1.1 	A bill for an act
1.2 	relating to taxation; modifying individual income taxes, corporate franchise taxes, 
1.3 	property taxes, local government aids, minerals taxes, sales and use taxes, gross 
1.4 	receipts taxes, excise taxes, and other tax-related provisions; modifying and 
1.5 	establishing income tax credits and subtractions; expanding the child tax credit 
1.6 	and providing for a minimum credit; providing for nonconformity to certain worker 
1.7 	classification rules; providing for an online political contribution refund system; 
1.8 	modifying property tax exemptions, classifications, and abatements; adjusting 
1.9 	local government aid calculations and payments and forgiving local government 
1.10 	aid penalties; providing for transfers and distributions of proceeds of minerals 
1.11 	taxes; providing for issuance of revenue bonds; modifying sales and use tax 
1.12 	exemptions; providing sales and use tax construction materials exemptions; 
1.13 	repealing the tax on illegal marijuana and controlled substances; providing special 
1.14 	tax increment financing authority; authorizing cities and counties to impose local 
1.15 	sales and use taxes for certain projects; providing for taxpayer assistance and 
1.16 	outreach grants; providing aid for various uses; providing for certain policy and 
1.17 	technical modifications; requiring reports; transferring money; appropriating 
1.18 	money; amending Minnesota Statutes 2022, sections 10A.02, subdivision 11b; 
1.19 	10A.322, subdivision 4; 116U.27, subdivision 2; 123B.53, subdivision 1; 123B.71, 
1.20 	subdivision 8; 270C.21; 270C.33, by adding a subdivision; 270C.445, subdivision 
1.21 	6; 272.01, subdivision 2; 272.02, subdivision 19, by adding subdivisions; 273.13, 
1.22 	subdivisions 22, 23; 273.135, subdivision 2; 273.38; 273.41; 275.065, by adding 
1.23 	a subdivision; 276.04, by adding a subdivision; 276A.01, subdivision 17; 276A.06, 
1.24 	subdivision 8; 289A.08, subdivision 1; 289A.12, subdivision 18; 290.0132, by 
1.25 	adding subdivisions; 290.0686; 295.53, subdivision 4a; 297A.68, subdivision 42; 
1.26 	297A.70, subdivision 19; 297A.75, subdivision 1, as amended; 297A.99, 
1.27 	subdivision 3; 297F.01, subdivisions 10b, 19; 297I.20, subdivision 4; 298.17; 
1.28 	298.2215, subdivision 1; 298.28, subdivision 8; 298.282, subdivision 1; 298.292, 
1.29 	subdivision 2; 375.192, subdivision 2; 446A.086, subdivision 1; 469.104; 469.1812, 
1.30 	by adding a subdivision; 469.1813, subdivisions 1, 6, by adding a subdivision; 
1.31 	473.757, subdivision 10; 474A.091, subdivisions 2, 2a; 609.902, subdivision 4; 
1.32 	Minnesota Statutes 2023 Supplement, sections 123B.71, subdivision 12; 126C.40, 
1.33 	subdivision 6; 273.128, subdivision 1; 290.01, subdivisions 19, 31; 290.0132, 
1.34 	subdivisions 4, 26, 34; 290.0134, subdivision 20; 290.06, subdivision 23; 290.0661, 
1.35 	subdivisions 7, 8, by adding a subdivision; 290.0674, subdivision 1a; 290.0693, 
1.36 	subdivisions 1, 6, 8; 290.0695, subdivisions 1, 2, 3; 290.091, subdivision 2; 
1.37 	290A.03, subdivision 3; 297A.67, subdivision 40; 297A.99, subdivision 1; 297E.06, 
1.38 	subdivision 4; 297H.13, subdivision 2; 298.018, subdivision 1; 298.28, subdivisions 
2.1 	7a, 16; 477A.015; 477A.35, subdivisions 2, 4, 5, 6, by adding a subdivision; 
2.2 	477A.40, subdivisions 4, 5; Laws 2010, chapter 389, article 7, section 22, as 
2.3 	amended; Laws 2014, chapter 308, article 6, section 9, as amended; Laws 2017, 
2.4 	First Special Session chapter 1, article 6, section 22; Laws 2023, chapter 1, sections 
2.5 	22; 28; Laws 2023, chapter 64, article 4, section 27, by adding a subdivision; article 
2.6 	5, section 25, subdivision 1; proposing coding for new law in Minnesota Statutes, 
2.7 	chapters 270C; 290; 297A; repealing Minnesota Statutes 2022, sections 13.4967, 
2.8 	subdivision 5; 297D.02; 297D.03; 297D.05; 297D.09, subdivisions 1, 2; 297D.12; 
2.9 	297D.13; Minnesota Statutes 2023 Supplement, sections 297A.99, subdivision 3a; 
2.10 	297D.01; 297D.04; 297D.06; 297D.07; 297D.08; 297D.085; 297D.09, subdivision 
2.11 	1a; 297D.10; 297D.11; 477A.35, subdivision 1; Laws 2023, chapter 64, article 15, 
2.12 	section 24.
2.13 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.14 	ARTICLE 1
2.15 	INCOME AND CORPORATE FRANCHISE TAXES

2.16 	Section 1. Minnesota Statutes 2022, section 10A.02, subdivision 11b, is amended to read:
2.17 		Subd. 11b.Data privacy related to electronic reporting system. (a) The board may 
2.18 	develop and maintain systems to enable treasurers to enter and store electronic records 
2.19 	online for the purpose of complying with this chapter. Data entered into such systems by 
2.20 	treasurers or their authorized agents is not government data under chapter 13 and may not 
2.21 	be accessed or used by the board for any purpose without the treasurer's written consent. 
2.22 	Data from such systems that has been submitted to the board as a filed report is government 
2.23 	data under chapter 13.
2.24 	(b) For purposes of administering the refund under section 290.06, subdivision 23, the 
2.25 	board may access or use the following data entered and stored in an electronic reporting 
2.26 	system and share the data with the commissioner of revenue: (1) the amount of the 
2.27 	contribution; (2) the name and address of the contributor; (3) any unique identifier for the 
2.28 	contribution; (4) the name and campaign identification number of the party or candidate 
2.29 	that received the contribution; and (5) the date on which the contribution was received. Data 
2.30 	accessed, used, or maintained by the board under this paragraph are classified as nonpublic 
2.31 	data, as defined in section 13.02, subdivision 9, and private data on individuals, as defined 
2.32 	in section 13.02, subdivision 12.

2.33 	EFFECTIVE DATE. This section is effective January 1, 2026.

2.34 	Sec. 2. Minnesota Statutes 2022, section 10A.322, subdivision 4, is amended to read:
2.35 		Subd. 4.Refund receipt forms receipts; penalty. (a) The board must make available 
2.36 	to a political party on request and to any candidate for whom an agreement under this section 
3.1 	is effective, a supply of official refund receipt forms receipts in an electronic format that 
3.2 	state in boldface type that:
3.3 	(1) a contributor who is given a receipt form is eligible to claim a refund as provided in 
3.4 	section 290.06, subdivision 23; and
3.5 	(2) if the contribution is to a candidate, that the candidate has signed an agreement to 
3.6 	limit campaign expenditures as provided in this section.
3.7 	The forms must provide duplicate copies of the receipt to be attached to the contributor's 
3.8 	claim. An official refund receipt must only be issued for a contribution of $10 or more. 
3.9 	Each receipt must be in an electronic format and include a unique receipt validation number 
3.10 	that allows the commissioner of revenue to verify the information on the receipt with the 
3.11 	Campaign Finance Board. A political party or candidate may provide a printed copy of the 
3.12 	electronic receipt to the contributor.
3.13 	(b) At least once a week, the board must provide the commissioner of revenue a receipt 
3.14 	validation report. For each contribution reported to the board during the week, the report 
3.15 	must include:
3.16 	(1) the date and amount of the contribution;
3.17 	(2) the name and address of the contributor;
3.18 	(3) the name and campaign identification number of the party or candidate that received 
3.19 	the contribution; and
3.20 	(4) the receipt validation number assigned to the contribution.
3.21 	(b) (c) The willful issuance of an official refund receipt form or a facsimile of one to 
3.22 	any of the candidate's contributors by a candidate or treasurer of a candidate who did not 
3.23 	sign an agreement under this section is subject to a civil penalty of up to $3,000 imposed 
3.24 	by the board.
3.25 	(c) (d) The willful issuance of an official refund receipt form or a facsimile to an 
3.26 	individual not eligible to claim a refund under section 290.06, subdivision 23, is subject to 
3.27 	a civil penalty of up to $3,000 imposed by the board.
3.28 	(d) (e) A violation of paragraph (b) (c) or (c) (d) is a misdemeanor.
3.29 	(f) A receipt validation report and a receipt validation number prepared pursuant to this 
3.30 	section are classified as nonpublic data, as defined in section 13.02, subdivision 9, and 
3.31 	private data on individuals, as defined in section 13.02, subdivision 12.

4.1 	EFFECTIVE DATE. This section is effective for contributions made after December 
4.2 	31, 2025.

4.3 	Sec. 3. Minnesota Statutes 2022, section 289A.08, subdivision 1, is amended to read:
4.4 		Subdivision 1.Generally; individuals. (a) A taxpayer must file a return for each taxable 
4.5 	year the taxpayer is required to file a return under section 6012 of the Internal Revenue 
4.6 	Code or meets the requirements under paragraph (d) to file a return, except that:
4.7 	(1) an individual who is not a Minnesota resident for any part of the year is not required 
4.8 	to file a Minnesota income tax return if the individual's gross income derived from Minnesota 
4.9 	sources as determined under sections 290.081, paragraph (a), and 290.17, is less than the 
4.10 	filing requirements for a single individual who is a full year resident of Minnesota; and
4.11 	(2) an individual who is a Minnesota resident is not required to file a Minnesota income 
4.12 	tax return if the individual's gross income derived from Minnesota sources as determined 
4.13 	under section 290.17, less the subtractions allowed under section 290.0132, subdivisions 
4.14 	12 and 15, is less than the filing requirements for a single individual who is a full-year 
4.15 	resident of Minnesota.
4.16 	(b) The decedent's final income tax return, and other income tax returns for prior years 
4.17 	where the decedent had gross income in excess of the minimum amount at which an 
4.18 	individual is required to file and did not file, must be filed by the decedent's personal 
4.19 	representative, if any. If there is no personal representative, the return or returns must be 
4.20 	filed by the transferees, as defined in section 270C.58, subdivision 3, who receive property 
4.21 	of the decedent.
4.22 	(c) The term "gross income," as it is used in this section, has the same meaning given it 
4.23 	in section 290.01, subdivision 20.
4.24 	(d) The commissioner of revenue must annually determine the gross income levels at 
4.25 	which individuals are required to file a return for each taxable year based on the amounts 
4.26 	allowed as a deduction under section 290.0123.
4.27 	(e) Notwithstanding paragraph (a), an individual must file a Minnesota income tax return 
4.28 	for each taxable year that the taxpayer has made an election to receive advance payments 
4.29 	of the child tax credit under section 290.0661, subdivision 8.

4.30 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
4.31 	31, 2024.

5.1 	Sec. 4. Minnesota Statutes 2023 Supplement, section 290.01, subdivision 31, is amended 
5.2 	to read:
5.3 		Subd. 31.Internal Revenue Code. (a) Unless specifically defined otherwise, "Internal 
5.4 	Revenue Code" means the Internal Revenue Code of 1986, as amended through May 1, 
5.5 	2023. Internal Revenue Code also includes any uncodified provision in federal law that 
5.6 	relates to provisions of the Internal Revenue Code that are incorporated into Minnesota law.
5.7 	(b) For purposes of this chapter, "Internal Revenue Code" does not include section 530 
5.8 	of Public Law 95-600, as amended.

5.9 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
5.10 	31, 2024.

5.11 	Sec. 5. Minnesota Statutes 2023 Supplement, section 290.0132, subdivision 4, is amended 
5.12 	to read:
5.13 		Subd. 4.Education expenses. (a) Subject to the limits in paragraph (b), the following 
5.14 	amounts paid to others for each qualifying child are a subtraction:
5.15 	(1) education-related expenses; plus
5.16 	(2) tuition and fees paid to attend a school described in section 290.0674, subdivision 
5.17 	1a, paragraph (b) (c), clause (4), that are not included in education-related expenses; less
5.18 	(3) any amount used to claim the credit under section 290.0674.
5.19 	(b) The maximum subtraction allowed under this subdivision is:
5.20 	(1) $1,625 for each qualifying child in kindergarten through grade 6; and
5.21 	(2) $2,500 for each qualifying child in grades 7 through 12.
5.22 	(c) The definitions in section 290.0674, subdivision 1a, apply to this subdivision.

5.23 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
5.24 	31, 2023.

5.25 	Sec. 6. Minnesota Statutes 2022, section 290.0132, is amended by adding a subdivision 
5.26 	to read:
5.27 		Subd. 36.Foreign service pension; retirement pay. (a) Compensation received from 
5.28 	a pension or other retirement pay from the federal government for service in the foreign 
5.29 	service and established under United States Code, title 22, section 4071, is a subtraction.
5.30 	(b) The subtraction equals the product of:
6.1 	(1) the amount of compensation received under paragraph (a); and
6.2 	(2) the number of years of foreign service divided by the total number of years of civil 
6.3 	service for which the taxpayer receives pension income.

6.4 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
6.5 	31, 2023.

6.6 	Sec. 7. Minnesota Statutes 2022, section 290.0132, is amended by adding a subdivision 
6.7 	to read:
6.8 		Subd. 37.Discharges of indebtedness; coerced debt. The amount of discharge of 
6.9 	indebtedness awarded to a debtor under section 332.74, subdivision 3, is a subtraction.

6.10 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
6.11 	31, 2023.

6.12 	Sec. 8. Minnesota Statutes 2023 Supplement, section 290.06, subdivision 23, is amended 
6.13 	to read:
6.14 		Subd. 23.Refund of contributions to political parties and candidates. (a) A taxpayer 
6.15 	may claim a refund equal to the amount of the taxpayer's contributions made in the calendar 
6.16 	year to candidates and to a political party. The maximum total refund per calendar year for 
6.17 	an individual must not exceed $75 and for a married couple, filing jointly, must not exceed 
6.18 	$150. The commissioner must not issue a refund, whether in one payment or in aggregate, 
6.19 	to a taxpayer that exceeds the maximum refund amounts specified in this subdivision. A 
6.20 	refund of a contribution is allowed only if the taxpayer files:
6.21 	(1) a form required by the commissioner and attaches to the form a copy of an official 
6.22 	refund receipt form issued by the candidate or party and signed by the candidate, the treasurer 
6.23 	of the candidate's principal campaign committee, or the chair or treasurer of the party unit, 
6.24 	after the contribution was received. The receipt forms must be numbered, and the data on 
6.25 	the receipt that are not public must be made available to the campaign finance and public 
6.26 	disclosure board upon its request; or
6.27 	(2) a claim using the electronic filing system authorized in paragraph (i).
6.28 	The form or claim must include one or more unique receipt validation numbers from receipts 
6.29 	issued pursuant to section 10A.322, subdivision 4.
6.30 	(b) A claim must be filed with the commissioner no sooner than January 1 of the calendar 
6.31 	year in which the contribution was made and no later than April 15 of the calendar year 
7.1 	following the calendar year in which the contribution was made. A taxpayer may file only 
7.2 	one claim per calendar year. A claim must be for a minimum of $10. Amounts paid by the 
7.3 	commissioner after June 15 of the calendar year following the calendar year in which the 
7.4 	contribution was made must include interest at the rate specified in section 270C.405.
7.5 	(b) (c) No refund is allowed under this subdivision for a contribution to a candidate 
7.6 	unless the candidate:
7.7 	(1) has signed an agreement to limit campaign expenditures as provided in section 
7.8 	10A.322;
7.9 	(2) is seeking an office for which voluntary spending limits are specified in section 
7.10 	10A.25; and
7.11 	(3) has designated a principal campaign committee.
7.12 	This subdivision does not limit the campaign expenditures of a candidate who does not 
7.13 	sign an agreement but accepts a contribution for which the contributor improperly claims 
7.14 	a refund.
7.15 	(c) (d) For purposes of this subdivision, "political party" means a major political party 
7.16 	as defined in section 200.02, subdivision 7, or a minor political party qualifying for inclusion 
7.17 	on the income tax or property tax refund form under section 10A.31, subdivision 3a.
7.18 	A "major party" or "minor party" includes the aggregate of that party's organization 
7.19 	within each house of the legislature, the state party organization, and the party organization 
7.20 	within congressional districts, counties, legislative districts, municipalities, and precincts.
7.21 	"Candidate" means a candidate as defined in section 10A.01, subdivision 10, except a 
7.22 	candidate for judicial office.
7.23 	"Contribution" means a gift of money.
7.24 	(d) (e) The commissioner shall make copies of the form available to the public and 
7.25 	candidates upon request.
7.26 	(e) (f) The following data collected or maintained by the commissioner under this 
7.27 	subdivision are private: the identities of individuals claiming a refund, the identities of 
7.28 	candidates to whom those individuals have made contributions, and the amount of each 
7.29 	contribution.
7.30 	(f) (g) The commissioner shall report to the campaign finance and public disclosure 
7.31 	board by each August 1 a summary showing the total number and aggregate amount of 
8.1 	political contribution refunds made on behalf of each candidate and each political party. 
8.2 	These data are public.
8.3 	(g) (h) The amount necessary to pay claims for the refund provided in this section is 
8.4 	appropriated from the general fund to the commissioner of revenue.
8.5 	(h) For a taxpayer who files a claim for refund via the Internet or other electronic means, 
8.6 	the commissioner may accept the number on the official receipt as documentation that a 
8.7 	contribution was made rather than the actual receipt as required by paragraph (a) (i) The 
8.8 	commissioner must establish an electronic filing system by which refunds are claimed.

8.9 	EFFECTIVE DATE. This section is effective for contributions made after December 
8.10 	31, 2025.

8.11 	Sec. 9. Minnesota Statutes 2023 Supplement, section 290.0661, subdivision 7, is amended 
8.12 	to read:
8.13 		Subd. 7.Inflation adjustment. (a) For taxable years beginning after December 31, 
8.14 	2025, the commissioner of revenue must annually adjust for inflation the credit amount in 
8.15 	subdivision 3 as provided in section 270C.22. The adjusted amounts must be rounded to 
8.16 	the nearest $60. The statutory year is taxable year 2025.
8.17 	(b) For taxable years beginning after December 31, 2023, the commissioner of revenue 
8.18 	must annually adjust for inflation the phaseout thresholds in subdivision 4, as provided in 
8.19 	section 270C.22. The statutory year is taxable year 2023.
8.20 	(c) For taxable years beginning after December 31, 2025, and before January 1, 2029, 
8.21 	the commissioner of revenue must annually adjust for inflation the limitations for adjusted 
8.22 	gross income in subdivision 9, paragraph (a), clause (2), as provided in section 270C.22. 
8.23 	The statutory year is taxable year 2025.

8.24 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
8.25 	31, 2025.

8.26 	Sec. 10. Minnesota Statutes 2023 Supplement, section 290.0661, subdivision 8, is amended 
8.27 	to read:
8.28 		Subd. 8.Advance payment of credits. (a) The commissioner of revenue may must
8.29 	establish a process to allow taxpayers to elect to receive one or more advance payments of 
8.30 	the credit under this section. The amount of advance payments must be based on the taxpayer 
8.31 	and commissioner's estimate of the amount of credits for which the taxpayer would be 
8.32 	eligible in the taxable year beginning in the calendar year in which the payments were made. 
9.1 	The commissioner must not distribute advance payments to a taxpayer who does not elect 
9.2 	to receive advance payments.
9.3 	(b) The amount of a taxpayer's credit under this section for the taxable year is reduced 
9.4 	by the amount of advance payments received by the taxpayer in the calendar year during 
9.5 	which the taxable year began. If a taxpayer's advance payments exceeded the credit the 
9.6 	taxpayer was eligible to receive for the taxable year, the taxpayer's liability for tax is increased 
9.7 	by the difference between the amount of advance payments received and the credit amount.

9.8 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
9.9 	31, 2024.

9.10 	Sec. 11. Minnesota Statutes 2023 Supplement, section 290.0661, is amended by adding 
9.11 	a subdivision to read:
9.12 		Subd. 9.Minimum credit. (a) For taxable years beginning after December 31, 2024, 
9.13 	and before January 1, 2029, an eligible taxpayer is allowed the greater of the credit allowed 
9.14 	under subdivision 2 or the minimum credit described in this subdivision. A taxpayer is 
9.15 	eligible for the minimum credit under this subdivision if the taxpayer:
9.16 	(1) received an advance payment of the credit under subdivision 8 in the preceding 
9.17 	taxable year; and
9.18 	(2) has adjusted gross income in the current taxable year equal to or less than:
9.19 	(i) $60,100 for married taxpayers filing a joint return with one qualifying child; or
9.20 	(ii) $49,570 for all other filers with one qualifying child.
9.21 	(b) The adjusted gross income limitations in paragraph (a), clause (2), are increased by 
9.22 	$9,000 for each additional qualifying child.
9.23 	(c) The credit allowed under this subdivision is equal to 50 percent of the credit received 
9.24 	under subdivision 2 in the prior taxable year, unless paragraph (d) applies.
9.25 	(d) If a taxpayer is claiming fewer qualifying children in the current taxable year than 
9.26 	in the prior taxable year, the minimum credit allowed under this subdivision is equal to 50 
9.27 	percent of the credit received under this section in the prior taxable year multiplied by a 
9.28 	fraction in which:
9.29 	(1) the numerator is the number of qualifying children in the current taxable year; and
9.30 	(2) the denominator is the number of qualifying children in the prior taxable year.
10.1 	(e) The commissioner must certify the total change in individual income tax liability 
10.2 	from the credit allowed under this subdivision compared to the credit calculated under 
10.3 	subdivision 2 to the commissioner of management and budget by June 30 of each year.
10.4 	(f) A minimum child tax credit account is created in the special revenue fund. Money 
10.5 	in the account is appropriated to the commissioner of management and budget for transfers 
10.6 	to the general fund required in paragraph (h).
10.7 	(g) $9,900,000 in fiscal year 2025 is transferred from the general fund to the minimum 
10.8 	child tax credit account established in paragraph (f). This transfer is for fiscal year 2025 
10.9 	only.
10.10 	(h) In fiscal years 2026 and 2027, the commissioner of management and budget must 
10.11 	transfer an amount equal to the amount certified in paragraph (e) from the minimum child 
10.12 	tax credit account to the general fund beginning in fiscal year 2026. Any amount remaining 
10.13 	in the minimum child tax credit account on June 30, 2027, cancels to the general fund.
10.14 	(i) This subdivision expires January 1, 2029, for taxable years beginning after December 
10.15 	31, 2028.

10.16 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
10.17 	31, 2024.

10.18 	Sec. 12. Minnesota Statutes 2023 Supplement, section 290.0674, subdivision 1a, is amended 
10.19 	to read:
10.20 		Subd. 1a.Definitions. (a) For purposes of this section, the following terms have the 
10.21 	meanings given them.
10.22 	(b) "Career and technical education program" means a program which has received 
10.23 	approval under section 124D.4531 or 136F.32 and that provides individuals with coherent 
10.24 	rigorous content aligned with academic standards and relevant technical knowledge and 
10.25 	skills needed to prepare for further education and careers in current and emerging professions 
10.26 	and provides technical skill proficiency, an industry-recognized credential, and a certificate, 
10.27 	a diploma, or an associate degree.
10.28 	(b) (c) "Education-related expenses" means:
10.29 	(1) qualifying instructional fees or tuition;
10.30 	(2) expenses for textbooks, including books and other instructional materials and 
10.31 	equipment purchased or leased for use in elementary and secondary schools in teaching 
10.32 	only those subjects legally and commonly taught in public elementary and secondary schools 
11.1 	in this state. "Textbooks" does not include instructional books and materials used in the 
11.2 	teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such 
11.3 	tenets, doctrines, or worship, nor does it include books or materials for extracurricular 
11.4 	activities including sporting events, musical or dramatic events, speech activities, driver's 
11.5 	education, or similar programs;
11.6 	(3) a maximum expense of $200 per family for personal computer hardware, excluding 
11.7 	single purpose processors, and educational software that assists a dependent to improve 
11.8 	knowledge of core curriculum areas or to expand knowledge and skills under the required 
11.9 	academic standards under section 120B.021, subdivision 1, and the elective standard under 
11.10 	section 120B.022, subdivision 1, clause (2), purchased for use in the taxpayer's home and 
11.11 	not used in a trade or business regardless of whether the computer is required by the 
11.12 	dependent's school; and
11.13 	(4) the amount paid to others for transportation of a qualifying child attending an 
11.14 	elementary or secondary school situated in Minnesota, North Dakota, South Dakota, Iowa, 
11.15 	or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory 
11.16 	attendance laws, which is not operated for profit, and which adheres to the provisions of 
11.17 	the Civil Rights Act of 1964 and chapter 363A. For a qualifying child participating in a 
11.18 	career and technical education program, education-related expenses includes the amount 
11.19 	paid to others for transportation outside regular school hours that is directly related to the 
11.20 	qualifying child's participation in the program. Amounts under this clause exclude any 
11.21 	expense the taxpayer incurred in using the taxpayer's or the qualifying child's vehicle; and
11.22 	(5) for a qualifying child participating in a career and technical education program, 
11.23 	expenses for:
11.24 	(i) participation in a student organization that is a requirement of the program curriculum; 
11.25 	and
11.26 	(ii) equipment not eligible under clause (2) that is required for participation in the 
11.27 	program.
11.28 	(c) (d) "Qualified instructor" means an individual who is not a lineal ancestor or sibling 
11.29 	of the dependent and who is:
11.30 	(1) an instructor under section 120A.22, subdivision 10, clause (1), (2), (3), (4), or (5); 
11.31 	or
11.32 	(2) a member of the Minnesota Music Teachers Association.
12.1 	(d) (e) "Qualifying child" has the meaning given in section 32(c)(3) of the Internal 
12.2 	Revenue Code.
12.3 	(e) (f) "Qualifying instructional fees or tuition" means fees or tuition for instruction by 
12.4 	a qualified instructor outside the regular school day or school year, and that does not include 
12.5 	the teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such 
12.6 	tenets, doctrines, or worship, including:
12.7 	(1) driver's education offered as part of school curriculum, regardless of whether it is 
12.8 	taken from a public or private entity; or
12.9 	(2) tutoring or summer camps that:
12.10 	(i) are in grade or age appropriate curricula that supplement curricula and instruction 
12.11 	available during the regular school year;
12.12 	(ii) assist a dependent to improve knowledge of core curriculum areas; or
12.13 	(iii) expand knowledge and skills under:
12.14 	(A) the required academic standards under section 120B.021, subdivision 1; and
12.15 	(B) the world languages standards under section 120B.022, subdivision 1.

12.16 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
12.17 	31, 2023.

12.18 	Sec. 13. Minnesota Statutes 2022, section 290.0686, is amended to read:
12.19 	290.0686 CREDIT FOR ATTAINING MASTER'S DEGREE IN TEACHER'S 
12.20 	LICENSURE FIELD.
12.21 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
12.22 	the meanings given them.
12.23 	(b) "Master's degree program" means a graduate-level program at an accredited university 
12.24 	leading to a master of arts or science degree in either a core content area directly related to 
12.25 	a qualified teacher's licensure field or in special education. Except for a special education 
12.26 	program, the master's degree program may not include pedagogy or a pedagogy component. 
12.27 	To be eligible under this credit, a licensed elementary school teacher must pursue and 
12.28 	complete a master's degree program in either a core content area in which the teacher provides 
12.29 	direct classroom instruction or in special education.
12.30 	(c) "Qualified teacher" means a person who:
13.1 	(1) holds a teaching license issued by the licensing division in the Department of 
13.2 	Education on behalf of the Professional Educator Licensing and Standards Board both when 
13.3 	the teacher begins the master's degree program and when or receives the license within six 
13.4 	months of the date the teacher completes the master's degree program;
13.5 	(2) began a master's degree program after June 30, 2017; and
13.6 	(3) completes the master's degree program during the taxable year.
13.7 	(d) "Core content area" means the academic subject of reading, English or language arts, 
13.8 	mathematics, science, foreign languages, civics and government, economics, arts, history, 
13.9 	or geography.
13.10 	(e) "Special education" means a program of study directly related to licensure in 
13.11 	developmental disabilities, early childhood special education, deaf and hard of hearing 
13.12 	education, blind and visually impaired education, emotional or behavioral disorders, autism 
13.13 	spectrum disorders, or learning disabilities.
13.14 		Subd. 2.Credit allowed. (a) An individual who is a qualified teacher is allowed a credit 
13.15 	against the tax imposed under this chapter. The credit equals the lesser of $2,500 or the 
13.16 	amount the individual paid for tuition, fees, books, and instructional materials necessary to 
13.17 	completing the master's degree program and for which the individual did not receive 
13.18 	reimbursement from an employer or scholarship.
13.19 	(b) For a nonresident or a part-year resident, the credit under this subdivision must be 
13.20 	allocated based on the percentage calculated under section 290.06, subdivision 2c, paragraph 
13.21 	(e).
13.22 	(c) A qualified teacher may claim the credit in this section: (1) in the later of the year 
13.23 	the master's degree program is completed or the year the teaching license is received; and 
13.24 	(2) only one time for each master's degree program completed in a core content area or in 
13.25 	special education.

13.26 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
13.27 	31, 2023.

13.28 	Sec. 14. [290.0687] AEROSPACE AND AVIATION CREDIT.
13.29 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
13.30 	the meanings given.
13.31 	(b) "Aerospace" means relating to vehicles or objects for the purpose of suborbital, 
13.32 	orbital, or space flight, whether for private or public, or civil or defense-related purposes.
14.1 	(c) "Aviation" means relating to vehicles or objects, except parachutes, used for the 
14.2 	purpose of controlled flight through the air, regardless of how the vehicle or object is 
14.3 	propelled or controlled, and regardless of whether the vehicle or object is manned or 
14.4 	unmanned, for private or for public use, or for civil or defense-related purposes, or equipped 
14.5 	with parachute systems.
14.6 	(d) "Aviation and aerospace sector" means a private or public organization engaged in 
14.7 	the manufacture of aviation or aerospace hardware or software, aviation or aerospace 
14.8 	maintenance, aviation or aerospace repair and overhaul, supply of parts to the aviation or 
14.9 	aerospace industry, provision of services and support relating to the aviation or aerospace 
14.10 	industry, research and development of aviation or aerospace technology and systems, or 
14.11 	education and training of aviation or aerospace personnel.
14.12 	(e) "Eligible institution" means any postsecondary institution that participates in the 
14.13 	federal Pell Grant Program under Title IV of the Higher Education Act of 1965, Public Law 
14.14 	89-329, as amended.
14.15 	(f) "Full-time basis" means at least 40 hours per week.
14.16 	(g) "Qualified employee" means any individual who is a resident of Minnesota who 
14.17 	meets the following requirements:
14.18 	(1) was newly employed by a qualified employer on a full-time basis, or first contracted 
14.19 	with a qualified employer on a full-time basis, on or after January 1, 2025; and
14.20 	(2) has been awarded, within one year before or after the beginning date of employment, 
14.21 	an undergraduate degree, graduate degree, technical degree, or certificate in a qualified 
14.22 	program by a qualified institution.
14.23 	(h) "Qualified employer" means a sole proprietorship, general partnership, limited 
14.24 	partnership, limited liability company, corporation, other legally recognized business entity, 
14.25 	fiduciaries, estates, trusts, or public entity whose principal business activity involves the 
14.26 	aviation and aerospace sector and who employs a qualified employee.
14.27 	(i) "Qualified program" means a program at an eligible institution that:
14.28 	(1) has been accredited by the Engineering Accreditation Commission of the Accreditation 
14.29 	Board for Engineering and Technology, the Federal Aviation Administration, or a regional 
14.30 	accrediting body and that awards an undergraduate or graduate degree;
14.31 	(2) is within the meaning of an associate of applied science degree program or career 
14.32 	technical education program that results in the awarding of a degree or certificate that 
14.33 	prepares the graduate for gainful employment with a qualified employer; or
15.1 	(3) results in obtaining a certification or rating which directly relates to the aviation and 
15.2 	aerospace sector and is granted through the Federal Aviation Administration or regional 
15.3 	accredited body.
15.4 	(j) "Tuition" means the amount paid for enrollment, program-specific course fees, and 
15.5 	instruction in a qualified program that includes both amounts paid during participation in 
15.6 	a qualified program and amounts paid for tuition debt upon completion of a qualified 
15.7 	program. Tuition does not include the cost of books, fees that are not program-specific 
15.8 	course fees, or room and board.
15.9 		Subd. 2.Credit for tuition paid by qualified employers; limitation. (a) A qualified 
15.10 	employer is allowed a credit against the tax imposed under this chapter for tuition reimbursed 
15.11 	each year to a qualified employee in the first through fifth consecutive years of employment.
15.12 	(b) The credit equals 50 percent of the amount of tuition reimbursed by the qualified 
15.13 	employer to each qualified employee in the taxable year, except that the credit must not 
15.14 	exceed 50 percent of the average annual amount paid by a qualified employee for enrollment 
15.15 	and instruction in a qualified program. The credit is limited to the qualified employer's 
15.16 	liability for tax. The credit is not refundable and may not be carried forward.
15.17 		Subd. 3.Qualified employer credits; pass through entities. Credits allowed to a 
15.18 	partnership, a limited liability company taxed as a partnership, an S corporation, or multiple 
15.19 	owners of property are passed through to the partners, members, shareholders, or owners, 
15.20 	respectively, pro rata to each based on the partner's, member's, shareholder's, or owner's 
15.21 	share of the entity's assets or as specially allocated in the organizational documents or any 
15.22 	other executed agreement, as of the last day of the taxable year.
15.23 		Subd. 4.Reports. Beginning January 15, 2027, and each year thereafter, the 
15.24 	commissioner must submit a written report to the chairs and ranking minority members of 
15.25 	the legislative committees with jurisdiction over taxes, in compliance with sections 3.195 
15.26 	and 3.197, on the tax credits issued under this section. The report must include information 
15.27 	regarding the cost and effectiveness of the tax credit program. The report may also include 
15.28 	any recommendations for changes to law necessary to implement the credit.
15.29 		Subd. 5.Expiration. This section expires January 1, 2034, for taxable years beginning 
15.30 	after December 31, 2033.

15.31 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
15.32 	31, 2024.

16.1 	Sec. 15. Minnesota Statutes 2023 Supplement, section 290.0693, subdivision 1, is amended 
16.2 	to read:
16.3 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
16.4 	the meanings given.
16.5 	(b) "Combined exemption amount" means the sum of:
16.6 	(1) for the taxpayer's first dependent, the exemption amount multiplied by 1.4;
16.7 	(2) for the taxpayer's second dependent, the exemption amount multiplied by 1.3;
16.8 	(3) for the taxpayer's third dependent, the exemption amount multiplied by 1.2;
16.9 	(4) for the taxpayer's fourth dependent, the exemption amount multiplied by 1.1;
16.10 	(5) for the taxpayer's fifth dependent, the exemption amount; and
16.11 	(6) if the taxpayer or taxpayer's spouse had a disability or attained the age of 65 on or 
16.12 	before the close of the taxable year, the exemption amount.
16.13 	(b) (c) "Dependent" means any individual who is considered a dependent under sections 
16.14 	151 and 152 of the Internal Revenue Code.
16.15 	(c) (d) "Disability" has the meaning given in section 290A.03, subdivision 10.
16.16 	(d) (e) "Exemption amount" means the exemption amount under section 290.0121, 
16.17 	subdivision 1, paragraph (b).
16.18 	(e) (f) "Gross rent" means rent paid for the right of occupancy, at arm's length, of a 
16.19 	homestead, exclusive of charges for any medical services furnished by the landlord as a 
16.20 	part of the rental agreement, whether expressly set out in the rental agreement or not. The 
16.21 	gross rent of a resident of a nursing home or intermediate care facility is $600 per month. 
16.22 	The gross rent of a resident of an adult foster care home is $930 per month. The commissioner 
16.23 	shall annually adjust the amounts in this paragraph as provided in section 270C.22. The 
16.24 	statutory year is 2023. If the landlord and tenant have not dealt with each other at arm's 
16.25 	length and the commissioner determines that the gross rent charged was excessive, the 
16.26 	commissioner may adjust the gross rent to a reasonable amount for purposes of this section.
16.27 	(f) (g) "Homestead" has the meaning given in section 290A.03, subdivision 6.
16.28 	(g) (h) "Household" has the meaning given in section 290A.03, subdivision 4.
16.29 	(h) (i) "Household income" means all income received by all persons of a household in 
16.30 	a taxable year while members of the household, other than income of a dependent.
16.31 	(i) (j) "Income" means adjusted gross income, minus:
17.1 	(1) for the taxpayer's first dependent, the exemption amount multiplied by 1.4 the 
17.2 	taxpayer's combined exemption amount; and
17.3 	(2) for the taxpayer's second dependent, the exemption amount multiplied by 1.3; the 
17.4 	amount of discharge of indebtedness subtracted under section 290.0132, subdivision 37.
17.5 	(3) for the taxpayer's third dependent, the exemption amount multiplied by 1.2;
17.6 	(4) for the taxpayer's fourth dependent, the exemption amount multiplied by 1.1;
17.7 	(5) for the taxpayer's fifth dependent, the exemption amount; and
17.8 	(6) if the taxpayer or taxpayer's spouse had a disability or attained the age of 65 on or 
17.9 	before the close of the taxable year, the exemption amount.
17.10 	(j) (k) "Rent constituting property taxes" means 17 percent of the gross rent actually 
17.11 	paid in cash, or its equivalent, or the portion of rent paid in lieu of property taxes, in any 
17.12 	taxable year by a claimant for the right of occupancy of the claimant's Minnesota homestead 
17.13 	in the taxable year, and which rent constitutes the basis, in the succeeding taxable year of 
17.14 	a claim for a credit under this section by the claimant. If an individual occupies a homestead 
17.15 	with another person or persons not related to the individual as the individual's spouse or as 
17.16 	dependents, and the other person or persons are residing at the homestead under a rental or 
17.17 	lease agreement with the individual, the amount of rent constituting property tax for the 
17.18 	individual equals that portion not covered by the rental agreement.

17.19 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
17.20 	31, 2023.

17.21 	Sec. 16. Minnesota Statutes 2023 Supplement, section 290.0695, subdivision 1, is amended 
17.22 	to read:
17.23 		Subdivision 1.Definitions. (a) For purpose purposes of this section, the following terms 
17.24 	have the meanings given them.
17.25 	(b) "Credit certificate" means the certificate issued by the commissioner of transportation 
17.26 	under subdivision 3, paragraph (a).
17.27 	(b) (c) "Eligible taxpayer" means any railroad that is classified by the United States 
17.28 	Surface Transportation Board as a Class II or Class III railroad.
17.29 	(c) (d) "Eligible transferee" means any taxpayer subject to tax under this chapter or 
17.30 	chapter 297I.
18.1 	(d) (e) "Qualified railroad reconstruction or replacement expenditures" means gross 
18.2 	expenditures in the taxable year for maintenance, reconstruction, or replacement of railroad 
18.3 	infrastructure, including track, roadbed, bridges, industrial leads and sidings, and track-related 
18.4 	structures owned or leased by a Class II or Class III railroad in Minnesota as of January 1, 
18.5 	2021. Qualified railroad reconstruction or replacement expenditures also includes new 
18.6 	construction of industrial leads, switches, spurs and sidings and extensions of existing sidings 
18.7 	in Minnesota by a Class II or Class III railroad.
18.8 	(f) "Transfer credit certificate" means the certificate issued to a transferee by the 
18.9 	commissioner under subdivision 3, paragraph (d).

18.10 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
18.11 	after December 31, 2022.

18.12 	Sec. 17. Minnesota Statutes 2023 Supplement, section 290.0695, subdivision 3, is amended 
18.13 	to read:
18.14 		Subd. 3.Transferability Credit certificates; written agreement required; credit 
18.15 	certificate transferability. (a) To qualify for a credit under this section, an eligible taxpayer 
18.16 	must apply to the commissioner of transportation for a credit certificate. The application 
18.17 	for the credit certificate must be in the form and manner prescribed by the commissioner 
18.18 	of transportation, in consultation with the commissioner. If the application is approved, the 
18.19 	commissioner of transportation must issue the credit certificate to the eligible taxpayer 
18.20 	within 30 days of receipt of the application. The credit certificate must state, at a minimum, 
18.21 	the number of miles of qualified railroad reconstruction or replacement expenditures in the 
18.22 	taxable year and the total amount of credit calculated under the provisions of subdivision 
18.23 	2, paragraph (a). The commissioner of transportation must provide a copy of the credit 
18.24 	certificate to the commissioner of revenue. The commissioner of transportation must not 
18.25 	issue more than one credit certificate to an eligible taxpayer in a taxable year.
18.26 	(b) By written agreement, an eligible taxpayer may transfer the credit allowed under 
18.27 	this section by written agreement to an eligible transferee. The amount of the transferred 
18.28 	credit is limited to the unused, remaining portion of the credit as follows:
18.29 	(1) any amount of the credit allowed that is stated in the credit certificate before any of 
18.30 	the credit is claimed; or
18.31 	(2) the entire amount of the credit carryover in each of the five succeeding taxable years.
18.32 	(b) (c) The eligible taxpayer and the eligible transferee must jointly file a copy of the 
18.33 	written transfer agreement with the commissioner within 30 days of the transfer. The written 
19.1 	agreement must contain the name, address, and taxpayer identification number of the parties 
19.2 	to the transfer; the taxable year the eligible taxpayer incurred the qualified expenditures; 
19.3 	the amount of credit being transferred; and the taxable year or years for which the transferred 
19.4 	credit may be claimed.
19.5 	(c) (d) The commissioner must issue a transfer credit certificate to the transferee within 
19.6 	30 days of the joint filing of a copy of the written transfer agreement with the commissioner.
19.7 	(d) In the case of an audit or assessment, the transferee is liable for repayment of credits 
19.8 	claimed in excess of the allowed amount.
19.9 	(e) An eligible taxpayer must not transfer a credit to an eligible transferee more than 
19.10 	once in a taxable year.

19.11 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
19.12 	after December 31, 2022.

