calendar year 2021, and for each 
268.17 	calendar year thereafter through calendar year 2046, periodic amounts so that not later than 
268.18 	December 31, 2046, an aggregate amount equal to a present value of $150,000,000 has been 
268.19 	deposited in the general fund. To determine aggregate present value, the commissioner must 
268.20 	consult with the commissioner of management and budget regarding the present value dates, 
268.21 	discount rate or rates, and schedules of annual amounts. The present value date or dates 
268.22 	must be based on the date or dates bonds are sold under section 16A.965, or the date or 
268.23 	dates other state funds, if any, are deposited into the construction fund. The discount rate 
268.24 	or rates must be based on the true interest cost of the bonds issued under section 16A.965, 
268.25 	or an equivalent 30-year bond index, as determined by the commissioner of management 
268.26 	and budget. The schedule of annual amounts must be certified to the commissioner by the 
268.27 	commissioner of management and budget and the finance officer of the city;
268.28 	(2) for the capital improvement reserve appropriation to the Minnesota Sports Facilities 
268.29 	Authority beginning in calendar year 2021, and for each calendar year thereafter through 
268.30 	calendar year 2046, an aggregate annual amount equal to the amount paid by the state for 
268.31 	this purpose in that calendar year under section 473J.13, subdivision 4;
268.32 	(3) for the operating expense appropriation to the Minnesota Sports Facilities Authority 
268.33 	beginning in calendar year 2021, and for each calendar year thereafter through calendar 
269.1 	year 2046, an aggregate annual amount equal to the amount paid by the state for this purpose 
269.2 	in that calendar year under section 473J.13, subdivision 2; and
269.3 	(4) for recapture of state advances for capital improvements and operating expenses for 
269.4 	calendar years 2016 through 2020 beginning in calendar year 2021, and for each calendar 
269.5 	year thereafter until all amounts under this clause have been paid, proportionate amounts 
269.6 	periodically until an aggregate amount equal to the present value of all amounts paid by the 
269.7 	state have been deposited in the general fund. To determine the present value of the amounts 
269.8 	paid by the state to the authority and the present value of amounts deposited to the general 
269.9 	fund under this clause, the commissioner shall consult with the commissioner of management 
269.10 	and budget regarding the present value dates, discount rate or rates, and schedule of annual 
269.11 	amounts. The present value dates must be based on the dates state funds are paid to the 
269.12 	authority, or the dates the commissioner of revenue deposits taxes for purposes of this clause 
269.13 	to the general fund. The discount rates must be based on the reasonably equivalent cost of 
269.14 	state funds as determined by the commissioner of management and budget. The schedule 
269.15 	of annual amounts must be revised to reflect amounts paid under section 473J.13, subdivision 
269.16 	2, paragraph (b), for 2016 to 2020, and subdivision 4, paragraph (c), for 2016 to 2020, and 
269.17 	taxes deposited to the general fund from time to time under this clause, and the schedule 
269.18 	and revised schedules must be certified to the commissioner by the commissioner of 
269.19 	management and budget and the finance officer of the city, and are transferred as accrued 
269.20 	from the general fund for repayment of advances made by the state to the authority; and
269.21 	(5) (4) to capture increases in taxes imposed under the special law, for the benefit of the 
269.22 	Minnesota Sports Facilities Authority, beginning in calendar year 2013 and for each calendar 
269.23 	year thereafter through 2046, there shall be deposited to the general fund in proportionate 
269.24 	periodic payments in the following year, an amount equal to the following:
269.25 	(i) 50 percent of the difference, if any, by which the amount of the net annual taxes for 
269.26 	the previous year exceeds the sum of the net actual taxes in calendar year 2011 plus 
269.27 	$1,000,000, inflated at two percent per year since 2011, minus
269.28 	(ii) 25 percent of the difference, if any, by which the amount of the net annual taxes for 
269.29 	the preceding year exceeds the sum of the net actual taxes in calendar year 2011 plus 
269.30 	$3,000,000, inflated at two percent per year since 2011.
269.31 	(b) The commissioner must remit the amounts under paragraph (a), clause (4), to the 
269.32 	Minnesota Sports Facility Authority. The Minnesota Sports Facility Authority must use the 
269.33 	amounts remitted under this paragraph for capital repairs, replacements, and improvements 
269.34 	for the stadium and stadium infrastructure.

270.1 	EFFECTIVE DATE. This section is effective July 1, 2023.

270.2 	Sec. 3. Minnesota Statutes 2022, section 473J.13, subdivision 2, is amended to read:
270.3 		Subd. 2.Operating expenses. (a) The authority must pay or cause to be paid all operating 
270.4 	expenses of the stadium. The authority must require in the lease or use agreement with the 
270.5 	NFL team that the NFL team pay the authority, beginning January 1, 2016, or other date as 
270.6 	mutually agreed upon by the parties, toward operating costs of the stadium, $8,500,000 
270.7 	each year, increased by a three percent annual inflation rate.
270.8 	(b) Beginning January 1, 2016, or other date as mutually agreed upon by the parties, 
270.9 	and continuing through 2020, the state shall pay the authority operating expenses, $6,000,000 
270.10 	each year, increased by an annual adjustment factor. The payment of $6,000,000 per year 
270.11 	beginning in 2016 is a payment by the state, which shall be repaid to the state, using funds 
270.12 	as provided under section 297A.994, subdivision 4, clause (4). After 2020, the state shall 
270.13 	assume this payment, using funds generated in accordance with the city of Minneapolis as 
270.14 	specified under section 297A.994, subdivision 4, clause (3).
270.15 	(c) The authority may establish an operating reserve to cover operating expense shortfalls 
270.16 	and may accept funds from any source for deposit in the operating reserve. The establishment 
270.17 	or funding of an authority operating reserve must not decrease the amounts required to be 
270.18 	paid to the authority toward operating costs under this subdivision unless agreed to by the 
270.19 	authority.
270.20 	(d) The authority will be responsible for operating cost overruns.
270.21 	(e) After the joint selection of the third-party manager or program manager, the authority 
270.22 	may agree with a program manager or other third-party manager of the stadium on a fixed 
270.23 	cost operating, management, or employment agreement with operating cost protections 
270.24 	under which the program manager or third-party manager assumes responsibility for stadium 
270.25 	operating costs and shortfalls. The agreement with the manager must require the manager 
270.26 	to prepare an initial and ongoing operating plan and operating budgets for approval by the 
270.27 	authority in consultation with the NFL team. The manager must agree to operate the stadium 
270.28 	in accordance with the approved operating plan and operating budget.

270.29 	EFFECTIVE DATE. This section is effective July 1, 2023.

270.30 	Sec. 4. Minnesota Statutes 2022, section 473J.13, subdivision 4, is amended to read:
270.31 		Subd. 4.Capital improvements. (a) The authority shall establish a capital reserve fund. 
270.32 	The authority shall be responsible for making, or for causing others to make, all capital 
271.1 	repairs, replacements, and improvements for the stadium and stadium infrastructure. The 
271.2 	authority shall maintain, or cause others to maintain, the stadium and stadium infrastructure 
271.3 	in a safe, clean, attractive, and first-class manner so as to cause them to remain in a condition 
271.4 	comparable to that of other comparable NFL facilities of similar design and age. The authority 
271.5 	shall make, or cause others to make, all necessary or appropriate repairs, renewals, and 
271.6 	replacements, whether structural or nonstructural, interior or exterior, ordinary or 
271.7 	extraordinary, foreseen or unforeseen, in a prompt and timely manner. In addition, the 
271.8 	authority, with approval of the NFL team, may enter into an agreement with a program 
271.9 	manager to perform some or all of the responsibilities of the authority in this subdivision 
271.10 	and to assume and accept financial liability for the cost of performing the responsibilities.
271.11 	(b) The NFL team must contribute $1,500,000 each year, beginning in 2016 or as 
271.12 	otherwise determined for the term of the lease or use agreement to the capital reserve fund, 
271.13 	increased by a three percent annual inflation rate.
271.14 	(c) The state shall contribute $1,500,000 each year, beginning in 2016 or as otherwise 
271.15 	determined for the term of the lease to the capital reserve fund. The contributions of the 
271.16 	state are subject to increase by an annual adjustment factor. The contribution under this 
271.17 	paragraph by the state from 2016 through 2020 shall be repaid to the state using funds in 
271.18 	accordance with section 297A.994, subdivision 4, clause (4).
271.19 	(d) The authority with input from the NFL team shall develop short-term and long-term 
271.20 	capital funding plans and shall use those plans to guide the future capital needs of the stadium 
271.21 	and stadium infrastructure. The authority shall make the final determination with respect 
271.22 	to funding capital needs. Any capital improvement proposed by the NFL team intended 
271.23 	primarily to provide revenue enhancements to the NFL team shall be paid for by the NFL 
271.24 	team, unless otherwise agreed to with the authority.
271.25 	(e) The NFL team has authority to determine the design of a retractable roof feature for 
271.26 	the stadium. The NFL team must cooperate with the authority in designing the feature to 
271.27 	minimize any additional operating cost. The design must not result in a material marginal 
271.28 	increase in the operating or capital costs of the stadium, considering current collections and 
271.29 	reserves.

271.30 	EFFECTIVE DATE. This section is effective July 1, 2023.

271.31 	Sec. 5. APPROPRIATION; SECURE PERIMETER.
 271.32 	$15,700,000 is appropriated in fiscal year 2023 from the general fund to the commissioner 
271.33 	of management and budget to provide for a secure perimeter around the professional football 
272.1 	stadium in Minneapolis. The commissioner must allocate these funds to the Minnesota 
272.2 	Sports Facilities Authority after notifying the chairs and ranking minority members of the 
272.3 	house of representatives Ways and Means Committee and the senate Finance Committee. 
272.4 	This is a onetime appropriation.

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

272.6 	Sec. 6. OPTIONAL DEBT PAYOFF; APPROPRIATION.
 272.7 	(a) If the commissioner of management and budget elects to apply an amount from the 
272.8 	general reserve account established in Minnesota Statutes, section 297E.021, subdivision 
272.9 	4, to prepay the debt issued under Minnesota Statutes, section 16A.965, during fiscal year 
272.10 	2023, then the commissioner may also use the appropriation in paragraph (b) for the same 
272.11 	purpose.
272.12 	(b) The amount necessary, when added to the amount in the general reserve account 
272.13 	established in Minnesota Statutes, section 297E.021, to prepay in fiscal year 2023 the entire 
272.14 	debt issued under Minnesota Statutes, section 16A.965, including any accrued interest and 
272.15 	associated financing costs, is appropriated from the general fund to the commissioner of 
272.16 	management and budget in fiscal year 2023.
272.17 	(c) This appropriation is only effective to the extent available and to the extent the amount 
272.18 	in the general reserve account established in Minnesota Statutes, section 297E.021, is not 
272.19 	sufficient to prepay the debt in full in fiscal year 2023, including any accrued interest and 
272.20 	associated financing costs.

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

272.22 	Sec. 7. REPEALER.
 272.23 	Minnesota Statutes 2022, sections 16A.965; and 297E.021, are repealed.

272.24 	EFFECTIVE DATE. This section is effective upon certification from the commissioner 
272.25 	of management and budget to the revisor of statutes that the bonds authorized under 
272.26 	Minnesota Statutes, section 16A.965, are no longer outstanding.

273.1 	ARTICLE 13
273.2 	MISCELLANEOUS

273.3 	Section 1. [204B.50] LOCAL ELECTION EXPENSE REIMBURSEMENT.
273.4 		Subdivision 1.Local election expense reimbursement account. A local election expense 
273.5 	reimbursement account is established in the special revenue fund. Funds in the account are 
273.6 	appropriated to the secretary of state to make reimbursements to counties and municipalities 
273.7 	as provided in this section. Funds in the account are available until spent.
273.8 		Subd. 2.Authorized purposes. The secretary of state must reimburse counties and 
273.9 	municipalities for expenses incurred in the administration of elections using available funds 
273.10 	in the local election expense reimbursement account. The following expenses are eligible 
273.11 	for reimbursement:
273.12 	(1) preparation and printing of ballots;
273.13 	(2) postage for absentee ballots;
273.14 	(3) publication of the sample ballot;
273.15 	(4) preparation of polling places in an amount not to exceed $150 per polling place;
273.16 	(5) preparation of electronic voting systems in an amount not to exceed $100 per precinct;
273.17 	(6) compensation for temporary staff or overtime payments;
273.18 	(7) salaries of election judges;
273.19 	(8) compensation of county canvassing board members; and
273.20 	(9) other expenses as approved by the secretary of state.
273.21 		Subd. 3.Request for payment. (a) By January 31 of each odd-numbered year, the 
273.22 	county auditor or municipal clerk must submit a request for payment of the costs incurred 
273.23 	by the county or municipality for conducting elections for the previous two years. The 
273.24 	request for payment must be submitted to the secretary of state and must be accompanied 
273.25 	by an itemized description of actual county or municipal expenditures, including copies of 
273.26 	invoices. In addition, the county auditor or municipal clerk must certify that the request for 
273.27 	reimbursement is based on actual costs incurred by the county or municipality in the election.
273.28 	(b) The secretary of state must provide each county and municipality with the appropriate 
273.29 	forms for requesting payment and certifying expenses under this subdivision. The secretary 
273.30 	of state must not reimburse expenses unless the request for payment and certification of 
273.31 	costs has been submitted as provided in this subdivision.
274.1 		Subd. 4.Amount of payment. The secretary of state must reimburse 80 percent of the 
274.2 	costs submitted by each county and municipality. If there are not sufficient funds to reimburse 
274.3 	applicants for 80 percent of the costs submitted, the secretary of state must reduce all 
274.4 	reimbursement proportionally. The secretary of state must complete the issuance of 
274.5 	reimbursements to the counties and municipalities no later than April 1 of each odd-numbered 
274.6 	year.
274.7 		Subd. 5.Report to legislature. By May 1 of each odd-numbered year, the secretary of 
274.8 	state must submit a report to the chairs and ranking minority members of the legislative 
274.9 	committees with jurisdiction over elections policy on reimbursements made pursuant to this 
274.10 	section. The report must include the amount each jurisdiction received.
274.11 		Subd. 6.Transfer to account. Beginning in fiscal year 2024 and annually thereafter, 
274.12 	$6,000,000 is transferred from the general fund to the local election expense reimbursement 
274.13 	account in the special revenue fund. The secretary of state may retain up to two percent of 
274.14 	the amount transferred under this subdivision in each year for administrative costs.

274.15 	EFFECTIVE DATE. This section is effective July 1, 2023.

274.16 	Sec. 2. Minnesota Statutes 2022, section 206.95, is amended to read:
274.17 	206.95 VOTING EQUIPMENT AND INFRASTRUCTURE GRANT ACCOUNT.
274.18 		Subdivision 1.Voting equipment and infrastructure grant account. A voting 
274.19 	equipment and infrastructure grant account is established in the special revenue fund. Funds 
274.20 	in the account are appropriated to the secretary of state to provide grants to political 
274.21 	subdivisions as authorized by this section. Funds in the account are available until expended
274.22 	spent.
274.23 		Subd. 2.Authorized equipment purposes. A political subdivision may apply to receive 
274.24 	a grant under this section for the purchase or lease of the following:
274.25 	(1) an electronic voting system, or any individual components of an electronic voting 
274.26 	system as provided in section 206.56, subdivision 8;
274.27 	(2) assistive voting technology;
274.28 	(3) an electronic roster system meeting the technology requirements of section 201.225, 
274.29 	subdivision 2; and
274.30 	(4) hardware or software for election-related purposes;
274.31 	(5) cybersecurity for election-related purposes;
275.1 	(6) security-related infrastructure for election-related purposes; and
275.2 	(7) any other equipment or technology approved by the secretary of state for use in 
275.3 	conducting a state or local election in Minnesota consistent with the requirements of law.
275.4 		Subd. 3.Application. (a) The secretary of state may make a grant from the account to 
275.5 	a political subdivision only after receiving an application from the political subdivision. 
275.6 	The application must contain the following information:
275.7 	(1) the date the application is submitted;
275.8 	(2) the name of the political subdivision;
275.9 	(3) the name and title of the individual who prepared the application;
275.10 	(4) if the application is for equipment described in subdivision 2, clauses 1 to 3:
275.11 	(i) the type of voting system currently used in each precinct in the political subdivision;
275.12 	and
275.13 	(5) (ii) the date the system currently used was acquired and at what cost;
275.14 	(6) (5) the total number of registered voters, as of the date of the application, in each 
275.15 	precinct in the political subdivision;
275.16 	(7) (6) the total amount of the grant requested;
275.17 	(8) (7) the total amount and source of the political subdivision's money to be used to 
275.18 	match a grant from the account;
275.19 	(9) (8) the type of voting system equipment or infrastructure to be acquired with the 
275.20 	grant money and, if the application is for a voting system, whether the voting system will 
275.21 	permit individuals with disabilities to cast a secret ballot;
275.22 	(10) (9) the proposed schedule for purchasing and implementing using the new voting 
275.23 	system and equipment or infrastructure;
275.24 	(10) where the equipment or infrastructure would be used, including, where applicable, 
275.25 	the precincts in which the new voting system equipment or infrastructure would be used;
275.26 	(11) whether the political subdivision has previously applied for a grant from the account 
275.27 	and the disposition of that application;
275.28 	(12) a certified statement by the political subdivision that the grant will be used only to 
275.29 	purchase authorized equipment or infrastructure under subdivision 2 and that the political 
275.30 	subdivision has insufficient resources to purchase the voting system without obtaining a 
275.31 	grant from the account;
276.1 	(13) a statement of why the political subdivision needs the equipment or infrastructure; 
276.2 	and
276.3 	(13) (14) any other information required by the secretary of state.
276.4 	(b) The secretary of state must establish a deadline for receipt of grant applications, a 
276.5 	procedure for awarding and distributing grants, and a process for verifying the proper use 
276.6 	of the grants after distribution.
276.7 		Subd. 4.Amount of grant. A political subdivision is eligible to receive a grant of no 
276.8 	more than 75 80 percent of the total cost of electronic roster equipment and 50 percent of 
276.9 	the total cost of all other equipment or technology equipment or infrastructure authorized 
276.10 	for a grant under subdivision 2. In evaluating the application, the secretary of state shall 
276.11 	consider only the information set forth in the application and is not subject to chapter 14. 
276.12 	If the secretary of state determines that the application has been fully and properly completed, 
276.13 	and that there is a sufficient balance in the account to fund the grant, either in whole or in 
276.14 	part, the secretary of state may approve the application.
276.15 		Subd. 5.Report to legislature. No later than By January 15, 2018, and annually thereafter 
276.16 	until the appropriations provided for grants under this section have been exhausted, of each 
276.17 	year, the secretary of state must submit a report to the legislative committees with jurisdiction 
276.18 	over elections policy on grants awarded by this section. The report must detail each grant 
276.19 	awarded, including the jurisdiction, the amount of the grant, and the type of equipment 
276.20 	purchased.
276.21 		Subd. 6.Transfer to account. Beginning in fiscal year 2024 and annually thereafter, 
276.22 	$4,000,000 is transferred from the general fund to the voting equipment and infrastructure 
276.23 	grant account in the special revenue fund.

