1.1 	A bill for an act
1.2 	relating to taxation; modifying provisions governing individual income and 
1.3 	corporate franchise taxes, property taxes, certain state aid programs, and provisions 
1.4 	related to public finance; modifying property tax classifications, exemptions, and 
1.5 	refunds; modifying aid reporting requirements; providing certain aid penalty relief; 
1.6 	appropriating money;amending Minnesota Statutes 2024, sections 3.8855, 
1.7 	subdivisions 2, 3, 8; 10A.02, subdivision 11b; 10A.322, subdivision 4; 270C.445, 
1.8 	subdivision 3; 272.01, subdivision 2; 272.02, subdivision 19, by adding 
1.9 	subdivisions; 273.124, subdivisions 8, 14; 273.13, subdivision 22; 273.38; 273.41; 
1.10 	290.0132, by adding subdivisions; 290.06, subdivision 23; 290.0693, subdivision 
1.11 	1; 290.0695, subdivisions 1, 3; 290.091, subdivision 2; 290A.03, subdivision 3; 
1.12 	446A.086, subdivision 1; 469.104; 474A.091, subdivisions 2, 2a; Laws 2023, 
1.13 	chapter 64, article 4, section 27, by adding a subdivision; repealing Minnesota 
1.14 	Statutes 2024, sections 13.4967, subdivision 2a; 290.0679.
1.15 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.16 	ARTICLE 1
1.17 	INCOME AND CORPORATE FRANCHISE TAXES

1.18 	Section 1. Minnesota Statutes 2024, section 3.8855, subdivision 2, is amended to read:
1.19 		Subd. 2.Definitions. For the purposes of this section,:
1.20 	(1) "commissioner" means the commissioner of revenue; and
1.21 	(2) "significant tax expenditure," "tax," and "tax expenditure" have the meanings given 
1.22 	in section 270C.11, subdivision 6.

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

1.24 	Sec. 2. Minnesota Statutes 2024, section 3.8855, subdivision 3, is amended to read:
1.25 		Subd. 3.Membership. (a) The commission consists of:
2.1 	(1) two senators appointed by the senate majority leader;
2.2 	(2) two senators appointed by the senate minority leader;
2.3 	(3) two representatives appointed by the speaker of the house;
2.4 	(4) two representatives appointed by the minority leader of the house of representatives; 
2.5 	and
2.6 	(5) the commissioner of revenue or the commissioner's designee.
2.7 	(b) Each appointing authority must make appointments by January 31 of the regular 
2.8 	legislative session in the odd-numbered year.
2.9 	(c) If the chair of the house or senate committee with primary jurisdiction over taxes is 
2.10 	not an appointed member, the chair is an ex officio, nonvoting member of the commission.
2.11 	(d) The commissioner may designate another individual to represent the commissioner 
2.12 	or the commissioner's designee at any meeting of the commission.

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

2.14 	Sec. 3. Minnesota Statutes 2024, section 3.8855, subdivision 8, is amended to read:
2.15 		Subd. 8.Terms; vacancies; meetings. (a) Members of the commission serve a term 
2.16 	beginning upon appointment and ending at the beginning of the regular legislative session 
2.17 	in the next odd-numbered year. The appropriate appointing authority must fill a vacancy 
2.18 	for a seat of a current legislator for the remainder of the unexpired term. Members may be 
2.19 	removed or replaced at the pleasure of the appointing authority.
2.20 	(b) If a commission member ceases to be a member of the legislative body from which 
2.21 	the member was appointed, the member vacates membership on the commission.
2.22 	(c) The commissioner of revenue must convene the first meeting of each year required 
2.23 	under subdivision 4, paragraph (c).

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

2.25 	Sec. 4. Minnesota Statutes 2024, section 10A.02, subdivision 11b, is amended to read:
2.26 		Subd. 11b.Data privacy related to electronic reporting system. (a) The board may 
2.27 	develop and maintain systems to enable treasurers to enter and store electronic records 
2.28 	online for the purpose of complying with this chapter. Data entered into such systems by 
2.29 	treasurers or their authorized agents is not government data under chapter 13 and may not 
2.30 	be accessed or used by the board for any purpose without the treasurer's written consent. 
3.1 	Data from such systems that has been submitted to the board as a filed report is government 
3.2 	data under chapter 13.
3.3 	(b) For purposes of administering the refund under section 290.06, subdivision 23, the 
3.4 	board may access or use the following data entered and stored in an electronic reporting 
3.5 	system and share the data with the commissioner of revenue: (1) the amount of the 
3.6 	contribution; (2) the name and address of the contributor; (3) any unique identifier for the 
3.7 	contribution; (4) the name and campaign identification number of the party or candidate 
3.8 	that received the contribution; and (5) the date on which the contribution was received. Data 
3.9 	accessed, used, or maintained by the board under this paragraph are classified as nonpublic 
3.10 	data, as defined in section 13.02, subdivision 9, and private data on individuals, as defined 
3.11 	in section 13.02, subdivision 12.

3.12 	EFFECTIVE DATE. This section is effective January 1, 2027.

3.13 	Sec. 5. Minnesota Statutes 2024, section 10A.322, subdivision 4, is amended to read:
3.14 		Subd. 4.Refund receipt forms receipts; penalty. (a) The board must make available 
3.15 	to a political party on request and to any candidate for whom an agreement under this section 
3.16 	is effective, a supply of official refund receipt forms receipts in an electronic format that 
3.17 	state in boldface type that:
3.18 	(1) a contributor who is given a receipt form is eligible to claim a refund as provided in 
3.19 	section 290.06, subdivision 23; and
3.20 	(2) if the contribution is to a candidate, that the candidate has signed an agreement to 
3.21 	limit campaign expenditures as provided in this section.
3.22 	The forms must provide duplicate copies of the receipt to be attached to the contributor's 
3.23 	claim. An official refund receipt must only be issued for a contribution of $10 or more. 
3.24 	Each receipt must be in an electronic format and include a unique receipt validation number 
3.25 	that allows the commissioner of revenue to verify the information on the receipt with the 
3.26 	Campaign Finance Board. A political party or candidate may provide a printed copy of the 
3.27 	electronic receipt to the contributor.
3.28 	(b) Once each business day, the board must provide the commissioner of revenue a 
3.29 	receipt validation report. For each contribution reported to the board since the previous 
3.30 	report, the report must include:
3.31 	(1) the date and amount of the contribution;
3.32 	(2) the name and address of the contributor;
4.1 	(3) the name and campaign identification number of the party or candidate that received 
4.2 	the contribution; and
4.3 	(4) the receipt validation number assigned to the contribution.
4.4 	(b) (c) The willful issuance of an official refund receipt form or a facsimile of one to 
4.5 	any of the candidate's contributors by a candidate or treasurer of a candidate who did not 
4.6 	sign an agreement under this section is subject to a civil penalty of up to $3,000 imposed 
4.7 	by the board.
4.8 	(c) (d) The willful issuance of an official refund receipt form or a facsimile to an 
4.9 	individual not eligible to claim a refund under section 290.06, subdivision 23, is subject to 
4.10 	a civil penalty of up to $3,000 imposed by the board.
4.11 	(d) (e) A violation of paragraph (b) (c) or (c) (d) is a misdemeanor.
4.12 	(f) A receipt validation report and a receipt validation number prepared pursuant to this 
4.13 	section are classified as nonpublic data, as defined in section 13.02, subdivision 9, and 
4.14 	private data on individuals, as defined in section 13.02, subdivision 12.