19.13 	Sec. 18. Minnesota Statutes 2023 Supplement, section 290.091, subdivision 2, is amended 
19.14 	to read:
19.15 		Subd. 2.Definitions. For purposes of the tax imposed by this section, the following 
19.16 	terms have the meanings given.
19.17 	(a) "Alternative minimum taxable income" means the sum of the following for the taxable 
19.18 	year:
19.19 	(1) the taxpayer's federal alternative minimum taxable income as defined in section 
19.20 	55(b)(1)(D) of the Internal Revenue Code;
19.21 	(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum 
19.22 	taxable income, but excluding:
19.23 	(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
19.24 	(ii) the medical expense deduction;
19.25 	(iii) the casualty, theft, and disaster loss deduction; and
19.26 	(iv) the impairment-related work expenses of a person with a disability;
19.27 	(3) for depletion allowances computed under section 613A(c) of the Internal Revenue 
19.28 	Code, with respect to each property (as defined in section 614 of the Internal Revenue Code), 
19.29 	to the extent not included in federal alternative minimum taxable income, the excess of the 
19.30 	deduction for depletion allowable under section 611 of the Internal Revenue Code for the 
20.1 	taxable year over the adjusted basis of the property at the end of the taxable year (determined 
20.2 	without regard to the depletion deduction for the taxable year);
20.3 	(4) to the extent not included in federal alternative minimum taxable income, the amount 
20.4 	of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue 
20.5 	Code determined without regard to subparagraph (E);
20.6 	(5) to the extent not included in federal alternative minimum taxable income, the amount 
20.7 	of interest income as provided by section 290.0131, subdivision 2;
20.8 	(6) the amount of addition required by section 290.0131, subdivisions 9, 10, and 16;
20.9 	(7) the deduction allowed under section 199A of the Internal Revenue Code, to the extent 
20.10 	not included in the addition required under clause (6); and
20.11 	(8) to the extent not included in federal alternative minimum taxable income, the amount 
20.12 	of foreign-derived intangible income deducted under section 250 of the Internal Revenue 
20.13 	Code;
20.14 	less the sum of the amounts determined under the following:
20.15 	(i) interest income as defined in section 290.0132, subdivision 2;
20.16 	(ii) an overpayment of state income tax as provided by section 290.0132, subdivision 
20.17 	3, to the extent included in federal alternative minimum taxable income;
20.18 	(iii) the amount of investment interest paid or accrued within the taxable year on 
20.19 	indebtedness to the extent that the amount does not exceed net investment income, as defined 
20.20 	in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted 
20.21 	in computing federal adjusted gross income;
20.22 	(iv) amounts subtracted from federal taxable or adjusted gross income as provided by 
20.23 	section 290.0132, subdivisions 7, 9 to 15, 17, 21, 24, 26 to 29, 31, and 34, and 35 to 36;
20.24 	(v) the amount of the net operating loss allowed under section 290.095, subdivision 11, 
20.25 	paragraph (c); and
20.26 	(vi) the amount allowable as a Minnesota itemized deduction under section 290.0122, 
20.27 	subdivision 7.
20.28 	In the case of an estate or trust, alternative minimum taxable income must be computed 
20.29 	as provided in section 59(c) of the Internal Revenue Code, except alternative minimum 
20.30 	taxable income must be increased by the addition in section 290.0131, subdivision 16.
21.1 	(b) "Investment interest" means investment interest as defined in section 163(d)(3) of 
21.2 	the Internal Revenue Code.
21.3 	(c) "Net minimum tax" means the minimum tax imposed by this section.
21.4 	(d) "Regular tax" means the tax that would be imposed under this chapter (without regard 
21.5 	to this section, section 290.033, and section 290.032), reduced by the sum of the 
21.6 	nonrefundable credits allowed under this chapter.
21.7 	(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income 
21.8 	after subtracting the exemption amount determined under subdivision 3.

21.9 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
21.10 	31, 2023.

21.11 	Sec. 19. SHAKOPEE AREA WORKFORCE DEVELOPMENT SCHOLARSHIP 
21.12 	CREDIT.
 21.13 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
21.14 	the meanings given.
21.15 	(b) "Employer-sponsored applicant" means a student applicant with a local employer 
21.16 	scholarship equal to or greater than 25 percent of the workforce development scholarship.
21.17 	(c) "Local employer" means an employer with a physical location in a county within the 
21.18 	service area of the foundation as listed in paragraph (d).
21.19 	(d) "Shakopee Chamber Foundation" or "foundation" means a nonprofit organization 
21.20 	which provides workforce and charitable services to Scott County as well as the Shakopee 
21.21 	Mdewakanton Sioux Community.
21.22 		Subd. 2.Local employer scholarships tax credit. (a) A local employer is allowed a 
21.23 	credit against the tax due under Minnesota Statutes, chapter 290, equal to the amount of the 
21.24 	local employer's scholarship awarded to an employer-sponsored applicant that is matching 
21.25 	funds for a Shakopee area workforce development scholarship to the applicant.
21.26 	(b) The credit allowed to a local employer under this subdivision per scholarship awarded 
21.27 	to an employer-sponsored applicant for a taxable year is limited to the total amount of the 
21.28 	local employer's scholarship awarded to an employer-sponsored applicant.
21.29 	(c) If the amount of credit which a claimant is eligible to receive under this subdivision 
21.30 	exceeds the claimant's tax liability under Minnesota Statutes, chapter 290, the commissioner 
21.31 	of revenue shall refund the excess to the claimant.
22.1 	(d) Credits allowed to a partnership, a limited liability company taxed as a partnership, 
22.2 	an S corporation, or multiple owners of property are passed through to the partners, members, 
22.3 	shareholders, or owners, respectively, pro rata to each partner, member, shareholder, or 
22.4 	owner based on their share of the entity's assets or as specially allocated in their 
22.5 	organizational documents or any other executed document, as of the last day of the taxable 
22.6 	year.
22.7 	(e) For nonresidents and part-year residents, the credit must be allocated based on the 
22.8 	percentage calculated under Minnesota Statutes, section 290.06, subdivision 2c, paragraph 
22.9 	(e).
22.10 	(f) Unless specifically provided otherwise by this section, the audit, assessment, refund, 
22.11 	penalty, interest, enforcement, collection remedies, appeal, and administrative provisions 
22.12 	of Minnesota Statutes, chapters 270C and 289A, that are applicable to taxes imposed under 
22.13 	Minnesota Statutes, chapter 290, apply to the tax credit allowed under this section.
22.14 	(g) This subdivision expires for taxable years beginning after December 31, 2028, except 
22.15 	that the expiration of this subdivision does not affect the commissioner of revenue's authority 
22.16 	to audit or power of examination and assessment for credits claimed under this subdivision.
22.17 	(h) An amount sufficient to pay the refunds required by this section is appropriated to 
22.18 	the commissioner of revenue from the general fund.

22.19 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
22.20 	31, 2023, and before January 1, 2029, provided that Senate File 5289, article 2, section 9, 
22.21 	or similarly styled legislation is enacted in the 2024 regular legislative session.

22.22 	Sec. 20. APPROPRIATION; POLITICAL CONTRIBUTION REFUND 
22.23 	ELECTRONIC FILING SYSTEM.
 22.24 	$147,000 in fiscal year 2025 is appropriated from the general fund to the commissioner 
22.25 	of revenue to establish and implement an electronic filing system for political contribution 
22.26 	refund claims. This appropriation is available until June 30, 2026. The base for this 
22.27 	appropriation is $59,000 for fiscal year 2026 and $59,000 for fiscal year 2027.

22.28 	Sec. 21. APPROPRIATION; DEPARTMENT OF TRANSPORTATION.
 22.29 	$33,000 in fiscal year 2025 is appropriated from the general fund to the commissioner 
22.30 	of transportation to implement the requirements of Minnesota Statutes, section 290.0695.

23.1 	Sec. 22. TRANSFER.
 23.2 	On July 1, 2024, $5,000,000 is transferred to the general fund from the tax filing 
23.3 	modernization account in the special revenue fund established in Laws 2023, chapter 64, 
23.4 	article 15, section 24.

23.5 	Sec. 23. REPEALER.
 23.6 	Laws 2023, chapter 64, article 15, section 24, is repealed.

23.7 	EFFECTIVE DATE. This section is effective July 2, 2024.

23.8 	ARTICLE 2
23.9 	PROPERTY TAXES AND LOCAL GOVERNMENT AIDS

23.10 	Section 1. Minnesota Statutes 2022, section 272.01, subdivision 2, is amended to read:
23.11 		Subd. 2.Exempt property used by private entity for profit. (a) When any real or 
23.12 	personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is leased, 
23.13 	loaned, or otherwise made available and used by a private individual, association, or 
23.14 	corporation in connection with a business conducted for profit, there shall be imposed a 
23.15 	tax, for the privilege of so using or possessing such real or personal property, in the same 
23.16 	amount and to the same extent as though the lessee or user was the owner of such property.
23.17 	(b) The tax imposed by this subdivision shall not apply to:
23.18 	(1) property leased or used as a concession in or relative to the use in whole or part of 
23.19 	a public park, market, fairgrounds, port authority, economic development authority 
23.20 	established under chapter 469, municipal auditorium, municipal parking facility, municipal 
23.21 	museum, or municipal stadium;
23.22 	(2) property of an airport owned by a city, town, county, or group thereof which is:
23.23 	(i) leased to or used by any person or entity including a fixed base operator; and
23.24 	(ii) used as a hangar for the storage or repair of aircraft or to provide aviation goods, 
23.25 	services, or facilities to the airport or general public;
23.26 	the exception from taxation provided in this clause does not apply to:
23.27 	(i) property located at an airport owned or operated by the Metropolitan Airports 
23.28 	Commission or by a city of over 50,000 population according to the most recent federal 
23.29 	census or such a city's airport authority; or
24.1 	(ii) hangars leased by a private individual, association, or corporation in connection with 
24.2 	a business conducted for profit other than an aviation-related business;
24.3 	(3) property constituting or used as a public pedestrian ramp or concourse in connection 
24.4 	with a public airport;
24.5 	(4) property constituting or used as a passenger check-in area or ticket sale counter, 
24.6 	boarding area, or luggage claim area in connection with a public airport but not the airports 
24.7 	owned or operated by the Metropolitan Airports Commission or cities of over 50,000 
24.8 	population or an airport authority therein. Real estate owned by a municipality in connection 
24.9 	with the operation of a public airport and leased or used for agricultural purposes is not 
24.10 	exempt;
24.11 	(5) property leased, loaned, or otherwise made available to a private individual, 
24.12 	corporation, or association under a cooperative farming agreement made pursuant to section 
24.13 	97A.135; or
24.14 	(6) property leased, loaned, or otherwise made available to a private individual, 
24.15 	corporation, or association under section 272.68, subdivision 4.; or
24.16 	(7) property owned by a nonprofit conservation organization that is leased, loaned, or 
24.17 	otherwise made available to a private individual, corporation, or association for grazing 
24.18 	activities that further the nonprofit conservation organization's conservation objectives for 
24.19 	the property, as shown in a management or restoration plan.
24.20 	(c) Taxes imposed by this subdivision are payable as in the case of personal property 
24.21 	taxes and shall be assessed to the lessees or users of real or personal property in the same 
24.22 	manner as taxes assessed to owners of real or personal property, except that such taxes shall 
24.23 	not become a lien against the property. When due, the taxes shall constitute a debt due from 
24.24 	the lessee or user to the state, township, city, county, and school district for which the taxes 
24.25 	were assessed and shall be collected in the same manner as personal property taxes. If 
24.26 	property subject to the tax imposed by this subdivision is leased or used jointly by two or 
24.27 	more persons, each lessee or user shall be jointly and severally liable for payment of the 
24.28 	tax.
24.29 	(d) The tax on real property of the federal government, the state or any of its political 
24.30 	subdivisions that is leased, loaned, or otherwise made available to a private individual, 
24.31 	association, or corporation and becomes taxable under this subdivision or other provision 
24.32 	of law must be assessed and collected as a personal property assessment. The taxes do not 
24.33 	become a lien against the real property.

25.1 	EFFECTIVE DATE. This section is effective beginning with property taxes payable 
25.2 	in 2025.

25.3 	Sec. 2. Minnesota Statutes 2022, section 272.02, subdivision 19, is amended to read:
25.4 		Subd. 19.Property used to distribute electricity to farmers. Electric power distribution 
25.5 	lines and their attachments and appurtenances systems, not including substations or 
25.6 	transmission or generation equipment, that are used primarily for supplying electricity to 
25.7 	farmers at retail, are exempt.

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

25.9 	Sec. 3. Minnesota Statutes 2022, section 272.02, is amended by adding a subdivision to 
25.10 	read:
25.11 		Subd. 106.Certain property owned by an Indian Tribe. (a) Property is exempt that:
25.12 	(1) was classified as class 2b under section 273.13, subdivision 24, for taxes payable in 
25.13 	2024;
25.14 	(2) is located within a county with a population greater than 5,580 but less than 5,620 
25.15 	according to the 2020 federal census;
25.16 	(3) is located in an unorganized territory with a population less than 800 according to 
25.17 	the 2020 federal census; and
25.18 	(4) was on January 2, 2023, and is for the current assessment, owned by a federally 
25.19 	recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota.
25.20 	(b) Property that qualifies for exemption under this subdivision is limited to not more 
25.21 	than five parcels.

25.22 	EFFECTIVE DATE. This section is effective beginning with assessment year 2025.

25.23 	Sec. 4. Minnesota Statutes 2022, section 272.02, is amended by adding a subdivision to 
25.24 	read:
25.25 		Subd. 107.Certain property owned by an Indian Tribe. (a) Property is exempt that:
25.26 	(1) was classified as class 3a under section 273.13, subdivision 24, for taxes payable in 
25.27 	2024;
25.28 	(2) is located in a city of the first class with a population greater than 400,000 as of the 
25.29 	2020 federal census;
26.1 	(3) was on January 1, 2023, and is for the current assessment, owned by a federally 
26.2 	recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota; 
26.3 	and
26.4 	(4) is used exclusively for Tribal purposes or institutions of purely public charity as 
26.5 	defined in subdivision 7.
26.6 	(b) Property that qualifies for the exemption under this subdivision is limited to one 
26.7 	parcel that does not exceed 40,000 square feet and that was acquired by the Indian Tribe in 
26.8 	July 2019. Property used for single-family housing, market-rate apartments, agriculture, or 
26.9 	forestry does not qualify for this exemption.

26.10 	EFFECTIVE DATE. This section is effective beginning with assessment year 2025.

26.11 	Sec. 5. Minnesota Statutes 2023 Supplement, section 273.128, subdivision 1, is amended 
26.12 	to read:
26.13 		Subdivision 1.Requirement. (a) Low-income rental property classified as class 4d(1) 
26.14 	under section 273.13, subdivision 25, is entitled to valuation under this section if at least 
26.15 	20 percent of the units in the rental housing property meet any of the following qualifications:
26.16 	(1) the units are subject to a housing assistance payments contract under Section 8 of 
26.17 	the United States Housing Act of 1937, as amended;
26.18 	(2) the units are rent-restricted and income-restricted units of a qualified low-income 
26.19 	housing project receiving tax credits under section 42(g) of the Internal Revenue Code;
26.20 	(3) the units are financed by the Rural Housing Service of the United States Department 
26.21 	of Agriculture and receive payments under the rental assistance program pursuant to section 
26.22 	521(a) of the Housing Act of 1949, as amended; or
26.23 	(4) the units are subject to rent and income restrictions under the terms of financial 
26.24 	assistance provided to the rental housing property by the federal government or the state of 
26.25 	Minnesota, or a local unit of government, as evidenced by a document recorded against the 
26.26 	property. The restrictions under this clause must require assisted units to be occupied by 
26.27 	residents whose household income at the time of initial occupancy does not exceed 60 
26.28 	percent of the greater of area or state median income, adjusted for family size, as determined 
26.29 	by the United States Department of Housing and Urban Development. The restriction must 
26.30 	also require the rents for assisted units to not exceed 30 percent of 60 percent of the greater 
26.31 	of area or state median income, adjusted for family size, as determined by the United States 
26.32 	Department of Housing and Urban Development.
27.1 	The restrictions must require assisted units to be occupied by residents whose household 
27.2 	income at the time of initial occupancy does not exceed 60 percent of the greater of area or 
27.3 	state median income, adjusted for family size, as determined by the United States Department 
27.4 	of Housing and Urban Development. The restriction must also require the rents for assisted 
27.5 	units to not exceed 30 percent of 60 percent of the greater of area or state median income, 
27.6 	adjusted for family size, as determined by the United States Department of Housing and 
27.7 	Urban Development.
27.8 	(b) The owner of a property certified as class 4d(1) under this section must use the 
27.9 	property tax savings received from the 4d(1) classification for one or more of the following 
27.10 	eligible uses: property maintenance, property security, improvements to the property, rent 
27.11 	stabilization, or increases to the property's replacement reserve account. To maintain the 
27.12 	class 4d(1) classification, the property owner must annually reapply and certify to the 
27.13 	Housing Finance Agency that the property tax savings were used for one or more eligible 
27.14 	uses.
27.15 	(c) In order to meet the requirements of this section, property which received the 4d(1) 
27.16 	classification in the prior year must demonstrate compliance with paragraph (b).

27.17 	EFFECTIVE DATE. This section is effective beginning with assessment year 2025.

27.18 	Sec. 6. Minnesota Statutes 2022, section 273.13, subdivision 23, is amended to read:
27.19 		Subd. 23.Class 2. (a) An agricultural homestead consists of class 2a agricultural land 
27.20 	that is homesteaded, along with any class 2b rural vacant land that is contiguous to the class 
27.21 	2a land under the same ownership. The market value of the house and garage and immediately 
27.22 	surrounding one acre of land has the same classification rates as class 1a or 1b property 
27.23 	under subdivision 22. The value of the remaining land including improvements up to the 
27.24 	first tier valuation limit of agricultural homestead property has a classification rate of 0.5 
27.25 	percent of market value. The remaining property over the first tier has a classification rate 
27.26 	of one percent of market value. For purposes of this subdivision, the "first tier valuation 
27.27 	limit of agricultural homestead property" and "first tier" means the limit certified under 
27.28 	section 273.11, subdivision 23.
27.29 	(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that 
27.30 	are agricultural land and buildings. Class 2a property has a classification rate of one percent 
27.31 	of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a 
27.32 	property must also include any property that would otherwise be classified as 2b, but is 
27.33 	interspersed with class 2a property, including but not limited to sloughs, wooded wind 
27.34 	shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement, 
28.1 	and other similar land that is impractical for the assessor to value separately from the rest 
28.2 	of the property or that is unlikely to be able to be sold separately from the rest of the property.
28.3 	An assessor may classify the part of a parcel described in this subdivision that is used 
28.4 	for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
28.5 	(c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that 
28.6 	are unplatted real estate, rural in character and not used for agricultural purposes, including 
28.7 	land used for growing trees for timber, lumber, and wood and wood products, that is not 
28.8 	improved with a structure. The presence of a minor, ancillary nonresidential structure as 
28.9 	defined by the commissioner of revenue does not disqualify the property from classification 
28.10 	under this paragraph. Any parcel of 20 acres or more improved with a structure that is not 
28.11 	a minor, ancillary nonresidential structure must be split-classified, and ten acres must be 
28.12 	assigned to the split parcel containing the structure. If a parcel of 20 acres or more is enrolled 
28.13 	in the sustainable forest management incentive program under chapter 290C, the number 
28.14 	of acres assigned to the split parcel improved with a structure that is not a minor, ancillary 
28.15 	nonresidential structure must equal three acres or the number of acres excluded from the 
28.16 	sustainable forest incentive act covenant due to the structure, whichever is greater. Class 
28.17 	2b property has a classification rate of one percent of market value unless it is part of an 
28.18 	agricultural homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
28.19 	(d) Class 2c managed forest land consists of no less than 20 and no more than 1,920 
28.20 	acres statewide per taxpayer that is being managed under a forest management plan that 
28.21 	meets the requirements of chapter 290C, but is not enrolled in the sustainable forest resource 
28.22 	management incentive program. It has a classification rate of .65 percent, provided that the 
28.23 	owner of the property must apply to the assessor in order for the property to initially qualify 
28.24 	for the reduced rate and provide the information required by the assessor to verify that the 
28.25 	property qualifies for the reduced rate. If the assessor receives the application and information 
28.26 	before May 1 in an assessment year, the property qualifies beginning with that assessment 
28.27 	year. If the assessor receives the application and information after April 30 in an assessment 
28.28 	year, the property may not qualify until the next assessment year. The commissioner of 
28.29 	natural resources must concur that the land is qualified. The commissioner of natural 
28.30 	resources shall annually provide county assessors verification information on a timely basis. 
28.31 	The presence of a minor, ancillary nonresidential structure as defined by the commissioner 
28.32 	of revenue does not disqualify the property from classification under this paragraph.
28.33 	(e) Agricultural land as used in this section means:
29.1 	(1) contiguous acreage of ten acres or more, used during the preceding year for 
29.2 	agricultural purposes; or
29.3 	(2) contiguous acreage used during the preceding year for an intensive livestock or 
29.4 	poultry confinement operation, provided that land used only for pasturing or grazing does 
29.5 	not qualify under this clause.
29.6 	"Agricultural purposes" as used in this section means the raising, cultivation, drying, or 
29.7 	storage of agricultural products for sale, or the storage of machinery or equipment used in 
29.8 	support of agricultural production by the same farm entity. For a property to be classified 
29.9 	as agricultural based only on the drying or storage of agricultural products, the products 
29.10 	being dried or stored must have been produced by the same farm entity as the entity operating 
29.11 	the drying or storage facility. "Agricultural purposes" also includes (i) enrollment in a local 
29.12 	conservation program or the Reinvest in Minnesota program under sections 103F.501 to 
29.13 	103F.535 or the federal Conservation Reserve Program as contained in Public Law 99-198 
29.14 	or a similar state or federal conservation program if the property was classified as agricultural 
29.15 	(A) under this subdivision for taxes payable in 2003 because of its enrollment in a qualifying 
29.16 	program and the land remains enrolled or (B) in the year prior to its enrollment, or (ii) use 
29.17 	of land, not to exceed three acres, to provide environmental benefits such as buffer strips, 
29.18 	old growth forest restoration or retention, or retention ponds to prevent soil erosion. For 
29.19 	purposes of this section, a "local conservation program" means a program administered by 
29.20 	a town, statutory or home rule charter city, or county, including a watershed district, water 
29.21 	management organization, or soil and water conservation district, in which landowners 
29.22 	voluntarily enroll land and receive incentive payments equal to at least $50 per acre in 
29.23 	exchange for use or other restrictions placed on the land. In order for property to qualify 
29.24 	under the local conservation program provision, a taxpayer must apply to the assessor by 
29.25 	February 1 of the assessment year and must submit the information required by the assessor, 
29.26 	including but not limited to a copy of the program requirements, the specific agreement 
29.27 	between the land owner and the local agency, if applicable, and a map of the conservation 
29.28 	area. Agricultural classification shall not be based upon the market value of any residential 
29.29 	structures on the parcel or contiguous parcels under the same ownership.
29.30 	"Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous 
29.31 	portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion 
29.32 	of, a set of contiguous tax parcels under that section that are owned by the same person.
29.33 	(f) Agricultural land under this section also includes:
30.1 	(1) contiguous acreage that is less than ten acres in size and exclusively used in the 
30.2 	preceding year for raising or cultivating agricultural products; or
30.3 	(2) contiguous acreage that contains a residence and is less than 11 acres in size, if the 
30.4 	contiguous acreage exclusive of the house, garage, and surrounding one acre of land was 
30.5 	used in the preceding year for one or more of the following three uses:
30.6 	(i) for an intensive grain drying or storage operation, or for intensive machinery or 
30.7 	equipment storage activities used to support agricultural activities on other parcels of property 
30.8 	operated by the same farming entity;
30.9 	(ii) as a nursery, provided that only those acres used intensively to produce nursery stock 
30.10 	are considered agricultural land; or
30.11 	(iii) for intensive market farming; for purposes of this paragraph, "market farming" 
30.12 	means the cultivation of one or more fruits or vegetables or production of animal or other 
30.13 	agricultural products for sale to local markets by the farmer or an organization with which 
30.14 	the farmer is affiliated. or
30.15 	(3) contiguous acreage that contains a residence and is less than 11 acres in size, if the 
30.16 	contiguous acreage exclusive of the house, garage, and surrounding one acre of land was 
30.17 	used in the preceding year for market farming; and:
30.18 	(i) the owner provides the county assessor with federal Schedule F (Form 1040) for the 
30.19 	most recent tax year which reports gross income of at least $5,000; or
30.20 	(ii) if the owner has not filed federal Schedule F (Form 1040) for the most recent tax 
30.21 	year, the owner provides the county assessor with a farm financial plan prepared by a 
30.22 	financial management program approved by the commissioner of agriculture that 
30.23 	demonstrates a plan to earn $5,000 annually in gross income in each of the next two years.
30.24 	For purposes of this paragraph, "market farming" means the cultivation of one or more 
30.25 	fruits or vegetables or production of animal or other agricultural products for sale to local 
30.26 	markets by the farmer or an organization with which the farmer is affiliated, and "contiguous 
30.27 	acreage," for purposes of this paragraph, means all of a tax parcel as described in section 
30.28 	272.193, or all of a set of contiguous tax parcels under that section that are owned by the 
30.29 	same person.
30.30 	(g) Land shall be classified as agricultural even if all or a portion of the agricultural use 
30.31 	of that property is the leasing to, or use by another person for agricultural purposes.
30.32 	Classification under this subdivision is not determinative for qualifying under section 
30.33 	273.111.
31.1 	(h) The property classification under this section supersedes, for property tax purposes 
31.2 	only, any locally administered agricultural policies or land use restrictions that define 
31.3 	minimum or maximum farm acreage.
31.4 	(i) The term "agricultural products" as used in this subdivision includes production for 
31.5 	sale of:
31.6 	(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing 
31.7 	animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, bees, 
31.8 	and apiary products by the owner;
31.9 	(2) aquacultural products for sale and consumption, as defined under section 17.47, if 
31.10 	the aquaculture occurs on land zoned for agricultural use;
31.11 	(3) the commercial boarding of horses, which may include related horse training and 
31.12 	riding instruction, if the boarding is done on property that is also used for raising pasture 
31.13 	to graze horses or raising or cultivating other agricultural products as defined in clause (1);
31.14 	(4) property which is owned and operated by nonprofit organizations used for equestrian 
31.15 	activities, excluding racing;
31.16 	(5) game birds and waterfowl bred and raised (i) on a game farm licensed under section 
31.17 	97A.105, provided that the annual licensing report to the Department of Natural Resources, 
31.18 	which must be submitted annually by March 30 to the assessor, indicates that at least 500 
31.19 	birds were raised or used for breeding stock on the property during the preceding year and 
31.20 	that the owner provides a copy of the owner's most recent schedule F; or (ii) for use on a 
31.21 	shooting preserve licensed under section 97A.115;
31.22 	(6) insects primarily bred to be used as food for animals;
31.23 	(7) trees, grown for sale as a crop, including short rotation woody crops, and not sold 
31.24 	for timber, lumber, wood, or wood products; and
31.25 	(8) maple syrup taken from trees grown by a person licensed by the Minnesota 
31.26 	Department of Agriculture under chapter 28A as a food processor.
31.27 	(j) If a parcel used for agricultural purposes is also used for commercial or industrial 
31.28 	purposes, including but not limited to:
31.29 	(1) wholesale and retail sales;
31.30 	(2) processing of raw agricultural products or other goods;
31.31 	(3) warehousing or storage of processed goods; and
32.1 	(4) office facilities for the support of the activities enumerated in clauses (1), (2), and 
32.2 	(3), the assessor shall classify the part of the parcel used for agricultural purposes as class 
32.3 	1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use. 
32.4 	The grading, sorting, and packaging of raw agricultural products for first sale is considered 
32.5 	an agricultural purpose. A greenhouse or other building where horticultural or nursery 
32.6 	products are grown that is also used for the conduct of retail sales must be classified as 
32.7 	agricultural if it is primarily used for the growing of horticultural or nursery products from 
32.8 	seed, cuttings, or roots and occasionally as a showroom for the retail sale of those products. 
32.9 	Use of a greenhouse or building only for the display of already grown horticultural or nursery 
32.10 	products does not qualify as an agricultural purpose.
32.11 	(k) The assessor shall determine and list separately on the records the market value of 
32.12 	the homestead dwelling and the one acre of land on which that dwelling is located. If any 
32.13 	farm buildings or structures are located on this homesteaded acre of land, their market value 
32.14 	shall not be included in this separate determination.
32.15 	(l) Class 2d airport landing area consists of a landing area or public access area of a 
32.16 	privately owned public use airport. It has a classification rate of one percent of market value. 
32.17 	To qualify for classification under this paragraph, a privately owned public use airport must 
32.18 	be licensed as a public airport under section 360.018. For purposes of this paragraph, "landing 
32.19 	area" means that part of a privately owned public use airport properly cleared, regularly 
32.20 	maintained, and made available to the public for use by aircraft and includes runways, 
32.21 	taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing 
32.22 	area also includes land underlying both the primary surface and the approach surfaces that 
32.23 	comply with all of the following:
32.24 	(i) the land is properly cleared and regularly maintained for the primary purposes of the 
32.25 	landing, taking off, and taxiing of aircraft; but that portion of the land that contains facilities 
32.26 	for servicing, repair, or maintenance of aircraft is not included as a landing area;
32.27 	(ii) the land is part of the airport property; and
32.28 	(iii) the land is not used for commercial or residential purposes.
32.29 	The land contained in a landing area under this paragraph must be described and certified 
32.30 	by the commissioner of transportation. The certification is effective until it is modified, or 
32.31 	until the airport or landing area no longer meets the requirements of this paragraph. For 
32.32 	purposes of this paragraph, "public access area" means property used as an aircraft parking 
32.33 	ramp, apron, or storage hangar, or an arrival and departure building in connection with the 
32.34 	airport.
33.1 	(m) Class 2e consists of land with a commercial aggregate deposit that is not actively 
33.2 	being mined and is not otherwise classified as class 2a or 2b, provided that the land is not 
33.3 	located in a county that has elected to opt-out of the aggregate preservation program as 
33.4 	provided in section 273.1115, subdivision 6. It has a classification rate of one percent of 
33.5 	market value. To qualify for classification under this paragraph, the property must be at 
33.6 	least ten contiguous acres in size and the owner of the property must record with the county 
33.7 	recorder of the county in which the property is located an affidavit containing:
33.8 	(1) a legal description of the property;
33.9 	(2) a disclosure that the property contains a commercial aggregate deposit that is not 
33.10 	actively being mined but is present on the entire parcel enrolled;
33.11 	(3) documentation that the conditional use under the county or local zoning ordinance 
33.12 	of this property is for mining; and
33.13 	(4) documentation that a permit has been issued by the local unit of government or the 
33.14 	mining activity is allowed under local ordinance. The disclosure must include a statement 
33.15 	from a registered professional geologist, engineer, or soil scientist delineating the deposit 
33.16 	and certifying that it is a commercial aggregate deposit.
33.17 	For purposes of this section and section 273.1115, "commercial aggregate deposit" 
33.18 	means a deposit that will yield crushed stone or sand and gravel that is suitable for use as 
33.19 	a construction aggregate; and "actively mined" means the removal of top soil and overburden 
33.20 	in preparation for excavation or excavation of a commercial deposit.
33.21 	(n) When any portion of the property under this subdivision or subdivision 22 begins to 
33.22 	be actively mined, the owner must file a supplemental affidavit within 60 days from the 
33.23 	day any aggregate is removed stating the number of acres of the property that is actively 
33.24 	being mined. The acres actively being mined must be (1) valued and classified under 
33.25 	subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate 
33.26 	resource preservation property tax program under section 273.1115, if the land was enrolled 
33.27 	in that program. Copies of the original affidavit and all supplemental affidavits must be 
33.28 	filed with the county assessor, the local zoning administrator, and the Department of Natural 
33.29 	Resources, Division of Land and Minerals. A supplemental affidavit must be filed each 
33.30 	time a subsequent portion of the property is actively mined, provided that the minimum 
33.31 	acreage change is five acres, even if the actual mining activity constitutes less than five 
33.32 	acres.
34.1 	(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are not 
34.2 	rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in 
34.3 	section 14.386 concerning exempt rules do not apply.

34.4 	EFFECTIVE DATE. This section is effective beginning with assessment year 2025.

34.5 	Sec. 7. Minnesota Statutes 2022, section 273.38, is amended to read:
34.6 	273.38 PERCENTAGE OF ASSESSMENTS; EXCEPTIONS.
34.7 	The distribution lines and the attachments and appurtenances thereto systems, not 
34.8 	including substations or transmission or generation equipment, of cooperative associations 
34.9 	organized under the provisions of Laws 1923, chapter 326, and laws amendatory thereof 
34.10 	and supplemental thereto, and engaged in the electrical heat, light and power business, upon 
34.11 	a mutual, nonprofit and cooperative plan, shall be assessed and taxed as provided in sections 
34.12 	273.40 and 273.41.

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

34.14 	Sec. 8. Minnesota Statutes 2022, section 273.41, is amended to read:
34.15 	273.41 AMOUNT OF TAX; DISTRIBUTION.
34.16 	There is hereby imposed upon each such cooperative association on December 31 of 
34.17 	each year a tax of $10 for each 100 members, or fraction thereof, of such association. The 
34.18 	tax, when paid, shall be in lieu of all personal property taxes, state, county, or local, upon 
34.19 	distribution lines and the attachments and appurtenances thereto of such associations that 
34.20 	part of the association's distribution system, not including substations or transmission or 
34.21 	generation equipment, located in rural areas. The tax shall be payable on or before March 
34.22 	1 of the next succeeding year, to the commissioner of revenue. If the tax, or any portion 
34.23 	thereof, is not paid within the time herein specified for the payment thereof, there shall be 
34.24 	added thereto a specific penalty equal to ten percent of the amount so remaining unpaid. 
34.25 	Such penalty shall be collected as part of said tax, and the amount of said tax not timely 
34.26 	paid, together with said penalty, shall bear interest at the rate specified in section 270C.40
34.27 	from the time such tax should have been paid until paid. The commissioner shall deposit 
34.28 	the amount so received in the general fund of the state treasury.

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

35.1 	Sec. 9. Minnesota Statutes 2023 Supplement, section 290A.03, subdivision 3, is amended 
35.2 	to read:
35.3 		Subd. 3.Income. (a) "Income" means the sum of the following:
35.4 	(1) federal adjusted gross income as defined in the Internal Revenue Code; and
35.5 	(2) the sum of the following amounts to the extent not included in clause (1):
35.6 	(i) all nontaxable income;
35.7 	(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, 
35.8 	paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss 
35.9 	carryover allowed under section 469(b) of the Internal Revenue Code;
35.10 	(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a 
35.11 	solvent individual excluded from gross income under section 108(g) of the Internal Revenue 
35.12 	Code;
35.13 	(iv) cash public assistance and relief;
35.14 	(v) any pension or annuity (including railroad retirement benefits, all payments received 
35.15 	under the federal Social Security Act, Supplemental Security Income, and veterans benefits), 
35.16 	which was not exclusively funded by the claimant or spouse, or which was funded exclusively 
35.17 	by the claimant or spouse and which funding payments were excluded from federal adjusted 
35.18 	gross income in the years when the payments were made;
35.19 	(vi) interest received from the federal or a state government or any instrumentality or 
35.20 	political subdivision thereof;
35.21 	(vii) workers' compensation;
35.22 	(viii) nontaxable strike benefits;
35.23 	(ix) the gross amounts of payments received in the nature of disability income or sick 
35.24 	pay as a result of accident, sickness, or other disability, whether funded through insurance 
35.25 	or otherwise;
35.26 	(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 
35.27 	1986, as amended through December 31, 1995;
35.28 	(xi) contributions made by the claimant to an individual retirement account, including 
35.29 	a qualified voluntary employee contribution; simplified employee pension plan; 
35.30 	self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of 
35.31 	the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal 
36.1 	Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for 
36.2 	the claimant and spouse;
36.3 	(xii) to the extent not included in federal adjusted gross income, distributions received 
36.4 	by the claimant or spouse from a traditional or Roth style retirement account or plan;
36.5 	(xiii) nontaxable scholarship or fellowship grants;
36.6 	(xiv) alimony received to the extent not included in the recipient's income;
36.7 	(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue 
36.8 	Code;
36.9 	(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue 
36.10 	Code; and
36.11 	(xvii) the amount deducted for certain expenses of elementary and secondary school 
36.12 	teachers under section 62(a)(2)(D) of the Internal Revenue Code.
36.13 	In the case of an individual who files an income tax return on a fiscal year basis, the 
36.14 	term "federal adjusted gross income" shall mean federal adjusted gross income reflected in 
36.15 	the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced 
36.16 	by the amount of a net operating loss carryback or carryforward or a capital loss carryback 
36.17 	or carryforward allowed for the year.
36.18 	(b) "Income" does not include:
36.19 	(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
36.20 	(2) amounts of any pension or annuity which was exclusively funded by the claimant 
36.21 	or spouse and which funding payments were not excluded from federal adjusted gross 
36.22 	income in the years when the payments were made;
36.23 	(3) to the extent included in federal adjusted gross income, amounts contributed by the 
36.24 	claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed 
36.25 	the retirement base amount reduced by the amount of contributions excluded from federal 
36.26 	adjusted gross income, but not less than zero;
36.27 	(4) surplus food or other relief in kind supplied by a governmental agency;
36.28 	(5) relief granted under this chapter;
36.29 	(6) child support payments received under a temporary or final decree of dissolution or 
36.30 	legal separation;
37.1 	(7) restitution payments received by eligible individuals and excludable interest as 
37.2 	defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, 
37.3 	Public Law 107-16;
37.4 	(8) alimony paid; or
37.5 	(9) veterans disability compensation paid under title 38 of the United States Code; or
37.6 	(10) to the extent included in federal adjusted gross income, the amount of discharge of 
37.7 	indebtedness awarded to the claimant under section 332.74, subdivision 3.
37.8 	(c) The sum of the following amounts may be subtracted from income:
37.9 	(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
37.10 	(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
37.11 	(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
37.12 	(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
37.13 	(5) for the claimant's fifth dependent, the exemption amount; and
37.14 	(6) if the claimant or claimant's spouse had a disability or attained the age of 65 on or 
37.15 	before December 31 of the year for which the taxes were levied, the exemption amount.
37.16 	(d) For purposes of this subdivision, the following terms have the meanings given:
37.17 	(1) "exemption amount" means the exemption amount under section 290.0121, 
37.18 	subdivision 1, paragraph (b), for the taxable year for which the income is reported;
37.19 	(2) "retirement base amount" means the deductible amount for the taxable year for the 
37.20 	claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for 
37.21 	inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard 
37.22 	to whether the claimant or spouse claimed a deduction; and
37.23 	(3) "traditional or Roth style retirement account or plan" means retirement plans under 
37.24 	sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.

37.25 	EFFECTIVE DATE. This section is effective for property taxes payable in 2025 and 
37.26 	thereafter.

38.1 	Sec. 10. Minnesota Statutes 2022, section 469.1812, is amended by adding a subdivision 
38.2 	to read:
38.3 		Subd. 2a.Land bank organization. "Land bank organization" means an organization 
38.4 	that, at least in part, acquires, holds, or manages vacant, blighted, foreclosed, or tax-forfeited 
38.5 	property for future development, redevelopment, or disposal, and that is either:
38.6 	(1) a nonprofit organization exempt from federal income taxation under section 501(c)(3) 
38.7 	of the Internal Revenue Code whose governing board members are elected or appointed by 
38.8 	the state of Minnesota, any political subdivision of the state of Minnesota, or an agency of 
38.9 	the state of Minnesota or its political subdivisions, or are elected or appointed officials of 
38.10 	the state of Minnesota or any of its political subdivisions; or
38.11 	(2) a limited liability company of which a nonprofit organization described in clause (1) 
38.12 	is the sole member.

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

38.14 	Sec. 11. Minnesota Statutes 2022, section 469.1813, subdivision 1, is amended to read:
38.15 		Subdivision 1.Authority. The governing body of a political subdivision may grant a 
38.16 	current or prospective abatement, by contract or otherwise, of the taxes imposed by the 
38.17 	political subdivision on a parcel of property, which may include personal property and 
38.18 	machinery, or defer the payments of the taxes and abate the interest and penalty that otherwise 
38.19 	would apply, if:
38.20 	(1) it expects the benefits to the political subdivision of the proposed abatement agreement 
38.21 	to at least equal the costs to the political subdivision of the proposed agreement or intends 
38.22 	the abatement to phase in a property tax increase, as provided in clause (2)(vii); and
38.23 	(2) it finds that doing so is in the public interest because it will:
38.24 	(i) increase or preserve tax base;
38.25 	(ii) provide employment opportunities in the political subdivision;
38.26 	(iii) provide or help acquire or construct public facilities;
38.27 	(iv) help redevelop or renew blighted areas;
38.28 	(v) help provide access to services for residents of the political subdivision;
38.29 	(vi) finance or provide public infrastructure;
39.1 	(vii) phase in a property tax increase on the parcel resulting from an increase of 50 
39.2 	percent or more in one year on the estimated market value of the parcel, other than increase 
39.3 	attributable to improvement of the parcel; or
39.4 	(viii) stabilize the tax base through equalization of property tax revenues for a specified 
39.5 	period of time with respect to a taxpayer whose real and personal property is subject to 
39.6 	valuation under Minnesota Rules, chapter 8100;
39.7 	(ix) provide for the development of affordable housing to households at or below 80 
39.8 	percent of area median income as estimated by the United States Department of Housing 
39.9 	and Urban Development for the political subdivision in which the project is located; or
39.10 	(x) allow the property to be held by a land bank organization for future development.

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

39.12 	Sec. 12. Minnesota Statutes 2022, section 469.1813, subdivision 6, is amended to read:
39.13 		Subd. 6.Duration limit. (a) A political subdivision may grant an abatement for a period 
39.14 	no longer than 15 years, except as provided under paragraph paragraphs (b) and (c). The 
39.15 	abatement period commences in the first year in which the abatement granted is either paid 
39.16 	or retained in accordance with section 469.1815, subdivision 2. The subdivision may specify 
39.17 	in the abatement resolution a shorter duration. If the resolution does not specify a period of 
39.18 	time, the abatement is for eight years. If an abatement has been granted to a parcel of property 
39.19 	and the period of the abatement has expired, the political subdivision that granted the 
39.20 	abatement may not grant another abatement for eight years after the expiration of the first 
39.21 	abatement. This prohibition does not apply to improvements added after and not subject to 
39.22 	the first abatement. Economic abatement agreements for real and personal property subject 
39.23 	to valuation under Minnesota Rules, chapter 8100, are not subject to this prohibition and 
39.24 	may be granted successively.
39.25 	(b) A political subdivision proposing to abate taxes for a parcel may request, in writing, 
39.26 	that the other political subdivisions in which the parcel is located grant an abatement for 
39.27 	the property. If one of the other political subdivisions declines, in writing, to grant an 
39.28 	abatement or if 90 days pass after receipt of the request to grant an abatement without a 
39.29 	written response from one of the political subdivisions, the duration limit for an abatement 
39.30 	for the parcel by the requesting political subdivision and any other participating political 
39.31 	subdivision is increased to 20 years. If the political subdivision which declined to grant an 
39.32 	abatement later grants an abatement for the parcel, the 20-year duration limit is reduced by 
39.33 	one year for each year that the declining political subdivision grants an abatement for the 
40.1 	parcel during the period of the abatement granted by the requesting political subdivision. 
40.2 	The duration limit may not be reduced below the limit under paragraph (a).
40.3 	(c) An abatement under subdivision 1, clause (2), items (ix) and (x), may be granted for 
40.4 	a period no longer than five years. This limit also applies if the resolution does not specify 
40.5 	a period of time.