276.24 	EFFECTIVE DATE. This section is effective July 1, 2023.

276.25 	Sec. 3. Minnesota Statutes 2022, section 270C.52, subdivision 2, is amended to read:
276.26 		Subd. 2.Payment agreements. (a) When any portion of any tax payable to the 
276.27 	commissioner together with interest and penalty thereon, if any, has not been paid, the 
276.28 	commissioner may extend the time for payment for a further period. When the authority of 
276.29 	this section is invoked, the extension shall be evidenced by written agreement signed by 
276.30 	the taxpayer and the commissioner, stating the amount of the tax with penalty and interest, 
276.31 	if any, and providing for the payment of the amount in installments.
276.32 	(b) The agreement may contain a confession of judgment for the amount and for any 
276.33 	unpaid portion thereof. If the agreement contains a confession of judgment, the confession 
277.1 	of judgment must provide that the commissioner may enter judgment against the taxpayer 
277.2 	in the district court of the county of residence as shown upon the taxpayer's tax return for 
277.3 	the unpaid portion of the amount specified in the extension agreement.
277.4 	(c) The agreement shall provide that it can be terminated, after notice by the 
277.5 	commissioner, if information provided by the taxpayer prior to the agreement was inaccurate 
277.6 	or incomplete, collection of the tax covered by the agreement is in jeopardy, there is a 
277.7 	subsequent change in the taxpayer's financial condition, the taxpayer has failed to make a 
277.8 	payment due under the agreement, or the taxpayer has failed to pay any other tax or file a 
277.9 	tax return coming due after the agreement.
277.10 	(d) The notice must be given at least 14 calendar days prior to termination, and shall 
277.11 	advise the taxpayer of the right to request a reconsideration from the commissioner of 
277.12 	whether termination is reasonable and appropriate under the circumstances. A request for 
277.13 	reconsideration does not stay collection action beyond the 14-day notice period. If the 
277.14 	commissioner has reason to believe that collection of the tax covered by the agreement is 
277.15 	in jeopardy, the commissioner may proceed under section 270C.36 and terminate the 
277.16 	agreement without regard to the 14-day period.
277.17 	(e) The commissioner may accept other collateral the commissioner considers appropriate 
277.18 	to secure satisfaction of the tax liability. The principal sum specified in the agreement shall 
277.19 	bear interest at the rate specified in section 270C.40 on all unpaid portions thereof until the 
277.20 	same has been fully paid or the unpaid portion thereof has been entered as a judgment. The 
277.21 	judgment shall bear interest at the rate specified in section 270C.40.
277.22 	(f) If it appears to the commissioner that the tax reported by the taxpayer is in excess of 
277.23 	the amount actually owing by the taxpayer, the extension agreement or the judgment entered 
277.24 	pursuant thereto shall be corrected. If after making the extension agreement or entering 
277.25 	judgment with respect thereto, the commissioner determines that the tax as reported by the 
277.26 	taxpayer is less than the amount actually due, the commissioner shall assess a further tax 
277.27 	in accordance with the provisions of law applicable to the tax.
277.28 	(g) The authority granted to the commissioner by this section is in addition to any other 
277.29 	authority granted to the commissioner by law to extend the time of payment or the time for 
277.30 	filing a return and shall not be construed in limitation thereof.
277.31 	(h) The commissioner shall charge a fee for entering into payment agreements. The fee 
277.32 	is set at $50 and is charged for entering into a payment agreement, for entering into a new 
277.33 	payment agreement after the taxpayer has defaulted on a prior agreement, and for entering 
277.34 	into a new payment agreement as a result of renegotiation of the terms of an existing 
278.1 	agreement. The fee is paid to the commissioner before the payment agreement becomes 
278.2 	effective and does not reduce the amount of the liability.

278.3 	EFFECTIVE DATE. This section is effective for payment plans entered into beginning 
278.4 	30 days after the day following final enactment.

278.5 	Sec. 4. Minnesota Statutes 2022, section 278.01, subdivision 1, is amended to read:
278.6 		Subdivision 1.Determination of validity. (a) Any person having personal property, or 
278.7 	any estate, right, title, or interest in or lien upon any parcel of land, who claims that such 
278.8 	property has been partially, unfairly, or unequally assessed in comparison with other property 
278.9 	in the (1) city, or (2) county, or (3) in the case of a county containing a city of the first class, 
278.10 	the portion of the county excluding the first class city, or that the parcel has been assessed 
278.11 	at a valuation greater than its real or actual value, or that the tax levied against the same is 
278.12 	illegal, in whole or in part, or has been paid, or that the property is exempt from the tax so 
278.13 	levied, may have the validity of the claim, defense, or objection determined by the district 
278.14 	court of the county in which the tax is levied or by the Tax Court by personally serving one 
278.15 	copy of a petition for such determination upon the county auditor, one copy on the county 
278.16 	attorney, one copy on the county treasurer, and three copies on the county assessor. The 
278.17 	county assessor shall immediately forward one copy of the petition to the appropriate 
278.18 	governmental authority in a home rule charter or statutory city or town in which the property 
278.19 	is located if that city or town employs its own certified assessor. A copy of the petition shall 
278.20 	also be forwarded by the assessor to the school board of the school district in which the 
278.21 	property is located. The county auditor may waive personal service of a petition by: (i) 
278.22 	agreeing to accept service through an alternative service method; (ii) designating an 
278.23 	alternative service method on the county website; or (iii) acknowledging receipt of a petition 
278.24 	served through an alternative service method. An alternative service method includes but 
278.25 	is not limited to service by email or by an electronic upload to a website designated by the 
278.26 	county. Service may be made by any person, including a party to the action.
278.27 	(b) In counties where the office of county treasurer has been combined with the office 
278.28 	of county auditor, the county may elect to require the petitioner to serve the number of 
278.29 	copies as determined by the county. Within 30 days after a petition is served and filed, the 
278.30 	county auditor must provide a copy of the petition, if a copy has not already been provided, 
278.31 	to the county assessor, county treasurer, and the county attorney. The county assessor shall 
278.32 	immediately forward one copy of the petition to the appropriate governmental authority in 
278.33 	a home rule charter or statutory city or town in which the property is located if that city or 
278.34 	town employs its own certified assessor. On or before the first day of July, the county auditor 
279.1 	must send a list of petitioned properties, including to the school board of the school district 
279.2 	in which the property is located. The list must include the name of the petitioner, the 
279.3 	identification number of the property, and the estimated market value, shall be sent on or 
279.4 	before the first day of July by the county auditor/treasurer to the school board of the school 
279.5 	district in which the property is located of the property.
279.6 	(c) For all counties, the petitioner must file the copies with a copy of the petition and
279.7 	proof of service, of the petition in the office of the court administrator of the district court 
279.8 	on or before April 30 of the year in which the tax becomes payable. A petition for 
279.9 	determination under this section may be transferred by the district court to the Tax Court. 
279.10 	An appeal may also be taken to the Tax Court under chapter 271 at any time following 
279.11 	receipt of the valuation notice that county assessors or city assessors having the powers of 
279.12 	a county assessor are required by section 273.121 to send to persons whose property is to 
279.13 	be included on the assessment roll that year, but prior to May 1 of the year in which the 
279.14 	taxes are payable.

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

279.16 	Sec. 5. Minnesota Statutes 2022, section 297H.13, subdivision 2, is amended to read:
279.17 		Subd. 2.Allocation of revenues. (a) $33,760,000, or 70 percent, whichever is greater,
279.18 	Of the amounts remitted under this chapter, 70 percent must be credited to the environmental 
279.19 	fund established in section 16A.531, subdivision 1.
279.20 	(b) In addition to the amounts credited to the environmental fund in paragraph (a), 15 
279.21 	percent of the amounts remitted under this chapter shall be deposited into the resource 
279.22 	management account in the environmental fund in fiscal year 2027 and later.
279.23 	(c) The remainder must be deposited into the general fund.
279.24 	(d) Beginning in fiscal year 2027 and annually thereafter, the money deposited in the 
279.25 	resource management account in the environmental fund under paragraph (b) is appropriated 
279.26 	to the commissioner of the Pollution Control Agency for distribution to counties under 
279.27 	section 115A.557, subdivision 2, paragraph (a), clauses (1) to (7) and (9) to (11).

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

279.29 	Sec. 6. [428B.01] DEFINITIONS.
279.30 		Subdivision 1.Applicability. As used in sections 428B.01 to 428B.09, the terms in this 
279.31 	section have the meanings given them.
280.1 		Subd. 2.Activity. "Activity" means but is not limited to all of the following:
280.2 	(1) promotion of tourism within the district;
280.3 	(2) promotion of business activity, including but not limited to tourism, of businesses 
280.4 	subject to the service charge within the tourism improvement district;
280.5 	(3) marketing, sales, and economic development; and
280.6 	(4) other services provided for the purpose of conferring benefits upon businesses located 
280.7 	in the tourism improvement district that are subject to the tourism improvement district 
280.8 	service charge.
280.9 		Subd. 3.Business. "Business" means the type or class of lodging business that is 
280.10 	described in the municipality's ordinance, which benefits from district activities, adopted 
280.11 	under section 428B.02.
280.12 		Subd. 4.Business owner. "Business owner" means a person recognized by a municipality 
280.13 	as the owner of a business.
280.14 		Subd. 5.City. "City" means a home rule charter or statutory city.
280.15 		Subd. 6.Clerk. "Clerk" means the chief clerical officer of the municipality.
280.16 		Subd. 7.Governing body. "Governing body" means, with respect to a city, a city council 
280.17 	or other governing body of a city. With respect to a town, governing body means a town 
280.18 	board or other governing body of a town. With respect to a county, governing body means 
280.19 	a board of commissioners or other governing body of a county.
280.20 		Subd. 8.Impacted business owners. "Impacted business owners" means a majority of 
280.21 	business owners located within a proposed or established tourism improvement district.
280.22 		Subd. 9.Municipality. "Municipality" means a county, city, or town.
280.23 		Subd. 10.Tourism improvement association. "Tourism improvement association" 
280.24 	means a new or existing and tax-exempt nonprofit corporation, entity, or agency charged 
280.25 	with promoting tourism within the tourism improvement district and that is under contract 
280.26 	with the municipality to administer the tourism improvement district and implement the 
280.27 	activities and improvements listed in the municipality's ordinance.
280.28 		Subd. 11.Tourism improvement district. "Tourism improvement district" means a 
280.29 	tourism improvement district established under this chapter.

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

281.1 	Sec. 7. [428B.02] ESTABLISHMENT OF TOURISM IMPROVEMENT DISTRICT.
281.2 		Subdivision 1.Ordinance. (a) Upon a petition by impacted business owners, a governing 
281.3 	body of a municipality may adopt an ordinance establishing a tourism improvement district 
281.4 	after holding a public hearing on the district. The ordinance must include:
281.5 	(1) a map that identifies the tourism improvement district boundaries in sufficient detail 
281.6 	to allow a business owner to determine whether a business is located within the tourism 
281.7 	improvement district boundaries;
281.8 	(2) the name of the tourism improvement association designated to administer the tourism 
281.9 	improvement district and implement the approved activities and improvements;
281.10 	(3) a list of the proposed activities and improvements in the tourism improvement district;
281.11 	(4) the time and manner of collecting the service charge and any interest and penalties 
281.12 	for nonpayment;
281.13 	(5) a definition describing the type or class of businesses to be included in the tourism 
281.14 	improvement district and subject to the service charge;
281.15 	(6) the rate, method, and basis of the service charge with intent, and penalties on 
281.16 	delinquent payments for the district, including the portion dedicated to covering expenses 
281.17 	listed in subdivision 4, paragraph (b); and
281.18 	(7) the number of years the service charge will be in effect.
281.19 	(b) If the boundaries of a proposed tourism improvement district overlap with the 
281.20 	boundaries of an existing special service district, the tourism improvement district ordinance 
281.21 	may list measures to avoid any impediments on the ability of the special service district to 
281.22 	continue to provide its services to benefit its property owners.
281.23 		Subd. 2.Notice. A municipality must provide notice of the hearing by publication in at 
281.24 	least two issues of the official newspaper of the municipality. The two publications must 
281.25 	be two weeks apart and the municipality must hold the hearing at least three days after the 
281.26 	last publication. Not less than ten days before the hearing, the municipality must mail, or 
281.27 	deliver by electronic means, notice to the business owner of each business subject to the 
281.28 	proposed service charge by the tourism improvement district. The notice must include:
281.29 	(1) a map showing the boundaries of the proposed district;
281.30 	(2) the time and place of the hearing;
281.31 	(3) a statement that all interested persons will be given an opportunity to be heard at the 
281.32 	hearing regarding the proposed service charge; and
282.1 	(4) a brief description of the proposed activities, improvements, and service charge.
282.2 		Subd. 3.Business owner determination. A business must provide ownership information 
282.3 	to the municipality. A municipality has no obligation to obtain other information regarding 
282.4 	the ownership of businesses, and its determination of ownership shall be final for the purposes 
282.5 	of this chapter. If this chapter requires the signature of a business owner, the signature of 
282.6 	the authorized representative of a business owner is sufficient.
282.7 		Subd. 4.Service charges; relationship to services. (a) A municipality may impose a 
282.8 	service charge on a business pursuant to this chapter for the purpose of providing activities 
282.9 	and improvements that will provide benefits to a business that is located within the tourism 
282.10 	improvement district and subject to the tourism improvement district service charge. Each 
282.11 	business paying a service charge within a district must benefit directly or indirectly from 
282.12 	improvements provided by a tourism improvement association, provided, however, the 
282.13 	business need not benefit equally. Service charges must be based on a percent of gross 
282.14 	business revenue, a fixed dollar amount per transaction, or any other reasonable method 
282.15 	based upon benefit and approved by the municipality.
282.16 	(b) Service charges may be used to cover the costs of collections, as well as other 
282.17 	administrative costs associated with operating, forming, or maintaining the district.
282.18 		Subd. 5.Public hearing. At the hearing regarding the adoption of the ordinance 
282.19 	establishing a tourism improvement district, business owners and persons affected by the 
282.20 	proposed district may testify on issues relevant to the proposed district. The hearing may 
282.21 	be adjourned from time to time. The ordinance establishing the district may be adopted at 
282.22 	any time within six months after the date of the conclusion of the hearing by a vote of the 
282.23 	majority of the governing body of the municipality.
282.24 		Subd. 6.Appeal to district court. Within 45 days after the adoption of the ordinance 
282.25 	establishing a tourism improvement district, a person aggrieved, who is not precluded by 
282.26 	failure to object before or at the hearing, may appeal to the district court by serving a notice 
282.27 	on the clerk of the municipality or governing body. The validity of the tourism improvement 
282.28 	district and the service charge imposed under this chapter shall not be contested in an action 
282.29 	or proceeding unless the action or proceeding is commenced within 45 days after the adoption 
282.30 	of the ordinance establishing a tourism improvement district. The petitioner must file notice 
282.31 	with the court administrator of the district court within ten days after its service. The clerk 
282.32 	of the municipality must provide the petitioner with a certified copy of the findings and 
282.33 	determination of the governing body. The court may affirm the action objected to or, if the 
282.34 	petitioner's objections have merit, modify or cancel it. If the petitioner does not prevail on 
283.1 	the appeal, the costs incurred shall be charged to the petitioner by the court and judgment 
283.2 	entered for them. All objections shall be deemed waived unless presented on appeal.
283.3 		Subd. 7.Notice to the commissioner of revenue. Within 30 days of adoption of the 
283.4 	ordinance, the governing body must send a copy of the ordinance to the commissioner of 
283.5 	revenue.