4.15 	EFFECTIVE DATE. This section is effective for contributions made after December 
4.16 	31, 2026.

4.17 	Sec. 6. Minnesota Statutes 2024, section 270C.445, subdivision 3, is amended to read:
4.18 		Subd. 3.Standards of conduct. No tax preparer shall:
4.19 	(1) without good cause fail to promptly, diligently, and without unreasonable delay 
4.20 	complete a client's return;
4.21 	(2) obtain the signature of a client to a return or authorizing document that contains 
4.22 	blank spaces to be filled in after it has been signed;
4.23 	(3) fail to sign a client's return when compensation for services rendered has been made;
4.24 	(4) fail to provide on a client's return the preparer tax identification number when required 
4.25 	under section 6109(a)(4) of the Internal Revenue Code or section 289A.60, subdivision 28;
4.26 	(5) fail or refuse to give a client a copy of any document requiring the client's signature 
4.27 	within a reasonable time after the client signs the document;
4.28 	(6) fail to retain for at least four years a copy of a client's returns;
4.29 	(7) fail to maintain a confidential relationship with clients or former clients;
5.1 	(8) fail to take commercially reasonable measures to safeguard a client's nonpublic 
5.2 	personal information;
5.3 	(9) make, authorize, publish, disseminate, circulate, or cause to make, either directly or 
5.4 	indirectly, any false, deceptive, or misleading statement or representation relating to or in 
5.5 	connection with the offering or provision of tax preparation services;
5.6 	(10) require a client to enter into a loan arrangement in order to complete a client's return;
5.7 	(11) claim credits or deductions on a client's return for which the tax preparer knows or 
5.8 	reasonably should know the client does not qualify;
5.9 	(12) report a household income on a client's claim filed under chapter 290A that the tax 
5.10 	preparer knows or reasonably should know is not accurate;
5.11 	(13) engage in any conduct that is subject to a penalty under section 289A.60, subdivision 
5.12 	13, 20, 20a, 26, or 28;
5.13 	(14) whether or not acting as a taxpayer representative, fail to conform to the standards 
5.14 	of conduct required by Minnesota Rules, part 8052.0300, subpart 4;
5.15 	(15) whether or not acting as a taxpayer representative, engage in any conduct that is 
5.16 	incompetent conduct under Minnesota Rules, part 8052.0300, subpart 5;
5.17 	(16) whether or not acting as a taxpayer representative, engage in any conduct that is 
5.18 	disreputable conduct under Minnesota Rules, part 8052.0300, subpart 6;
5.19 	(17) charge, offer to accept, or accept a fee based upon a percentage of an anticipated 
5.20 	refund for tax preparation services;
5.21 	(18) under any circumstances, withhold or fail to return to a client a document provided 
5.22 	by the client for use in preparing the client's return;
5.23 	(19) take control or ownership of a client's refund by any means, including:
5.24 	(i) directly or indirectly endorsing or otherwise negotiating a check or other refund 
5.25 	instrument, including an electronic version of a check;
5.26 	(ii) directing an electronic or direct deposit of the refund into an account unless the 
5.27 	client's name is on the account; and
5.28 	(iii) establishing or using an account in the preparer's name to receive a client's refund 
5.29 	through a direct deposit or any other instrument unless the client's name is also on the 
5.30 	account, except that a taxpayer may assign the portion of a refund representing the Minnesota 
6.1 	education credit available under section 290.0674 to a bank account without the client's 
6.2 	name, as provided under section 290.0679;
6.3 	(20) fail to act in the best interests of the client;
6.4 	(21) fail to safeguard and account for any money handled for the client;
6.5 	(22) fail to disclose all material facts of which the preparer has knowledge which might 
6.6 	reasonably affect the client's rights and interests;
6.7 	(23) violate any provision of section 332.37;
6.8 	(24) include any of the following in any document provided or signed in connection 
6.9 	with the provision of tax preparation services:
6.10 	(i) a hold harmless clause;
6.11 	(ii) a confession of judgment or a power of attorney to confess judgment against the 
6.12 	client or appear as the client in any judicial proceeding;
6.13 	(iii) a waiver of the right to a jury trial, if applicable, in any action brought by or against 
6.14 	a debtor;
6.15 	(iv) an assignment of or an order for payment of wages or other compensation for 
6.16 	services;
6.17 	(v) a provision in which the client agrees not to assert any claim or defense otherwise 
6.18 	available;
6.19 	(vi) a waiver of any provision of this section or a release of any obligation required to 
6.20 	be performed on the part of the tax preparer; or
6.21 	(vii) a waiver of the right to injunctive, declaratory, or other equitable relief or relief on 
6.22 	a class basis; or
6.23 	(25) if making, providing, or facilitating a refund anticipation loan, fail to provide all 
6.24 	disclosures required by the federal Truth in Lending Act, United States Code, title 15, in a 
6.25 	form that may be retained by the client.

6.26 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
6.27 	31, 2025.

7.1 	Sec. 7. Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision 
7.2 	to read:
7.3 		Subd. 36.Discharges of indebtedness; coerced debt. The amount of discharge of 
7.4 	indebtedness awarded to a claimant under section 332.74, subdivision 3, is a subtraction.

7.5 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
7.6 	31, 2024.

7.7 	Sec. 8. Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision 
7.8 	to read:
7.9 		Subd. 37.Foreign service pension; retirement pay. (a) Compensation received from 
7.10 	a pension or other retirement pay from the federal government for service in the foreign 
7.11 	service and established under United States Code, title 22, sections 4041 to 4069 and 4071, 
7.12 	is a subtraction.
7.13 	(b) The subtraction equals the product of:
7.14 	(1) the amount of compensation received under paragraph (a); and
7.15 	(2) the number of years of foreign service divided by the total number of years of civil 
7.16 	service for which the taxpayer receives pension income.
7.17 	(c) Any amount used to claim the subtraction in this subdivision must not be used to 
7.18 	claim the subtraction in subdivision 34.

7.19 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
7.20 	31, 2024.

7.21 	Sec. 9. Minnesota Statutes 2024, section 290.06, subdivision 23, is amended to read:
7.22 		Subd. 23.Refund of contributions to political parties and candidates. (a) A taxpayer 
7.23 	may claim a refund equal to the amount of the taxpayer's contributions made in the calendar 
7.24 	year to candidates and to a political party. The maximum total refund per calendar year for 
7.25 	an individual must not exceed $75 and for a married couple, filing jointly, must not exceed 
7.26 	$150. The commissioner must not issue a refund, whether in one payment or in aggregate, 
7.27 	to a taxpayer that exceeds the maximum refund amounts specified in this subdivision. A 
7.28 	refund of a contribution is allowed only if the taxpayer files:
7.29 	(1) a form required by the commissioner and attaches to the form a copy of an official 
7.30 	refund receipt form issued by the candidate or party and signed by the candidate, the treasurer 
7.31 	of the candidate's principal campaign committee, or the chair or treasurer of the party unit, 
8.1 	after the contribution was received. The receipt forms must be numbered, and the data on 
8.2 	the receipt that are not public must be made available to the campaign finance and public 
8.3 	disclosure board upon its request.; or
8.4 	(2) a claim using the electronic filing system authorized in paragraph (i).
8.5 	The form or claim must include one or more unique receipt validation numbers from receipts 
8.6 	issued pursuant to section 10A.322, subdivision 4.
8.7 	(b) A claim must be filed with the commissioner no sooner than January 1 of the calendar 
8.8 	year in which the contribution was made and no later than April 15 of the calendar year 
8.9 	following the calendar year in which the contribution was made. A taxpayer may file only 
8.10 	one claim per calendar year. A claim must be for a minimum of $10. Amounts paid by the 
8.11 	commissioner after June 15 of the calendar year following the calendar year in which the 
8.12 	contribution was made must include interest at the rate specified in section 270C.405.
8.13 	(b) (c) No refund is allowed under this subdivision for a contribution to a candidate 
8.14 	unless the candidate:
8.15 	(1) has signed an agreement to limit campaign expenditures as provided in section 
8.16 	10A.322;
8.17 	(2) is seeking an office for which voluntary spending limits are specified in section 
8.18 	10A.25; and
8.19 	(3) has designated a principal campaign committee.
8.20 	This subdivision does not limit the campaign expenditures of a candidate who does not 
8.21 	sign an agreement but accepts a contribution for which the contributor improperly claims 
8.22 	a refund.
8.23 	(c) (d) For purposes of this subdivision, "political party" means a major political party 
8.24 	as defined in section 200.02, subdivision 7, or a minor political party qualifying for inclusion 
8.25 	on the income tax or property tax refund form under section 10A.31, subdivision 3a.
8.26 	A "major party" or "minor party" includes the aggregate of that party's organization 
8.27 	within each house of the legislature, the state party organization, and the party organization 
8.28 	within congressional districts, counties, legislative districts, municipalities, and precincts.
8.29 	"Candidate" means a candidate as defined in section 10A.01, subdivision 10, except a 
8.30 	candidate for judicial office.
8.31 	"Contribution" means a gift of money.
9.1 	(d) (e) The commissioner shall make copies of the form available to the public and 
9.2 	candidates upon request.
9.3 	(e) (f) The following data collected or maintained by the commissioner under this 
9.4 	subdivision are private: the identities of individuals claiming a refund, the identities of 
9.5 	candidates to whom those individuals have made contributions, and the amount of each 
9.6 	contribution.
9.7 	(f) (g) The commissioner shall report to the campaign finance and public disclosure 
9.8 	board by each August 1 a summary showing the total number and aggregate amount of 
9.9 	political contribution refunds made on behalf of each candidate and each political party. 
9.10 	These data are public.
9.11 	(g) (h) The amount necessary to pay claims for the refund provided in this section is 
9.12 	appropriated from the general fund to the commissioner of revenue.
9.13 	(h) For a taxpayer who files a claim for refund via the Internet or other electronic means, 
9.14 	the commissioner may accept the number on the official receipt as documentation that a 
9.15 	contribution was made rather than the actual receipt as required by paragraph (a).
9.16 	(i) The commissioner must establish an electronic filing system by which refunds are 
9.17 	claimed.