40.6 	EFFECTIVE DATE. This section is effective for abatement resolutions approved after 
40.7 	the day following final enactment.

40.8 	Sec. 13. Minnesota Statutes 2022, section 469.1813, is amended by adding a subdivision 
40.9 	to read:
40.10 		Subd. 11.Repayment. A land bank organization receiving an abatement under 
40.11 	subdivision 1, clause (2), item (ix) or (x), must repay the abatement with interest if the land 
40.12 	for which the abatement was granted is used for a purpose other than the purpose given by 
40.13 	the land bank organization prior to redevelopment, as determined by the governing body 
40.14 	of the political subdivision that granted the abatement. This subdivision applies immediately 
40.15 	after the abatement under this section expires and land is subject to repayment under this 
40.16 	subdivision for the same number of years that the abatement was granted. Interest under 
40.17 	this section is payable at the rate determined in section 270C.40, subdivision 5.

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

40.19 	Sec. 14. Minnesota Statutes 2023 Supplement, section 477A.015, is amended to read:
40.20 	477A.015 PAYMENT DATES.
40.21 	(a) The commissioner of revenue shall make the payments of local government aid to 
40.22 	affected taxing authorities in two installments on July 20 and December 26 annually.
40.23 	(b) Notwithstanding paragraph (a), for aids payable in 2025 only, the commissioner of 
40.24 	revenue shall make payments of the aid payable under section 477A.013, subdivision 9, in 
40.25 	three installments as follows: (1) 9.402 9.7401 percent of the aid shall be paid on March 
40.26 	20, 2025; (2) 40.598 40.2599 percent of the aid shall be paid on July 20, 2025; and (3) 50 
40.27 	percent of the aid shall be paid on December 26, 2025.
40.28 	(c) When the commissioner of public safety determines that a local government has 
40.29 	suffered financial hardship due to a natural disaster, the commissioner of public safety shall 
40.30 	notify the commissioner of revenue, who shall make payments of aids under sections 
40.31 	477A.011 to 477A.014, which are otherwise due on December 26, as soon as is practical 
40.32 	after the determination is made but not before July 20.
41.1 	(d) The commissioner may pay all or part of the payments of aids under sections 
41.2 	477A.011 to 477A.014, which are due on December 26 at any time after August 15 if a 
41.3 	local government requests such payment as being necessary for meeting its cash flow needs.

41.4 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2025.

41.5 	Sec. 15. Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 2, is amended 
41.6 	to read:
41.7 		Subd. 2.Definitions. (a) For the purposes of this section, the following terms have the 
41.8 	meanings given:.
41.9 	(1) (b) "City distribution factor" means the number of households in a tier I city that are 
41.10 	cost-burdened divided by the total number of households that are cost-burdened in tier I 
41.11 	cities. The number of cost-burdened households shall be determined using the most recent 
41.12 	estimates or experimental estimates provided by the American Community Survey of the 
41.13 	United States Census Bureau as of May 1 of the aid calculation year;.
41.14 	(2) (c) "Cost-burdened household" means a household in which gross rent is 30 percent 
41.15 	or more of household income or in which homeownership costs are 30 percent or more of 
41.16 	household income;.
41.17 	(3) (d) "County distribution factor" means the number of households in a county that 
41.18 	are cost-burdened divided by the total number of households in metropolitan counties that 
41.19 	are cost-burdened. The number of cost-burdened households shall be determined using the 
41.20 	most recent estimates or experimental estimates provided by the American Community 
41.21 	Survey of the United States Census Bureau as of May 1 of the aid calculation year;.
41.22 	(e) "Locally funded housing expenditures" mean expenditures of the aid recipient, 
41.23 	including expenditures by a public corporation or legal entity created by the aid recipient, 
41.24 	which are:
41.25 	(1) funded from the recipient's general fund, a property tax levy of the recipient or its 
41.26 	housing and redevelopment authority, or unrestricted funds available to the recipient, but 
41.27 	not including tax increments; and
41.28 	(2) expended on one of the following qualifying activities:
41.29 	(i) financial assistance to residents in arrears on rent, mortgage, utilities, or property tax 
41.30 	payments;
41.31 	(ii) support services, case management services, and legal services for residents in arrears 
41.32 	on rent, mortgage, utilities, or property tax payments;
42.1 	(iii) down payment assistance or homeownership education, counseling, and training;
42.2 	(iv) acquisition, construction, rehabilitation, adaptive reuse, improvement, financing, 
42.3 	and infrastructure of residential dwellings;
42.4 	(v) costs of operating emergency shelter, transitional housing, supportive housing, or 
42.5 	publicly owned housing, including costs of providing case management services and support 
42.6 	services; and
42.7 	(vi) rental assistance.
42.8 	(4) (f) "Metropolitan area" has the meaning given in section 473.121, subdivision 2;.
42.9 	(5) (g) "Metropolitan county" has the meaning given in section 473.121, subdivision 4;.
42.10 	(6) (h) "Population" has the meaning given in section 477A.011, subdivision 3; and.
42.11 	(7) (i) "Tier I city" means a statutory or home rule charter city that is a city of the first, 
42.12 	second, or third class and is located in a metropolitan county.

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

42.14 	Sec. 16. Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 4, is amended 
42.15 	to read:
42.16 		Subd. 4.Qualifying projects. (a) Qualifying projects shall include: (1) emergency rental 
42.17 	assistance for households earning less than 80 percent of area median income as determined 
42.18 	by the United States Department of Housing and Urban Development; (2) financial support 
42.19 	to nonprofit affordable housing providers in their mission to provide safe, dignified, 
42.20 	affordable and supportive housing; and (3) projects designed for the purpose of construction, 
42.21 	acquisition, rehabilitation, demolition or removal of existing structures, construction 
42.22 	financing, permanent financing, interest rate reduction, refinancing, and gap financing of 
42.23 	housing to provide affordable housing to households that have incomes which do not exceed, 
42.24 	for homeownership projects, 115 percent of the greater of state or area median income as 
42.25 	determined by the United States Department of Housing and Urban Development, and for 
42.26 	rental housing projects, 80 percent of the greater of state or area median income as determined 
42.27 	by the United States Department of Housing and Urban Development, except that the housing 
42.28 	developed or rehabilitated with funds under this section must be affordable to the local work 
42.29 	force; (4) financing the operations and management of financially distressed residential 
42.30 	properties; and (5) funding of supportive services or staff of supportive services providers 
42.31 	for supportive housing as defined by section 462A.37, subdivision 1. Financial support to 
43.1 	nonprofit housing providers to finance supportive housing operations may be awarded as 
43.2 	a capitalized reserve or as an award of ongoing funding.
43.3 	Projects shall be prioritized (b) Recipients must prioritize projects that provide affordable 
43.4 	housing to households that have incomes which do not exceed, for homeownership projects, 
43.5 	80 percent of the greater of state or area median income as determined by the United States 
43.6 	Department of Housing and Urban Development, and for rental housing projects, 50 percent 
43.7 	of the greater of state or area median income as determined by the United States Department 
43.8 	of Housing and Urban Development. Priority may be given to projects that: reduce disparities 
43.9 	in home ownership; reduce housing cost burden, housing instability, or homelessness; 
43.10 	improve the habitability of homes; create accessible housing; or create more energy- or 
43.11 	water-efficient homes.
43.12 	(b) (c) Gap financing is either:
43.13 	(1) the difference between the costs of the property, including acquisition, demolition, 
43.14 	rehabilitation, and construction, and the market value of the property upon sale; or
43.15 	(2) the difference between the cost of the property and the amount the targeted household 
43.16 	can afford for housing, based on industry standards and practices.
43.17 	(c) (d) If aid under this section is used for demolition or removal of existing structures, 
43.18 	the cleared land must be used for the construction of housing to be owned or rented by 
43.19 	persons who meet the income limits of paragraph (a).
43.20 	(d) (e) If an aid recipient uses the aid on new construction or substantial rehabilitation 
43.21 	of a building containing more than four units, the loan recipient must construct, convert, or 
43.22 	otherwise adapt the building to include:
43.23 	(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
43.24 	accessible units, as defined by section 1002 of the current State Building Code Accessibility 
43.25 	Provisions for Dwelling Units in Minnesota, and include at least one roll-in shower; and
43.26 	(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
43.27 	sensory-accessible units that include:
43.28 	(A) soundproofing between shared walls for first and second floor units;
43.29 	(B) no florescent lighting in units and common areas;
43.30 	(C) low-fume paint;
43.31 	(D) low-chemical carpet; and
43.32 	(E) low-chemical carpet glue in units and common areas.
44.1 	Nothing in this paragraph relieves a project funded by this section from meeting other 
44.2 	applicable accessibility requirements.

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

44.4 	Sec. 17. Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 5, is amended 
44.5 	to read:
44.6 		Subd. 5.Use of proceeds. (a) Any funds distributed under this section must be spent on 
44.7 	a qualifying project. Funds are considered spent on a qualifying project if:
44.8 	(1) a tier I city or county demonstrates to the Minnesota Housing Finance Agency that 
44.9 	the city or county cannot expend funds on a qualifying project by the deadline imposed by 
44.10 	paragraph (b) due to factors outside the control of the city or county; and
44.11 	(2) the funds are transferred to a local housing trust fund.
44.12 	Funds transferred to a local housing trust fund under this paragraph must be spent on a 
44.13 	project or household that meets the affordability requirements of subdivision 4, paragraph 
44.14 	(a).
44.15 	(b) Funds must be spent by December 31 in the third year following the year after the 
44.16 	aid was received:
44.17 	(1) committed to a qualifying project by December 31 in the third year following the 
44.18 	year after the aid was received; and
44.19 	(2) expended by December 31 in the fourth year following the year after the aid was 
44.20 	received.
44.21 	(c) An aid recipient may not use aid funds to reimburse itself for prior expenditures.

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

44.23 	Sec. 18. Minnesota Statutes 2023 Supplement, section 477A.35, is amended by adding a 
44.24 	subdivision to read:
44.25 		Subd. 5a.Maintenance of effort. As a condition of receiving aid under this section, a 
44.26 	recipient must commit in the annual report required under subdivision 6, paragraph (b), to 
44.27 	maintaining its locally funded housing expenditures at a level that is not less than the average 
44.28 	level of such expenditures maintained by the recipient for the three preceding fiscal years.

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

45.1 	Sec. 19. Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 6, is amended 
45.2 	to read:
45.3 		Subd. 6.Administration. (a) The commissioner of revenue must compute the amount 
45.4 	of aid payable to each tier I city and county under this section. By August 1 of each year, 
45.5 	the commissioner must certify the distribution factors of each tier I city and county to be 
45.6 	used in the following year. The commissioner must pay local affordable housing aid annually 
45.7 	at the times provided in section 477A.015, distributing the amounts available on the 
45.8 	immediately preceding June 1 under the accounts established in section 477A.37, subdivisions 
45.9 	2 and 3.
45.10 	(b) Beginning in 2025, tier I cities and counties shall submit a report annually, no later 
45.11 	than December 1 of each year, to the Minnesota Housing Finance Agency. The report must 
45.12 	include documentation of the location of any unspent funds distributed under this section 
45.13 	and of qualifying projects completed or planned with funds under this section. In the report, 
45.14 	a recipient must certify its compliance with subdivision 5a, including an accounting of 
45.15 	locally funded housing expenditures in the three prior fiscal years. If a tier I city or county 
45.16 	fails to submit a report, if a tier I city or county fails to spend funds within the timeline 
45.17 	imposed under subdivision 5, paragraph (b), or if a tier I city or county uses funds for a 
45.18 	project that does not qualify under this section, or if a tier I city or county fails to meet its 
45.19 	maintenance of effort requirement, the Minnesota Housing Finance Agency shall notify the 
45.20 	Department of Revenue and the cities and counties that must repay funds under paragraph 
45.21 	(c) by February 15 of the following year.
45.22 	(c) By May 15, after receiving notice from the Minnesota Housing Finance Agency, a 
45.23 	tier I city or county must pay to the Minnesota Housing Finance Agency funds the city or 
45.24 	county received under this section if the city or county:
45.25 	(1) fails to spend the funds within the time allowed under subdivision 5, paragraph (b);
45.26 	(2) spends the funds on anything other than a qualifying project; or
45.27 	(3) fails to submit a report documenting use of the funds.; or
45.28 	(4) fails to meet the maintenance of effort requirement under subdivision 5a.
45.29 	(d) The commissioner of revenue must stop distributing funds to a tier I city or county 
45.30 	that requests in writing that the commissioner stop payment or that, in three consecutive 
45.31 	years, the Minnesota Housing Finance Agency has reported, pursuant to paragraph (b), to 
45.32 	have failed to use funds, misused funds, or failed to report on its use of funds. A request 
45.33 	under this paragraph must be submitted to the commissioner in the form and manner 
46.1 	prescribed by the commissioner on or before May 1 of the aids payable year that a tier I 
46.2 	city or county requests the commissioner to stop payment of aid. Any request received after 
46.3 	May 1 will apply beginning in the next aids payable year.
46.4 	(e) The commissioner may resume distributing funds to a tier I city or county to which 
46.5 	the commissioner has stopped payments in the year following the August 1 after the 
46.6 	Minnesota Housing Finance Agency certifies that the city or county has submitted 
46.7 	documentation of plans for a qualifying project. The commissioner may resume distributing 
46.8 	funds to a tier I city or county to which the commissioner has stopped payments at the 
46.9 	request of the city or county in the year following the August 1 after the Minnesota Housing 
46.10 	Finance Agency certifies that the city or county has submitted documentation of plans for 
46.11 	a qualifying project.
46.12 	(f) By June 1, any funds paid to the Minnesota Housing Finance Agency under paragraph 
46.13 	(c) must be deposited in the housing development fund. Funds deposited under this paragraph 
46.14 	are appropriated to the commissioner of the Minnesota Housing Finance Agency for use 
46.15 	on the family homeless prevention and assistance program under section 462A.204, the 
46.16 	economic development and housing challenge program under section 462A.33, and the 
46.17 	workforce and affordable homeownership development program under section 462A.38.

46.18 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2025.

46.19 	Sec. 20. Minnesota Statutes 2023 Supplement, section 477A.40, subdivision 4, is amended 
46.20 	to read:
46.21 		Subd. 4.Application. An eligible Tribal Nation may choose to receive an aid distribution 
46.22 	under this section by submitting an application under this subdivision. An eligible Tribal 
46.23 	Nation which has not received a distribution in a prior aids payable year may elect to begin 
46.24 	participation in the program by submitting an application in the manner and form prescribed 
46.25 	by the commissioner of revenue by January 15 of the aids payable year. In order to receive 
46.26 	a distribution, an eligible Tribal Nation must certify to the commissioner of revenue the 
46.27 	most recent estimate of the total number of enrolled members of the eligible Tribal Nation. 
46.28 	The information must be annually certified by March 1 in the form prescribed by the 
46.29 	commissioner of revenue. The commissioner of revenue must annually calculate and certify 
46.30 	the amount of aid payable to each eligible Tribal Nation on or before August 1 by June 1.

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

47.1 	Sec. 21. Minnesota Statutes 2023 Supplement, section 477A.40, subdivision 5, is amended 
47.2 	to read:
47.3 		Subd. 5.Payments. The commissioner of revenue must pay Tribal Nation aid annually 
47.4 	by December 27 July 20 of the year the aid is certified.

47.5 	EFFECTIVE DATE. This section is effective for aid paid in 2025 and thereafter.

47.6 	Sec. 22. Laws 2023, chapter 64, article 4, section 27, is amended by adding a subdivision 
47.7 	to read:
47.8 		Subd. 9.Report. (a) By January 15, 2025, each: (1) local unit that receives aid in an 
47.9 	amount greater than $10,000; (2) county; and (3) Tribal government must report the following 
47.10 	information to the commissioner of public safety in the form and manner approved by that 
47.11 	commissioner:
47.12 	(i) the amount of aid received; and
47.13 	(ii) the ways in which the aid was used or is intended to be used.
47.14 	(b) By February 15, 2025, the commissioner of public safety must compile the information 
47.15 	received from counties, Tribal governments, or local units pursuant to paragraph (a) and 
47.16 	submit the compiled data in a report to the chairs and ranking minority members of the 
47.17 	legislative committees and divisions with jurisdiction over public safety finance and policy 
47.18 	and taxes and property taxes. The report must comply with the requirements of Minnesota 
47.19 	Statutes, sections 3.195 and 3.197.

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

47.21 	Sec. 23. 2023 AID PENALTY FORGIVENESS; CITY OF STEWART.
 47.22 	Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Stewart 
47.23 	must receive its aid payment for calendar year 2023 under Minnesota Statutes, section 
47.24 	477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, 
47.25 	provided that the state auditor certifies to the commissioner of revenue that it received the 
47.26 	annual financial reporting form for 2022 from the city by June 1, 2024. The commissioner 
47.27 	of revenue must make a payment of $87,501.50 to the city by June 30, 2024.

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

48.1 	Sec. 24. 2024 TRIBAL NATION AID.
 48.2 	(a) Notwithstanding any law to the contrary, for calendar year 2024 the commissioner 
48.3 	of revenue must pay Tribal Nation aid under Minnesota Statutes, section 477A.40, by June 
48.4 	20, 2024.
48.5 	(b) $35,000,000 in fiscal year 2024 is appropriated from the general fund to the 
48.6 	commissioner of revenue to make payments required under this section.

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

48.8 	Sec. 25. SUPPLEMENTAL 2024 SOIL AND WATER CONSERVATION DISTRICT 
48.9 	AID DISTRIBUTION.
 48.10 	(a) Supplemental aid for a soil and water conservation district equals the product of:
48.11 	(1) the aid amount under Minnesota Statutes, section 477A.23, subdivision 2, certified 
48.12 	for the soil and water conservation district for aid payable in 2024;
48.13 	(2) the reciprocal of the total amount of aid certified for all soil and water conservation 
48.14 	districts under Minnesota Statutes, section 477A.23, subdivision 2, certified for aid payable 
48.15 	in 2024; and
48.16 	(3) the total appropriation under this section.
48.17 	(b) The Board of Water and Soil Resources must certify the supplemental aid amounts 
48.18 	under this section to the commissioner of revenue and soil and water conservation districts 
48.19 	before August 1, 2024. The commissioner of revenue must pay the supplemental aid amounts 
48.20 	on December 26, 2024.
48.21 	(c) $2,000,000 is appropriated in fiscal year 2025 from the general fund to the 
48.22 	commissioner of revenue for aid under this section. This is a onetime appropriation.

48.23 	EFFECTIVE DATE. This section is effective for aid payable in calendar year 2024.

48.24 	Sec. 26. SUPPLEMENTAL 2024 TOWN AID DISTRIBUTION.
 48.25 	(a) Supplemental aid for a town equals the product of:
48.26 	(1) the aid amount under Minnesota Statutes, section 477A.013, subdivision 1, certified 
48.27 	for the town for aid payable in 2024;
48.28 	(2) the reciprocal of the total amount of aid certified for all towns under Minnesota 
48.29 	Statutes, section 477A.013, subdivision 1, certified for aid payable in 2024; and
48.30 	(3) the total appropriation under this section.
49.1 	(b) The commissioner of revenue must certify supplemental aid amounts under this 
49.2 	section before August 1, 2024, and must pay the aid on December 26, 2024.
49.3 	(c) $2,000,000 is appropriated in fiscal year 2025 from the general fund to the 
49.4 	commissioner of revenue for aid under this section. This is a onetime appropriation.

49.5 	EFFECTIVE DATE. This section is effective for aid payable in calendar year 2024.

49.6 	Sec. 27. PROPERTY TAX EXEMPTION; RED LAKE NATION COLLEGE.
 49.7 	(a) Notwithstanding Minnesota Statutes, section 272.02, subdivision 38, paragraph (b), 
49.8 	and any other law to the contrary, property located in the city of Minneapolis acquired by 
49.9 	Red Lake Nation College Without Borders, LLC in either August 2021 or September 2021 
49.10 	is exempt from property taxes payable in 2022 and the portion of property taxes payable in 
49.11 	2021 due after the property was acquired. The city assessor must provide the property owner 
49.12 	with an application for exemption under this section and the property owner must file the 
49.13 	application with the city assessor by August 1, 2024. An amount necessary to make a 
49.14 	payment to the county for the property taxes attributable to the exemption is appropriated 
49.15 	from the general fund to the commissioner of revenue in fiscal year 2025. This is a onetime 
49.16 	appropriation.
49.17 	(b) By August 1, 2024, the auditor of the county in which the property is located must 
49.18 	certify to the commissioner of revenue the amount to be paid by the commissioner of revenue 
49.19 	to the county under paragraph (a). The commissioner of revenue must make this payment 
49.20 	by August 15, 2024.

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

49.22 	Sec. 28. REPEALER.
 49.23 	Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 1, is repealed.

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

49.25 	ARTICLE 3
49.26 	MINERALS

49.27 	Section 1. Minnesota Statutes 2022, section 123B.53, subdivision 1, is amended to read:
49.28 		Subdivision 1.Definitions. (a) For purposes of this section, the eligible debt service 
49.29 	revenue of a district is defined as follows:
50.1 	(1) the amount needed to produce between five and six percent in excess of the amount 
50.2 	needed to meet when due the principal and interest payments on the obligations of the district 
50.3 	for eligible projects according to subdivision 2, excluding the amounts listed in paragraph 
50.4 	(b), minus
50.5 	(2) the amount of debt service excess levy reduction for that school year calculated 
50.6 	according to the procedure established by the commissioner.
50.7 	(b) The obligations in this paragraph are excluded from eligible debt service revenue:
50.8 	(1) obligations under section 123B.61;
50.9 	(2) the part of debt service principal and interest paid from the taconite environmental 
50.10 	protection fund or Douglas J. Johnson economic protection trust, excluding the portion of 
50.11 	taconite payments from the Iron Range school consolidation and cooperatively operated 
50.12 	school schools and community development account under section 298.28, subdivision 7a;
50.13 	(3) obligations for long-term facilities maintenance under section 123B.595;
50.14 	(4) obligations under section 123B.62; and
50.15 	(5) obligations equalized under section 123B.535.
50.16 	(c) For purposes of this section, if a preexisting school district reorganized under sections 
50.17 	123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement of the 
50.18 	preexisting district's bonded indebtedness or capital loans, debt service equalization aid 
50.19 	must be computed separately for each of the preexisting districts.
50.20 	(d) For purposes of this section, the adjusted net tax capacity determined according to 
50.21 	sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property 
50.22 	generally exempted from ad valorem taxes under section 272.02, subdivision 64.

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

50.24 	Sec. 2. Minnesota Statutes 2022, section 273.135, subdivision 2, is amended to read:
50.25 		Subd. 2.Reduction amount. The amount of the reduction authorized by subdivision 1 
50.26 	shall be:
50.27 	(a) In the case of property located within a municipality as defined under section 273.134, 
50.28 	paragraph (a), 66 percent of the tax, provided that the reduction shall not exceed the 
50.29 	maximum amounts specified in paragraph (c).
50.30 	(b) In the case of property located within the boundaries of a school district which 
50.31 	qualifies as a tax relief area under section 273.134, paragraph (b), but which is outside the 
51.1 	boundaries of a municipality which meets the qualifications prescribed in section 273.134, 
51.2 	paragraph (a), 57 percent of the tax, provided that the reduction shall not exceed the 
51.3 	maximum amounts specified in paragraph (c).
51.4 	(c) The maximum reduction of the tax is $315.10 $515 on property described in paragraph 
51.5 	(a) and $289.80 on property described in paragraph (b).

51.6 	EFFECTIVE DATE. This section is effective beginning with property taxes payable 
51.7 	in 2025.

51.8 	Sec. 3. Minnesota Statutes 2022, section 275.065, is amended by adding a subdivision to 
51.9 	read:
51.10 		Subd. 3c.Notice of proposed taxes; property subject to chapter 276A. In the case of 
51.11 	property subject to the areawide tax under section 276A.06, subdivision 7, for both the 
51.12 	current year taxes and the proposed tax amounts, the net tax capacity portion of the taxes 
51.13 	shown for each taxing jurisdiction must be based on the property's total net tax capacity 
51.14 	multiplied by the jurisdiction's actual or proposed net tax capacity tax rate. In addition to 
51.15 	the tax amounts shown for each jurisdiction, the statement must include a line showing the 
51.16 	"fiscal disparities adjustment" equal to the total gross tax payable minus the sum of the tax 
51.17 	amounts shown for the individual taxing jurisdictions. The fiscal disparities adjustment may 
51.18 	be a negative number. If the fiscal disparities adjustment for either the current year taxes 
51.19 	or the proposed tax amount is a negative number, the percentage change must not be shown. 
51.20 	In all other respects the statement must fulfill the requirements of subdivision 3.

51.21 	EFFECTIVE DATE. This section is effective beginning with proposed notices for 
51.22 	property taxes payable in 2025.

51.23 	Sec. 4. Minnesota Statutes 2022, section 276.04, is amended by adding a subdivision to 
51.24 	read:
51.25 		Subd. 2a.Contents of tax statements; property subject to chapter 276A. In the case 
51.26 	of property subject to the areawide tax under section 276A.06, subdivision 7, for both the 
51.27 	current year taxes and the previous year tax amounts, the net tax capacity portion of the tax 
51.28 	shown for each taxing jurisdiction must be based on the property's total net tax capacity 
51.29 	multiplied by the jurisdiction's net tax capacity tax rate. In addition to the tax amounts shown 
51.30 	for each jurisdiction, the statement must include a line showing the "fiscal disparities 
51.31 	adjustment" equal to the total gross tax payable minus the sum of the tax amounts shown 
51.32 	for the individual taxing jurisdictions for each year. The fiscal disparities adjustment may 
52.1 	be a negative number. In all other respects the statement must fulfill the requirements of 
52.2 	subdivision 2.

52.3 	EFFECTIVE DATE. This section is effective beginning with proposed notices for 
52.4 	property taxes payable in 2025.

52.5 	Sec. 5. Minnesota Statutes 2022, section 276A.01, subdivision 17, is amended to read:
52.6 		Subd. 17.School fund allocation. (a) "School fund allocation" means an amount up to 
52.7 	25 percent of the areawide levy certified by the commissioner of Iron Range resources and 
52.8 	rehabilitation, after consultation with the Iron Range Resources and Rehabilitation Board, 
52.9 	to be used for the purposes of the Iron Range school consolidation and cooperatively operated 
52.10 	school schools and community development account under section 298.28, subdivision 7a.
52.11 	(b) The allocation under paragraph (a) shall only be made after the commissioner of 
52.12 	Iron Range resources and rehabilitation, after consultation with the Iron Range Resources 
52.13 	and Rehabilitation Board, has certified by June 30 that the Iron Range school consolidation 
52.14 	and cooperatively operated schools and community development account has insufficient 
52.15 	funds to make payments as authorized under section 298.28, subdivision 7a.

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

52.17 	Sec. 6. Minnesota Statutes 2022, section 276A.06, subdivision 8, is amended to read:
52.18 		Subd. 8.Certification of values; payment. The administrative auditor shall determine 
52.19 	for each county the difference between the total levy on distribution value pursuant to 
52.20 	subdivision 3, clause (1), including the school fund allocation within the county and the 
52.21 	total tax on contribution value pursuant to subdivision 7, within the county. On or before 
52.22 	May 16 of each year, the administrative auditor shall certify the differences so determined 
52.23 	and the county's portion of the school fund allocation to each county auditor. In addition, 
52.24 	the administrative auditor shall certify to those county auditors for whose county the total 
52.25 	tax on contribution value exceeds the total levy on distribution value the settlement the 
52.26 	county is to make to the other counties of the excess of the total tax on contribution value 
52.27 	over the total levy on distribution value in the county. On or before June 15 and November 
52.28 	15 of each year, each county treasurer in a county having a total tax on contribution value 
52.29 	in excess of the total levy on distribution value shall pay one-half of the excess to the other 
52.30 	counties in accordance with the administrative auditor's certification. On or before June 15 
52.31 	and November 15 of each year, each county treasurer shall pay to the administrative auditor 
52.32 	that county's share of the school fund allocation. On or before December 1 of each year, 
52.33 	the administrative auditor shall pay the school fund allocation to the commissioner of Iron 
53.1 	Range resources and rehabilitation for deposit in the Iron Range school consolidation and 
53.2 	cooperatively operated schools and community development account.

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

53.4 	Sec. 7. Minnesota Statutes 2023 Supplement, section 298.018, subdivision 1, is amended 
53.5 	to read:
53.6 		Subdivision 1.Within taconite assistance area. (a) The proceeds of the tax paid under 
53.7 	sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the 
53.8 	taconite assistance area defined in section 273.1341, shall be allocated as follows:
53.9 	(1) except as provided under paragraph (b), five percent to the city or town within which 
53.10 	the minerals or energy resources are mined or extracted, or within which the concentrate 
53.11 	was produced. If the mining and concentration, or different steps in either process, are 
53.12 	carried on in more than one taxing district, the commissioner shall apportion equitably the 
53.13 	proceeds among the cities and towns by attributing 50 percent of the proceeds of the tax to 
53.14 	the operation of mining or extraction, and the remainder to the concentrating plant and to 
53.15 	the processes of concentration, and with respect to each thereof giving due consideration 
53.16 	to the relative extent of the respective operations performed in each taxing district;
53.17 	(2) ten percent to the taconite municipal aid account to be distributed as provided in 
53.18 	section 298.282, subdivisions 1 and 2, on the dates provided under this section;
53.19 	(3) ten percent to the school district within which the minerals or energy resources are 
53.20 	mined or extracted, or within which the concentrate was produced. If the mining and 
53.21 	concentration, or different steps in either process, are carried on in more than one school 
53.22 	district, distribution among the school districts must be based on the apportionment formula 
53.23 	prescribed in clause (1);
53.24 	(4) 20 percent to a group of school districts comprised of those school districts wherein 
53.25 	the mineral or energy resource was mined or extracted or in which there is a qualifying 
53.26 	municipality as defined by section 273.134, paragraph (b), in direct proportion to school 
53.27 	district indexes as follows: for each school district, its pupil units determined under section 
53.28 	126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted 
53.29 	net tax capacity per pupil unit for school districts receiving aid under this clause as calculated 
53.30 	pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution 
53.31 	to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that 
53.32 	portion of the distribution which its index bears to the sum of the indices for all school 
53.33 	districts that receive the distributions;
54.1 	(5) ten percent to the county within which the minerals or energy resources are mined 
54.2 	or extracted, or within which the concentrate was produced. If the mining and concentration, 
54.3 	or different steps in either process, are carried on in more than one county, distribution 
54.4 	among the counties must be based on the apportionment formula prescribed in clause (1), 
54.5 	provided that any county receiving distributions under this clause shall pay one percent of 
54.6 	its proceeds to the Range Association of Municipalities and Schools;
54.7 	(6) five percent to St. Louis County acting as the counties' fiscal agent to be distributed 
54.8 	as provided in sections 273.134 to 273.136;
54.9 	(7) 20 percent to the commissioner of Iron Range resources and rehabilitation for the 
54.10 	purposes of section 298.22;
54.11 	(8) three percent to the Douglas J. Johnson economic protection trust fund;
54.12 	(9) seven percent to the taconite environmental protection fund; and
54.13 	(10) ten percent to the commissioner of Iron Range resources and rehabilitation for 
54.14 	capital improvements to Giants Ridge Recreation Area.
54.15 	(b) If the materials or energy resources are mined, extracted, or concentrated in School 
54.16 	District No. 2711, Mesabi East, then the amount under paragraph (a), clause (1), must instead 
54.17 	be distributed pursuant to this paragraph. The cities of Aurora, Babbitt, Ely, and Hoyt Lakes 
54.18 	must each receive 20 percent of the amount. The city of Biwabik and Embarrass Township 
54.19 	must each receive ten percent of the amount.
54.20 	(c) For the first five years that tax paid under section 298.015, subdivisions 1 and 2, is 
54.21 	distributed under this subdivision, ten percent of the total proceeds distributed in each year 
54.22 	must first be distributed pursuant to this paragraph. The remaining 90 percent of the total 
54.23 	proceeds distributed in each of those years must be distributed as outlined in paragraph (a). 
54.24 	Of the amount available under this paragraph, the cities of Aurora, Babbitt, Ely, and Hoyt 
54.25 	Lakes must each receive 20 percent. Of the amount available under this paragraph, the city 
54.26 	of Biwabik and Embarrass Township must each receive ten percent. This paragraph applies 
54.27 	only to tax paid by a person engaged in the business of mining within the area described in 
54.28 	section 273.1341, clauses (1) and (2).

54.29 	EFFECTIVE DATE. This section is effective beginning with the 2025 distribution.

55.1 	Sec. 8. Minnesota Statutes 2022, section 298.17, is amended to read:
55.2 	298.17 OCCUPATION TAXES TO BE APPORTIONED.
55.3 	(a) All occupation taxes paid by persons, copartnerships, companies, joint stock 
55.4 	companies, corporations, and associations, however or for whatever purpose organized, 
55.5 	engaged in the business of mining or producing iron ore or other ores, when collected shall 
55.6 	be apportioned and distributed in accordance with the Constitution of the state of Minnesota, 
55.7 	article X, section 3, in the manner following: 90 percent shall be deposited in the state 
55.8 	treasury and credited to the general fund of which four-ninths shall be used for the support 
55.9 	of elementary and secondary schools; and ten percent of the proceeds of the tax imposed 
55.10 	by this section shall be deposited in the state treasury and credited to the general fund for 
55.11 	the general support of the university.
55.12 	(b) Of the money apportioned to the general fund by this section: (1) there is annually 
55.13 	appropriated and credited to the mining environmental and regulatory account in the special 
55.14 	revenue fund an amount equal to that which would have been generated by a 2-1/2 cent tax 
55.15 	imposed by section 298.24 on each taxable ton produced in the preceding calendar year. 
55.16 	Money in the mining environmental and regulatory account is appropriated annually to the 
55.17 	commissioner of natural resources to fund agency staff to work on environmental issues 
55.18 	and provide regulatory services for ferrous and nonferrous mining operations in this state. 
55.19 	Payment to the mining environmental and regulatory account shall be made by July 1 
55.20 	annually. The commissioner of natural resources shall execute an interagency agreement 
55.21 	with the Pollution Control Agency to assist with the provision of environmental regulatory 
55.22 	services such as monitoring and permitting required for ferrous and nonferrous mining 
55.23 	operations; (2) there is annually appropriated and credited to the Iron Range resources and 
55.24 	rehabilitation account in the special revenue fund an amount equal to that which would have 
55.25 	been generated by a 1.5 cent tax imposed by section 298.24 on each taxable ton produced 
55.26 	in the preceding calendar year, to be expended for the purposes of section 298.22; and (3) 
55.27 	there is annually appropriated and credited to the Iron Range resources and rehabilitation 
55.28 	account in the special revenue fund for transfer to the Iron Range school consolidation and 
55.29 	cooperatively operated school schools and community development account under section 
55.30 	298.28, subdivision 7a, an amount equal to that which would have been generated by a six 
55.31 	cent tax imposed by section 298.24 on each taxable ton produced in the preceding calendar 
55.32 	year. Payment to the Iron Range resources and rehabilitation account shall be made by May 
55.33 	15 annually.
55.34 	(c) The money appropriated pursuant to paragraph (b), clause (2), shall be used (i) to 
55.35 	provide environmental development grants to local governments located within any county 
56.1 	in region 3 as defined in governor's executive order number 60, issued on June 12, 1970, 
56.2 	which does not contain a municipality qualifying pursuant to section 273.134, paragraph 
56.3 	(b), or (ii) to provide economic development loans or grants to businesses located within 
56.4 	any such county, provided that the county board or an advisory group appointed by the 
56.5 	county board to provide recommendations on economic development shall make 
56.6 	recommendations to the commissioner of Iron Range resources and rehabilitation regarding 
56.7 	the loans. Payment to the Iron Range resources and rehabilitation account shall be made by 
56.8 	May 15 annually.
56.9 	(d) Of the money allocated to Koochiching County, one-third must be paid to the 
56.10 	Koochiching County Economic Development Commission.

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

56.12 	Sec. 9. Minnesota Statutes 2022, section 298.2215, subdivision 1, is amended to read:
56.13 		Subdivision 1.Establishment. A county may establish a scholarship fund from any 
56.14 	unencumbered revenue received pursuant to section 298.018, 298.28, 298.39, 298.396, or 
56.15 	298.405 or any law imposing a tax upon severed mineral values. Scholarships must be used 
56.16 	at a two-year Minnesota State Colleges and Universities institution, or an accredited skilled 
56.17 	trades program, within the county. The county shall establish procedures for applying for 
56.18 	and distributing the scholarships.

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

56.20 	Sec. 10. Minnesota Statutes 2023 Supplement, section 298.28, subdivision 7a, is amended 
56.21 	to read:
56.22 		Subd. 7a.Iron Range school consolidation and cooperatively operated school schools 
56.23 	and community development account. (a) The following amounts must be allocated to 
56.24 	the commissioner of Iron Range resources and rehabilitation to be deposited in the Iron 
56.25 	Range school consolidation and cooperatively operated school schools and community 
56.26 	development account that is hereby created:
56.27 	(1) for distributions beginning in 2015, ten cents per taxable ton of the tax imposed under 
56.28 	section 298.24;
56.29 	(2) the amount as determined under section 298.17, paragraph (b), clause (3); and
56.30 	(3) any other amount as provided by law.
57.1 	(b) Expenditures from this account may be approved as ongoing annual expenditures 
57.2 	and shall be made only to provide disbursements to assist school districts with the payment 
57.3 	of bonds that were issued for qualified school projects, or for any other school disbursement 
57.4 	as approved by the commissioner of Iron Range resources and rehabilitation after consultation 
57.5 	with the Iron Range Resources and Rehabilitation Board. For purposes of this section, 
57.6 	"qualified school projects" means school projects within the taconite assistance area as 
57.7 	defined in section 273.1341, that were (1) approved, by referendum, after April 3, 2006; 
57.8 	and (2) approved by the commissioner of education pursuant to section 123B.71.
57.9 	(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for 
57.10 	bonds issued under section 123A.482, subdivision 9, must be increased each year to offset 
57.11 	any reduction in debt service equalization aid that the school district qualifies for in that 
57.12 	year, under section 123B.53, subdivision 6, compared with the amount the school district 
57.13 	qualified for in fiscal year 2018.
57.14 	(d) No expenditure under this section shall be made unless approved by the commissioner 
57.15 	of Iron Range resources and rehabilitation after consultation with the Iron Range Resources 
57.16 	and Rehabilitation Board.

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

57.18 	Sec. 11. Minnesota Statutes 2022, section 298.28, subdivision 8, is amended to read:
57.19 		Subd. 8.Range Association of Municipalities and Schools. .30 0.50 cent per taxable 
57.20 	ton shall be paid to the Range Association of Municipalities and Schools, for the purpose 
57.21 	of providing an areawide approach to problems which demand coordinated and cooperative 
57.22 	actions and which are common to those areas of northeast Minnesota affected by operations 
57.23 	involved in mining iron ore and taconite and producing concentrate therefrom, and for the 
57.24 	purpose of promoting the general welfare and economic development of the cities, towns, 
57.25 	and school districts within the Iron Range area of northeast Minnesota.

57.26 	EFFECTIVE DATE. This section is effective beginning with the 2024 distribution.

57.27 	Sec. 12. Minnesota Statutes 2023 Supplement, section 298.28, subdivision 16, is amended 
57.28 	to read:
57.29 		Subd. 16.Transfer. Of the amount annually distributed to the Douglas J. Johnson 
57.30 	Economic Protection Trust Fund under this section, $3,500,000 the following amounts shall 
57.31 	be transferred to the Iron Range school consolidation and cooperatively operated school
57.32 	schools and community development account under subdivision 7a: for distribution year 
58.1 	2024, $6,250,000; for distribution year 2025 through distribution year 2029, $6,500,000; 
58.2 	for distribution year 2030 through distribution year 2034, $5,500,000; for distribution year 
58.3 	2035 and distribution year 2036, $5,000,000; and for distribution year 2037 through 
58.4 	distribution year 2041, $3,500,000. Any remaining amount of the amount annually distributed 
58.5 	to the Douglas J. Johnson Economic Protection Trust Fund shall be transferred to the Iron 
58.6 	Range resources and rehabilitation account under subdivision 7. The transfers under this 
58.7 	subdivision must be made within ten days of the August payment.

58.8 	EFFECTIVE DATE. This section is effective beginning with the 2024 distribution.

58.9 	Sec. 13. Minnesota Statutes 2022, section 298.282, subdivision 1, is amended to read:
58.10 		Subdivision 1.Distribution of taconite municipal aid account. (a) The amount 
58.11 	deposited with the county as provided in section 298.28, subdivision 3, must be distributed 
58.12 	as provided by this section among: (1) the municipalities located within a taconite assistance 
58.13 	area under section 273.1341 that meet the criteria of section 273.1341, clause (1) or (2); (2) 
58.14 	a township that contains a state park consisting primarily of an underground iron ore mine; 
58.15 	(3) a city located within five miles of that state park; and (4) Breitung Township in St. Louis 
58.16 	County, each being referred to in this section as a qualifying municipality. The distribution 
58.17 	to Breitung Township under this subdivision shall be $15,000 $25,000 annually.
58.18 	(b) The amount deposited in the state general fund as provided in section 298.018, 
58.19 	subdivision 1, must be distributed in the same manner as provided under paragraph (a), 
58.20 	except that subdivisions 3, 4, and 5 do not apply, and the distributions shall be made on the 
58.21 	dates provided under section 298.018, subdivision 1a.

