1.1 	A bill for an act
1.2 	relating to taxation; modifying individual income and corporate franchise taxes, 
1.3 	property taxes, sales and use taxes, excise taxes, local government aids, tax 
1.4 	increment financing provisions, local sales and use taxes, public finance provisions, 
1.5 	and other miscellaneous taxes and tax-related provisions; modifying the research 
1.6 	and development credit and making the credit partially refundable; modifying and 
1.7 	providing for income tax credits and subtractions; modifying provisions for the 
1.8 	political contribution refund; modifying property tax exemptions and classifications; 
1.9 	providing for land bank organizations; providing for June accelerated payments 
1.10 	of sales taxes by certain vendors; modifying the sales and use tax exemption for 
1.11 	data centers to remove the exemption for electricity; modifying payments under 
1.12 	the Sustainable Forest Incentive Act; modifying the appropriation for aquatic 
1.13 	invasive species aid; increasing the tax on cannabis products; eliminating local 
1.14 	cannabis aid; modifying provisions for the provider tax; repealing the controlled 
1.15 	substance tax; making related clarifying and technical changes; requiring and 
1.16 	modifying reports; modifying appropriations; appropriation money;amending 
1.17 	Minnesota Statutes 2024, sections 3.192; 3.8855, subdivisions 2, 3, 4, 5, 7, 8; 8.31, 
1.18 	subdivision 2c; 10A.02, subdivision 11b; 10A.322, subdivision 4; 16A.151, 
1.19 	subdivision 2; 37.31, subdivision 1; 41A.30, subdivision 5; 116U.27, subdivision 
1.20 	2; 270C.11, subdivision 4; 270C.445, subdivisions 3, 6; 272.02, subdivisions 7, 
1.21 	19, by adding subdivisions; 273.117; 273.128, subdivision 1; 273.13, subdivisions 
1.22 	22, 23; 273.38; 273.41; 279.37, subdivision 2; 289A.12, subdivision 18; 289A.20, 
1.23 	subdivision 4; 289A.60, subdivision 12, by adding a subdivision; 290.0132, 
1.24 	subdivisions 26, as amended, 34, by adding subdivisions; 290.0134, subdivision 
1.25 	20; 290.06, subdivision 23; 290.068, subdivision 3, by adding subdivisions; 
1.26 	290.0693, subdivisions 1, 4, 6, 8; 290.0695, subdivisions 1, 2, 3; 290.091, 
1.27 	subdivision 2; 290A.03, subdivision 3; 290A.19; 290C.07; 290C.10; 295.53, 
1.28 	subdivision 4a; 295.54, subdivision 2; 295.81, subdivisions 2, 10; 297A.68, 
1.29 	subdivision 42; 297A.71, subdivision 54; 297A.75, subdivisions 1, as amended, 
1.30 	2, 3; 297A.94; 297A.99, subdivision 10; 297A.995, subdivisions 2, 10; 297E.06, 
1.31 	subdivision 4; 297G.09, subdivision 10; 297I.20, subdivision 4; 373.40, subdivision 
1.32 	2; 446A.086, subdivisions 1, 2; 449.08; 462C.04, subdivision 2; 469.104; 469.154, 
1.33 	subdivision 4; 469.176, subdivision 4n; 469.1812, by adding a subdivision; 
1.34 	469.1813, subdivisions 1, 5, 6, by adding a subdivision; 474A.091, subdivisions 
1.35 	2, 2a; 475.521, subdivision 2; 477A.013, subdivision 1; 477A.19, subdivision 5; 
1.36 	609.902, subdivision 4; 641.23; Laws 1996, chapter 471, article 2, section 29, 
1.37 	subdivisions 1, as amended, 4, as amended; Laws 2010, chapter 389, article 7, 
1.38 	section 22, as amended; Laws 2013, chapter 143, article 9, section 21; Laws 2014, 
2.1 	chapter 308, article 6, section 9, as amended; Laws 2017, First Special Session 
2.2 	chapter 1, article 6, section 22; Laws 2023, chapter 1, sections 22; 28; proposing 
2.3 	coding for new law in Minnesota Statutes, chapter 8; repealing Minnesota Statutes 
2.4 	2024, sections 13.4967, subdivisions 2a, 5; 275.065, subdivision 3c; 276.04, 
2.5 	subdivision 2a; 290.0679; 297D.01; 297D.02; 297D.03; 297D.04; 297D.05; 
2.6 	297D.06; 297D.07; 297D.08; 297D.085; 297D.09; 297D.10; 297D.11; 297D.12; 
2.7 	297D.13; 477A.32.
2.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.9 	ARTICLE 1
2.10 	INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES

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

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

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

3.28 	EFFECTIVE DATE. This section is effective for contributions made after December 
3.29 	31, 2026.

4.1 	Sec. 3. Minnesota Statutes 2024, section 41A.30, subdivision 5, is amended to read:
4.2 		Subd. 5.Allocation limits. (a) Subject to additional rollover allocation as provided in 
4.3 	paragraph (b), for tax credits allowed under subdivision 2, the commissioner must not issue 
4.4 	credit certificates for more than $11,600,000 in total, allocated as follows:
4.5 	(1) $7,400,000 for fiscal year 2025; and
4.6 	(2) $2,100,000 for each of fiscal years 2026 and 2027.
4.7 	(b) If the entire amount authorized under paragraph (a) is not allocated in fiscal year 
4.8 	2025 or 2026, any remaining amount is available for allocation through fiscal year 2030 
4.9 	until the entire allocation has been made. Any portion of a fiscal year's credits that is not 
4.10 	allocated by the commissioner does not cancel and may be carried forward to subsequent 
4.11 	fiscal years until all credits have been allocated, except that the commissioner must not 
4.12 	issue any credit certificates for fiscal years beginning after June 30, 2030, and any unallocated 
4.13 	amounts cancel on that date.

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

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

6.23 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
6.24 	31, 2025.

6.25 	Sec. 5. Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision 
6.26 	to read:
6.27 		Subd. 36.Discharges of indebtedness; coerced debt. The amount of discharge of 
6.28 	indebtedness awarded to a claimant under section 332.74, subdivision 3, is a subtraction.

6.29 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
6.30 	31, 2024.

7.1 	Sec. 6. Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision 
7.2 	to read:
7.3 		Subd. 37.Consumer enforcement public compensation payments. The amount of 
7.4 	consumer enforcement public compensation received as a distribution to an eligible consumer 
7.5 	under section 8.37, subdivision 5, is a subtraction.

7.6 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
7.7 	31, 2024.

7.8 	Sec. 7. Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision 
7.9 	to read:
7.10 		Subd. 38.Student loan education assistance paid by critical access dental clinics. (a) 
7.11 	The amount of student loan educational assistance payments that is received from a critical 
7.12 	access dental clinic is a subtraction.
7.13 	(b) For the purposes of this subdivision, the following terms have the meanings given.
7.14 	(c) "Critical access dental clinic" means a dentist or dental clinic that is designated as a 
7.15 	critical access dental provider under section 256B.76, subdivision 4.
7.16 	(d) "Student loan educational assistance payments" means payments by an employer on 
7.17 	the education loan of an employee that are included in the definition of educational assistance 
7.18 	under section 127(c)(1)(B) of the Internal Revenue Code, disregarding the expiration of 
7.19 	that clause. Student loan educational assistance payments are limited to amounts in excess 
7.20 	of the limit in section 127(a)(2) of the Internal Revenue Code.

7.21 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
7.22 	31, 2025.

7.23 	Sec. 8. Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision 
7.24 	to read:
7.25 		Subd. 39.Foreign service pension; retirement pay. (a) Compensation received from 
7.26 	a pension or other retirement pay from the federal government for service in the foreign 
7.27 	service and established under United States Code, title 22, sections 4041 to 4069 and 4071, 
7.28 	is a subtraction.
7.29 	(b) The subtraction equals the product of:
7.30 	(1) the amount of compensation received under paragraph (a); and
8.1 	(2) the number of years of foreign service divided by the total number of years of civil 
8.2 	service for which the taxpayer receives pension income.
8.3 	(c) Any amount used to claim the subtraction in this subdivision must not be used to 
8.4 	claim the subtraction in subdivision 34.

8.5 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
8.6 	31, 2024.

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

10.3 	EFFECTIVE DATE. This section is effective for contributions made after December 
10.4 	31, 2026.

10.5 	Sec. 10. Minnesota Statutes 2024, section 290.068, subdivision 3, is amended to read:
10.6 		Subd. 3.Limitation; carryover. (a) The credit for taxable years beginning before January 
10.7 	1, 2025, shall not exceed the liability for tax.
10.8 	(b) If the amount of the credit allowed for the taxable year exceeds the liability for tax 
10.9 	of the taxpayer, but is allowed as a result of the liability for tax of other members of the 
10.10 	unitary group for the taxable year, the taxpayer must allocate the excess as a research credit 
10.11 	to another member of the unitary group.
10.12 	(b) (c) In the case of a corporation which is a partner in a partnership, the credit allowed 
10.13 	for the taxable year shall not exceed the lesser of the amount determined under paragraph 
10.14 	(a) (b) for the taxable year or an amount (separately computed with respect to the 
10.15 	corporation's interest in the trade or business or entity) equal to the amount of tax attributable 
10.16 	to that portion of taxable income which is allocable or apportionable to the corporation's 
10.17 	interest in the trade or business or entity.
10.18 	(c) (d) If the amount of the credit determined under this section for any taxable year 
10.19 	exceeds the limitation under paragraph paragraphs (a) or (b) to (c), including amounts 
10.20 	allocated to other members of the unitary group, and is not refunded under subdivision 3a, 
10.21 	the excess shall be a research credit carryover to each of the 15 succeeding taxable years. 
10.22 	The entire amount of the excess unused credit for the taxable year shall be carried first to 
10.23 	the earliest of the taxable years to which the credit may be carried and then to each successive 
10.24 	year to which the credit may be carried. The amount of the unused credit which may be 
10.25 	added under this clause shall not exceed the taxpayer's liability for tax less the research 
10.26 	credit for the taxable year.

10.27 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
10.28 	31, 2024.

10.29 	Sec. 11. Minnesota Statutes 2024, section 290.068, is amended by adding a subdivision 
10.30 	to read:
10.31 		Subd. 3a.Credit to be partially refundable. (a) If the amount of credit allowed in this 
10.32 	section for qualified research expenses incurred in taxable years beginning after December 
11.1 	31, 2024, exceeds the limitations in subdivision 3, paragraphs (a) to (c), including after the 
11.2 	credit amounts are allocated to other members of the unitary group, the taxpayer may elect 
11.3 	to receive a refund.
11.4 	(b) The refundable amount allowed under paragraph (a) is equal to the refundability rate 
11.5 	calculated under subdivision 3b multiplied by the excess, if any, of the allowed credit amount 
11.6 	under subdivision 1 for the current taxable year remaining after the liability for tax has been 
11.7 	reduced to zero.
11.8 	(c) Any amount not refunded under paragraph (a) is allowed as a carryover under 
11.9 	subdivision 3, paragraph (d).
11.10 	(d) An election under paragraph (a) is irrevocable for the taxable year.
11.11 	(e) This subdivision applies only to an allowed credit claimed on a tax return filed on 
11.12 	or before the due date under section 289A.18 or the extended due date under section 289A.19.

11.13 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
11.14 	31, 2024.

11.15 	Sec. 12. Minnesota Statutes 2024, section 290.068, is amended by adding a subdivision 
11.16 	to read:
11.17 		Subd. 3b.Determination of refundability rate. (a) For purposes of this section, the 
11.18 	refundability rate equals:
11.19 	(1) 19.2 percent for taxable years beginning after December 31, 2024, and before January 
11.20 	1, 2026; and
11.21 	(2) 25 percent for taxable years beginning after December 31, 2025, and before January 
11.22 	1, 2028.
11.23 	(b) For taxable years beginning after December 31, 2027, the refundability rate equals 
11.24 	the lesser of 25 percent or the rate determined under paragraph (c).
11.25 	(c) By December 15, 2027, and each year thereafter, the commissioner must determine 
11.26 	the refundability rate for the immediately succeeding taxable year based on the most recent 
11.27 	November forecast required under section 16A.103. If the commissioner determines that 
11.28 	the total amount of refunds paid under this section will exceed $25,000,000 for the 
11.29 	immediately succeeding taxable year, the commissioner must adjust the refundability rate 
11.30 	so the total amount of projected refunds paid in the immediately succeeding taxable year 
11.31 	will approximate $25,000,000 or less. The percentage must be rounded to the nearest whole 
12.1 	percentage point. The commissioner must publish the refundability rate on the department's 
12.2 	external website.

12.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
12.4 	31, 2024.

12.5 	Sec. 13. Minnesota Statutes 2024, section 290.068, is amended by adding a subdivision 
12.6 	to read:
12.7 		Subd. 8.Appropriation. An amount sufficient to pay the refunds required under this 
12.8 	section is appropriated to the commissioner from the general fund.

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

12.10 	Sec. 14. Minnesota Statutes 2024, section 290.0695, subdivision 1, is amended to read:
12.11 		Subdivision 1.Definitions. (a) For purpose purposes of this section, the following terms 
12.12 	have the meanings given them.
12.13 	(b) "Credit certificate" means the certificate issued by the commissioner of transportation 
12.14 	under subdivision 3, paragraph (a).
12.15 	(b) (c) "Eligible taxpayer" means any railroad that is classified by the United States 
12.16 	Surface Transportation Board as a Class II or Class III railroad.
12.17 	(c) (d) "Eligible transferee" means any taxpayer subject to tax under this chapter or 
12.18 	chapter 297I.
12.19 	(d) (e) "Qualified railroad reconstruction or replacement expenditures" means gross 
12.20 	expenditures in the taxable year for maintenance, reconstruction, or replacement of railroad 
12.21 	infrastructure, including track, roadbed, bridges, industrial leads and sidings, and track-related 
12.22 	structures owned or leased by a Class II or Class III railroad in Minnesota as of January 1, 
12.23 	2021. Qualified railroad reconstruction or replacement expenditures also includes new 
12.24 	construction of industrial leads, switches, spurs and sidings and extensions of existing sidings 
12.25 	in Minnesota by a Class II or Class III railroad.
12.26 	(f) "Transfer credit certificate" means the certificate issued to a transferee by the 
12.27 	commissioner under subdivision 3, paragraph (d).

12.28 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
12.29 	31, 2024.

13.1 	Sec. 15. Minnesota Statutes 2024, section 290.0695, subdivision 3, is amended to read:
13.2 		Subd. 3.Transferability Credit certificates; written agreement required; credit 
13.3 	certificate transferability. (a) To qualify for a credit under this section, an eligible taxpayer 
13.4 	must apply to the commissioner of transportation for a credit certificate. The application 
13.5 	for the credit certificate must be in the form and manner prescribed by the commissioner 
13.6 	of transportation, in consultation with the commissioner. If the application is approved, the 
13.7 	commissioner of transportation must issue the credit certificate to the eligible taxpayer 
13.8 	within 30 days of receipt of the application. The credit certificate must state the number of 
13.9 	miles of qualified railroad reconstruction or replacement expenditures in the taxable year 
13.10 	and the total amount of credit calculated under subdivision 2, paragraph (a). The 
13.11 	commissioner of transportation must provide a copy of the credit certificate to the 
13.12 	commissioner. The commissioner of transportation must not issue more than one credit 
13.13 	certificate to an eligible taxpayer in a taxable year.
13.14 	(b) By written agreement, an eligible taxpayer may transfer the credit allowed under 
13.15 	this section by written agreement to an eligible transferee. The amount of the transferred 
13.16 	credit is limited to the unused, remaining portion of the credit. as follows:
13.17 	(1) any amount of the credit allowed that is stated in the credit certificate before any of 
13.18 	the credit is claimed; or
13.19 	(2) the entire amount of the credit carryover in each of the five succeeding taxable years.
13.20 	(b) (c) The eligible taxpayer and the eligible transferee must jointly file a copy of the 
13.21 	written transfer agreement with the commissioner within 30 days of the transfer. The written 
13.22 	agreement must contain the name, address, and taxpayer identification number of the parties 
13.23 	to the transfer; the taxable year the eligible taxpayer incurred the qualified expenditures; 
13.24 	the amount of credit being transferred; and the taxable year or years for which the transferred 
13.25 	credit may be claimed.
13.26 	(c) (d) The commissioner must issue a transfer credit certificate to the transferee within 
13.27 	30 days of the joint filing of a copy of the written transfer agreement with the commissioner.
13.28 	(d) In the case of an audit or assessment, the transferee is liable for repayment of credits 
13.29 	claimed in excess of the allowed amount.
13.30 	(e) An eligible taxpayer must not transfer a credit to an eligible transferee more than 
13.31 	once in a taxable year.

13.32 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
13.33 	31, 2024.