9.18 	EFFECTIVE DATE. This section is effective for contributions made after December 
9.19 	31, 2026.

9.20 	Sec. 10. Minnesota Statutes 2024, section 290.0693, subdivision 1, is amended to read:
9.21 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
9.22 	the meanings given.
9.23 	(b) "Combined exemption amount" means the sum of:
9.24 	(1) for the taxpayer's first dependent, the exemption amount multiplied by 1.4;
9.25 	(2) for the taxpayer's second dependent, the exemption amount multiplied by 1.3;
9.26 	(3) for the taxpayer's third dependent, the exemption amount multiplied by 1.2;
9.27 	(4) for the taxpayer's fourth dependent, the exemption amount multiplied by 1.1;
9.28 	(5) for the taxpayer's fifth dependent, the exemption amount; and
9.29 	(6) if the taxpayer or taxpayer's spouse had a disability or attained the age of 65 on or 
9.30 	before the close of the taxable year, the exemption amount.
10.1 	(b) (c) "Dependent" means any individual who is considered a dependent under sections 
10.2 	151 and 152 of the Internal Revenue Code.
10.3 	(c) (d) "Disability" has the meaning given in section 290A.03, subdivision 10.
10.4 	(d) (e) "Exemption amount" means the exemption amount under section 290.0121, 
10.5 	subdivision 1, paragraph (b).
10.6 	(e) (f) "Gross rent" means rent paid for the right of occupancy, at arm's length, of a 
10.7 	homestead, exclusive of charges for any medical services furnished by the landlord as a 
10.8 	part of the rental agreement, whether expressly set out in the rental agreement or not. The 
10.9 	gross rent of a resident of a nursing home or intermediate care facility is $600 per month. 
10.10 	The gross rent of a resident of an adult foster care home is $930 per month. The commissioner 
10.11 	shall annually adjust the amounts in this paragraph as provided in section 270C.22. The 
10.12 	statutory year is 2023. If the landlord and tenant have not dealt with each other at arm's 
10.13 	length and the commissioner determines that the gross rent charged was excessive, the 
10.14 	commissioner may adjust the gross rent to a reasonable amount for purposes of this section.
10.15 	(f) (g) "Homestead" has the meaning given in section 290A.03, subdivision 6.
10.16 	(g) (h) "Household" has the meaning given in section 290A.03, subdivision 4.
10.17 	(h) (i) "Household income" means all income received by all persons of a household in 
10.18 	a taxable year while members of the household, other than income of a dependent.
10.19 	(i) (j) "Income" means adjusted gross income, minus:
10.20 	(1) for the taxpayer's first dependent, the exemption amount multiplied by 1.4 the 
10.21 	taxpayer's combined exemption amount; and
10.22 	(2) for the taxpayer's second dependent, the exemption amount multiplied by 1.3; the 
10.23 	amount of discharge of indebtedness subtracted under section 290.0132, subdivision 36.
10.24 	(3) for the taxpayer's third dependent, the exemption amount multiplied by 1.2;
10.25 	(4) for the taxpayer's fourth dependent, the exemption amount multiplied by 1.1;
10.26 	(5) for the taxpayer's fifth dependent, the exemption amount; and
10.27 	(6) if the taxpayer or taxpayer's spouse had a disability or attained the age of 65 on or 
10.28 	before the close of the taxable year, the exemption amount.
10.29 	(j) (k) "Rent constituting property taxes" means 17 percent of the gross rent actually 
10.30 	paid in cash, or its equivalent, or the portion of rent paid in lieu of property taxes, in any 
10.31 	taxable year by a claimant for the right of occupancy of the claimant's Minnesota homestead 
11.1 	in the taxable year, and which rent constitutes the basis, in the succeeding taxable year of 
11.2 	a claim for a credit under this section by the claimant. If an individual occupies a homestead 
11.3 	with another person or persons not related to the individual as the individual's spouse or as 
11.4 	dependents, and the other person or persons are residing at the homestead under a rental or 
11.5 	lease agreement with the individual, the amount of rent constituting property tax for the 
11.6 	individual equals that portion not covered by the rental agreement.

11.7 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
11.8 	31, 2024.

11.9 	Sec. 11. Minnesota Statutes 2024, section 290.0695, subdivision 1, is amended to read:
11.10 		Subdivision 1.Definitions. (a) For purpose purposes of this section, the following terms 
11.11 	have the meanings given them.
11.12 	(b) "Credit certificate" means the certificate issued by the commissioner of transportation 
11.13 	under subdivision 3, paragraph (a).
11.14 	(b) (c) "Eligible taxpayer" means any railroad that is classified by the United States 
11.15 	Surface Transportation Board as a Class II or Class III railroad.
11.16 	(c) (d) "Eligible transferee" means any taxpayer subject to tax under this chapter or 
11.17 	chapter 297I.
11.18 	(e) "Eligible transferor" means an eligible taxpayer or a taxpayer to which the credit may 
11.19 	be passed through under subdivision 4.
11.20 	(d) (f) "Qualified railroad reconstruction or replacement expenditures" means gross 
11.21 	expenditures in the taxable year for maintenance, reconstruction, or replacement of railroad 
11.22 	infrastructure, including track, roadbed, bridges, industrial leads and sidings, and track-related 
11.23 	structures owned or leased by a Class II or Class III railroad in Minnesota as of January 1, 
11.24 	2021. Qualified railroad reconstruction or replacement expenditures also includes new 
11.25 	construction of industrial leads, switches, spurs and sidings and extensions of existing sidings 
11.26 	in Minnesota by a Class II or Class III railroad.
11.27 	(g) "Transfer credit certificate" means the certificate issued to a transferee by the 
11.28 	commissioner under subdivision 3, paragraph (d).

11.29 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
11.30 	after December 31, 2023.

12.1 	Sec. 12. Minnesota Statutes 2024, section 290.0695, subdivision 3, is amended to read:
12.2 		Subd. 3.Transferability Credit certificates; written agreement required; credit 
12.3 	certificate transferability. (a) To qualify for a credit under this section, an eligible taxpayer 
12.4 	must apply to the commissioner of transportation for a credit certificate. The application 
12.5 	for the credit certificate must be in the form and manner prescribed by the commissioner 
12.6 	of transportation, in consultation with the commissioner. If the application is approved, the 
12.7 	commissioner of transportation must issue the credit certificate to the eligible transferor 
12.8 	designated in the application within 30 days of receipt of the application. The credit certificate 
12.9 	must state, at a minimum, the number of miles of qualified railroad reconstruction or 
12.10 	replacement expenditures in the taxable year and the total amount of credit calculated under 
12.11 	the provisions of subdivision 2, paragraph (a). The commissioner of transportation must 
12.12 	provide a copy of the credit certificate to the commissioner of revenue. The commissioner 
12.13 	of transportation must not issue more than one credit certificate to an eligible transferor in 
12.14 	a taxable year.
12.15 	(b) By written agreement, an eligible taxpayertransferor may transfer the credit allowed 
12.16 	under this section by written agreement to an eligible transferee. The amount of the 
12.17 	transferred credit is limited to the unused, remaining portion of the credit as follows:
12.18 	(1) any amount of the credit allowed that is stated in the credit certificate before any of 
12.19 	the credit is claimed; or
12.20 	(2) the entire amount of the credit carryover in each of the five succeeding taxable years.
12.21 	(b) (c) The eligible taxpayertransferor and the eligible transferee must jointly file a copy 
12.22 	of the written transfer agreement with the commissioner within 30 days of the transfer. The 
12.23 	written agreement must contain the name, address, and taxpayer identification number of 
12.24 	the parties to the transfer; the taxable year the eligible taxpayer incurred the qualified 
12.25 	expenditures; the amount of credit being transferred; and the taxable year or years for which 
12.26 	the transferred credit may be claimed.
12.27 	(c) (d) The commissioner must issue a transfer credit certificate to the transferee within 
12.28 	30 days of the joint filing of a copy of the written transfer agreement with the commissioner.
12.29 	(d) In the case of an audit or assessment, the transferee is liable for repayment of credits 
12.30 	claimed in excess of the allowed amount.
12.31 	(e) An eligible transferor must not transfer a credit to an eligible transferee more than 
12.32 	once in a taxable year.

13.1 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
13.2 	after December 31, 2023.

13.3 	Sec. 13. Minnesota Statutes 2024, section 290.091, subdivision 2, is amended to read:
13.4 		Subd. 2.Definitions. For purposes of the tax imposed by this section, the following 
13.5 	terms have the meanings given.
13.6 	(a) "Alternative minimum taxable income" means the sum of the following for the taxable 
13.7 	year:
13.8 	(1) the taxpayer's federal alternative minimum taxable income as defined in section 
13.9 	55(b)(1)(D) of the Internal Revenue Code;
13.10 	(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum 
13.11 	taxable income, but excluding:
13.12 	(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
13.13 	(ii) the medical expense deduction;
13.14 	(iii) the casualty, theft, and disaster loss deduction; and
13.15 	(iv) the impairment-related work expenses of a person with a disability;
13.16 	(3) for depletion allowances computed under section 613A(c) of the Internal Revenue 
13.17 	Code, with respect to each property (as defined in section 614 of the Internal Revenue Code), 
13.18 	to the extent not included in federal alternative minimum taxable income, the excess of the 
13.19 	deduction for depletion allowable under section 611 of the Internal Revenue Code for the 
13.20 	taxable year over the adjusted basis of the property at the end of the taxable year (determined 
13.21 	without regard to the depletion deduction for the taxable year);
13.22 	(4) to the extent not included in federal alternative minimum taxable income, the amount 
13.23 	of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue 
13.24 	Code determined without regard to subparagraph (E);
13.25 	(5) to the extent not included in federal alternative minimum taxable income, the amount 
13.26 	of interest income as provided by section 290.0131, subdivision 2;
13.27 	(6) the amount of addition required by section 290.0131, subdivisions 9, 10, and 16;
13.28 	(7) the deduction allowed under section 199A of the Internal Revenue Code, to the extent 
13.29 	not included in the addition required under clause (6); and
14.1 	(8) to the extent not included in federal alternative minimum taxable income, the amount 
14.2 	of foreign-derived intangible income deducted under section 250 of the Internal Revenue 
14.3 	Code;
14.4 	less the sum of the amounts determined under the following:
14.5 	(i) interest income as defined in section 290.0132, subdivision 2;
14.6 	(ii) an overpayment of state income tax as provided by section 290.0132, subdivision 
14.7 	3, to the extent included in federal alternative minimum taxable income;
14.8 	(iii) the amount of investment interest paid or accrued within the taxable year on 
14.9 	indebtedness to the extent that the amount does not exceed net investment income, as defined 
14.10 	in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted 
14.11 	in computing federal adjusted gross income;
14.12 	(iv) amounts subtracted from federal taxable or adjusted gross income as provided by 
14.13 	section 290.0132, subdivisions 7, 9 to 15, 17, 21, 24, 26 to 29, 31, 34, andto 35 and 
14.14 	37;
14.15 	(v) the amount of the net operating loss allowed under section 290.095, subdivision 11, 
14.16 	paragraph (c); and
14.17 	(vi) the amount allowable as a Minnesota itemized deduction under section 290.0122, 
14.18 	subdivision 7.
14.19 	In the case of an estate or trust, alternative minimum taxable income must be computed 
14.20 	as provided in section 59(c) of the Internal Revenue Code, except alternative minimum 
14.21 	taxable income must be increased by the addition in section 290.0131, subdivision 16.
14.22 	(b) "Investment interest" means investment interest as defined in section 163(d)(3) of 
14.23 	the Internal Revenue Code.
14.24 	(c) "Net minimum tax" means the minimum tax imposed by this section.
14.25 	(d) "Regular tax" means the tax that would be imposed under this chapter (without regard 
14.26 	to this section, section 290.033, and section 290.032), reduced by the sum of the 
14.27 	nonrefundable credits allowed under this chapter.
14.28 	(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income 
14.29 	after subtracting the exemption amount determined under subdivision 3.