58.22 	EFFECTIVE DATE. This section is effective beginning with the 2024 distribution.

58.23 	Sec. 14. Minnesota Statutes 2022, section 298.292, subdivision 2, is amended to read:
58.24 		Subd. 2.Use of money. (a) Money in the Douglas J. Johnson economic protection trust 
58.25 	fund may be used for the following purposes:
58.26 	(1) to provide loans, loan guarantees, interest buy-downs and other forms of participation 
58.27 	with private sources of financing, but a loan to a private enterprise shall be for a principal 
58.28 	amount not to exceed one-half of the cost of the project for which financing is sought, and 
58.29 	the rate of interest on a loan to a private enterprise shall be no less than the lesser of eight 
58.30 	percent or an interest rate three percentage points less than a full faith and credit obligation 
58.31 	of the United States government of comparable maturity, at the time that the loan is approved;
59.1 	(2) to fund reserve accounts established to secure the payment when due of the principal 
59.2 	of and interest on bonds issued pursuant to section 298.2211, including bonds authorized 
59.3 	by the legislature to be repaid from the distributions under section 298.28, subdivision 7a;
59.4 	(3) to pay in periodic payments or in a lump-sum payment any or all of the interest on 
59.5 	bonds issued pursuant to chapter 474 for the purpose of constructing, converting, or 
59.6 	retrofitting heating facilities in connection with district heating systems or systems utilizing 
59.7 	alternative energy sources;
59.8 	(4) to invest in a venture capital fund or enterprise that will provide capital to other 
59.9 	entities that are engaging in, or that will engage in, projects or programs that have the 
59.10 	purposes set forth in subdivision 1. No investments may be made in a venture capital fund 
59.11 	or enterprise unless at least two other unrelated investors make investments of at least 
59.12 	$500,000 in the venture capital fund or enterprise, and the investment by the Douglas J. 
59.13 	Johnson economic protection trust fund may not exceed the amount of the largest investment 
59.14 	by an unrelated investor in the venture capital fund or enterprise. For purposes of this 
59.15 	subdivision, an "unrelated investor" is a person or entity that is not related to the entity in 
59.16 	which the investment is made or to any individual who owns more than 40 percent of the 
59.17 	value of the entity, in any of the following relationships: spouse, parent, child, sibling, 
59.18 	employee, or owner of an interest in the entity that exceeds ten percent of the value of all 
59.19 	interests in it. For purposes of determining the limitations under this clause, the amount of 
59.20 	investments made by an investor other than the Douglas J. Johnson economic protection 
59.21 	trust fund is the sum of all investments made in the venture capital fund or enterprise during 
59.22 	the period beginning one year before the date of the investment by the Douglas J. Johnson 
59.23 	economic protection trust fund; and
59.24 	(5) to purchase forest land in the taconite assistance area defined in section 273.1341 to 
59.25 	be held and managed as a public trust for the benefit of the area for the purposes authorized 
59.26 	in section 298.22, subdivision 5a. Property purchased under this section may be sold by the 
59.27 	commissioner, after consultation with the advisory board. The net proceeds must be deposited 
59.28 	in the trust fund for the purposes and uses of this section.
59.29 	(b) Money from the trust fund shall be expended only in or for the benefit of the taconite 
59.30 	assistance area defined in section 273.1341.
59.31 	(c) Money devoted to the trust fund under this section shall not be expended, appropriated, 
59.32 	or transferred from the trust fund for any purpose except as provided in this section.

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

60.1 	Sec. 15. IRON RANGE RESOURCES AND REHABILITATION COMMISSIONER; 
60.2 	BONDS AUTHORIZED IN 2024.
 60.3 		Subdivision 1.Issuance; purpose. (a) Notwithstanding any provision of Minnesota 
60.4 	Statutes, chapter 298, to the contrary, the commissioner of Iron Range resources and 
60.5 	rehabilitation shall, in 2024, issue revenue bonds in a principal amount of up to $49,000,000 
60.6 	plus an amount sufficient to pay costs of issuance in one or more series, and thereafter may 
60.7 	issue bonds to refund those bonds. The proceeds of the bonds must be used to pay the costs 
60.8 	of issuance and to make distributions pursuant this section. The commissioner of Iron Range 
60.9 	resources and rehabilitation must distribute these transferred funds as outlined in this section. 
60.10 	In order to receive a distribution, a recipient must submit to the commissioner a plan of how 
60.11 	the distribution will be spent and the commissioner must ensure that the plan matches the 
60.12 	intended use outlined in this section. The plan must be submitted in a form and manner 
60.13 	determined by the commissioner. The uses listed are not subject to review or recommendation 
60.14 	by the Iron Range Resources and Rehabilitation Board. For all distributions equal to or 
60.15 	greater than $1,000,000, a recipient must appear and present and provide a copy of the plan 
60.16 	to the Iron Range Resources and Rehabilitation Board. By December 31, 2025, each recipient 
60.17 	must report to the commissioner how the distribution received under this section was spent. 
60.18 	If a recipient's plan is submitted and approved, the commissioner must distribute the funds 
60.19 	for the uses outlined in subdivision 3. The bonds issued under this section do not constitute 
60.20 	public debt as that term is defined in article XI, section 4 of the Minnesota Constitution, 
60.21 	and as such are not subject to its provisions.
60.22 	(b) If the commissioner of Iron Range resources and rehabilitation determines that 
60.23 	available funds, other than through the issuance of bonds pursuant to subdivision 1, shall 
60.24 	be used to make grants as provided in subdivision 3, the requirements of subdivision 1, 
60.25 	relating to the submission of a plan and report to the commissioner of Iron Range resources 
60.26 	and rehabilitation and the Iron Range Resources and Rehabilitation Board, and subdivision 
60.27 	3, relating to the grant amount and identified purpose, shall apply.
60.28 	(c) Funds under this section are available for four years from the date the bonds are 
60.29 	issued. Any unexpended funds after that date cancel to the taconite environmental fund 
60.30 	under Minnesota Statutes, section 298.28, subdivision 9b.
60.31 		Subd. 2.Appropriation. (a) Notwithstanding Minnesota Statutes, section 298.28, 
60.32 	subdivision 7a, paragraph (b), there is annually appropriated from the distribution of the 
60.33 	taconite production tax revenues under Minnesota Statutes, section 298.28, subdivision 7a, 
60.34 	prior to the calculation of any amount remaining, an amount sufficient to pay when due the 
60.35 	principal and interest on the bonds issued pursuant to subdivision 1.
61.1 	(b) If in any year the amount available under paragraph (a) is insufficient to pay principal 
61.2 	and interest due on the bonds in that year, an additional amount is appropriated from the 
61.3 	Douglas J. Johnson economic protection trust fund to make up the deficiency.
61.4 	(c) The appropriation under this subdivision terminates upon payment or maturity of 
61.5 	the last of the bonds issued under this section.
61.6 	(d) Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the 
61.7 	commissioner of Iron Range resources and rehabilitation must not use any amount of the 
61.8 	appropriation under this subdivision for administrative costs.
61.9 		Subd. 3.Grants. (a) The commissioner of Iron Range resources and rehabilitation must 
61.10 	distribute funds available for distribution under subdivision 1 for the following uses:
61.11 	(1) $160,000 to the Grand Portage Band of Lake Superior Chippewa to construct a 
61.12 	playground;
61.13 	(2) $3,600,000 to the Mesabi Fit Coalition for the renovation, reconstruction, and 
61.14 	expansion of the former Mesabi Family YMCA in the city of Mountain Iron;
61.15 	(3) $950,000 to the Buyck Volunteer Fire Department for design, engineering, and 
61.16 	construction of a new fire and training hall and related equipment;
61.17 	(4) $750,000 to the Voyageur Trail Society for a joint maintenance facility with Voyageur 
61.18 	Country ATV in the city of Orr;
61.19 	(5) $2,250,000 to Cook County, of which $250,000 must be spent to preserve affordable 
61.20 	housing units for seniors in the city of Grand Marais and $2,000,000 must be used to 
61.21 	construct, furnish, and equip a solid waste transfer station in the county;
61.22 	(6) $1,255,000 to the Northland Learning Center for construction costs;
61.23 	(7) $2,720,000 to the city of Chisholm, of which $1,520,000 must be used for the 
61.24 	renovation of the Chisholm Ice Arena facility and parking and the remaining amount must 
61.25 	be used for the public safety works;
61.26 	(8) $1,000,000 to the city of Gilbert for the Gilbert Community Center;
61.27 	(9) $360,000 to the city of Biwabik for housing infrastructure;
61.28 	(10) $3,000,000 to the city of Tower for water management infrastructure projects;
61.29 	(11) $3,000,000 to the city of Silver Bay to design, engineer, construct, and reconstruct 
61.30 	publicly owned infrastructure including sewers, water systems, utility extensions, street 
62.1 	construction, wastewater treatment, stormwater management systems, sidewalks, and 
62.2 	compliance with the Americans with Disabilities Act;
62.3 	(12) $2,000,000 to St. Louis County for the development of the Canyon Integrated Solid 
62.4 	Waste Management Campus;
62.5 	(13) $3,890,000 to the city of Eveleth to design, engineer, and construct public utilities 
62.6 	in its business park and construction of the Hat Trick Avenue slip ramp;
62.7 	(14) $700,000 to the city of Meadowlands for costs related to park improvements and 
62.8 	a community center;
62.9 	(15) $600,000 to School District No. 2142, St. Louis County, of which $400,000 must 
62.10 	be used for septic system upgrades at South Ridge School and $200,000 must be used for 
62.11 	cafeteria renovations at Northeast Range School in Babbitt and Tower Elementary School 
62.12 	in Tower;
62.13 	(16) $250,000 to the city of Two Harbors for band stand repairs and Odegard Park and 
62.14 	Trail restoration;
62.15 	(17) $850,000 to the Central Iron Range Sanitary Sewer District for infrastructure 
62.16 	projects;
62.17 	(18) $5,240,000 to the Minnesota Discovery Center to design, construct, renovate, 
62.18 	furnish, and repair facilities, including HVAC upgrades, demolition, and compliance with 
62.19 	the Americans with Disabilities Act, at the Minnesota Discovery Center in the city of 
62.20 	Chisholm, and for historical research funding;
62.21 	(19) $4,200,000 to the commissioner of Iron Range resources and rehabilitation for the 
62.22 	design, engineering, and upgrades or replacement of chair lifts or an irrigation system, and 
62.23 	for the design, engineering, demolition, and construction of a nordic and welcome center 
62.24 	at the Giants Ridge Recreation Area;
62.25 	(20) $250,000 to Independent School District No. 696, Ely, for baseball field renovation;
62.26 	(21) $500,000 to the city of Mountain Iron for the Outdoor Recreation Center;
62.27 	(22) $200,000 to Cook County Higher Education Board for costs to bring commercial 
62.28 	drivers' licenses and trades training to the region along with educational training and academic 
62.29 	support to remote populations;
62.30 	(23) $200,000 to Save Our Ship, Inc., for renovation costs;
62.31 	(24) $3,000,000 to Hibbing Public Utilities for water infrastructure projects;
63.1 	(25) $400,000 to Veterans On The Lake for demolition of existing structures and the 
63.2 	building of a triplex that is compliant with the Americans with Disabilities Act;
63.3 	(26) $350,000 to the city of Eveleth for the Hippodrome renovation;
63.4 	(27) $500,000 to the Great Expectations School Foundation in Cook County for school 
63.5 	facilities construction;
63.6 	(28) $225,000 to the Minnesota Forest Zone Trappers Association to plan, engineer, 
63.7 	purchase land, and develop the Sportsperson Training and Development Center;
63.8 	(29) $200,000 to the Sturgeon Chain Lake Association to update the engineering and 
63.9 	hydrology study of the lakes, for regulatory and community outreach, and for preparing 
63.10 	recommendations to the commissioner of natural resources related to bank stabilization and 
63.11 	maintenance;
63.12 	(30) $300,000 to the Northern Lights Music Festival to support programs, of this amount 
63.13 	$100,000 is available each year in calendar years 2025, 2026, and 2027;
63.14 	(31) $250,000 to Cherry Township for recreational facilities upgrades and lights;
63.15 	(32) $350,000 to the East Range Developmental Achievement Center for building 
63.16 	renovations;
63.17 	(33) $500,000 to the Northland Foundation for grants or loans to (i) businesses or resorts 
63.18 	that were economically damaged by floods that occurred in 2022 or 2023 and which are 
63.19 	eligible under article 5 of the Canadian border counties economic relief program, or (ii) 
63.20 	outfitters in the border region who experienced either more than a 50 percent reduction in 
63.21 	Boundary Waters Canoe Area Wilderness permits obtained by their customers between 
63.22 	2019 and 2021, or a 50 percent reduction between 2019 and 2021 in trips across the fee-based 
63.23 	mechanical portages into the Boundary Waters Canoe Area Wilderness or Quetico Provincial 
63.24 	Park. Businesses may be awarded a maximum grant under this clause of up to $50,000, 
63.25 	must be located within the taconite assistance area, as defined under Minnesota Statutes, 
63.26 	section 273.1341, and must not have received a grant under the Canadian border counties 
63.27 	economic relief program. The Northland Foundation may retain up to four percent of the 
63.28 	amount under this clause for administration;
63.29 	(34) $100,000 to Crystal Bay Township for a septic project at the Clair Nelson 
63.30 	Community Center;
63.31 	(35) $25,000 to the Northwoods Friends of the Arts in the city of Cook for facility 
63.32 	upgrades and programs;
64.1 	(36) $50,000 to the Bois Forte Band of Chippewa for food shelf expenses;
64.2 	(37) $100,000 to the Lake Vermilion Cultural Center to improve and renovate the facility 
64.3 	and its displays in Tower;
64.4 	(38) $50,000 to the Lyric Center for the Arts in Virginia for repairs and renovation;
64.5 	(39) $50,000 to the Pioneer Mine historical site for maintenance and displays in Ely;
64.6 	(40) $2,625,000 to the commissioner of Iron Range resources and rehabilitation to create 
64.7 	a mountain bike system in northern St. Louis County;
64.8 	(41) $150,000 to the Lake Superior School District to support an emergency preparedness 
64.9 	career introduction program;
64.10 	(42) $200,000 to the city of Babbitt for ADA compliance and renovations to the city's 
64.11 	parks;
64.12 	(43) $75,000 to the Vermilion Penguins Snowmobile Club and $75,000 to the Cook 
64.13 	Timberwolves Snowmobile Club, to update maintenance equipment and trail programs;
64.14 	(44) $500,000 to the Arrowhead Economic Opportunity Agency to design, engineer, 
64.15 	acquire land, and start construction of a new facility in Hibbing to meet the needs of the 
64.16 	population on the west end of the Mesabi Iron Range;
64.17 	(45) $500,000 to Lone Pine Township to design, engineer, and begin construction for 
64.18 	its sewage treatment plan in partnership with the city of Nashwauk; and
64.19 	(46) $500,000 for grants of $25,000 distributed pursuant to paragraph (b).
64.20 	(b) Of the amount under paragraph (a), clause (46), grants of $25,000 to be used for trail 
64.21 	grooming costs or equipment must be made available to the following entities:
64.22 	(1) Alborn Dirt Devils ATV Club;
64.23 	(2) Wild Country ATV Club;
64.24 	(3) Ely Igloo Snowmobile Club;
64.25 	(4) CC Riders Snowmobile Club;
64.26 	(5) PathBlazers Snowmobile Club;
64.27 	(6) Cook Timberwolves Snowmobile Club;
64.28 	(7) Crane Lake Voyageurs Club;
64.29 	(8) Pequaywan Area Trail Blazers Snowmobile Club;
65.1 	(9) Eveleth Trail Hawks Snowmobile Club;
65.2 	(10) Ranger Snowmobile/ATV Club;
65.3 	(11) Silver Trail Riders Snowmobile and ATV Club;
65.4 	(12) Voyageur Snowmobile Club;
65.5 	(13) Mesabi Sno Voyageurs;
65.6 	(14) Quad Cities ATV Club;
65.7 	(15) Prospector ATV Club;
65.8 	(16) Northern Traxx ATV Club;
65.9 	(17) Finland Snowmobile and ATV Club;
65.10 	(18) Babbitt ATV and Snowmobile Club;
65.11 	(19) Cook County ATV Club; and
65.12 	(20) Vermilion Penguins Snowmobile Club.
65.13 	(b) Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, of the money 
65.14 	distributed under this subdivision, the commissioner of Iron Range resources and 
65.15 	rehabilitation must not use any amount for administrative uses.

65.16 	EFFECTIVE DATE. This section is effective the day following final enactment and 
65.17 	applies beginning with the 2024 distribution under Minnesota Statutes, section 298.28.

65.18 	Sec. 16. IRON RANGE RESOURCES AND REHABILITATION COMMISSIONER; 
65.19 	BONDS AUTHORIZED IN 2025.
 65.20 		Subdivision 1.Issuance; purpose. (a) Notwithstanding any provision of Minnesota 
65.21 	Statutes, chapter 298, to the contrary, the commissioner of Iron Range resources and 
65.22 	rehabilitation shall, in 2025, issue revenue bonds in a principal amount of up to $31,000,000 
65.23 	plus an amount sufficient to pay costs of issuance in one or more series, and thereafter may 
65.24 	issue bonds to refund those bonds. The proceeds of the bonds must be used to pay the costs 
65.25 	of issuance and to make distributions pursuant to this section. The commissioner of Iron 
65.26 	Range resources and rehabilitation must distribute these transferred funds as outlined in 
65.27 	this section. In order to receive a distribution, a recipient must submit to the commissioner 
65.28 	a plan of how the distribution will be spent and the commissioner must ensure that the plan 
65.29 	matches the intended use outlined in this section. The plan must be submitted in a form and 
65.30 	manner determined by the commissioner. The uses listed are not subject to review or 
65.31 	recommendation by the Iron Range Resources and Rehabilitation Board. For all distributions 
66.1 	equal to or greater than $1,000,000, a recipient must appear and present and provide a copy 
66.2 	of the plan to the Iron Range Resources and Rehabilitation Board. By December 31, 2026, 
66.3 	each recipient must report to the commissioner how the distribution received under this 
66.4 	section was spent. If a recipient's plan is submitted and approved, the commissioner must 
66.5 	distribute the funds for the uses outlined in subdivision 3. The bonds issued under this 
66.6 	section do not constitute public debt as that term is defined in Article XI, section 4 of the 
66.7 	Minnesota Constitution, and as such are not subject to its provisions.
66.8 	(b) If the commissioner of Iron Range resources and rehabilitation determines that 
66.9 	available funds, other than through the issuance of bonds pursuant to subdivision 1, shall 
66.10 	be used to make grants as provided in subdivision 3, the requirements of subdivision 1, 
66.11 	relating to the submission of a plan and report to the commissioner of Iron Range resources 
66.12 	and rehabilitation and the Iron Range Resources and Rehabilitation Board, and subdivision 
66.13 	3, relating to the grant amount and identified purpose, shall apply.
66.14 	(c) Funds under this section are available for four years from the date the bonds are 
66.15 	issued. Any unexpended funds after that date cancel to the taconite environmental fund 
66.16 	under Minnesota Statutes, section 298.28, subdivision 9b.
66.17 		Subd. 2.Appropriation. (a) Notwithstanding Minnesota Statutes, section 298.28, 
66.18 	subdivision 7a, paragraph (b), there is annually appropriated from the distribution of the 
66.19 	taconite production tax revenues under Minnesota Statutes, section 298.28, subdivision 7a, 
66.20 	prior to the calculation of any amount remaining, an amount sufficient to pay when due the 
66.21 	principal and interest on the bonds issued pursuant to subdivision 1.
66.22 	(b) If in any year the amount available under paragraph (a) is insufficient to pay principal 
66.23 	and interest due on the bonds in that year, an additional amount is appropriated from the 
66.24 	Douglas J. Johnson economic protection trust fund to make up the deficiency.
66.25 	(c) The appropriation under this subdivision terminates upon payment or maturity of 
66.26 	the last of the bonds issued under this section.
66.27 	(d) Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the 
66.28 	commissioner of Iron Range resources and rehabilitation must not use any amount of the 
66.29 	appropriation under this subdivision for administrative costs.
66.30 		Subd. 3.Grants. The commissioner of Iron Range resources and rehabilitation must 
66.31 	distribute funds available for distribution under subdivision 1 for the following uses:
66.32 	(1) $5,000,000 to the Minnesota Discovery Center to design, construct, renovate, furnish, 
66.33 	and repair facilities, including HVAC upgrades, demolition, and compliance with the 
67.1 	Americans with Disabilities Act, at the Minnesota Discovery Center in the city of Chisholm, 
67.2 	and for historical research funding;
67.3 	(2) $5,800,000 to the commissioner of Iron Range resources and rehabilitation for the 
67.4 	design, engineering, and upgrades or replacement of chair lifts or an irrigation system, and 
67.5 	for the design, engineering, demolition, and construction of a nordic and welcome center 
67.6 	at the Giants Ridge Recreation Area;
67.7 	(3) $350,000 to the Central Iron Range Sanitary Sewer District for infrastructure projects;
67.8 	(4) $1,200,000 to Independent School District No. 2909, Rock Ridge, for demolition of 
67.9 	the James Madison Elementary School in Virginia;
67.10 	(5) $500,000 to the city of Buhl for infrastructure projects;
67.11 	(6) $2,300,000 to St. Louis and Lake Counties Regional Railroad Authority to design, 
67.12 	engineer, acquire right-of-way, and construct the Mesabi Trail Spur from Aurora to Hoyt 
67.13 	Lakes;
67.14 	(7) $2,000,000 to the city of Mountain Iron for infrastructure projects including but not 
67.15 	limited to Enterprise Drive North East infrastructure development, water main and other 
67.16 	infrastructure in the city, waste water plant improvements to comply with new permits, 
67.17 	supervisory control and data acquisition on lift stations, and recreation projects;
67.18 	(8) $3,000,000 to the city of Silver Bay to design, engineer, construct, and reconstruct 
67.19 	publicly owned infrastructure including sewers, water systems, utility extensions, street 
67.20 	construction, wastewater treatment, stormwater management systems, sidewalks, and 
67.21 	compliance with the Americans with Disabilities Act;
67.22 	(9) $5,000,000 to Independent School District No. 696, Ely, for planning, design, 
67.23 	engineering, demolition, and construction related to the district's athletic complex;
67.24 	(10) $1,080,000 to the Northland Learning Center to construct the Alternative Learning 
67.25 	Center on the campus in the city of Mountain Iron;
67.26 	(11) $1,000,000 for the city of Biwabik for a public safety facility;
67.27 	(12) $1,770,000 to Hibbing Public Utilities for water infrastructure projects;
67.28 	(13) $500,000 to St. Louis County for the demolition of the public school in Hoyt Lakes; 
67.29 	and
67.30 	(14) $1,500,000 to the city of Babbitt for renovations to the ice arena.
68.1 	(b) Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, of the money 
68.2 	distributed under this subdivision, the commissioner of Iron Range resources and 
68.3 	rehabilitation must not use any amount for administrative uses.

68.4 	EFFECTIVE DATE. This section is effective the day following final enactment and 
68.5 	applies beginning with the 2025 distribution under Minnesota Statutes, section 298.28.

68.6 	Sec. 17. TRANSFER 2024 DISTRIBUTION ONLY; TACONITE ECONOMIC 
68.7 	DEVELOPMENT FUND.
 68.8 	Of the funds distributed to the taconite economic development fund under Minnesota 
68.9 	Statutes, section 298.28, subdivision 9a, for the 2024 distribution only, an amount equal to 
68.10 	$300,000 shall be transferred from the taconite economic development fund to the city of 
68.11 	Chisholm for the Senator David Tomassoni Bridge of Peace. The transfer must be made 
68.12 	within ten days of the August 2024 payment. If less than $300,000 is distributed to the 
68.13 	taconite economic development fund in 2024, distributions to the fund in future years must 
68.14 	be transferred to the city of Chisholm, pursuant to this paragraph, until the total amount 
68.15 	transferred equals $300,000.

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

68.17 	ARTICLE 4
68.18 	SALES AND USE TAXES, GROSS RECEIPTS TAXES, AND EXCISE TAXES

68.19 	Section 1. [270C.155] 2024 SALES TAX REFUND ACCOUNT.
68.20 		Subdivision 1.Account creation. The 2024 sales tax refund account is created in the 
68.21 	special revenue fund. Any amount remaining in the 2024 sales tax refund account on July 
68.22 	1, 2029, cancels to the general fund.
68.23 		Subd. 2.Expiration. This section expires July 1, 2029.

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

68.25 	Sec. 2. Minnesota Statutes 2022, section 295.53, subdivision 4a, is amended to read:
68.26 		Subd. 4a.Credit for research. (a) In addition to the exemptions allowed under 
68.27 	subdivision 1, a hospital or health care provider may claim an annual credit against the total 
68.28 	amount of tax, if any, the hospital or health care provider owes for that calendar year under 
68.29 	sections 295.50 to 295.57. The credit shall equal 2.5 0.50 percent of revenues for patient 
68.30 	services used to fund expenditures for qualifying research conducted by an allowable research 
69.1 	program. The amount of the credit shall not exceed the tax liability of the hospital or health 
69.2 	care provider under sections 295.50 to 295.57.
69.3 	(b) For purposes of this subdivision, the following requirements apply:
69.4 	(1) expenditures must be for program costs of qualifying research conducted by an 
69.5 	allowable research program;
69.6 	(2) an allowable research program must be a formal program of medical and health care 
69.7 	research conducted by an entity which is exempt under section 501(c)(3) of the Internal 
69.8 	Revenue Code as defined in section 289A.02, subdivision 7, or is owned and operated under 
69.9 	authority of a governmental unit;
69.10 	(3) qualifying research must:
69.11 	(A) be approved in writing by the governing body of the hospital or health care provider 
69.12 	which is taking the deduction under this subdivision;
69.13 	(B) have as its purpose the development of new knowledge in basic or applied science 
69.14 	relating to the diagnosis and treatment of conditions affecting the human body;
69.15 	(C) be subject to review by individuals with expertise in the subject matter of the proposed 
69.16 	study but who have no financial interest in the proposed study and are not involved in the 
69.17 	conduct of the proposed study; and
69.18 	(D) be subject to review and supervision by an institutional review board operating in 
69.19 	conformity with federal regulations if the research involves human subjects or an institutional 
69.20 	animal care and use committee operating in conformity with federal regulations if the 
69.21 	research involves animal subjects. Research expenses are not exempt if the study is a routine 
69.22 	evaluation of health care methods or products used in a particular setting conducted for the 
69.23 	purpose of making a management decision. Costs of clinical research activities paid directly 
69.24 	for the benefit of an individual patient are excluded from this exemption. Basic research in 
69.25 	fields including biochemistry, molecular biology, and physiology are also included if such 
69.26 	programs are subject to a peer review process.
69.27 	(c) No credit shall be allowed under this subdivision for any revenue received by the 
69.28 	hospital or health care provider in the form of a grant, gift, or otherwise, whether from a 
69.29 	government or nongovernment source, on which the tax liability under section 295.52 is 
69.30 	not imposed.
69.31 	(d) The taxpayer shall apply for the credit under this section on the annual return under 
69.32 	section 295.55, subdivision 5.
70.1 	(e) Beginning September 1, 2001, if the actual or estimated amount paid under this 
70.2 	section for the calendar year exceeds $2,500,000, the commissioner of management and 
70.3 	budget shall determine the rate of the research credit for the following calendar year to the 
70.4 	nearest one-half percent so that refunds paid under this section will most closely equal 
70.5 	$2,500,000. The commissioner of management and budget shall publish in the State Register 
70.6 	by October 1 of each year the rate of the credit for the following calendar year. A 
70.7 	determination under this section is not subject to the rulemaking provisions of chapter 14.

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

70.9 	Sec. 3. Minnesota Statutes 2023 Supplement, section 297A.67, subdivision 40, is amended 
70.10 	to read:
70.11 		Subd. 40.Safety devices; firearm storage units. (a) Safety devices and secure firearm 
70.12 	storage units are exempt. For the purposes of this subdivision:
70.13 	(1) "safety device" has the meaning given in United States Code, title 18, section 
70.14 	921(a)(34)(A);
70.15 	(2) "secure firearm storage unit" means a container that is fully enclosed and locked by 
70.16 	a padlock, keylock, combination lock, or similar locking device, and is either specifically 
70.17 	designed for the safe storage of firearms or sold for that purpose by a federally licensed 
70.18 	firearms dealer; and
70.19 	(2) (3) "firearm" has the meaning provided in section 97A.015, subdivision 19.
70.20 	(b) The seller of a safety device or secure firearm storage unit must neither collect, nor 
70.21 	transmit to any private or public entity, any personal data of or information about a purchaser 
70.22 	resulting from a sale eligible for the exemption under this subdivision.

70.23 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
70.24 	30, 2024.

70.25 	Sec. 4. Minnesota Statutes 2022, section 297A.68, subdivision 42, is amended to read:
70.26 		Subd. 42.Qualified Data centers. (a) Purchases of enterprise information technology 
70.27 	equipment and computer software for use in a qualified data center, or a qualified refurbished 
70.28 	data center, or a qualified large-scale data center are exempt, except that computer software 
70.29 	maintenance agreements are exempt for purchases made after June 30, 2013. The tax on 
70.30 	purchases exempt under this paragraph must be imposed and collected as if the rate under 
70.31 	section 297A.62, subdivision 1, applied, and then refunded after June 30, 2013, in the manner 
70.32 	provided in section 297A.75. This exemption includes enterprise information technology 
71.1 	equipment and computer software purchased to replace or upgrade enterprise information 
71.2 	technology equipment and computer software in a qualified data center, or a qualified 
71.3 	refurbished data center, or a qualified large-scale data center.
71.4 	(b) For a qualified data center or qualified refurbished data center, the tax on purchases 
71.5 	exempt under paragraph (a) must be imposed and collected as if the rate under section 
71.6 	297A.62, subdivision 1, applied, and then refunded in the manner provided in section 
71.7 	297A.75.
71.8 	(c) For a qualified large-scale data center, the exemption under paragraph (a) applies at 
71.9 	the time of purchase, subject to the requirements of paragraphs (m) and (o) to (q).
71.10 	(b) (d) Electricity used or consumed in the operation of a qualified data center or, qualified 
71.11 	refurbished data center, or qualified large-scale data center is exempt.
71.12 	(c) (e) For purposes of this subdivision, "qualified data center" means a facility in 
71.13 	Minnesota:
71.14 	(1) that is comprised of one or more buildings that consist in the aggregate of at least 
71.15 	25,000 square feet, and that are located on a single parcel or on contiguous parcels, where 
71.16 	the total cost of construction or refurbishment, investment in enterprise information 
71.17 	technology equipment, and computer software is at least $30,000,000 within a 48-month 
71.18 	period. The 48-month period begins no sooner than July 1, 2012, except that costs for 
71.19 	computer software maintenance agreements purchased before July 1, 2013, are not included 
71.20 	in determining if the $30,000,000 threshold has been met;
71.21 	(2) that is constructed or substantially refurbished after June 30, 2012, where 
71.22 	"substantially refurbished" means that at least 25,000 square feet have been rebuilt or 
71.23 	modified, including:
71.24 	(i) installation of enterprise information technology equipment; environmental control, 
71.25 	computer software, and energy efficiency improvements; and
71.26 	(ii) building improvements; and
71.27 	(3) that is used to house enterprise information technology equipment, where the facility 
71.28 	has the following characteristics:
71.29 	(i) uninterruptible power supplies, generator backup power, or both;
71.30 	(ii) sophisticated fire suppression and prevention systems; and
71.31 	(iii) enhanced security. A facility will be considered to have enhanced security if it has 
71.32 	restricted access to the facility to selected personnel; permanent security guards; video 
72.1 	camera surveillance; an electronic system requiring pass codes, keycards, or biometric scans, 
72.2 	such as hand scans and retinal or fingerprint recognition; or similar security features.
72.3 	In determining whether the facility has the required square footage, the square footage 
72.4 	of the following spaces shall be included if the spaces support the operation of enterprise 
72.5 	information technology equipment: office space, meeting space, and mechanical and other 
72.6 	support facilities. For purposes of this subdivision, "computer software" includes, but is not 
72.7 	limited to, software utilized or loaded at a qualified data center or, qualified refurbished 
72.8 	data center, or qualified large-scale data center, including maintenance, licensing, and 
72.9 	software customization.
72.10 	(d) (f) For purposes of this subdivision, a "qualified refurbished data center" means an 
72.11 	existing facility that qualifies as a data center under paragraph (c) (e), clauses (2) and (3), 
72.12 	but that is comprised of one or more buildings that consist in the aggregate of at least 25,000 
72.13 	square feet, and that are located on a single parcel or contiguous parcels, where the total 
72.14 	cost of construction or refurbishment, investment in enterprise information technology 
72.15 	equipment, and computer software is at least $50,000,000 within a 24-month period.
72.16 	(e) (g) For purposes of this subdivision, "enterprise information technology equipment" 
72.17 	means computers and equipment supporting computing, networking, or data storage, 
72.18 	including servers and routers. It includes, but is not limited to: cooling systems, cooling 
72.19 	towers, and other temperature control infrastructure; power infrastructure for transformation, 
72.20 	distribution, or management of electricity used for the maintenance and operation of a 
72.21 	qualified data center or qualified refurbished data center, including but not limited to exterior 
72.22 	dedicated business-owned substations, backup power generation systems, battery systems, 
72.23 	and related infrastructure; and racking systems, cabling, and trays, which are necessary for 
72.24 	the maintenance and operation of the qualified data center or, qualified refurbished data 
72.25 	center, or qualified large-scale data center.
72.26 	(h) For purposes of this subdivision, "qualified large-scale data center" means a facility 
72.27 	in Minnesota:
72.28 	(1) that is comprised of one or more buildings connected to each other by fiber and 
72.29 	associated equipment that consist in the aggregate of at least 25,000 square feet, and that 
72.30 	are located in one physical location or multiple locations; and
72.31 	(2) for which the total cost of construction or refurbishment, investment in enterprise 
72.32 	information technology equipment, and computer software is at least $250,000,000 
72.33 	collectively by the facility and its tenants within a 60-month period beginning after June 
72.34 	30, 2024.
73.1 	(f) (i) A qualified data center or, qualified refurbished data center, or qualified large-scale 
73.2 	data center may claim the exemptions in this subdivision for purchases made either within 
73.3 	20 years of the date of its first purchase qualifying for the exemption under paragraph (a), 
73.4 	or by June 30, 2042, whichever is earlier.
73.5 	(g) The purpose of this exemption is to create jobs in the construction and data center 
73.6 	industries.
73.7 	(h) (j) This subdivision is effective for sales and purchases made before July 1, 2042.
73.8 	(i) (k) The commissioner of employment and economic development must certify to the 
73.9 	commissioner of revenue, in a format approved by the commissioner of revenue, when a 
73.10 	qualified data center has met the requirements under paragraph (c) or (e), or a qualified 
73.11 	refurbished data center has met the requirements under paragraph (d) (f). The certification 
73.12 	must provide the following information regarding each qualified data center or qualified 
73.13 	refurbished data center:
73.14 	(1) the total square footage amount;
73.15 	(2) the total amount of construction or refurbishment costs and the total amount of 
73.16 	qualifying investments in enterprise information technology equipment and computer 
73.17 	software;
73.18 	(3) for a qualified data center or qualified refurbished data center, the beginning and 
73.19 	ending of the applicable period under either paragraph (c) (e) or (d) (f) in which the qualifying 
73.20 	expenditures and purchases under clause (2) were made, but in no case shall the period 
73.21 	begin before July 1, 2012; and
73.22 	(4) the date upon which the qualified data center first met the requirements under 
73.23 	paragraph (c) (e), or a qualified refurbished data center first met the requirements under 
73.24 	paragraph (d) (f).
73.25 	(j) (l) Any refund for sales tax paid on qualifying purchases under this 
73.26 	subdivisionparagraph (b) must not be issued unless the commissioner of revenue has received 
73.27 	the certification required under paragraph (i) (k) issued by the commissioner of employment 
73.28 	and economic development.
73.29 	(m) The exemption under paragraph (c) applies only if an entity seeking the exemption 
73.30 	certifies to the commissioner of employment and economic development that it will meet 
73.31 	the requirements of paragraph (h) before making any qualifying purchases. The certification 
73.32 	must be made in the form and manner prescribed by the commissioner of employment and 
73.33 	economic development, in consultation with the commissioner. The commissioner of 
74.1 	employment and economic development must examine the information provided in the 
74.2 	certification and notify the commissioner within 30 days whether it has verified the 
74.3 	information. The notification must include an estimate of the beginning and ending of the 
74.4 	period for which sales and purchases are exempt under paragraph (c). The commissioner 
74.5 	must then notify the entity seeking the exemption under paragraph (c) within ten days of 
74.6 	the determination by the commissioner of employment and economic development and, if 
74.7 	applicable, confirm that the exemption under paragraph (c) applies. Purchases made before 
74.8 	the commissioner has notified the entity of the determination by the commissioner of 
74.9 	employment and economic development do not qualify for the exemption under paragraph 
74.10 	(c), but may be eligible to qualify for the exemption under paragraph (b).
74.11 	(k) (n) The commissioner of employment and economic development must annually 
74.12 	notify the commissioner of revenue of the qualified data centers that are projected to meet 
74.13 	the requirements under paragraph (c)(e) and the qualified refurbished data centers that are 
74.14 	projected to meet the requirements under paragraph (d)(f) and qualified large-scale data 
74.15 	centers that are projected to meet the requirements under paragraph (h) in each of the next 
74.16 	four years. The notification must provide the information required under paragraph (i) (k), 
74.17 	clauses (1) to (4), for each qualified data center or qualified refurbished data center.
74.18 	(o) Laborers and mechanics performing work to construct or refurbish qualified data 
74.19 	centers, qualified refurbished data centers, and qualified large-scale data centers must be 
74.20 	paid the prevailing-wage rate for the work as defined in section 177.42, subdivision 6. Work 
74.21 	performed to construct or refurbish qualified data centers, qualified refurbished data centers, 
74.22 	and qualified large-scale data centers is subject to the requirements and enforcement 
74.23 	provisions of sections 177.27, 177.30, 177.32, and 177.41 to 177.45. For purposes of this 
74.24 	paragraph, "refurbish" does not include maintenance or equipment refreshment or 
74.25 	replacement.
74.26 	(p) Within three years after being placed in service, a qualified large-scale data center 
74.27 	must certify to the commissioner of employment and economic development that the facility 
74.28 	has attained certification under one or more of the following sustainable design or green 
74.29 	building standards:
74.30 	(1) BREEAM for new construction or BREEAM in-use;
74.31 	(2) Energy Star;
74.32 	(3) Envision;
74.33 	(4) ISO 50001-energy management;
75.1 	(5) LEED for building design and construction or LEED for operations and maintenance;
75.2 	(6) green globes for new construction or green globes for existing buildings;
75.3 	(7) UL 3223; or
75.4 	(8) other reasonable standards approved by the commissioner of employment and 
75.5 	economic development.
75.6 	(q) Notwithstanding section 289A.38, subdivision 1, the amount of the exemption allowed 
75.7 	under paragraph (c) must be repaid to the commissioner if the commissioner of employment 
75.8 	and economic development determines that a qualified large-scale data center has not met 
75.9 	the requirements under paragraph (p). Nothing in this paragraph prohibits the commissioner 
75.10 	from making an assessment of tax, interest, or penalties if the commissioner determines 
75.11 	that sales to and purchases made by a qualified large-scale data center do not qualify for 
75.12 	the exemption under paragraph (c).

75.13 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
75.14 	30, 2024.

75.15 	Sec. 5. Minnesota Statutes 2022, section 297A.70, subdivision 19, is amended to read:
75.16 		Subd. 19.Nonprofit snowmobile clubs; machinery and equipment. (a) The following 
75.17 	sales to an eligible nonprofit snowmobile club are exempt:
75.18 	(1) sales of tangible personal property to a nonprofit snowmobile club, including 
75.19 	grooming machines, attachments, other associated accessories, and repair parts, that is used 
75.20 	primarily and directly for the grooming of state or grant-in-aid snowmobile trails are exempt. 
75.21 	The exemption applies to grooming machines, attachments, other associated accessories, 
75.22 	and repair parts.; and
75.23 	(2) sales of materials and supplies used or consumed in, and equipment incorporated 
75.24 	into, the construction, reconstruction, maintenance, or improvement of state or grant-in-aid 
75.25 	snowmobile trails, completed by the nonprofit snowmobile club.
75.26 	(b) A nonprofit snowmobile club is eligible for the exemption under this subdivision if 
75.27 	it received, in the current year or in the previous three-year period, a state grant-in-aid 
75.28 	maintenance and grooming grant administered by the Department of Natural Resources by 
75.29 	applying for the grant with a local unit of government sponsor.

75.30 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
75.31 	30, 2024.

76.1 	Sec. 6. Minnesota Statutes 2022, section 297A.75, subdivision 1, as amended by Laws 
76.2 	2024, chapter 85, section 95, is amended to read:
76.3 		Subdivision 1.Tax collected. The tax on the gross receipts from the sale of the following 
76.4 	exempt items must be imposed and collected as if the sale were taxable and the rate under 
76.5 	section 297A.62, subdivision 1, applied. The exempt items include:
76.6 	(1) building materials for an agricultural processing facility exempt under section 
76.7 	297A.71, subdivision 13;
76.8 	(2) building materials for mineral production facilities exempt under section 297A.71, 
76.9 	subdivision 14;
76.10 	(3) building materials for correctional facilities under section 297A.71, subdivision 3;
76.11 	(4) building materials used in a residence for veterans with a disability exempt under 
76.12 	section 297A.71, subdivision 11;
76.13 	(5) elevators and building materials exempt under section 297A.71, subdivision 12;
76.14 	(6) materials and supplies for qualified low-income housing under section 297A.71, 
76.15 	subdivision 23;
76.16 	(7) materials, supplies, and equipment for municipal electric utility facilities under 
76.17 	section 297A.71, subdivision 35;
76.18 	(8) equipment and materials used for the generation, transmission, and distribution of 
76.19 	electrical energy and an aerial camera package exempt under section 297A.68, subdivision 
76.20 	37;
76.21 	(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph 
76.22 	(a), clause (10);
76.23 	(10) materials, supplies, and equipment for construction or improvement of projects and 
76.24 	facilities under section 297A.71, subdivision 40;
76.25 	(11) enterprise information technology equipment and computer software for use in a 
76.26 	qualified data center or qualified refurbished data center exempt under section 297A.68, 
76.27 	subdivision 42, paragraph (b);
76.28 	(12) materials, supplies, and equipment for qualifying capital projects under section 
76.29 	297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b);
76.30 	(13) items purchased for use in providing critical access dental services exempt under 
76.31 	section 297A.70, subdivision 7, paragraph (c);
77.1 	(14) items and services purchased under a business subsidy agreement for use or 
77.2 	consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 
77.3 	44;
77.4 	(15) building materials, equipment, and supplies for constructing or replacing real 
77.5 	property exempt under section 297A.71, subdivisions 49; 50, paragraph (b); and 51;
77.6 	(16) building materials, equipment, and supplies for qualifying capital projects under 
77.7 	section 297A.71, subdivision 52; and
77.8 	(17) building materials, equipment, and supplies for constructing, remodeling, expanding, 
77.9 	or improving a fire station, police station, or related facilities exempt under section 297A.71, 
77.10 	subdivision 53.

77.11 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
77.12 	30, 2024.

77.13 	Sec. 7. Minnesota Statutes 2022, section 297F.01, subdivision 10b, is amended to read:
77.14 		Subd. 10b.Moist snuff. "Moist snuff" means any finely cut, ground, or powdered 
77.15 	smokeless tobacco, or similar product containing nicotine, that is intended to be placed or 
77.16 	dipped in the mouth.