14.1 	Sec. 16. Minnesota Statutes 2024, section 290.091, subdivision 2, is amended to read:
14.2 		Subd. 2.Definitions. For purposes of the tax imposed by this section, the following 
14.3 	terms have the meanings given.
14.4 	(a) "Alternative minimum taxable income" means the sum of the following for the taxable 
14.5 	year:
14.6 	(1) the taxpayer's federal alternative minimum taxable income as defined in section 
14.7 	55(b)(1)(D) of the Internal Revenue Code;
14.8 	(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum 
14.9 	taxable income, but excluding:
14.10 	(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
14.11 	(ii) the medical expense deduction;
14.12 	(iii) the casualty, theft, and disaster loss deduction; and
14.13 	(iv) the impairment-related work expenses of a person with a disability;
14.14 	(3) for depletion allowances computed under section 613A(c) of the Internal Revenue 
14.15 	Code, with respect to each property (as defined in section 614 of the Internal Revenue Code), 
14.16 	to the extent not included in federal alternative minimum taxable income, the excess of the 
14.17 	deduction for depletion allowable under section 611 of the Internal Revenue Code for the 
14.18 	taxable year over the adjusted basis of the property at the end of the taxable year (determined 
14.19 	without regard to the depletion deduction for the taxable year);
14.20 	(4) to the extent not included in federal alternative minimum taxable income, the amount 
14.21 	of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue 
14.22 	Code determined without regard to subparagraph (E);
14.23 	(5) to the extent not included in federal alternative minimum taxable income, the amount 
14.24 	of interest income as provided by section 290.0131, subdivision 2;
14.25 	(6) the amount of addition required by section 290.0131, subdivisions 9, 10, and 16;
14.26 	(7) the deduction allowed under section 199A of the Internal Revenue Code, to the extent 
14.27 	not included in the addition required under clause (6); and
14.28 	(8) to the extent not included in federal alternative minimum taxable income, the amount 
14.29 	of foreign-derived intangible income deducted under section 250 of the Internal Revenue 
14.30 	Code;
14.31 	less the sum of the amounts determined under the following:
15.1 	(i) interest income as defined in section 290.0132, subdivision 2;
15.2 	(ii) an overpayment of state income tax as provided by section 290.0132, subdivision 
15.3 	3, to the extent included in federal alternative minimum taxable income;
15.4 	(iii) the amount of investment interest paid or accrued within the taxable year on 
15.5 	indebtedness to the extent that the amount does not exceed net investment income, as defined 
15.6 	in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted 
15.7 	in computing federal adjusted gross income;
15.8 	(iv) amounts subtracted from federal taxable or adjusted gross income as provided by 
15.9 	section 290.0132, subdivisions 7, 9 to 15, 17, 21, 24, 26 to 29, 31, and 34, and 35 to 39;
15.10 	(v) the amount of the net operating loss allowed under section 290.095, subdivision 11, 
15.11 	paragraph (c); and
15.12 	(vi) the amount allowable as a Minnesota itemized deduction under section 290.0122, 
15.13 	subdivision 7.
15.14 	In the case of an estate or trust, alternative minimum taxable income must be computed 
15.15 	as provided in section 59(c) of the Internal Revenue Code, except alternative minimum 
15.16 	taxable income must be increased by the addition in section 290.0131, subdivision 16.
15.17 	(b) "Investment interest" means investment interest as defined in section 163(d)(3) of 
15.18 	the Internal Revenue Code.
15.19 	(c) "Net minimum tax" means the minimum tax imposed by this section.
15.20 	(d) "Regular tax" means the tax that would be imposed under this chapter (without regard 
15.21 	to this section, section 290.033, and section 290.032), reduced by the sum of the 
15.22 	nonrefundable credits allowed under this chapter.
15.23 	(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income 
15.24 	after subtracting the exemption amount determined under subdivision 3.

15.25 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
15.26 	31, 2024.

15.27 	Sec. 17. Minnesota Statutes 2024, section 290A.03, subdivision 3, is amended to read:
15.28 		Subd. 3.Income. (a) "Income" means the sum of the following:
15.29 	(1) federal adjusted gross income as defined in the Internal Revenue Code; and
15.30 	(2) the sum of the following amounts to the extent not included in clause (1):
16.1 	(i) all nontaxable income;
16.2 	(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, 
16.3 	paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss 
16.4 	carryover allowed under section 469(b) of the Internal Revenue Code;
16.5 	(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a 
16.6 	solvent individual excluded from gross income under section 108(g) of the Internal Revenue 
16.7 	Code;
16.8 	(iv) cash public assistance and relief;
16.9 	(v) any pension or annuity (including railroad retirement benefits, all payments received 
16.10 	under the federal Social Security Act, Supplemental Security Income, and veterans benefits), 
16.11 	which was not exclusively funded by the claimant or spouse, or which was funded exclusively 
16.12 	by the claimant or spouse and which funding payments were excluded from federal adjusted 
16.13 	gross income in the years when the payments were made;
16.14 	(vi) interest received from the federal or a state government or any instrumentality or 
16.15 	political subdivision thereof;
16.16 	(vii) workers' compensation;
16.17 	(viii) nontaxable strike benefits;
16.18 	(ix) the gross amounts of payments received in the nature of disability income or sick 
16.19 	pay as a result of accident, sickness, or other disability, whether funded through insurance 
16.20 	or otherwise;
16.21 	(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 
16.22 	1986, as amended through December 31, 1995;
16.23 	(xi) contributions made by the claimant to an individual retirement account, including 
16.24 	a qualified voluntary employee contribution; simplified employee pension plan; 
16.25 	self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of 
16.26 	the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal 
16.27 	Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for 
16.28 	the claimant and spouse;
16.29 	(xii) to the extent not included in federal adjusted gross income, distributions received 
16.30 	by the claimant or spouse from a traditional or Roth style retirement account or plan;
16.31 	(xiii) nontaxable scholarship or fellowship grants;
16.32 	(xiv) alimony received to the extent not included in the recipient's income;
17.1 	(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue 
17.2 	Code;
17.3 	(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue 
17.4 	Code; and
17.5 	(xvii) the amount deducted for certain expenses of elementary and secondary school 
17.6 	teachers under section 62(a)(2)(D) of the Internal Revenue Code.
17.7 	In the case of an individual who files an income tax return on a fiscal year basis, the 
17.8 	term "federal adjusted gross income" shall mean federal adjusted gross income reflected in 
17.9 	the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced 
17.10 	by the amount of a net operating loss carryback or carryforward or a capital loss carryback 
17.11 	or carryforward allowed for the year.
17.12 	(b) "Income" does not include:
17.13 	(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
17.14 	(2) amounts of any pension or annuity which was exclusively funded by the claimant 
17.15 	or spouse and which funding payments were not excluded from federal adjusted gross 
17.16 	income in the years when the payments were made;
17.17 	(3) to the extent included in federal adjusted gross income, amounts contributed by the 
17.18 	claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed 
17.19 	the retirement base amount reduced by the amount of contributions excluded from federal 
17.20 	adjusted gross income, but not less than zero;
17.21 	(4) surplus food or other relief in kind supplied by a governmental agency;
17.22 	(5) relief granted under this chapter;
17.23 	(6) child support payments received under a temporary or final decree of dissolution or 
17.24 	legal separation;
17.25 	(7) restitution payments received by eligible individuals and excludable interest as 
17.26 	defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, 
17.27 	Public Law 107-16;
17.28 	(8) alimony paid; or
17.29 	(9) veterans disability compensation paid under title 38 of the United States Code;
17.30 	(10) to the extent included in federal adjusted gross income, the amount of discharge of 
17.31 	indebtedness awarded to the claimant under section 332.74, subdivision 3; or
18.1 	(11) to the extent included in federal adjusted gross income, the amount of consumer 
18.2 	enforcement public compensation received as a distribution to an eligible consumer under 
18.3 	section 8.37, subdivision 5.
18.4 	(c) The sum of the following amounts may be subtracted from income:
18.5 	(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
18.6 	(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
18.7 	(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
18.8 	(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
18.9 	(5) for the claimant's fifth dependent, the exemption amount; and
18.10 	(6) if the claimant or claimant's spouse had a disability or attained the age of 65 on or 
18.11 	before December 31 of the year for which the taxes were levied, the exemption amount.
18.12 	(d) For purposes of this subdivision, the following terms have the meanings given:
18.13 	(1) "exemption amount" means the exemption amount under section 290.0121, 
18.14 	subdivision 1, paragraph (b), for the taxable year for which the income is reported;
18.15 	(2) "retirement base amount" means the deductible amount for the taxable year for the 
18.16 	claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for 
18.17 	inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard 
18.18 	to whether the claimant or spouse claimed a deduction; and
18.19 	(3) "traditional or Roth style retirement account or plan" means retirement plans under 
18.20 	sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.

18.21 	EFFECTIVE DATE. This section is effective for claims based on property taxes payable 
18.22 	in 2026 and thereafter.

18.23 	Sec. 18. CORRECTION OF ERRORS; CERTAIN RETIREMENT 
18.24 	CONTRIBUTIONS.
 18.25 	An annuity contract provider that receives a contribution from an individual to an 
18.26 	individual retirement plan on an annuity contract no later than the time prescribed by law 
18.27 	under section 219(f)(3) of the Internal Revenue Code, must treat the contribution as having 
18.28 	been made on account of the preceding taxable year. This section applies only if the annuity 
18.29 	contract provider receives notification from the individual indicating the tax year designation 
18.30 	for the contribution within three years from the original due date for filing the return for 
18.31 	that taxable year.

19.1 	EFFECTIVE DATE. This section is effective retroactively for contributions made in 
19.2 	calendar year 2023 and designated to apply to the tax year 2022 contribution limitation.

19.3 	Sec. 19. STIPEND PAYMENTS TO SEIU HEALTHCARE MINNESOTA & IOWA 
19.4 	BARGAINING UNIT MEMBERS.
 19.5 	(a) The commissioner of human services shall issue stipend payments to collective 
19.6 	bargaining unit members as required by the labor agreement between the state of Minnesota 
19.7 	and the Service Employees International Union (SEIU) Healthcare Minnesota & Iowa.
19.8 	(b) The definitions in Minnesota Statutes, section 290.01, apply to this section.
19.9 	(c) For purposes of this section, "subtraction" has the meaning given in Minnesota 
19.10 	Statutes, section 290.0132, subdivision 1, and the rules in that subdivision apply to this 
19.11 	section.
19.12 	(d) The amount of stipend payments received by SEIU Healthcare Minnesota & Iowa 
19.13 	collective bargaining unit members under this section is a subtraction.
19.14 	(e) The amount of stipend payments received by SEIU Healthcare Minnesota & Iowa 
19.15 	collective bargaining unit members under this section is excluded from alternative minimum 
19.16 	taxable income under Minnesota Statutes, section 290.091, and income as defined in 
19.17 	Minnesota Statutes, sections 290.0693, subdivision 1, paragraph (i), and 290A.03, subdivision 
19.18 	3.
19.19 	(f) Notwithstanding any law to the contrary, stipend payments under this section must 
19.20 	not be considered income, assets, or personal property for purposes of determining or 
19.21 	recertifying eligibility for:
19.22 	(1) child care assistance programs under Minnesota Statutes, chapter 142E;
19.23 	(2) general assistance, Minnesota supplemental aid, and food support under Minnesota 
19.24 	Statutes, chapter 256D;
19.25 	(3) housing support under Minnesota Statutes, chapter 256I;
19.26 	(4) the Minnesota family investment program under Minnesota Statutes, chapter 142G; 
19.27 	and
19.28 	(5) economic assistance programs under Minnesota Statutes, chapter 256P.
19.29 	(g) The commissioner of human services must not consider stipend payments under this 
19.30 	section as income or assets under Minnesota Statutes, section 256B.056, subdivision 1a, 
20.1 	paragraph (a); 3; or 3c, or for persons with eligibility determined under Minnesota Statutes, 
20.2 	section 256B.057, subdivision 3, 3a, or 3b.
20.3 	(h) If this section is enacted more than once during the 2025 first special session in 
20.4 	substantially the same form, this section prevails regardless of order of enactment.

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

20.6 	Sec. 20. REPEALER.
 20.7 	Minnesota Statutes 2024, sections 13.4967, subdivision 2a; and 290.0679, are repealed.

20.8 	EFFECTIVE DATE. This section is effective for assignments after December 31, 2025.

20.9 	ARTICLE 2
20.10 	PROPERTY TAXES

20.11 	Section 1. Minnesota Statutes 2024, section 272.02, subdivision 7, is amended to read:
20.12 		Subd. 7.Institutions of public charity. (a) Institutions of purely public charity that are 
20.13 	exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code 
20.14 	are exempt if they meet the requirements of this subdivision. In determining whether real 
20.15 	property is exempt under this subdivision, the following factors must be considered:
20.16 	(1) whether the stated purpose of the undertaking is to be helpful to others without 
20.17 	immediate expectation of material reward;
20.18 	(2) whether the institution of public charity is supported by material donations, gifts, or 
20.19 	government grants for services to the public in whole or in part;
20.20 	(3) whether a material number of the recipients of the charity receive benefits or services 
20.21 	at reduced or no cost, or whether the organization provides services to the public that alleviate 
20.22 	burdens or responsibilities that would otherwise be borne by the government;
20.23 	(4) whether the income received, including material gifts and donations, produces a 
20.24 	profit to the charitable institution that is not distributed to private interests;
20.25 	(5) whether the beneficiaries of the charity are restricted or unrestricted, and, if restricted, 
20.26 	whether the class of persons to whom the charity is made available is one having a reasonable 
20.27 	relationship to the charitable objectives; and
20.28 	(6) whether dividends, in form or substance, or assets upon dissolution, are not available 
20.29 	to private interests.
21.1 	A charitable organization must satisfy the factors in clauses (1) to (6) for its property to 
21.2 	be exempt under this subdivision, unless there is a reasonable justification for failing to 
21.3 	meet the factors in clause (2), (3), or (5), and the organization provides to the assessor the 
21.4 	factual basis for that justification. If there is reasonable justification for failing to meet the 
21.5 	factors in clause (2), (3), or (5), an organization is a purely public charity under this 
21.6 	subdivision without meeting those factors. After an exemption is properly granted under 
21.7 	this subdivision, it will remain in effect unless there is a material change in facts.
21.8 	(b) For purposes of this subdivision, a grant is a written instrument or electronic document 
21.9 	defining a legal relationship between a granting agency and a grantee when the principal 
21.10 	purpose of the relationship is to transfer cash or something of value to the grantee to support 
21.11 	a public purpose authorized by law in a general manner instead of acquiring by professional 
21.12 	or technical contract, purchase, lease, or barter property or services for the direct benefit or 
21.13 	use of the granting agency.
21.14 	(c) Rental housing property does not qualify for an exemption under this subdivision 
21.15 	unless: (1) the use of the rental property is in furtherance of the tax-exempt charitable 
21.16 	purpose of the organization; and (2) the use of the rental property does not further the 
21.17 	tax-exempt charitable purpose of the organization solely by providing rental housing to 
21.18 	persons or families on the basis of the income characteristics of those persons or families.
21.19 	(c) (d) In determining whether rental housing property qualifies for exemption under 
21.20 	this subdivision, the following are not gifts or donations to the owner of the rental housing:
21.21 	(1) rent assistance provided by the government to or on behalf of tenants; and
21.22 	(2) financing assistance or tax credits provided by the government to the owner on 
21.23 	condition that specific units or a specific quantity of units be set aside for persons or families 
21.24 	with certain income characteristics.

21.25 	EFFECTIVE DATE. This section is effective for property taxes payable in 2026 and 
21.26 	thereafter.

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

21.32 	EFFECTIVE DATE. This section is effective beginning with assessment year 2025 
21.33 	and thereafter.

22.1 	Sec. 3. Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision to 
22.2 	read:
22.3 		Subd. 106.Certain property owned by an Indian Tribe. (a) Property is exempt that:
22.4 	(1) was classified as class 3a under section 273.13, subdivision 24, for taxes payable in 
22.5 	2025;
22.6 	(2) is located in a city of the first class with a population greater than 400,000 as of the 
22.7 	2020 federal census;
22.8 	(3) was on January 1, 2024, and is for the current assessment, owned by a federally 
22.9 	recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota; 
22.10 	and
22.11 	(4) is used exclusively for Tribal purposes or institutions of purely public charity as 
22.12 	defined in subdivision 7.
22.13 	(b) For the purposes of this subdivision, a "Tribal purpose" means a public purpose 
22.14 	defined in subdivision 8 and includes noncommercial Tribal government activities. Property 
22.15 	that qualifies for the exemption under this subdivision is limited to one parcel that does not 
22.16 	exceed 40,000 square feet. Property used for single-family housing, market-rate apartments, 
22.17 	agriculture, or forestry does not qualify for this exemption.

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

22.19 	Sec. 4. Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision to 
22.20 	read:
22.21 		Subd. 107.Certain property owned by an Indian Tribe. (a) Property is exempt that:
22.22 	(1) was classified as class 2b under section 273.13, subdivision 23, for taxes payable in 
22.23 	2025;
22.24 	(2) is located within a county with a population greater than 5,580 but less than 5,620 
22.25 	according to the 2020 federal census;
22.26 	(3) is located in an unorganized territory with a population less than 800 according to 
22.27 	the 2020 federal census; and
22.28 	(4) was on January 2, 2023, and is for the current assessment, owned by a federally 
22.29 	recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota.
22.30 	(b) Property that qualifies for exemption under this subdivision is limited to no more 
22.31 	than five parcels.

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

23.2 	Sec. 5. Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision to 
23.3 	read:
23.4 		Subd. 108.Certain property owned by an Indian Tribe. (a) Property is exempt that:
23.5 	(1) is located in a city of the first class with a population greater than 400,000 as of the 
23.6 	2020 federal census;
23.7 	(2) was on January 1, 2025, and is for the current assessment, owned by a federally 
23.8 	recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota; 
23.9 	and
23.10 	(3) contains a mixed-use development constructed after January 1, 2024, that includes 
23.11 	space used exclusively for noncommercial Tribal government activities.
23.12 	(b) Any portion of the property used for housing, parking facilities, agriculture, or forestry 
23.13 	does not qualify for this exemption.