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

283.7 	Sec. 8. [428B.03] SERVICE CHARGE AUTHORITY; NOTICE; HEARING 
283.8 	REQUIREMENT.
283.9 		Subdivision 1.Authority. A municipality may impose service charges authorized under 
283.10 	section 428B.02, subdivision 4, to finance an activity or improvement in the tourism 
283.11 	improvement district that is provided by the municipality if the activity or improvement is 
283.12 	provided in the tourism improvement district at an increased level of service. The service 
283.13 	charges may be imposed in the amount needed to pay for the increased level of service 
283.14 	provided by the activity or improvement.
283.15 		Subd. 2.Annual hearing requirement; notice. Beginning one year after the 
283.16 	establishment of the tourism improvement district, the municipality must hold an annual 
283.17 	public hearing regarding continuation of the service charges in the tourism improvement 
283.18 	district. The municipality must provide notice of the hearing by publication in the official 
283.19 	newspaper at least seven days before the hearing. The municipality must mail, or deliver 
283.20 	by electronic means, notice of the hearing to business owners subject to the service charge 
283.21 	at least seven days before the hearing. At the hearing, a person affected by the proposed 
283.22 	district may testify on issues relevant to the proposed district. Within six months of the 
283.23 	hearing, the municipality may adopt a resolution to continue imposing service charges within 
283.24 	the district not exceeding the amount or rate expressed in the notice. For purposes of this 
283.25 	section, the notice must include:
283.26 	(1) a map showing the boundaries of the district;
283.27 	(2) the time and place of the hearing;
283.28 	(3) a statement that all interested persons will be given an opportunity to be heard at the 
283.29 	hearing regarding the proposed service charge;
283.30 	(4) a brief description of the proposed activities and improvements;
283.31 	(5) the estimated annual amount of proposed expenditures for activities and 
283.32 	improvements;
284.1 	(6) the rate of the service charge for the district during the year and the nature and 
284.2 	character of the proposed activities and improvements for the district during the year in 
284.3 	which service charges are collected;
284.4 	(7) the number of years the service charge will be in effect; and
284.5 	(8) a statement that the petition requirement of section 428B.07 has either been met or 
284.6 	does not apply to the proposed service charge.

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

284.8 	Sec. 9. [428B.04] MODIFICATION OF ORDINANCE.
284.9 		Subdivision 1.Adoption of ordinance; request for modification. Upon written request 
284.10 	of the tourism improvement association, the governing body of a municipality may adopt 
284.11 	an ordinance to modify the district after conducting a public hearing on the proposed 
284.12 	modifications. If the modification includes a change to the rate, method, and basis of 
284.13 	imposing the service charge or the expansion of the tourism improvement district's geographic 
284.14 	boundaries, a petition as described in section 428B.07 must be submitted by impacted 
284.15 	business owners to initiate proceedings for modification.
284.16 		Subd. 2.Notice of modification. A municipality must provide notice of the hearing by 
284.17 	publication in at least two issues of the municipality's official newspaper. The two 
284.18 	publications must be two weeks apart and the municipality must hold a hearing at least three 
284.19 	days after the last publication. Not less than ten days before the hearing, the municipality 
284.20 	must mail, or deliver by electronic means, notice to the business owner of each business 
284.21 	subject to the service charge by the tourism improvement district. The notice must include:
284.22 	(1) a map showing the boundaries of the district and any proposed changes to the 
284.23 	boundaries of the district;
284.24 	(2) the time and place of the hearing;
284.25 	(3) a statement that all interested persons will be given an opportunity to be heard at the 
284.26 	hearing regarding the proposed service charge; and
284.27 	(4) a brief description of the proposed modification to the ordinance.
284.28 		Subd. 3.Hearing on modification. At the hearing regarding modification to the 
284.29 	ordinance, business owners and persons affected by the proposed modification may testify 
284.30 	on issues relevant to the proposed modification. Within six months after the conclusion of 
284.31 	the hearing, the municipality may adopt the ordinance modifying the district by a vote of 
285.1 	the majority of the governing body in accordance with the request for modification by the 
285.2 	tourism improvement association and as described in the notice.
285.3 		Subd. 4.Objection. If the modification of the ordinance includes the expansion of the 
285.4 	tourism improvement district's geographic boundaries, the ordinance modifying the district 
285.5 	may be adopted after following the notice and veto requirements in section 428B.08; 
285.6 	however, a successful objection will be determined based on a majority of business owners 
285.7 	who will pay the service charge in the expanded area of the district. For all other 
285.8 	modifications, the ordinance modifying the district may be adopted following the notice 
285.9 	and veto requirements in section 428B.08.

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

285.11 	Sec. 10. [428B.05] COLLECTION OF SERVICE CHARGES; PENALTIES.
285.12 	The service charges imposed under this chapter may be collected by the municipality, 
285.13 	tourism improvement association, or other designated agency or entity. Collection of the 
285.14 	service charges must be made at the time and in the manner set forth in the ordinance. The 
285.15 	entity collecting the service charges may charge interest and penalties on delinquent payments 
285.16 	for service charges imposed under this chapter as set forth in the municipality's ordinance.

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

285.18 	Sec. 11. [428B.06] TOURISM IMPROVEMENT ASSOCIATION.
285.19 		Subdivision 1.Composition and duties. The tourism improvement association must 
285.20 	be designated in the municipality's ordinance. The tourism improvement association shall 
285.21 	appoint a governing board or committee composed of a majority of business owners who 
285.22 	pay the tourism improvement district service charge, or the representatives of those business 
285.23 	owners. The governing board or committee must manage the funds raised by the tourism 
285.24 	improvement district and fulfill the obligations of the tourism improvement district. A 
285.25 	tourism improvement association has full discretion to select the specific activities and 
285.26 	improvements that are funded with tourism improvement district service charges within the 
285.27 	authorized activities and improvements described in the ordinance.
285.28 		Subd. 2.Annual report. The tourism improvement association must submit to the 
285.29 	municipality an annual report for each year in which a service charge is imposed. The report 
285.30 	must include a financial statement of revenue raised by the district. The municipality may 
285.31 	also, as part of the enabling ordinance, require the submission of other relevant information 
285.32 	related to the association.

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

286.2 	Sec. 12. [428B.07] PETITION REQUIRED.
286.3 	A municipality may not establish a tourism improvement district under section 428B.02 
286.4 	unless impacted business owners file a petition requesting a public hearing on the proposed 
286.5 	action with the clerk of the municipality.

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

286.7 	Sec. 13. [428B.08] VETO POWER OF OWNERS.
286.8 		Subdivision 1.Notice of right to file objections. The effective date of an ordinance or 
286.9 	resolution adopted under this chapter must be at least 45 days after it is adopted by the 
286.10 	municipality. Within five days after the municipality adopts the ordinance or resolution, 
286.11 	the municipality must mail a summary of the ordinance or resolution to each business owner 
286.12 	subject to the service charge within the tourism improvement district in the same manner 
286.13 	that notice is mailed, or delivered by electronic means, under section 428B.02. The mailing 
286.14 	must include a notice that business owners subject to the service charge have the right to 
286.15 	veto, by a simple majority, the ordinance or resolution by filing the required number of 
286.16 	objections with the clerk of the municipality before the effective date of the ordinance or 
286.17 	resolution and include notice that a copy of the ordinance or resolution is available for public 
286.18 	inspection with the clerk of the municipality.
286.19 		Subd. 2.Requirements for veto. If impacted business owners file an objection to the 
286.20 	ordinance or resolution before the effective date of the ordinance or resolution, the ordinance 
286.21 	or resolution does not become effective.

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

286.23 	Sec. 14. [428B.09] DISESTABLISHMENT.
286.24 		Subdivision 1.Procedure for disestablishment. An ordinance adopted under this chapter 
286.25 	must provide a 30-day period each year in which business owners subject to the service 
286.26 	charge may request disestablishment of the district. Beginning one year after establishment 
286.27 	of the tourism improvement district, an annual 30-day period of disestablishment begins 
286.28 	with the anniversary of the date of establishment. Upon submission of a petition from 
286.29 	impacted business owners, the municipality may disestablish a tourism improvement district 
286.30 	by adopting an ordinance after holding a public hearing on the disestablishment. Prior to 
286.31 	the hearing, the municipality must publish notice of the hearing on disestablishment in at 
286.32 	least two issues of the municipality's official newspaper. The two publications must be two 
287.1 	weeks apart and the municipality must hold the hearing at least three days after the last 
287.2 	publication. Not less than ten days before the hearing, the municipality must mail, or deliver 
287.3 	by electronic means, notice to the business owner of each business subject to the service 
287.4 	charge. The notice must include:
287.5 	(1) the time and place of the hearing;
287.6 	(2) a statement that all interested persons will be given an opportunity to be heard at the 
287.7 	hearing regarding disestablishment;
287.8 	(3) the reason for disestablishment; and
287.9 	(4) a proposal to dispose of any assets acquired with the revenues of the service charge 
287.10 	imposed under the tourism improvement district.
287.11 		Subd. 2.Objection. An ordinance disestablishing the tourism improvement district 
287.12 	becomes effective following the notice and veto requirements in section 428B.08.
287.13 		Subd. 3.Refund to business owners. (a) Upon the disestablishment of a tourism 
287.14 	improvement district, any remaining revenues derived from the service charge, or any 
287.15 	revenues derived from the sale of assets acquired with the service charge revenues, shall 
287.16 	be refunded to business owners located and operating within the tourism improvement 
287.17 	district in which service charges were imposed by applying the same method and basis that 
287.18 	was used to calculate the service charges levied in the fiscal year in which the district is 
287.19 	disestablished.
287.20 	(b) If the disestablishment occurs before the service charge is imposed for the fiscal 
287.21 	year, the method and basis that was used to calculate the service charge imposed in the 
287.22 	immediate prior fiscal year shall be used to calculate the amount of a refund, if any.

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

287.24 	Sec. 15. [428B.10] COORDINATION OF DISTRICTS.
287.25 	If a county establishes a tourism improvement district in a city or town under this chapter, 
287.26 	a city or town may not establish a tourism improvement district in the part of the city or 
287.27 	town located in the county-established district. If a city or town establishes a tourism 
287.28 	improvement district under this chapter, a county may not establish a tourism improvement 
287.29 	district in the part of the city or town located in the city- or town-established district.

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

288.1 	ARTICLE 14
288.2 	DEPARTMENT OF REVENUE: INDIVIDUAL INCOME AND CORPORATE 
288.3 	FRANCHISE TAXES

288.4 	Section 1. Minnesota Statutes 2022, section 289A.08, subdivision 7, as amended by Laws 
288.5 	2023, chapter 1, section 2, is amended to read:
288.6 		Subd. 7.Composite income tax returns for nonresident partners, shareholders, and 
288.7 	beneficiaries. (a) The commissioner may allow a partnership with nonresident partners to 
288.8 	file a composite return and to pay the tax on behalf of nonresident partners who have no 
288.9 	other Minnesota source income. This composite return must include the names, addresses, 
288.10 	Social Security numbers, income allocation, and tax liability for the nonresident partners 
288.11 	electing to be covered by the composite return.
288.12 	(b) The computation of a partner's tax liability must be determined by multiplying the 
288.13 	income allocated to that partner by the highest rate used to determine the tax liability for 
288.14 	individuals under section 290.06, subdivision 2c. Nonbusiness deductions, standard 
288.15 	deductions, or personal exemptions are not allowed.
288.16 	(c) The partnership must submit a request to use this composite return filing method for 
288.17 	nonresident partners. The requesting partnership must file a composite return in the form 
288.18 	prescribed by the commissioner of revenue. The filing of a composite return is considered 
288.19 	a request to use the composite return filing method.
288.20 	(d) The electing partner must not have any Minnesota source income other than the 
288.21 	income from the partnership, other electing partnerships, and other qualifying entities 
288.22 	electing to file and pay the pass-through entity tax under subdivision 7a. If it is determined 
288.23 	that the electing partner has other Minnesota source income, the inclusion of the income 
288.24 	and tax liability for that partner under this provision will not constitute a return to satisfy 
288.25 	the requirements of subdivision 1. The tax paid for the individual as part of the composite 
288.26 	return is allowed as a payment of the tax by the individual on the date on which the composite 
288.27 	return payment was made. If the electing nonresident partner has no other Minnesota source 
288.28 	income, filing of the composite return is a return for purposes of subdivision 1.
288.29 	(e) This subdivision does not negate the requirement that an individual pay estimated 
288.30 	tax if the individual's liability would exceed the requirements set forth in section 289A.25. 
288.31 	The individual's liability to pay estimated tax is, however, satisfied when the partnership 
288.32 	pays composite estimated tax in the manner prescribed in section 289A.25.
288.33 	(f) If an electing partner's share of the partnership's gross income from Minnesota sources 
288.34 	is less than the filing requirements for a nonresident under this subdivision, the tax liability 
289.1 	is zero. However, a statement showing the partner's share of gross income must be included 
289.2 	as part of the composite return.
289.3 	(g) The election provided in this subdivision is only available to a partner who has no 
289.4 	other Minnesota source income and who is either (1) a full-year nonresident individual or 
289.5 	(2) a trust or estate that does not claim a deduction under either section 651 or 661 of the 
289.6 	Internal Revenue Code.
289.7 	(h) A corporation defined in section 290.9725 and its nonresident shareholders may 
289.8 	make an election under this paragraph. The provisions covering the partnership apply to 
289.9 	the corporation and the provisions applying to the partner apply to the shareholder.
289.10 	(i) Estates and trusts distributing current income only and the nonresident individual 
289.11 	beneficiaries of the estates or trusts may make an election under this paragraph. The 
289.12 	provisions covering the partnership apply to the estate or trust. The provisions applying to 
289.13 	the partner apply to the beneficiary.
289.14 	(j) For the purposes of this subdivision, "income" means the partner's share of federal 
289.15 	adjusted gross income from the partnership modified by the additions provided in section 
289.16 	290.0131, subdivisions 8 to 10, 16, and 17, and the subtractions provided in: (1) section 
289.17 	290.0132, subdivisions 9, 27, 28, and 31, to the extent the amount is assignable or allocable 
289.18 	to Minnesota under section 290.17; and (2) section 290.0132, subdivision 14. The subtraction 
289.19 	allowed under section 290.0132, subdivision 9, is only allowed on the composite tax 
289.20 	computation to the extent the electing partner would have been allowed the subtraction. has 
289.21 	the meaning given in section 290.01, subdivision 19, paragraph (h).

289.22 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
289.23 	31, 2022.

289.24 	Sec. 2. Minnesota Statutes 2022, section 289A.08, subdivision 7a, as amended by Laws 
289.25 	2023, chapter 1, section 3, is amended to read:
289.26 		Subd. 7a.Pass-through entity tax. (a) For the purposes of this subdivision, the following 
289.27 	terms have the meanings given:
289.28 	(1) "income" has the meaning given in subdivision 7, paragraph (j), modified by the 
289.29 	addition provided in section 290.0131, subdivision 5, and the subtraction provided in section 
289.30 	290.0132, subdivision 3, except that the provisions that apply to a partnership apply to a 
289.31 	qualifying entity and the provisions that apply to a partner apply to a qualifying owner. The 
289.32 	income of both a resident and nonresident qualifying owner is allocated and assigned to 
290.1 	this state as provided for nonresident partners and shareholders under sections 290.17, 
290.2 	290.191, and 290.20; section 290.01, subdivision 19, paragraph (i);
290.3 	(2) "qualifying entity" means a partnership, limited liability company taxed as a 
290.4 	partnership or S corporation, or S corporation including a qualified subchapter S subsidiary 
290.5 	organized under section 1361(b)(3)(B) of the Internal Revenue Code. Qualifying entity does 
290.6 	not include a partnership, limited liability company, or corporation that has a partnership, 
290.7 	limited liability company other than a disregarded entity, or corporation as a partner, member, 
290.8 	or shareholder; and
290.9 	(3) "qualifying owner" means:
290.10 	(i) a resident or nonresident individual or estate that is a partner, member, or shareholder 
290.11 	of a qualifying entity; or
290.12 	(ii) a resident or nonresident trust that is a shareholder of a qualifying entity that is an 
290.13 	S corporation.
290.14 	(b) For taxable years beginning after December 31, 2020, in which the taxes of a 
290.15 	qualifying owner are limited under section 164(b)(6)(B) of the Internal Revenue Code, a 
290.16 	qualifying entity may elect to file a return and pay the pass-through entity tax imposed under 
290.17 	paragraph (c). The election:
290.18 	(1) must be made on or before the due date or extended due date of the qualifying entity's 
290.19 	pass-through entity tax return;
290.20 	(2) may only be made by qualifying owners who collectively hold more than a 50 percent 
290.21 	ownership interest in the qualifying entity;
290.22 	(3) is binding on all qualifying owners who have an ownership interest in the qualifying 
290.23 	entity; and
290.24 	(4) once made is irrevocable for the taxable year.
290.25 	(c) Subject to the election in paragraph (b), a pass-through entity tax is imposed on a 
290.26 	qualifying entity in an amount equal to the sum of the tax liability of each qualifying owner.
290.27 	(d) The amount of a qualifying owner's tax liability under paragraph (c) is the amount 
290.28 	of the qualifying owner's income multiplied by the highest tax rate for individuals under 
290.29 	section 290.06, subdivision 2c. When making this determination:
290.30 	(1) nonbusiness deductions, standard deductions, or personal exemptions are not allowed; 
290.31 	and
290.32 	(2) a credit or deduction is allowed only to the extent allowed to the qualifying owner.
291.1 	(e) The amount of each credit and deduction used to determine a qualifying owner's tax 
291.2 	liability under paragraph (d) must also be used to determine that qualifying owner's income 
291.3 	tax liability under chapter 290.
291.4 	(f) This subdivision does not negate the requirement that a qualifying owner pay estimated 
291.5 	tax if the qualifying owner's tax liability would exceed the requirements set forth in section 
291.6 	289A.25. The qualifying owner's liability to pay estimated tax on the qualifying owner's 
291.7 	tax liability as determined under paragraph (d) is, however, satisfied when the qualifying 
291.8 	entity pays estimated tax in the manner prescribed in section 289A.25 for composite estimated 
291.9 	tax.
291.10 	(g) A qualifying owner's adjusted basis in the interest in the qualifying entity, and the 
291.11 	treatment of distributions, is determined as if the election to pay the pass-through entity tax 
291.12 	under paragraph (b) is not made.
291.13 	(h) To the extent not inconsistent with this subdivision, for purposes of this chapter, a 
291.14 	pass-through entity tax return must be treated as a composite return and a qualifying entity 
291.15 	filing a pass-through entity tax return must be treated as a partnership filing a composite 
291.16 	return.
291.17 	(i) The provisions of subdivision 17 apply to the election to pay the pass-through entity 
291.18 	tax under this subdivision.
291.19 	(j) If a nonresident qualifying owner of a qualifying entity making the election to file 
291.20 	and pay the tax under this subdivision has no other Minnesota source income, filing of the 
291.21 	pass-through entity tax return is a return for purposes of subdivision 1, provided that the 
291.22 	nonresident qualifying owner must not have any Minnesota source income other than the 
291.23 	income from the qualifying entity, other electing qualifying entities, and other partnerships 
291.24 	electing to file a composite return under subdivision 7. If it is determined that the nonresident 
291.25 	qualifying owner has other Minnesota source income, the inclusion of the income and tax 
291.26 	liability for that owner under this provision will not constitute a return to satisfy the 
291.27 	requirements of subdivision 1. The tax paid for the qualifying owner as part of the 
291.28 	pass-through entity tax return is allowed as a payment of the tax by the qualifying owner 
291.29 	on the date on which the pass-through entity tax return payment was made.
291.30 	(k) Once a credit is claimed by a qualifying owner under section 290.06, subdivision 
291.31 	40, a qualifying entity cannot receive a refund for tax paid under this subdivision for any 
291.32 	amounts claimed under that section by the qualifying owners. Once a credit is claimed under 
291.33 	section 290.06, subdivision 40, any refund must be claimed in conjunction with a return 
291.34 	filed by the qualifying owner.