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

77.18 	Sec. 8. Minnesota Statutes 2022, section 297F.01, subdivision 19, is amended to read:
77.19 		Subd. 19.Tobacco products. (a) "Tobacco products" means any product containing, 
77.20 	made, or derived from tobacco that is intended for human consumption, whether chewed, 
77.21 	smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, or 
77.22 	any component, part, or accessory of a tobacco product, including, but not limited to, cigars; 
77.23 	cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other smoking 
77.24 	tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing 
77.25 	tobacco; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds 
77.26 	and forms of tobacco; but does not include cigarettes as defined in this section. Tobacco 
77.27 	products includes nicotine solution products and moist snuff. Tobacco products excludes 
77.28 	any tobacco product that has been approved by the United States Food and Drug 
77.29 	Administration for sale as a tobacco cessation product, as a tobacco dependence product, 
77.30 	or for other medical purposes, and is being marketed and sold solely for such an approved 
77.31 	purpose.
78.1 	(b) Except for the imposition of tax under section 297F.05, subdivisions 3 and 4, tobacco 
78.2 	products includes a premium cigar, as defined in subdivision 13a.

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

78.4 	Sec. 9. Minnesota Statutes 2022, section 609.902, subdivision 4, is amended to read:
78.5 		Subd. 4.Criminal act. "Criminal act" means conduct constituting, or a conspiracy or 
78.6 	attempt to commit, a felony violation of chapter 152, or a felony violation of section 297D.09;
78.7 	299F.79; 299F.80; 299F.82; 609.185; 609.19; 609.195; 609.20; 609.205; 609.221; 609.222; 
78.8 	609.223; 609.2231; 609.228; 609.235; 609.245; 609.25; 609.27; 609.322; 609.342; 609.343; 
78.9 	609.344; 609.345; 609.42; 609.48; 609.485; 609.495; 609.496; 609.497; 609.498; 609.52, 
78.10 	subdivision 2, if the offense is punishable under subdivision 3, clause (1), if the property is 
78.11 	a firearm, clause (3)(b), or clause (3)(d)(v); section 609.52, subdivision 2, paragraph (a), 
78.12 	clause (1) or (4); 609.527, if the crime is punishable under subdivision 3, clause (4); 609.528, 
78.13 	if the crime is punishable under subdivision 3, clause (4); 609.53; 609.561; 609.562; 609.582, 
78.14 	subdivision 1 or 2; 609.668, subdivision 6, paragraph (a); 609.67; 609.687; 609.713; 609.86; 
78.15 	609.894, subdivision 3 or 4; 609.895; 624.713; 624.7191; or 626A.02, subdivision 1, if the 
78.16 	offense is punishable under section 626A.02, subdivision 4, paragraph (a). "Criminal act" 
78.17 	also includes conduct constituting, or a conspiracy or attempt to commit, a felony violation 
78.18 	of section 609.52, subdivision 2, clause (3), (4), (15), or (16), if the violation involves an 
78.19 	insurance company as defined in section 60A.02, subdivision 4, a nonprofit health service 
78.20 	plan corporation regulated under chapter 62C, a health maintenance organization regulated 
78.21 	under chapter 62D, or a fraternal benefit society regulated under chapter 64B.

78.22 	EFFECTIVE DATE. This section is effective August 1, 2024.

78.23 	Sec. 10. Laws 2023, chapter 64, article 5, section 25, subdivision 1, is amended to read:
78.24 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
78.25 	equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation, 
78.26 	or remodeling of a new water treatment plant and trunk water main improvements in the 
78.27 	city of Ramsey are exempt from sales and use tax under Minnesota Statutes, chapter 297A, 
78.28 	provided that the materials, supplies, and equipment are purchased after December 31, 2022, 
78.29 	and before July 1, 2027.
78.30 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
78.31 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
78.32 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
78.33 	purchases must not be issued until after June 30, 2023, and before July 1, 2027.

79.1 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
79.2 	made after December 31, 2022, and before July 1, 2027.

79.3 	Sec. 11. ADRIAN INDEPENDENT SCHOOL DISTRICT; SALES AND USE TAX 
79.4 	EXEMPTION FOR CONSTRUCTION MATERIALS.
 79.5 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
79.6 	equipment incorporated into the following projects in Independent School District No. 511, 
79.7 	Adrian, are exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, 
79.8 	if the materials, supplies, and equipment are purchased after March 31, 2024, and before 
79.9 	September 1, 2025:
79.10 	(1) secondary building roofing; and
79.11 	(2) elementary building roofing.
79.12 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
79.13 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
79.14 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
79.15 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
79.16 	exceed $4,999.
79.17 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
79.18 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
79.19 	commissioner of revenue.

79.20 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
79.21 	made after March 31, 2024, and before September 1, 2025.

79.22 	Sec. 12. CITY OF APPLE VALLEY; SALES AND USE TAX EXEMPTION FOR 
79.23 	CONSTRUCTION MATERIALS.
 79.24 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
79.25 	equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation, 
79.26 	or remodeling of the Central Maintenance Facility in the city of Apple Valley are exempt 
79.27 	from sales and use tax under Minnesota Statutes, chapter 297A, if the materials, supplies, 
79.28 	and equipment are purchased after February 29, 2024, and before July 1, 2028.
79.29 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
79.30 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
79.31 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
80.1 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
80.2 	exceed $540,000.
80.3 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
80.4 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
80.5 	commissioner of revenue.

80.6 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
80.7 	made after February 29, 2024, and before July 1, 2028.

80.8 	Sec. 13. BECKER PUBLIC SCHOOL DISTRICT; SALES AND USE TAX 
80.9 	EXEMPTION FOR CONSTRUCTION MATERIALS.
 80.10 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
80.11 	incorporated into the construction and renovation projects for Becker Early Childhood, 
80.12 	Becker Primary School, Becker Intermediate School, Becker Middle School, Becker High 
80.13 	School, Becker Transportation Building, and the Becker Multi-Purpose Athletic Facility in 
80.14 	Independent School District No. 726, Becker, are exempt from sales and use tax imposed 
80.15 	under Minnesota Statutes, chapter 297A. The exemption under this subdivision only applies 
80.16 	if materials, supplies, and equipment are purchased after December 31, 2021, and before 
80.17 	January 1, 2026.
80.18 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
80.19 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
80.20 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
80.21 	purchases must not be issued until after June 30, 2024.
80.22 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
80.23 	exceed $1,180,000.
80.24 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
80.25 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
80.26 	commissioner of revenue.

80.27 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
80.28 	made after December 31, 2021, and before January 1, 2026.

80.29 	Sec. 14. BIG LAKE INDEPENDENT SCHOOL DISTRICT; SALES AND USE TAX 
80.30 	EXEMPTION FOR CONSTRUCTION MATERIALS.
 80.31 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
80.32 	equipment incorporated into the construction and renovation projects for Big Lake Liberty 
81.1 	Elementary School, Big Lake Independence Elementary School, Big Lake Middle School, 
81.2 	and Big Lake High School in Independent School District No. 727, Big Lake, are exempt 
81.3 	from sales and use tax imposed under Minnesota Statutes, chapter 297A, if the materials, 
81.4 	supplies, and equipment are purchased after December 31, 2021, and before January 1, 
81.5 	2025.
81.6 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
81.7 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
81.8 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
81.9 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
81.10 	exceed $780,000.
81.11 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
81.12 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
81.13 	commissioner of revenue.

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

81.16 	Sec. 15. BROWERVILLE PUBLIC SCHOOLS; SALES AND USE TAX 
81.17 	EXEMPTION FOR CONSTRUCTION MATERIALS.
 81.18 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
81.19 	incorporated into the following projects in Independent School District No. 787, Browerville 
81.20 	Public Schools, are exempt from sales and use tax imposed under Minnesota Statutes, 
81.21 	chapter 297A, if the materials, supplies, and equipment are purchased after December 31, 
81.22 	2023, and before January 1, 2026:
81.23 	(1) renovations to the prekindergarten through grade 12 school building; and
81.24 	(2) construction of a new gymnasium, classrooms, locker rooms, a wrestling and weight 
81.25 	room, offices, and a stage.
81.26 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
81.27 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
81.28 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
81.29 	purchases must not be issued until after June 30, 2024.
81.30 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
81.31 	exceed $580,000.
82.1 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
82.2 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
82.3 	commissioner of revenue.

82.4 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
82.5 	made after December 31, 2023, and before January 1, 2026.

82.6 	Sec. 16. CITY OF BURNSVILLE; SALES AND USE TAX EXEMPTION FOR 
82.7 	CONSTRUCTION MATERIALS.
 82.8 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
82.9 	equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation, 
82.10 	or remodeling of a new city hall in the city of Burnsville are exempt from sales and use tax 
82.11 	under Minnesota Statutes, chapter 297A, if the materials, supplies, and equipment are 
82.12 	purchased after December 31, 2024, and before July 1, 2028.
82.13 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
82.14 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
82.15 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
82.16 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
82.17 	exceed $760,000.
82.18 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
82.19 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
82.20 	commissioner of revenue.

82.21 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
82.22 	December 31, 2024, and before July 1, 2028.

82.23 	Sec. 17. CANBY INDEPENDENT SCHOOL DISTRICT; SALES AND USE TAX 
82.24 	EXEMPTION FOR CONSTRUCTION MATERIALS.
 82.25 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
82.26 	equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation, 
82.27 	or remodeling of the following projects in the elementary and high schools in Independent 
82.28 	School District No. 891, Canby, are exempt from sales and use tax imposed under Minnesota 
82.29 	Statutes, chapter 297A, if materials, supplies, and equipment are purchased after December 
82.30 	31, 2023, and before January 1, 2026:
82.31 	(1) a new gymnasium with improved community access;
83.1 	(2) career technical education space addition;
83.2 	(3) HVAC upgrades;
83.3 	(4) a new eight-lane track;
83.4 	(5) athletic field improvements and upgrades;
83.5 	(6) stadium seating and press box renovations;
83.6 	(7) secure entrance upgrades for both schools with associated administrative office 
83.7 	relocations;
83.8 	(8) renovations to existing locker rooms;
83.9 	(9) classroom renovations;
83.10 	(10) site drainage; and
83.11 	(11) other associated renovations.
83.12 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
83.13 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
83.14 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
83.15 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
83.16 	exceed $860,000.
83.17 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
83.18 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
83.19 	commissioner of revenue.

83.20 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
83.21 	made after December 31, 2023, and before January 1, 2026.

83.22 	Sec. 18. CASS LAKE-BENA INDEPENDENT SCHOOL DISTRICT; SALES AND 
83.23 	USE TAX EXEMPTION FOR CONSTRUCTION MATERIALS.
 83.24 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
83.25 	equipment incorporated into the construction and equipping of a new elementary school, 
83.26 	and the construction of improvements to repurpose and remodel the existing elementary 
83.27 	school facility for use as an early childhood and preschool site, alternative learning center, 
83.28 	and district service center in Independent School District No. 115, Cass Lake-Bena, are 
83.29 	exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, if materials, 
83.30 	supplies, and equipment are purchased after June 30, 2023, and before October 1, 2025.
84.1 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
84.2 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
84.3 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
84.4 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
84.5 	exceed $980,000.
84.6 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
84.7 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
84.8 	commissioner of revenue.

84.9 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
84.10 	made after June 30, 2023, and before October 1, 2025.

84.11 	Sec. 19. CITY OF CHANHASSEN; SALES AND USE TAX EXEMPTION FOR 
84.12 	CONSTRUCTION MATERIALS.
 84.13 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
84.14 	equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation, 
84.15 	or remodeling of the Chanhassen Bluffs Sports Complex in the city of Chanhassen are 
84.16 	exempt from sales and use tax under Minnesota Statutes, chapter 297A, if the materials, 
84.17 	supplies, and equipment are purchased after August 31, 2025, and before October 1, 2026.
84.18 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
84.19 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
84.20 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
84.21 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
84.22 	exceed $1,480,000.
84.23 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
84.24 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
84.25 	commissioner of revenue.

84.26 	EFFECTIVE DATE. This section is effective for sales and purchases made after August 
84.27 	31, 2025,  and before October 1, 2026.

84.28 	Sec. 20. CITY OF COLUMBIA HEIGHTS; SALES AND USE TAX EXEMPTION 
84.29 	FOR CONSTRUCTION MATERIALS.
 84.30 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
84.31 	incorporated into the construction, reconstruction, upgrade, expansion, or remodeling of 
85.1 	the city hall facility in the city of Columbia Heights are exempt from sales and use tax 
85.2 	imposed under Minnesota Statutes, chapter 297A, if materials, supplies, and equipment are 
85.3 	purchased after August 31, 2021, and before April 1, 2024.
85.4 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
85.5 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
85.6 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
85.7 	purchases must not be issued until after June 30, 2024.
85.8 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
85.9 	exceed $220,000.
85.10 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
85.11 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
85.12 	commissioner of revenue.

85.13 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
85.14 	made after August 31, 2021, and before April 1, 2024.

85.15 	Sec. 21. CITY OF DELANO; SALES AND USE TAX EXEMPTION FOR 
85.16 	CONSTRUCTION MATERIALS.
 85.17 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
85.18 	equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation, 
85.19 	or remodeling of an ice rink in the city of Delano are exempt from sales and use tax under 
85.20 	Minnesota Statutes, chapter 297A, if the materials, supplies, and equipment are purchased 
85.21 	after November 30, 2023, and before January 1, 2026.
85.22 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
85.23 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
85.24 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
85.25 	purchases must not be issued until after June 30, 2024.
85.26 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
85.27 	exceed $310,000.
85.28 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
85.29 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
85.30 	commissioner of revenue.

85.31 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
85.32 	made after November 30, 2023, and before January 1, 2026.

86.1 	Sec. 22. CITY OF EDINA; SALES AND USE TAX EXEMPTION FOR 
86.2 	CONSTRUCTION MATERIALS.
 86.3 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
86.4 	equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation, 
86.5 	or remodeling relating to the following projects in the city of Edina are exempt from sales 
86.6 	and use tax under Minnesota Statutes, chapter 297A, if the materials, supplies, and equipment 
86.7 	are purchased after December 31, 2023, and before July 1, 2028:
86.8 	(1) development of Fred Richards Park as identified in the Fred Richards Park Master 
86.9 	Plan; and
86.10 	(2) improvements to Braemar Park as identified in the Braemar Park Master Plan.
86.11 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
86.12 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
86.13 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
86.14 	purchases must not be issued until after June 30, 2024.
86.15 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
86.16 	exceed $870,000.
86.17 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
86.18 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
86.19 	commissioner of revenue.

86.20 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
86.21 	made after December 31, 2023, and before July 1, 2028.

86.22 	Sec. 23. ELLSWORTH INDEPENDENT SCHOOL DISTRICT; SALES AND USE 
86.23 	TAX EXEMPTION FOR CONSTRUCTION MATERIALS.
 86.24 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
86.25 	equipment incorporated into the following projects in Independent School District No. 514, 
86.26 	Ellsworth, are exempt from sales and use tax imposed under Minnesota Statutes, chapter 
86.27 	297A, if the materials, supplies, and equipment are purchased after December 31, 2024, 
86.28 	and before October 1, 2025:
86.29 	(1) replacement of a boiler system with a heating and cooling HVAC system;
86.30 	(2) replacement of windows in the elementary wing;
86.31 	(3) replacement of the gym roof and shop roof;
87.1 	(4) replacement of fuel oil with propane for the new HVAC system;
87.2 	(5) installation of a new electrical system for the new HVAC system;
87.3 	(6) building tuckpointing; and
87.4 	(7) renovation of the bus garage.
87.5 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
87.6 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
87.7 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
87.8 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
87.9 	exceed $160,000.
87.10 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
87.11 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
87.12 	commissioner of revenue.

87.13 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
87.14 	December 31, 2024, and before October 1, 2025.

87.15 	Sec. 24. CITY OF GRAND RAPIDS; SALES AND USE TAX EXEMPTION FOR 
87.16 	CONSTRUCTION MATERIALS.
 87.17 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
87.18 	equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation, 
87.19 	or remodeling of the IRA Civic Center in the city of Grand Rapids are exempt from sales 
87.20 	and use tax under Minnesota Statutes, chapter 297A, if the materials, supplies, and equipment 
87.21 	are purchased after June 30, 2021, and before July 1, 2024.
87.22 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
87.23 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
87.24 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
87.25 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
87.26 	exceed $580,000.
87.27 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
87.28 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
87.29 	commissioner of revenue.

87.30 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
87.31 	made after June 30, 2021, and before July 1, 2024.

88.1 	Sec. 25. HERON LAKE-OKABENA INDEPENDENT SCHOOL DISTRICT; SALES 
88.2 	AND USE TAX EXEMPTION FOR CONSTRUCTION MATERIALS.
 88.3 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
88.4 	equipment incorporated into the construction of school building updates including roof 
88.5 	replacement, concrete work, tuckpointing, windows, flooring, bus garage doors, Heron Lake 
88.6 	doors, bathroom fixtures and upgrades, and pool filter replacement in Independent School 
88.7 	District No. 330, Heron Lake-Okabena, are exempt from sales and use tax imposed under 
88.8 	Minnesota Statutes, chapter 297A, if the materials, supplies, and equipment are purchased 
88.9 	after May 31, 2024, and before January 1, 2025.
88.10 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
88.11 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
88.12 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
88.13 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
88.14 	exceed $100,000.
88.15 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
88.16 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
88.17 	commissioner of revenue.

88.18 	EFFECTIVE DATE. This section is effective for sales and purchases made after May 
88.19 	31, 2024, and before January 1, 2025.

88.20 	Sec. 26. HILLS-BEAVER CREEK INDEPENDENT SCHOOL DISTRICT; SALES 
88.21 	AND USE TAX EXEMPTION FOR CONSTRUCTION MATERIALS.
 88.22 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
88.23 	equipment incorporated into the construction of a new elementary school and parking lot, 
88.24 	and repairs to a gymnasium, locker rooms, a vehicle garage, and a bus garage building in 
88.25 	Independent School District No. 671, Hills-Beaver Creek, are exempt from sales and use 
88.26 	tax imposed under Minnesota Statutes, chapter 297A, if the materials, supplies, and 
88.27 	equipment are purchased after February 29, 2024, and before January 1, 2026.
88.28 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
88.29 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
88.30 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
88.31 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
88.32 	exceed $880,000.
89.1 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
89.2 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
89.3 	commissioner of revenue.

89.4 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
89.5 	made after February 29, 2024, and before January 1, 2026.

89.6 	Sec. 27. ITASCA COUNTY; SALES AND USE TAX EXEMPTION FOR 
89.7 	CONSTRUCTION MATERIALS.
 89.8 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
89.9 	equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation, 
89.10 	or remodeling of the Itasca County courthouse are exempt from sales and use tax under 
89.11 	Minnesota Statutes, chapter 297A, provided that the materials, supplies, and equipment are 
89.12 	purchased after April 30, 2021, and before January 1, 2025.
89.13 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
89.14 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
89.15 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
89.16 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
89.17 	exceed $470,000.
89.18 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
89.19 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
89.20 	commissioner of revenue.

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

89.23 	Sec. 28. LAKE SUPERIOR SCHOOL DISTRICT; SALES AND USE TAX 
89.24 	EXEMPTION FOR CONSTRUCTION MATERIALS.
 89.25 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
89.26 	incorporated into the following projects in Independent School District No. 381, Lake 
89.27 	Superior School District, are exempt from sales and use tax imposed under applicable 
89.28 	statutes if materials, supplies, and equipment are purchased after December 31, 2022, and 
89.29 	before January 1, 2026:
89.30 	(1) an addition and improvements to Minnehaha Elementary School;
89.31 	(2) an addition and improvements to William Kelly School;
90.1 	(3) improvements to Two Harbors High School;
90.2 	(4) improvements to or replacement of the Two Harbors Bus Garage and Silver Bay 
90.3 	Bus Garage; and
90.4 	(5) improvements to athletic facilities.
90.5 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
90.6 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
90.7 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
90.8 	purchases must not be issued until after January 1, 2026.
90.9 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
90.10 	exceed $1,320,000.
90.11 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
90.12 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
90.13 	commissioner of revenue.

90.14 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
90.15 	made after December 31, 2022, and before January 1, 2026.

90.16 	Sec. 29. LE SUEUR-HENDERSON SCHOOL DISTRICT; SALES AND USE TAX 
90.17 	EXEMPTION FOR CONSTRUCTION MATERIALS.
 90.18 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
90.19 	incorporated into the construction of a new elementary school in Independent School District 
90.20 	No. 2397, Le Sueur-Henderson, are exempt from sales and use tax imposed under Minnesota 
90.21 	Statutes, chapter 297A, if materials, supplies, and equipment are purchased after May 31, 
90.22 	2023, and before January 1, 2025.
90.23 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
90.24 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
90.25 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
90.26 	purchases must not be issued until after June 30, 2024.
90.27 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
90.28 	exceed $930,000.
90.29 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
90.30 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
90.31 	commissioner of revenue.

91.1 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
91.2 	made after May 31, 2023, and before January 1, 2025.

91.3 	Sec. 30. MARTIN COUNTY WEST INDEPENDENT SCHOOL DISTRICT; SALES 
91.4 	AND USE TAX EXEMPTION FOR CONSTRUCTION MATERIALS.
 91.5 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
91.6 	equipment incorporated into the construction of a new prekindergarten through grade 12 
91.7 	school building in Independent School District No. 2448, Martin County West, are exempt 
91.8 	from sales and use tax imposed under Minnesota Statutes, chapter 297A, if the materials, 
91.9 	supplies, and equipment are purchased after September 30, 2025, and before January 1, 
91.10 	2027.
91.11 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
91.12 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
91.13 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
91.14 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
91.15 	exceed $2,280,000.
91.16 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
91.17 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
91.18 	commissioner of revenue.

91.19 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
91.20 	September 30, 2025, and before January 1, 2027.

91.21 	Sec. 31. CITY OF PLYMOUTH; SALES AND USE TAX EXEMPTION FOR 
91.22 	CONSTRUCTION MATERIALS.
 91.23 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
91.24 	equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation, 
91.25 	or remodeling of the following projects relating to the City Center revitalization project in 
91.26 	the city of Plymouth are exempt from sales and use tax under Minnesota Statutes, chapter 
91.27 	297A, if the materials, supplies, and equipment are purchased after December 31, 2023, 
91.28 	and before July 1, 2028:
91.29 	(1) construction of a public parking ramp;
91.30 	(2) renovation of Plymouth Boulevard;
91.31 	(3) expansion of the Plymouth Ice Center;
92.1 	(4) construction of regional stormwater ponding;
92.2 	(5) roadway realignment; and
92.3 	(6) expansion of the Plymouth Community Center.
92.4 	(b) Materials and supplies used or consumed in and equipment incorporated into the 
92.5 	renovation of the Zachary Water Treatment Plant and the renovation of Meadows Playfield 
92.6 	in the city of Plymouth are exempt from sales and use tax under Minnesota Statutes, chapter 
92.7 	297A, if the materials, supplies, and equipment are purchased after December 31, 2023, 
92.8 	and before July 1, 2028.
92.9 	(c) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
92.10 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
92.11 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
92.12 	purchases must not be issued until after June 30, 2024.
92.13 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
92.14 	exceed $620,000.
92.15 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
92.16 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
92.17 	commissioner of revenue.

92.18 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
92.19 	made after December 31, 2023, and before July 1, 2028.

92.20 	Sec. 32. CITY OF ROCHESTER; SALES AND USE TAX EXEMPTION FOR 
92.21 	CONSTRUCTION MATERIALS.
 92.22 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
92.23 	incorporated into the construction of a sports and recreation complex in the city of Rochester 
92.24 	are exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, if 
92.25 	materials, supplies, and equipment are purchased after June 30, 2023, and before July 1, 
92.26 	2028.
92.27 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
92.28 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
92.29 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
92.30 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
92.31 	exceed $1,320,000.
93.1 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
93.2 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
93.3 	commissioner of revenue.

93.4 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
93.5 	made after June 30, 2023, and before July 1, 2028.

93.6 	Sec. 33. ROUND LAKE-BREWSTER INDEPENDENT SCHOOL DISTRICT; 
93.7 	SALES AND USE TAX EXEMPTION FOR CONSTRUCTION MATERIALS.
 93.8 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
93.9 	equipment incorporated into the construction of a three-story school building project in 
93.10 	Independent School District No. 2907, Round Lake-Brewster, are exempt from sales and 
93.11 	use tax imposed under Minnesota Statutes, chapter 297A, if the materials, supplies, and 
93.12 	equipment are purchased after December 31, 2023, and before September 1, 2026.
93.13 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
93.14 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
93.15 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
93.16 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
93.17 	exceed $870,000.
93.18 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
93.19 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
93.20 	commissioner of revenue.

93.21 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
93.22 	made after December 31, 2023, and before September 1, 2026.

93.23 	Sec. 34. RUSSELL TYLER RUTHTON INDEPENDENT SCHOOL DISTRICT; 
93.24 	SALES AND USE TAX EXEMPTION FOR CONSTRUCTION MATERIALS.
 93.25 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
93.26 	equipment incorporated into the construction of a prekindergarten through grade 12 school 
93.27 	building and athletic field  in Independent School District No. 2902, Russell Tyler Ruthton, 
93.28 	are exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, if the 
93.29 	materials, supplies, and equipment are purchased after December 31, 2019, and before 
93.30 	January 1, 2024.
93.31 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
93.32 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
94.1 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Notwithstanding 
94.2 	Minnesota Statutes, section 289A.40, claims for refunds for sales and purchases made after 
94.3 	December 31, 2019, and before October 1, 2020, may be filed until January 1, 2025.
94.4 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
94.5 	exceed $1,590,000.
94.6 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
94.7 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
94.8 	commissioner of revenue.

94.9 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
94.10 	made after December 31, 2019, and before January 1, 2024.

94.11 	Sec. 35. CITY OF SPRING LAKE PARK; SALES AND USE TAX EXEMPTION 
94.12 	FOR CONSTRUCTION MATERIALS.
 94.13 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
94.14 	equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation, 
94.15 	or remodeling of a city hall facility in the city of Spring Lake Park are exempt from sales 
94.16 	and use tax under Minnesota Statutes, chapter 297A, provided that the materials, supplies, 
94.17 	and equipment are purchased after December 31, 2023, and before January 1, 2026.
94.18 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
94.19 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
94.20 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
94.21 	purchases must not be issued until after June 30, 2024.
94.22 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
94.23 	exceed $360,000.
94.24 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
94.25 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
94.26 	commissioner of revenue.

94.27 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
94.28 	made after December 31, 2023, and before January 1, 2026.

95.1 	Sec. 36. ST. CLAIR SCHOOL DISTRICT; SALES AND USE TAX EXEMPTION 
95.2 	FOR CONSTRUCTION MATERIALS.
 95.3 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
95.4 	equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation, 
95.5 	or remodeling relating to the following projects in Independent School District No. 75, St. 
95.6 	Clair Schools, are exempt from sales and use tax imposed under Minnesota Statutes, chapter 
95.7 	297A, if materials, supplies, and equipment are purchased after October 31, 2021, and before 
95.8 	November 1, 2025:
95.9 	(1) construction of new classrooms and playgrounds; and
95.10 	(2) improvements to roofs, parking lots, mechanical systems, and athletic spaces.
95.11 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
95.12 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
95.13 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
95.14 	purchases must not be issued until after June 30, 2024.
95.15 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
95.16 	exceed $350,000.
95.17 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
95.18 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
95.19 	commissioner of revenue.

95.20 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
95.21 	made after October 31, 2021, and before November 1, 2025.

95.22 	Sec. 37. TRACY AREA INDEPENDENT SCHOOL DISTRICT; SALES AND USE 
95.23 	TAX EXEMPTION FOR CONSTRUCTION MATERIALS.
 95.24 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
95.25 	equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation, 
95.26 	or remodeling of Tracy Elementary, Tracy High School, and Tracy Kids World in 
95.27 	Independent School District No. 2904, Tracy, are exempt from sales and use tax imposed 
95.28 	under Minnesota Statutes, chapter 297A, if materials, supplies, and equipment are purchased 
95.29 	after December 31, 2022, and before January 1, 2025.
95.30 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
95.31 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
95.32 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
96.1 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
96.2 	exceed $650,000.
96.3 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
96.4 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
96.5 	commissioner of revenue.

96.6 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
96.7 	made after December 31, 2022, and before January 1, 2025.

96.8 	Sec. 38. CITY OF WATERTOWN; SALES AND USE TAX EXEMPTION FOR 
96.9 	CONSTRUCTION MATERIALS.
 96.10 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
96.11 	equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation, 
96.12 	or remodeling of a new water tower in the city of Watertown are exempt from sales and use 
96.13 	tax under Minnesota Statutes, chapter 297A, if the materials, supplies, and equipment are 
96.14 	purchased after April 30, 2024, and before February 1, 2026.
96.15 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
96.16 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
96.17 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
96.18 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
96.19 	exceed $140,000.
96.20 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
96.21 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
96.22 	commissioner of revenue.

96.23 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
96.24 	made after April 30, 2024, and before February 1, 2026.

96.25 	Sec. 39. WINDOM INDEPENDENT SCHOOL DISTRICT; SALES AND USE TAX 
96.26 	EXEMPTION FOR CONSTRUCTION MATERIALS.
 96.27 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
96.28 	equipment incorporated into the construction of facility roofing projects and HVAC upgrades, 
96.29 	athletic track replacement, and outdoor athletic complex improvements in Independent 
96.30 	School District No. 177, Windom, are exempt from sales and use tax imposed under 
96.31 	Minnesota Statutes, chapter 297A, if the materials, supplies, and equipment are purchased 
96.32 	after June 30, 2024, and before January 1, 2027.
97.1 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
97.2 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
97.3 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
97.4 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
97.5 	exceed $870,000.
97.6 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
97.7 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
97.8 	commissioner of revenue.

97.9 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
97.10 	made after June 30, 2024, and before January 1, 2027.

97.11 	Sec. 40. CITY OF WOODBURY; SALES AND USE TAX EXEMPTION FOR 
97.12 	CONSTRUCTION MATERIALS.
 97.13 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
97.14 	equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation, 
97.15 	or remodeling of a water treatment facility, including water pipeline infrastructure and 
97.16 	associated improvements, funded by the city of Woodbury are exempt from sales and use 
97.17 	tax under Minnesota Statutes, chapter 297A, provided that the materials, supplies, and 
97.18 	equipment are purchased after January 31, 2024, and before July 1, 2028.
97.19 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
97.20 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
97.21 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible 
97.22 	purchases must not be issued until after June 30, 2024.
97.23 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
97.24 	exceed $2,070,000.
97.25 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
97.26 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
97.27 	commissioner of revenue.

97.28 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
97.29 	made after January 31, 2024, and before July 1, 2028.

98.1 	Sec. 41. WORTHINGTON INDEPENDENT SCHOOL DISTRICT; SALES AND 
98.2 	USE TAX EXEMPTION FOR CONSTRUCTION MATERIALS.
 98.3 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
98.4 	equipment incorporated into the following projects in Independent School District No. 518, 
98.5 	Worthington, are exempt from sales and use tax imposed under Minnesota Statutes, chapter 
98.6 	297A, if the materials, supplies, and equipment are purchased after April 30, 2020, and 
98.7 	before January 1, 2028:
98.8 	(1) construction of a new grades 3 through 5 intermediate school building;
98.9 	(2) construction of a new community education building to serve early childhood, adult 
98.10 	basic education, and the Nobles County Integration Collaborative programs;
98.11 	(3) construction of a new storage facility to serve the Worthington Intermediate School, 
98.12 	Worthington Learning Center and gymnastics facility, and Worthington Community 
98.13 	Education building;
98.14 	(4) reconstruction and replacement of the parking lot at the Worthington Middle School;
98.15 	(5) construction of an addition to the Worthington High School and remodeling of 
98.16 	existing space and expansion of core areas;
98.17 	(6) construction of a new ice arena with associated event space;
98.18 	(7) installation of a turf football field at the Worthington Middle School;
98.19 	(8) demolition of the former West Elementary building and construction of sports fields 
98.20 	with associated parking;
98.21 	(9) reconstruction of Trojan Field and associated facilities; and
98.22 	(10) improvements to the Worthington Learning Center and gymnastics facility.
98.23 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
98.24 	297A.62, subdivision 1, applied and then refunded in the same manner provided for projects 
98.25 	under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Notwithstanding 
98.26 	Minnesota Statutes, section 289A.40, claims for refunds for sales and purchases made after 
98.27 	April 30, 2020, and before October 1, 2020, may be filed until January 1, 2025.
98.28 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
98.29 	exceed $2,840,000.
99.1 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
99.2 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
99.3 	commissioner of revenue.

99.4 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
99.5 	made after April 30, 2020, and before January 1, 2028.

99.6 	Sec. 42. CITY OF DULUTH AND CITY OF ELY; HOUSING DEVELOPMENT 
99.7 	PROJECTS SALES AND USE TAX EXEMPTION.
 99.8 		Subdivision 1.Exemption; refund. (a) Materials and supplies used or consumed in and 
99.9 	equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation, 
99.10 	or remodeling of the following projects in the city of Duluth and the city of Ely are exempt 
99.11 	from sales and use tax under Minnesota Statutes, chapter 297A, provided that the materials, 
99.12 	supplies, and equipment are purchased after December 31, 2023, and before July 1, 2026:
99.13 	(1) an apartment development that includes at least 50 units;
99.14 	(2) a condominium development that includes at least 25 units; and
99.15 	(3) a townhome development that includes at least ten units.
99.16 	(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
99.17 	297A.62, subdivision 1, applied. A refund equal to the tax paid on the gross receipts of 
99.18 	items exempt under this section must be paid to the applicant. The applicant must be the 
99.19 	owner of the development project described in paragraph (a), clauses (1) to (3). The 
99.20 	application must include sufficient information to permit the commissioner of revenue to 
99.21 	verify the tax paid. If the tax was paid by a contractor, subcontractor, or builder, the 
99.22 	contractor, subcontractor, or builder must furnish to the refund applicant a statement including 
99.23 	the cost of the exempt items and the taxes paid on the items. The provisions of Minnesota 
99.24 	Statutes, sections 289A.40 and 289A.50, apply to refunds under this section. Refunds for 
99.25 	eligible purchases must not be issued until after June 30, 2025.
99.26 	(c) The total amount of refunds issued for the exemption under paragraph (a) must not 
99.27 	exceed $3,890,000.
99.28 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1 
99.29 	is appropriated from the 2024 sales tax refund account in the special revenue fund to the 
99.30 	commissioner of revenue.

99.31 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
99.32 	made after December 31, 2023, and before July 1, 2026.

100.1 	Sec. 43. CITY OF ST. CLOUD; REDEVELOPMENT DISTRICT SALES AND USE 
100.2 	TAX EXEMPTION.
 100.3 		Subdivision 1.Exemption; refund. (a) Materials and supplies used in and equipment 
100.4 	incorporated into private redevelopment projects on parcels listed in paragraph (b) are 
100.5 	exempt, provided the resulting development is subject to property taxes.
100.6 	(b) The exemption in this section applies to the following parcels, and adjacent roads 
100.7 	and right of ways, with the tax identification numbers:
100.8 	(1) in Stearns County: 82517020000 (Lady Slipper Catalyst Site); 82515440001 (North 
100.9 	Riverfront Catalyst Site); 82515470000; 82515480000 (Empire Catalyst Site); 82518760015 
100.10 	(Swan Lot Catalyst Site); 82528850020 (Riverboat Lot Catalyst Site); and 82528850001 
100.11 	(Former Herberger's); and
100.12 	(2) in Benton County: 170037810 (Transit Oriented Development Catalyst Site); 
100.13 	170058101 (Ace Block Catalyst Site); 170042000; 170041600; 170041100; 170041601; 
100.14 	170041200; 170041800; 170059600 (Star Bank Catalyst Site); 170059300 (Riverfront South 
100.15 	Catalyst Site); 170058300; 170059200; 170058600; 170058800; 170059100; and 170058900.
100.16 	(c) The tax must be imposed and collected as if the rate under Minnesota Statutes, section 
100.17 	297A.62, subdivision 1, applied. A refund equal to the tax paid on the gross receipts of 
100.18 	items exempt under this section must be paid to the applicant. The applicant must be the 
100.19 	owner of the development described in paragraph (b), clauses (1) and (2). The application 
100.20 	must include sufficient information to permit the commissioner of revenue to verify the tax 
100.21 	paid. If the tax was paid by a contractor, subcontractor, or builder, the contractor, 
100.22 	subcontractor, or builder must furnish to the refund applicant a statement including the cost 
100.23 	of the exempt items and the taxes paid on the items. The provisions of sections 289A.40 
100.24 	and 289A.50 apply to refunds under this section.
100.25 	(d) The exemption under this section applies only for sales and purchases made after 
100.26 	May 31, 2024, and before June 1, 2026.
100.27 		Subd. 2.Appropriation; limit on refunds. The amount required to pay the refunds 
100.28 	under subdivision 1 is appropriated from the 2024 sales tax refund account in the special 
100.29 	revenue fund to the commissioner of revenue. The commissioner must not pay more than 
100.30 	$3,060,000 in refunds for purchases exempt under this section. Refunds must be processed 
100.31 	and issued in the order that complete and accurate applications are received by the 
100.32 	commissioner.

101.1 	EFFECTIVE DATE. This section is effective for sales and purchases made after May 
101.2 	31, 2024, and before June 1, 2026.

101.3 	Sec. 44. TRANSFER.
 101.4 	$33,910,000 in fiscal year 2024 is transferred from the general fund to the 2024 sales 
101.5 	tax refund account established under Minnesota Statutes, section 270C.155. This is a onetime 
101.6 	transfer.

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

101.8 	Sec. 45. REPEALER.
 101.9 	(a) Minnesota Statutes 2022, sections 13.4967, subdivision 5; 297D.02; 297D.03; 
101.10 	297D.05; 297D.09, subdivisions 1 and 2; 297D.12; and 297D.13, are repealed.
101.11 	(b) Minnesota Statutes 2023 Supplement, sections 297D.01; 297D.04; 297D.06; 297D.07; 
101.12 	297D.08; 297D.085; 297D.09, subdivision 1a; 297D.10; and 297D.11, are repealed.

101.13 	EFFECTIVE DATE. This section is effective August 1, 2024.

101.14 	ARTICLE 5
101.15 	TAX INCREMENT FINANCING

101.16 	Section 1. Laws 2010, chapter 389, article 7, section 22, as amended by Laws 2011, chapter 
101.17 	112, article 11, section 16, is amended to read:
101.18 	Sec. 22. CITY OF RAMSEY; TAX INCREMENT FINANCING DISTRICT; 
101.19 	SPECIAL RULES.
 101.20 	(a) If the city of Ramsey or an authority of the city elects upon the adoption of a tax 
101.21 	increment financing plan for a district, the rules under this section apply to a redevelopment 
101.22 	tax increment financing district established by the city or an authority of the city. The 
101.23 	redevelopment tax increment district includes parcels within the area bounded on the east 
101.24 	by Ramsey Boulevard, on the north by Bunker Lake Boulevard as extended west to Llama 
101.25 	Street, on the west by Llama Street, and on the south by a line running parallel to and 600 
101.26 	feet south of the southerly right-of-way for U.S. Highway 10, but including Parcels 
101.27 	28-32-25-43-0007 and 28-32-25-34-0002 in their entirety, and excluding the Anoka County 
101.28 	Regional Park property in its entirety. A parcel within this area that is included in a tax 
101.29 	increment financing district that was certified before the date of enactment of this act may 
101.30 	be included in the district created under this act if the initial district is decertified.
102.1 	(b) The requirements for qualifying a redevelopment tax increment district under 
102.2 	Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcels located 
102.3 	within the district.
102.4 	(c) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district. 
102.5 	Eligible expenditures within the district include but are not limited to (1) the city's share of 
102.6 	the costs necessary to provide for the construction of the Northstar Transit Station and 
102.7 	related infrastructure, including structured parking, a pedestrian overpass, and roadway 
102.8 	improvements, (2) the cost of land acquired by the city or the housing and redevelopment 
102.9 	authority in and for the city of Ramsey within the district prior to the establishment of the 
102.10 	district, and (3) the cost of public improvements installed within the tax increment financing 
102.11 	district prior to the establishment of the district.
102.12 	(d) The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities 
102.13 	must be undertaken within a five-year period from the date of certification of a tax increment 
102.14 	financing district, is considered to be met for the district if the activities were undertaken 
102.15 	within ten years from the date of certification of the district.
102.16 	(e) Except for administrative expenses, the in-district percentage for purposes of the 
102.17 	restriction on pooling under Minnesota Statutes, section 469.1763, subdivision 2, for this 
102.18 	district is 100 percent.
102.19 	(f) The requirement of Minnesota Statutes, section 469.177, subdivision 4, does not 
102.20 	apply to Parcels 28-32-25-42-0021 and 28-32-25-41-0014, where development occurred 
102.21 	after enactment of Laws 2010, chapter 389, article 7, section 22, and prior to adoption of 
102.22 	the tax increment financing plan for the district.
102.23 	(g) The requirement of Minnesota Statutes, section 469.178, subdivision 7, paragraph 
102.24 	(b), is considered to be met for the district if the city adopts interfund loan resolutions 
102.25 	reflecting the terms and conditions required by Minnesota Statutes, section 469.178, 
102.26 	subdivision 7, paragraph (d), by December 31, 2024.

102.27 	EFFECTIVE DATE. This section is effective the day after the city of Ramsey and its 
102.28 	chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and 
102.29 	3.