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

23.15 	Sec. 6. Minnesota Statutes 2024, section 273.117, is amended to read:
23.16 	273.117 CONSERVATION PROPERTY TAX VALUATION.
23.17 	(a) The value of real property which that is subject to a conservation restriction or 
23.18 	easement shall must not be reduced by the assessor if:
23.19 	(a) (1) the restriction or easement is for a conservation purpose and is recorded on the 
23.20 	property; and
23.21 	(b) (2) the property is being used in accordance with the terms of the conservation 
23.22 	restriction or easement.
23.23 	(b) This section does not apply to:
23.24 	(1) conservation restrictions or easements covering riparian buffers along lakes, rivers, 
23.25 	and streams that are used for water quantity or quality control;
23.26 	(2) easements in a county that has adopted, by referendum, a program to protect farmland 
23.27 	and natural areas since 1999; or
23.28 	(3) conservation restrictions or easements entered into prior to May 23, 2013.; or
24.1 	(4) conservation easements in a metropolitan county that has adopted, by resolution, a 
24.2 	program to protect farmland or natural areas. A metropolitan county that has adopted a 
24.3 	program to protect farmland or natural areas may, by resolution, authorize the assessor to 
24.4 	consider the impact of the conservation easement on the property's value. For purposes of 
24.5 	this clause, "metropolitan county" has the meaning given in section 473.121, subdivision 
24.6 	4.

24.7 	EFFECTIVE DATE. This section is effective for assessment year 2026 and thereafter.

24.8 	Sec. 7. Minnesota Statutes 2024, section 273.128, subdivision 1, is amended to read:
24.9 		Subdivision 1.Requirement. (a) Low-income rental property classified as class 4d(1) 
24.10 	under section 273.13, subdivision 25, is entitled to valuation under this section if at least 
24.11 	20 percent of the units in the rental housing property meet any of the following qualifications:
24.12 	(1) the units are subject to a housing assistance payments contract under Section 8 of 
24.13 	the United States Housing Act of 1937, as amended;
24.14 	(2) the units are rent-restricted and income-restricted units of a qualified low-income 
24.15 	housing project receiving tax credits under section 42(g) of the Internal Revenue Code;
24.16 	(3) the units are financed by the Rural Housing Service of the United States Department 
24.17 	of Agriculture and receive payments under the rental assistance program pursuant to section 
24.18 	521(a) of the Housing Act of 1949, as amended; or
24.19 	(4) the units are subject to rent and income restrictions under the terms of financial 
24.20 	assistance provided to the rental housing property by the federal government or the state of 
24.21 	Minnesota, or a local unit of government, as evidenced by a document recorded against the 
24.22 	property. The restrictions under this clause must require assisted units to be occupied by 
24.23 	residents whose household income at the time of initial occupancy does not exceed 60 
24.24 	percent of the greater of area or state median income, adjusted for family size, as determined 
24.25 	by the United States Department of Housing and Urban Development. The restriction must 
24.26 	also require the rents for assisted units to not exceed 30 percent of 60 percent of the greater 
24.27 	of area or state median income, adjusted for family size, as determined by the United States 
24.28 	Department of Housing and Urban Development.
24.29 	The restrictions must require assisted units to be occupied by residents whose household 
24.30 	income at the time of initial occupancy does not exceed 60 percent of the greater of area or 
24.31 	state median income, adjusted for family size, as determined by the United States Department 
24.32 	of Housing and Urban Development. The restriction must also require the rents for assisted 
24.33 	units to not exceed 30 percent of 60 percent of the greater of area or state median income, 
25.1 	adjusted for family size, as determined by the United States Department of Housing and 
25.2 	Urban Development.
25.3 	(b) The owner of a property certified as class 4d(1) under this section must use the 
25.4 	property tax savings received from the 4d(1) classification for one or more of the following 
25.5 	eligible uses: property maintenance, property security, improvements to the property, rent 
25.6 	stabilization, or increases to the property's replacement reserve account. To maintain the 
25.7 	class 4d(1) classification, the property owner must annually reapply and certify to the 
25.8 	Housing Finance Agency that the property tax savings were used for one or more eligible 
25.9 	uses.
25.10 	(c) In order to meet the requirements of this section, property which received the 4d(1) 
25.11 	classification in the prior year must demonstrate compliance with paragraph (b).

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

25.13 	Sec. 8. Minnesota Statutes 2024, section 273.13, subdivision 23, is amended to read:
25.14 		Subd. 23.Class 2. (a) An agricultural homestead consists of class 2a agricultural land 
25.15 	that is homesteaded, along with any class 2b rural vacant land that is contiguous to the class 
25.16 	2a land under the same ownership. The market value of the house and garage and immediately 
25.17 	surrounding one acre of land has the same classification rates as class 1a or 1b property 
25.18 	under subdivision 22. The value of the remaining land including improvements up to the 
25.19 	first tier valuation limit of agricultural homestead property has a classification rate of 0.5 
25.20 	percent of market value. The remaining property over the first tier has a classification rate 
25.21 	of one percent of market value. For purposes of this subdivision, the "first tier valuation 
25.22 	limit of agricultural homestead property" and "first tier" means the limit certified under 
25.23 	section 273.11, subdivision 23.
25.24 	(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that 
25.25 	are agricultural land and buildings. Class 2a property has a classification rate of one percent 
25.26 	of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a 
25.27 	property must also include any property that would otherwise be classified as 2b, but is 
25.28 	interspersed with class 2a property, including but not limited to sloughs, wooded wind 
25.29 	shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement, 
25.30 	and other similar land that is impractical for the assessor to value separately from the rest 
25.31 	of the property or that is unlikely to be able to be sold separately from the rest of the property.
25.32 	An assessor may classify the part of a parcel described in this subdivision that is used 
25.33 	for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
26.1 	(c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that 
26.2 	are unplatted real estate, rural in character and not used for agricultural purposes, including 
26.3 	land used for growing trees for timber, lumber, and wood and wood products, that is not 
26.4 	improved with a structure. The presence of a minor, ancillary nonresidential structure as 
26.5 	defined by the commissioner of revenue does not disqualify the property from classification 
26.6 	under this paragraph. Any parcel of 20 acres or more improved with a structure that is not 
26.7 	a minor, ancillary nonresidential structure must be split-classified, and ten acres must be 
26.8 	assigned to the split parcel containing the structure. If a parcel of 20 acres or more is enrolled 
26.9 	in the sustainable forest management incentive program under chapter 290C, the number 
26.10 	of acres assigned to the split parcel improved with a structure that is not a minor, ancillary 
26.11 	nonresidential structure must equal three acres or the number of acres excluded from the 
26.12 	sustainable forest incentive act covenant due to the structure, whichever is greater. Class 
26.13 	2b property has a classification rate of one percent of market value unless it is part of an 
26.14 	agricultural homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
26.15 	(d) Class 2c managed forest land consists of no less than 20 and no more than 1,920 
26.16 	acres statewide per taxpayer that is being managed under a forest management plan that 
26.17 	meets the requirements of chapter 290C, but is not enrolled in the sustainable forest resource 
26.18 	management incentive program. It has a classification rate of .65 percent, provided that the 
26.19 	owner of the property must apply to the assessor in order for the property to initially qualify 
26.20 	for the reduced rate and provide the information required by the assessor to verify that the 
26.21 	property qualifies for the reduced rate. If the assessor receives the application and information 
26.22 	before May 1 in an assessment year, the property qualifies beginning with that assessment 
26.23 	year. If the assessor receives the application and information after April 30 in an assessment 
26.24 	year, the property may not qualify until the next assessment year. The commissioner of 
26.25 	natural resources must concur that the land is qualified. The commissioner of natural 
26.26 	resources shall annually provide county assessors verification information on a timely basis. 
26.27 	The presence of a minor, ancillary nonresidential structure as defined by the commissioner 
26.28 	of revenue does not disqualify the property from classification under this paragraph.
26.29 	(e) Agricultural land as used in this section means:
26.30 	(1) contiguous acreage of ten acres or more, used during the preceding year for 
26.31 	agricultural purposes; or
26.32 	(2) contiguous acreage used during the preceding year for an intensive livestock or 
26.33 	poultry confinement operation, provided that land used only for pasturing or grazing does 
26.34 	not qualify under this clause.
27.1 	"Agricultural purposes" as used in this section means the raising, cultivation, drying, or 
27.2 	storage of agricultural products for sale, or the storage of machinery or equipment used in 
27.3 	support of agricultural production by the same farm entity. For a property to be classified 
27.4 	as agricultural based only on the drying or storage of agricultural products, the products 
27.5 	being dried or stored must have been produced by the same farm entity as the entity operating 
27.6 	the drying or storage facility. "Agricultural purposes" also includes (i) enrollment in a local 
27.7 	conservation program or the Reinvest in Minnesota program under sections 103F.501 to 
27.8 	103F.535 or the federal Conservation Reserve Program as contained in Public Law 99-198 
27.9 	or a similar state or federal conservation program if the property was classified as agricultural 
27.10 	(A) under this subdivision for taxes payable in 2003 because of its enrollment in a qualifying 
27.11 	program and the land remains enrolled or (B) in the year prior to its enrollment, or (ii) use 
27.12 	of land, not to exceed three acres, to provide environmental benefits such as buffer strips, 
27.13 	old growth forest restoration or retention, or retention ponds to prevent soil erosion. For 
27.14 	purposes of this section, a "local conservation program" means a program administered by 
27.15 	a town, statutory or home rule charter city, or county, including a watershed district, water 
27.16 	management organization, or soil and water conservation district, in which landowners 
27.17 	voluntarily enroll land and receive incentive payments equal to at least $50 per acre in 
27.18 	exchange for use or other restrictions placed on the land. In order for property to qualify 
27.19 	under the local conservation program provision, a taxpayer must apply to the assessor by 
27.20 	February 1 of the assessment year and must submit the information required by the assessor, 
27.21 	including but not limited to a copy of the program requirements, the specific agreement 
27.22 	between the land owner and the local agency, if applicable, and a map of the conservation 
27.23 	area. Agricultural classification shall not be based upon the market value of any residential 
27.24 	structures on the parcel or contiguous parcels under the same ownership.
27.25 	"Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous 
27.26 	portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion 
27.27 	of, a set of contiguous tax parcels under that section that are owned by the same person.
27.28 	(f) Agricultural land under this section also includes:
27.29 	(1) contiguous acreage that is less than ten acres in size and exclusively used in the 
27.30 	preceding year for raising or cultivating agricultural products; or
27.31 	(2) contiguous acreage that contains a residence and is less than 11 acres in size, if the 
27.32 	contiguous acreage exclusive of the house, garage, and surrounding one acre of land was 
27.33 	used in the preceding year for one or more of the following three uses:
28.1 	(i) for an intensive grain drying or storage operation, or for intensive machinery or 
28.2 	equipment storage activities used to support agricultural activities on other parcels of property 
28.3 	operated by the same farming entity;
28.4 	(ii) as a nursery, provided that only those acres used intensively to produce nursery stock 
28.5 	are considered agricultural land; or
28.6 	(iii) for intensive market farming; for purposes of this paragraph, "market farming" 
28.7 	means the cultivation of one or more fruits or vegetables or production of animal or other 
28.8 	agricultural products for sale to local markets by the farmer or an organization with which 
28.9 	the farmer is affiliated. or
28.10 	(3) contiguous acreage that contains a residence and is less than 15 acres in size, if the 
28.11 	contiguous acreage inclusive of the house, garage, and surrounding one acre of land was 
28.12 	used in the preceding year for market farming and the owner provides the county assessor 
28.13 	with the filed federal Schedule F (Form 1040) for the most recent completed tax year that 
28.14 	reports gross income of at least $20,000.
28.15 	For purposes of this paragraph, "market farming" means the cultivation of one or more 
28.16 	fruits or vegetables or production of animal or other agricultural products for sale to local 
28.17 	markets by the farmer or an organization with which the farmer is affiliated, and "contiguous 
28.18 	acreage," for purposes of this paragraph, means all of a tax parcel as described in section 
28.19 	272.193, or all of a set of contiguous tax parcels under that section that are owned by the 
28.20 	same person.
28.21 	(g) Land shall be classified as agricultural even if all or a portion of the agricultural use 
28.22 	of that property is the leasing to, or use by another person for agricultural purposes.
28.23 	Classification under this subdivision is not determinative for qualifying under section 
28.24 	273.111.
28.25 	(h) The property classification under this section supersedes, for property tax purposes 
28.26 	only, any locally administered agricultural policies or land use restrictions that define 
28.27 	minimum or maximum farm acreage.
28.28 	(i) The term "agricultural products" as used in this subdivision includes production for 
28.29 	sale of:
28.30 	(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing 
28.31 	animals, horticultural and nursery stock, floriculture, fruit of all kinds, vegetables, forage, 
28.32 	grains, bees, and apiary products by the owner;
29.1 	(2) aquacultural products for sale and consumption, as defined under section 17.47, if 
29.2 	the aquaculture occurs on land zoned for agricultural use;
29.3 	(3) the commercial boarding of horses, which may include related horse training and 
29.4 	riding instruction, if the boarding is done on property that is also used for raising pasture 
29.5 	to graze horses or raising or cultivating other agricultural products as defined in clause (1);
29.6 	(4) property which is owned and operated by nonprofit organizations used for equestrian 
29.7 	activities, excluding racing;
29.8 	(5) game birds and waterfowl bred and raised (i) on a game farm licensed under section 
29.9 	97A.105, provided that the annual licensing report to the Department of Natural Resources, 
29.10 	which must be submitted annually by March 30 to the assessor, indicates that at least 500 
29.11 	birds were raised or used for breeding stock on the property during the preceding year and 
29.12 	that the owner provides a copy of the owner's most recent schedule F; or (ii) for use on a 
29.13 	shooting preserve licensed under section 97A.115;
29.14 	(6) insects primarily bred to be used as food for animals;
29.15 	(7) trees, grown for sale as a crop, including short rotation woody crops, and not sold 
29.16 	for timber, lumber, wood, or wood products; and
29.17 	(8) maple syrup taken from trees grown by a person licensed by the Minnesota 
29.18 	Department of Agriculture under chapter 28A as a food processor.
29.19 	(j) If a parcel used for agricultural purposes is also used for commercial or industrial 
29.20 	purposes, including but not limited to:
29.21 	(1) wholesale and retail sales;
29.22 	(2) processing of raw agricultural products or other goods;
29.23 	(3) warehousing or storage of processed goods; and
29.24 	(4) office facilities for the support of the activities enumerated in clauses (1), (2), and 
29.25 	(3), the assessor shall classify the part of the parcel used for agricultural purposes as class 
29.26 	1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use. 
29.27 	The grading, sorting, and packaging of raw agricultural products for first sale is considered 
29.28 	an agricultural purpose. A greenhouse or other building where floricultural, horticultural 
29.29 	or nursery products are grown that is also used for the conduct of retail sales must be 
29.30 	classified as agricultural if it is primarily used for the growing of floricultural, horticultural 
29.31 	or nursery products from seed, cuttings, or roots and occasionally as a showroom for the 
29.32 	retail sale of those products. Use of a greenhouse or building only for the display of already 
30.1 	grown floricultural, horticultural or nursery products does not qualify as an agricultural 
30.2 	purpose.
30.3 	"Floriculture," for the purposes of this paragraph, includes production of bedding and garden 
30.4 	plants, foliage plants, potted flowering plants, and cut flowers.
30.5 	(k) The assessor shall determine and list separately on the records the market value of 
30.6 	the homestead dwelling and the one acre of land on which that dwelling is located. If any 
30.7 	farm buildings or structures are located on this homesteaded acre of land, their market value 
30.8 	shall not be included in this separate determination.
30.9 	(l) Class 2d airport landing area consists of a landing area or public access area of a 
30.10 	privately owned public use airport. It has a classification rate of one percent of market value. 
30.11 	To qualify for classification under this paragraph, a privately owned public use airport must 
30.12 	be licensed as a public airport under section 360.018. For purposes of this paragraph, "landing 
30.13 	area" means that part of a privately owned public use airport properly cleared, regularly 
30.14 	maintained, and made available to the public for use by aircraft and includes runways, 
30.15 	taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing 
30.16 	area also includes land underlying both the primary surface and the approach surfaces that 
30.17 	comply with all of the following:
30.18 	(i) the land is properly cleared and regularly maintained for the primary purposes of the 
30.19 	landing, taking off, and taxiing of aircraft; but that portion of the land that contains facilities 
30.20 	for servicing, repair, or maintenance of aircraft is not included as a landing area;
30.21 	(ii) the land is part of the airport property; and
30.22 	(iii) the land is not used for commercial or residential purposes.
30.23 	The land contained in a landing area under this paragraph must be described and certified 
30.24 	by the commissioner of transportation. The certification is effective until it is modified, or 
30.25 	until the airport or landing area no longer meets the requirements of this paragraph. For 
30.26 	purposes of this paragraph, "public access area" means property used as an aircraft parking 
30.27 	ramp, apron, or storage hangar, or an arrival and departure building in connection with the 
30.28 	airport.
30.29 	(m) Class 2e consists of land with a commercial aggregate deposit that is not actively 
30.30 	being mined and is not otherwise classified as class 2a or 2b, provided that the land is not 
30.31 	located in a county that has elected to opt-out of the aggregate preservation program as 
30.32 	provided in section 273.1115, subdivision 6. It has a classification rate of one percent of 
30.33 	market value. To qualify for classification under this paragraph, the property must be at 
31.1 	least ten contiguous acres in size and the owner of the property must record with the county 
31.2 	recorder of the county in which the property is located an affidavit containing:
31.3 	(1) a legal description of the property;
31.4 	(2) a disclosure that the property contains a commercial aggregate deposit that is not 
31.5 	actively being mined but is present on the entire parcel enrolled;
31.6 	(3) documentation that the conditional use under the county or local zoning ordinance 
31.7 	of this property is for mining; and
31.8 	(4) documentation that a permit has been issued by the local unit of government or the 
31.9 	mining activity is allowed under local ordinance. The disclosure must include a statement 
31.10 	from a registered professional geologist, engineer, or soil scientist delineating the deposit 
31.11 	and certifying that it is a commercial aggregate deposit.
31.12 	For purposes of this section and section 273.1115, "commercial aggregate deposit" 
31.13 	means a deposit that will yield crushed stone or sand and gravel that is suitable for use as 
31.14 	a construction aggregate; and "actively mined" means the removal of top soil and overburden 
31.15 	in preparation for excavation or excavation of a commercial deposit.
31.16 	(n) When any portion of the property under this subdivision or subdivision 22 begins to 
31.17 	be actively mined, the owner must file a supplemental affidavit within 60 days from the 
31.18 	day any aggregate is removed stating the number of acres of the property that is actively 
31.19 	being mined. The acres actively being mined must be (1) valued and classified under 
31.20 	subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate 
31.21 	resource preservation property tax program under section 273.1115, if the land was enrolled 
31.22 	in that program. Copies of the original affidavit and all supplemental affidavits must be 
31.23 	filed with the county assessor, the local zoning administrator, and the Department of Natural 
31.24 	Resources, Division of Land and Minerals. A supplemental affidavit must be filed each 
31.25 	time a subsequent portion of the property is actively mined, provided that the minimum 
31.26 	acreage change is five acres, even if the actual mining activity constitutes less than five 
31.27 	acres.
31.28 	(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are not 
31.29 	rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in 
31.30 	section 14.386 concerning exempt rules do not apply.