292.1 	EFFECTIVE DATE. (a) The amendment to paragraph (a), clause (1), is effective for 
292.2 	taxable years beginning after December 31, 2022.
292.3 	(b) The amendment to paragraph (a), clause (2), is effective retroactively for taxable 
292.4 	years beginning after December 31, 2020.

292.5 	Sec. 3. Minnesota Statutes 2022, section 289A.382, subdivision 2, is amended to read:
292.6 		Subd. 2.Reporting and payment requirements for partnerships and tiered 
292.7 	partners. (a) Except for when an audited partnership makes the election in subdivision 3, 
292.8 	and except for negative federal adjustments required under federal law taken into account 
292.9 	by the partnership in the partnership return for the adjustment or other year, all final federal 
292.10 	adjustments of an audited partnership must comply with paragraph (b) and each direct 
292.11 	partner of the audited partnership, other than a tiered partner, must comply with paragraph 
292.12 	(c).
292.13 	(b) No later than 90 days after the final determination date, the audited partnership must:
292.14 	(1) file a completed federal adjustments report, including all partner-level information 
292.15 	required under section 289A.12, subdivision 3, with the commissioner;
292.16 	(2) notify each of its direct partners of their distributive share of the final federal 
292.17 	adjustments;
292.18 	(3) file an amended composite report for all direct partners who were included in a 
292.19 	composite return under section 289A.08, subdivision 7, in the reviewed year, and pay the 
292.20 	additional amount that would have been due had the federal adjustments been reported 
292.21 	properly as required; and
292.22 	(4) file amended withholding reports for all direct partners who were or should have 
292.23 	been subject to nonresident withholding under section 290.92, subdivision 4b, in the reviewed 
292.24 	year, and pay the additional amount that would have been due had the federal adjustments 
292.25 	been reported properly as required.; and
292.26 	(5) file an amended pass-through entity tax report for all direct partners who were 
292.27 	included in a pass-through entity tax return under section 289A.08, subdivision 7a, in the 
292.28 	reviewed year, and pay the additional amount that would have been due had the federal 
292.29 	adjustments been reported properly as required.
292.30 	(c) No later than 180 days after the final determination date, each direct partner, other 
292.31 	than a tiered partner, that is subject to a tax administered under this chapter, other than the 
292.32 	sales tax, must:
293.1 	(1) file a federal adjustments report reporting their distributive share of the adjustments 
293.2 	reported to them under paragraph (b), clause (2); and
293.3 	(2) pay any additional amount of tax due as if the final federal adjustment had been 
293.4 	properly reported, plus any penalty and interest due under this chapter, and less any credit 
293.5 	for related amounts paid or withheld and remitted on behalf of the direct partner under 
293.6 	paragraph (b), clauses (3) and (4).

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

293.9 	Sec. 4. Minnesota Statutes 2022, section 289A.50, is amended by adding a subdivision to 
293.10 	read:
293.11 		Subd. 3a.Nonresident withholding tax refunds. When there is an overpayment of 
293.12 	nonresident withholding tax by a partnership or S corporation, a refund allowable under 
293.13 	this section to the payor is limited to the amount of the overpayment that was not deducted 
293.14 	and withheld from the shares of the payor's partners or shareholders.

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

293.16 	Sec. 5. Minnesota Statutes 2022, section 290.01, subdivision 19, is amended to read:
293.17 		Subd. 19.Net income. (a) For a trust or estate taxable under section 290.03, and a 
293.18 	corporation taxable under section 290.02, the term "net income" means the federal taxable 
293.19 	income, as defined in section 63 of the Internal Revenue Code of 1986, as amended through 
293.20 	the date named in this subdivision, incorporating the federal effective dates of changes to 
293.21 	the Internal Revenue Code and any elections made by the taxpayer in accordance with the 
293.22 	Internal Revenue Code in determining federal taxable income for federal income tax 
293.23 	purposes, and with the modifications provided in sections 290.0131 to 290.0136.
293.24 	(b) For an individual, the term "net income" means federal adjusted gross income with 
293.25 	the modifications provided in sections 290.0131, 290.0132, and 290.0135 to 290.0137.
293.26 	(c) In the case of a regulated investment company or a fund thereof, as defined in section 
293.27 	851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment 
293.28 	company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, 
293.29 	except that:
293.30 	(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal 
293.31 	Revenue Code does not apply;
294.1 	(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue 
294.2 	Code must be applied by allowing a deduction for capital gain dividends and exempt-interest 
294.3 	dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code; 
294.4 	and
294.5 	(3) the deduction for dividends paid must also be applied in the amount of any 
294.6 	undistributed capital gains which the regulated investment company elects to have treated 
294.7 	as provided in section 852(b)(3)(D) of the Internal Revenue Code.
294.8 	(d) The net income of a real estate investment trust as defined and limited by section 
294.9 	856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust 
294.10 	taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
294.11 	(e) The net income of a designated settlement fund as defined in section 468B(d) of the 
294.12 	Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal 
294.13 	Revenue Code.
294.14 	(f) The Internal Revenue Code of 1986, as amended through December 31, 2018, applies 
294.15 	for taxable years beginning after December 31, 1996, except the sections of federal law in 
294.16 	section 290.0111 shall also apply.
294.17 	(g) Except as otherwise provided, references to the Internal Revenue Code in this 
294.18 	subdivision and sections 290.0131 to 290.0136 mean the code in effect for purposes of 
294.19 	determining net income for the applicable year.
294.20 	(h) In the case of a partnership electing to file a composite return under section 289A.08, 
294.21 	subdivision 7, "net income" means the partner's share of federal adjusted gross income from 
294.22 	the partnership modified by the additions provided in section 290.0131, subdivisions 8 to 
294.23 	10, 16, and 17, and the subtractions provided in: (1) section 290.0132, subdivisions 9, 27, 
294.24 	and 28, to the extent the amount is assignable or allocable to Minnesota under section 290.17; 
294.25 	and (2) section 290.0132, subdivision 14. The subtraction allowed under section 290.0132, 
294.26 	subdivision 9, is only allowed on the composite tax computation to the extent the electing 
294.27 	partner would have been allowed the subtraction.
294.28 	(i) In the case of a qualifying entity electing to pay the pass-through entity tax under 
294.29 	section 289A.08, subdivision 7a, "net income" means the qualifying owner's share of federal 
294.30 	adjusted gross income from the qualifying entity modified by the additions provided in 
294.31 	section 290.0131, subdivisions 5, 8 to 10, 16, and 17, and the subtractions provided in: (1) 
294.32 	section 290.0132, subdivisions 3, 9, 27, and 28, to the extent the amount is assignable or 
294.33 	allocable to Minnesota under section 290.17; and (2) section 290.0132, subdivision 14. The 
294.34 	subtraction allowed under section 290.0132, subdivision 9, is only allowed on the 
295.1 	pass-through entity tax computation to the extent the qualifying owners would have been 
295.2 	allowed the subtraction. The income of both a resident and nonresident qualifying owner 
295.3 	is allocated and assigned to this state as provided for nonresident partners and shareholders 
295.4 	under sections 290.17, 290.191, and 290.20.

295.5 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
295.6 	31, 2022.

295.7 	Sec. 6. Minnesota Statutes 2022, section 290.06, subdivision 22, is amended to read:
295.8 		Subd. 22.Credit for taxes paid to another state. (a) A taxpayer who is liable for taxes 
295.9 	based on net income to another state, as provided in paragraphs (b) through (f), upon income 
295.10 	allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to another state 
295.11 	if the tax is actually paid in the taxable year or a subsequent taxable year. A taxpayer who 
295.12 	is a resident of this state pursuant to section 290.01, subdivision 7, paragraph (b), and who 
295.13 	is subject to income tax as a resident in the state of the individual's domicile is not allowed 
295.14 	this credit unless the state of domicile does not allow a similar credit.
295.15 	(b) For an individual, estate, or trust, the credit is determined by multiplying the tax 
295.16 	payable under this chapter by the ratio derived by dividing the income subject to tax in the 
295.17 	other state that is also subject to tax in Minnesota while a resident of Minnesota by the 
295.18 	taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue 
295.19 	Code, modified by the addition required by section 290.0131, subdivision 2, and the 
295.20 	subtraction allowed by section 290.0132, subdivision 2, to the extent the income is allocated 
295.21 	or assigned to Minnesota under sections 290.081 and 290.17.
295.22 	(c) If the taxpayer is an athletic team that apportions all of its income under section 
295.23 	290.17, subdivision 5, the credit is determined by multiplying the tax payable under this 
295.24 	chapter by the ratio derived from dividing the total net income subject to tax in the other 
295.25 	state by the taxpayer's Minnesota taxable income.
295.26 	(d)(1) The credit determined under paragraph (b) or (c) shall not exceed the amount of 
295.27 	tax so paid to the other state on the gross income earned within the other state subject to 
295.28 	tax under this chapter; and
295.29 	(2) the allowance of the credit does not reduce the taxes paid under this chapter to an 
295.30 	amount less than what would be assessed if the gross income earned within the other state 
295.31 	were excluded from taxable net income.
295.32 	(e) In the case of the tax assessed on a lump-sum distribution under section 290.032, the 
295.33 	credit allowed under paragraph (a) is the tax assessed by the other state on the lump-sum 
296.1 	distribution that is also subject to tax under section 290.032, and shall not exceed the tax 
296.2 	assessed under section 290.032. To the extent the total lump-sum distribution defined in 
296.3 	section 290.032, subdivision 1, includes lump-sum distributions received in prior years or 
296.4 	is all or in part an annuity contract, the reduction to the tax on the lump-sum distribution 
296.5 	allowed under section 290.032, subdivision 2, includes tax paid to another state that is 
296.6 	properly apportioned to that distribution.
296.7 	(f) If a Minnesota resident reported an item of income to Minnesota and is assessed tax 
296.8 	in such other state on that same income after the Minnesota statute of limitations has expired, 
296.9 	the taxpayer shall receive a credit for that year under paragraph (a), notwithstanding any 
296.10 	statute of limitations to the contrary. The claim for the credit must be submitted within one 
296.11 	year from the date the taxes were paid to the other state. The taxpayer must submit sufficient 
296.12 	proof to show entitlement to a credit.
296.13 	(g) For the purposes of this subdivision, a resident shareholder of a corporation treated 
296.14 	as an "S" corporation under section 290.9725, must be considered to have paid a tax imposed 
296.15 	on the shareholder in an amount equal to the shareholder's pro rata share of any net income 
296.16 	tax paid by the S corporation to another state. For the purposes of the preceding sentence, 
296.17 	the term "net income tax" means any tax imposed on or measured by a corporation's net 
296.18 	income.
296.19 	(h) For the purposes of this subdivision, a resident partner of an entity taxed as a 
296.20 	partnership under the Internal Revenue Code must be considered to have paid a tax imposed 
296.21 	on the partner in an amount equal to the partner's pro rata share of any net income tax paid 
296.22 	by the partnership to another state. For purposes of the preceding sentence, the term "net 
296.23 	income" tax means any tax imposed on or measured by a partnership's net income. For 
296.24 	purposes of this paragraph, "partnership" includes a limited liability company and "partner" 
296.25 	includes a member of a limited liability company.
296.26 	(i) For the purposes of this subdivision, "another state":
296.27 	(1) includes:
296.28 	(i) the District of Columbia; and
296.29 	(ii) a province or territory of Canada; but
296.30 	(2) excludes Puerto Rico and the several territories organized by Congress.
296.31 	(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a state 
296.32 	by state basis.
297.1 	(k) For a tax imposed by a province or territory of Canada, the tax for purposes of this 
297.2 	subdivision is the excess of the tax over the amount of the foreign tax credit allowed under 
297.3 	section 27 of the Internal Revenue Code. In determining the amount of the foreign tax credit 
297.4 	allowed, the net income taxes imposed by Canada on the income are deducted first. Any 
297.5 	remaining amount of the allowable foreign tax credit reduces the provincial or territorial 
297.6 	tax that qualifies for the credit under this subdivision.
297.7 	(l)(1) The credit allowed to a qualifying individual under this section for tax paid to a 
297.8 	qualifying state equals the credit calculated under paragraphs (b) and (d), plus the amount 
297.9 	calculated by multiplying:
297.10 	(i) the difference between the preliminary credit and the credit calculated under paragraphs 
297.11 	(b) and (d), by
297.12 	(ii) the ratio derived by dividing the income subject to tax in the qualifying state that 
297.13 	consists of compensation for performance of personal or professional services by the total 
297.14 	amount of income subject to tax in the qualifying state.
297.15 	(2) If the amount of the credit that a qualifying individual is eligible to receive under 
297.16 	clause (1) for tax paid to a qualifying state exceeds the tax due under this chapter before 
297.17 	the application of the credit calculated under clause (1), the commissioner shall refund the 
297.18 	excess to the qualifying individual. An amount sufficient to pay the refunds required by this 
297.19 	subdivision is appropriated to the commissioner from the general fund.
297.20 	(3) For purposes of this paragraph, "preliminary credit" means the credit that a qualifying 
297.21 	individual is eligible to receive under paragraphs (b) and (d) for tax paid to a qualifying 
297.22 	state without regard to the limitation in paragraph (d), clause (2); "qualifying individual" 
297.23 	means a Minnesota resident under section 290.01, subdivision 7, paragraph (a), who received 
297.24 	compensation during the taxable year for the performance of personal or professional services 
297.25 	within a qualifying state; and "qualifying state" means a state with which an agreement 
297.26 	under section 290.081 is not in effect for the taxable year but was in effect for a taxable 
297.27 	year beginning before January 1, 2010.
297.28 	(m) For purposes of this subdivision, a resident sole member of a disregarded limited 
297.29 	liability company must be considered to have paid a tax imposed on the sole member in an 
297.30 	amount equal to the net income tax paid by the disregarded limited liability company to 
297.31 	another state. For the purposes of this paragraph, the term "disregarded limited liability 
297.32 	company" means a limited liability company that is disregarded as an entity separate from 
297.33 	its owner as defined in Code of Federal Regulations, title 26, section 301.7701, and "net 
298.1 	income tax" means any tax imposed on or measured by a disregarded limited liability 
298.2 	company's net income.

298.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
298.4 	31, 2022.