103.1 	Sec. 2. Laws 2014, chapter 308, article 6, section 9, as amended by Laws 2017, First 
103.2 	Special Session chapter 1, article 6, section 12, is amended to read:
103.3 	Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.
 103.4 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
103.5 	the meanings given them.
103.6 	(b) "City" means the city of Maple Grove.
103.7 	(c) "Project area" means all or a portion of the area in the city commencing at a point 
103.8 	130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of Section 
103.9 	23, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way 
103.10 	line of Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock 
103.11 	Lane to a point on the west line of the east one-half of the Southeast Quarter of section 23, 
103.12 	thence south along said west line a distance of 1,200 feet; thence easterly to the east line of 
103.13 	Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees 
103.14 	East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West a distance 
103.15 	of 650 feet; thence northerly to a point on the northerly right-of-way line of 81st Avenue 
103.16 	North, 650 feet westerly measured at right angles, from the east line of the Northwest Quarter 
103.17 	of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to the west 
103.18 	line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55 
103.19 	degrees West to the south line of the Northwest Quarter of the Northwest Quarter of Section 
103.20 	24; thence West along said south line to the east right-of-way line of Zachary Lane; thence 
103.21 	North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1, 
103.22 	Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of said 
103.23 	Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition; thence 
103.24 	South along the east line of said Outlot A and its southerly extension to the south right-of-way 
103.25 	line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way 
103.26 	line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter of 
103.27 	Section 24; thence South along said east line to the north line of the South Half of the 
103.28 	Northeast Quarter of Section 24; thence East along said north line to the westerly right-of-way 
103.29 	line of Jefferson Highway North; thence southerly along the westerly right-of-way line of 
103.30 	Jefferson Highway to the centerline of CSAH 130; thence continuing South along the west 
103.31 	right-of-way line of Pilgrim Lane North to the westerly extension of the north line of Outlot 
103.32 	A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park North 
103.33 	Fourth Addition to the northeast corner of said Outlot A; thence southerly along the east 
103.34 	line of said Outlot A to the southeast corner of said Outlot A; thence easterly along the south 
104.1 	line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line of State 
104.2 	Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the 
104.3 	westerly right-of-way line of State Highway 169 and the northerly right-of-way line of 
104.4 	Interstate 694 to its intersection with the southerly extension of the easterly right-of-way 
104.5 	line of Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary 
104.6 	Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence 
104.7 	westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning 
104.8 	and there terminating, provided that the project area includes the rights-of-way for all present 
104.9 	and future highway interchanges abutting the area described in this paragraph, and may 
104.10 	include any additional property necessary to cause the property included in the tax increment 
104.11 	financing district to consist of complete parcels.
104.12 	(d) "Soil deficiency district" means a type of tax increment financing district consisting 
104.13 	of a portion of the project area in which the city finds by resolution that the following 
104.14 	conditions exist:
104.15 	(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in 
104.16 	the district require substantial filling, grading, or other physical preparation for use; and
104.17 	(2) the estimated cost of the physical preparation under clause (1), but excluding costs 
104.18 	directly related to roads as defined in Minnesota Statutes, section 160.01, and local 
104.19 	improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, clauses 
104.20 	(1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land before 
104.21 	completion of the preparation.
104.22 		Subd. 2.Special rules. (a) If the city elects, upon the adoption of the tax increment 
104.23 	financing plan for a district, the rules under this section apply to a redevelopment district, 
104.24 	renewal and renovation district, soil condition district, or soil deficiency district established 
104.25 	by the city or a development authority of the city in the project area.
104.26 	(b) Prior to or upon the adoption of the first tax increment plan subject to the special 
104.27 	rules under this subdivision, the city must find by resolution that parcels consisting of at 
104.28 	least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way, 
104.29 	are characterized by one or more of the following conditions:
104.30 	(1) peat or other soils with geotechnical deficiencies that impair development of 
104.31 	commercial buildings or infrastructure;
104.32 	(2) soils or terrain that require substantial filling in order to permit the development of 
104.33 	commercial buildings or infrastructure;
105.1 	(3) landfills, dumps, or similar deposits of municipal or private waste;
105.2 	(4) quarries or similar resource extraction sites;
105.3 	(5) floodway; and
105.4 	(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174, 
105.5 	subdivision 10.
105.6 	(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the 
105.7 	relevant condition if at least 70 percent of the area of the parcel contains the relevant 
105.8 	condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by 
105.9 	substandard buildings if substandard buildings occupy at least 30 percent of the area of the 
105.10 	parcel.
105.11 	(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is 
105.12 	extended to eight 13 years for any district, and Minnesota Statutes, section 469.1763, 
105.13 	subdivision 4, does not apply to any district.
105.14 	(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763, 
105.15 	subdivision 2, paragraph (a), not more than 40 percent of the total revenue derived from tax 
105.16 	increments paid by properties in any district, measured over the life of the district, may be 
105.17 	expended on activities outside the district but within the project area.
105.18 	(f) For a soil deficiency district:
105.19 	(1) increments may be collected through 20 25 years after the receipt by the authority 
105.20 	of the first increment from the district;
105.21 	(2) increments may be used only to:
105.22 	(i) acquire parcels on which the improvements described in item (ii) will occur;
105.23 	(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional 
105.24 	cost of installing public improvements directly caused by the deficiencies; and
105.25 	(iii) pay for the administrative expenses of the authority allocable to the district; and
105.26 	(3) any parcel acquired with increments from the district must be sold at no less than 
105.27 	their fair market value.
105.28 	(g) Increments spent for any infrastructure costs, whether inside a district or outside a 
105.29 	district but within the project area, are deemed to satisfy the requirements of Minnesota 
105.30 	Statutes, section 469.176, subdivision 4j.
106.1 	(h) The authority to approve tax increment financing plans to establish tax increment 
106.2 	financing districts under this section expires June 30, 2020.
106.3 	(i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use 
106.4 	increments from a soil deficiency district to acquire parcels and for other infrastructure costs 
106.5 	either inside or outside of the district, but within the project area, if the acquisition or 
106.6 	infrastructure is for a qualified development. For purposes of this paragraph, a development 
106.7 	is a qualified development only if all of the following requirements are satisfied:
106.8 	(1) the city finds, by resolution, that the land acquisition and infrastructure are undertaken 
106.9 	primarily to serve the development;
106.10 	(2) the city has a binding, written commitment and adequate financial assurances from 
106.11 	the developer that the development will be constructed; and
106.12 	(3) the development does not consist of retail trade or housing improvements.

106.13 	EFFECTIVE DATE. (a) The amendment to subdivision 2, paragraph (f), is effective 
106.14 	upon compliance by the city of Maple Grove, Hennepin County, and Independent School 
106.15 	District No. 279 with the requirements of Minnesota Statutes, section 469.1782, subdivision 
106.16 	2.
106.17 	(b) The amendment to subdivision 2, paragraph (d), is effective the day after the 
106.18 	governing body of the city of Maple Grove and its chief clerical officer comply with the 
106.19 	requirements of Minnesota Statutes, section 645.021, subdivisions 2 and 3.

106.20 	Sec. 3. Laws 2017, First Special Session chapter 1, article 6, section 22, is amended to 
106.21 	read:
106.22 	Sec. 22. CITY OF ST. PAUL; FORD SITE REDEVELOPMENT TIF DISTRICT.
 106.23 	(a) For purposes of computing the duration limits under Minnesota Statutes, section 
106.24 	469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul 
106.25 	may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing 
106.26 	District. This authority is limited to the first four years of increment or increments derived 
106.27 	from taxes payable in 2023, whichever occurs first.
106.28 	(b) If the city elects to waive receipt of increment under paragraph (a), for purposes of 
106.29 	applying any limits based on when the district was certified under Minnesota Statutes, 
106.30 	section 469.176, subdivision 6, or 469.1763, the date of certification for the district is deemed 
106.31 	to be January 2 of the property tax assessment year for which increment is first received 
106.32 	under the waiver.
107.1 	(c) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is 
107.2 	extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision 
107.3 	4, relating to the use of increment after the expiration of the five-year period, is extended 
107.4 	to 11 years for the Ford Site Redevelopment Tax Increment Financing District in the city 
107.5 	of St. Paul.

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

107.9 	Sec. 4. CITY OF BROOKLYN CENTER; TIF AUTHORITY.
 107.10 		Subdivision 1.Establishment. Under the special rules established in subdivision 2, the 
107.11 	economic development authority of the city of Brooklyn Center or the city of Brooklyn 
107.12 	Center may establish not more than two redevelopment tax increment financing districts 
107.13 	located wholly within the area in the city identified as the "Opportunity Site," which includes 
107.14 	the area bounded by Shingle Creek Parkway from Hennepin County State-Aid Highway 
107.15 	10 to Summit Drive North; Summit Drive North from Shingle Creek Parkway to marked 
107.16 	Trunk Highway 100; marked Trunk Highway 100 from Summit Drive North to Hennepin 
107.17 	County State-Aid Highway 10; and Hennepin County State-Aid Highway 10 from marked 
107.18 	Trunk Highway 100 to Shingle Creek Parkway, together with internal and adjacent roads 
107.19 	and rights of way.
107.20 		Subd. 2.Special rules. If the city or the authority establishes a tax increment financing 
107.21 	district under this section, the following special rules apply:
107.22 	(1) the district is deemed to meet all the requirements of Minnesota Statutes, section 
107.23 	469.174, subdivision 10;
107.24 	(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district; 
107.25 	and
107.26 	(3) increment generated from the district may be expended on activities within the area 
107.27 	described in subdivision 1 and all such expenditures are deemed expended on activities 
107.28 	within the district for purposes of Minnesota Statutes, section 469.1763.
107.29 		Subd. 3.Expiration. The authority to approve a tax increment financing plan to establish 
107.30 	a tax increment financing district under this section expires on December 31, 2030.

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

108.1 	Sec. 5. CITY OF BROOKLYN PARK; TIF AUTHORITY; VILLAGE CREEK 
108.2 	AREA.
 108.3 		Subdivision 1.Establishment of districts. Upon the termination of Tax Increment 
108.4 	Financing District No. 20 within the city of Brooklyn Park, under the special rules established 
108.5 	in subdivision 2, the economic development authority of the city of Brooklyn Park or city 
108.6 	of Brooklyn Park may establish not more than two redevelopment tax increment financing 
108.7 	districts located wholly within the area of the city of Brooklyn Park. The districts may be 
108.8 	comprised of the following parcels identified by their current parcel identification numbers:

108.9	2011921430101
	2011921440088
	2011921430092
	2011921430099
	2111921330104
	
108.10	2111921340003
	2111921340005
	2111921340006
	2111921340019
	2111921340021
	
108.11	2111921330066
	2111921330068
	2111921340017
	2111921340018
	2811921130004
	
108.12	2811921130005
	2811921140007
	2811921210003
	2811921220002
	2811921220007
	
108.13	2811921240004
	2811921240009
	2811921240010
	2811921240107
	2811921310001
	
108.14	2811921340010
	2911921120032
	2811921130014
	2811921130015
	2811921130024
	
108.15	2811921140012
	2811921210014
	2811921210020
	2811921210023
	2811921210103
	
108.16	2811921220001
	2811921220003
	2811921220005
	2811921240007
	2811921340006
	
108.17	2911921120001
	2911921120004
	2011921440089
	2111921330067
	2111921340002
	
108.18	2111921340004
	2111921340027
	2111921340113
	2811921120001
	2811921130001
	
108.19	2811921130017
	2811921130023
	2811921210001
	2811921210016
	2811921210033
	
108.20	2811921210060
	2811921210101
	2811921240006
	2811921240017
	2911921110004
	
108.21	2911921120005
	2011921430093
	2011921430100
	2011921430102
	2011921430103
	
108.22	2111921330102
	2111921330103
	2111921340001
	2111921340007
	2111921340020
	
108.23	2111921340022
	2811921120002
	2811921120104
	2811921130002
	2811921130020
	
108.24	2811921130021
	2811921210022
	2811921210034
	2811921210099
	2811921210102
	
108.25	2811921220006
	2811921240003
	2811921240012
	2811921340005
	2811921340009
	
108.26	2911921110118
	2911921120006
	2911921120043
	3311921210001
		
108.27 	together with adjacent and internal roads and rights-of-way, and the following roadways 
108.28 	within the city of Brooklyn Park: Zane Avenue North (from and including the intersection 
108.29 	at 78th Avenue North to and including the intersection at Highway 94), Brooklyn Boulevard 
108.30 	(from and including the intersection at the border of Brooklyn Center to and including the 
108.31 	intersection at Kentucky Avenue North), Brookdale Drive North (from and including the 
108.32 	intersection at Zane Avenue North to and including the intersection at Welcome Avenue 
108.33 	North), Village Creek Parkway North, 77th Avenue North (from and including the 
108.34 	intersection at Village Creek Parkway North to and including the intersection at Brookdale 
108.35 	Drive North), 73rd Avenue North/Regent Avenue (from and including the intersection at 
108.36 	Zane Avenue North to and including the intersection at Brooklyn Boulevard).
109.1 		Subd. 2.Special rules. If the city or the authority establishes any tax increment financing 
109.2 	district under subdivision 1, the following special rules apply:
109.3 	(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section 
109.4 	469.174, subdivision 10; and
109.5 	(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
109.6 		Subd. 3.Expiration. The authority to request certification of any district under this 
109.7 	section expires on December 31, 2030.

109.8 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
109.9 	city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota 
109.10 	Statutes, section 645.021, subdivisions 2 and 3.

109.11 	Sec. 6. CITY OF BROOKLYN PARK; TIF AUTHORITY; 610/ZANE AREA.
 109.12 		Subdivision 1.Establishment of districts. Under the special rules established in 
109.13 	subdivision 2, the economic development authority of the city of Brooklyn Park or the city 
109.14 	of Brooklyn Park may establish not more than two redevelopment districts located wholly 
109.15 	within the area of the city of Brooklyn Park. The districts may be comprised of the following 
109.16 	parcels identified by their current parcel identification numbers together with adjacent and 
109.17 	internal roads and rights-of-way:

109.18	0811921410009
	0811921140050
	0811921140051
	0911921120005
	0911921210007
	
109.19	0911921230008
	0911921230049
	0911921240006
	0911921240009
	0911921310004
	
109.20	0911921320018
	0911921330009
	0911921430006
	0911921430014
	0911921430015
	
109.21	0911921430019
	0911921430020
	0911921430028
	0911921430030
	0911921430033
	
109.22	0911921430037
	0911921430038
	0911921430040
	0911921430048
	0911921430054
	
109.23	0911921430055
	0911921430059
	0911921430069
	0911921430071
	0911921430072
	
109.24	0911921430076
	0911921430080
	0911921430081
	0911921430082
	0911921430083
	
109.25	0911921430086
	0911921430087
	0911921430088
	0911921430094
	0911921430095
	
109.26	0911921430099
	0911921430104
	0911921430114
	0911921210005
	0911921210095
	
109.27	0911921220070
	0911921220071
	0911921230009
	0911921230010
	0911921230011
	
109.28	0911921230012
	0911921230013
	0911921240005
	0911921240008
	0911921310007
	
109.29	0911921310009
	0911921320023
	0911921330008
	0911921330011
	0911921340008
	
109.30	0911921340014
	0911921340017
	0911921430018
	0911921430024
	0911921430025
	
109.31	0911921430029
	0911921430034
	0911921430035
	0911921430039
	0911921430044
	
109.32	0911921430045
	0911921430049
	0911921430058
	0911921430060
	0911921430061
	
109.33	0911921430062
	0911921430063
	0911921430067
	0911921430068
	0911921430090
	
109.34	0911921430093
	0911921430097
	0911921430098
	0911921430102
	0911921430103
	
110.1	0911921430112
	0911921430113
	0911921430120
	0811921440008
	0911921210006
	
110.2	0911921210096
	0911921210100
	0911921210101
	0911921220008
	0911921220017
	
110.3	0911921230014
	0911921230015
	0911921240004
	0911921240007
	0911921310010
	
110.4	0911921310011
	0911921310012
	0911921330010
	0911921330012
	0911921340009
	
110.5	0911921430013
	0911921430017
	0911921430021
	0911921430022
	0911921430026
	
110.6	0911921430031
	0911921430032
	0911921430036
	0911921430041
	0911921430042
	
110.7	0911921430046
	0911921430053
	0911921430057
	0911921430064
	0911921430065
	
110.8	0911921430073
	0911921430077
	0911921430078
	0911921430100
	0911921430105
	
110.9	0911921430107
	0911921430108
	0911921430110
	0911921430115
	0911921430117
	
110.10	0911921430118
	0911921210097
	0911921210099
	0911921220014
	0911921220015
	
110.11	0911921220068
	0911921230005
	0911921320016
	0911921320021
	0911921320024
	
110.12	0911921330006
	0911921340015
	0911921340016
	0911921430009
	0911921430010
	
110.13	0911921430011
	0911921430012
	0911921430016
	0911921430023
	0911921430027
	
110.14	0911921430043
	0911921430047
	0911921430050
	0911921430051
	0911921430052
	
110.15	0911921430056
	0911921430066
	0911921430070
	0911921430074
	0911921430075
	
110.16	0911921430079
	0911921430084
	0911921430085
	0911921430089
	0911921430091
	
110.17	0911921430092
	0911921430096
	0911921430101
	0911921430106
	0911921430109
	
110.19110.18
	0911921430111
	0911921430116
	0911921430119
	0611921440003
	Unplatted 
0611921
	
110.20 		Subd. 2.Special rules. If the city or the authority establishes any tax increment financing 
110.21 	district under subdivision 1, the following special rules apply:
110.22 	(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section 
110.23 	469.174, subdivision 10; and
110.24 	(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
110.25 		Subd. 3.Expiration. The authority to request certification of any district under this 
110.26 	section expires on December 31, 2030.

110.27 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
110.28 	city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota 
110.29 	Statutes, section 645.021, subdivisions 2 and 3.

110.30 	Sec. 7. CITY OF BROOKLYN PARK; TIF AUTHORITY; BIOTECH AREA.
 110.31 		Subdivision 1.Establishment. Under the special rules established in subdivision 2, the 
110.32 	economic development authority of the city of Brooklyn Park or the city of Brooklyn Park 
110.33 	may establish not more than two redevelopment districts located wholly within the area of 
110.34 	the city of Brooklyn Park. The districts may be comprised of the following parcels identified 
111.1 	by their current parcel identification numbers together with adjacent and internal roads and 
111.2 	rights-of-way:

111.3	0711921110007
	0711921140001
	0711921140002
	0711921140007
	0711921240002
	
111.4	0711921240004
	0711921110005
	0711921120009
	0711921220003
	0711921230001
	
111.5	0711921230002
	0811921230004
	0711921110004
	0711921110006
	0711921110008
	
111.6	0711921120005
	0711921130005
	0711921140005
	0711921140006
	0711921210003
	
111.7	0711921110003
	0711921120006
	0811921230002
	0811921220002
		
111.8 		Subd. 2.Special rules. If the city or the authority establishes any tax increment financing 
111.9 	district under subdivision 1, the following special rules apply:
111.10 	(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section 
111.11 	469.174, subdivision 10; and
111.12 	(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
111.13 		Subd. 3.Expiration. The authority to request certification of any district under this 
111.14 	section expires on December 31, 2030.

111.15 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
111.16 	city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota 
111.17 	Statutes, section 645.021, subdivisions 2 and 3.

111.18 	Sec. 8. CITY OF EDEN PRAIRIE; TAX INCREMENT FINANCING AUTHORITY; 
111.19 	EDEN PRAIRIE CENTER.
 111.20 		Subdivision 1.Establishment. Pursuant to the special rules established in subdivision 
111.21 	2, the economic development authority of the city of Eden Prairie or the city of Eden Prairie 
111.22 	may establish not more than two redevelopment districts located within the area of the city 
111.23 	of Eden Prairie consisting of parcels, together with adjacent roads and rights-of-way, within 
111.24 	the area surrounded by Flying Cloud Drive, West 78th Street, and Prairie Center Drive.
111.25 		Subd. 2.Special rules. If the city or authority establishes a tax increment financing 
111.26 	district under this section, the following special rules apply:
111.27 	(1) the districts are deemed to meet the requirements of Minnesota Statutes, section 
111.28 	469.174, subdivision 10; and
111.29 	(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
111.30 		Subd. 3.Expiration. The authority to approve a tax increment financing plan to establish 
111.31 	a tax increment financing district under this section expires December 31, 2030.

112.1 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
112.2 	city of Eden Prairie and its chief clerical officer comply with Minnesota Statutes, section 
112.3 	645.021, subdivisions 2 and 3.

112.4 	Sec. 9. CITY OF EDINA; 72ND & FRANCE 2 TIF DISTRICT; FIVE-YEAR RULE 
112.5 	EXTENSION; DURATION EXTENSION.
 112.6 	(a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is 
112.7 	extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision 
112.8 	4, relating to the use of increment after the expiration of the five-year period, is extended 
112.9 	to 11 years for Tax Increment Financing District 72nd & France 2 in the city of Edina.
112.10 	(b) Notwithstanding Minnesota Statutes, section 469.176, subdivisions 1b and 1d, the 
112.11 	city of Edina or its housing and redevelopment authority may elect to extend the duration 
112.12 	of the district by five years for Tax Increment Financing District 72nd & France 2.

112.13 	EFFECTIVE DATE. Paragraph (a) is effective the day after the governing body of the 
112.14 	city of Edina and its chief clerical officer comply with the requirements of Minnesota 
112.15 	Statutes, section 645.021, subdivisions 2 and 3. Paragraph (b) is effective upon compliance 
112.16 	by the city of Edina, Hennepin County, and Independent School District No. 273 with the 
112.17 	requirements of Minnesota Statutes, section 469.1782, subdivision 2.

112.18 	Sec. 10. CITY OF EDINA; 70TH & FRANCE TIF DISTRICT; FIVE-YEAR RULE 
112.19 	EXTENSION; DURATION EXTENSION.
 112.20 	(a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is 
112.21 	extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision 
112.22 	4, relating to the use of increment after the expiration of the five-year period, is extended 
112.23 	to 11 years for Tax Increment Financing District 70th & France in the city of Edina.
112.24 	(b) Notwithstanding Minnesota Statutes, section 469.176, subdivisions 1b and 1d, the 
112.25 	city of Edina or its housing and redevelopment authority may elect to extend the duration 
112.26 	of the district by five years for Tax Increment Financing District 70th & France.

112.27 	EFFECTIVE DATE. Paragraph (a) is effective the day after the governing body of the 
112.28 	city of Edina and its chief clerical officer comply with the requirements of Minnesota 
112.29 	Statutes, section 645.021, subdivisions 2 and 3. Paragraph (b) is effective upon compliance 
112.30 	by the city of Edina, Hennepin County, and Independent School District No. 273 with the 
112.31 	requirements of Minnesota Statutes, section 469.1782, subdivision 2.

113.1 	Sec. 11. CITY OF MINNETONKA; TAX INCREMENT FINANCING AUTHORITY; 
113.2 	FIVE-YEAR RULE EXTENSION.
 113.3 	The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is 
113.4 	extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision 
113.5 	4, relating to the use of increment after the expiration of the five-year period, is extended 
113.6 	to 11 years for the renewal and renovation tax increment financing district established in 
113.7 	2021 by the economic development authority in the city of Minnetonka.

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

113.11 	Sec. 12. CITY OF MOORHEAD; TAX INCREMENT FINANCING DISTRICT 
113.12 	NO. 31; FIVE-YEAR RULE EXTENSION.
 113.13 	(a) The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that 
113.14 	activities must be undertaken within a five-year period from the date of certification of a 
113.15 	tax increment financing district, are extended to ten years for Tax Increment Financing 
113.16 	District No. 31 administered by the city of Moorhead.
113.17 	(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, relating 
113.18 	to the use of increment after the expiration of the five-year period under Minnesota Statutes, 
113.19 	section 469.1763, subdivision 3, are extended to the 11th year for Tax Increment Financing 
113.20 	District No. 31 administered by the city of Moorhead.

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

113.24 	Sec. 13. CITY OF PLYMOUTH; TAX INCREMENT FINANCING; 
113.25 	ESTABLISHMENT.
 113.26 		Subdivision 1.Establishment. Under the special rules established in subdivision 2, the 
113.27 	city of Plymouth may establish not more than two redevelopment districts located wholly 
113.28 	within the city of Plymouth, Hennepin County, Minnesota, limited to the area identified as 
113.29 	the city center district in the Plymouth, Minnesota Zoning Map in effect on January 1, 2024, 
113.30 	and adopted pursuant to section 21000.12 of the Plymouth Zoning Code of Ordinances.
113.31 		Subd. 2.Special rules. If the city establishes a tax increment financing district under 
113.32 	this section, the following special rules apply:
114.1 	(1) the district is deemed to meet the requirements of Minnesota Statutes, section 469.174, 
114.2 	subdivision 10;
114.3 	(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district; 
114.4 	and
114.5 	(3) the five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is 
114.6 	extended to ten years, and the period under Minnesota Statutes, section 469.1763, subdivision 
114.7 	4, relating to the use of increment after the expiration of the five-year period, is extended 
114.8 	to 11 years.
114.9 		Subd. 3.Expiration. The authority to approve a tax increment financing plan to establish 
114.10 	a tax increment financing district under this section expires December 31, 2030.

114.11 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
114.12 	city of Plymouth and its chief clerical officer comply with Minnesota Statutes, section 
114.13 	645.021, subdivisions 2 and 3.

114.14 	Sec. 14. CITY OF ST. CLOUD; TAX INCREMENT FINANCING; 
114.15 	ESTABLISHMENT.
 114.16 		Subdivision 1.Establishment. Under the special rules established in subdivision 2, the 
114.17 	economic development authority of the city of St. Cloud or the city of St. Cloud may establish 
114.18 	not more than two redevelopment districts adjacent to the Division Street corridor or within 
114.19 	the Central Business District or Fringe Central District, limited to the following parcels 
114.20 	identified by tax identification numbers, together with the adjacent roads and rights-of-way:
114.21 	(1) in Stearns County: 82517020000 (Lady Slipper Catalyst Site); 82515440001 (North 
114.22 	Riverfront Catalyst Site); 82515470000; 82515480000 (Empire Catalyst Site); 82518760015 
114.23 	(Swan Lot Catalyst Site); 82528850020 (Riverboat Lot Catalyst Site); and 82528850001 
114.24 	(Former Herbergers); and
114.25 	(2) in Benton County: 170037810 (Transit Oriented Development Catalyst Site); 
114.26 	170058101 (Ace Block Catalyst Site); 170042000; 170041600; 170041100; 170041601; 
114.27 	170041200; 170041800; 170059600 (Star Bank Catalyst Site); 170059300 (Riverfront South 
114.28 	Catalyst Site); 170058300; 170059200; 170058600; 170058800; 170059100; and 170058900.
114.29 		Subd. 2.Special rules. If the city or authority establishes a tax increment financing 
114.30 	district under this section, the following special rules apply:
114.31 	(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section 
114.32 	469.174, subdivision 10;
115.1 	(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district; 
115.2 	and
115.3 	(3) increments generated from the districts may be expended for the reconstruction, 
115.4 	expansion, or new construction of adjacent public infrastructure, including but not limited 
115.5 	to public parking, streets, and utilities necessary to serve the development, and all 
115.6 	expenditures under this clause are deemed expended on activities within the district for 
115.7 	purposes of Minnesota Statutes, section 469.1763.
115.8 		Subd. 3.Expiration. The authority to approve a tax increment financing plan to establish 
115.9 	a tax increment financing district under this section expires on December 31, 2030.

115.10 	EFFECTIVE DATE. This section is effective the day after the city of St. Cloud and 
115.11 	its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 
115.12 	and 3.

115.13 	ARTICLE 6
115.14 	LOCAL SALES AND USE TAXES

115.15 	Section 1. Minnesota Statutes 2023 Supplement, section 297A.99, subdivision 1, is 
115.16 	amended to read:
115.17 		Subdivision 1.Authorization; scope. (a) A political subdivision of this state may impose 
115.18 	a general sales tax (1) under section 297A.9915, (2) under section 297A.992, (3) under 
115.19 	section 297A.9925, (4) under section 297A.993, (5) if permitted by special law, or (6) if 
115.20 	the political subdivision enacted and imposed the tax before January 1, 1982, and its 
115.21 	predecessor provision.
115.22 	(b) This section governs the imposition of a general sales tax by the political subdivision. 
115.23 	The provisions of this section preempt the provisions of any special law:
115.24 	(1) enacted before June 2, 1997, or;
115.25 	(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law 
115.26 	provision from this section's rules by reference.; or
115.27 	(3) enacted before July 1, 2024.
115.28 	(c) This section does not apply to or preempt a sales tax on motor vehicles. Beginning 
115.29 	July 1, 2019, no political subdivision may impose a special excise tax on motor vehicles 
115.30 	unless it is imposed under section 297A.993.
116.1 	(d) A political subdivision may not advertise or expend funds for the promotion of a 
116.2 	referendum to support imposing a local sales tax and may only spend funds related to 
116.3 	imposing a local sales tax to:
116.4 	(1) conduct the referendum;
116.5 	(2) disseminate information included in the resolution adopted under subdivision 2, but 
116.6 	only if the disseminated information includes a list of specific projects and the cost of each 
116.7 	individual project;
116.8 	(3) provide notice of, and conduct public forums at which proponents and opponents on 
116.9 	the merits of the referendum are given equal time to express their opinions on the merits of 
116.10 	the referendum;
116.11 	(4) provide facts and data on the impact of the proposed local sales tax on consumer 
116.12 	purchases; and
116.13 	(5) provide facts and data related to the individual programs and projects to be funded 
116.14 	with the local sales tax.

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

116.16 	Sec. 2. Minnesota Statutes 2022, section 297A.99, subdivision 3, is amended to read:
116.17 		Subd. 3.Legislative authority required before voter approval; requirements for 
116.18 	adoption, use, termination. (a) A political subdivision must receive legislative authority 
116.19 	to impose a local sales tax before submitting the tax for approval by voters of the political 
116.20 	subdivision. Imposition of a local sales tax is subject to approval by voters of the political 
116.21 	subdivision at a general election. The election must be conducted at a general election within 
116.22 	the two-year period after the governing body of the political subdivision has received 
116.23 	authority to impose the tax. If the authorizing legislation allows the tax to be imposed for 
116.24 	more than one project, there must be a separate question approving the use of the tax revenue 
116.25 	for each project. Notwithstanding the authorizing legislation, a project that is not approved 
116.26 	by the voters may not be funded with the local sales tax revenue and the termination date 
116.27 	of the tax set in the authorizing legislation must be reduced proportionately based on the 
116.28 	share of that project's cost to the total costs of all projects included in the authorizing 
116.29 	legislation.
116.30 	(b) The proceeds of the tax must be dedicated exclusively to payment of the construction 
116.31 	and rehabilitation costs and associated bonding costs related to the specific capital 
116.32 	improvement projects that were approved by the voters under paragraph (a). The political 
116.33 	subdivision must not commingle revenue from a tax for a project or projects approved by 
117.1 	the voters under this section with revenue from a local sales tax authorized under section 
117.2 	297A.9901 or any other law, ordinance, city charter, or other provision, including an 
117.3 	extension of or modification to the uses of a local sales tax for a different project.
117.4 	(c) The political subdivision imposing the tax must notify the commissioner at least 60 
117.5 	days before the date the political subdivision anticipates that revenues raised from the tax 
117.6 	are sufficient to fund the projects approved by the voters under paragraph (a). The notification 
117.7 	applies to each authorization of a tax and each project approved by the voters under paragraph 
117.8 	(a), regardless of whether the legislature has authorized the tax notwithstanding the 
117.9 	requirements of paragraph (d). The tax must terminate after the revenues raised are sufficient 
117.10 	to fund the projects approved by the voters under paragraph (a). The political subdivision 
117.11 	must notify the commissioner within 30 days of the date that sufficient revenues have been 
117.12 	raised to fund the projects approved by the voters under paragraph (a).
117.13 	(d) After a sales tax imposed by a political subdivision has expired or been terminated, 
117.14 	the political subdivision is prohibited from imposing a local sales tax for a period of one 
117.15 	year.
117.16 	(e) Notwithstanding paragraph (a), if a political subdivision received voter approval to 
117.17 	seek authority for a local sales tax at the November 6, 2018, general election and is granted 
117.18 	authority to impose a local sales tax before January 1, 2021, the tax may be imposed without 
117.19 	an additional referendum provided that it meets the requirements of subdivision 2 and the 
117.20 	list of specific projects contained in the resolution does not conflict with the projects listed 
117.21 	in the approving referendum.
117.22 	(f) (e) If a tax is terminated because sufficient revenues have been raised, any amount 
117.23 	of tax collected under subdivision 9, after sufficient revenues have been raised and before 
117.24 	the quarterly termination required under subdivision 12, paragraph (a), that is greater than 
117.25 	the average quarterly revenues collected over the immediately preceding 12 calendar months 
117.26 	must be retained by the commissioner for deposit in the general fund.
117.27 	(f) The total tax rate imposed by a political subdivision under this section or any other 
117.28 	law, ordinance, or city charter and section 297A.9901 must not exceed one percent, except 
117.29 	that this limit does not apply to taxes authorized under this section or any other law, 
117.30 	ordinance, or city charter before June 1, 2023. Upon expiration of a tax authorized under 
117.31 	this section or any other law, ordinance, or city charter, the limit in this paragraph applies. 
117.32 	If a local sales tax is imposed by a county, the limit under this paragraph includes any tax 
117.33 	authorized under section 297A.993.

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

118.1 	Sec. 3. [297A.9901] SPECIFIED CAPITAL PROJECTS; LOCAL AUTHORIZATION 
118.2 	ALLOWED; REQUIREMENTS.
118.3 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
118.4 	the meanings given.
118.5 	(b) "Airport" means an airport not subject to the governance of the metropolitan airports 
118.6 	commission organized under the provisions of sections 473.601 to 473.679.
118.7 	(c) "Associated bonding costs" means the cost of issuing bonds to finance a specified 
118.8 	capital project including but not limited to the costs of issuance of the bonds, capitalized 
118.9 	interest, and the payment of principal and interest on the bonds.
118.10 	(d) "Convention center" means a structure:
118.11 	(1) that has a minimum of 50,000 square feet for exhibit and meeting spaces; and
118.12 	(2) the square footage of which is expressly designed and constructed for the purposes 
118.13 	of presenting conventions, public meetings, and exhibitions, and includes parking facilities 
118.14 	that serve the center.
118.15 	(e) "Correctional facility" means a public facility licensed and inspected by the 
118.16 	commissioner of corrections established and operated for the detention and confinement of 
118.17 	adults or juveniles, including but not limited to programs or facilities operating under chapter 
118.18 	401, secure juvenile detention facilities, municipal holding facilities, juvenile temporary 
118.19 	holdover facilities, regional or local jails, lockups, work houses, work farms, and detention 
118.20 	facilities.
118.21 	(f) "District court" means one of the ten judicial district courts in the state of Minnesota 
118.22 	subject to chapter 484.
118.23 	(g) "Law enforcement center" means a facility that serves multiple communities and 
118.24 	provides public safety functions, including a fire or police station and a facility that provides 
118.25 	emergency 911 and dispatch functions, training facilities, court security and support, 
118.26 	emergency operations, evidence and record retention, and other public safety services.
118.27 	(h) "Library" means a library that is part of a regional public library system as designated 
118.28 	by the regional library board under section 134.20, excluding a library located within a 
118.29 	metropolitan county.
118.30 	(i) "Metropolitan county" has the meaning given in section 473.121, subdivision 4.
118.31 	(j) "Park" means a park of regional significance located entirely outside of a metropolitan 
118.32 	county that meets at least three of the criteria specified in items 1, 2, and 4 to 6 in the 
119.1 	Department of Natural Resources Parks and Trails Legacy Plan dated February 14, 2011, 
119.2 	required by Laws 2009, chapter 172, article 3, section 2, paragraph (e).
119.3 	(k) "Political subdivision" means a county located in Minnesota or a statutory or home 
119.4 	rule charter city located in Minnesota.
119.5 	(l) "Prevailing wage rate" has the meaning given in section 177.42, subdivision 6.
119.6 	(m) "Regional community center" means a structure that is expressly designed and 
119.7 	constructed for the purposes of recreational, cultural, educational, or public group activities, 
119.8 	or for civic engagement or social support, serving both residents and nonresidents of the 
119.9 	community.
119.10 	(n) "Regional sports complex" means a defined area of sports pavilions, stadiums, 
119.11 	gymnasiums, swimming pools, or similar facilities where regional tournaments may be 
119.12 	hosted, and where members of the public engage in physical exercise, participate in athletic 
119.13 	competitions, witness sporting events, and host regional tournaments.
119.14 	(o) "Specified capital project" means an airport, convention center, correctional facility, 
119.15 	district court, law enforcement center, library, park, regional community center, regional 
119.16 	sports complex, or trail.
119.17 	(p) "Trail" means:
119.18 	(1) a trail of regional significance located entirely outside of a metropolitan county that 
119.19 	meets at least three of the criteria specified in items 1 to 5 in the Department of Natural 
119.20 	Resources Parks and Trails Legacy Plan dated February 14, 2011, required by Laws 2009, 
119.21 	chapter 172, article 3, section 2, paragraph (e); or
119.22 	(2) a nonstate designated regional or state trail that provides at least an hour of outdoor 
119.23 	recreation opportunity or connects to other facilities that can provide at least an hour of 
119.24 	recreation in total:
119.25 	(i) for which the trail or trail extension connects to regional defined assets including a 
119.26 	regionally designated park or higher education institution;
119.27 	(ii) is included in a regional or community trail system plan; or
119.28 	(iii) connects spaces of 25 acres to other trails or commercial areas.
119.29 		Subd. 2.Policy; requirements. It is the public policy of the state of Minnesota that local 
119.30 	sales taxes are to be used instead of traditional local revenues only for construction and 
119.31 	rehabilitation of capital projects when a clear regional benefit beyond the taxing jurisdiction 
119.32 	can be demonstrated. Capital projects funded by local sales taxes must serve a regional 
120.1 	population, provide economic development benefits and opportunities, or draw individuals 
120.2 	to the region. If charged, access fees for the use of capital projects funded by a local sales 
120.3 	tax must be equal for residents and nonresidents of the taxing jurisdiction. Use of local sales 
120.4 	tax revenues for local projects decreases the benefits to taxpayers of the deductibility of 
120.5 	local property taxes and the state assistance provided through the property tax refund system 
120.6 	and increases the fiscal inequities between similar communities.
120.7 		Subd. 3.Local authorization allowed. Notwithstanding section 477A.016, or any other 
120.8 	law or ordinance, a political subdivision may impose, extend, or modify the uses of a local 
120.9 	sales tax to finance a specified capital project without legislative authorization by 
120.10 	demonstrating the regional significance of each specified capital project as provided in 
120.11 	subdivisions 4 and 7 to 9. The authorization under this section applies to an extension to or 
120.12 	modification of a local sales tax authorized under special law or the requirements of section 
120.13 	297A.99.
120.14 		Subd. 4.Demonstration of regional benefit; resolution required. (a) A political 
120.15 	subdivision seeking to impose a local sales tax must conduct a public hearing to provide 
120.16 	information regarding each specified capital project the political subdivision proposes to 
120.17 	fund with the local sales tax. Notice of the hearing must be provided at least 60 days in 
120.18 	advance of the hearing and must include:
120.19 	(1) the tax rate;
120.20 	(2) a description of each project proposed to be funded by the local sales tax; and
120.21 	(3) the amount of tax revenue that would be used for each project and the estimated time 
120.22 	needed to raise that amount of revenue, inclusive of the amount distributed under subdivision 
120.23 	6, paragraph (a), clause (3), if that option is selected.
120.24 	(b) After conducting the public hearing required under paragraph (a) and before the 
120.25 	governing body of a political subdivision seeks voter approval to impose a local sales tax, 
120.26 	the governing body shall adopt a resolution indicating its approval of the tax. The resolution 
120.27 	must include:
120.28 	(1) the proposed tax rate;
120.29 	(2) a detailed description of no more than three projects to be funded with revenue from 
120.30 	the tax;
120.31 	(3) documentation of the regional significance of each project, including:
120.32 	(i) the share of the economic benefit to or use of each project by persons residing or 
120.33 	businesses located outside of the jurisdiction; and
121.1 	(ii) demonstration that the project meets the requirements of the applicable definitions 
121.2 	in subdivision 1;
121.3 	(4) the amount of local sales tax revenue that would be used for each project and the 
121.4 	estimated time needed to raise that amount of revenue; and
121.5 	(5) the total revenue that will be raised for all projects before the tax expires and the 
121.6 	estimated length of time that the tax will be in effect if all proposed projects are funded.
121.7 	(c) The jurisdiction seeking authority to impose a local sales tax by special law must 
121.8 	submit the resolution and the documentation required under paragraph (b) to the 
121.9 	commissioner pursuant to section 297A.9902.
121.10 		Subd. 5.Voter approval required. (a) Imposition of a local sales tax under this section 
121.11 	is subject to approval by voters of the political subdivision at a general or special election. 
121.12 	The election must be held within two years of the date the political subdivision receives 
121.13 	approval from the commissioner under section 297A.9902. A political subdivision may 
121.14 	choose to conduct the election at a general or special election held on the first Tuesday after 
121.15 	the first Monday in November. There must be a separate question approving the use of the 
121.16 	tax revenue for each project. A project that is not approved by the voters may not be funded 
121.17 	with the local sales tax revenue. For purposes of this section, "general election" and "special 
121.18 	election" have the meanings given in section 200.02, except that a general election or special 
121.19 	election held under this section must be held on the first Tuesday after the first Monday in 
121.20 	November.
121.21 	(b) Each ballot question presented to voters must include:
121.22 	(1) a description of each specified capital project, including acknowledgment of any 
121.23 	state mandate for a government service that necessitates the construction of the project, if 
121.24 	applicable;
121.25 	(2) acknowledgment that the political subdivision is seeking authorization from voters 
121.26 	to impose the sales tax;
121.27 	(3) the total cost of each capital project, inclusive of the amount required under 
121.28 	subdivision 6, paragraph (a), clause (3);
121.29 	(4) the start date of the project and maximum project cost that may be generated for a 
121.30 	period lasting no longer than 30 years;
121.31 	(5) the tax rate;
122.1 	(6) a statement that by voting "yes" the voter is voting for the tax at the rate specified 
122.2 	in clause (5) to:
122.3 	(i) impose a new local sales tax;
122.4 	(ii) increase a local sales tax; or
122.5 	(iii) extend a local sales tax that would otherwise expire; and
122.6 	(7) in combination with the statement required under clause (6), a statement that by 
122.7 	voting "no" the voter acknowledges that the project subject to approval in the question may 
122.8 	be funded by increased property taxes.
122.9 		Subd. 6.Administration; termination. (a) The proceeds of the tax must be dedicated 
122.10 	exclusively to payment of the construction and rehabilitation costs and associated bonding 
122.11 	costs related to the specified capital projects approved by the voters under subdivision 5, 
122.12 	paragraph (a). The political subdivision must not commingle revenue from a tax approved 
122.13 	by the voters under this section with revenue from a local sales tax authorized under section 
122.14 	297A.99 or any other law, ordinance, city charter, or other provision, including an extension 
122.15 	of or modification to the uses of a local sales tax for a different project.
122.16 	(b) The political subdivision imposing the tax must notify the commissioner at least 60 
122.17 	days before the date the political subdivision anticipates that revenues raised from the tax 
122.18 	are sufficient to fund the projects approved by the voters under subdivision 5, paragraph 
122.19 	(a). The notification applies to each authorization of a tax and each project approved by the 
122.20 	voters under subdivision 5, paragraph (a), regardless of whether the legislature has authorized 
122.21 	the tax notwithstanding the requirements of paragraph (c). The tax must terminate after the 
122.22 	revenues raised are sufficient to fund the projects approved by the voters under subdivision 
122.23 	5, paragraph (a). The political subdivision must notify the commissioner within 30 days of 
122.24 	the date that sufficient revenues have been raised to fund the projects approved by the voters 
122.25 	under subdivision 5, paragraph (a).
122.26 	(c) After a sales tax imposed by a political subdivision has expired or been terminated, 
122.27 	the political subdivision is prohibited from imposing a local sales tax for a period of one 
122.28 	year.
122.29 	(d) If a tax is terminated because sufficient revenues have been raised, any amount of 
122.30 	tax collected after sufficient revenues have been raised and before the quarterly termination 
122.31 	required under section 297A.99, subdivision 12, paragraph (a), that is greater than the 
122.32 	average quarterly revenues collected over the immediately preceding 12 calendar months, 
122.33 	must be retained by the commissioner for deposit in the general fund.
123.1 		Subd. 7.Regional sports complexes; regional community centers. To impose a local 
123.2 	sales tax to fund construction or remodeling of or improvements to a regional sports complex 
123.3 	or regional community center, a political subdivision must:
123.4 	(1) conduct an analysis of the surrounding region to demonstrate that there is no similar 
123.5 	regional sports complex or regional community center open to nonresidents at the same 
123.6 	cost as to residents;
123.7 	(2) obtain resolutions adopted by at least two adjacent counties, or adjacent statutory or 
123.8 	home rule charter cities or townships affirming there is a regional need for the regional 
123.9 	sports complex or regional community center. A county in which a statutory or home rule 
123.10 	charter city or a township is located and a statutory or home rule charter city or a township 
123.11 	located within a county qualifies as "adjacent" for purposes of this clause; or
123.12 	(3) develop and present a model for the sharing of local sales tax revenues with 
123.13 	surrounding counties, statutory or home rule charter cities, or townships for projects that 
123.14 	meet needs of the counties, statutory or home rule charter cities, or townships.
123.15 		Subd. 8.Criminal justice facilities. (a) To impose a local sales tax to fund construction 
123.16 	or remodeling of or improvements to a correctional facility, a political subdivision must 
123.17 	demonstrate the need for the facility by providing:
123.18 	(1) official documentation of the age of the facility; and
123.19 	(2)(i) official correspondence from the Department of Corrections that includes an 
123.20 	analysis of the facility and description of the improvements or updates needed; or
123.21 	(ii) if the facility is a joint project between two or more counties, the joint powers 
123.22 	agreement or other official documentation between at least one other county demonstrating 
123.23 	that the facility will serve public safety functions for the region.
123.24 	(b) To impose a local sales tax to fund construction or remodeling of or improvements 
123.25 	to a district court office, a political subdivision must demonstrate the need for the facility 
123.26 	by providing the age of the facility and a description of improvements needed.
123.27 	(c) To impose a local sales tax to fund construction or remodeling of or improvements 
123.28 	to a law enforcement center, a political subdivision must provide resolutions from 
123.29 	surrounding counties, statutory or home rule charter cities, or townships affirming that the 
123.30 	functions of the law enforcement center will meet the needs of the surrounding county, 
123.31 	statutory or home rule charter city, or township.
123.32 		Subd. 9.Convention centers; airports; parks and trails. (a) To impose a local sales 
123.33 	tax to finance construction or remodeling of or improvements to a convention center, a 
124.1 	political subdivision must demonstrate that the convention center meets the requirements 
124.2 	of subdivision 1, paragraph (c).
124.3 	(b) To impose a local sales tax to finance construction or remodeling of or improvements 
124.4 	to an airport, a political subdivision must demonstrate the regional necessity of the airport.
124.5 	(c) To impose a local sales tax to finance construction of or improvements to a park, a 
124.6 	political subdivision must demonstrate how the project meets the criteria described in 
124.7 	subdivision 1, paragraph (h).
124.8 	(d) To impose a local sales tax to finance construction of or improvements to a trail, a 
124.9 	political subdivision must demonstrate how the project meets the criteria described in 
124.10 	subdivision 1, paragraph (n).
124.11 		Subd. 10.Other provisions apply. (a) The provisions of section 297A.99, subdivisions 
124.12 	4 to 13, apply to taxes authorized under this subdivision.
124.13 	(b) The prevailing wage rate applies to all contracts for construction of specified capital 
124.14 	projects under this section that are located in a metropolitan county.
124.15 	(c) The total tax rate imposed by a political subdivision under this section and section 
124.16 	297A.99 must not exceed one percent. If a local sales tax is imposed by a county, the limit 
124.17 	under this paragraph includes any tax authorized under section 297A.993.
124.18 	(d) The maximum collection period for a tax imposed under this section is the earlier 
124.19 	of the amount of time necessary to collect the revenue equal to the cost of the specified 
124.20 	capital projects approved by the voters, including as associated bonding costs, or 30 years.
124.21 		Subd. 11.Bonds; authorization. (a) A political subdivision may issue bonds under 
124.22 	chapter 475 to finance all or a portion of the costs of a specified capital project. The aggregate 
124.23 	principal amount of bonds issued must not exceed the cost of a qualifying capital project 
124.24 	approved by the voters, plus associated bonding costs. The bonds may be paid from or 
124.25 	secured by any funds available to the political subdivision, including the tax authorized 
124.26 	under this section and approved by the voters. The issuance of bonds under this subdivision 
124.27 	is not subject to sections 275.60 and 275.61.
124.28 	(b) A separate election to approve the bonds under section 475.58 is not required.
124.29 		Subd. 12.Filing and imposition requirements. (a) A political subdivision that has 
124.30 	received approval to impose a tax from the commissioner under this section must file a 
124.31 	certificate of local approval with the secretary of state within 60 days after receiving voter 
124.32 	approval for the tax to be lawfully imposed. If the tax is approved by the voters, the political 
124.33 	subdivision must impose the tax within 15 months of receiving the voter approval. If the 
125.1 	tax is not imposed within 15 months, the authority to impose the tax under this section 
125.2 	expires.
125.3 	(b) If, after receiving voter approval, a political subdivision cancels a project approved 
125.4 	by the voters, the political subdivision must notify the commissioner. The commissioner 
125.5 	must proportionately decrease the maximum amount of tax revenue the political subdivision 
125.6 	may collect and must adjust the termination of the tax accordingly. If the political subdivision 
125.7 	has already collected revenue for the canceled project, the political subdivision must return 
125.8 	the funds to the commissioner for deposit to the general fund. The political subdivision 
125.9 	must use any other source of revenue available to pay any outstanding debt on the bonds 
125.10 	that were issued for the canceled project.