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

32.1 	Sec. 9. Minnesota Statutes 2024, section 273.38, is amended to read:
32.2 	273.38 PERCENTAGE OF ASSESSMENTS; EXCEPTIONS.
32.3 	The distribution lines and the attachments and appurtenances thereto systems, not 
32.4 	including substations, or transmission or generation equipment, of cooperative associations
32.5 	organized under the provisions of Laws 1923, chapter 326, and laws amendatory thereof 
32.6 	and supplemental thereto, and engaged in the electrical heat, light and power business, upon 
32.7 	a mutual, nonprofit and cooperative plan, shall be assessed and taxed as provided in sections 
32.8 	273.40 and 273.41.

32.9 	EFFECTIVE DATE. This section is effective beginning with assessment year 2025 
32.10 	and thereafter.

32.11 	Sec. 10. Minnesota Statutes 2024, section 273.41, is amended to read:
32.12 	273.41 AMOUNT OF TAX; DISTRIBUTION.
32.13 	There is hereby imposed upon each such cooperative association on December 31 of 
32.14 	each year a tax of $10 for each 100 members, or fraction thereof, of such association. The 
32.15 	tax, when paid, shall be in lieu of all personal property taxes, state, county, or local, upon
32.16 	distribution lines and the attachments and appurtenances thereto of such associations that 
32.17 	part of the association's distribution system, not including substations, or transmission or 
32.18 	generation equipment, located in rural areas. The tax shall be payable on or before March 
32.19 	1 of the next succeeding year, to the commissioner of revenue. If the tax, or any portion 
32.20 	thereof, is not paid within the time herein specified for the payment thereof, there shall be 
32.21 	added thereto a specific penalty equal to ten percent of the amount so remaining unpaid. 
32.22 	Such penalty shall be collected as part of said tax, and the amount of said tax not timely 
32.23 	paid, together with said penalty, shall bear interest at the rate specified in section 270C.40
32.24 	from the time such tax should have been paid until paid. The commissioner shall deposit 
32.25 	the amount so received in the general fund of the state treasury.

32.26 	EFFECTIVE DATE. This section is effective beginning with assessment year 2025 
32.27 	and thereafter.

32.28 	Sec. 11. Minnesota Statutes 2024, section 279.37, subdivision 2, is amended to read:
32.29 		Subd. 2.Installment payments. (a) The owner of any such parcel, or any person to 
32.30 	whom the right to pay taxes has been given by statute, mortgage, or other agreement, may 
32.31 	make and file with the county auditor of the county in which the parcel is located a written 
32.32 	offer to pay the current taxes each year before they become delinquent, or to contest the 
33.1 	taxes under chapter 278 and agree to confess judgment for the amount provided, as 
33.2 	determined by the county auditor. By filing the offer, the owner waives all irregularities in 
33.3 	connection with the tax proceedings affecting the parcel and any defense or objection which 
33.4 	the owner may have to the proceedings, and also waives the requirements of any notice of 
33.5 	default in the payment of any installment or interest to become due pursuant to the composite 
33.6 	judgment to be so entered. Unless the property is subject to subdivision 1a, with the offer, 
33.7 	the owner shall (i) tender one-tenth of the amount of the delinquent taxes, costs, penalty, 
33.8 	and interest, and (ii) tender all current year taxes and penalty due at the time the confession 
33.9 	of judgment is entered. In the offer, the owner shall agree to pay the balance in nine equal 
33.10 	installments, with interest as provided in section 279.03, payable annually on installments 
33.11 	remaining unpaid from time to time, on or before December 31 of each year following the 
33.12 	year in which judgment was confessed.
33.13 	(b) For property which qualifies under section 279.03, subdivision 2, paragraph (b), each 
33.14 	year the commissioner shall set the interest rate for offers made under paragraph (a) at the 
33.15 	greater of five percent or two percent above the prime rate charged by banks during the 
33.16 	six-month period ending on September 30 of that year, rounded to the nearest full percent, 
33.17 	provided that the rate must not exceed the maximum annum rate specified under section 
33.18 	279.03, subdivision 1a. The rate of interest becomes effective on January 1 of the immediately 
33.19 	succeeding year. The commissioner's determination under this subdivision is not a rule 
33.20 	subject to the Administrative Procedure Act in chapter 14, including section 14.386. If a 
33.21 	default occurs in the payments under any confessed judgment entered under this paragraph, 
33.22 	the taxes and penalties due are subject to the interest rate specified in section 279.03.
33.23 	For the purposes of this subdivision:
33.24 	(1) the term "prime rate charged by banks" means the average predominant prime rate 
33.25 	quoted by commercial banks to large businesses, as determined by the Board of Governors 
33.26 	of the Federal Reserve System; and
33.27 	(2) "default" means the cancellation of the confession of judgment due to nonpayment 
33.28 	of the current year tax or failure to make any installment payment required by this confessed 
33.29 	judgment within 60 days from the date on which payment was due.
33.30 	(c) The interest rate established at the time judgment is confessed is fixed for the duration 
33.31 	of the judgment. By October 15 of each year, the commissioner of revenue must determine 
33.32 	the rate of interest as provided under paragraph (b) and, by November 1 of each year, must 
33.33 	certify the rate to the county auditor.
34.1 	(d) A qualified property owner eligible to enter into a second confession of judgment 
34.2 	may do so at the interest rate provided in paragraph (b).
34.3 	(e) Repurchase agreements or contracts for repurchase for properties being repurchased 
34.4 	under section 282.261 are not eligible to receive the interest rate under paragraph (b).
34.5 	(f) The offer must be substantially as follows:
34.6 	"To the court administrator of the district court of ........... county, I, ....................., am 
34.7 	the owner of the following described parcel of real estate located in .................... county, 
34.8 	Minnesota:
34.9 	.............................. Upon that real estate there are delinquent taxes for the year ........., and 
34.10 	prior years, as follows: (here insert year of delinquency and the total amount of delinquent 
34.11 	taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in 
34.12 	the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and 
34.13 	any defense or objection which I may have to them, and direct judgment to be entered for 
34.14 	the amount stated above, minus the sum of $............, to be paid with this document, which 
34.15 	is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above. 
34.16 	I agree to pay the balance of the judgment in nine or four equal, annual installments, with 
34.17 	interest as provided in section 279.03, payable annually, on the installments remaining 
34.18 	unpaid. I agree to pay the installments and interest on or before December 31 of each year 
34.19 	following the year in which this judgment is confessed and current taxes each year before 
34.20 	they become delinquent, or within 30 days after the entry of final judgment in proceedings 
34.21 	to contest the taxes under chapter 278.
34.22 	Dated .............., ......."

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

34.24 	Sec. 12. Minnesota Statutes 2024, section 449.08, is amended to read:
34.25 	449.08 TAX LEVY FOR FREE MUSIC IN THIRD CLASS CITIES.
34.26 	The council of any city of the third class may levy a tax for the purpose of providing 
34.27 	free musical entertainment for the general public. The proceeds of this tax shall be used 
34.28 	only for the purpose of providing free musical entertainment for the public. The annual 
34.29 	expenditure for this purpose is limited to $3,000 $10,000.

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

35.1 	Sec. 13. Minnesota Statutes 2024, section 469.1812, is amended by adding a subdivision 
35.2 	to read:
35.3 		Subd. 2a.Land bank organization. "Land bank organization" means an organization 
35.4 	that, at least in part, acquires, holds, or manages vacant, blighted, foreclosed, or tax-forfeited 
35.5 	property for future development, redevelopment, or disposal, and that is either:
35.6 	(1) a nonprofit organization exempt from federal income taxation under section 501(c)(3) 
35.7 	of the Internal Revenue Code whose governing board members are elected or appointed by 
35.8 	the state of Minnesota, any political subdivision of the state of Minnesota, or an agency of 
35.9 	the state of Minnesota or its political subdivisions, or are elected or appointed officials of 
35.10 	the state of Minnesota or any of its political subdivisions; or
35.11 	(2) a limited liability company of which a nonprofit organization described in clause (1) 
35.12 	is the sole member.

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

35.14 	Sec. 14. Minnesota Statutes 2024, section 469.1813, subdivision 1, is amended to read:
35.15 		Subdivision 1.Authority. The governing body of a political subdivision may grant a 
35.16 	current or prospective abatement, by contract or otherwise, of the taxes imposed by the 
35.17 	political subdivision on a parcel of property, which may include personal property and 
35.18 	machinery, or defer the payments of the taxes and abate the interest and penalty that otherwise 
35.19 	would apply, if:
35.20 	(1) it expects the benefits to the political subdivision of the proposed abatement agreement 
35.21 	to at least equal the costs to the political subdivision of the proposed agreement or intends 
35.22 	the abatement to phase in a property tax increase, as provided in clause (2)(vii); and
35.23 	(2) it finds that doing so is in the public interest because it will:
35.24 	(i) increase or preserve tax base;
35.25 	(ii) provide employment opportunities in the political subdivision;
35.26 	(iii) provide or help acquire or construct public facilities;
35.27 	(iv) help redevelop or renew blighted areas;
35.28 	(v) help provide access to services for residents of the political subdivision;
35.29 	(vi) finance or provide public infrastructure;
36.1 	(vii) phase in a property tax increase on the parcel resulting from an increase of 50 
36.2 	percent or more in one year on the estimated market value of the parcel, other than increase 
36.3 	attributable to improvement of the parcel; or
36.4 	(viii) stabilize the tax base through equalization of property tax revenues for a specified 
36.5 	period of time with respect to a taxpayer whose real and personal property is subject to 
36.6 	valuation under Minnesota Rules, chapter 8100.;
36.7 	(ix) provide for the development of affordable housing to households at or below 80 
36.8 	percent of area median income as estimated by the United States Department of Housing 
36.9 	and Urban Development for the political subdivision in which the project is located; or
36.10 	(x) allow the property to be held by a land bank organization for future development.

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

36.12 	Sec. 15. Minnesota Statutes 2024, section 469.1813, subdivision 6, is amended to read:
36.13 		Subd. 6.Duration limit. (a) A political subdivision may grant an abatement for a period 
36.14 	no longer than 15 years, except as provided under paragraph paragraphs (b) and (c). The 
36.15 	abatement period commences in the first year in which the abatement granted is either paid 
36.16 	or retained in accordance with section 469.1815, subdivision 2. The subdivision may specify 
36.17 	in the abatement resolution a shorter duration. If the resolution does not specify a period of 
36.18 	time, the abatement is for eight years. If an abatement has been granted to a parcel of property 
36.19 	and the period of the abatement has expired, the political subdivision that granted the 
36.20 	abatement may not grant another abatement for eight years after the expiration of the first 
36.21 	abatement. This prohibition does not apply to improvements added after and not subject to 
36.22 	the first abatement. Economic abatement agreements for real and personal property subject 
36.23 	to valuation under Minnesota Rules, chapter 8100, are not subject to this prohibition and 
36.24 	may be granted successively.
36.25 	(b) A political subdivision proposing to abate taxes for a parcel may request, in writing, 
36.26 	that the other political subdivisions in which the parcel is located grant an abatement for 
36.27 	the property. If one of the other political subdivisions declines, in writing, to grant an 
36.28 	abatement or if 90 days pass after receipt of the request to grant an abatement without a 
36.29 	written response from one of the political subdivisions, the duration limit for an abatement 
36.30 	for the parcel by the requesting political subdivision and any other participating political 
36.31 	subdivision is increased to 20 years. If the political subdivision which declined to grant an 
36.32 	abatement later grants an abatement for the parcel, the 20-year duration limit is reduced by 
36.33 	one year for each year that the declining political subdivision grants an abatement for the 
37.1 	parcel during the period of the abatement granted by the requesting political subdivision. 
37.2 	The duration limit may not be reduced below the limit under paragraph (a).
37.3 	(c) An abatement under subdivision 1, clause (2), items (ix) and (x), may be granted for 
37.4 	a period no longer than five years. This limit also applies if the resolution does not specify 
37.5 	a period of time.

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

37.8 	Sec. 16. Minnesota Statutes 2024, section 469.1813, is amended by adding a subdivision 
37.9 	to read:
37.10 		Subd. 11.Repayment. A land bank organization receiving an abatement under 
37.11 	subdivision 1, clause (2), item (ix) or (x), must repay the abatement with interest if the land 
37.12 	for which the abatement was granted is used for a purpose other than the purpose given by 
37.13 	the land bank organization prior to redevelopment, as determined by the governing body 
37.14 	of the political subdivision that granted the abatement. The repayment must be paid to the 
37.15 	county treasurer and the county auditor shall distribute the repayment in the same proportion 
37.16 	to the political subdivisions which granted the abatement. This subdivision applies 
37.17 	immediately after the abatement under this section expires and land is subject to repayment 
37.18 	under this subdivision for the same number of years that the abatement was granted. Interest 
37.19 	under this section is payable at the rate determined in section 270C.40, subdivision 5.

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

37.21 	Sec. 17. EXEMPTION FOR LAND HELD FOR ECONOMIC DEVELOPMENT.
 37.22 	Notwithstanding Minnesota Statutes, section 272.02, subdivision 39, property owned 
37.23 	by the Port Authority of the city of Bloomington that was acquired by the Port Authority 
37.24 	in May 2016 and exempt under Minnesota Statutes, section 272.02, subdivision 39, for 
37.25 	taxes payable in 2017 through 2025, must continue to be exempt pursuant to Minnesota 
37.26 	Statutes, section 272.02, subdivision 39, for taxes payable in 2026 through 2031 provided 
37.27 	that the requirements of that subdivision are met. Notwithstanding Minnesota Statutes, 
37.28 	section 272.025, an initial application for the exemption under this section must be filed 
37.29 	with the assessor by June 30, 2025.

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

38.1 	Sec. 18. PROPERTY TAX EXEMPTION; RED LAKE NATION COLLEGE.
 38.2 	(a) Notwithstanding Minnesota Statutes, section 272.02, subdivision 38, paragraph (b), 
38.3 	and any other law to the contrary, property located in the city of Minneapolis acquired by 
38.4 	Red Lake Nation College Without Borders, LLC in either August 2021 or September 2021 
38.5 	is exempt from property taxes payable in 2022 and the portion of property taxes payable in 
38.6 	2021 due after the property was acquired. An amount necessary to make a payment to the 
38.7 	county for the property taxes that would be payable but for the exemption is appropriated 
38.8 	from the general fund to the commissioner of revenue in fiscal year 2026. All prior year 
38.9 	penalties, interest, and costs are canceled.
38.10 	(b) By August 1, 2025, the auditor of the county in which the property is located must 
38.11 	certify to the commissioner of revenue the amount to be paid by the commissioner of revenue 
38.12 	to the county under paragraph (a). The commissioner of revenue must make this payment 
38.13 	by August 15, 2025.

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

38.15 	Sec. 19. REPEALER.
 38.16 	Minnesota Statutes 2024, sections 275.065, subdivision 3c; and 276.04, subdivision 2a,
38.17 	are repealed.