14.30 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
14.31 	31, 2024.

15.1 	Sec. 14. REPEALER.
 15.2 	Minnesota Statutes 2024, sections 13.4967, subdivision 2a; and 290.0679, are repealed.

15.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
15.4 	31, 2025.

15.5 	ARTICLE 2
15.6 	PROPERTY TAXES

15.7 	Section 1. Minnesota Statutes 2024, section 272.01, subdivision 2, is amended to read:
15.8 		Subd. 2.Exempt property used by private entity for profit. (a) When any real or 
15.9 	personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is leased, 
15.10 	loaned, or otherwise made available and used by a private individual, association, or 
15.11 	corporation in connection with a business conducted for profit, there shall be imposed a 
15.12 	tax, for the privilege of so using or possessing such real or personal property, in the same 
15.13 	amount and to the same extent as though the lessee or user was the owner of such property.
15.14 	(b) The tax imposed by this subdivision shall not apply to:
15.15 	(1) property leased or used as a concession in or relative to the use in whole or part of 
15.16 	a public park, market, fairgrounds, port authority, economic development authority 
15.17 	established under chapter 469, municipal auditorium, municipal parking facility, municipal 
15.18 	museum, or municipal stadium;
15.19 	(2) property of an airport owned by a city, town, county, or group thereof which is:
15.20 	(i) leased to or used by any person or entity including a fixed base operator; and
15.21 	(ii) used as a hangar for the storage or repair of aircraft or to provide aviation goods, 
15.22 	services, or facilities to the airport or general public;
15.23 	the exception from taxation provided in this clause does not apply to:
15.24 	(i) property located at an airport owned or operated by the Metropolitan Airports 
15.25 	Commission or by a city of over 50,000 population according to the most recent federal 
15.26 	census or such a city's airport authority; or
15.27 	(ii) hangars leased by a private individual, association, or corporation in connection with 
15.28 	a business conducted for profit other than an aviation-related business;
15.29 	(3) property constituting or used as a public pedestrian ramp or concourse in connection 
15.30 	with a public airport;
16.1 	(4) property constituting or used as a passenger check-in area or ticket sale counter, 
16.2 	boarding area, or luggage claim area in connection with a public airport but not the airports 
16.3 	owned or operated by the Metropolitan Airports Commission or cities of over 50,000 
16.4 	population or an airport authority therein. Real estate owned by a municipality in connection 
16.5 	with the operation of a public airport and leased or used for agricultural purposes is not 
16.6 	exempt;
16.7 	(5) property leased, loaned, or otherwise made available to a private individual, 
16.8 	corporation, or association under a cooperative farming agreement made pursuant to section 
16.9 	97A.135; or
16.10 	(6) property leased, loaned, or otherwise made available to a private individual, 
16.11 	corporation, or association under section 272.68, subdivision 4.; or
16.12 	(7) property owned by a nonprofit conservation organization that is leased, loaned, or 
16.13 	otherwise made available to a private individual, corporation, or association for grazing 
16.14 	activities that further the nonprofit conservation organization's conservation objectives for 
16.15 	the property.
16.16 	(c) Taxes imposed by this subdivision are payable as in the case of personal property 
16.17 	taxes and shall be assessed to the lessees or users of real or personal property in the same 
16.18 	manner as taxes assessed to owners of real or personal property, except that such taxes shall 
16.19 	not become a lien against the property. When due, the taxes shall constitute a debt due from 
16.20 	the lessee or user to the state, township, city, county, and school district for which the taxes 
16.21 	were assessed and shall be collected in the same manner as personal property taxes. If 
16.22 	property subject to the tax imposed by this subdivision is leased or used jointly by two or 
16.23 	more persons, each lessee or user shall be jointly and severally liable for payment of the 
16.24 	tax.
16.25 	(d) The tax on real property of the federal government, the state or any of its political 
16.26 	subdivisions that is leased, loaned, or otherwise made available to a private individual, 
16.27 	association, or corporation and becomes taxable under this subdivision or other provision 
16.28 	of law must be assessed and collected as a personal property assessment. The taxes do not 
16.29 	become a lien against the real property.

16.30 	EFFECTIVE DATE. This section is effective beginning with property taxes payable 
16.31 	in 2026.

17.1 	Sec. 2. Minnesota Statutes 2024, section 272.02, subdivision 19, is amended to read:
17.2 		Subd. 19.Property used to distribute electricity to farmers. Electric power distribution
17.3 	lines and their attachments and appurtenances systems, not including substations, or 
17.4 	transmission or generation equipment, that are used primarily for supplying electricity to 
17.5 	farmers at retail, are exempt.

17.6 	EFFECTIVE DATE. This section is effective beginning with assessment year 2025 
17.7 	and thereafter.

17.8 	Sec. 3. Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision to 
17.9 	read:
17.10 		Subd. 106.Certain property owned by an Indian Tribe. (a) Property is exempt that:
17.11 	(1) was classified as class 3a under section 273.13, subdivision 24, for taxes payable in 
17.12 	2025;
17.13 	(2) is located in a city of the first class with a population greater than 400,000 as of the 
17.14 	2020 federal census;
17.15 	(3) was on January 1, 2024, and is for the current assessment, owned by a federally 
17.16 	recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota; 
17.17 	and
17.18 	(4) is used exclusively for Tribal purposes or institutions of purely public charity as 
17.19 	defined in subdivision 7.
17.20 	(b) Property that qualifies for the exemption under this subdivision is limited to one 
17.21 	parcel that does not exceed 40,000 square feet. Property used for single-family housing, 
17.22 	market-rate apartments, agriculture, or forestry does not qualify for this exemption.

17.23 	EFFECTIVE DATE. This section is effective beginning with assessment year 2026.

17.24 	Sec. 4. Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision to 
17.25 	read:
17.26 		Subd. 107.Certain property owned by an Indian Tribe. Property is exempt that:
17.27 	(1) was classified as class 2b under section 273.13, subdivision 23, for taxes payable in 
17.28 	2025;
17.29 	(2) is located within a county with a population greater than 5,580 but less than 5,620 
17.30 	according to the 2020 federal census;
18.1 	(3) is located in an unorganized territory with a population less than 800 according to 
18.2 	the 2020 federal census; and
18.3 	(4) was on January 2, 2023, and is for the current assessment, owned by a federally 
18.4 	recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota.