298.5 	Sec. 7. Minnesota Statutes 2022, section 290.0671, subdivision 1, is amended to read:
298.6 		Subdivision 1.Credit allowed. (a) An individual who is a resident of Minnesota is 
298.7 	allowed a credit against the tax imposed by this chapter equal to a percentage of earned 
298.8 	income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of the 
298.9 	Internal Revenue Code, except that:
298.10 	(1) a taxpayer with no qualifying children who has attained the age of 19, but not attained 
298.11 	age 65 before the close of the taxable year and is otherwise eligible for a credit under section 
298.12 	32 of the Internal Revenue Code may also receive a credit; and
298.13 	(2) a taxpayer who is otherwise eligible for a credit under section 32 of the Internal 
298.14 	Revenue Code remains eligible for the credit even if the taxpayer's earned income or adjusted 
298.15 	gross income exceeds the income limitation under section 32 of the Internal Revenue Code.
298.16 	(b) For individuals with no qualifying children, the credit equals 3.9 percent of the first 
298.17 	$7,150 of earned income. The maximum credit allowed is reduced by 2.0 percent of earned 
298.18 	income or adjusted gross income, whichever is greater, in excess of the phaseout threshold, 
298.19 	but. In no case is the credit less than zero.
298.20 	(c) For individuals with one qualifying child, the credit equals 9.35 percent of the first 
298.21 	$11,950 of earned income. The maximum credit allowed is reduced by 6.0 percent of earned 
298.22 	income or adjusted gross income, whichever is greater, in excess of the phaseout threshold, 
298.23 	but. In no case is the credit less than zero.
298.24 	(d) For individuals with two qualifying children, the credit equals 11 percent of the first 
298.25 	$19,600 of earned income. The maximum credit allowed is reduced by 10.5 percent of 
298.26 	earned income or adjusted gross income, whichever is greater, in excess of the phaseout 
298.27 	threshold, but. In no case is the credit less than zero.
298.28 	(e) For individuals with three or more qualifying children, the credit equals 12.5 percent 
298.29 	of the first $20,000 of earned income. The maximum credit allowed is reduced by 10.5 
298.30 	percent of earned income or adjusted gross income, whichever is greater, in excess of the 
298.31 	phaseout threshold, but. In no case is the credit less than zero.
299.1 	(f) For a part-year resident, the credit must be allocated based on the percentage calculated 
299.2 	under section 290.06, subdivision 2c, paragraph (e).
299.3 	(g) For a person who was a resident for the entire tax year and has earned income not 
299.4 	subject to tax under this chapter, including income excluded under section 290.0132, 
299.5 	subdivision 10, the credit must be allocated based on the ratio of federal adjusted gross 
299.6 	income reduced by the earned income not subject to tax under this chapter over federal 
299.7 	adjusted gross income. For purposes of this paragraph, the following clauses are not 
299.8 	considered "earned income not subject to tax under this chapter":
299.9 	(1) the subtractions for military pay under section 290.0132, subdivisions 11 and 12;
299.10 	(2) the exclusion of combat pay under section 112 of the Internal Revenue Code; and
299.11 	(3) income derived from an Indian reservation by an enrolled member of the reservation 
299.12 	while living on the reservation.
299.13 	(h) For the purposes of this section, the phaseout threshold equals:
299.14 	(1) $14,570 for married taxpayers filing joint returns with no qualifying children;
299.15 	(2) $8,730 for all other taxpayers with no qualifying children;
299.16 	(3) $28,610 for married taxpayers filing joint returns with one qualifying child;
299.17 	(4) $22,770 for all other taxpayers with one qualifying child;
299.18 	(5) $32,840 for married taxpayers filing joint returns with two qualifying children;
299.19 	(6) $27,000 for all other taxpayers with two qualifying children;
299.20 	(7) $33,140 for married taxpayers filing joint returns with three or more qualifying 
299.21 	children; and
299.22 	(8) $27,300 for all other taxpayers with three or more qualifying children.
299.23 	(i) The commissioner shall construct tables showing the amount of the credit at various 
299.24 	income levels and make them available to taxpayers. The tables shall follow the schedule 
299.25 	contained in this subdivision, except that the commissioner may graduate the transition 
299.26 	between income brackets.

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

300.1 	Sec. 8. Minnesota Statutes 2022, section 290.0671, subdivision 7, is amended to read:
300.2 		Subd. 7.Inflation adjustment. The commissioner shall annually adjust the earned 
300.3 	income amounts used to calculate the maximum credit and the phase-out thresholds in 
300.4 	subdivision 1 as provided in section 270C.22. The statutory year is taxable year 2019.

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

300.6 	Sec. 9. Minnesota Statutes 2022, section 290.92, subdivision 20, is amended to read:
300.7 		Subd. 20.Miscellaneous withholding arrangements. (a) For purposes of this 
300.8 	subdivision:
300.9 	(1) "periodic payment" means a payment as defined under section 3405(e)(2) of the 
300.10 	Internal Revenue Code;
300.11 	(2) "nonperiodic distribution" means a distribution as defined under section 3405(e)(3) 
300.12 	of the Internal Revenue Code; and
300.13 	(3) "sick pay" means any amount which:
300.14 	(i) is paid to an employee pursuant to a plan to which the employer is a party; and
300.15 	(ii) constitutes remuneration or a payment in lieu of remuneration for any period during 
300.16 	which the employee is temporarily absent from work on account of sickness or personal 
300.17 	injuries.
300.18 	(a) (b) For purposes of this section, any periodic payment or nonperiodic distribution to 
300.19 	an individual as defined under section 3405(e)(2) or (3) of the Internal Revenue Code shall 
300.20 	be treated as if it were a payment of wages by an employer to an employee for a payroll 
300.21 	period, and it is subject to withholding at a rate of 6.25 percent or any rate specified by the 
300.22 	recipient. Any payment to an individual of sick pay which does not constitute wages, 
300.23 	determined without regard to this subdivision, shall be treated as if it were a payment of 
300.24 	wages by an employer to an employee for a payroll period, if, at the time the payment is 
300.25 	made a request that such sick pay be subject to withholding under this section is in effect. 
300.26 	Sick pay means any amount which:
300.27 	(1) is paid to an employee pursuant to a plan to which the employer is a party, and
300.28 	(2) constitutes remuneration or a payment in lieu of remuneration for any period during 
300.29 	which the employee is temporarily absent from work on account of sickness or personal 
300.30 	injuries.
301.1 	(b) (c) A request for withholding, the amount withheld, and sick pay paid pursuant to 
301.2 	certain collective bargaining agreements shall conform with the provisions of section 
301.3 	3402(o)(3), (4), and (5) of the Internal Revenue Code.
301.4 	(c) (d) The commissioner is authorized by rules to provide for withholding:
301.5 	(1) from remuneration for services performed by an employee for the employer which, 
301.6 	without regard to this subdivision, does not constitute wages, and
301.7 	(2) from any other type of payment with respect to which the commissioner finds that 
301.8 	withholding would be appropriate under the provisions of this section, if the employer and 
301.9 	the employee, or in the case of any other type of payment the person making and the person 
301.10 	receiving the payment, agree to such withholding. Such agreement shall be made in such 
301.11 	form and manner as the commissioner may by rules provide. For purposes of this section 
301.12 	remuneration or other payments with respect to which such agreement is made shall be 
301.13 	treated as if they were wages paid by an employer to an employee to the extent that such 
301.14 	remuneration is paid or other payments are made during the period for which the agreement 
301.15 	is in effect.
301.16 	(d) (e) An individual receiving a periodic payment or nonperiodic distribution under 
301.17 	paragraph (a) (b) may elect to have paragraph (a) (b) not apply to the payment or distribution 
301.18 	as follows., and an election remains in effect until revoked by such individual.
301.19 	(1) For payments defined under section 3405(e)(2) of the Internal Revenue Code, an 
301.20 	election remains in effect until revoked by such individual.
301.21 	(2) For distributions defined under section 3405(e)(3) of the Internal Revenue Code, the 
301.22 	election is on a distribution-by-distribution basis.

301.23 	EFFECTIVE DATE; APPLICATION. (a) This section is effective for periodic 
301.24 	payments and nonperiodic distributions made on or after the day following final enactment.
301.25 	(b) For periodic payments and nonperiodic distributions made on or after the day 
301.26 	following final enactment but before January 1, 2024, the commissioner of revenue must 
301.27 	not assess penalties relating to this amendment against a payor who complies with Minnesota 
301.28 	Statutes 2021 Supplement, section 290.92, subdivision 20.

301.29 	Sec. 10. Minnesota Statutes 2022, section 290.9705, subdivision 1, is amended to read:
301.30 		Subdivision 1.Withholding of payments to out-of-state contractors. (a) In this section, 
301.31 	"person" means a person, corporation, or cooperative, the state of Minnesota and its political 
301.32 	subdivisions, and a city, county, and school district in Minnesota.
302.1 	(b) A person who in the regular course of business is hiring, contracting, or having a 
302.2 	contract with a nonresident person or foreign corporation a corporation or cooperative 
302.3 	created or organized outside Minnesota, to perform construction work in Minnesota, shall 
302.4 	deduct and withhold eight percent of payments made to the contractor if the value of the 
302.5 	contract exceeds $50,000.

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

302.7 	Sec. 11. Minnesota Statutes 2022, section 290A.03, subdivision 13, is amended to read:
302.8 		Subd. 13.Property taxes payable. "Property taxes payable" means the property tax 
302.9 	exclusive of special assessments, penalties, and interest payable on a claimant's homestead 
302.10 	after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2, 
302.11 	and any other state paid property tax credits in any calendar year, and after any refund 
302.12 	claimed and allowable under section 290A.04, subdivision 2h, that is first payable in the 
302.13 	year that the property tax is payable. In the case of a claimant who makes ground lease 
302.14 	payments, "property taxes payable" includes the amount of the payments directly attributable 
302.15 	to the property taxes assessed against the parcel on which the house is located. Regardless 
302.16 	of the limitations in section 280A(c)(5) of the Internal Revenue Code, "property taxes 
302.17 	payable" must be apportioned or reduced for the use of a portion of the claimant's homestead 
302.18 	for a business purpose if the claimant deducts any business depreciation expenses for the 
302.19 	use of a portion of the homestead or deducts expenses under section 280A of the Internal 
302.20 	Revenue Code for a business operated in the claimant's homestead. For homesteads which 
302.21 	are manufactured homes as defined in section 273.125, subdivision 8, including manufactured 
302.22 	homes located in a manufactured home community owned by a cooperative organized under 
302.23 	chapter 308A or 308B, and park trailers taxed as manufactured homes under section 168.012, 
302.24 	subdivision 9, "property taxes payable" shall also include 17 percent of the gross rent paid 
302.25 	in the preceding year for the site on which the homestead is located. When a homestead is 
302.26 	owned by two or more persons as joint tenants or tenants in common, such tenants shall 
302.27 	determine between them which tenant may claim the property taxes payable on the 
302.28 	homestead. If they are unable to agree, the matter shall be referred to the commissioner of 
302.29 	revenue whose decision shall be final. Property taxes are considered payable in the year 
302.30 	prescribed by law for payment of the taxes.
302.31 	In the case of a claim relating to "property taxes payable," the claimant must have owned 
302.32 	and occupied the homestead on January 2 of the year in which the tax is payable and (i) the 
302.33 	property must have been classified as homestead property pursuant to section 273.124, on 
302.34 	or before December 15 31 of the assessment year to which the "property taxes payable" 
303.1 	relate; or (ii) the claimant must provide documentation from the local assessor that application 
303.2 	for homestead classification has been made on or before December 15 31 of the year in 
303.3 	which the "property taxes payable" were payable and that the assessor has approved the 
303.4 	application.

303.5 	EFFECTIVE DATE. This section is effective retroactively for refund claims based on 
303.6 	property taxes payable in 2022 and thereafter.

303.7 	ARTICLE 15
303.8 	DEPARTMENT OF REVENUE: FIRE AND POLICE STATE AIDS

303.9 	Section 1. Minnesota Statutes 2022, section 6.495, subdivision 3, is amended to read:
303.10 		Subd. 3.Report Reports to commissioner of revenue. (a) On or before September 15, 
303.11 	November 1, March 1, and June 1, the state auditor shall must file with the commissioner 
303.12 	of revenue a financial compliance report certifying for each relief association:
303.13 	(1) the completion of the annual financial report required under section 424A.014 and 
303.14 	the auditing or certification of those financial reports under subdivision 1; and
303.15 	(2) the receipt of any actuarial valuations required under section 424A.093 or Laws 
303.16 	2013, chapter 111, article 5, sections 31 to 42.
303.17 	(b) The commissioner of revenue shall prescribe the content, format, and manner of the 
303.18 	financial compliance reports required by paragraph (a), pursuant to section 270C.30.

303.19 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
303.20 	and thereafter.

303.21 	Sec. 2. Minnesota Statutes 2022, section 477B.01, is amended by adding a subdivision to 
303.22 	read:
303.23 		Subd. 1a.Apportionment agreement. "Apportionment agreement" means an agreement 
303.24 	between two or more fire departments that provide contracted fire protection service to the 
303.25 	same municipality and establishes the percentage of the population and the percentage of 
303.26 	the estimated market value within the municipality serviced by each fire department.

303.27 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
303.28 	and thereafter.

303.29 	Sec. 3. Minnesota Statutes 2022, section 477B.01, subdivision 5, is amended to read:
303.30 		Subd. 5.Fire department. (a) "Fire department" includes means:
304.1 	(1) a municipal fire department and;
304.2 	(2) an independent nonprofit firefighting corporation.;
304.3 	(3) a fire department established as or operated by a joint powers entity; or
304.4 	(4) a fire protection special taxing district established under chapter 144F or special law.
304.5 	(b) This subdivision only applies to this chapter.

304.6 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
304.7 	and thereafter.

304.8 	Sec. 4. Minnesota Statutes 2022, section 477B.01, is amended by adding a subdivision to 
304.9 	read:
304.10 		Subd. 7a.Joint powers entity. "Joint powers entity" means a joint powers entity created 
304.11 	under section 471.59.

304.12 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
304.13 	and thereafter.

304.14 	Sec. 5. Minnesota Statutes 2022, section 477B.01, subdivision 10, is amended to read:
304.15 		Subd. 10.Municipality. (a) "Municipality" means:
304.16 	(1) a home rule charter or statutory city;
304.17 	(2) an organized town;
304.18 	(3) a park district subject to chapter 398 a joint powers entity;
304.19 	(4) the University of Minnesota a fire protection special taxing district; and or
304.20 	(5) an American Indian tribal government entity located within a federally recognized 
304.21 	American Indian reservation.
304.22 	(b) This subdivision only applies to this chapter 477B.

304.23 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
304.24 	and thereafter.

304.25 	Sec. 6. Minnesota Statutes 2022, section 477B.01, subdivision 11, is amended to read:
304.26 		Subd. 11.Secretary. (a) "Secretary" means:
305.1 	(1) the secretary of an independent nonprofit firefighting corporation that has a subsidiary 
305.2 	incorporated firefighters' relief association or whose firefighters participate in the statewide 
305.3 	volunteer firefighter plan.; or
305.4 	(2) the secretary of a joint powers entity or fire protection special taxing district or, if 
305.5 	there is no such person, the person primarily responsible for managing the finances of a 
305.6 	joint powers entity or fire protection special taxing district.
305.7 	(b) This subdivision only applies to this chapter.

305.8 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
305.9 	and thereafter.

305.10 	Sec. 7. Minnesota Statutes 2022, section 477B.02, subdivision 2, is amended to read:
305.11 		Subd. 2.Establishment of fire department. (a) An independent nonprofit firefighting 
305.12 	corporation must be created under the nonprofit corporation act of this state operating for 
305.13 	the exclusive purpose of firefighting, or the governing body of a municipality must officially 
305.14 	establish a fire department.
305.15 	(b) The fire department must have provided firefighting services for at least one calendar 
305.16 	year, and must have a current fire department identification number issued by the state fire 
305.17 	marshal.

305.18 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
305.19 	and thereafter.

305.20 	Sec. 8. Minnesota Statutes 2022, section 477B.02, subdivision 3, is amended to read:
305.21 		Subd. 3.Personnel and Benefits requirements. (a) A fire department must have a 
305.22 	minimum of ten paid or volunteer firefighters, including a fire chief and assistant fire chief.
305.23 	(b) The fire department must have regular scheduled meetings and frequent drills that 
305.24 	include instructions in firefighting tactics and in the use, care, and operation of all fire 
305.25 	apparatus and equipment.
305.26 	(c) (a) The fire department must have a separate subsidiary incorporated firefighters' 
305.27 	relief association that provides retirement benefits or must participate in the statewide 
305.28 	volunteer firefighter plan; or if the municipality solely employs full-time firefighters as 
305.29 	defined in section 299N.03, subdivision 5, retirement coverage must be provided by the 
305.30 	public employees police and fire retirement plan. For purposes of retirement benefits, a fire 
306.1 	department may be associated with only one volunteer firefighters' relief association or one 
306.2 	account in the voluntary statewide volunteer firefighter retirement plan at one time.
306.3 	(d) (b) Notwithstanding paragraph (c) (a), a municipality without a relief association as 
306.4 	described under section 424A.08, paragraph (a), may still qualify to receive fire state aid if 
306.5 	all other requirements of this section are met.

306.6 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
306.7 	and thereafter.

306.8 	Sec. 9. Minnesota Statutes 2022, section 477B.02, is amended by adding a subdivision to 
306.9 	read:
306.10 		Subd. 4a.Public safety answering point requirement. The fire department must be 
306.11 	dispatched by a public safety answering point as defined in section 403.02, subdivision 19.

306.12 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
306.13 	and thereafter.

306.14 	Sec. 10. Minnesota Statutes 2022, section 477B.02, subdivision 5, is amended to read:
306.15 		Subd. 5.Fire service contract or agreement; apportionment agreement filing 
306.16 	requirement requirements. (a) Every municipality or independent nonprofit firefighting 
306.17 	corporation must file a copy of any duly executed and valid fire service contract or agreement
306.18 	with the commissioner (1) a copy of any duly executed and valid fire service contracts, (2) 
306.19 	written notification of any fire service contract terminations, and (3) written notification of 
306.20 	any dissolution of a fire department, within 60 days of contract execution or termination, 
306.21 	or department dissolution.
306.22 	(b) If more than one fire department provides service to a municipality, the fire 
306.23 	departments furnishing service must enter into an agreement apportioning among themselves 
306.24 	the percentage of the population and the percentage of the estimated market value of each 
306.25 	shared service fire department service area. The agreement must be in writing and must be 
306.26 	filed file an apportionment agreement with the commissioner.
306.27 	(c) When a municipality is a joint powers entity, it must file its joint powers agreement 
306.28 	with the commissioner. If the joint powers agreement does not include sufficient information 
306.29 	defining the fire department service area of the joint powers entity for the purposes of 
306.30 	calculating fire state aid, the secretary must file a written statement with the commissioner 
306.31 	defining the fire department service area.
307.1 	(d) When a municipality is a fire protection special taxing district, it must file its 
307.2 	resolution establishing the fire protection special taxing district, and any agreements required 
307.3 	for the establishment of the fire protection special taxing district, with the commissioner. 
307.4 	If the resolution or agreement does not include sufficient information defining the fire 
307.5 	department service area of the fire protection special taxing district, the secretary must file 
307.6 	a written statement with the commissioner defining the fire department service area.
307.7 	(e) The commissioner shall prescribe the content, format, and manner of the notifications, 
307.8 	apportionment agreements, and written statements under paragraphs (a) to (d), pursuant to 
307.9 	section 270C.30, except that copies of fire service contracts, joint powers agreements, and 
307.10 	resolutions establishing fire protection special taxing districts shall be filed in their existing 
307.11 	form.
307.12 	(f) A document filed with the commissioner under this subdivision must be refiled any 
307.13 	time it is updated within 60 days of the update. An apportionment agreement must be refiled 
307.14 	only when a change in the averaged sum of the percentage of population and percentage of 
307.15 	estimated market value serviced by a fire department subject to the apportionment agreement 
307.16 	is at least one percent. The percentage amount must be rounded to the nearest whole 
307.17 	percentage.
307.18 	(g) Upon the request of the commissioner, the county auditor must provide information 
307.19 	that the commissioner requires to accurately apportion the estimated market value of a fire 
307.20 	department service area for a fire department providing service to an unorganized territory 
307.21 	located in the county.