38.18 	EFFECTIVE DATE. This section is effective beginning with property taxes payable 
38.19 	in 2026.

38.20 	ARTICLE 3
38.21 	SALES AND USE TAXES; EXCISE TAXES

38.22 	Section 1. Minnesota Statutes 2024, section 289A.20, subdivision 4, is amended to read:
38.23 		Subd. 4.Sales and use tax. (a) The taxes imposed by chapter 297A are due and payable 
38.24 	to the commissioner monthly on or before the 20th day of the month following the month 
38.25 	in which the taxable event occurred, or following another reporting period as the 
38.26 	commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph (f) 
38.27 	or (g), except that use taxes due on an annual use tax return as provided under section 
38.28 	289A.11, subdivision 1, are payable by April 15 following the close of the calendar year.
38.29 	(b) A vendor having a liability of $250,000 or more during a fiscal year ending June 30, 
38.30 	except a vendor of construction materials as defined in paragraph (e), must remit the June 
38.31 	liability for the next year in the following manner:
39.1 	(1) Two business days before June 30 of calendar year 2020 and 2021, the vendor must 
39.2 	remit 87.5 percent of the estimated June liability to the commissioner. Two business days 
39.3 	before June 30 of calendar year 2022 and thereafter, the vendor must remit 84.5 percent, or 
39.4 	a reduced percentage as certified by the commissioner under section 16A.152, subdivision 
39.5 	2, paragraph (a), clause (6), of the estimated June liability to the commissioner.
39.6 	(2) On or before August 20 of the year, the vendor must pay any additional amount of 
39.7 	tax not remitted in June.
39.8 	(b) A vendor having a liability of $250,000 or more during a fiscal year ending June 30, 
39.9 	except for taxes imposed under chapters 168E, 295, and 297H, must remit the June liability 
39.10 	for the next year in the following manner:
39.11 	(1) Two business days before June 30 of calendar year 2027 and each year thereafter, 
39.12 	the vendor must remit 5.6 percent of the estimated June liability to the commissioner.
39.13 	(2) On or before August 20 of the year, the vendor must pay any additional amount of 
39.14 	tax not remitted in June.
39.15 	(c) A vendor having a liability of:
39.16 	(1) $10,000 or more, but less than $250,000, during a fiscal year must remit by electronic 
39.17 	means all liabilities on returns due for periods beginning in all subsequent calendar years 
39.18 	on or before the 20th day of the month following the month in which the taxable event 
39.19 	occurred, or on or before the 20th day of the month following the month in which the sale 
39.20 	is reported under section 289A.18, subdivision 4; or
39.21 	(2) $250,000 or more during a fiscal year must remit by electronic means all liabilities 
39.22 	in the manner provided in paragraph (a) on returns due for periods beginning in the 
39.23 	subsequent calendar year, except that a vendor subject to the remittance requirements of 
39.24 	paragraph (b) must remit the percentage of the estimated June liability, as provided in 
39.25 	paragraph (b), clause (1), which is due two business days before June 30. The remaining 
39.26 	amount of the June liability is due on August 20.
39.27 	(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's religious 
39.28 	beliefs from paying electronically shall be allowed to remit the payment by mail. The filer 
39.29 	must notify the commissioner of revenue of the intent to pay by mail before doing so on a 
39.30 	form prescribed by the commissioner. No extra fee may be charged to a person making 
39.31 	payment by mail under this paragraph. The payment must be postmarked at least two business 
39.32 	days before the due date for making the payment in order to be considered paid on a timely 
39.33 	basis.
40.1 	(e) For the purposes of paragraph (b), "vendor of construction materials" means a retailer 
40.2 	that sells any of the following construction materials, if 50 percent or more of the retailer's 
40.3 	sales revenue for the fiscal year ending June 30 is from the sale of those materials:
40.4 	(1) lumber, veneer, plywood, wood siding, wood roofing;
40.5 	(2) millwork, including wood trim, wood doors, wood windows, wood flooring; or
40.6 	(3) concrete, cement, and masonry.
40.7 	(f) Paragraph (b) expires after the percentage of estimated payment is reduced to zero 
40.8 	in accordance with section 16A.152, subdivision 2, paragraph (a), clause (6).

40.9 	EFFECTIVE DATE. This section is effective for taxes remitted after May 31, 2027.

40.10 	Sec. 2. Minnesota Statutes 2024, section 289A.60, is amended by adding a subdivision to 
40.11 	read:
40.12 		Subd. 15a.Accelerated payment of June sales tax liability; penalty for 
40.13 	underpayment. For payments made after December 31, 2026, if a vendor is required by 
40.14 	law to submit an estimation of June sales tax liabilities and 5.6 percent payment by a certain 
40.15 	date, the vendor shall pay a penalty equal to ten percent of the amount of actual June liability 
40.16 	required to be paid in June less the amount remitted in June. The penalty must not be 
40.17 	imposed, however, if the amount remitted in June equals the lesser of  5.6 percent of the 
40.18 	preceding May's liability or 5.6 percent of the average monthly liability for the previous 
40.19 	calendar year.

40.20 	EFFECTIVE DATE. This section is effective for taxes remitted after May 31, 2027.

40.21 	Sec. 3. Minnesota Statutes 2024, section 295.81, subdivision 2, is amended to read:
40.22 		Subd. 2.Gross receipts tax imposed. (a) A tax equal to ten 15 percent of gross receipts 
40.23 	from retail sales in Minnesota of taxable cannabis products is imposed on any taxable 
40.24 	cannabis product retailer that sells these products to customers. A taxable cannabis product 
40.25 	retailer may but is not required to collect the tax imposed by this section from the purchaser 
40.26 	as long as the tax is separately stated on the receipt, invoice, bill of sale, or similar document 
40.27 	given to the purchaser.
40.28 	(b) If a product subject to the tax imposed under this section is included in a bundled 
40.29 	transaction, the entire sales price of the bundled transaction is subject to the tax imposed 
40.30 	under this section.
41.1 	(c) The tax imposed under this section is in addition to any other tax imposed on the 
41.2 	sale or use of taxable cannabis products.

41.3 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
41.4 	30, 2025.

41.5 	Sec. 4. Minnesota Statutes 2024, section 297A.68, subdivision 42, is amended to read:
41.6 		Subd. 42.Qualified data centers. (a) Purchases of enterprise information technology 
41.7 	equipment and computer software for use in a qualified data center, or a qualified refurbished 
41.8 	data center, are exempt, except that computer software maintenance agreements are exempt 
41.9 	for purchases made after June 30, 2013. The tax on purchases exempt under this paragraph 
41.10 	must be imposed and collected as if the rate under section 297A.62, subdivision 1, applied, 
41.11 	and then refunded after June 30, 2013, in the manner provided in section 297A.75. This 
41.12 	exemption includes enterprise information technology equipment and computer software 
41.13 	purchased to replace or upgrade enterprise information technology equipment and computer 
41.14 	software in a qualified data center, or a qualified refurbished data center.
41.15 	(b) Electricity used or consumed in the operation of a qualified data center or qualified 
41.16 	refurbished data center is exempt.
41.17 	(c) (b) For purposes of this subdivision, "qualified data center" means a facility in 
41.18 	Minnesota:
41.19 	(1) that is comprised of one or more buildings that consist in the aggregate of at least 
41.20 	25,000 square feet, and that are located on a single parcel or on contiguous parcels, where 
41.21 	the total cost of construction or refurbishment, investment in enterprise information 
41.22 	technology equipment, and computer software is at least $30,000,000 within a 48-month 
41.23 	period. The 48-month period begins no sooner than July 1, 2012, except that costs for 
41.24 	computer software maintenance agreements purchased before July 1, 2013, are not included 
41.25 	in determining if the $30,000,000 threshold has been met;
41.26 	(2) that is constructed or substantially refurbished after June 30, 2012, where 
41.27 	"substantially refurbished" means that at least 25,000 square feet have been rebuilt or 
41.28 	modified, including:
41.29 	(i) installation of enterprise information technology equipment; environmental control, 
41.30 	computer software, and energy efficiency improvements; and
41.31 	(ii) building improvements; and
42.1 	(3) that is used to house enterprise information technology equipment, where the facility 
42.2 	has the following characteristics:
42.3 	(i) uninterruptible power supplies, generator backup power, or both;
42.4 	(ii) sophisticated fire suppression and prevention systems; and
42.5 	(iii) enhanced security. A facility will be considered to have enhanced security if it has 
42.6 	restricted access to the facility to selected personnel; permanent security guards; video 
42.7 	camera surveillance; an electronic system requiring pass codes, keycards, or biometric scans, 
42.8 	such as hand scans and retinal or fingerprint recognition; or similar security features.
42.9 	In determining whether the facility has the required square footage, the square footage 
42.10 	of the following spaces shall be included if the spaces support the operation of enterprise 
42.11 	information technology equipment: office space, meeting space, and mechanical and other 
42.12 	support facilities. For purposes of this subdivision, "computer software" includes, but is not 
42.13 	limited to, software utilized or loaded at a qualified data center or qualified refurbished data 
42.14 	center, including maintenance, licensing, and software customization.
42.15 	(d) (c) For purposes of this subdivision, a "qualified refurbished data center" means an 
42.16 	existing facility that qualifies as a data center under paragraph (c) (b), clauses (2) and (3), 
42.17 	but that is comprised of one or more buildings that consist in the aggregate of at least 25,000 
42.18 	square feet, and that are located on a single parcel or contiguous parcels, where the total 
42.19 	cost of construction or refurbishment, investment in enterprise information technology 
42.20 	equipment, and computer software is at least $50,000,000 within a 24-month period.
42.21 	(e) (d) For purposes of this subdivision, "enterprise information technology equipment" 
42.22 	means computers and equipment supporting computing, networking, or data storage, 
42.23 	including servers and routers. It includes, but is not limited to: cooling systems, cooling 
42.24 	towers, and other temperature control infrastructure; power infrastructure for transformation, 
42.25 	distribution, or management of electricity used for the maintenance and operation of a 
42.26 	qualified data center or qualified refurbished data center, including but not limited to exterior 
42.27 	dedicated business-owned substations, backup power generation systems, battery systems, 
42.28 	and related infrastructure; and racking systems, cabling, and trays, which are necessary for 
42.29 	the maintenance and operation of the qualified data center or qualified refurbished data 
42.30 	center.
42.31 	(f) (e) A qualified data center or qualified refurbished data center may claim the 
42.32 	exemptions in this subdivision for purchases made either within 20 years of the date of its 
42.33 	first purchase qualifying for the exemption under paragraph (a), or by June 30, 2042, 
42.34 	whichever is earlier.
43.1 	(g) (f) The purpose of this exemption is to create jobs in the construction and data center 
43.2 	industries.
43.3 	(h) (g) This subdivision is effective for sales and purchases made before July 1, 2042.
43.4 	(i) (h) The commissioner of employment and economic development must certify to the 
43.5 	commissioner of revenue, in a format approved by the commissioner of revenue, when a 
43.6 	qualified data center has met the requirements under paragraph (c) (b) or a qualified 
43.7 	refurbished data center has met the requirements under paragraph (d) (c). The certification 
43.8 	must provide the following information regarding each qualified data center or qualified 
43.9 	refurbished data center:
43.10 	(1) the total square footage amount;
43.11 	(2) the total amount of construction or refurbishment costs and the total amount of 
43.12 	qualifying investments in enterprise information technology equipment and computer 
43.13 	software;
43.14 	(3) the beginning and ending of the applicable period under either paragraph (c) or (d)
43.15 	(b) or (c) in which the qualifying expenditures and purchases under clause (2) were made, 
43.16 	but in no case shall the period begin before July 1, 2012; and
43.17 	(4) the date upon which the qualified data center first met the requirements under 
43.18 	paragraph (c) (b) or a qualified refurbished data center first met the requirements under 
43.19 	paragraph (d) (c).
43.20 	(j) (k) Any refund for sales tax paid on qualifying purchases under this subdivision must 
43.21 	not be issued unless the commissioner of revenue has received the certification required 
43.22 	under paragraph (i) (h) issued by the commissioner of employment and economic 
43.23 	development.
43.24 	(k) (j) The commissioner of employment and economic development must annually 
43.25 	notify the commissioner of revenue of the qualified data centers that are projected to meet 
43.26 	the requirements under paragraph (c) (b) and the qualified refurbished data centers that are 
43.27 	projected to meet the requirements under paragraph (d) (c) in each of the next four years. 
43.28 	The notification must provide the information required under paragraph (i) (h), clauses (1) 
43.29 	to (4), for each qualified data center or qualified refurbished data center.

43.30 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
43.31 	30, 2025.

44.1 	Sec. 5. Minnesota Statutes 2024, section 297G.09, subdivision 10, is amended to read:
44.2 		Subd. 10.Quarterly and annual payments and returns. (a) If a manufacturer, 
44.3 	wholesaler, brewer, or importer has an average liquor tax liability equal to or less than $500 
44.4 	per month in any quarter of a calendar year, and has substantially complied with the state 
44.5 	tax laws during the preceding four calendar quarters, the manufacturer, wholesaler, brewer, 
44.6 	or importer may request authorization to file and pay the taxes quarterly in subsequent 
44.7 	calendar quarters. The authorization remains in effect during the period in which the 
44.8 	manufacturer's, wholesaler's, brewer's, or importer's quarterly returns reflect liquor tax 
44.9 	liabilities of less than $1,500 and there is continued compliance with state tax laws.
44.10 	(b) If a manufacturer, wholesaler, brewer, or importer has an average liquor tax liability 
44.11 	equal to or less than $100 per month during a calendar year, and has substantially complied 
44.12 	with the state tax laws during that period, the manufacturer, wholesaler, brewer, or importer 
44.13 	may request authorization to file and pay the taxes annually in subsequent years. The 
44.14 	authorization remains in effect during the period in which the manufacturer's, wholesaler's, 
44.15 	brewer's, or importer's annual returns reflect liquor tax liabilities of less than $1,200 and 
44.16 	there is continued compliance with state tax laws. A qualified brewer as defined under 
44.17 	section 297G.04, subdivision 2, that meets the same criteria during a calendar year may file 
44.18 	and pay the taxes annually the following calendar year without authorization. A qualified 
44.19 	brewer must provide notice of intent to file and pay the taxes annually to the commissioner 
44.20 	in a form and manner prescribed by the commissioner.
44.21 	(c) The commissioner may also grant quarterly or annual filing and payment 
44.22 	authorizations to manufacturers, wholesalers, brewers, or importers if the commissioner 
44.23 	concludes that the manufacturer's, wholesaler's, brewer's, or importer's future tax liabilities 
44.24 	will be less than the monthly totals identified in paragraphs (a) and (b). An authorization 
44.25 	granted under this paragraph is subject to the same conditions as an authorization granted 
44.26 	under paragraphs (a) and (b).
44.27 	(d) The annual tax return and payments must be filed and paid on or before the 18th day 
44.28 	of January following the calendar year. The quarterly returns and payments must be filed 
44.29 	and paid on or before April 18 for the quarter ending March 31, on or before July 18 for 
44.30 	the quarter ending June 30, on or before October 18 for the quarter ending September 30, 
44.31 	and on or before January 18 for the quarter ending December 31.

44.32 	EFFECTIVE DATE. This section is effective January 1, 2026, for 2026 tax return 
44.33 	obligations.

45.1 	ARTICLE 4
45.2 	PROPERTY TAX AIDS

45.3 	Section 1. Minnesota Statutes 2024, section 290C.07, is amended to read:
45.4 	290C.07 CALCULATION OF INCENTIVE PAYMENT.
45.5 	(a) An approved claimant under the sustainable forest incentive program is eligible to 
45.6 	receive an annual payment for each acre of enrolled land, excluding any acre improved with 
45.7 	a paved trail under easement, lease, or terminable license to the state of Minnesota or a 
45.8 	political subdivision. The payment shall equal a percentage of the property tax that would 
45.9 	be paid on the land determined by using the previous year's statewide average total tax rate 
45.10 	for all taxes levied within townships and unorganized territories, the estimated market value 
45.11 	per acre as calculated in section 290C.06, and a class rate of one percent as follows: (1) for 
45.12 	claimants enrolling land that is subject to a conservation easement funded under section 
45.13 	97A.056 or a comparable permanent easement conveyed to a governmental or nonprofit 
45.14 	entity before May 31, 2013, 25 22.5 percent; (2) for claimants enrolling land that is not 
45.15 	subject to a conservation easement under an eight-year covenant, 65 58.5 percent; (3) for 
45.16 	claimants enrolling land that is not subject to a conservation easement under a 20-year 
45.17 	covenant, 90 81 percent; and (4) for claimants enrolling land that is not subject to a 
45.18 	conservation easement under a 50-year covenant, 115 103.5 percent.
45.19 	(b) The calculated payment must not increase or decrease by more than ten percent 
45.20 	relative to the payment received for the previous year. In no case may the payment be less 
45.21 	than 90 percent of the amount paid to the claimant for the land enrolled in the program in 
45.22 	2017. If an eligible claimant elects to change the length of the covenant on enrolled land 
45.23 	on or before May 15, 2019, the limits under this paragraph do not apply and the claimant 
45.24 	must receive payment in the amount corresponding to the new covenant length as calculated 
45.25 	under paragraph (a).
45.26 	(c) In addition to the payments provided under this section, a claimant enrolling more 
45.27 	than 1,920 acres shall be allowed an additional payment per acre equal to the amount 
45.28 	prescribed in paragraph (a), clause (1), for all acres of enrolled land on which public access 
45.29 	is allowed, as required under section 290C.03, paragraph (a), clause (6), excluding any land 
45.30 	subject to a conservation easement funded under section 97A.056, or a permanent easement 
45.31 	conveyed to a governmental or nonprofit entity that is required to allow for public access 
45.32 	under section 290C.03, paragraph (a), clause (6).