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

125.12 	Sec. 4. [297A.9902] LOCAL SALES TAXES; OVERSIGHT.
125.13 	(a) A political subdivision seeking to impose a local sales tax under the provisions of 
125.14 	section 297A.9901 must file a copy of the resolution and documentation required under 
125.15 	section 297A.9901, subdivision 4, paragraph (b), with the commissioner by October 31 of 
125.16 	the year before the political subdivision seeks voter approval of the tax.
125.17 	(b) The commissioner must verify whether a project included in the submission under 
125.18 	paragraph (a) meets the requirements of section 297A.9901, subdivisions 1 to 9, and 
125.19 	subdivision 10, paragraph (c). By January 10 of the year the political subdivision seeks 
125.20 	voter approval of a local sales tax authorized under section 297A.9901, the commissioner 
125.21 	must notify the political subdivision of the commissioner's determination.

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

125.23 	Sec. 5. REPEALER.
 125.24 	Minnesota Statutes 2023 Supplement, section 297A.99, subdivision 3a, is repealed.

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

125.26 	ARTICLE 7
125.27 	PUBLIC FINANCE

125.28 	Section 1. Minnesota Statutes 2022, section 123B.71, subdivision 8, is amended to read:
125.29 		Subd. 8.Review and comment. A school district, a special education cooperative, or 
125.30 	a cooperative unit of government, as defined in section 123A.24, subdivision 2, must not 
126.1 	initiate enter into an installment contract for purchase or a lease agreement, hold a referendum 
126.2 	for bonds, nor solicit bids for new construction, expansion, or remodeling of an educational 
126.3 	facility that requires an expenditure in excess of $500,000 per school site if it has a capital 
126.4 	loan outstanding, or $2,000,000 per school site if it does not have a capital loan outstanding, 
126.5 	prior to review and comment by the commissioner. A facility addition, maintenance project, 
126.6 	or remodeling project New construction, expansion, or remodeling of an educational facility
126.7 	funded only with general education revenue, lease levy proceeds from an additional capital 
126.8 	expenditure levy under section 126C.40, subdivision 1, capital facilities bond proceeds, or 
126.9 	long-term facilities maintenance revenue is exempt from this provision. A capital project 
126.10 	under section 123B.63 addressing only technology is exempt from this provision if the 
126.11 	district submits a school board resolution stating that funds approved by the voters will be 
126.12 	used only as authorized in section 126C.10, subdivision 14. A school board shall not separate 
126.13 	portions of a single project into components to avoid the requirements of this subdivision.

126.14 	Sec. 2. Minnesota Statutes 2023 Supplement, section 123B.71, subdivision 12, is amended 
126.15 	to read:
126.16 		Subd. 12.Publication. (a) At least 48 days but not more than 60 88 days before a 
126.17 	referendum for bonds under chapter 475 or solicitation of bids for a project that has received 
126.18 	a positive or unfavorable review and comment under section 123B.70, the school board 
126.19 	shall publish a summary of the commissioner's review and comment of that project in the 
126.20 	legal newspaper of the district. The school board must hold a public meeting to discuss the 
126.21 	commissioner's review and comment before the such a referendum for bonds. Supplementary 
126.22 	information shall be available to the public. Where no such referendum for bonds is required, 
126.23 	the publication and public meeting requirements of this subdivision shall not apply.
126.24 	(b) The publication requirement in paragraph (a) does not apply to alternative facilities 
126.25 	projects approved under section 123B.595.

126.26 	Sec. 3. Minnesota Statutes 2023 Supplement, section 126C.40, subdivision 6, is amended 
126.27 	to read:
126.28 		Subd. 6.Lease purchase; installment buys. (a) Upon application to, and approval by, 
126.29 	the commissioner in accordance with the procedures and limits in subdivision 1, paragraphs 
126.30 	(a) and (b), a district, as defined in this subdivision, may:
126.31 	(1) purchase real or personal property under an installment contract or may lease real 
126.32 	or personal property with an option to purchase under a lease purchase agreement, by which 
127.1 	installment contract or lease purchase agreement title is kept by the seller or vendor or 
127.2 	assigned to a third party as security for the purchase price, including interest, if any; and
127.3 	(2) annually levy the amounts necessary to pay the district's obligations under the 
127.4 	installment contract or lease purchase agreement.
127.5 	(b) The obligation created by the installment contract or the lease purchase agreement 
127.6 	must not be included in the calculation of net debt for purposes of section 475.53, and does 
127.7 	not constitute debt under other law. An election is not required in connection with the 
127.8 	execution of the installment contract or the lease purchase agreement.
127.9 	(c) The proceeds of the levy authorized by this subdivision must not be used to acquire 
127.10 	a facility to be primarily used for athletic or school administration purposes.
127.11 	(d) For the purposes of this subdivision, "district" means:
127.12 	(1) Special School District No. 1, Minneapolis, Independent School District No. 625, 
127.13 	St. Paul, Independent School District No. 709, Duluth, or Independent School District No. 
127.14 	535, Rochester, if the district's desegregation plan has been determined by the commissioner 
127.15 	to be in compliance with Department of Education rules relating to equality of educational 
127.16 	opportunity and where the acquisition of property under this subdivision is determined by 
127.17 	the commissioner to contribute to the implementation of the desegregation plan; or
127.18 	(2) other districts eligible for revenue under section 124D.862 if the facility acquired 
127.19 	under this subdivision is to be primarily used for a joint program for interdistrict 
127.20 	desegregation and the commissioner determines that the joint programs are being undertaken 
127.21 	to implement the districts' desegregation plan.
127.22 	(e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease 
127.23 	or rent a district-owned building to itself does not apply to levies otherwise authorized by 
127.24 	this subdivision.
127.25 	(f) For the purposes of this subdivision, any references in subdivision 1 to building or 
127.26 	land shall include personal property.
127.27 	(g) Projects funded under this subdivision that require an expenditure in excess of 
127.28 	$500,000 per school site if the school district has a capital loan outstanding, or $2,000,000 
127.29 	per school site if the school district does not have a capital loan outstanding, are subject to 
127.30 	review and comment under section 123B.71, subdivision 8, in the same manner as other 
127.31 	school construction projects.

128.1 	Sec. 4. Minnesota Statutes 2022, section 446A.086, subdivision 1, is amended to read:
128.2 		Subdivision 1.Definitions. (a) As used in this section, the following terms have the 
128.3 	meanings given.
128.4 	(b) "Authority" means the Minnesota Public Facilities Authority.
128.5 	(c) "Commissioner" means the commissioner of management and budget.
128.6 	(d) "Debt obligation" means:
128.7 	(1) a general obligation bond or note issued by a county, a bond or note to which the 
128.8 	general obligation of a county is pledged under section 469.034, subdivision 2, or a bond 
128.9 	or note payable from a county lease obligation under section 641.24, to provide funds for 
128.10 	the construction of:
128.11 	(i) jails;
128.12 	(ii) correctional facilities;
128.13 	(iii) law enforcement facilities;
128.14 	(iv) a court house or justice center, if connected to a jail, correctional facility, or other 
128.15 	law enforcement facility;
128.16 	(iv) (v) social services and human services facilities;
128.17 	(v) (vi) solid waste facilities; or
128.18 	(vi) (vii) qualified housing development projects as defined in section 469.034, 
128.19 	subdivision 2; or
128.20 	(2) a general obligation bond or note issued by a governmental unit to provide funds for 
128.21 	the construction, improvement, or rehabilitation of:
128.22 	(i) wastewater facilities;
128.23 	(ii) drinking water facilities;
128.24 	(iii) stormwater facilities; or
128.25 	(iv) any publicly owned building or infrastructure improvement that has received partial 
128.26 	funding from grants awarded by the commissioner of employment and economic development 
128.27 	related to redevelopment, contaminated site cleanup, bioscience, small cities development 
128.28 	programs, and rural business infrastructure programs, for which bonds are issued by the 
128.29 	authority under section 446A.087.
128.30 	(e) "Governmental unit" means a county or a statutory or home rule charter city.

129.1 	Sec. 5. Minnesota Statutes 2022, section 469.104, is amended to read:
129.2 	469.104 SECTIONS THAT APPLY IF FEDERAL LIMIT APPLIES.
129.3 	Sections 474A.01 to 474A.21 apply to obligations issued under sections 469.090 to 
129.4 	469.108 that are limited required by federal tax law as defined in section 474A.02, 
129.5 	subdivision 8, to obtain an allocation of volume cap.

129.6 	Sec. 6. Minnesota Statutes 2022, section 473.757, subdivision 10, is amended to read:
129.7 		Subd. 10.Sales and use tax. (a) Notwithstanding section 477A.016, or other law, the 
129.8 	governing body of the county may by ordinance, impose a sales and use tax at the rate of 
129.9 	0.15 percent for the purposes listed in this section. The taxes authorized under this section 
129.10 	and the manner in which they are imposed are exempt from the rules of section 297A.99, 
129.11 	subdivisions 2 and 3. The provisions of section 297A.99, except for subdivisions 2 and 3, 
129.12 	apply to the imposition, administration, collection, and enforcement of this tax.
129.13 	(b) The tax imposed under this section is not included in determining if the total tax on 
129.14 	lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986, 
129.15 	chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article 
129.16 	12, section 87, or in determining a tax that may be imposed under any other limitations.
129.17 	(c) The requirements of sections 297A.9901 and 297A.9902 do not apply to taxes 
129.18 	authorized under this chapter.

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

129.20 	Sec. 7. Minnesota Statutes 2022, section 474A.091, subdivision 2, is amended to read:
129.21 		Subd. 2.Application for residential rental projects. (a) Issuers may apply for an 
129.22 	allocation for residential rental bonds under this section by submitting to the department an 
129.23 	application on forms provided by the department accompanied by:
129.24 	(1) a preliminary resolution;
129.25 	(2) a statement of bond counsel that the proposed issue of obligations requires an 
129.26 	allocation under this chapter and the Internal Revenue Code;
129.27 	(3) an application deposit in the amount of two percent of the requested allocation;
129.28 	(4) a sworn statement from the applicant identifying the project as a preservation project, 
129.29 	30 percent AMI residential rental project, 50 percent AMI residential rental project, 100 
129.30 	percent LIHTC project, 20 percent LIHTC project, or any other residential rental project; 
129.31 	and
130.1 	(5) a certification from the applicant or its accountant stating that the requested allocation 
130.2 	does not exceed the aggregate bond limitation.
130.3 	The issuer must pay the application deposit to the Department of Management and Budget. 
130.4 	An entitlement issuer may not apply for an allocation for residential rental project bonds 
130.5 	under this section unless it has either permanently issued bonds equal to the amount of its 
130.6 	entitlement allocation for the current year plus any amount carried forward from previous 
130.7 	years or returned for reallocation all of its unused entitlement allocation. For purposes of 
130.8 	this subdivision, its entitlement allocation includes an amount obtained under section 
130.9 	474A.04, subdivision 6.
130.10 	(b) An issuer that receives an allocation under this subdivision must permanently issue 
130.11 	obligations equal to all or a portion of the allocation received on or before the earlier of: 
130.12 	(1) 180 days of the allocation; or (2) the last business day of December. If an issuer that 
130.13 	receives an allocation under this subdivision does not permanently issue obligations equal 
130.14 	to all or a portion of the allocation received within the time period provided in this paragraph 
130.15 	or returns the allocation to the commissioner, the amount of the allocation is canceled and 
130.16 	returned for reallocation through the unified pool.
130.17 	(c) The Minnesota Housing Finance Agency may apply for and receive an allocation 
130.18 	under this section without submitting an application deposit.

130.19 	Sec. 8. Minnesota Statutes 2022, section 474A.091, subdivision 2a, is amended to read:
130.20 		Subd. 2a.Application for all other types of qualified bonds. (a) Issuers may apply 
130.21 	for an allocation for all types of qualified bonds other than residential rental bonds under 
130.22 	this section by submitting to the department an application on forms provided by the 
130.23 	department accompanied by:
130.24 	(1) a preliminary resolution;
130.25 	(2) a statement of bond counsel that the proposed issue of obligations requires an 
130.26 	allocation under this chapter and the Internal Revenue Code;
130.27 	(3) the type of qualified bonds to be issued;
130.28 	(4) an application deposit in the amount of two percent of the requested allocation; and
130.29 	(5) a public purpose scoring worksheet for manufacturing and enterprise zone 
130.30 	applications.
130.31 	The issuer must pay the application deposit to the Department of Management and Budget. 
130.32 	An entitlement issuer may not apply for an allocation for public facility bonds or mortgage 
131.1 	bonds under this section unless it has either permanently issued bonds equal to the amount 
131.2 	of its entitlement allocation for the current year plus any amount carried forward from 
131.3 	previous years or returned for reallocation all of its unused entitlement allocation. For 
131.4 	purposes of this subdivision, an entitlement allocation includes an amount obtained under 
131.5 	section 474A.04, subdivision 6.
131.6 	(b) An issuer that receives an allocation under this subdivision must permanently issue 
131.7 	obligations equal to all or a portion of the allocation received on or before the earlier of: 
131.8 	(1) 120 days of the allocation; or (2) the last business day of December. If an issuer that 
131.9 	receives an allocation under this subdivision does not permanently issue obligations equal 
131.10 	to all or a portion of the allocation received within the time period provided in this paragraph 
131.11 	or returns the allocation to the commissioner, the amount of the allocation is canceled and 
131.12 	returned for reallocation through the unified pool.
131.13 	(c) Notwithstanding the restrictions imposed on entitlement issuers under this subdivision, 
131.14 	the Minnesota Housing Finance Agency may not receive an allocation for mortgage bonds 
131.15 	under this section prior to the first Monday in October, but may be awarded allocations for 
131.16 	mortgage bonds from the unified pool on or after the first Monday in October. The Minnesota 
131.17 	Housing Finance Agency, the Minnesota Office of Higher Education, and the Minnesota 
131.18 	Rural Finance Authority may apply for and receive an allocation under this section without 
131.19 	submitting an application deposit.

131.20 	ARTICLE 8
131.21 	MISCELLANEOUS

131.22 	Section 1. Minnesota Statutes 2022, section 270C.21, is amended to read:
131.23 	270C.21 TAXPAYER ASSISTANCE GRANTS; TAX CREDIT OUTREACH 
131.24 	GRANTS.
131.25 		Subdivision 1.Taxpayer assistance. When the commissioner awards grants to eligible 
131.26 	organizations to coordinate, facilitate, encourage, and aid in the provision of taxpayer 
131.27 	assistance services under this section, the commissioner must provide public notice of the 
131.28 	grants in a timely manner so that the grant process is completed and grants are awarded by 
131.29 	October 1, in order for recipient eligible organizations to adequately plan expenditures for 
131.30 	the filing season. At the time the commissioner provides public notice, the commissioner 
131.31 	must also notify eligible organizations that received grants in the previous biennium. Amounts 
131.32 	appropriated for grants under this section are not subject to retention of administrative costs 
131.33 	under section 16B.98, subdivision 14.
132.1 		Subd. 2.Eligible organization Definitions. "Eligible organization" means an organization 
132.2 	that meets the definition of eligible organization provided in section 7526A(e)(2)(B) of the 
132.3 	Internal Revenue Code.
132.4 	(a) For the purposes of this section, the following terms have the meanings given.
132.5 	(b) "Eligible credit" means a credit, refund, or other tax preference targeting low-income 
132.6 	taxpayers, including but not limited to the credits under sections 290.0661, 290.0671, 
132.7 	290.0674, and 290.0693, and chapter 290A.
132.8 	(c) "Tax outreach organization" means a nonprofit organization or federally recognized 
132.9 	Indian Tribe with experience serving demographic groups or geographic regions that have 
132.10 	historically had low rates of participation in eligible credits.
132.11 	(d) "Taxpayer assistance services" means accounting and tax preparation services 
132.12 	provided by volunteers to low-income, elderly, and disadvantaged Minnesota residents to 
132.13 	help them file federal and state income tax returns and Minnesota property tax refund claims 
132.14 	and to provide personal representation before the Department of Revenue and Internal 
132.15 	Revenue Service.
132.16 	(e) "Volunteer taxpayer assistance organization" means an eligible organization qualifying 
132.17 	under section 7526A(e)(2)(B) of the Internal Revenue Code of 1986.
132.18 		Subd. 3.Taxpayer assistance grants. The commissioner must make grants to one or 
132.19 	more volunteer taxpayer assistance organizations to coordinate, facilitate, encourage, and 
132.20 	aid in the provision of taxpayer assistance services.
132.21 		Subd. 4.Tax credit outreach grants. The commissioner must make one or more grants 
132.22 	to tax outreach organizations and volunteer assistance organizations. Grants provided under 
132.23 	this subdivision must be used to:
132.24 	(1) publicize and promote the availability of eligible credits to taxpayers likely to be 
132.25 	eligible for those credits; or
132.26 	(2) provide taxpayer assistance services.

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

132.28 	Sec. 2. Minnesota Statutes 2022, section 270C.33, is amended by adding a subdivision to 
132.29 	read:
132.30 		Subd. 4a.Limitations; sales, corporate, and income taxes. (a) The provisions of this 
132.31 	subdivision are a limitation on the assessment authority of the commissioner under this 
132.32 	section.
133.1 	(b) The commissioner must not assess additional tax due under chapter 290 or 297A if 
133.2 	each of the following requirements are met:
133.3 	(1) the taxpayer was given erroneous advice in writing by an employee of the department 
133.4 	acting in an official capacity, if the advice:
133.5 	(i) was reasonably relied on and was included in a tax order or in response to a specific 
133.6 	written request by the taxpayer; and
133.7 	(ii) was not the result of failure by the taxpayer to provide adequate or accurate 
133.8 	information; and
133.9 	(2) effective for a taxable period beginning after the period covered by clause (1), neither 
133.10 	the statute or administrative rule on which the reporting or other practice is based has been 
133.11 	materially changed, its interpretation has not been changed by a court decision, or there has 
133.12 	been a federal adjustment as defined under section 289A.381, subdivision 7, and the 
133.13 	commissioner has not issued a revenue notice or directly notified the taxpayer, in writing, 
133.14 	of the commissioner's position as to the proper reporting or other treatment of the relevant 
133.15 	income, transaction, deduction, credit, or other item of tax preference.
133.16 	(c) For an audit of a prior taxable period by the commissioner, paragraph (b), clause (1), 
133.17 	applies only to the issues within the scope of and specifically addressed by the audit where 
133.18 	the written order given to the taxpayer includes erroneous advice on those issues. For a 
133.19 	written order that includes data sampling, paragraph (b), clause (1), applies only to the 
133.20 	reviewed sampled population.

133.21 	EFFECTIVE DATE. This section is effective for erroneous advice given to the taxpayer 
133.22 	in writing after June 30, 2024.

133.23 	Sec. 3. Minnesota Statutes 2023 Supplement, section 297H.13, subdivision 2, is amended 
133.24 	to read:
133.25 		Subd. 2.Allocation of revenues. (a) Of the amounts remitted under this chapter, 70 
133.26 	percent must be credited to the environmental fund established in section 16A.531, 
133.27 	subdivision 1.
133.28 	(b) In addition to the amounts credited to the environmental fund in paragraph (a), in 
133.29 	fiscal year 2024 and later, three percent of the amounts remitted under this chapter shall be 
133.30 	deposited into the resource management account in the environmental fund. For fiscal year 
133.31 	2025 only, an additional $3,252,000 must be deposited in the resource management account 
133.32 	in the environmental fund.
134.1 	(c) The remainder must be deposited into the general fund.
134.2 	(d) Beginning in fiscal year 2024 and annually thereafter, The money deposited in the 
134.3 	resource management account in the environmental fund under paragraph (b) is appropriated 
134.4 	to the commissioner of the Pollution Control Agency for distribution to counties under 
134.5 	section 115A.557, subdivision 2, paragraph (a), clauses (1) to (7) and (9) to (11). Amounts 
134.6 	appropriated for distribution under this section are not subject to retention of administrative 
134.7 	costs under section 16B.98, subdivision 14.

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

134.9 	Sec. 4. HENNEPIN COUNTY BASEBALL STADIUM TAX; REVIEW AND 
134.10 	EVALUATION.
 134.11 	(a) The commissioner of revenue must review and evaluate the provisions of Minnesota 
134.12 	Statutes, sections 473.75 to 473.763, to determine whether the tax authorized under Minnesota 
134.13 	Statutes, section 473.757, subdivision 10, should be extended to fund purposes other than 
134.14 	those included in Minnesota Statutes, section 473.757, subdivision 11.
134.15 	(b) The review and evaluation must include possible distribution of revenues to fund 
134.16 	improvements to hospitals located in Hennepin County and the need for continued operating 
134.17 	costs to and improvements to public infrastructure of the ballpark, as defined under Minnesota 
134.18 	Statutes, section 473.751, subdivision 3.
134.19 	(c) In performing the requirements of paragraphs (a) and (b), the commissioner of revenue 
134.20 	must consult with:
134.21 	(1) the Hennepin County Board of Commissioners;
134.22 	(2) members of the senate and house of representatives whose districts include areas 
134.23 	both within and outside Hennepin County;
134.24 	(3) the Minnesota Ballpark Authority, as defined under Minnesota Statutes, section 
134.25 	473.751, subdivision 2;
134.26 	(4) the team, as defined under Minnesota Statutes, section 473.751, subdivision 9; and
134.27 	(5) members of the boards of directors of hospitals located within Hennepin County.

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

135.1 	Sec. 5. APPROPRIATION; CITY OF SOUTH ST. PAUL; GRANT.
 135.2 	(a) $250,000 in fiscal year 2024 is appropriated from the general fund to the commissioner 
135.3 	of revenue for a grant to the city of South St. Paul. This is a onetime appropriation. The 
135.4 	grant must be paid by June 30, 2024. The grant under this section is not subject to retention 
135.5 	of administrative costs under Minnesota Statutes, section 16B.98, subdivision 14.
135.6 	(b) The grant under this section must be used by the city of South St. Paul to pay for 
135.7 	planning and development costs within the city.

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

135.9 	Sec. 6. APPROPRIATION; TAX CREDIT OUTREACH GRANTS; TAXPAYER 
135.10 	ASSISTANCE GRANTS.
 135.11 	(a) $1,000,000 in fiscal year 2025 is appropriated from the general fund to the 
135.12 	commissioner of revenue for tax credit outreach grants under Minnesota Statutes, section 
135.13 	270C.21, subdivision 4. This appropriation is in addition to the amount appropriated in 
135.14 	Laws 2023, chapter 64, article 7, section 30.
135.15 	(b) The base for the $1,000,000 appropriation in paragraph (a) is $1,044,000 in fiscal 
135.16 	year 2026 and $1,045,000 in fiscal year 2027.
135.17 	(c) $750,000 in fiscal year 2025 is appropriated from the general fund to the commissioner 
135.18 	of revenue for taxpayer assistance grants under Minnesota Statutes, section 270C.21, 
135.19 	subdivision 3. This appropriation is in addition to the amount appropriated for taxpayer 
135.20 	assistance in Laws 2023, chapter 62, article 1, section 14, subdivision 2.

135.21 	ARTICLE 9
135.22 	DEPARTMENT OF REVENUE; INDIVIDUAL INCOME AND CORPORATE 
135.23 	FRANCHISE TAXES

135.24 	Section 1. Minnesota Statutes 2022, section 116U.27, subdivision 2, is amended to read:
135.25 		Subd. 2.Credit allowed. A taxpayer is eligible for a credit up to 25 percent of eligible 
135.26 	production costs paid in a taxable year any consecutive 12-month period as described in 
135.27 	subdivision 1, paragraph (h). A taxpayer may only claim a credit if the taxpayer was issued 
135.28 	a credit certificate under subdivision 4.

135.29 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
135.30 	after December 31, 2022.

136.1 	Sec. 2. Minnesota Statutes 2023 Supplement, section 290.01, subdivision 19, is amended 
136.2 	to read:
136.3 		Subd. 19.Net income. (a) For a trust or estate taxable under section 290.03, and a 
136.4 	corporation taxable under section 290.02, the term "net income" means the federal taxable 
136.5 	income, as defined in section 63 of the Internal Revenue Code of 1986, as amended through 
136.6 	the date named in this subdivision, incorporating the federal effective dates of changes to 
136.7 	the Internal Revenue Code and any elections made by the taxpayer in accordance with the 
136.8 	Internal Revenue Code in determining federal taxable income for federal income tax 
136.9 	purposes, and with the modifications provided in sections 290.0131 to 290.0136.
136.10 	(b) For an individual, the term "net income" means federal adjusted gross income with 
136.11 	the modifications provided in sections 290.0131, 290.0132, and 290.0135 to 290.0137.
136.12 	(c) In the case of a regulated investment company or a fund thereof, as defined in section 
136.13 	851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment 
136.14 	company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, 
136.15 	except that:
136.16 	(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal 
136.17 	Revenue Code does not apply;
136.18 	(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue 
136.19 	Code must be applied by allowing a deduction for capital gain dividends and exempt-interest 
136.20 	dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code; 
136.21 	and
136.22 	(3) the deduction for dividends paid must also be applied in the amount of any 
136.23 	undistributed capital gains which the regulated investment company elects to have treated 
136.24 	as provided in section 852(b)(3)(D) of the Internal Revenue Code.
136.25 	(d) The net income of a real estate investment trust as defined and limited by section 
136.26 	856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust 
136.27 	taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
136.28 	(e) The net income of a designated settlement fund as defined in section 468B(d) of the 
136.29 	Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal 
136.30 	Revenue Code.
136.31 	(f) The Internal Revenue Code of 1986, as amended through May 1, 2023, applies for 
136.32 	taxable years beginning after December 31, 1996.
137.1 	(g) Except as otherwise provided, references to the Internal Revenue Code in this 
137.2 	subdivision and sections 290.0131 to 290.0136 mean the code in effect for purposes of 
137.3 	determining net income for the applicable year.
137.4 	(h) In the case of a partnership electing to file a composite return under section 289A.08, 
137.5 	subdivision 7, "net income" means the partner's share of federal adjusted gross income from 
137.6 	the partnership modified by the additions provided in section 290.0131, subdivisions 8 to 
137.7 	10, 16, and 17, and the subtractions provided in: (1) section 290.0132, subdivisions 9, 27, 
137.8 	and 28, and 31, to the extent the amount is assignable or allocable to Minnesota under section 
137.9 	290.17; and (2) section 290.0132, subdivision 14. The subtraction allowed under section 
137.10 	290.0132, subdivision 9, is only allowed on the composite tax computation to the extent 
137.11 	the electing partner would have been allowed the subtraction.
137.12 	(i) In the case of a qualifying entity electing to pay the pass-through entity tax under 
137.13 	section 289A.08, subdivision 7a, "net income" means the qualifying owner's share of federal 
137.14 	adjusted gross income from the qualifying entity modified by the additions provided in 
137.15 	section 290.0131, subdivisions 5, 8 to 10, 16, and 17, and the subtractions provided in: (1) 
137.16 	section 290.0132, subdivisions 3, 9, 27, and 28, and 31, to the extent the amount is assignable 
137.17 	or allocable to Minnesota under section 290.17; and (2) section 290.0132, subdivision 14. 
137.18 	The subtraction allowed under section 290.0132, subdivision 9, is only allowed on the 
137.19 	pass-through entity tax computation to the extent the qualifying owners would have been 
137.20 	allowed the subtraction. The income of both a resident and nonresident qualifying owner 
137.21 	is allocated and assigned to this state as provided for nonresident partners and shareholders 
137.22 	under sections 290.17, 290.191, and 290.20.

137.23 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
137.24 	after December 31, 2022.

137.25 	Sec. 3. Minnesota Statutes 2023 Supplement, section 290.0132, subdivision 26, is amended 
137.26 	to read:
137.27 		Subd. 26.Social Security benefits. (a) A taxpayer is allowed a subtraction equal to the 
137.28 	greater of the simplified subtraction allowed under paragraph (b) or the alternate subtraction 
137.29 	determined under paragraph (e).
137.30 	(b) A taxpayer's simplified subtraction equals the amount of taxable social security 
137.31 	benefits, as reduced under paragraphs (c) and (d).
137.32 	(c) For a taxpayer other than a married taxpayer filing a separate return with adjusted 
137.33 	gross income above the phaseout threshold, the simplified subtraction is reduced by ten 
138.1 	percent for each $4,000 of adjusted gross income, or fraction thereof, in excess of the 
138.2 	phaseout threshold. The phaseout threshold equals:
138.3 	(1) $100,000 for a married taxpayer filing a joint return or surviving spouse;
138.4 	(2) $78,000 for a single or head of household taxpayer; and
138.5 	(3) for a married taxpayer filing a separate return, half the amount for a married taxpayer 
138.6 	filing a joint return.
138.7 	(d) For a married taxpayer filing a separate return, the simplified subtraction is reduced 
138.8 	by ten percent for each $2,000 of adjusted gross income, or fraction thereof, in excess of 
138.9 	the phaseout threshold.
138.10 	(e) A taxpayer's alternate subtraction equals the lesser of taxable Social Security benefits 
138.11 	or a maximum subtraction subject to the limits under paragraphs (f), (g), and (h).
138.12 	(f) For married taxpayers filing a joint return and surviving spouses, the maximum 
138.13 	subtraction under paragraph (c) (e) equals $5,840. The maximum subtraction is reduced by 
138.14 	20 percent of provisional income over $88,630. In no case is the subtraction less than zero.
138.15 	(g) For single or head-of-household taxpayers, the maximum subtraction under paragraph 
138.16 	(c) (e) equals $4,560. The maximum subtraction is reduced by 20 percent of provisional 
138.17 	income over $69,250. In no case is the subtraction less than zero.
138.18 	(h) For married taxpayers filing separate returns, the maximum subtraction under 
138.19 	paragraph (c) (e) equals one-half the maximum subtraction for joint returns under paragraph 
138.20 	(f). The maximum subtraction is reduced by 20 percent of provisional income over one-half 
138.21 	the threshold amount specified in paragraph (d). In no case is the subtraction less than zero.
138.22 	(i) For purposes of this subdivision, "provisional income" means modified adjusted gross 
138.23 	income as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of the 
138.24 	taxable Social Security benefits received during the taxable year, and "Social Security 
138.25 	benefits" has the meaning given in section 86(d)(1) of the Internal Revenue Code.
138.26 	(j) The commissioner shall adjust the phaseout threshold amounts in paragraphs (c) and 
138.27 	(d), clauses (1) and (2), as provided in section 270C.22. The statutory year is taxable year 
138.28 	2023. The maximum subtraction and threshold amounts as adjusted must be rounded to the 
138.29 	nearest $10 amount. If the amount ends in $5, the amount is rounded up to the nearest $10 
138.30 	amount.

138.31 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
138.32 	after December 31, 2022.

139.1 	Sec. 4. Minnesota Statutes 2023 Supplement, section 290.0132, subdivision 34, is amended 
139.2 	to read:
139.3 		Subd. 34.Qualified retirement benefits. (a) The amount of qualified public pension 
139.4 	income is a subtraction. The subtraction in this section is limited to:
139.5 	(1) $25,000 for a married taxpayer filing a joint return or surviving spouse; or
139.6 	(2) $12,500 for all other filers.
139.7 	(b) For a taxpayer with adjusted gross income above the phaseout threshold, the 
139.8 	subtraction is reduced by ten percent for each $2,000 of adjusted gross income, or fraction 
139.9 	thereof, in excess of the threshold. The phaseout threshold equals:
139.10 	(1) $100,000 for a married taxpayer filing a joint return or surviving spouse;
139.11 	(2) $78,000 for a single or head of household taxpayer; or
139.12 	(3) for a married taxpayer filing a separate return, half the amount for a married taxpayer 
139.13 	filing a joint return.
139.14 	(c) For the purposes of this section, "qualified public pension income" means any amount 
139.15 	received:
139.16 	(1) by a former basic member or the survivor of a former basic member, as an annuity 
139.17 	or survivor benefit, from a pension plan governed by chapter 353, 353E, 354, or 354A, 
139.18 	provided that the annuity or benefit is based on service for which the member or survivor 
139.19 	is not also receiving did not earn Social Security benefits;
139.20 	(2) as an annuity or survivor benefit from the legislators plan under chapter 3A, the State 
139.21 	Patrol retirement plan under chapter 352B, or the public employees police and fire plan 
139.22 	under sections 353.63 to 353.666, provided that the annuity or benefit is based on service 
139.23 	for which the member or survivor is not also receiving did not earn Social Security benefits;
139.24 	(3) from any retirement system administered by the federal government that is based on 
139.25 	service for which the recipient or the recipient's survivor is not also receiving did not earn
139.26 	Social Security benefits; or
139.27 	(4) from a public retirement system of or created by another state or any of its political 
139.28 	subdivisions, or the District of Columbia, if the income tax laws of the other state or district 
139.29 	permit a similar deduction or exemption or a reciprocal deduction or exemption of a 
139.30 	retirement or pension benefit received from a public retirement system of or created by this 
139.31 	state or any political subdivision of this state.
140.1 	(d) The commissioner must annually adjust the subtraction limits in paragraph (a) and 
140.2 	the phaseout thresholds in paragraph (b), as provided in section 270C.22. The statutory year 
140.3 	is taxable year 2023.

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

140.5 	Sec. 5. Minnesota Statutes 2023 Supplement, section 290.0134, subdivision 20, is amended 
140.6 	to read:
140.7 		Subd. 20.Delayed business interest. (a) For each taxable year an addition is required 
140.8 	under section 290.0131, subdivision 19 290.0133, subdivision 15, the amount of the addition, 
140.9 	less the sum of all amounts subtracted under this paragraph in all prior taxable years, that 
140.10 	does not exceed the limitation on business interest in section 163(j) of the Internal Revenue 
140.11 	Code of 1986, as amended through December 15, 2022, notwithstanding the special rule in 
140.12 	section 163(j)(10) of the Internal Revenue Code, is a subtraction. Any excess is a delayed 
140.13 	business interest carryforward, the entire amount of which must be carried to the earliest 
140.14 	taxable year. No subtraction is allowed under this paragraph for taxable years beginning 
140.15 	after December 31, 2022.
140.16 	(b) For each of the five taxable years beginning after December 31, 2022, there is allowed 
140.17 	a subtraction equal to one-fifth of the sum of all carryforward amounts that remain after the 
140.18 	expiration of paragraph (a).
140.19 	(c) Entities that are part of a combined reporting group under the unitary rules of section 
140.20 	290.17, subdivision 4, must compute deductions and additions as required under section 
140.21 	290.34, subdivision 5.

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

140.24 	Sec. 6. Minnesota Statutes 2023 Supplement, section 290.0693, subdivision 1, is amended 
140.25 	to read:
140.26 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
140.27 	the meanings given.
140.28 	(b) "Dependent" means any individual who is considered a dependent under sections 
140.29 	151 and 152 of the Internal Revenue Code and was claimed by the taxpayer as a dependent.
140.30 	(c) "Disability" has the meaning given in section 290A.03, subdivision 10.
141.1 	(d) "Exemption amount" means the exemption amount under section 290.0121, 
141.2 	subdivision 1, paragraph (b).
141.3 	(e) "Gross rent" means rent paid for the right of occupancy, at arm's length, of a 
141.4 	homestead, exclusive of charges for any medical services furnished by the landlord as a 
141.5 	part of the rental agreement, whether expressly set out in the rental agreement or not. The 
141.6 	gross rent of a resident of a nursing home or intermediate care facility is $600 per month. 
141.7 	The gross rent of a resident of an adult foster care home is $930 per month. The commissioner 
141.8 	shall annually adjust the amounts in this paragraph as provided in section 270C.22. The 
141.9 	statutory year is 2023. If the landlord and tenant have not dealt with each other at arm's 
141.10 	length and the commissioner determines that the gross rent charged was excessive, the 
141.11 	commissioner may adjust the gross rent to a reasonable amount for purposes of this section.
141.12 	(f) "Homestead" has the meaning given in section 290A.03, subdivision 6.
141.13 	(g) "Household" has the meaning given in section 290A.03, subdivision 4.
141.14 	(h) "Household income" means all income received by all persons of a household in a 
141.15 	taxable year while members of the household, other than income of a dependent.
141.16 	(i) "Income" means adjusted gross income, minus:
141.17 	(1) for the taxpayer's first dependent, the exemption amount multiplied by 1.4;
141.18 	(2) for the taxpayer's second dependent, the exemption amount multiplied by 1.3;
141.19 	(3) for the taxpayer's third dependent, the exemption amount multiplied by 1.2;
141.20 	(4) for the taxpayer's fourth dependent, the exemption amount multiplied by 1.1;
141.21 	(5) for the taxpayer's fifth dependent, the exemption amount; and
141.22 	(6) if the taxpayer or taxpayer's spouse had a disability or attained the age of 65 on or 
141.23 	before the close of the taxable year, the exemption amount.
141.24 	(j) "Rent constituting property taxes" means 17 percent of the gross rent actually paid 
141.25 	in cash, or its equivalent, or the portion of rent paid in lieu of property taxes, in any taxable 
141.26 	year by a claimant for the right of occupancy of the claimant's Minnesota homestead in the 
141.27 	taxable year, and which rent constitutes the basis, in the succeeding taxable year of a claim 
141.28 	for a credit under this section by the claimant. If an individual occupies a homestead with 
141.29 	another person or persons not related to the individual as the individual's spouse or as 
141.30 	dependents, and the other person or persons are residing at the homestead under a rental or 
141.31 	lease agreement with the individual, the amount of rent constituting property tax for the 
141.32 	individual equals that portion not covered by the rental agreement.

142.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
142.2 	31, 2023.