307.22 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
307.23 	and thereafter.

307.24 	Sec. 11. Minnesota Statutes 2022, section 477B.02, subdivision 8, is amended to read:
307.25 		Subd. 8.PERA certification to commissioner. On or before February 1 each year, if 
307.26 	retirement coverage for a fire department is provided by the statewide volunteer firefighter 
307.27 	plan, the executive director of the Public Employees Retirement Association must certify 
307.28 	the existence of retirement coverage. to the commissioner the fire departments that transferred 
307.29 	retirement coverage to, or terminated participation in, the voluntary statewide volunteer 
307.30 	firefighter retirement plan since the previous certification under this paragraph. This 
307.31 	certification must include the number of active volunteer firefighters under section 477B.03, 
307.32 	subdivision 5, paragraph (e).

308.1 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
308.2 	and thereafter.

308.3 	Sec. 12. Minnesota Statutes 2022, section 477B.02, subdivision 9, is amended to read:
308.4 		Subd. 9.Fire department certification to commissioner. On or before March 15 of 
308.5 	each year, the municipal clerk or the secretary, and the fire chief, must jointly certify to the 
308.6 	commissioner that the fire department exists and meets the qualification requirements of 
308.7 	this section the fire department service area as of December 31 of the previous year, and 
308.8 	that the fire department meets the qualification requirements of this section. The municipal 
308.9 	clerk or the secretary must provide the commissioner with documentation that the 
308.10 	commissioner deems necessary for determining eligibility for fire state aid or for calculating 
308.11 	and apportioning fire state aid under section 477B.03. The certification must be on a form 
308.12 	prescribed by the commissioner and must include all other information that the commissioner 
308.13 	requires. The municipal clerk or the secretary must send a copy of the certification filed 
308.14 	under this subdivision to the fire chief within five business days of the date the certification 
308.15 	was filed with the commissioner.

308.16 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
308.17 	and thereafter.

308.18 	Sec. 13. Minnesota Statutes 2022, section 477B.02, subdivision 10, is amended to read:
308.19 		Subd. 10.Penalty for failure to file or correct certification. (a) If the certification 
308.20 	under subdivision 9 is not filed with the commissioner on or before March 15 1, the 
308.21 	commissioner must notify the municipal clerk or the secretary that a penalty equal to a 
308.22 	portion or all of the current year aid will apply if the certification is not received within ten 
308.23 	days of the postmark date of the notification will be deducted from fire state aid certified 
308.24 	for the current year if the certification is not filed on or before March 15.
308.25 	(b) If the commissioner rejects the certification by the municipal clerk or secretary under 
308.26 	subdivision 9 for inaccurate or incomplete information, the municipal clerk or the secretary 
308.27 	must file a corrective certification after taking corrective action as identified by the 
308.28 	commissioner in the notice of rejection. The corrective certification must be filed within 
308.29 	30 days of the date on the notice of rejection or by March 15, whichever date is later.
308.30 	(b) (c) A penalty applies to (1) a certification under subdivision 9 filed after March 15, 
308.31 	and (2) a corrective certification under paragraph (b) filed after March 15 that is also filed 
308.32 	more than 30 days after the date on the notice of rejection. The penalty for failure to file 
308.33 	the certification under subdivision 9 is equal to the amount of fire state aid determined for 
309.1 	the municipality or the independent nonprofit firefighting corporation for the current year, 
309.2 	multiplied by five ten percent for each week or fraction of a week that the certification or 
309.3 	corrective certification is late filed after March 15 or more than 30 days after the date on 
309.4 	the notice of rejection. The penalty must be computed beginning ten days after the postmark 
309.5 	date of the commissioner's notification. Aid amounts forfeited as a result of the penalty 
309.6 	revert to the state general fund. Failure to receive the certification form is not a defense for 
309.7 	a failure to file.

309.8 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
309.9 	and thereafter.

309.10 	Sec. 14. Minnesota Statutes 2022, section 477B.03, subdivision 2, is amended to read:
309.11 		Subd. 2.Apportionment of fire state aid. (a) The amount of fire state aid available for 
309.12 	apportionment, before the addition of the minimum fire state aid allocation amount under 
309.13 	subdivision 5, is equal to 107 percent of the amount of premium taxes paid to the state upon 
309.14 	the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the 
309.15 	commissioner by companies or insurance companies on the Minnesota Fire Premium Report, 
309.16 	except that credits claimed under section 297I.20, subdivisions 3, 4, and 5, do not affect the 
309.17 	calculation of the amount of fire state aid available for apportionment. This amount must 
309.18 	be reduced by the amount required to pay the state auditor's costs and expenses of the audits 
309.19 	or exams of the firefighters' relief associations.
309.20 	(b) The total amount available for apportionment must not be less than two percent of 
309.21 	the premiums less return premiums reported to the commissioner by companies or insurance 
309.22 	companies on the Minnesota Fire Premium Report after subtracting the following amounts:
309.23 	(1) the amount required to pay the state auditor's costs and expenses of the audits or 
309.24 	exams of the firefighters' relief associations; and
309.25 	(2) one percent of the premiums reported by township mutual insurance companies and 
309.26 	mutual property and casualty companies with total assets of $5,000,000 or less.
309.27 	(c) The commissioner must apportion the fire state aid to each municipality or independent 
309.28 	nonprofit firefighting corporation qualified under section 477B.02 relative to the premiums 
309.29 	reported on the Minnesota Fire Premium Reports filed under this chapter.
309.30 	(d) The commissioner must calculate the percentage of increase or decrease reflected in 
309.31 	the apportionment over or under the previous year's available state aid using the same 
309.32 	premiums as a basis for comparison.

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

310.1 	Sec. 15. Minnesota Statutes 2022, section 477B.03, subdivision 3, is amended to read:
310.2 		Subd. 3.Population and estimated market value. (a) Official statewide federal census 
310.3 	figures The most recent population estimates made by the state demographer pursuant to 
310.4 	section 4A.02, paragraph (d), must be used in calculations requiring the use of population 
310.5 	figures under this chapter. Increases or decreases in population disclosed by reason of any 
310.6 	special census must not be taken into consideration.
310.7 	(b) The latest available estimated market value property figures for the assessment year 
310.8 	immediately preceding the year the aid is distributed must be used in calculations requiring 
310.9 	the use of estimated market value property figures under this chapter.

310.10 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
310.11 	and thereafter.

310.12 	Sec. 16. Minnesota Statutes 2022, section 477B.03, subdivision 4, is amended to read:
310.13 		Subd. 4.Initial fire state aid allocation amount. (a) The initial fire state aid allocation 
310.14 	amount is the amount available for apportionment as fire state aid under subdivision 2, 
310.15 	without the inclusion of any additional funding amount to support a minimum fire state aid 
310.16 	amount under section 423A.02, subdivision 3. The initial fire state aid allocation amount 
310.17 	is allocated one-half in proportion to the population for each fire department service area 
310.18 	and one-half in proportion to the estimated market value of each fire department service 
310.19 	area, including (1) the estimated market value of tax-exempt property, and (2) the estimated 
310.20 	market value of natural resources lands receiving in lieu payments under sections 477A.11 
310.21 	to 477A.14 and 477A.17. The estimated market value of minerals is excluded.
310.22 	(b) In the case of a municipality or independent nonprofit firefighting corporation 
310.23 	furnishing fire protection to other municipalities as evidenced by valid fire service contracts, 
310.24 	joint powers agreements, resolutions, and other supporting documents filed with the 
310.25 	commissioner under section 477B.02, subdivision 5, the distribution must be adjusted 
310.26 	proportionately to take into consideration the crossover fire protection service. Necessary 
310.27 	adjustments must be made to subsequent apportionments.
310.28 	(c) In the case of municipalities or independent nonprofit firefighting corporations 
310.29 	qualifying for aid, the commissioner must calculate the state aid for the municipality or 
310.30 	independent nonprofit firefighting corporation on the basis of the population and the estimated 
310.31 	market value of the area furnished fire protection service by the fire department as evidenced 
310.32 	by valid fire service agreements contracts, joint powers agreements, resolutions, and other 
310.33 	supporting documents filed with the commissioner under section 477B.02, subdivision 5.
311.1 	(d) In the case of more than one fire department furnishing contracted fire service to a 
311.2 	municipality, the population and estimated market value in the apportionment agreement 
311.3 	filed with the commissioner under section 477B.02, subdivision 5, must be used in calculating 
311.4 	the state aid.

311.5 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
311.6 	and thereafter.

311.7 	Sec. 17. Minnesota Statutes 2022, section 477B.03, subdivision 5, is amended to read:
311.8 		Subd. 5.Minimum fire state aid allocation amount. (a) The minimum fire state aid 
311.9 	allocation amount is the amount derived from any additional funding amount to support a 
311.10 	minimum fire state aid amount under section 423A.02, subdivision 3. The minimum fire 
311.11 	state aid allocation amount is allocated to municipalities or independent nonprofit firefighting 
311.12 	corporations with volunteer firefighters' relief associations or covered by the statewide 
311.13 	volunteer firefighter plan. The amount is based on the number of active volunteer firefighters 
311.14 	who are (1) members of the relief association as reported to the Office of the State Auditor 
311.15 	in a specific annual financial reporting year as specified in paragraphs (b) to (d), or (2) 
311.16 	covered by the statewide volunteer firefighter plan as specified in paragraph (e).
311.17 	(b) For relief associations established in calendar year 1993 or a prior year, the number 
311.18 	of active volunteer firefighters equals the number of active volunteer firefighters who were 
311.19 	members of the relief association as reported in the annual financial reporting for calendar 
311.20 	year 1993, but not to exceed 30 active volunteer firefighters.
311.21 	(c) For relief associations established in calendar year 1994 through calendar year 1999, 
311.22 	the number of active volunteer firefighters equals the number of active volunteer firefighters 
311.23 	who were members of the relief association as reported in the annual financial reporting for 
311.24 	calendar year 1998 to the Office of the State Auditor, but not to exceed 30 active volunteer 
311.25 	firefighters.
311.26 	(d) For relief associations established after calendar year 1999, the number of active 
311.27 	volunteer firefighters equals the number of active volunteer firefighters who are members 
311.28 	of the relief association as reported in the first annual financial reporting submitted to the 
311.29 	Office of the State Auditor, but not to exceed 20 active volunteer firefighters.
311.30 	(e) If a relief association is terminated as a result of For a municipality or independent 
311.31 	nonprofit firefighting corporation that is providing retirement coverage for volunteer 
311.32 	firefighters by the statewide volunteer firefighter plan under chapter 353G, the number of 
311.33 	active volunteer firefighters equals the number of active volunteer firefighters of the 
312.1 	municipality or independent nonprofit firefighting corporation covered by the statewide 
312.2 	plan as certified by the executive director of the Public Employees Retirement Association 
312.3 	to the commissioner and the state auditor within 30 days of the date the municipality or 
312.4 	independent nonprofit firefighting corporation begins coverage in the plan, but not to exceed 
312.5 	30 active firefighters.

312.6 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
312.7 	and thereafter.

312.8 	Sec. 18. Minnesota Statutes 2022, section 477B.03, subdivision 7, is amended to read:
312.9 		Subd. 7.Appeal. A municipality, an independent nonprofit firefighting corporation, a 
312.10 	fire relief association, or the statewide volunteer firefighter plan may object to the amount 
312.11 	of fire state aid apportioned to it by filing a written request with the commissioner to review 
312.12 	and adjust the apportionment of funds within the state. The objection of a municipality, an 
312.13 	independent nonprofit firefighting corporation, a fire relief association, or the voluntary 
312.14 	statewide volunteer firefighter retirement plan must be filed with the commissioner within 
312.15 	60 days of the date the amount of apportioned fire state aid is paid. The decision of the 
312.16 	commissioner is subject to appeal, review, and adjustment by the district court in the county 
312.17 	in which the applicable municipality or independent nonprofit firefighting corporation is 
312.18 	located or by the Ramsey County District Court with respect to the statewide volunteer 
312.19 	firefighter plan.

312.20 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
312.21 	and thereafter.

312.22 	Sec. 19. Minnesota Statutes 2022, section 477B.04, subdivision 1, is amended to read:
312.23 		Subdivision 1.Payments. (a) The commissioner must make payments to the Public 
312.24 	Employees Retirement Association for deposit in the statewide volunteer firefighter fund 
312.25 	on behalf of a municipality or independent nonprofit firefighting corporation that is a member 
312.26 	of the statewide volunteer firefighter plan under chapter 353G, or directly to a municipality 
312.27 	or county designated by an independent nonprofit firefighting corporation. The commissioner 
312.28 	must directly pay all other municipalities qualifying for fire state aid, except as provided in 
312.29 	paragraph (d). The payment is equal to the amount of fire state aid apportioned to the 
312.30 	applicable fire state aid recipient under section 477B.03.
312.31 	(b) Fire state aid is payable on October 1 annually. The amount of state aid due and not 
312.32 	paid by October 1 accrues interest payable to the recipient at the rate of one percent for each 
312.33 	month or part of a month that the amount remains unpaid after October 1.
313.1 	(c) If the commissioner of revenue does not receive a financial compliance report 
313.2 	described in section 6.495, subdivision 3, for a relief association, the amount of fire state 
313.3 	aid apportioned to a municipality or independent nonprofit firefighting corporation under 
313.4 	section 477B.03 for that relief association must be withheld from payment to the Public 
313.5 	Employees Retirement Association or the municipality. The commissioner of revenue must 
313.6 	issue a withheld payment within ten business days of receipt of a financial compliance report 
313.7 	under section 6.495, subdivision 3. The interest under paragraph (b) does not apply when
313.8 	to a payment has not been made by October 1 due to noncompliance with sections 424A.014
313.9 	and 477B.02, subdivision 7 withheld under this paragraph.
313.10 	(d) The commissioner must make payments directly to the largest municipality in 
313.11 	population located within any area included in a joint powers entity that does not have a 
313.12 	designated agency under section 471.59, subdivision 3, or within the fire department service 
313.13 	area of an eligible independent nonprofit firefighting corporation. If there is no city or town 
313.14 	within the fire department service area of an eligible independent nonprofit firefighting 
313.15 	corporation, fire state aid must be paid to the county where the independent nonprofit 
313.16 	firefighting corporation is located.

313.17 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
313.18 	and thereafter.

313.19 	Sec. 20. Minnesota Statutes 2022, section 477B.04, is amended by adding a subdivision 
313.20 	to read:
313.21 		Subd. 4.Aid amount corrections. (a) An adjustment needed to correct a fire state aid 
313.22 	overpayment or underpayment due to a clerical error must be made to subsequent fire state 
313.23 	aid payments as provided in paragraphs (b) and (c). The authority to correct an aid payment 
313.24 	under this subdivision is limited to three years after the payment was issued.
313.25 	(b) If an overpayment equals more than ten percent of the most recently paid aid amount, 
313.26 	the commissioner must reduce the aid a municipality or independent nonprofit firefighting 
313.27 	corporation is to receive by the amount overpaid over a period of no more than three years. 
313.28 	If an overpayment equals or is less than ten percent of the most recently paid aid amount, 
313.29 	the commissioner must reduce the next aid payment occurring in 30 days or more by the 
313.30 	amount overpaid.
313.31 	(c) In the event of an underpayment, the commissioner must distribute the amount of 
313.32 	underpaid funds to the municipality or independent nonprofit firefighting corporation over 
313.33 	a period of no more than three years. An additional distribution to a municipality or 
313.34 	independent nonprofit firefighting corporation must be paid from the general fund and must 
314.1 	not diminish the payments made to other municipalities or independent nonprofit firefighting 
314.2 	corporations under this chapter.

314.3 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
314.4 	and thereafter.

314.5 	Sec. 21. Minnesota Statutes 2022, section 477C.02, subdivision 4, is amended to read:
314.6 		Subd. 4.Penalty for failure to file or correct certification. (a) If a certification under 
314.7 	subdivision 1 or 2 is not filed with the commissioner on or before March 15 1, the 
314.8 	commissioner must notify the municipal clerk, municipal clerk-treasurer, or county auditor 
314.9 	that a penalty equal to a portion or all of its current year aid will apply if the certification 
314.10 	is not received within ten days will be deducted from police state aid certified for the current 
314.11 	year if the certification is not filed on or before March 15.
314.12 	(b) If the commissioner rejects the certification under subdivision 1 or 2 for inaccurate 
314.13 	or incomplete information, the municipal clerk, municipal clerk-treasurer, or county auditor 
314.14 	must file a corrective certification after taking corrective action as identified by the 
314.15 	commissioner in the notice of rejection. The corrective certification must be filed within 
314.16 	30 days of the date on the notice of rejection, or by March 15, whichever date is later.
314.17 	(b) (c) A penalty applies to (1) a certification under subdivisions 1 and 2 filed after 
314.18 	March 15, and (2) a corrective certification under paragraph (b) filed after March 15 that 
314.19 	is also filed more than 30 days after the date on the notice of rejection. The penalty for 
314.20 	failure to file the certification under subdivision 1 or 2 is equal to the amount of police state 
314.21 	aid determined for the municipality for the current year, multiplied by five ten percent for 
314.22 	each week or fraction of a week that the certification or corrective certification is late filed 
314.23 	after March 15 or more than 30 days after the date on the notice of rejection. The penalty 
314.24 	must be computed beginning ten days after the postmark date of the commissioner's 
314.25 	notification as required under this subdivision. All aid amounts forfeited as a result of the 
314.26 	penalty revert to the state general fund. Failure to receive the certification form may not be 
314.27 	used as a defense for a failure to file.