45.33 	EFFECTIVE DATE. This section is effective beginning for payments in calendar year 
45.34 	2027.

46.1 	Sec. 2. Minnesota Statutes 2024, section 290C.10, is amended to read:
46.2 	290C.10 WITHDRAWAL PROCEDURES.
46.3 	(a) The current owner of land enrolled under the sustainable forest incentive program 
46.4 	for a minimum of one-half the number of years of the covenant's minimum duration may 
46.5 	notify the commissioner of the intent to terminate enrollment. Within 90 days of receipt of 
46.6 	notice to terminate enrollment, the commissioner shall inform the claimant in writing, 
46.7 	acknowledging receipt of this notice and indicating the effective date of termination from 
46.8 	the sustainable forest incentive program. Termination of enrollment in the sustainable forest 
46.9 	incentive program occurs on January 1 of the calendar year following receipt by the 
46.10 	commissioner of the termination notice, but no earlier than January 1 of the fifth, 11th, or 
46.11 	26th calendar year for the eight-, 20-, or 50-year respective minimum covenant, subject to 
46.12 	the applicable covenant duration period under section 290C.055. After the commissioner 
46.13 	issues an effective date of termination, a claimant wishing to continue the land's enrollment 
46.14 	in the sustainable forest incentive program beyond the termination date must apply for 
46.15 	enrollment as prescribed in section 290C.04. A claimant who withdraws a parcel of land 
46.16 	from this program may not reenroll the parcel for a period of three years. Within 90 days 
46.17 	after the termination date, the commissioner shall execute and acknowledge a document 
46.18 	releasing the land from the covenant required under this chapter. The document must be 
46.19 	mailed to the claimant and is entitled to be recorded.
46.20 	(b) Notwithstanding paragraph (a), on request of the claimant, the commissioner may 
46.21 	allow early withdrawal from the Sustainable Forest Incentive Act without penalty when the 
46.22 	state of Minnesota, any local government unit, or any other entity which has the power of 
46.23 	eminent domain acquires title or possession to the land for a public purpose. In the case of 
46.24 	an eligible acquisition under this paragraph, the commissioner shall execute and acknowledge 
46.25 	a document releasing the land acquired by the state, local government unit, or other entity 
46.26 	from the covenant.
46.27 	(c) Notwithstanding paragraph (a), upon request of the claimant, the commissioner shall 
46.28 	allow early withdrawal from the Sustainable Forest Incentive Act without penalty when a 
46.29 	government or nonprofit entity acquires a permanent conservation easement on the enrolled 
46.30 	property and the conservation easement is at least as restrictive as the covenant required 
46.31 	under section 290C.04. The commissioner of natural resources must notify the commissioner 
46.32 	of lands acquired under this paragraph that are eligible for withdrawal. In the case of an 
46.33 	eligible easement acquisition under this paragraph, the commissioner shall execute and 
46.34 	acknowledge a document releasing the land subject to the easement from the covenant.
47.1 	(d) Notwithstanding paragraph (a), upon request of the claimant, the commissioner shall 
47.2 	allow early withdrawal from the Sustainable Forest Incentive Act without penalty for land 
47.3 	that is subject to fee or easement acquisition or lease to the state of Minnesota or a political 
47.4 	subdivision of the state for the public purpose of a paved trail. The commissioner of natural 
47.5 	resources must notify the commissioner of lands acquired under this paragraph that are 
47.6 	eligible for withdrawal. In the case of an eligible fee or easement acquisition or lease under 
47.7 	this paragraph, the commissioner shall execute and acknowledge a document releasing the 
47.8 	land subject to fee or easement acquisition or lease by the state or political subdivision of 
47.9 	the state.
47.10 	(e) Notwithstanding paragraph (a), as provided in section 290C.055, paragraph (c), on 
47.11 	request of the claimant, the commissioner must allow early withdrawal from the Sustainable 
47.12 	Forest Incentive Act without penalty: (1) if there is a reduction in payments due to changes 
47.13 	in the payment formula under section 290C.07; or (2) if, as a result of executive action, the 
47.14 	amount of payment a claimant is eligible to receive under section 290C.07 is reduced or 
47.15 	limited.
47.16 	(f) All other enrolled land must remain in the program.

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

47.18 	Sec. 3. Minnesota Statutes 2024, section 477A.013, subdivision 1, is amended to read:
47.19 		Subdivision 1.Towns. (a) In 2014 and thereafter, each town is eligible for a distribution 
47.20 	under this subdivision equal to the product of (i) its agricultural property factor, (ii) its town 
47.21 	area factor, (iii) its population factor, and (iv) 0.0045. As used in this subdivision, the 
47.22 	following terms have the meanings given them:
47.23 	(1) "agricultural property factor" means the ratio of the adjusted net tax capacity of 
47.24 	agricultural property located in a town, to the adjusted net tax capacity of all other property 
47.25 	located in the town. The agricultural property factor cannot exceed eight;
47.26 	(2) "agricultural property" means property classified under section 273.13, as homestead 
47.27 	and nonhomestead agricultural property, rural vacant land, and noncommercial seasonal 
47.28 	recreational property;
47.29 	(3) "town area factor" means the most recent estimate of total acreage, not to exceed 
47.30 	50,000 acres, located in the township available as of July 1 in the aid calculation year, 
47.31 	estimated or established by:
47.32 	(i) the United States Bureau of the Census;
48.1 	(ii) the State Land Management Information Center Minnesota Geospatial Information 
48.2 	Office; or
48.3 	(iii) the secretary of state; and
48.4 	(4) "population factor" means the square root of the town's population.; and
48.5 	(5) "town aid factor" means the product of the town's (i) agricultural property factor, (ii) 
48.6 	town area factor, and (iii) population factor.
48.7 	(b) If the sum of the aids payable to all towns under this subdivision exceeds the limit 
48.8 	under section 477A.03, subdivision 2c, the distribution to each town must be reduced 
48.9 	proportionately so that the total amount of aids distributed under this subdivision does not 
48.10 	exceed the limit in section 477A.03, subdivision 2c.
48.11 	(b) Each town is eligible for a distribution under this subdivision equal to the product 
48.12 	of (1) the total amount available for town aid under section 477A.03, subdivision 2c, and 
48.13 	(2) the ratio of (i) the town's town aid factor, to (ii) the sum of the town aid factors for all 
48.14 	towns.
48.15 	(c) Data used in calculating aids to towns under this subdivision, other than acreage, 
48.16 	shall be the most recently available data as of January 1 in the year in which the aid is 
48.17 	calculated.

48.18 	EFFECTIVE DATE. This section is effective for aids payable in 2026 and thereafter.

48.19 	Sec. 4. Minnesota Statutes 2024, section 477A.19, subdivision 5, is amended to read:
48.20 		Subd. 5.Appropriation. For aids payable in 2025 and 2026, $10,000,000 each year is 
48.21 	annually appropriated from the general fund to the commissioner of revenue to make the 
48.22 	payments required under this section. For aids payable in 2027 and thereafter, $5,000,000 
48.23 	is annually appropriated from the general fund to the commissioner of revenue to make the 
48.24 	payments required under this section.

48.25 	EFFECTIVE DATE. This section is effective for aids payable in 2026 and thereafter.

48.26 	Sec. 5. AID PENALTY FORGIVENESS.
 48.27 		Subdivision 1.City of Stewart. Notwithstanding Minnesota Statutes, section 477A.017, 
48.28 	subdivision 3, the city of Stewart must receive its aid payment for calendar year 2023 under 
48.29 	Minnesota Statutes, section 477A.013, that was withheld under Minnesota Statutes, section 
48.30 	477A.017, subdivision 3, provided the state auditor certifies to the commissioner of revenue 
48.31 	by June 16, 2025, that the state auditor received the annual financial reporting for 2022 
49.1 	from the city of Stewart by June 1, 2025. Upon certification from the state auditor to the 
49.2 	commissioner of revenue, the commissioner of revenue must make a payment of $87,501.50 
49.3 	to the city of Stewart by June 30, 2025.
49.4 		Subd. 2.City of Alpha. Notwithstanding Minnesota Statutes, section 477A.017, 
49.5 	subdivision 3, the city of Alpha must receive its aid payment for calendar year 2023 under 
49.6 	Minnesota Statutes, section 477A.013, that was withheld under Minnesota Statutes, section 
49.7 	477A.017, subdivision 3, provided the state auditor certifies to the commissioner of revenue 
49.8 	by June 16, 2025, that the state auditor received the annual financial reporting for 2022 
49.9 	from the city of Alpha by June 1, 2025. Upon certification from the state auditor to the 
49.10 	commissioner of revenue, the commissioner of revenue must make a payment of $18,472 
49.11 	to the city of Alpha by June 30, 2025.
49.12 		Subd. 3.City of Odin. Notwithstanding Minnesota Statutes, section 477A.017, 
49.13 	subdivision 3, the city of Odin must receive its aid payment for calendar year 2024 under 
49.14 	Minnesota Statutes, section 477A.013, that was withheld under Minnesota Statutes, section 
49.15 	477A.017, subdivision 3, and its small city assistance payment for calendar year 2024 under 
49.16 	Minnesota Statutes, section 162.145, that was withheld under Minnesota Statutes, section 
49.17 	162.145, subdivision 3, paragraph (c), provided the state auditor certifies to the commissioner 
49.18 	of revenue by June 16, 2025, that the state auditor received the annual financial reporting 
49.19 	for 2023 from the city of Odin by June 1, 2025. Upon certification from the state auditor to 
49.20 	the commissioner of revenue, the commissioner of revenue must make a payment of $39,909 
49.21 	to the city of Odin by June 30, 2025.
49.22 		Subd. 4.City of Trosky. Notwithstanding Minnesota Statutes, section 477A.017, 
49.23 	subdivision 3, the city of Trosky must receive its aid payment for calendar year 2024 under 
49.24 	Minnesota Statutes, section 477A.013, that was withheld under Minnesota Statutes, section 
49.25 	477A.017, subdivision 3, and its small city assistance payment for calendar year 2024 under 
49.26 	Minnesota Statutes, section 162.145, that was withheld under Minnesota Statutes, section 
49.27 	162.145, subdivision 3, paragraph (c), provided the state auditor certifies to the commissioner 
49.28 	of revenue by June 16, 2025, that the state auditor received the annual financial reporting 
49.29 	for 2023 from the city of Trosky by June 1, 2025. Upon certification from the state auditor 
49.30 	to the commissioner of revenue, the commissioner of revenue must make a payment of 
49.31 	$25,003 to the city of Trosky by June 30, 2025.
49.32 		Subd. 5.Appropriation. The amounts necessary to make the payments required under 
49.33 	subdivisions 1 and 2 are appropriated in fiscal year 2025 from the general fund to the 
49.34 	commissioner of revenue. This is a onetime appropriation.

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

50.2 	Sec. 6. BASE YEAR FORMULA AID FOR THE CITY OF BALDWIN.
 50.3 	For the calculation under Minnesota Statutes, section 477A.013, subdivisions 8 and 9, 
50.4 	for aids payable in 2026, the city of Baldwin's aid for 2025, used in calculating aid payable 
50.5 	in 2026, is deemed to be equal to $2.85 multiplied by Baldwin's 2023 population.

50.6 	EFFECTIVE DATE. This section is effective for aids payable in 2026 only.

50.7 	ARTICLE 5
50.8 	TAX INCREMENT FINANCING

50.9 	Section 1. Minnesota Statutes 2024, section 469.176, subdivision 4n, is amended to read:
50.10 		Subd. 4n.Temporary use of increment authorized. (a) Notwithstanding any other 
50.11 	provision of this section or any other law to the contrary, except the requirements to pay 
50.12 	bonds to which increments are pledged, the authority may elect, by resolution, to transfer 
50.13 	unobligated increment for one or more of the following purposes:
50.14 	(1) to provide improvements, loans, interest rate subsidies, or assistance in any form to 
50.15 	private development consisting of the construction or substantial rehabilitation of buildings 
50.16 	and ancillary facilities, if doing so will create or retain jobs in the state, including construction 
50.17 	jobs, and the construction commences before December 31, 2025 2026, and would not have 
50.18 	commenced before that date without the assistance; or
50.19 	(2) to make an equity or similar investment in a corporation, partnership, or limited 
50.20 	liability company that the authority determines is necessary to make construction of a 
50.21 	development that meets the requirement of clause (1) financially feasible.
50.22 	(b) For each calendar year for which transfers are permitted under this subdivision, the 
50.23 	maximum transfer equals the excess of the district's unobligated increment which includes 
50.24 	any increment not required for payments of obligations due during six months following 
50.25 	the transfer on outstanding bonds, binding contracts, and other outstanding financial 
50.26 	obligations of the district to which the district's increment is pledged.
50.27 	(c) The authority may transfer increments permitted under this subdivision after creating 
50.28 	a written spending plan that authorizes the authority to take the action described in paragraph 
50.29 	(a) and details the use of transferred increment, including the use of interest earned on 
50.30 	transferred increment. Additionally, the municipality must approve the authority's spending 
50.31 	plan after holding a public hearing. The municipality must publish notice of the hearing in 
50.32 	a newspaper of general circulation in the municipality and on the municipality's public 
51.1 	website at least ten days, but not more than 30 days, prior to the date of the hearing. Prior 
51.2 	to December 31, 2025, the municipality may amend a written spending plan to extend the 
51.3 	date by which transferred increment may be used, and to authorize use of interest earned 
51.4 	on transferred increment, after holding a public hearing as required in this section. A signed 
51.5 	and approved copy of the amended plan must be filed with the state auditor. Interest earned 
51.6 	on transferred increment may be treated the same as transferred increment regardless of 
51.7 	whether a municipality amends a spending plan.
51.8 	(d) Increment that is improperly retained, received, spent, or transferred is not eligible 
51.9 	for transfer under this subdivision.
51.10 	(e) An authority making a transfer under this subdivision must provide to the Office of 
51.11 	the State Auditor a copy of the spending plan approved and signed by the municipality.
51.12 	(f) The authority to transfer increments under this subdivision expires on December 31, 
51.13 	2022. All transferred increments must be spent, loaned, invested, or otherwise irrevocably 
51.14 	committed by December 31, 2025, or by December 31, 2026, if authorized by an amended 
51.15 	spending plan pursuant to paragraph (c). Increment not spent, loaned, invested, or otherwise 
51.16 	irrevocably committed by December 31, 2025 the applicable deadline in the preceding 
51.17 	sentence, must be returned to the district. The requirement to return increment to the district 
51.18 	includes any proceeds, principal, and interest received on loans of transferred increment; 
51.19 	interest or investment earnings on transferred increment; or other repayments or returns of 
51.20 	transferred increment defined as tax increment under section 469.174, subdivision 25, that 
51.21 	remain in the funds or accounts of the authority or municipality on the applicable deadline, 
51.22 	or that are subsequently received by the authority or municipality. If the district has already 
51.23 	been decertified when increment is returned under this paragraph, the increment shall be 
51.24 	treated as excess increment and distributed as provided in subdivision 2, paragraph (c), 
51.25 	clause (4).

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

51.27 	Sec. 2. Laws 2010, chapter 389, article 7, section 22, as amended by Laws 2011, chapter 
51.28 	112, article 11, section 16, is amended to read:
51.29 	Sec. 22. CITY OF RAMSEY; TAX INCREMENT FINANCING DISTRICT; 
51.30 	SPECIAL RULES.
 51.31 	(a) If the city of Ramsey or an authority of the city elects upon the adoption of a tax 
51.32 	increment financing plan for a district, the rules under this section apply to a redevelopment 
51.33 	tax increment financing district established by the city or an authority of the city. The 
52.1 	redevelopment tax increment district includes parcels within the area bounded on the east 
52.2 	by Ramsey Boulevard, on the north by Bunker Lake Boulevard as extended west to Llama 
52.3 	Street, on the west by Llama Street, and on the south by a line running parallel to and 600 
52.4 	feet south of the southerly right-of-way for U.S. Highway 10, but including Parcels 
52.5 	28-32-25-43-0007 and 28-32-25-34-0002 in their entirety, and excluding the Anoka County 
52.6 	Regional Park property in its entirety. A parcel within this area that is included in a tax 
52.7 	increment financing district that was certified before the date of enactment of this act may 
52.8 	be included in the district created under this act if the initial district is decertified.
52.9 	(b) The requirements for qualifying a redevelopment tax increment district under 
52.10 	Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcels located 
52.11 	within the district.
52.12 	(c) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district. 
52.13 	Eligible expenditures within the district include but are not limited to (1) the city's share of 
52.14 	the costs necessary to provide for the construction of the Northstar Transit Station and 
52.15 	related infrastructure, including structured parking, a pedestrian overpass, and roadway 
52.16 	improvements, (2) the cost of land acquired by the city or the housing and redevelopment 
52.17 	authority in and for the city of Ramsey within the district prior to the establishment of the 
52.18 	district, and (3) the cost of public improvements installed within the tax increment financing 
52.19 	district prior to the establishment of the district.
52.20 	(d) The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities 
52.21 	must be undertaken within a five-year period from the date of certification of a tax increment 
52.22 	financing district, is considered to be met for the district if the activities were undertaken 
52.23 	within ten years from the date of certification of the district.
52.24 	(e) Except for administrative expenses, the in-district percentage for purposes of the 
52.25 	restriction on pooling under Minnesota Statutes, section 469.1763, subdivision 2, for this 
52.26 	district is 100 percent.
52.27 	(f) The requirement of Minnesota Statutes, section 469.177, subdivision 4, does not 
52.28 	apply to Parcels 28-32-25-42-0021 and 28-32-25-41-0014, where development occurred 
52.29 	after enactment of Laws 2010, chapter 389, article 7, section 22, and prior to adoption of 
52.30 	the tax increment financing plan for the district.
52.31 	(g) The requirement of Minnesota Statutes, section 469.178, subdivision 7, paragraph 
52.32 	(b), is considered to be met for the district if the city adopts interfund loan resolutions 
52.33 	reflecting the terms and conditions required by Minnesota Statutes, section 469.178, 
52.34 	subdivision 7, paragraph (d), by December 31, 2025.

53.1 	EFFECTIVE DATE. This section is effective the day after the city of Ramsey and its 
53.2 	chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and 
53.3 	3.