18.5 	EFFECTIVE DATE. This section is effective beginning with assessment year 2026.

18.6 	Sec. 5. Minnesota Statutes 2024, section 273.124, subdivision 8, is amended to read:
18.7 		Subd. 8.Homestead owned by or leased to family farm corporation, joint farm 
18.8 	venture, limited liability company, or partnership. (a) Each family farm corporation; 
18.9 	each joint family farm venture; and each limited liability company or partnership which 
18.10 	operates a family farm; is entitled to class 1b under section 273.13, subdivision 22, paragraph 
18.11 	(b), or class 2a assessment for one homestead occupied by a shareholder, member, or partner 
18.12 	thereof who is residing on the land, and actively engaged in farming of the land owned by 
18.13 	the family farm corporation, joint family farm venture, limited liability company, or 
18.14 	partnership. Homestead treatment applies even if:
18.15 	(1) legal title to the property is in the name of the family farm corporation, joint family 
18.16 	farm venture, limited liability company, or partnership, and not in the name of the person 
18.17 	residing on it; or
18.18 	(2) the family farm is operated by a family farm corporation, joint family farm venture, 
18.19 	partnership, or limited liability company other than the family farm corporation, joint family 
18.20 	farm venture, partnership, or limited liability company that owns the land, provided that:
18.21 	(i) the shareholder, member, or partner residing on and actively engaged in farming the 
18.22 	land is a shareholder, member, or partner of the family farm corporation, joint family farm 
18.23 	venture, partnership, or limited liability company that is operating the farm; and
18.24 	(ii) more than half of the shareholders, members, or partners of each family farm 
18.25 	corporation, joint family farm venture, partnership, or limited liability company are persons 
18.26 	or spouses of persons who are a qualifying relative under section 273.124, subdivision 1, 
18.27 	paragraphs (c) and (d).
18.28 	"Family farm corporation," "family farm," and "partnership operating a family farm" 
18.29 	have the meanings given in section 500.24, except that the number of allowable shareholders, 
18.30 	members, or partners under this subdivision shall not exceed 12 18. "Limited liability 
18.31 	company" has the meaning contained in sections 322C.0102, subdivision 12, and 500.24, 
18.32 	subdivision 2, paragraphs (l) and (m). "Joint family farm venture" means a cooperative 
19.1 	agreement among two or more farm enterprises authorized to operate a family farm under 
19.2 	section 500.24.
19.3 	(b) In addition to property specified in paragraph (a), any other residences owned by 
19.4 	family farm corporations, joint family farm ventures, limited liability companies, or 
19.5 	partnerships described in paragraph (a) which are located on agricultural land and occupied 
19.6 	as homesteads by its shareholders, members, or partners who are actively engaged in farming 
19.7 	on behalf of that corporation, joint farm venture, limited liability company, or partnership 
19.8 	must also be assessed as class 2a property or as class 1b property under section 273.13.
19.9 	(c) Agricultural property that is owned by a member, partner, or shareholder of a family 
19.10 	farm corporation or joint family farm venture, limited liability company operating a family 
19.11 	farm, or by a partnership operating a family farm and leased to the family farm corporation, 
19.12 	limited liability company, partnership, or joint farm venture, as defined in paragraph (a), is 
19.13 	eligible for classification as class 1b or class 2a under section 273.13, if the owner is actually 
19.14 	residing on the property, and is actually engaged in farming the land on behalf of that 
19.15 	corporation, joint farm venture, limited liability company, or partnership. This paragraph 
19.16 	applies without regard to any legal possession rights of the family farm corporation, joint 
19.17 	family farm venture, limited liability company, or partnership under the lease.
19.18 	(d) Nonhomestead agricultural property that is owned by a family farm corporation, 
19.19 	joint farm venture, limited liability company, or partnership; and located not farther than 
19.20 	four townships or cities, or combination thereof, from agricultural land that is owned, and 
19.21 	used for the purposes of a homestead by an individual who is a shareholder, member, or 
19.22 	partner of the corporation, venture, company, or partnership; is entitled to receive the first 
19.23 	tier homestead classification rate on any remaining market value in the first homestead class 
19.24 	tier that is in excess of the market value of the shareholder's, member's, or partner's class 2 
19.25 	agricultural homestead property, if the owner, or someone acting on the owner's behalf 
19.26 	notifies the county assessor by July 1 that the property may be eligible under this paragraph 
19.27 	for the current assessment year, for taxes payable in the following year. As used in this 
19.28 	paragraph, "agricultural property" means property classified as 2a under section 273.13, 
19.29 	along with any contiguous property classified as 2b under section 273.13, if the contiguous 
19.30 	2a and 2b properties are under the same ownership.

19.31 	EFFECTIVE DATE. This section is effective for homestead applications in 2025 and 
19.32 	thereafter.

20.1 	Sec. 6. Minnesota Statutes 2024, section 273.124, subdivision 14, is amended to read:
20.2 		Subd. 14.Agricultural homesteads; special provisions. (a) Real estate of less than ten 
20.3 	acres that is the homestead of its owner must be classified as class 2a under section 273.13, 
20.4 	subdivision 23, paragraph (a), if:
20.5 	(1) the parcel on which the house is located is contiguous on at least two sides to (i) 
20.6 	agricultural land, (ii) land owned or administered by the United States Fish and Wildlife 
20.7 	Service, or (iii) land administered by the Department of Natural Resources on which in lieu 
20.8 	taxes are paid under sections 477A.11 to 477A.14 or section 477A.17;
20.9 	(2) its owner also owns a noncontiguous parcel of agricultural land that is at least 20 
20.10 	acres;
20.11 	(3) the noncontiguous land is located not farther than four townships or cities, or a 
20.12 	combination of townships or cities from the homestead; and
20.13 	(4) the agricultural use value of the noncontiguous land and farm buildings is equal to 
20.14 	at least 50 percent of the market value of the house, garage, and one acre of land.
20.15 	Homesteads initially classified as class 2a under the provisions of this paragraph shall 
20.16 	remain classified as class 2a, irrespective of subsequent changes in the use of adjoining 
20.17 	properties, as long as the homestead remains under the same ownership, the owner owns a 
20.18 	noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use 
20.19 	value qualifies under clause (4). Homestead classification under this paragraph is limited 
20.20 	to property that qualified under this paragraph for the 1998 assessment.
20.21 	(b)(i) Agricultural property shall be classified as the owner's homestead, to the same 
20.22 	extent as other agricultural homestead property, if all of the following criteria are met:
20.23 	(1) the agricultural property consists of at least 40 acres including undivided government 
20.24 	lots and correctional 40's;
20.25 	(2) the owner, the owner's spouse, or a grandparent, grandchild, child, stepchild, sibling, 
20.26 	oruncle, aunt, nephew, niece, parent, or stepparent of the owner or of the owner's spouse, 
20.27 	is actively farming the agricultural property, either on the person's own behalf as an individual 
20.28 	or on behalf of a partnership operating a family farm, family farm corporation, joint family 
20.29 	farm venture, or limited liability company of which the person is a partner, shareholder, or 
20.30 	member;
20.31 	(3) both the owner of the agricultural property and the person who is actively farming 
20.32 	the agricultural property under clause (2), are Minnesota residents;
21.1 	(4) neither the owner nor the spouse of the owner claims another agricultural homestead 
21.2 	in Minnesota; and
21.3 	(5) neither the owner nor the person actively farming the agricultural property lives 
21.4 	farther than four townships or cities, or a combination of four townships or cities, from the 
21.5 	agricultural property, except that if the owner or the owner's spouse is required to live in 
21.6 	employer-provided housing, the owner or owner's spouse, whichever is actively farming 
21.7 	the agricultural property, may live more than four townships or cities, or combination of 
21.8 	four townships or cities from the agricultural property.
21.9 	The relationship under this paragraph may be either by blood or marriage.
21.10 	(ii) Property containing the residence of an owner who owns qualified property under 
21.11 	clause (i) shall be classified as part of the owner's agricultural homestead, if that property 
21.12 	is also used for noncommercial storage or drying of agricultural crops.
21.13 	(iii) As used in this paragraph, "agricultural property" means class 2a property and any 
21.14 	class 2b property that is contiguous to and under the same ownership as the class 2a property.
21.15 	(c) Noncontiguous land shall be included as part of a homestead under section 273.13, 
21.16 	subdivision 23, paragraph (a), only if the homestead is classified as class 2a and the detached 
21.17 	land is located in the same township or city, or not farther than four townships or cities or 
21.18 	combination thereof from the homestead. Any taxpayer of these noncontiguous lands must 
21.19 	notify the county assessor that the noncontiguous land is part of the taxpayer's homestead, 
21.20 	and, if the homestead is located in another county, the taxpayer must also notify the assessor 
21.21 	of the other county.
21.22 	(d) Agricultural land used for purposes of a homestead and actively farmed by a person 
21.23 	holding a vested remainder interest in it must be classified as a homestead under section 
21.24 	273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a, any other 
21.25 	dwellings on the land used for purposes of a homestead by persons holding vested remainder 
21.26 	interests who are actively engaged in farming the property, and up to one acre of the land 
21.27 	surrounding each homestead and reasonably necessary for the use of the dwelling as a home, 
21.28 	must also be assessed class 2a.
21.29 	(e) Agricultural land and buildings that were class 2a homestead property under section 
21.30 	273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain classified as 
21.31 	agricultural homesteads for subsequent assessments if:
21.32 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
21.33 	homestead as a result of the April 1997 floods;
22.1 	(2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, or 
22.2 	Wilkin;
22.3 	(3) the agricultural land and buildings remain under the same ownership for the current 
22.4 	assessment year as existed for the 1997 assessment year and continue to be used for 
22.5 	agricultural purposes;
22.6 	(4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles 
22.7 	of one of the parcels of agricultural land that is owned by the taxpayer; and
22.8 	(5) the owner notifies the county assessor that the relocation was due to the 1997 floods, 
22.9 	and the owner furnishes the assessor any information deemed necessary by the assessor in 
22.10 	verifying the change in dwelling. Further notifications to the assessor are not required if the 
22.11 	property continues to meet all the requirements in this paragraph and any dwellings on the 
22.12 	agricultural land remain uninhabited.
22.13 	(f) Agricultural land and buildings that were class 2a homestead property under section 
22.14 	273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain classified 
22.15 	agricultural homesteads for subsequent assessments if:
22.16 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
22.17 	homestead as a result of damage caused by a March 29, 1998, tornado;
22.18 	(2) the property is located in the county of Blue Earth, Brown, Cottonwood, Le Sueur, 
22.19 	Nicollet, Nobles, or Rice;
22.20 	(3) the agricultural land and buildings remain under the same ownership for the current 
22.21 	assessment year as existed for the 1998 assessment year;
22.22 	(4) the dwelling occupied by the owner is located in this state and is within 50 miles of 
22.23 	one of the parcels of agricultural land that is owned by the taxpayer; and
22.24 	(5) the owner notifies the county assessor that the relocation was due to a March 29, 
22.25 	1998, tornado, and the owner furnishes the assessor any information deemed necessary by 
22.26 	the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the 
22.27 	owner must notify the assessor by December 1, 1998. Further notifications to the assessor 
22.28 	are not required if the property continues to meet all the requirements in this paragraph and 
22.29 	any dwellings on the agricultural land remain uninhabited.
22.30 	(g) Agricultural property of a family farm corporation, joint family farm venture, family 
22.31 	farm limited liability company, or partnership operating a family farm as described under 
22.32 	subdivision 8 shall be classified homestead, to the same extent as other agricultural homestead 
22.33 	property, if all of the following criteria are met:
23.1 	(1) the property consists of at least 40 acres including undivided government lots and 
23.2 	correctional 40's;
23.3 	(2) a shareholder, member, or partner of that entity is actively farming the agricultural 
23.4 	property;
23.5 	(3) that shareholder, member, or partner who is actively farming the agricultural property 
23.6 	is a Minnesota resident;
23.7 	(4) neither that shareholder, member, or partner, nor the spouse of that shareholder, 
23.8 	member, or partner claims another agricultural homestead in Minnesota; and
23.9 	(5) that shareholder, member, or partner does not live farther than four townships or 
23.10 	cities, or a combination of four townships or cities, from the agricultural property.
23.11 	Homestead treatment applies under this paragraph even if:
23.12 	(i) the shareholder, member, or partner of that entity is actively farming the agricultural 
23.13 	property on the shareholder's, member's, or partner's own behalf; or
23.14 	(ii) the family farm is operated by a family farm corporation, joint family farm venture, 
23.15 	partnership, or limited liability company other than the family farm corporation, joint family 
23.16 	farm venture, partnership, or limited liability company that owns the land, provided that:
23.17 	(A) the shareholder, member, or partner of the family farm corporation, joint family 
23.18 	farm venture, partnership, or limited liability company that owns the land who is actively 
23.19 	farming the land is a shareholder, member, or partner of the family farm corporation, joint 
23.20 	family farm venture, partnership, or limited liability company that is operating the farm; 
23.21 	and
23.22 	(B) more than half of the shareholders, members, or partners of each family farm 
23.23 	corporation, joint family farm venture, partnership, or limited liability company are persons 
23.24 	or spouses of persons who are a qualifying relative under section 273.124, subdivision 1, 
23.25 	paragraphs (c) and (d).
23.26 	Homestead treatment applies under this paragraph for property leased to a family farm 
23.27 	corporation, joint farm venture, limited liability company, or partnership operating a family 
23.28 	farm if legal title to the property is in the name of an individual who is a member, shareholder, 
23.29 	or partner in the entity.
23.30 	(h) To be eligible for the special agricultural homestead under this subdivision, an initial 
23.31 	full application must be submitted to the county assessor where the property is located. 
23.32 	Owners and the persons who are actively farming the property shall be required to complete 
24.1 	only a one-page abbreviated version of the application in each subsequent year provided 
24.2 	that none of the following items have changed since the initial application:
24.3 	(1) the day-to-day operation, administration, and financial risks remain the same;
24.4 	(2) the owners and the persons actively farming the property continue to live within the 
24.5 	four townships or city criteria and are Minnesota residents;
24.6 	(3) the same operator of the agricultural property is listed with the Farm Service Agency;
24.7 	(4) a Schedule F or equivalent income tax form was filed for the most recent year;
24.8 	(5) the property's acreage is unchanged; and
24.9 	(6) none of the property's acres have been enrolled in a federal or state farm program 
24.10 	since the initial application.
24.11 	The owners and any persons who are actively farming the property must include the 
24.12 	appropriate Social Security numbers or individual taxpayer identification numbers, and sign 
24.13 	and date the application. If any of the specified information has changed since the full 
24.14 	application was filed, the owner must notify the assessor, and must complete a new 
24.15 	application to determine if the property continues to qualify for the special agricultural 
24.16 	homestead. The commissioner of revenue shall prepare a standard reapplication form for 
24.17 	use by the assessors.
24.18 	(i) Agricultural land and buildings that were class 2a homestead property under section 
24.19 	273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain classified 
24.20 	agricultural homesteads for subsequent assessments if:
24.21 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
24.22 	homestead as a result of damage caused by the August 2007 floods;
24.23 	(2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele, 
24.24 	Wabasha, or Winona;
24.25 	(3) the agricultural land and buildings remain under the same ownership for the current 
24.26 	assessment year as existed for the 2007 assessment year;
24.27 	(4) the dwelling occupied by the owner is located in this state and is within 50 miles of 
24.28 	one of the parcels of agricultural land that is owned by the taxpayer; and
24.29 	(5) the owner notifies the county assessor that the relocation was due to the August 2007 
24.30 	floods, and the owner furnishes the assessor any information deemed necessary by the 
24.31 	assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the 
24.32 	owner must notify the assessor by December 1, 2008. Further notifications to the assessor 
25.1 	are not required if the property continues to meet all the requirements in this paragraph and 
25.2 	any dwellings on the agricultural land remain uninhabited.
25.3 	(j) Agricultural land and buildings that were class 2a homestead property under section 
25.4 	273.13, subdivision 23, paragraph (a), for the 2008 assessment shall remain classified as 
25.5 	agricultural homesteads for subsequent assessments if:
25.6 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
25.7 	homestead as a result of the March 2009 floods;
25.8 	(2) the property is located in the county of Marshall;
25.9 	(3) the agricultural land and buildings remain under the same ownership for the current 
25.10 	assessment year as existed for the 2008 assessment year and continue to be used for 
25.11 	agricultural purposes;
25.12 	(4) the dwelling occupied by the owner is located in Minnesota and is within 50 miles 
25.13 	of one of the parcels of agricultural land that is owned by the taxpayer; and
25.14 	(5) the owner notifies the county assessor that the relocation was due to the 2009 floods, 
25.15 	and the owner furnishes the assessor any information deemed necessary by the assessor in 
25.16 	verifying the change in dwelling. Further notifications to the assessor are not required if the 
25.17 	property continues to meet all the requirements in this paragraph and any dwellings on the 
25.18 	agricultural land remain uninhabited.