314.28 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
314.29 	and thereafter.

314.30 	Sec. 22. Minnesota Statutes 2022, section 477C.03, subdivision 2, is amended to read:
314.31 		Subd. 2.Apportionment of police state aid. (a) The total amount available for 
314.32 	apportionment as police state aid is equal to 104 percent of the amount of premium taxes 
315.1 	paid to the state on the premiums reported to the commissioner by companies or insurance 
315.2 	companies on the Minnesota Aid to Police Premium Report, except that credits claimed 
315.3 	under section 297I.20, subdivisions 3, 4, and 5, do not affect the calculation of the total 
315.4 	amount of police state aid available for apportionment. The total amount for apportionment 
315.5 	for the police state aid program must not be less than two percent of the amount of premiums 
315.6 	reported to the commissioner by companies or insurance companies on the Minnesota Aid 
315.7 	to Police Premium Report.
315.8 	(b) The commissioner must calculate the percentage of increase or decrease reflected in 
315.9 	the apportionment over or under the previous year's available state aid using the same 
315.10 	premiums as a basis for comparison.
315.11 	(c) In addition to the amount for apportionment of police state aid under paragraph (a), 
315.12 	each year $100,000 must be apportioned for police state aid. An amount sufficient to pay 
315.13 	this increase is annually appropriated from the general fund.
315.14 	(d) The commissioner must apportion police state aid to all municipalities in proportion 
315.15 	to the relationship that the total number of peace officers employed by that municipality for 
315.16 	the prior calendar year and the proportional or fractional number who were employed less 
315.17 	than a calendar year as credited under section 477C.02, subdivision 1, paragraph (c), bears 
315.18 	to the total number of peace officers employed by all municipalities subject to any reduction 
315.19 	under subdivision 3.
315.20 	(e) Any necessary additional adjustments must be made to subsequent police state aid 
315.21 	apportionments.

315.22 	EFFECTIVE DATE. (a) The amendment to paragraph (a) is effective the day following 
315.23 	final enactment.
315.24 	(b) The amendment striking paragraph (e) is effective for aids payable in calendar year 
315.25 	2024 and thereafter.

315.26 	Sec. 23. Minnesota Statutes 2022, section 477C.03, subdivision 5, is amended to read:
315.27 		Subd. 5.Appeal. A municipality may object to the amount of police state aid apportioned 
315.28 	to it by filing a written request with the commissioner to review and adjust the apportionment 
315.29 	of funds to the municipality. The objection of a municipality must be filed with the 
315.30 	commissioner within 60 days of the date the amount of apportioned police state aid is paid.
315.31 	The decision of the commissioner is subject to appeal, review, and adjustment by the district 
315.32 	court in the county in which the applicable municipality is located or by the Ramsey County 
315.33 	District Court with respect to the Departments of Natural Resources or Public Safety.

316.1 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
316.2 	and thereafter.

316.3 	Sec. 24. Minnesota Statutes 2022, section 477C.04, is amended by adding a subdivision 
316.4 	to read:
316.5 		Subd. 4.Aid amount corrections. (a) An adjustment needed to correct a police state 
316.6 	aid overpayment or underpayment due to a clerical error must be made to subsequent police 
316.7 	state aid payments as provided in paragraphs (b) and (c). The authority to correct an aid 
316.8 	payment under this subdivision is limited to three years after the payment was issued.
316.9 	(b) If an overpayment equals more than ten percent of the most recently paid aid amount, 
316.10 	the commissioner must reduce the aid a municipality is to receive by the amount overpaid 
316.11 	over a period of no more than three years. If an overpayment equals or is less than ten 
316.12 	percent of the most recently paid aid amount, the commissioner must reduce the next aid 
316.13 	payment occurring in 30 days or more by the amount overpaid.
316.14 	(c) In the event of an underpayment, the commissioner must distribute the amount of 
316.15 	underpaid funds to the municipality over a period of no more than three years. An additional 
316.16 	distribution to a municipality must be paid from the general fund and must not diminish the 
316.17 	payments made to other municipalities under this chapter.

316.18 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
316.19 	and thereafter.

316.20 	Sec. 25. REPEALER.
 316.21 	Minnesota Statutes 2022, sections 477B.02, subdivision 4; and 477B.03, subdivision 6,
316.22 	are repealed.

316.23 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2024 
316.24 	and thereafter.

316.25 	ARTICLE 16
316.26 	DEPARTMENT OF REVENUE: DATA PRACTICES

316.27 	Section 1. Minnesota Statutes 2022, section 13.46, subdivision 2, is amended to read:
316.28 		Subd. 2.General. (a) Data on individuals collected, maintained, used, or disseminated 
316.29 	by the welfare system are private data on individuals, and shall not be disclosed except:
316.30 	(1) according to section 13.05;
317.1 	(2) according to court order;
317.2 	(3) according to a statute specifically authorizing access to the private data;
317.3 	(4) to an agent of the welfare system and an investigator acting on behalf of a county, 
317.4 	the state, or the federal government, including a law enforcement person or attorney in the 
317.5 	investigation or prosecution of a criminal, civil, or administrative proceeding relating to the 
317.6 	administration of a program;
317.7 	(5) to personnel of the welfare system who require the data to verify an individual's 
317.8 	identity; determine eligibility, amount of assistance, and the need to provide services to an 
317.9 	individual or family across programs; coordinate services for an individual or family; 
317.10 	evaluate the effectiveness of programs; assess parental contribution amounts; and investigate 
317.11 	suspected fraud;
317.12 	(6) to administer federal funds or programs;
317.13 	(7) between personnel of the welfare system working in the same program;
317.14 	(8) to the Department of Revenue to assess parental contribution amounts for purposes 
317.15 	of section 252.27, subdivision 2a, administer and evaluate tax refund or tax credit programs 
317.16 	and to identify individuals who may benefit from these programs, and prepare the databases 
317.17 	for reports required under section 270C.13 and Laws 2008, chapter 366, article 17, section 
317.18 	6. The following information may be disclosed under this paragraph: an individual's and 
317.19 	their dependent's names, dates of birth, Social Security numbers, income, addresses, and 
317.20 	other data as required, upon request by the Department of Revenue. Disclosures by the 
317.21 	commissioner of revenue to the commissioner of human services for the purposes described 
317.22 	in this clause are governed by section 270B.14, subdivision 1. Tax refund or tax credit 
317.23 	programs include, but are not limited to, the dependent care credit under section 290.067, 
317.24 	the Minnesota working family credit under section 290.0671, the property tax refund and 
317.25 	rental credit under section 290A.04, and the Minnesota education credit under section 
317.26 	290.0674;
317.27 	(9) between the Department of Human Services, the Department of Employment and 
317.28 	Economic Development, and when applicable, the Department of Education, for the following 
317.29 	purposes:
317.30 	(i) to monitor the eligibility of the data subject for unemployment benefits, for any 
317.31 	employment or training program administered, supervised, or certified by that agency;
317.32 	(ii) to administer any rehabilitation program or child care assistance program, whether 
317.33 	alone or in conjunction with the welfare system;
318.1 	(iii) to monitor and evaluate the Minnesota family investment program or the child care 
318.2 	assistance program by exchanging data on recipients and former recipients of Supplemental 
318.3 	Nutrition Assistance Program (SNAP) benefits, cash assistance under chapter 256, 256D, 
318.4 	256J, or 256K, child care assistance under chapter 119B, medical programs under chapter 
318.5 	256B or 256L, or a medical program formerly codified under chapter 256D; and
318.6 	(iv) to analyze public assistance employment services and program utilization, cost, 
318.7 	effectiveness, and outcomes as implemented under the authority established in Title II, 
318.8 	Sections 201-204 of the Ticket to Work and Work Incentives Improvement Act of 1999. 
318.9 	Health records governed by sections 144.291 to 144.298 and "protected health information" 
318.10 	as defined in Code of Federal Regulations, title 45, section 160.103, and governed by Code 
318.11 	of Federal Regulations, title 45, parts 160-164, including health care claims utilization 
318.12 	information, must not be exchanged under this clause;
318.13 	(10) to appropriate parties in connection with an emergency if knowledge of the 
318.14 	information is necessary to protect the health or safety of the individual or other individuals 
318.15 	or persons;
318.16 	(11) data maintained by residential programs as defined in section 245A.02 may be 
318.17 	disclosed to the protection and advocacy system established in this state according to Part 
318.18 	C of Public Law 98-527 to protect the legal and human rights of persons with developmental 
318.19 	disabilities or other related conditions who live in residential facilities for these persons if 
318.20 	the protection and advocacy system receives a complaint by or on behalf of that person and 
318.21 	the person does not have a legal guardian or the state or a designee of the state is the legal 
318.22 	guardian of the person;
318.23 	(12) to the county medical examiner or the county coroner for identifying or locating 
318.24 	relatives or friends of a deceased person;
318.25 	(13) data on a child support obligor who makes payments to the public agency may be 
318.26 	disclosed to the Minnesota Office of Higher Education to the extent necessary to determine 
318.27 	eligibility under section 136A.121, subdivision 2, clause (5);
318.28 	(14) participant Social Security numbers and names collected by the telephone assistance 
318.29 	program may be disclosed to the Department of Revenue to conduct an electronic data 
318.30 	match with the property tax refund database to determine eligibility under section 237.70, 
318.31 	subdivision 4a;
318.32 	(15) the current address of a Minnesota family investment program participant may be 
318.33 	disclosed to law enforcement officers who provide the name of the participant and notify 
318.34 	the agency that:
319.1 	(i) the participant:
319.2 	(A) is a fugitive felon fleeing to avoid prosecution, or custody or confinement after 
319.3 	conviction, for a crime or attempt to commit a crime that is a felony under the laws of the 
319.4 	jurisdiction from which the individual is fleeing; or
319.5 	(B) is violating a condition of probation or parole imposed under state or federal law;
319.6 	(ii) the location or apprehension of the felon is within the law enforcement officer's 
319.7 	official duties; and
319.8 	(iii) the request is made in writing and in the proper exercise of those duties;
319.9 	(16) the current address of a recipient of general assistance may be disclosed to probation 
319.10 	officers and corrections agents who are supervising the recipient and to law enforcement 
319.11 	officers who are investigating the recipient in connection with a felony level offense;
319.12 	(17) information obtained from a SNAP applicant or recipient households may be 
319.13 	disclosed to local, state, or federal law enforcement officials, upon their written request, for 
319.14 	the purpose of investigating an alleged violation of the Food and Nutrition Act, according 
319.15 	to Code of Federal Regulations, title 7, section 272.1(c);
319.16 	(18) the address, Social Security number, and, if available, photograph of any member 
319.17 	of a household receiving SNAP benefits shall be made available, on request, to a local, state, 
319.18 	or federal law enforcement officer if the officer furnishes the agency with the name of the 
319.19 	member and notifies the agency that:
319.20 	(i) the member:
319.21 	(A) is fleeing to avoid prosecution, or custody or confinement after conviction, for a 
319.22 	crime or attempt to commit a crime that is a felony in the jurisdiction the member is fleeing;
319.23 	(B) is violating a condition of probation or parole imposed under state or federal law; 
319.24 	or
319.25 	(C) has information that is necessary for the officer to conduct an official duty related 
319.26 	to conduct described in subitem (A) or (B);
319.27 	(ii) locating or apprehending the member is within the officer's official duties; and
319.28 	(iii) the request is made in writing and in the proper exercise of the officer's official duty;
319.29 	(19) the current address of a recipient of Minnesota family investment program, general 
319.30 	assistance, or SNAP benefits may be disclosed to law enforcement officers who, in writing, 
319.31 	provide the name of the recipient and notify the agency that the recipient is a person required 
320.1 	to register under section 243.166, but is not residing at the address at which the recipient is 
320.2 	registered under section 243.166;
320.3 	(20) certain information regarding child support obligors who are in arrears may be 
320.4 	made public according to section 518A.74;
320.5 	(21) data on child support payments made by a child support obligor and data on the 
320.6 	distribution of those payments excluding identifying information on obligees may be 
320.7 	disclosed to all obligees to whom the obligor owes support, and data on the enforcement 
320.8 	actions undertaken by the public authority, the status of those actions, and data on the income 
320.9 	of the obligor or obligee may be disclosed to the other party;
320.10 	(22) data in the work reporting system may be disclosed under section 256.998, 
320.11 	subdivision 7;
320.12 	(23) to the Department of Education for the purpose of matching Department of Education 
320.13 	student data with public assistance data to determine students eligible for free and 
320.14 	reduced-price meals, meal supplements, and free milk according to United States Code, 
320.15 	title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to allocate federal and state 
320.16 	funds that are distributed based on income of the student's family; and to verify receipt of 
320.17 	energy assistance for the telephone assistance plan;
320.18 	(24) the current address and telephone number of program recipients and emergency 
320.19 	contacts may be released to the commissioner of health or a community health board as 
320.20 	defined in section 145A.02, subdivision 5, when the commissioner or community health 
320.21 	board has reason to believe that a program recipient is a disease case, carrier, suspect case, 
320.22 	or at risk of illness, and the data are necessary to locate the person;
320.23 	(25) to other state agencies, statewide systems, and political subdivisions of this state, 
320.24 	including the attorney general, and agencies of other states, interstate information networks, 
320.25 	federal agencies, and other entities as required by federal regulation or law for the 
320.26 	administration of the child support enforcement program;
320.27 	(26) to personnel of public assistance programs as defined in section 256.741, for access 
320.28 	to the child support system database for the purpose of administration, including monitoring 
320.29 	and evaluation of those public assistance programs;
320.30 	(27) to monitor and evaluate the Minnesota family investment program by exchanging 
320.31 	data between the Departments of Human Services and Education, on recipients and former 
320.32 	recipients of SNAP benefits, cash assistance under chapter 256, 256D, 256J, or 256K, child 
321.1 	care assistance under chapter 119B, medical programs under chapter 256B or 256L, or a 
321.2 	medical program formerly codified under chapter 256D;
321.3 	(28) to evaluate child support program performance and to identify and prevent fraud 
321.4 	in the child support program by exchanging data between the Department of Human Services, 
321.5 	Department of Revenue under section 270B.14, subdivision 1, paragraphs (a) and (b), 
321.6 	without regard to the limitation of use in paragraph (c), Department of Health, Department 
321.7 	of Employment and Economic Development, and other state agencies as is reasonably 
321.8 	necessary to perform these functions;
321.9 	(29) counties and the Department of Human Services operating child care assistance 
321.10 	programs under chapter 119B may disseminate data on program participants, applicants, 
321.11 	and providers to the commissioner of education;
321.12 	(30) child support data on the child, the parents, and relatives of the child may be 
321.13 	disclosed to agencies administering programs under titles IV-B and IV-E of the Social 
321.14 	Security Act, as authorized by federal law;
321.15 	(31) to a health care provider governed by sections 144.291 to 144.298, to the extent 
321.16 	necessary to coordinate services;
321.17 	(32) to the chief administrative officer of a school to coordinate services for a student 
321.18 	and family; data that may be disclosed under this clause are limited to name, date of birth, 
321.19 	gender, and address;
321.20 	(33) to county correctional agencies to the extent necessary to coordinate services and 
321.21 	diversion programs; data that may be disclosed under this clause are limited to name, client 
321.22 	demographics, program, case status, and county worker information; or
321.23 	(34) between the Department of Human Services and the Metropolitan Council for the 
321.24 	following purposes:
321.25 	(i) to coordinate special transportation service provided under section 473.386 with 
321.26 	services for people with disabilities and elderly individuals funded by or through the 
321.27 	Department of Human Services; and
321.28 	(ii) to provide for reimbursement of special transportation service provided under section 
321.29 	473.386.
321.30 	The data that may be shared under this clause are limited to the individual's first, last, and 
321.31 	middle names; date of birth; residential address; and program eligibility status with expiration 
321.32 	date for the purposes of informing the other party of program eligibility.
322.1 	(b) Information on persons who have been treated for drug or alcohol abuse may only 
322.2 	be disclosed according to the requirements of Code of Federal Regulations, title 42, sections 
322.3 	2.1 to 2.67.
322.4 	(c) Data provided to law enforcement agencies under paragraph (a), clause (15), (16), 
322.5 	(17), or (18), or paragraph (b), are investigative data and are confidential or protected 
322.6 	nonpublic while the investigation is active. The data are private after the investigation 
322.7 	becomes inactive under section 13.82, subdivision 7, clause (a) or (b).
322.8 	(d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but are 
322.9 	not subject to the access provisions of subdivision 10, paragraph (b).
322.10 	For the purposes of this subdivision, a request will be deemed to be made in writing if 
322.11 	made through a computer interface system.