142.3 	Sec. 7. Minnesota Statutes 2023 Supplement, section 290.0693, subdivision 6, is amended 
142.4 	to read:
142.5 		Subd. 6.Residents of nursing homes, intermediate care facilities, long-term care 
142.6 	facilities, or facilities accepting housing support payments. (a) A taxpayer must not claim 
142.7 	a credit under this section if the taxpayer is a resident of a nursing home, intermediate care 
142.8 	facility, long-term residential facility, or a facility that accepts housing support payments 
142.9 	whose rent constituting property taxes is paid pursuant to the Supplemental Security Income 
142.10 	program under title XVI of the Social Security Act, the Minnesota supplemental aid program 
142.11 	under sections 256D.35 to 256D.54, the medical assistance program pursuant to title XIX 
142.12 	of the Social Security Act, or the housing support program under chapter 256I.
142.13 	(b) If only a portion of the rent constituting property taxes is paid by these programs, 
142.14 	the resident is eligible for a credit, but the credit calculated must be multiplied by a fraction, 
142.15 	the numerator of which is adjusted gross income, reduced by the total amount of income 
142.16 	from the above sources other than vendor payments under the medical assistance program
142.17 	and the denominator of which is adjusted gross income, plus vendor payments under the 
142.18 	medical assistance program, to determine the allowable credit.
142.19 	(c) Notwithstanding paragraphs (a) and (b), if the taxpayer was a resident of the nursing 
142.20 	home, intermediate care facility, long-term residential facility, or facility for which the rent 
142.21 	was paid for the claimant by the housing support program for only a portion of the taxable 
142.22 	year covered by the claim, the taxpayer may compute rent constituting property taxes by 
142.23 	disregarding the rent constituting property taxes from the nursing home or facility and may 
142.24 	use only that amount of rent constituting property taxes or property taxes payable relating 
142.25 	to that portion of the year when the taxpayer was not in the facility. The taxpayer's household 
142.26 	income is the income for the entire taxable year covered by the claim.

142.27 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
142.28 	31, 2023.

142.29 	Sec. 8. Minnesota Statutes 2023 Supplement, section 290.0693, subdivision 8, is amended 
142.30 	to read:
142.31 		Subd. 8.One claimant per household. Only one taxpayer per household per year is 
142.32 	entitled to claim a credit under this section. In the case of a married couple filing a joint 
142.33 	return, the couple may claim a credit under this section based on the total amount of both 
143.1 	spouses' gross rent. In the case of a married taxpayer filing a separate return, only one spouse 
143.2 	may claim the credit under this section. The credit amount for the spouse that claims the 
143.3 	credit must be calculated based on household income and not solely on the income of the 
143.4 	spouse.

143.5 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
143.6 	31, 2023.

143.7 	Sec. 9. Minnesota Statutes 2023 Supplement, section 290.0695, subdivision 2, is amended 
143.8 	to read:
143.9 		Subd. 2.Credit allowed; limitation; carryover. (a) An eligible taxpayer is allowed a 
143.10 	credit against tax due under this chapter equal to 50 percent of eligible expenses, not to 
143.11 	exceed $3,000 per mile, multiplied by the number of miles of railroad track owned or leased 
143.12 	within the state by the eligible taxpayer for which the taxpayer made the qualified railroad 
143.13 	reconstruction or replacement expenditures as of the close of the taxable year for which the 
143.14 	credit is claimed made by an eligible taxpayer within this state during the taxable year for 
143.15 	which the credit is claimed.
143.16 	(b) The credit allowed under paragraph (a) for any taxable year must not exceed the 
143.17 	product of:
143.18 	(1) $3,000, multiplied by;
143.19 	(2) the number of miles of railroad track owned or leased by the eligible taxpayer within 
143.20 	this state as of the close of the taxable year for which the taxpayer made qualified railroad 
143.21 	reconstruction or replacement expenditures for which the credit is claimed.
143.22 	(b) (c) If the amount of the credit determined under this section for any taxable year 
143.23 	exceeds the liability for tax under this chapter, the excess is a credit carryover to each of 
143.24 	the five succeeding taxable years. The entire amount of the excess unused credit for the 
143.25 	taxable year must be carried first to the earliest of the taxable years to which the credit may 
143.26 	be carried and then to each successive year to which the credit may be carried. The amount 
143.27 	of the unused credit that may be added under this paragraph must not exceed the taxpayer's 
143.28 	liability for tax less the credit for the taxable year.
143.29 	(c) (d) An eligible taxpayer claiming a credit under this section may not also claim the 
143.30 	credit under section 297I.20, subdivision 6, for the same qualified railroad reconstruction 
143.31 	or replacement expenditures.

143.32 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
143.33 	after December 31, 2022.

144.1 	Sec. 10. Laws 2023, chapter 1, section 22, is amended to read:
144.2 	Sec. 22. TEMPORARY ADDITIONS AND SUBTRACTIONS; INDIVIDUALS, 
144.3 	ESTATES, AND TRUSTS.
 144.4 	(a) For the purposes of this section:
144.5 	(1) "subtraction" has the meaning given in Minnesota Statutes, section 290.0132, 
144.6 	subdivision 1, and the rules in that subdivision apply to this section;
144.7 	(2) "addition" has the meaning given in Minnesota Statutes, section 290.0131, subdivision 
144.8 	1, and the rules in that subdivision apply to this section; and
144.9 	(3) the definitions in Minnesota Statutes, section 290.01, apply to this section.
144.10 	(b) The following amounts are subtractions:
144.11 	(1) the amount of wages used for the calculation of the employee retention credit for 
144.12 	employers affected by qualified disasters, to the extent not deducted from income, under 
144.13 	Public Law 116-94, division Q, section 203, or Public Law 116-260, division EE, section 
144.14 	303;
144.15 	(2) the amount of wages used for the calculation of the payroll credit for required paid 
144.16 	sick leave, to the extent not deducted from income, under Public Law 116-127, section 
144.17 	7001, as amended by section 9641 of Public Law 117-2;
144.18 	(3) the amount of wages or expenses used for the calculation of the payroll credit for 
144.19 	required paid family leave, to the extent not deducted from income, under Public Law 
144.20 	116-127, section 7003, as amended by section 9641 of Public Law 117-2;
144.21 	(4) the amount of wages used for the calculation of the employee retention credit for 
144.22 	employers subject to closure due to COVID-19, to the extent not deducted from income, 
144.23 	under Public Law 116-136, section 2301, as amended by Public Law 116-260, division EE, 
144.24 	section 207, and Public Law 117-2, section 9651; and
144.25 	(5) the amount required to be added to gross income to claim the credit in section 6432 
144.26 	of the Internal Revenue Code.
144.27 	(c) The following amounts are additions:
144.28 	(1) the amount subtracted for qualified tuition expenses under section 222 of the Internal 
144.29 	Revenue Code, as amended by Public Law 116-94, division Q, section 104;
144.30 	(2) the amount of above the line charitable contributions deducted under section 2204 
144.31 	of Public Law 116-136;
145.1 	(3) the amount of meal expenses in excess of the 50 percent limitation under section 
145.2 	274(n)(1) of the Internal Revenue Code allowed under subsection (n), paragraph (2), 
145.3 	subparagraph (D), of that section; and
145.4 	(4) the amount of charitable contributions deducted from federal taxable income by a 
145.5 	trust for taxable year 2020 under Public Law 116-136, section 2205(a).
145.6 	(d) The commissioner of revenue must apply the subtractions in paragraph (b) and the 
145.7 	additions in paragraph (c), when calculating the following:
145.8 	(1) the percentage under Minnesota Statutes, section 290.06, subdivision 2c, paragraph 
145.9 	(e);
145.10 	(2) a taxpayer's alternative minimum taxable income under Minnesota Statutes, section 
145.11 	290.091; and
145.12 	(3) "income" as defined in Minnesota Statutes, section 289A.08, subdivision 7, paragraph 
145.13 	(j), for the purposes of determining the tax for composite filers and the pass-through entity 
145.14 	tax, means the partner's share of federal adjusted gross income from the partnership modified 
145.15 	by the additions provided in Minnesota Statutes, section 290.0131, subdivisions 8 to 10, 
145.16 	16, 17, and 19, and the subtractions provided in (i) Minnesota Statutes, section 290.0132, 
145.17 	subdivisions 9, 27, and 28, to the extent the amount is assignable or allocable to Minnesota 
145.18 	under Minnesota Statutes, section 290.17; and (ii) Minnesota Statutes, section 290.0132, 
145.19 	subdivision 14. The subtraction allowed under Minnesota Statutes, section 290.0132, 
145.20 	subdivision 9, is only allowed on the composite tax computation to the extent the electing 
145.21 	partner would have been allowed the subtraction.
145.22 	(e) For the purpose of calculating property tax refunds under Minnesota Statutes, chapter 
145.23 	290A, any amounts allowed as a subtraction in paragraph (b) are excluded from "income," 
145.24 	as defined in Minnesota Statutes, section 290A.03, subdivision 3.

145.25 	EFFECTIVE DATE. This section is effective retroactively at the same time the changes 
145.26 	in Laws 2023, chapter 1, section 22, were effective for federal purposes.

145.27 	ARTICLE 10
145.28 	DEPARTMENT OF REVENUE; PROPERTY TAXES AND LOCAL GOVERNMENT 
145.29 	AIDS

145.30 	Section 1. Minnesota Statutes 2022, section 273.13, subdivision 22, is amended to read:
145.31 		Subd. 22.Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and 
145.32 	(c), real estate which is residential and used for homestead purposes is class 1a. In the case 
145.33 	of a duplex or triplex in which one of the units is used for homestead purposes, the entire 
146.1 	property is deemed to be used for homestead purposes. The market value of class 1a property 
146.2 	must be determined based upon the value of the house, garage, and land.
146.3 	The first $500,000 of market value of class 1a property has a net classification rate of 
146.4 	one percent of its market value; and the market value of class 1a property that exceeds 
146.5 	$500,000 has a classification rate of 1.25 percent of its market value.
146.6 	(b) Class 1b property includes homestead real estate or homestead manufactured homes 
146.7 	used for the purposes of a homestead by:
146.8 	(1) any person who is blind as defined in section 256D.35, or the person who is blind 
146.9 	and the spouse of the person who is blind;
146.10 	(2) any person who is permanently and totally disabled or by the person with a disability 
146.11 	and the spouse of the person with a disability; or
146.12 	(3) the surviving spouse of a veteran who was permanently and totally disabled 
146.13 	homesteading a property classified under this paragraph for taxes payable in 2008.
146.14 	Property is classified and assessed under clause (2) only if the government agency or 
146.15 	income-providing source certifies, upon the request of the homestead occupant, that the 
146.16 	homestead occupant satisfies the disability requirements of this paragraph, and that the 
146.17 	property is not eligible for the valuation exclusion under subdivision 34.
146.18 	Property is classified and assessed under paragraph (b) only if the commissioner of 
146.19 	revenue or the county assessor certifies that the homestead occupant satisfies the requirements 
146.20 	of this paragraph.
146.21 	Permanently and totally disabled for the purpose of this subdivision means a condition 
146.22 	which is permanent in nature and totally incapacitates the person from working at an 
146.23 	occupation which brings the person an income. The first $50,000 market value of class 1b 
146.24 	property has a net classification rate of .45 percent of its market value. The remaining market 
146.25 	value of class 1b property is classified as class 1a or, class 2a property, or class 4d(2) 
146.26 	whichever is appropriate.
146.27 	(c) Class 1c property is commercial use real and personal property that abuts public 
146.28 	water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by 
146.29 	the Department of Natural Resources, and is devoted to temporary and seasonal residential 
146.30 	occupancy for recreational purposes but not devoted to commercial purposes for more than 
146.31 	250 days in the year preceding the year of assessment, and that includes a portion used as 
146.32 	a homestead by the owner, which includes a dwelling occupied as a homestead by a 
146.33 	shareholder of a corporation that owns the resort, a partner in a partnership that owns the 
147.1 	resort, or a member of a limited liability company that owns the resort even if the title to 
147.2 	the homestead is held by the corporation, partnership, or limited liability company. For 
147.3 	purposes of this paragraph, property is devoted to a commercial purpose on a specific day 
147.4 	if any portion of the property, excluding the portion used exclusively as a homestead, is 
147.5 	used for residential occupancy and a fee is charged for residential occupancy. Class 1c 
147.6 	property must contain three or more rental units. A "rental unit" is defined as a cabin, 
147.7 	condominium, townhouse, sleeping room, or individual camping site equipped with water 
147.8 	and electrical hookups for recreational vehicles. Class 1c property must provide recreational 
147.9 	activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill 
147.10 	or cross-country ski equipment; provide marina services, launch services, or guide services; 
147.11 	or sell bait and fishing tackle. Any unit in which the right to use the property is transferred 
147.12 	to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies 
147.13 	for class 1c even though it may remain available for rent. A camping pad offered for rent 
147.14 	by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of 
147.15 	the rental agreement, as long as the use of the camping pad does not exceed 250 days. If 
147.16 	the same owner owns two separate parcels that are located in the same township, and one 
147.17 	of those properties is classified as a class 1c property and the other would be eligible to be 
147.18 	classified as a class 1c property if it was used as the homestead of the owner, both properties 
147.19 	will be assessed as a single class 1c property; for purposes of this sentence, properties are 
147.20 	deemed to be owned by the same owner if each of them is owned by a limited liability 
147.21 	company, and both limited liability companies have the same membership. The portion of 
147.22 	the property used as a homestead is class 1a property under paragraph (a). The remainder 
147.23 	of the property is classified as follows: the first $600,000 of market value is tier I, the next 
147.24 	$1,700,000 of market value is tier II, and any remaining market value is tier III. The 
147.25 	classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25 
147.26 	percent. Owners of real and personal property devoted to temporary and seasonal residential 
147.27 	occupancy for recreation purposes in which all or a portion of the property was devoted to 
147.28 	commercial purposes for not more than 250 days in the year preceding the year of assessment 
147.29 	desiring classification as class 1c, must submit a declaration to the assessor designating the 
147.30 	cabins or units occupied for 250 days or less in the year preceding the year of assessment 
147.31 	by January 15 of the assessment year. Those cabins or units and a proportionate share of 
147.32 	the land on which they are located must be designated as class 1c as otherwise provided. 
147.33 	The remainder of the cabins or units and a proportionate share of the land on which they 
147.34 	are located must be designated as class 3a commercial. The owner of property desiring 
147.35 	designation as class 1c property must provide guest registers or other records demonstrating 
147.36 	that the units for which class 1c designation is sought were not occupied for more than 250 
148.1 	days in the year preceding the assessment if so requested. The portion of a property operated 
148.2 	as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) 
148.3 	other nonresidential facility operated on a commercial basis not directly related to temporary 
148.4 	and seasonal residential occupancy for recreation purposes does not qualify for class 1c.
148.5 	(d) Class 1d property includes structures that meet all of the following criteria:
148.6 	(1) the structure is located on property that is classified as agricultural property under 
148.7 	section 273.13, subdivision 23;
148.8 	(2) the structure is occupied exclusively by seasonal farm workers during the time when 
148.9 	they work on that farm, and the occupants are not charged rent for the privilege of occupying 
148.10 	the property, provided that use of the structure for storage of farm equipment and produce 
148.11 	does not disqualify the property from classification under this paragraph;
148.12 	(3) the structure meets all applicable health and safety requirements for the appropriate 
148.13 	season; and
148.14 	(4) the structure is not salable as residential property because it does not comply with 
148.15 	local ordinances relating to location in relation to streets or roads.
148.16 	The market value of class 1d property has the same classification rates as class 1a property 
148.17 	under paragraph (a).

148.18 	EFFECTIVE DATE. This section is effective for assessment year 2025 and thereafter.

148.19 	Sec. 2. Minnesota Statutes 2022, section 375.192, subdivision 2, is amended to read:
148.20 		Subd. 2.Procedure, conditions. Upon written application by the owner of any property, 
148.21 	the county board may grant the reduction or abatement of estimated market valuation or 
148.22 	taxes and of any costs, penalties, or interest on them as the board deems just and equitable 
148.23 	and order the refund in whole or part of any taxes, costs, penalties, or interest which have 
148.24 	been erroneously or unjustly paid. Except as provided in sections 469.1812 to 469.1815, 
148.25 	no reduction or abatement may be granted on the basis of providing an incentive for economic 
148.26 	development or redevelopment. Except as provided in section 375.194, the county board 
148.27 	may consider and grant reductions or abatements on applications only as they relate to taxes 
148.28 	payable in the current year and the two prior years; provided that reductions or abatements 
148.29 	for the two prior years shall be considered or granted only for (i) clerical errors, or (ii) when 
148.30 	the taxpayer fails to file for a reduction or an adjustment due to hardship, as determined by 
148.31 	the county board. The application must include the Social Security number or individual 
148.32 	taxpayer identification number of the applicant. The Social Security number is and individual 
148.33 	taxpayer identification number are private data on individuals as defined by section 13.02, 
149.1 	subdivision 12. All applications must be approved by the county assessor, or, if the property 
149.2 	is located in a city of the first or second class having a city assessor, by the city assessor, 
149.3 	and by the county auditor before consideration by the county board, except that the part of 
149.4 	the application which is for the abatement of penalty or interest must be approved by the 
149.5 	county treasurer and county auditor. Approval by the county or city assessor is not required 
149.6 	for abatements of penalty or interest. No reduction, abatement, or refund of any special 
149.7 	assessments made or levied by any municipality for local improvements shall be made 
149.8 	unless it is also approved by the board of review or similar taxing authority of the 
149.9 	municipality. On any reduction or abatement when the reduction of taxes, costs, penalties, 
149.10 	and interest exceed $10,000, the county board shall give notice within 20 days to the school 
149.11 	board and the municipality in which the property is located. The notice must describe the 
149.12 	property involved, the actual amount of the reduction being sought, and the reason for the 
149.13 	reduction.
149.14 	An appeal may not be taken to the Tax Court from any order of the county board made 
149.15 	in the exercise of the discretionary authority granted in this section.
149.16 	The county auditor shall notify the commissioner of revenue of all abatements resulting 
149.17 	from the erroneous classification of real property, for tax purposes, as nonhomestead property. 
149.18 	For the abatements relating to the current year's tax processed through June 30, the auditor 
149.19 	shall notify the commissioner on or before July 31 of that same year of all abatement 
149.20 	applications granted. For the abatements relating to the current year's tax processed after 
149.21 	June 30 through the balance of the year, the auditor shall notify the commissioner on or 
149.22 	before the following January 31 of all applications granted. The county auditor shall submit 
149.23 	a form containing the Social Security number or individual taxpayer identification number 
149.24 	of the applicant and such other information the commissioner prescribes.

149.25 	EFFECTIVE DATE. This section is effective retroactively for abatement applications 
149.26 	filed in 2023 and thereafter.

149.27 	Sec. 3. Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 6, is amended 
149.28 	to read:
149.29 		Subd. 6.Administration. (a) The commissioner of revenue must compute the amount 
149.30 	of aid payable to each tier I city and county under this section. By August 1 of each year, 
149.31 	the commissioner must certify the distribution factors of each tier I city and county to be 
149.32 	used in the following year. The commissioner must pay local affordable housing aid annually 
149.33 	at the times provided in section 477A.015, distributing the amounts available on the 
149.34 	immediately preceding June 1 under the accounts established in section 477A.37, subdivisions 
150.1 	2 and 3. On or before September 1 of each year, the commissioner of revenue must certify 
150.2 	the amount to be paid to each tier I city and county in that year. By July 15, 2024, and 
150.3 	annually thereafter, the commissioner of management and budget must certify to the 
150.4 	commissioner of revenue the balances in the accounts established in section 477A.37, 
150.5 	subdivisions 2 and 3, as of the immediately preceding June 1. The commissioner of revenue 
150.6 	must pay the full amount of aid on October 1 annually.
150.7 	(b) Beginning in 2025, tier I cities and counties shall submit a report annually, no later 
150.8 	than December 1 of each year, to the Minnesota Housing Finance Agency. The report must 
150.9 	include documentation of the location of any unspent funds distributed under this section 
150.10 	and of qualifying projects completed or planned with funds under this section. If a tier I 
150.11 	city or county fails to submit a report, if a tier I city or county fails to spend funds within 
150.12 	the timeline imposed under subdivision 5, paragraph (b), or if a tier I city or county uses 
150.13 	funds for a project that does not qualify under this section, the Minnesota Housing Finance 
150.14 	Agency shall notify the Department of Revenue and the cities and counties that must repay 
150.15 	funds under paragraph (c) by February 15 of the following year.
150.16 	(c) By May 15, after receiving notice from the Minnesota Housing Finance Agency, a 
150.17 	tier I city or county must pay to the Minnesota Housing Finance Agency funds the city or 
150.18 	county received under this section if the city or county:
150.19 	(1) fails to spend the funds within the time allowed under subdivision 5, paragraph (b);
150.20 	(2) spends the funds on anything other than a qualifying project; or
150.21 	(3) fails to submit a report documenting use of the funds.
150.22 	(d) The commissioner of revenue must stop distributing funds to a tier I city or county 
150.23 	that, in three consecutive years, the Minnesota Housing Finance Agency has reported, 
150.24 	pursuant to paragraph (b), to have failed to use funds, misused funds, or failed to report on 
150.25 	its use of funds.
150.26 	(e) The commissioner may resume distributing funds to a tier I city or county to which 
150.27 	the commissioner has stopped payments in the year following the August 1 after the 
150.28 	Minnesota Housing Finance Agency certifies that the city or county has submitted 
150.29 	documentation of plans for a qualifying project.
150.30 	(f) By June 1, any funds paid to the Minnesota Housing Finance Agency under paragraph 
150.31 	(c) must be deposited in the housing development fund. Funds deposited under this paragraph 
150.32 	are appropriated to the commissioner of the Minnesota Housing Finance Agency for use 
150.33 	on the family homeless prevention and assistance program under section 462A.204, the 
151.1 	economic development and housing challenge program under section 462A.33, and the 
151.2 	workforce and affordable homeownership development program under section 462A.38.

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

151.4 	ARTICLE 11
151.5 	DEPARTMENT OF REVENUE; MISCELLANEOUS

151.6 	Section 1. Minnesota Statutes 2022, section 270C.445, subdivision 6, is amended to read:
151.7 		Subd. 6.Enforcement; administrative order; penalties; cease and desist. (a) The 
151.8 	commissioner may impose an administrative penalty of not more than $1,000 per violation 
151.9 	of subdivision 3 or 5, or section 270C.4451, provided that a penalty may not be imposed 
151.10 	for any conduct for which a tax preparer penalty is imposed under section 289A.60, 
151.11 	subdivision 13. The commissioner may terminate a tax preparer's authority to transmit 
151.12 	returns electronically to the state, if the commissioner determines the tax preparer engaged 
151.13 	in a pattern and practice of violating this section. Imposition of a penalty under this paragraph 
151.14 	is subject to the contested case procedure under chapter 14. The commissioner shall collect 
151.15 	the penalty in the same manner as the income tax. There is no right to make a claim for 
151.16 	refund under section 289A.50 of the penalty imposed under this paragraph. Penalties imposed 
151.17 	under this paragraph are public data.
151.18 	(b) In addition to the penalty under paragraph (a), if the commissioner determines that 
151.19 	a tax preparer has violated subdivision 3 or 5, or section 270C.4451, the commissioner may 
151.20 	issue an administrative order to the tax preparer requiring the tax preparer to cease and 
151.21 	desist from committing the violation. The administrative order may include an administrative 
151.22 	penalty provided in paragraph (a).
151.23 	(c) If the commissioner issues an administrative order under paragraph (b), the 
151.24 	commissioner must send the order to the tax preparer addressed to the last known address 
151.25 	of the tax preparer.
151.26 	(d) A cease and desist order under paragraph (b) must:
151.27 	(1) describe the act, conduct, or practice committed and include a reference to the law 
151.28 	that the act, conduct, or practice violates; and
151.29 	(2) provide notice that the tax preparer may request a hearing as provided in this 
151.30 	subdivision.
151.31 	(e) Within 30 days after the commissioner issues an administrative order under paragraph 
151.32 	(b), the tax preparer may request a hearing to review the commissioner's action. The request 
152.1 	for hearing must be made in writing and must be served on the commissioner at the address 
152.2 	specified in the order. The hearing request must specifically state the reasons for seeking 
152.3 	review of the order. The date on which a request for hearing is served by mail is the postmark 
152.4 	date on the envelope in which the request for hearing is mailed.
152.5 	(f) If a tax preparer does not timely request a hearing regarding an administrative order 
152.6 	issued under paragraph (b), the order becomes a final order of the commissioner and is not 
152.7 	subject to review by any court or agency.
152.8 	(g) If a tax preparer timely requests a hearing regarding an administrative order issued 
152.9 	under paragraph (b), the hearing must be commenced by the issuance of a notice of and 
152.10 	order for hearing by the commissioner within ten 30 days after the commissioner receives 
152.11 	the request for a hearing.
152.12 	(h) A hearing timely requested under paragraph (e) is subject to the contested case 
152.13 	procedure under chapter 14, as modified by this subdivision. The administrative law judge 
152.14 	must issue a report containing findings of fact, conclusions of law, and a recommended 
152.15 	order within ten 30 days after the completion of the hearing, the receipt of late-filed exhibits, 
152.16 	or the submission of written arguments, whichever is later.
152.17 	(i) Within five 15 days of the date of the administrative law judge's report issued under 
152.18 	paragraph (h), any party aggrieved by the administrative law judge's report may submit 
152.19 	written exceptions and arguments to the commissioner. Within 15 45 days after receiving 
152.20 	the administrative law judge's report, the commissioner must issue an order vacating, 
152.21 	modifying, or making final the administrative order.
152.22 	(j) The commissioner and the tax preparer requesting a hearing may by agreement 
152.23 	lengthen any time periods prescribed in paragraphs (g) to (i).
152.24 	(k) An administrative order issued under paragraph (b) is in effect until it is modified 
152.25 	or vacated by the commissioner or an appellate court. The administrative hearing provided 
152.26 	by paragraphs (e) to (i) and any appellate judicial review as provided in chapter 14 constitute 
152.27 	the exclusive remedy for a tax preparer aggrieved by the order.
152.28 	(l) The commissioner may impose an administrative penalty, in addition to the penalty 
152.29 	under paragraph (a), up to $5,000 per violation of a cease and desist order issued under 
152.30 	paragraph (b). Imposition of a penalty under this paragraph is subject to the contested case 
152.31 	procedure under chapter 14. Within 30 days after the commissioner imposes a penalty under 
152.32 	this paragraph, the tax preparer assessed the penalty may request a hearing to review the 
152.33 	penalty order. The request for hearing must be made in writing and must be served on the 
152.34 	commissioner at the address specified in the order. The hearing request must specifically 
153.1 	state the reasons for seeking review of the order. The cease and desist order issued under 
153.2 	paragraph (b) is not subject to review in a proceeding to challenge the penalty order under 
153.3 	this paragraph. The date on which a request for hearing is served by mail is the postmark 
153.4 	date on the envelope in which the request for hearing is mailed. If the tax preparer does not 
153.5 	timely request a hearing, the penalty order becomes a final order of the commissioner and 
153.6 	is not subject to review by any court or agency. A penalty imposed by the commissioner 
153.7 	under this paragraph may be collected and enforced by the commissioner as an income tax 
153.8 	liability. There is no right to make a claim for refund under section 289A.50 of the penalty 
153.9 	imposed under this paragraph. A penalty imposed under this paragraph is public data.
153.10 	(m) If a tax preparer violates a cease and desist order issued under paragraph (b), the 
153.11 	commissioner may terminate the tax preparer's authority to transmit returns electronically 
153.12 	to the state. Termination under this paragraph is public data.
153.13 	(n) A cease and desist order issued under paragraph (b) is public data when it is a final 
153.14 	order.
153.15 	(o) Notwithstanding any other law, the commissioner may impose a penalty or take other 
153.16 	action under this subdivision against a tax preparer, with respect to a return, within the 
153.17 	period to assess tax on that return as provided by sections 289A.38 to 289A.382.
153.18 	(p) Notwithstanding any other law, the imposition of a penalty or any other action against 
153.19 	a tax preparer under this subdivision, other than with respect to a return, must be taken by 
153.20 	the commissioner within five years of the violation of statute.

153.21 	EFFECTIVE DATE. This section is effective for penalties assessed and orders issued 
153.22 	after the day following final enactment.

153.23 	Sec. 2. Minnesota Statutes 2022, section 289A.12, subdivision 18, is amended to read:
153.24 		Subd. 18.Returns Return by qualified heirs. A qualified heir, as defined in section 
153.25 	291.03, subdivision 8, paragraph (c), must file two returns a return with the commissioner 
153.26 	attesting that no disposition or cessation as provided by section 291.03, subdivision 11, 
153.27 	paragraph (a), occurred. The first return must be filed no earlier than 24 months and no later 
153.28 	than 26 months after the decedent's death. The second return must be filed no earlier than 
153.29 	36 months and no later than 39 months after the decedent's death.

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

154.1 	Sec. 3. Minnesota Statutes 2023 Supplement, section 297E.06, subdivision 4, is amended 
154.2 	to read:
154.3 		Subd. 4.Annual audit, and certified inventory, and cash count. (a) An organization 
154.4 	licensed under chapter 349 with gross receipts from lawful gambling of more than $750,000 
154.5 	in any year must have an annual financial audit of its lawful gambling activities and funds 
154.6 	for that year. For the purposes of this subdivision, "gross receipts" does not include a licensed 
154.7 	organization's receipts from electronic pull-tabs regulated under chapter 349 provided the 
154.8 	electronic pull-tab manufacturer has completed an annual system and organization controls 
154.9 	audit, containing standards that must incorporate and be consistent with standards prescribed 
154.10 	by the American Institute of Certified Public Accountants.
154.11 	(b) The commissioner may require a financial audit of the lawful gambling activities 
154.12 	and funds of an organization licensed under chapter 349, with gross receipts less than 
154.13 	$750,000 annually, when an organization has:
154.14 	(1) failed to timely file required gambling tax returns;
154.15 	(2) failed to timely pay the gambling tax or regulatory fee;
154.16 	(3) filed fraudulent gambling tax returns;
154.17 	(4) failed to take corrective actions required by the commissioner; or
154.18 	(5) failed to otherwise comply with this chapter.
154.19 	(c) Audits under this subdivision must be performed by an independent accountant firm 
154.20 	licensed in accordance with chapter 326A.
154.21 	(d) An organization licensed under chapter 349 must perform an annual certified inventory 
154.22 	and cash count report at the end of its fiscal year and submit the report to the commissioner 
154.23 	within 30 days after the end of its fiscal year. The report shall be on a form prescribed by 
154.24 	the commissioner.
154.25 	(e) The commissioner of revenue shall prescribe standards for the audits, and certified 
154.26 	inventory, and cash count reports report required under this subdivision. The standards may 
154.27 	vary based on the gross receipts of the organization. The standards must incorporate and 
154.28 	be consistent with standards prescribed by the American Institute of Certified Public 
154.29 	Accountants. A complete, true, and correct copy of the audits, and certified inventory, and 
154.30 	cash count report must be filed as prescribed by the commissioner.

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

155.1 	Sec. 4. Minnesota Statutes 2022, section 297I.20, subdivision 4, is amended to read:
155.2 		Subd. 4.Film production credit. (a) A taxpayer may claim a credit against the premiums 
155.3 	tax imposed under this chapter equal to the amount indicated on the credit certificate 
155.4 	statement issued to the company under section 116U.27. If the amount of the credit exceeds 
155.5 	the taxpayer's liability for tax under this chapter, the excess is a credit carryover to each of 
155.6 	the five succeeding taxable years. The entire amount of the excess unused credit for the 
155.7 	taxable year must be carried first to the earliest of the taxable years to which the credit may 
155.8 	be carried and then to each successive year to which the credit may be carried. This credit 
155.9 	does not affect the calculation of fire state aid under section 477B.03 and police state aid 
155.10 	under section 477C.03.
155.11 	(b) This subdivision expires January 1, 2025 2031, for taxable years beginning after and 
155.12 	premiums received after December 31, 2024 2030.

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

155.14 	Sec. 5. Laws 2023, chapter 1, section 28, is amended to read:
155.15 	Sec. 28. EXTENSION OF STATUTE OF LIMITATIONS.
 155.16 	(a) Notwithstanding any law to the contrary, a taxpayer whose tax liability changes as 
155.17 	a result of this act may file an amended return by December 31, 2023. The commissioner 
155.18 	may review and assess the return of a taxpayer covered by this provision for the later of:
155.19 	(1) the periods under Minnesota Statutes, sections 289A.38; 289.39 289A.39, subdivision 
155.20 	3; and 289A.40; or
155.21 	(2) one year from the time the amended return is filed as a result of a change in tax 
155.22 	liability under this section.
155.23 	(b) Interest on any additional liabilities as a result of any provision in this act accrue 
155.24 	beginning on January 1, 2024.

155.25 	EFFECTIVE DATE. This section is effective retroactively at the same time the changes 
155.26 	incorporated in Laws 2023, chapter 1, were effective for federal purposes.

APPENDIX 

Repealed Minnesota Statutes: S5234-1 

13.4967 OTHER TAX DATA CODED ELSEWHERE.Subd. 5.Marijuana and controlled substance tax information. 
Disclosure of information obtained under chapter 297D is governed by section 297D.13, subdivisions 1 to 3. 

297A.99 LOCAL SALES TAXES.Subd. 3a.Temporary moratorium. 
(a) Notwithstanding subdivisions 1, 2, and 3, until after May 31, 2025, a political subdivision may not engage in any of the following activities in connection with imposing a new local sales and use tax or modifying an existing local sales and use tax: 

(1) any activity described in subdivision 1, paragraph (d); 

(2) adopt a resolution; or 

(3) seek voter approval. 

(b) Paragraph (a) does not apply to new local sales and use taxes or modifications to existing local sales and use taxes authorized in May, 2023. 

(c) This subdivision expires June 1, 2025. 

297D.01 DEFINITIONS.Subdivision 1.Illegal cannabis. 
"Illegal cannabis" means any taxable cannabis product as defined in section 295.81, subdivision 1, paragraph (r), whether real or counterfeit, that is held, possessed, transported, transferred, sold, or offered to be sold in violation of chapter 342 or Minnesota criminal laws. 

Subd. 2.Controlled substance. 
"Controlled substance" means any drug or substance, whether real or counterfeit, as defined in section 152.01, subdivision 4, that is held, possessed, transported, transferred, sold, or offered to be sold in violation of Minnesota laws. "Controlled substance" does not include illegal cannabis. 

Subd. 3.Tax obligor or obligor. 
"Tax obligor" or "obligor" means a person who in violation of Minnesota law manufactures, produces, ships, transports, or imports into Minnesota or in any manner acquires or possesses more than 42-1/2 grams of illegal cannabis, or seven or more grams of any controlled substance, or ten or more dosage units of any controlled substance which is not sold by weight. A quantity of illegal cannabis or other controlled substance is measured by the weight of the substance whether pure or impure or dilute, or by dosage units when the substance is not sold by weight, in the tax obligor's possession. A quantity of a controlled substance is dilute if it consists of a detectable quantity of pure controlled substance and any excipients or fillers. 

Subd. 4.Commissioner. 
"Commissioner" means the commissioner of revenue. 

297D.02 ADMINISTRATION.
The commissioner of revenue shall administer this chapter. The commissioner shall prescribe the content, format, and manner of all forms and other documents required to be filed under this chapter pursuant to section 270C.30. Payments required by this chapter must be made to the commissioner on the form provided by the commissioner. Tax obligors are not required to give their name, address, Social Security number, or other identifying information on the form. The commissioner shall collect all taxes under this chapter. 

297D.03 RULES.
The commissioner may adopt rules necessary to enforce this chapter. The commissioner shall adopt a uniform system of providing, affixing, and displaying official stamps, official labels, or other official indicia for marijuana and controlled substances on which a tax is imposed. 

297D.04 TAX PAYMENT REQUIRED FOR POSSESSION.
No tax obligor may possess any illegal cannabis or controlled substance upon which a tax is imposed by section 297D.08 unless the tax has been paid on the illegal cannabis or a controlled substance as evidenced by a stamp or other official indicia. 

297D.05 NO IMMUNITY.
Nothing in this chapter may in any manner provide immunity for a tax obligor from criminal prosecution pursuant to Minnesota law. 

297D.06 PHARMACEUTICALS.
Nothing in this chapter requires persons registered under chapter 151 or otherwise lawfully in possession of illegal cannabis or a controlled substance to pay the tax required under this chapter. 

297D.07 MEASUREMENT.
For the purpose of calculating the tax under section 297D.08, a quantity of illegal cannabis or a controlled substance is measured by the weight of the substance whether pure or impure or dilute, or by dosage units when the substance is not sold by weight, in the tax obligor's possession. A quantity of a controlled substance is dilute if it consists of a detectable quantity of pure controlled substance and any excipients or fillers. 

297D.08 TAX RATE.
A tax is imposed on illegal cannabis and controlled substances as defined in section 297D.01 at the following rates: 

(1) on each gram of illegal cannabis, or each portion of a gram, $3.50; and 

(2) on each gram of controlled substance, or portion of a gram, $200; or 

(3) on each ten dosage units of a controlled substance that is not sold by weight, or portion thereof, $400. 

297D.085 CREDIT FOR PREVIOUSLY PAID TAXES.
If another state or local unit of government has previously assessed an excise tax on the illegal cannabis or controlled substances, the taxpayer must pay the difference between the tax due under section 297D.08 and the tax previously paid. If the tax previously paid to the other state or local unit of government was equal to or greater than the tax due under section 297D.08, no tax is due. The burden is on the taxpayer to show that an excise tax on the illegal cannabis or controlled substances has been paid to another state or local unit of government. 

297D.09 PENALTIES; CRIMINAL PROVISIONS.Subdivision 1.Penalties. 
Any tax obligor violating this chapter is subject to a penalty of 100 percent of the tax in addition to the tax imposed by section 297D.08. The penalty will be collected as part of the tax. 

Subd. 1a.Criminal penalty; sale without affixed stamps. 
In addition to the tax penalty imposed, a tax obligor distributing or possessing illegal cannabis or controlled substances without affixing the appropriate stamps, labels, or other indicia is guilty of a crime and, upon conviction, may be sentenced to imprisonment for not more than seven years or to payment of a fine of not more than $14,000, or both. 

Subd. 2.Statute of limitations. 
Notwithstanding section 628.26, or any other provision of the criminal laws of this state, an indictment may be found and filed, or a complaint filed, upon any criminal offense specified in this section, in the proper court within six years after the commission of this offense. 

297D.10 STAMP PRICE.
Official stamps, labels, or other indicia to be affixed to all illegal cannabis or controlled substances shall be purchased from the commissioner. The purchaser shall pay 100 percent of face value for each stamp, label, or other indicia at the time of the purchase. 

297D.11 PAYMENT DUE.Subdivision 1.Stamps affixed. 
When a tax obligor purchases, acquires, transports, or imports into this state illegal cannabis or controlled substances on which a tax is imposed by section 297D.08, and if the indicia evidencing the payment of the tax have not already been affixed, the tax obligor shall have them permanently affixed on the illegal cannabis or controlled substance immediately after receiving the substance. Each stamp or other official indicia may be used only once. 

Subd. 2.Payable on possession. 
Taxes imposed upon illegal cannabis or controlled substances by this chapter are due and payable immediately upon acquisition or possession in this state by a tax obligor. 

297D.12 ALL ASSESSMENTS ARE JEOPARDY.Subdivision 1.Assessment procedure. 
An assessment for a tax obligor not possessing valid stamps or other official indicia showing that the tax has been paid shall be considered a jeopardy assessment or collection, as provided in section 270C.36. The commissioner shall assess a tax and applicable penalties based on personal knowledge or information available to the commissioner; mail the taxpayer at the taxpayer's last known address or serve in person, a written notice of the amount of tax and penalty; demand its immediate payment; and, if payment is not immediately made, collect the tax and penalty by any method prescribed in chapter 270C, except that the commissioner need not await the expiration of the times specified in chapter 270C. 

Subd. 2.Injunction prohibited. 
No person may bring suit to enjoin the assessment or collection of any taxes, interest, or penalties imposed by this chapter. 

Subd. 3.Standard of proof. 
The tax and penalties assessed by the commissioner are presumed to be valid and correctly determined and assessed. The burden is upon the taxpayer to show their incorrectness or invalidity. Any statement filed by the commissioner with the court administrator, or any other certificate by the commissioner of the amount of tax and penalties determined or assessed is admissible in evidence and is prima facie evidence of the facts it contains. 

297D.13 CONFIDENTIAL NATURE OF INFORMATION.Subdivision 1.Disclosure prohibited. 
Notwithstanding any law to the contrary, neither the commissioner nor a public employee may reveal facts contained in a report or return required by this chapter or any information obtained from a tax obligor; nor can any information contained in such a report or return or obtained from a tax obligor be used against the tax obligor in any criminal proceeding, unless independently obtained, except in connection with a proceeding involving taxes due under this chapter from the tax obligor making the return. 

Subd. 2.Penalty for disclosure. 
Any person violating this section is guilty of a gross misdemeanor. 

Subd. 3.Statistics. 
This section does not prohibit the commissioner from publishing statistics that do not disclose the identity of tax obligors or the contents of particular returns or reports. 

Subd. 4.Possession of stamps. 
A stamp denoting payment of the tax imposed under this chapter must not be used against the taxpayer in a criminal proceeding, except that the stamp may be used against the taxpayer in connection with the administration or civil or criminal enforcement of the tax imposed under this chapter or any similar tax imposed by another state or local unit of government. 

477A.35 LOCAL AFFORDABLE HOUSING AID.Subdivision 1.Purpose. 
The purpose of this section is to help metropolitan local governments to develop and preserve affordable housing within their jurisdictions in order to keep families from losing housing and to help those experiencing homelessness find housing. 

Repealed Minnesota Session Laws: S5234-1 

Laws 2023, chapter 64, article 15, section 24
Sec. 24. TAX FILING MODERNIZATION. Subdivision 1.Account established; appropriation. 
A tax filing modernization account is established in the special revenue fund. All funds in the tax filing modernization account are appropriated to the commissioner of revenue for the purposes specified in subdivision 3. 

Subd. 2.Transfer. 
$5,000,000 in fiscal year 2024 is transferred to the tax filing modernization account from the general fund. This is a onetime transfer. 

Subd. 3.Eligible uses. 
(a) The commissioner of revenue may use funds in the tax filing modernization account to modernize the state process for filing individual income tax returns, including: 

(1) updating and reviewing changes to individual income tax forms resulting from this act; 

(2) coordinating the process for filing state individual income tax returns with free filing options for the federal income tax; and 

(3) development and implementation of state free filing options for the individual income tax. 

(b) Beginning July 1, 2026, the commissioner of revenue may use any unspent funds in the tax filing modernization account to make taxpayer assistance grants to eligible organizations qualifying under section 7526A(e)(2)(B) of the Internal Revenue Code. 

Subd. 4.Unspent funds. 
Any unspent funds in the tax filing modernization account cancel to the general fund on June 30, 2027.