25.19 	EFFECTIVE DATE. This section is effective beginning with assessment year 2026.

25.20 	Sec. 7. Minnesota Statutes 2024, section 273.13, subdivision 22, is amended to read:
25.21 		Subd. 22.Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and 
25.22 	(c), real estate which is residential and used for homestead purposes is class 1a. In the case 
25.23 	of a duplex or triplex in which one of the units is used for homestead purposes, the entire 
25.24 	property is deemed to be used for homestead purposes. The market value of class 1a property 
25.25 	must be determined based upon the value of the house, garage, and land.
25.26 	The first $500,000 of market value of class 1a property has a net classification rate of 
25.27 	one percent of its market value; and the market value of class 1a property that exceeds 
25.28 	$500,000 has a classification rate of 1.25 percent of its market value.
25.29 	(b) Class 1b property includes homestead real estate or homestead manufactured homes 
25.30 	used for the purposes of a homestead by:
25.31 	(1) any person who is blind as defined in section 256D.35, or the person who is blind 
25.32 	and the spouse of the person who is blind;
26.1 	(2) any person who is permanently and totally disabled or by the person with a disability 
26.2 	and the spouse of the person with a disability; or
26.3 	(3) the surviving spouse of a veteran who was permanently and totally disabled 
26.4 	homesteading a property classified under this paragraph for taxes payable in 2008.
26.5 	Property is classified and assessed under clause (2) only if the government agency or 
26.6 	income-providing source certifies, upon the request of the homestead occupant, that the 
26.7 	homestead occupant satisfies the disability requirements of this paragraph, and that the 
26.8 	property is not eligible for the valuation exclusion under subdivision 34.
26.9 	Property is classified and assessed under paragraph (b) only if the commissioner of 
26.10 	revenue or the county assessor certifies that the homestead occupant satisfies the requirements 
26.11 	of this paragraph.
26.12 	Permanently and totally disabled for the purpose of this subdivision means a condition 
26.13 	which is permanent in nature and totally incapacitates the person from working at an 
26.14 	occupation which brings the person an income. The first $50,000 market value of class 1b 
26.15 	property has a net classification rate of .45 percent of its market value. The remaining market 
26.16 	value of class 1b property is classified as class 1a or class 2a property, whichever is 
26.17 	appropriate.
26.18 	(c) Class 1c property is commercial use real and personal property that abuts public 
26.19 	water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by 
26.20 	the Department of Natural Resources, and is devoted to temporary and seasonal residential 
26.21 	occupancy for recreational purposes but not devoted to commercial purposes for more than 
26.22 	250 days in the year preceding the year of assessment, and that includes a portion used as 
26.23 	a homestead by the owner, which includes a dwelling occupied as a homestead by a 
26.24 	shareholder of a corporation that owns the resort, a partner in a partnership that owns the 
26.25 	resort, or a member of a limited liability company that owns the resort even if the title to 
26.26 	the homestead is held by the corporation, partnership, or limited liability company. For 
26.27 	purposes of this paragraph, property is devoted to a commercial purpose on a specific day 
26.28 	if any portion of the property, excluding the portion used exclusively as a homestead, is 
26.29 	used for residential occupancy and a fee is charged for residential occupancy. Class 1c 
26.30 	property must contain three or more rental units. A "rental unit" is defined as a cabin, 
26.31 	condominium, townhouse, sleeping room, or individual camping site equipped with water 
26.32 	and electrical hookups for recreational vehicles. Class 1c property must provide recreational 
26.33 	activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill 
26.34 	or cross-country ski equipment; provide marina services, launch services, or guide services; 
27.1 	or sell bait and fishing tackle. Any unit in which the right to use the property is transferred 
27.2 	to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies 
27.3 	for class 1c even though it may remain available for rent. A camping pad offered for rent 
27.4 	by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of 
27.5 	the rental agreement, as long as the use of the camping pad does not exceed 250 days. If 
27.6 	the same owner owns two separate parcels that are located in the same township, and one 
27.7 	of those properties is classified as a class 1c property and the other would be eligible to be 
27.8 	classified as a class 1c property if it was used as the homestead of the owner, both properties 
27.9 	will be assessed as a single class 1c property; for purposes of this sentence, properties are 
27.10 	deemed to be owned by the same owner if each of them is owned by a limited liability 
27.11 	company, and both limited liability companies have the same membership. The portion of 
27.12 	the property used as a homestead is class 1a property under paragraph (a). The remainder 
27.13 	of the property is classified as follows: the first $600,000 $1,500,000 of market value is tier 
27.14 	I, the next $1,700,000 $3,000,000 of market value is tier II, and any remaining market value 
27.15 	is tier III. The classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; 
27.16 	and tier III, 1.25 percent. Owners of real and personal property devoted to temporary and 
27.17 	seasonal residential occupancy for recreation purposes in which all or a portion of the 
27.18 	property was devoted to commercial purposes for not more than 250 days in the year 
27.19 	preceding the year of assessment desiring classification as class 1c, must submit a declaration 
27.20 	to the assessor designating the cabins or units occupied for 250 days or less in the year 
27.21 	preceding the year of assessment by January 15 of the assessment year. Those cabins or 
27.22 	units and a proportionate share of the land on which they are located must be designated as 
27.23 	class 1c as otherwise provided. The remainder of the cabins or units and a proportionate 
27.24 	share of the land on which they are located must be designated as class 3a commercial. The 
27.25 	owner of property desiring designation as class 1c property must provide guest registers or 
27.26 	other records demonstrating that the units for which class 1c designation is sought were not 
27.27 	occupied for more than 250 days in the year preceding the assessment if so requested. The 
27.28 	portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center 
27.29 	or meeting room, and (5) other nonresidential facility operated on a commercial basis not 
27.30 	directly related to temporary and seasonal residential occupancy for recreation purposes 
27.31 	does not qualify for class 1c.
27.32 	(d) Class 1d property includes structures that meet all of the following criteria:
27.33 	(1) the structure is located on property that is classified as agricultural property under 
27.34 	section 273.13, subdivision 23;
28.1 	(2) the structure is occupied exclusively by seasonal farm workers during the time when 
28.2 	they work on that farm, and the occupants are not charged rent for the privilege of occupying 
28.3 	the property, provided that use of the structure for storage of farm equipment and produce 
28.4 	does not disqualify the property from classification under this paragraph;
28.5 	(3) the structure meets all applicable health and safety requirements for the appropriate 
28.6 	season; and
28.7 	(4) the structure is not salable as residential property because it does not comply with 
28.8 	local ordinances relating to location in relation to streets or roads.
28.9 	The market value of class 1d property has the same classification rates as class 1a property 
28.10 	under paragraph (a).