53.4 	Sec. 3. Laws 2013, chapter 143, article 9, section 21, is amended to read:
53.5 	Sec. 21. CITY OF MAPLEWOOD; TAX INCREMENT FINANCING DISTRICT; 
53.6 	SPECIAL RULES.
 53.7 	(a) If the city of Maplewood elects, upon the adoption of a tax increment financing plan 
53.8 	for a district, the rules under this section apply to one or more redevelopment tax increment 
53.9 	financing districts established by the city or the economic development authority of the city. 
53.10 	The area within which the redevelopment tax increment districts may be created is parcel 
53.11 	362922240002 (the "parcel") or any replatted parcels constituting a part of the parcel and 
53.12 	the adjacent rights-of-way. For purposes of this section, the parcel is the "3M Renovation 
53.13 	and Retention Project Area" or "project area."
53.14 	(b) The requirements for qualifying redevelopment tax increment districts under 
53.15 	Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcel, which is 
53.16 	deemed eligible for inclusion in a redevelopment tax increment district.
53.17 	(c) The 90 percent rule under Minnesota Statutes, section 469.176, subdivision 4j, does 
53.18 	not apply to the parcel.
53.19 	(d) The expenditures outside district rule under Minnesota Statutes, section 469.1763, 
53.20 	subdivision 2, does not apply; the five-year rule under Minnesota Statutes, section 469.1763, 
53.21 	subdivision 3, is extended to ten years; and expenditures must only be made within the 
53.22 	project area or the area bounded by State Highway 61 to the West, Interstate Highway 694 
53.23 	to the North, White Bear Avenue to the East, and both sides of Beam Avenue to the South.
53.24 	(e) If, after one year from the date of certification of the original net tax capacity of the 
53.25 	tax increment district, no demolition, rehabilitation, or renovation of property has been 
53.26 	commenced on a parcel located within the tax increment district, no additional tax increment 
53.27 	may be taken from that parcel, and the original net tax capacity of the parcel shall be excluded 
53.28 	from the original net tax capacity of the tax increment district. If 3M Company subsequently 
53.29 	commences demolition, rehabilitation, or renovation, the authority shall certify to the county 
53.30 	auditor that the activity has commenced, and the county auditor shall certify the net tax 
53.31 	capacity thereof as most recently certified by the commissioner of revenue and add it to the 
53.32 	original net tax capacity of the tax increment district. The authority must submit to the 
54.1 	county auditor evidence that the required activity has taken place for each parcel in the 
54.2 	district.
54.3 	(f) The authority to approve a tax increment financing plan and to establish a tax 
54.4 	increment financing district under this section expires December 31, 2018.

54.5 	EFFECTIVE DATE. This section is effective the day after the city of Maplewood and 
54.6 	its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 
54.7 	and 3.

54.8 	Sec. 4. Laws 2014, chapter 308, article 6, section 9, as amended by Laws 2017, First 
54.9 	Special Session chapter 1, article 6, section 12, is amended to read:
54.10 	Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.
 54.11 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
54.12 	the meanings given them.
54.13 	(b) "City" means the city of Maple Grove.
54.14 	(c) "Project area" means all or a portion of the area in the city commencing at a point 
54.15 	130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of Section 
54.16 	23, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way 
54.17 	line of Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock 
54.18 	Lane to a point on the west line of the east one-half of the Southeast Quarter of section 23, 
54.19 	thence south along said west line a distance of 1,200 feet; thence easterly to the east line of 
54.20 	Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees 
54.21 	East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West a distance 
54.22 	of 650 feet; thence northerly to a point on the northerly right-of-way line of 81st Avenue 
54.23 	North, 650 feet westerly measured at right angles, from the east line of the Northwest Quarter 
54.24 	of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to the west 
54.25 	line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55 
54.26 	degrees West to the south line of the Northwest Quarter of the Northwest Quarter of Section 
54.27 	24; thence West along said south line to the east right-of-way line of Zachary Lane; thence 
54.28 	North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1, 
54.29 	Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of said 
54.30 	Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition; thence 
54.31 	South along the east line of said Outlot A and its southerly extension to the south right-of-way 
54.32 	line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way 
54.33 	line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter of 
55.1 	Section 24; thence South along said east line to the north line of the South Half of the 
55.2 	Northeast Quarter of Section 24; thence East along said north line to the westerly right-of-way 
55.3 	line of Jefferson Highway North; thence southerly along the westerly right-of-way line of 
55.4 	Jefferson Highway to the centerline of CSAH 130; thence continuing South along the west 
55.5 	right-of-way line of Pilgrim Lane North to the westerly extension of the north line of Outlot 
55.6 	A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park North 
55.7 	Fourth Addition to the northeast corner of said Outlot A; thence southerly along the east 
55.8 	line of said Outlot A to the southeast corner of said Outlot A; thence easterly along the south 
55.9 	line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line of State 
55.10 	Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the 
55.11 	westerly right-of-way line of State Highway 169 and the northerly right-of-way line of 
55.12 	Interstate 694 to its intersection with the southerly extension of the easterly right-of-way 
55.13 	line of Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary 
55.14 	Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence 
55.15 	westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning 
55.16 	and there terminating, provided that the project area includes the rights-of-way for all present 
55.17 	and future highway interchanges abutting the area described in this paragraph, and may 
55.18 	include any additional property necessary to cause the property included in the tax increment 
55.19 	financing district to consist of complete parcels.
55.20 	(d) "Soil deficiency district" means a type of tax increment financing district consisting 
55.21 	of a portion of the project area in which the city finds by resolution that the following 
55.22 	conditions exist:
55.23 	(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in 
55.24 	the district require substantial filling, grading, or other physical preparation for use; and
55.25 	(2) the estimated cost of the physical preparation under clause (1), but excluding costs 
55.26 	directly related to roads as defined in Minnesota Statutes, section 160.01, and local 
55.27 	improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, clauses 
55.28 	(1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land before 
55.29 	completion of the preparation.
55.30 		Subd. 2.Special rules. (a) If the city elects, upon the adoption of the tax increment 
55.31 	financing plan for a district, the rules under this section apply to a redevelopment district, 
55.32 	renewal and renovation district, soil condition district, or soil deficiency district established 
55.33 	by the city or a development authority of the city in the project area.
56.1 	(b) Prior to or upon the adoption of the first tax increment plan subject to the special 
56.2 	rules under this subdivision, the city must find by resolution that parcels consisting of at 
56.3 	least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way, 
56.4 	are characterized by one or more of the following conditions:
56.5 	(1) peat or other soils with geotechnical deficiencies that impair development of 
56.6 	commercial buildings or infrastructure;
56.7 	(2) soils or terrain that require substantial filling in order to permit the development of 
56.8 	commercial buildings or infrastructure;
56.9 	(3) landfills, dumps, or similar deposits of municipal or private waste;
56.10 	(4) quarries or similar resource extraction sites;
56.11 	(5) floodway; and
56.12 	(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174, 
56.13 	subdivision 10.
56.14 	(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the 
56.15 	relevant condition if at least 70 percent of the area of the parcel contains the relevant 
56.16 	condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by 
56.17 	substandard buildings if substandard buildings occupy at least 30 percent of the area of the 
56.18 	parcel.
56.19 	(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is 
56.20 	extended to eight 13 years for any district, and Minnesota Statutes, section 469.1763, 
56.21 	subdivision 4, does not apply to any district.
56.22 	(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763, 
56.23 	subdivision 2, paragraph (a), not more than 40 percent of the total revenue derived from tax 
56.24 	increments paid by properties in any district, measured over the life of the district, may be 
56.25 	expended on activities outside the district but within the project area.
56.26 	(f) For a soil deficiency district:
56.27 	(1) increments may be collected through 20 25 years after the receipt by the authority 
56.28 	of the first increment from the district;
56.29 	(2) increments may be used only to:
56.30 	(i) acquire parcels on which the improvements described in item (ii) will occur;
57.1 	(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional 
57.2 	cost of installing public improvements directly caused by the deficiencies; and
57.3 	(iii) pay for the administrative expenses of the authority allocable to the district; and
57.4 	(3) any parcel acquired with increments from the district must be sold at no less than 
57.5 	their fair market value.
57.6 	(g) Increments spent for any infrastructure costs, whether inside a district or outside a 
57.7 	district but within the project area, are deemed to satisfy the requirements of Minnesota 
57.8 	Statutes, section 469.176, subdivision 4j.
57.9 	(h) The authority to approve tax increment financing plans to establish tax increment 
57.10 	financing districts under this section expires June 30, 2020.
57.11 	(i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use 
57.12 	increments from a soil deficiency district to acquire parcels and for other infrastructure costs 
57.13 	either inside or outside of the district, but within the project area, if the acquisition or 
57.14 	infrastructure is for a qualified development. For purposes of this paragraph, a development 
57.15 	is a qualified development only if all of the following requirements are satisfied:
57.16 	(1) the city finds, by resolution, that the land acquisition and infrastructure are undertaken 
57.17 	primarily to serve the development;
57.18 	(2) the city has a binding, written commitment and adequate financial assurances from 
57.19 	the developer that the development will be constructed; and
57.20 	(3) the development does not consist of retail trade or housing improvements.

57.21 	EFFECTIVE DATE. (a) The amendment to subdivision 2, paragraph (d), is effective 
57.22 	the day after the governing body of the city of Maple Grove and its chief clerical officer 
57.23 	comply with the requirements of Minnesota Statutes, section 645.021, subdivisions 2 and 
57.24 	3.
57.25 	(b) The amendment to subdivision 2, paragraph (f), is effective upon compliance by the 
57.26 	city of Maple Grove, Hennepin County, and Independent School District No. 279 with the 
57.27 	requirements of Minnesota Statutes, section 469.1782, subdivision 2.

58.1 	Sec. 5. Laws 2017, First Special Session chapter 1, article 6, section 22, is amended to 
58.2 	read:
58.3 	Sec. 22. CITY OF ST. PAUL; FORD SITE REDEVELOPMENT TIF DISTRICT.
 58.4 	(a) For purposes of computing the duration limits under Minnesota Statutes, section 
58.5 	469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul 
58.6 	may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing 
58.7 	District. This authority is limited to the first four years of increment or increments derived 
58.8 	from taxes payable in 2023, whichever occurs first.
58.9 	(b) If the city elects to waive receipt of increment under paragraph (a), for purposes of 
58.10 	applying any limits based on when the district was certified under Minnesota Statutes, 
58.11 	section 469.176, subdivision 6, or 469.1763, the date of certification for the district is deemed 
58.12 	to be January 2 of the property tax assessment year for which increment is first received 
58.13 	under the waiver.
58.14 	(c) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is 
58.15 	extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision 
58.16 	4, relating to the use of increment after the expiration of the five-year period, is extended 
58.17 	to 11 years for the Ford Site Redevelopment Tax Increment Financing District in the city 
58.18 	of St. Paul.

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

58.22 	Sec. 6. CITY OF BLOOMINGTON; TEMPORARY USE OF INCREMENT; 
58.23 	EXTENSION.
 58.24 	(a) Notwithstanding Minnesota Statutes, section 469.176, subdivision 4n, the city of 
58.25 	Bloomington may amend its spending plan to spend, loan, or invest transferred increment, 
58.26 	including any interest or investment earnings on such transferred increment, as authorized 
58.27 	under Minnesota Statutes, section 469.176, subdivision 4n, through December 31, 2027, 
58.28 	provided that:
58.29 	(1) construction commences prior to December 31, 2027;
58.30 	(2) the transferred increment was collected from and used in TIF District No. 1-C or 
58.31 	TIF District No. 1-G, in the city of Bloomington; and
59.1 	(3) the use of the transferred increment is detailed in the city's written spending plan 
59.2 	adopted pursuant to Minnesota Statutes, section 469.176, subdivision 4n, paragraph (c).
59.3 	(b) Increment not spent, loaned, or invested by December 31, 2027, must be returned 
59.4 	to the district. The requirement to return increment to the district includes any proceeds, 
59.5 	principal, and interest received on loans of transferred increment; interest or investment 
59.6 	earnings on transferred increment; or other repayments or returns of transferred increment 
59.7 	defined as tax increment under Minnesota Statutes, section 469.174, subdivision 25, that 
59.8 	remain in the funds or accounts of the authority or municipality on December 31, 2027, or 
59.9 	that are subsequently received by the authority or municipality.
59.10 	(c) If the city amends its spending plan pursuant to paragraph (a), the city must provide 
59.11 	a copy of its amended spending plan to the legislative committees with jurisdiction over 
59.12 	tax increment financing within 30 days.

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

59.16 	Sec. 7. CITY OF BROOKLYN CENTER; TIF AUTHORITY.
 59.17 		Subdivision 1.Establishment. Under the special rules established in subdivision 2, the 
59.18 	economic development authority of the city of Brooklyn Center or the city of Brooklyn 
59.19 	Center may establish not more than two redevelopment tax increment financing districts 
59.20 	located wholly within the area in the city identified as the "Opportunity Site," which includes 
59.21 	the area bounded by Shingle Creek Parkway from Hennepin County State-Aid Highway 
59.22 	10 to Summit Drive North; Summit Drive North from Shingle Creek Parkway to marked 
59.23 	Trunk Highway 100; marked Trunk Highway 100 from Summit Drive North to Hennepin 
59.24 	County State-Aid Highway 10; and Hennepin County State-Aid Highway 10 from marked 
59.25 	Trunk Highway 100 to Shingle Creek Parkway, together with internal and adjacent roads 
59.26 	and rights of way.
59.27 		Subd. 2.Special rules. If the city or the authority establishes a tax increment financing 
59.28 	district under this section, the following special rules apply:
59.29 	(1) the district is deemed to meet all the requirements of Minnesota Statutes, section 
59.30 	469.174, subdivision 10; and
59.31 	(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
59.32 		Subd. 3.Expiration. The authority to approve a tax increment financing plan to establish 
59.33 	a tax increment financing district under this section expires on December 31, 2031.

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

60.4 	Sec. 8. CITY OF BROOKLYN PARK; TIF AUTHORITY; 610/ZANE AREA.
 60.5 		Subdivision 1.Establishment of districts. Under the special rules established in 
60.6 	subdivision 2, the economic development authority of the city of Brooklyn Park or the city 
60.7 	of Brooklyn Park may establish not more than two redevelopment districts located wholly 
60.8 	within the area of the city of Brooklyn Park. The districts may be composed of the following 
60.9 	parcels identified by their current parcel identification numbers together with adjacent and 
60.10 	internal roads and rights-of-way:

60.11	0811921410009
	0811921440008
	0911921210097
	0911921210099
	0911921220014
	
60.12	0911921220015
	0911921220068
	0911921230005
	0911921320016
	0911921320021
	
60.13	0911921320024
	0911921330006
	0911921340015
	0911921340016
	0911921430009
	
60.14	0911921430010
	0911921430011
	0911921430012
	0911921430016
	0911921430023
	
60.15	0911921430027
	0911921430043
	0911921430047
	0911921430050
	0911921430051
	
60.16	0911921430052
	0911921430056
	0911921430066
	0911921430070
	0911921430074
	
60.17	0911921430075
	0911921430079
	0911921430084
	0911921430085
	0911921430089
	
60.18	0911921430091
	0911921430092
	0911921430096
	0911921430101
	0911921430106
	
60.19	0911921430109
	0911921430111
	0911921430116
	0911921430119
	0911921120005
	
60.20	0911921210007
	0911921230008
	0911921230049
	0911921240006
	0911921240009
	
60.21	0911921320018
	0911921330009
	0911921430006
	0911921430014
	0911921430015
	
60.22	0911921430019
	0911921430020
	0911921430028
	0911921430030
	0911921430033
	
60.23	0911921430037
	0911921430038
	0911921430040
	0911921430048
	0911921430054
	
60.24	0911921430055
	0911921430059
	0911921430069
	0911921430071
	0911921430072
	
60.25	0911921430076
	0911921430080
	0911921430081
	0911921430082
	0911921430083
	
60.26	0911921430086
	0911921430087
	0911921430088
	0911921430094
	0911921430095
	
60.27	0911921430099
	0911921430104
	0911921430114
	0911921210006
	0911921210096
	
60.28	0911921210100
	0911921210101
	0911921220008
	0911921220017
	0911921230014
	
60.29	0911921230015
	0911921240004
	0911921240007
	0911921310010
	0911921310011
	
60.30	0911921310012
	0911921330010
	0911921330012
	0911921340009
	0911921430013
	
60.31	0911921430017
	0911921430021
	0911921430022
	0911921430026
	0911921430031
	
60.32	0911921430032
	0911921430036
	0911921430041
	0911921430042
	0911921430046
	
60.33	0911921430053
	0911921430057
	0911921430064
	0911921430065
	0911921430073
	
60.34	0911921430077
	0911921430078
	0911921430100
	0911921430105
	0911921430107
	
60.35	0911921430108
	0911921430110
	0911921430115
	0911921430117
	0911921430118
	
60.36	0811921140050
	0811921140051
	0911921210005
	0911921210095
	0911921220070
	
61.1	0911921220071
	0911921230009
	0911921230010
	0911921230011
	0911921230012
	
61.2	0911921230013
	0911921240005
	0911921240008
	0911921310007
	0911921310009
	
61.3	0911921320023
	0911921330008
	0911921330011
	0911921340008
	0911921340014
	
61.4	0911921340017
	0911921430018
	0911921430024
	0911921430025
	0911921430029
	
61.5	0911921430034
	0911921430035
	0911921430039
	0911921430044
	0911921430045
	
61.6	0911921430049
	0911921430058
	0911921430060
	0911921430061
	0911921430062
	
61.7	0911921430063
	0911921430067
	0911921430068
	0911921430090
	0911921430093
	
61.8	0911921430097
	0911921430098
	0911921430102
	0911921430103
	0911921430112
	
61.9	0911921430113
	0911921430120
	1011921330022
			
61.10 		Subd. 2.Special rules. If the city or the authority establishes a tax increment financing 
61.11 	district under subdivision 1, the following special rules apply:
61.12 	(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section 
61.13 	469.174, subdivision 10; and
61.14 	(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
61.15 		Subd. 3.Expiration. The authority to approve a tax increment financing plan to establish 
61.16 	a tax increment finance district under this section expires on December 31, 2031.