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

322.13 	Sec. 2. Minnesota Statutes 2022, section 270C.13, subdivision 1, is amended to read:
322.14 		Subdivision 1.Biennial report. (a) The commissioner shall report to the legislature on 
322.15 	the overall incidence of the income tax, sales and excise taxes, and property tax.
322.16 	(b) The commissioner must submit the report:
322.17 	(1) by March 1, 2021; and
322.18 	(2) by March 1, 2024, and each even-numbered year thereafter.
322.19 	(c) The report shall present information on the distribution of the tax burden as follows: 
322.20 	(1) for the overall income distribution, using a systemwide incidence measure such as the 
322.21 	Suits index or other appropriate measures of equality and inequality; (2) by income classes, 
322.22 	including at a minimum deciles of the income distribution; and (3) by other appropriate 
322.23 	taxpayer characteristics.
322.24 	(d) The commissioner may request information from any state officer or agency to assist 
322.25 	in carrying out this section. The state officer or agency shall provide the data requested to 
322.26 	the extent permitted by law.

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

323.1 	Sec. 3. Minnesota Statutes 2022, section 270C.446, subdivision 2, is amended to read:
323.2 		Subd. 2.Required and excluded tax preparers. (a) Subject to the limitations of 
323.3 	paragraph (b), the commissioner must publish lists of tax preparers as defined in section 
323.4 	270C.445, subdivision 2, paragraph (h), who have been:
323.5 	(1) convicted under section 289A.63;
323.6 	(2) assessed penalties in excess of $1,000 under section 289A.60, subdivision 13, 
323.7 	paragraph (a);
323.8 	(3) convicted for identity theft under section 609.527, or a similar statute, for a return 
323.9 	filed with the commissioner, the Internal Revenue Service, or another state;
323.10 	(4) assessed a penalty under section 270C.445, subdivision 6, paragraph (a), in excess 
323.11 	of $1,000;
323.12 	(5) issued a cease and desist order under section 270C.445, subdivision 6, paragraph 
323.13 	(b), that has become a final order; or
323.14 	(6) assessed a penalty under section 270C.445, subdivision 6, paragraph (l), for violating 
323.15 	a cease and desist order.; or
323.16 	(7) assessed a penalty under section 289A.60, subdivision 28, paragraph (c), or (d), in 
323.17 	excess of $1,000.
323.18 	(b) For the purposes of this section, tax preparers are not subject to publication if:
323.19 	(1) an administrative or court action contesting or appealing a penalty described in 
323.20 	paragraph (a), clause (2), (4), or (6), has been filed or served and is unresolved at the time 
323.21 	when notice would be given under subdivision 3;
323.22 	(2) an appeal period to contest a penalty described in paragraph (a), clause (2), (4), or 
323.23 	(6), has not expired;
323.24 	(3) the commissioner has been notified that the tax preparer is deceased;
323.25 	(4) an appeal period to contest a cease and desist order issued under section 270C.445, 
323.26 	subdivision 6, paragraph (b), has not expired;
323.27 	(5) an administrative or court action contesting or appealing a cease and desist order 
323.28 	issued under section 270C.445, subdivision 6, paragraph (b), has been filed or served and 
323.29 	is unresolved at the time when notice would be given under subdivision 3;
324.1 	(6) a direct appeal of a conviction described in paragraph (a), clause (1) or (3), has been 
324.2 	filed or served and is unresolved at the time when the notice would be given under 
324.3 	subdivision 3; or
324.4 	(7) an appeal period to contest a conviction described in paragraph (a), clause (1) or (3), 
324.5 	has not expired.

324.6 	EFFECTIVE DATE. This section is effective for returns filed after December 31, 2023.

324.7 	Sec. 4. Minnesota Statutes 2022, section 290A.19, is amended to read:
324.8 	290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE.
324.9 	(a) The owner or managing agent of any property for which rent is paid for occupancy 
324.10 	as a homestead must furnish a certificate of rent paid to a person who is a renter on December 
324.11 	31, in the form prescribed by the commissioner. If the renter moves before December 31, 
324.12 	the owner or managing agent may give the certificate to the renter at the time of moving, 
324.13 	or mail the certificate to the forwarding address if an address has been provided by the 
324.14 	renter. The certificate must be made available to the renter before February 1 of the year 
324.15 	following the year in which the rent was paid. The owner or managing agent must retain a 
324.16 	duplicate of each certificate or an equivalent record showing the same information for a 
324.17 	period of three years. The duplicate or other record must be made available to the 
324.18 	commissioner upon request.
324.19 	(b) The commissioner may require the owner or managing agent, through a simple 
324.20 	process, to furnish to the commissioner on or before March 1 a copy of each certificate of 
324.21 	rent paid furnished to a renter for rent paid in the prior year. The commissioner shall prescribe 
324.22 	the content, format, and manner of the form pursuant to section 270C.30. The commissioner 
324.23 	may require the Social Security number, individual taxpayer identification number, federal 
324.24 	employer identification number, or Minnesota taxpayer identification number of the owner 
324.25 	or managing agent who is required to furnish a certificate of rent paid under this paragraph. 
324.26 	Prior to implementation, the commissioner, after consulting with representatives of owners 
324.27 	or managing agents, shall develop an implementation and administration plan for the 
324.28 	requirements of this paragraph that attempts to minimize financial burdens, administration 
324.29 	and compliance costs, and takes into consideration existing systems of owners and managing 
324.30 	agents.
324.31 	(c) For the purposes of this section, "owner" includes a park owner as defined under 
324.32 	section 327C.015, subdivision 9, and "property" includes a lot as defined under section 
324.33 	327C.015, subdivision 6.

325.1 	EFFECTIVE DATE. This section is effective for refund claims based on rent paid in 
325.2 	2023 and thereafter.

325.3 	Sec. 5. Minnesota Statutes 2022, section 299C.76, subdivision 1, is amended to read:
325.4 		Subdivision 1.Definitions. (a) For the purposes of this section, the following definitions 
325.5 	apply.
325.6 	(b) "Federal tax information" means federal tax returns and return information or 
325.7 	information derived or created from federal tax returns, in possession of or control by the 
325.8 	requesting agency, that is covered by the safeguarding provisions of section 6103(p)(4) of 
325.9 	the Internal Revenue Code.
325.10 	(c) "IRS Publication 1075" means Internal Revenue Service Publication 1075 that 
325.11 	provides guidance and requirements for the protection and confidentiality of federal tax 
325.12 	information as required in section 6103(p)(4) of the Internal Revenue Code.
325.13 	(d) "National criminal history record information" means the Federal Bureau of 
325.14 	Investigation identification records as defined in Code of Federal Regulations, title 28, 
325.15 	section 20.3(d).
325.16 	(e) "Requesting agency" means the Department of Revenue, Department of Employment 
325.17 	and Economic Development, Department of Human Services, board of directors of MNsure, 
325.18 	Department of Information Technology Services, attorney general, and counties.

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

325.20 	Sec. 6. Minnesota Statutes 2022, section 299C.76, subdivision 2, is amended to read:
325.21 		Subd. 2.National criminal history record information check. As required by IRS 
325.22 	Publication 1075, a requesting agency shall require fingerprints for a national criminal 
325.23 	history record information check from the following individuals who have or will have 
325.24 	access to federal tax information:
325.25 	(1) a current or prospective permanent or temporary employee of the requesting agency;
325.26 	(2) an independent contractor or vendor of the requesting agency; or
325.27 	(3) an employee or agent of an independent contractor or vendor of the requesting agency; 
325.28 	or.
325.29 	(4) any other individual authorized to access federal tax information by the requesting 
325.30 	agency.

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

326.2 	Sec. 7. Laws 2008, chapter 366, article 17, section 6, is amended to read:
326.3 	Sec. 6. DATA UPDATE.
 326.4 	The commissioner of revenue must continue to maintain, update, and make available 
326.5 	the information required under Laws 1987, chapter 268, article 7, section 1, subdivision 6, 
326.6 	paragraph (b). The commissioner may request information from any state officer or agency 
326.7 	to assist in carrying out paragraph (b). The state officer or agency shall provide the data 
326.8 	requested to the extent permitted by law. The commissioner must provide the most complete 
326.9 	and current data available, when requested, to the chairs of the senate and house of 
326.10 	representatives committees on taxes.

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

326.12 	ARTICLE 17
326.13 	DEPARTMENT OF REVENUE: MISCELLANEOUS

326.14 	Section 1. Minnesota Statutes 2022, section 270C.19, subdivision 1, is amended to read:
326.15 		Subdivision 1.Taxes paid by Indians. Notwithstanding any other law which limits the 
326.16 	refund of tax, the commissioner is authorized to enter into a tax refund agreement with the 
326.17 	governing body of any federally recognized Indian reservation Tribe in Minnesota.
326.18 	(b) The agreement may provide for:
326.19 	(1) a mutually agreed-upon amount as a refund to the governing body of an estimate of
326.20 	any sales or excise tax paid by the total resident Indian population on or adjacent to a 
326.21 	reservation into the state treasury, Tribal members on transactions occurring on the 
326.22 	reservation or on transactions that would occur on the reservation if there was no agreement;
326.23 	or
326.24 	(2) for an amount which measures the economic value of an agreement by the Tribal 
326.25 	government to pay the equivalent of the state sales tax on items included in the sales tax 
326.26 	base but exempt on the reservation, notwithstanding any other law which limits the 
326.27 	refundment of taxes. The total resident Indian population on or adjacent to a reservation 
326.28 	shall be defined according to the United States Department of the Interior, Bureau of Indian 
326.29 	Affairs, as determined and stated in its Report on Service Population and Labor Force.
326.30 	(c) For purposes of this section, "Tribal members" means the number of enrolled members 
326.31 	of the Tribe who live on or adjacent to the reservation as defined in the agreement.
327.1 	(d) In arriving at the refund amount, the commissioner must consider Tribal enrollment 
327.2 	records, estimates contained in the tax incidence report under section 270C.13, and any 
327.3 	other information available to the commissioner.

327.4 	EFFECTIVE DATE. This section is effective retroactively for agreements entered into 
327.5 	or amended after December 31, 2022.

327.6 	Sec. 2. Minnesota Statutes 2022, section 270C.19, subdivision 2, is amended to read:
327.7 		Subd. 2.Sales, use, and excise taxes. (a) The commissioner is authorized to enter into 
327.8 	a tax agreement with the governing body of any federally recognized Indian reservation
327.9 	Tribe in Minnesota, that provides for the state and the Tribal government to share sales, 
327.10 	use, and excise tax revenues generated from on-reservation activities of non-Indians
327.11 	non-Tribal members and off-reservation activities of Tribal members of the reservation. 
327.12 	Every agreement entered into pursuant to this subdivision must require the commissioner 
327.13 	to collect all state and Tribal taxes covered by the agreement.
327.14 	(b) The commissioner is authorized to collect any Tribal taxes imposed pursuant to any 
327.15 	agreement entered into pursuant to this subdivision and to make payments authorized by 
327.16 	the agreement to the Tribal government from the funds collected.
327.17 	(c) The commissioner shall pay to the Tribal government its share of the taxes collected 
327.18 	pursuant to the agreement, as indicated in the agreement, and grant the taxpayer a credit for 
327.19 	the taxpayer's share of the amount paid to the Tribal government against the taxpayer's 
327.20 	Minnesota tax.

327.21 	EFFECTIVE DATE. This section is effective retroactively for agreements entered into 
327.22 	or amended after December 31, 2022.

327.23 	Sec. 3. Minnesota Statutes 2022, section 295.50, subdivision 4, is amended to read:
327.24 		Subd. 4.Health care provider. (a) "Health care provider" means:
327.25 	(1) a person whose health care occupation is regulated or required to be regulated by 
327.26 	the state of Minnesota furnishing any or all of the following goods or services directly to a 
327.27 	patient or consumer: medical, surgical, optical, visual, dental, hearing, nursing services, 
327.28 	drugs, laboratory, diagnostic or therapeutic services;
327.29 	(2) a person who provides goods and services not listed in clause (1) that qualify for 
327.30 	reimbursement under the medical assistance program provided under chapter 256B;
327.31 	(3) a staff model health plan company;
328.1 	(4) an ambulance service required to be licensed;
328.2 	(5) a person who sells or repairs hearing aids and related equipment or prescription 
328.3 	eyewear; or
328.4 	(6) a person providing patient services, who does not otherwise meet the definition of 
328.5 	health care provider and is not specifically excluded in clause (b), who employs or contracts 
328.6 	with a health care provider as defined in clauses (1) to (5) to perform, supervise, otherwise 
328.7 	oversee, or consult with regarding patient services.
328.8 	(b) Health care provider does not include:
328.9 	(1) hospitals; medical supplies distributors, except as specified under paragraph (a), 
328.10 	clause (5); nursing homes licensed under chapter 144A or licensed in any other jurisdiction; 
328.11 	wholesale drug distributors; pharmacies; surgical centers; bus and taxicab transportation, 
328.12 	or any other providers of transportation services other than ambulance services required to 
328.13 	be licensed; supervised living facilities for persons with developmental disabilities, licensed 
328.14 	under Minnesota Rules, parts 4665.0100 to 4665.9900; housing with services establishments 
328.15 	required to be registered under chapter 144D; board and lodging establishments providing 
328.16 	only custodial services that are licensed under chapter 157 and registered under section 
328.17 	157.17 to provide supportive services or health supervision services; adult foster homes as 
328.18 	defined in Minnesota Rules, part 9555.5105; day training and habilitation services for adults 
328.19 	with developmental disabilities as defined in section 252.41, subdivision 3; boarding care 
328.20 	homes, as defined in Minnesota Rules, part 4655.0100; and adult day care centers as defined 
328.21 	in Minnesota Rules, part 9555.9600;
328.22 	(2) home health agencies as defined in Minnesota Rules, part 9505.0175, subpart 15; a 
328.23 	person providing personal care services and supervision of personal care services as defined 
328.24 	in Minnesota Rules, part 9505.0335; a person providing home care nursing services as 
328.25 	defined in Minnesota Rules, part 9505.0360; and home care providers required to be licensed 
328.26 	under chapter 144A for home care services provided under chapter 144A;
328.27 	(3) a person who employs health care providers solely for the purpose of providing 
328.28 	patient services to its employees;
328.29 	(4) an educational institution that employs health care providers solely for the purpose 
328.30 	of providing patient services to its students if the institution does not receive fee for service 
328.31 	payments or payments for extended coverage; and
328.32 	(5) a person who receives all payments for patient services from health care providers, 
328.33 	surgical centers, or hospitals for goods and services that are taxable to the paying health 
329.1 	care providers, surgical centers, or hospitals, as provided under section 295.53, subdivision 
329.2 	1, paragraph (b), clause (3) or (4), or from a source of funds that is excluded or exempt from 
329.3 	tax under this chapter sections 295.50 to 295.59.

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

329.5 	Sec. 4. Minnesota Statutes 2022, section 296A.083, subdivision 3, is amended to read:
329.6 		Subd. 3.Surcharge rate. (a) By July 16, 2008, and each April 1 thereafter May 1 each 
329.7 	year, the commissioner of revenue shall calculate and publish a surcharge as provided in 
329.8 	paragraphs paragraph (b) and (c). The surcharge is imposed from August 1, 2008, through 
329.9 	June 30, 2009, and each new surcharge thereafter is imposed the following beginning July 
329.10 	1 of the year it is published through June 30 of the following year.
329.11 	(b) For fiscal years 2009 through 2012, the commissioner shall set the surcharge as 
329.12 	specified in the following surcharge rate schedule.

329.13	Surcharge Rate Schedule
	
329.14		Fiscal Year
	Rate (in cents per gallon)
	
329.15		2009
	0.5
		
329.16		2010
	2.1
		
329.17		2011
	2.5
		
329.18		2012
	3.0
		
329.19 	(c) For fiscal year 2013 and thereafter, (b) The commissioner shall set the surcharge at 
329.20 	the lesser of (1) 3.5 cents, or (2) an amount calculated so that the total proceeds from the 
329.21 	surcharge deposited in the trunk highway fund from fiscal year 2009 to the upcoming fiscal 
329.22 	year equals the total amount of debt service from fiscal years 2009 to 2039, and the surcharge 
329.23 	is rounded to the nearest 0.1 cent.

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

329.25 	Sec. 5. Minnesota Statutes 2022, section 297A.61, subdivision 29, is amended to read:
329.26 		Subd. 29.State. Unless specifically provided otherwise, "state" means any state of the 
329.27 	United States, the Commonwealth of Puerto Rico, and the District of Columbia, and any 
329.28 	territory of the United States, including American Samoa, Guam, Northern Mariana Islands, 
329.29 	Puerto Rico, and the U.S. Virgin Islands.

329.30 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
329.31 	30, 2023.

APPENDIX 

Repealed Minnesota Statutes: S1811-1 

No active language found for: 16A.965 

41B.0391 BEGINNING FARMER PROGRAM; TAX CREDITS.Subd. 7.Sunset. 
This section expires for taxable years beginning after December 31, 2030. 

290.0132 INDIVIDUALS, ESTATES, AND TRUSTS; SUBTRACTIONS FROM FEDERAL TAXABLE INCOME OR FEDERAL ADJUSTED GROSS INCOME.
No active language found for: 290.0132.33 

290.0681 CREDIT FOR HISTORIC STRUCTURE REHABILITATION.Subd. 10.Sunset. 
This section expires after fiscal year 2030, except that the office's authority to issue credit certificates under subdivision 4 based on allocation certificates that were issued before fiscal year 2031 remains in effect through 2034, 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 2035, whichever is earlier. 

No active language found for: 297E.021 

477A.011 DEFINITIONS.
No active language found for: 477A.011.30a 

No active language found for: 477A.011.38 

No active language found for: 477A.011.42 

No active language found for: 477A.011.45 

477A.013 MUNICIPAL GOVERNMENT DISTRIBUTIONS.
No active language found for: 477A.013.13 

477B.02 QUALIFYING FOR FIRE STATE AID.
No active language found for: 477B.02.4 

477B.03 CALCULATION OF FIRE STATE AID; APPEAL.
No active language found for: 477B.03.6