28.11 	EFFECTIVE DATE. This section is effective beginning with assessment year 2026.

28.12 	Sec. 8. Minnesota Statutes 2024, section 273.38, is amended to read:
28.13 	273.38 PERCENTAGE OF ASSESSMENTS; EXCEPTIONS.
28.14 	The distribution lines and the attachments and appurtenances thereto systems, not 
28.15 	including substations, or transmission or generation equipment, of cooperative associations 
28.16 	organized under the provisions of Laws 1923, chapter 326, and laws amendatory thereof 
28.17 	and supplemental thereto, and engaged in the electrical heat, light and power business, upon 
28.18 	a mutual, nonprofit and cooperative plan, shall be assessed and taxed as provided in sections 
28.19 	273.40 and 273.41.

28.20 	EFFECTIVE DATE. This section is effective beginning with assessment year 2025 
28.21 	and thereafter.

28.22 	Sec. 9. Minnesota Statutes 2024, section 273.41, is amended to read:
28.23 	273.41 AMOUNT OF TAX; DISTRIBUTION.
28.24 	There is hereby imposed upon each such cooperative association on December 31 of 
28.25 	each year a tax of $10 for each 100 members, or fraction thereof, of such association. The 
28.26 	tax, when paid, shall be in lieu of all personal property taxes, state, county, or local, upon
28.27 	distribution lines and the attachments and appurtenances thereto of such associations that 
28.28 	part of the association's distribution system, not including substations, or transmission or 
28.29 	generation equipment, located in rural areas. The tax shall be payable on or before March 
28.30 	1 of the next succeeding year, to the commissioner of revenue. If the tax, or any portion 
28.31 	thereof, is not paid within the time herein specified for the payment thereof, there shall be 
28.32 	added thereto a specific penalty equal to ten percent of the amount so remaining unpaid. 
29.1 	Such penalty shall be collected as part of said tax, and the amount of said tax not timely 
29.2 	paid, together with said penalty, shall bear interest at the rate specified in section 270C.40
29.3 	from the time such tax should have been paid until paid. The commissioner shall deposit 
29.4 	the amount so received in the general fund of the state treasury.

29.5 	EFFECTIVE DATE. This section is effective beginning with assessment year 2025 
29.6 	and thereafter.

29.7 	Sec. 10. Minnesota Statutes 2024, section 290A.03, subdivision 3, is amended to read:
29.8 		Subd. 3.Income. (a) "Income" means the sum of the following:
29.9 	(1) federal adjusted gross income as defined in the Internal Revenue Code; and
29.10 	(2) the sum of the following amounts to the extent not included in clause (1):
29.11 	(i) all nontaxable income;
29.12 	(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, 
29.13 	paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss 
29.14 	carryover allowed under section 469(b) of the Internal Revenue Code;
29.15 	(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a 
29.16 	solvent individual excluded from gross income under section 108(g) of the Internal Revenue 
29.17 	Code;
29.18 	(iv) cash public assistance and relief;
29.19 	(v) any pension or annuity (including railroad retirement benefits, all payments received 
29.20 	under the federal Social Security Act, Supplemental Security Income, and veterans benefits), 
29.21 	which was not exclusively funded by the claimant or spouse, or which was funded exclusively 
29.22 	by the claimant or spouse and which funding payments were excluded from federal adjusted 
29.23 	gross income in the years when the payments were made;
29.24 	(vi) interest received from the federal or a state government or any instrumentality or 
29.25 	political subdivision thereof;
29.26 	(vii) workers' compensation;
29.27 	(viii) nontaxable strike benefits;
29.28 	(ix) the gross amounts of payments received in the nature of disability income or sick 
29.29 	pay as a result of accident, sickness, or other disability, whether funded through insurance 
29.30 	or otherwise;
30.1 	(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 
30.2 	1986, as amended through December 31, 1995;
30.3 	(xi) contributions made by the claimant to an individual retirement account, including 
30.4 	a qualified voluntary employee contribution; simplified employee pension plan; 
30.5 	self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of 
30.6 	the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal 
30.7 	Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for 
30.8 	the claimant and spouse;
30.9 	(xii) to the extent not included in federal adjusted gross income, distributions received 
30.10 	by the claimant or spouse from a traditional or Roth style retirement account or plan;
30.11 	(xiii) nontaxable scholarship or fellowship grants;
30.12 	(xiv) alimony received to the extent not included in the recipient's income;
30.13 	(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue 
30.14 	Code;
30.15 	(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue 
30.16 	Code; and
30.17 	(xvii) the amount deducted for certain expenses of elementary and secondary school 
30.18 	teachers under section 62(a)(2)(D) of the Internal Revenue Code.
30.19 	In the case of an individual who files an income tax return on a fiscal year basis, the 
30.20 	term "federal adjusted gross income" shall mean federal adjusted gross income reflected in 
30.21 	the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced 
30.22 	by the amount of a net operating loss carryback or carryforward or a capital loss carryback 
30.23 	or carryforward allowed for the year.
30.24 	(b) "Income" does not include:
30.25 	(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
30.26 	(2) amounts of any pension or annuity which was exclusively funded by the claimant 
30.27 	or spouse and which funding payments were not excluded from federal adjusted gross 
30.28 	income in the years when the payments were made;
30.29 	(3) to the extent included in federal adjusted gross income, amounts contributed by the 
30.30 	claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed 
30.31 	the retirement base amount reduced by the amount of contributions excluded from federal 
30.32 	adjusted gross income, but not less than zero;
31.1 	(4) surplus food or other relief in kind supplied by a governmental agency;
31.2 	(5) relief granted under this chapter;
31.3 	(6) child support payments received under a temporary or final decree of dissolution or 
31.4 	legal separation;
31.5 	(7) restitution payments received by eligible individuals and excludable interest as 
31.6 	defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, 
31.7 	Public Law 107-16;
31.8 	(8) alimony paid; or
31.9 	(9) veterans disability compensation paid under title 38 of the United States Code; or
31.10 	(10) to the extent included in federal adjusted gross income, the amount of discharge of 
31.11 	indebtedness awarded to the claimant under section 332.74, subdivision 3.
31.12 	(c) The sum of the following amounts may be subtracted from income:
31.13 	(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
31.14 	(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
31.15 	(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
31.16 	(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
31.17 	(5) for the claimant's fifth dependent, the exemption amount; and
31.18 	(6) if the claimant or claimant's spouse had a disability or attained the age of 65 on or 
31.19 	before December 31 of the year for which the taxes were levied, the exemption amount.
31.20 	(d) For purposes of this subdivision, the following terms have the meanings given:
31.21 	(1) "exemption amount" means the exemption amount under section 290.0121, 
31.22 	subdivision 1, paragraph (b), for the taxable year for which the income is reported;
31.23 	(2) "retirement base amount" means the deductible amount for the taxable year for the 
31.24 	claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for 
31.25 	inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard 
31.26 	to whether the claimant or spouse claimed a deduction; and
31.27 	(3) "traditional or Roth style retirement account or plan" means retirement plans under 
31.28 	sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.

31.29 	EFFECTIVE DATE. This section is effective beginning with property taxes payable 
31.30 	in 2026.

32.1 	ARTICLE 3
32.2 	AIDS AND CREDITS

32.3 	Section 1. Laws 2023, chapter 64, article 4, section 27, is amended by adding a subdivision 
32.4 	to read:
32.5 		Subd. 9.Report. (a) By January 15, 2026, each: (1) local unit that receives aid in an 
32.6 	amount greater than $10,000; (2) county; and (3) Tribal government must report the following 
32.7 	information to the commissioner of public safety in the form and manner approved by that 
32.8 	commissioner:
32.9 	(i) the amount of aid received; and
32.10 	(ii) the ways in which the aid was used or is intended to be used.
32.11 	(b) By February 15, 2026, the commissioner of public safety must compile the information 
32.12 	received from counties, Tribal governments, or local units pursuant to paragraph (a) and 
32.13 	submit the compiled data in a report to the chairs and ranking minority members of the 
32.14 	legislative committees and divisions with jurisdiction over public safety finance and policy 
32.15 	and taxes and property taxes. The report must comply with the requirements of Minnesota 
32.16 	Statutes, sections 3.195 and 3.197.

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

32.18 	Sec. 2. 2023 AID PENALTY FORGIVENESS; CITY OF STEWART.
 32.19 	Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Stewart 
32.20 	must receive its aid payment for calendar year 2023 under Minnesota Statutes, section 
32.21 	477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, 
32.22 	provided that the state auditor certifies to the commissioner of revenue that the state auditor 
32.23 	received the annual financial reporting form for 2022 from the city by June 1, 2025. The 
32.24 	commissioner of revenue must make a payment of $87,501.50 to the city of Stewart by June 
32.25 	30, 2025. An amount sufficient to pay aid under this section is appropriated in fiscal year 
32.26 	2025 from the general fund to the commissioner of revenue. This is a onetime appropriation.

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

33.1 	ARTICLE 4
33.2 	PUBLIC FINANCE

33.3 	Section 1. Minnesota Statutes 2024, section 446A.086, subdivision 1, is amended to read:
33.4 		Subdivision 1.Definitions. (a) As used in this section, the following terms have the 
33.5 	meanings given.
33.6 	(b) "Authority" means the Minnesota Public Facilities Authority.
33.7 	(c) "Commissioner" means the commissioner of management and budget.
33.8 	(d) "Debt obligation" means:
33.9 	(1) a general obligation bond or note issued by a county, a bond or note to which the 
33.10 	general obligation of a county is pledged under section 469.034, subdivision 2, or a bond 
33.11 	or note payable from a county lease obligation under section 641.24, to provide funds for 
33.12 	the construction of:
33.13 	(i) jails;
33.14 	(ii) correctional facilities;
33.15 	(iii) law enforcement facilities;
33.16 	(iv) a court house or justice center, if connected to a jail, correctional facility, or other 
33.17 	law enforcement facility;
33.18 	(iv) (v) social services and human services facilities;
33.19 	(v) (vi) solid waste facilities; or
33.20 	(vi) (vii) qualified housing development projects as defined in section 469.034, 
33.21 	subdivision 2; or
33.22 	(2) a general obligation bond or note issued by a governmental unit to provide funds for 
33.23 	the construction, improvement, or rehabilitation of:
33.24 	(i) wastewater facilities;
33.25 	(ii) drinking water facilities;
33.26 	(iii) stormwater facilities; or
33.27 	(iv) any publicly owned building or infrastructure improvement that has received partial 
33.28 	funding from grants awarded by the commissioner of employment and economic development 
33.29 	related to redevelopment, contaminated site cleanup, bioscience, small cities development 
34.1 	programs, and rural business infrastructure programs, for which bonds are issued by the 
34.2 	authority under section 446A.087.
34.3 	(e) "Governmental unit" means a county or a statutory or home rule charter city.

34.4 	Sec. 2. Minnesota Statutes 2024, section 469.104, is amended to read:
34.5 	469.104 SECTIONS THAT APPLY IF FEDERAL LIMIT APPLIES.
34.6 	Sections 474A.01 to 474A.21 apply to obligations issued under sections 469.090 to 
34.7 	469.108 that are limited required by federal tax law as defined in section 474A.02, 
34.8 	subdivision 8 to obtain an allocation of volume cap.

34.9 	Sec. 3. Minnesota Statutes 2024, section 474A.091, subdivision 2, is amended to read:
34.10 		Subd. 2.Application for residential rental projects. (a) Issuers may apply for an 
34.11 	allocation for residential rental bonds under this section by submitting to the department an 
34.12 	application on forms provided by the department accompanied by:
34.13 	(1) a preliminary resolution;
34.14 	(2) a statement of bond counsel that the proposed issue of obligations requires an 
34.15 	allocation under this chapter and the Internal Revenue Code;
34.16 	(3) an application deposit in the amount of two percent of the requested allocation;
34.17 	(4) a sworn statement from the applicant identifying the project as a preservation project, 
34.18 	30 percent AMI residential rental project, 50 percent AMI residential rental project, 100 
34.19 	percent LIHTC project, 20 percent LIHTC project, or any other residential rental project; 
34.20 	and
34.21 	(5) a certification from the applicant or its accountant stating that the requested allocation 
34.22 	does not exceed the aggregate bond limitation.
34.23 	The issuer must pay the application deposit to the Department of Management and Budget. 
34.24 	An entitlement issuer may not apply for an allocation for residential rental project bonds 
34.25 	under this section unless it has either permanently issued bonds equal to the amount of its 
34.26 	entitlement allocation for the current year plus any amount carried forward from previous 
34.27 	years or returned for reallocation all of its unused entitlement allocation. For purposes of 
34.28 	this subdivision, its entitlement allocation includes an amount obtained under section 
34.29 	474A.04, subdivision 6.
34.30 	(b) An issuer that receives an allocation under this subdivision must permanently issue 
34.31 	obligations equal to all or a portion of the allocation received on or before the earlier of: (i)
35.1 	180 days of the allocation, or (ii) the last business day of December. If an issuer that receives 
35.2 	an allocation under this subdivision does not permanently issue obligations equal to all or 
35.3 	a portion of the allocation received within the time period provided in this paragraph or 
35.4 	returns the allocation to the commissioner, the amount of the allocation is canceled and 
35.5 	returned for reallocation through the unified pool.
35.6 	(c) The Minnesota Housing Finance Agency may apply for and receive an allocation 
35.7 	under this section without submitting an application deposit.

35.8 	Sec. 4. Minnesota Statutes 2024, section 474A.091, subdivision 2a, is amended to read:
35.9 		Subd. 2a.Application for all other types of qualified bonds. (a) Issuers may apply 
35.10 	for an allocation for all types of qualified bonds other than residential rental bonds under 
35.11 	this section by submitting to the department an application on forms provided by the 
35.12 	department accompanied by:
35.13 	(1) a preliminary resolution;
35.14 	(2) a statement of bond counsel that the proposed issue of obligations requires an 
35.15 	allocation under this chapter and the Internal Revenue Code;
35.16 	(3) the type of qualified bonds to be issued;
35.17 	(4) an application deposit in the amount of two percent of the requested allocation; and
35.18 	(5) a public purpose scoring worksheet for manufacturing and enterprise zone 
35.19 	applications.
35.20 	The issuer must pay the application deposit to the Department of Management and Budget. 
35.21 	An entitlement issuer may not apply for an allocation for public facility bonds or mortgage 
35.22 	bonds under this section unless it has either permanently issued bonds equal to the amount 
35.23 	of its entitlement allocation for the current year plus any amount carried forward from 
35.24 	previous years or returned for reallocation all of its unused entitlement allocation. For 
35.25 	purposes of this subdivision, an entitlement allocation includes an amount obtained under 
35.26 	section 474A.04, subdivision 6.
35.27 	(b) An issuer that receives an allocation under this subdivision must permanently issue 
35.28 	obligations equal to all or a portion of the allocation received on or before the earlier of: (i)
35.29 	120 days of the allocation, or (ii) the last business day of December. If an issuer that receives 
35.30 	an allocation under this subdivision does not permanently issue obligations equal to all or 
35.31 	a portion of the allocation received within the time period provided in this paragraph or 
36.1 	returns the allocation to the commissioner, the amount of the allocation is canceled and 
36.2 	returned for reallocation through the unified pool.
36.3 	(c) Notwithstanding the restrictions imposed on entitlement issuers under this subdivision, 
36.4 	the Minnesota Housing Finance Agency may not receive an allocation for mortgage bonds 
36.5 	under this section prior to the first Monday in October, but may be awarded allocations for 
36.6 	mortgage bonds from the unified pool on or after the first Monday in October. The Minnesota 
36.7 	Housing Finance Agency, the Minnesota Office of Higher Education, and the Minnesota 
36.8 	Rural Finance Authority may apply for and receive an allocation under this section without 
36.9 	submitting an application deposit.

	ARTICLE 1	INCOME AND CORPORATE FRANCHISE TAXES........	Page.Ln 1.16	
	ARTICLE 2	PROPERTY TAXES........	Page.Ln 15.5	
	ARTICLE 3	AIDS AND CREDITS........	Page.Ln 32.1	
	ARTICLE 4	PUBLIC FINANCE........	Page.Ln 33.1	

APPENDIX 

Repealed Minnesota Statutes: S0132-1 

13.4967 OTHER TAX DATA CODED ELSEWHERE.
No active language found for: 13.4967.2a 

No active language found for: 290.0679