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

61.20 	Sec. 9. CITY OF BROOKLYN PARK; TIF AUTHORITY; BIOTECH AREA.
 61.21 		Subdivision 1.Establishment of districts. Under the special rules established in 
61.22 	subdivision 2, the economic development authority of the city of Brooklyn Park or the city 
61.23 	of Brooklyn Park may establish not more than two redevelopment districts located wholly 
61.24 	within the area of the city of Brooklyn Park. The districts may be composed of the following 
61.25 	parcels identified by their current parcel identification numbers together with adjacent and 
61.26 	internal roads and rights-of-way:

61.27	0711921110003
	0711921120006
	0711921110007
	0711921140001
	0711921140002
	
61.28	0711921140007
	0711921240002
	0711921240004
	0711921110004
	0711921110006
	
61.29	0711921110008
	0711921120005
	0711921130005
	0711921140005
	0711921140006
	
61.30	0711921210003
	0811921230002
	0811921230004
	0711921110005
	0711921120009
	
61.31	0711921220003
	0711921230001
	0711921230002
	0811921220002
		
61.32 		Subd. 2.Special rules. If the city or the authority establishes a tax increment financing 
61.33 	district under subdivision 1, the following special rules apply:
62.1 	(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section 
62.2 	469.174, subdivision 10; and
62.3 	(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
62.4 		Subd. 3.Expiration. The authority to approve a tax increment financing plan to establish 
62.5 	a tax increment finance district under this section expires on December 31, 2031.

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

62.9 	Sec. 10. CITY OF BROOKLYN PARK; TIF AUTHORITY; BROOKLYN 
62.10 	BOULEVARD/WEST BROADWAY AREA.
 62.11 		Subdivision 1.Establishment of districts. Under the special rules established in 
62.12 	subdivision 2, the economic development authority of the city of Brooklyn Park or the city 
62.13 	of Brooklyn Park may establish not more than two redevelopment tax increment financing 
62.14 	districts located wholly within the area of the city of Brooklyn Park. The districts may be 
62.15 	composed of the following parcels identified by their current parcel identification numbers 
62.16 	together with adjacent and internal roads and rights-of-way:

62.17	2011921430092
	2011921430099
	2011921440089
	2011921430101
	2011921440088
	
62.18	2911921120001
	2911921120004
	2911921120032
	2911921110004
	2911921120005
	
62.19	2011921430093
	2011921430100
	2011921430102
	2011921430103
	2911921110118
	
62.20	2911921120006
	2911921120043
	2011921340022
	2011921340027
	2011921340036
	
62.21	2011921340038
	2011921340042
	2011921340047
	2011921340048
	2011921340070
	
62.22	2011921340071
	2011921340026
	2011921340037
	2011921340046
	2011921340050
	
62.23	2011921340069
	2011921340075
	2011921340079
	2011921340080
	2011921330004
	
62.24	2011921330005
	2011921330006
	2011921330012
	2011921340024
	2011921340025
	
62.25	2011921340029
	2011921340044
	2011921340066
	2011921340068
	2011921340073
	
62.26	2011921340076
	2011921340078
	2911921210023
	2911921210030
	2911921210040
	
62.27	2911921210042
	2911921210051
	2911921210052
	2911921210054
	2911921210056
	
62.28	2911921210057
	2911921210063
	2911921210074
	2911921210077
	2911921210078
	
62.29	2911921210079
	2911921210090
	2911921220010
	2911921220012
	2911921220021
	
62.30	2911921220023
	2911921220025
	2911921240102
	2911921240117
	2911921240132
	
62.31	2911921210021
	2911921210024
	2911921210025
	2911921210026
	2911921210027
	
62.32	2911921210028
	2911921210029
	2911921210034
	2911921210035
	2911921210037
	
62.33	2911921210038
	2911921210039
	2911921210053
	2911921210061
	2911921210062
	
62.34	2911921210066
	2911921210070
	2911921210073
	2911921210081
	2911921210082
	
63.1	2911921210086
	2911921210094
	2911921210105
	2911921210106
	2911921220011
	
63.2	2911921220020
	2911921220022
	2911921220028
	2911921240101
	2911921240104
	
63.3	2911921240105
	2911921240106
	2911921240109
	2911921240134
	2911921210007
	
63.4	2911921210050
	2911921210055
	2911921210058
	2911921210059
	2911921210071
	
63.5	2911921210083
	2911921210104
	2911921240095
	2911921240099
	2911921240118
	
63.6	2011921320010
	2011921330003
	2011921330007
	2011921340023
	2011921340028
	
63.7	2011921340034
	2011921340035
	2011921340039
	2011921340040
	2011921340043
	
63.8	2011921340045
	2011921340049
	2011921340077
	2911921210022
	2911921210031
	
63.9	2911921210032
	2911921210033
	2911921210036
	2911921210041
	2911921210060
	
63.10	2911921210064
	2911921210065
	2911921210067
	2911921210068
	2911921210069
	
63.11	2911921210080
	2911921210084
	2911921210085
	2911921210087
	2911921210088
	
63.12	2911921210089
	2911921210091
	2911921210092
	2911921210093
	2911921210096
	
63.13	2911921210103
	2911921210111
	2911921220024
	2911921220026
	2911921220029
	
63.14	2911921240100
	2911921240103
	2911921240107
	2911921240133
	2911921240135
	
63.15	3011921110009
	3011921110007
				
63.16 	and the following roadways within the city of Brooklyn Park: Brooklyn Boulevard (from 
63.17 	and including the intersection at Highway 169 to and including the intersection at Kentucky 
63.18 	Avenue North) and West Broadway Avenue (from and including the intersection at 75th 
63.19 	Avenue and to and including the intersection at 78th Avenue).
63.20 		Subd. 2.Special rules. If the city or the authority establishes a tax increment financing 
63.21 	district under subdivision 1, the following special rules apply:
63.22 	(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section 
63.23 	469.174, subdivision 10; and
63.24 	(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
63.25 		Subd. 3.Expiration. The authority to approve a tax increment financing plan to establish 
63.26 	a tax increment finance district under this section expires on December 31, 2031.

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

63.30 	Sec. 11. CITY OF EDEN PRAIRIE; TAX INCREMENT FINANCING AUTHORITY; 
63.31 	EDEN PRAIRIE CENTER.
 63.32 		Subdivision 1.Establishment. Pursuant to the special rules established in subdivision 
63.33 	2, the economic development authority of the city of Eden Prairie or the city of Eden Prairie 
63.34 	may establish not more than two redevelopment districts located within the area of the city 
64.1 	of Eden Prairie consisting of parcels, together with adjacent roads and rights-of-way, within 
64.2 	the area surrounded by Flying Cloud Drive, West 78th Street, and Prairie Center Drive.
64.3 		Subd. 2.Special rules. If the city or authority establishes a tax increment financing 
64.4 	district under this section, the following special rules apply:
64.5 	(1) the districts are deemed to meet the requirements of Minnesota Statutes, section 
64.6 	469.174, subdivision 10; and
64.7 	(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
64.8 		Subd. 3.Expiration. The authority to approve a tax increment financing plan to establish 
64.9 	a tax increment financing district under this section expires December 31, 2026.

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

64.13 	Sec. 12. CITY OF EDINA; 70TH & FRANCE TIF DISTRICT; FIVE-YEAR RULE 
64.14 	EXTENSION; DURATION EXTENSION.
 64.15 	(a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is 
64.16 	extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision 
64.17 	4, relating to the use of increment after the expiration of the five-year period, is extended 
64.18 	to 11 years for Tax Increment Financing District 70th & France in the city of Edina.
64.19 	(b) Notwithstanding Minnesota Statutes, section 469.176, subdivisions 1b and 1d, the 
64.20 	city of Edina or its housing and redevelopment authority may elect to extend the duration 
64.21 	of the district by ten years for Tax Increment Financing District 70th & France.

64.22 	EFFECTIVE DATE. Paragraph (a) is effective the day after the governing body of the 
64.23 	city of Edina and its chief clerical officer comply with the requirements of Minnesota 
64.24 	Statutes, section 645.021, subdivisions 2 and 3. Paragraph (b) is effective upon compliance 
64.25 	by the governing bodies of the city of Edina, Hennepin County, and Independent School 
64.26 	District No. 273 with the requirements of Minnesota Statutes, section 469.1782, subdivision 
64.27 	2.

64.28 	Sec. 13. CITY OF EDINA; 72ND & FRANCE 2 TIF DISTRICT; FIVE-YEAR RULE 
64.29 	EXTENSION; DURATION EXTENSION.
 64.30 	(a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is 
64.31 	extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision 
65.1 	4, relating to the use of increment after the expiration of the five-year period, is extended 
65.2 	to 11 years for Tax Increment Financing District 72nd & France 2 in the city of Edina.
65.3 	(b) Notwithstanding Minnesota Statutes, section 469.176, subdivisions 1b and 1d, the 
65.4 	city of Edina or its housing and redevelopment authority may elect to extend the duration 
65.5 	of the district by five years for Tax Increment Financing District 72nd & France 2.

65.6 	EFFECTIVE DATE. Paragraph (a) is effective the day after the governing body of the 
65.7 	city of Edina and its chief clerical officer comply with the requirements of Minnesota 
65.8 	Statutes, section 645.021, subdivisions 2 and 3. Paragraph (b) is effective upon compliance 
65.9 	by the governing bodies of the city of Edina, Hennepin County, and Independent School 
65.10 	District No. 273 with the requirements of Minnesota Statutes, section 469.1782, subdivision 
65.11 	2.

65.12 	Sec. 14. CITY OF MARSHALL; TEMPORARY USE OF INCREMENT; 
65.13 	EXTENSION.
 65.14 	(a) Notwithstanding Minnesota Statutes, section 469.176, subdivision 4n, paragraph (f), 
65.15 	the city of Marshall may elect to spend, loan, or invest transferred increment, including any 
65.16 	interest or investment earnings on such transferred increment, as authorized under Minnesota 
65.17 	Statutes, section 469.176, subdivision 4n, through December 31, 2027, provided that the 
65.18 	transferred increment was collected from TIF District No. 1-1, TIF District No. 1-7, or TIF 
65.19 	District No. 2-1, in the city of Marshall, and the use of the transferred increment is detailed 
65.20 	in the city's written spending plan adopted pursuant to Minnesota Statutes, section 469.176, 
65.21 	subdivision 4n, paragraph (c).
65.22 	(b) Increment not spent, loaned, or invested by December 31, 2027, must be returned 
65.23 	to the district. The requirement to return increment to the district includes any proceeds, 
65.24 	principal, and interest received on loans of transferred increment; interest or investment 
65.25 	earnings on transferred increment; or other repayments or returns of transferred increment 
65.26 	defined as tax increment under Minnesota Statutes, section 469.174, subdivision 25, that 
65.27 	remain in the funds or accounts of the authority or municipality on December 31, 2027, or 
65.28 	that are subsequently received by the authority or municipality.

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

66.1 	Sec. 15. CITY OF MINNETONKA; OPUS TIF DISTRICT; FIVE-YEAR RULE 
66.2 	EXTENSION.
 66.3 	(a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is 
66.4 	extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision 
66.5 	4, relating to the use of increment after the expiration of the five-year period, is extended 
66.6 	to 11 years for the Opus tax increment financing district established in 2021 by the economic 
66.7 	development authority in the city of Minnetonka.
66.8 	(b) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.

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

66.12 	Sec. 16. CITY OF MOORHEAD; TAX INCREMENT FINANCING DISTRICT 
66.13 	NO. 31; FIVE-YEAR RULE EXTENSION.
 66.14 	The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is 
66.15 	extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision 
66.16 	4, relating to the use of increment after the expiration of the five-year period, is extended 
66.17 	to 11 years for Tax Increment Financing District No. 31 in the city of Moorhead.

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

66.21 	Sec. 17. CITY OF OAKDALE; TEMPORARY USE OF INCREMENT; EXTENSION.
 66.22 	(a) Notwithstanding Minnesota Statutes, section 469.176, subdivision 4n, paragraph (f), 
66.23 	the city of Oakdale may elect to spend, loan, or invest transferred increment, including any 
66.24 	interest or investment earnings on such transferred increment, as authorized under Minnesota 
66.25 	Statutes, section 469.176, subdivision 4n, through December 31, 2027, provided that the 
66.26 	transferred increment was collected from TIF District No. 1-4 or TIF District No. 1-6, in 
66.27 	the city of Oakdale, and the use of the transferred increment is detailed in the city's written 
66.28 	spending plan adopted pursuant to Minnesota Statutes, section 469.176, subdivision 4n, 
66.29 	paragraph (c).
66.30 	(b) Increment not spent, loaned, or invested by December 31, 2027, must be returned 
66.31 	to the district. The requirement to return increment to the district includes any proceeds, 
66.32 	principal, and interest received on loans of transferred increment; interest or investment 
67.1 	earnings on transferred increment; or other repayments or returns of transferred increment 
67.2 	defined as tax increment under Minnesota Statutes, section 469.174, subdivision 25, that 
67.3 	remain in the funds or accounts of the authority or municipality on December 31, 2027, or 
67.4 	that are subsequently received by the authority or municipality.

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

67.8 	Sec. 18. CITY OF PLYMOUTH; TAX INCREMENT FINANCING; 
67.9 	ESTABLISHMENT.
 67.10 		Subdivision 1.Establishment. Under the special rules established in subdivision 2, the 
67.11 	city of Plymouth may establish not more than two redevelopment districts located wholly 
67.12 	within the city of Plymouth, Hennepin County, Minnesota, limited to the area identified as 
67.13 	the city center district in the Plymouth, Minnesota Zoning Map in effect on January 1, 2024, 
67.14 	and adopted pursuant to section 21000.12 of the Plymouth Zoning Code of Ordinances.
67.15 		Subd. 2.Special rules. If the city establishes a tax increment financing district under 
67.16 	this section, the following special rules apply:
67.17 	(1) the district is deemed to meet the requirements of Minnesota Statutes, section 469.174, 
67.18 	subdivision 10;
67.19 	(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district; 
67.20 	and
67.21 	(3) the five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is 
67.22 	extended to ten years, and the period under Minnesota Statutes, section 469.1763, subdivision 
67.23 	4, relating to the use of increment after the expiration of the five-year period, is extended 
67.24 	to 11 years.
67.25 		Subd. 3.Expiration. The authority to approve a tax increment financing plan to establish 
67.26 	a tax increment financing district under this section expires December 31, 2031.

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

68.1 	Sec. 19. CITY OF ST. CLOUD; TAX INCREMENT FINANCING; 
68.2 	ESTABLISHMENT.
 68.3 		Subdivision 1.Establishment. Under the special rules established in subdivision 2, the 
68.4 	economic development authority of the city of St. Cloud or the city of St. Cloud may establish 
68.5 	not more than two redevelopment districts adjacent to the Division Street corridor or within 
68.6 	the Central Business District or Fringe Central District, limited to the following parcels 
68.7 	identified by tax identification numbers, together with the adjacent roads and rights-of-way:
68.8 	(1) in Stearns County: 82517020000 (Lady Slipper Catalyst Site); 82515440001 (North 
68.9 	Riverfront Catalyst Site); 82515470000; 82515480000 (Empire Catalyst Site); 82518760015 
68.10 	(Swan Lot Catalyst Site); 82528850020 (Riverboat Lot Catalyst Site); 82528850001 (Former 
68.11 	Herberger's); 82528850065 (Former Herberger's); 82528850005 (Former Herberger's); 
68.12 	82528850053; 82528850050; 82528850048 (Former Press Bar/Cowboy Jacks Lots); and
68.13 	(2) in Benton County: 170037810 (Transit Oriented Development Catalyst Site); 
68.14 	170058101 (Ace Block Catalyst Site); 170042000; 170041600; 170041100; 170041601; 
68.15 	170041200; 170041800; 170059600 (Star Bank Catalyst Site); 170059300 (Riverfront South 
68.16 	Catalyst Site); 170058300; 170059200; 170058600; 170058800; 170059100; 170058900; 
68.17 	1700113900 (Transit Oriented Development Catalyst Site); 170060600; 170060700; and 
68.18 	170060800 (EDA Parking Lot & adjacent sites).
68.19 		Subd. 2.Special rules. If the city or authority establishes a tax increment financing 
68.20 	district under this section, the following special rules apply:
68.21 	(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section 
68.22 	469.174, subdivision 10;
68.23 	(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district; 
68.24 	and
68.25 	(3) increments generated from the districts may be expended for the reconstruction, 
68.26 	expansion, or new construction of adjacent public infrastructure, including but not limited 
68.27 	to public parking, streets, and utilities necessary to serve the development, and all 
68.28 	expenditures under this clause are deemed expended on activities within the district for 
68.29 	purposes of Minnesota Statutes, section 469.1763.
68.30 		Subd. 3.Expiration. The authority to approve a tax increment financing plan to establish 
68.31 	a tax increment financing district under this section expires on December 31, 2031.

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

69.4 	Sec. 20. CITY OF ST. CLOUD; COOPER AVENUE REDEVELOPMENT TAX 
69.5 	INCREMENT FINANCING DISTRICT; FIVE-YEAR RULE EXTENSION.
 69.6 	The following special rule applies for the Cooper Avenue Redevelopment Tax Increment 
69.7 	Financing District administered by the city of St. Cloud. The requirement of Minnesota 
69.8 	Statutes, section 469.1763, subdivision 3, that activities must be undertaken within a five-year 
69.9 	period from the date of certification of a tax increment financing district, is extended by a 
69.10 	five-year period to April 30, 2031. Beginning in 2032, the requirements of Minnesota 
69.11 	Statutes, section 469.1763, subdivision 4, apply to the district.

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

69.15 	ARTICLE 6
69.16 	LOCAL SALES AND USE TAXES

69.17 	Section 1. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by 
69.18 	Laws 2006, chapter 259, article 3, section 3, Laws 2011, First Special Session chapter 7, 
69.19 	article 4, section 4, and Laws 2017, First Special Session chapter 1, article 5, section 6, is 
69.20 	amended to read:
69.21 		Subdivision 1.Sales tax authorized. (a) Notwithstanding Minnesota Statutes, section 
69.22 	477A.016, or any other contrary provision of law, ordinance, or city charter, the city of 
69.23 	Hermantown may, by ordinance, impose an additional sales tax of up to one percent on 
69.24 	sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur within 
69.25 	the city. The proceeds of the tax imposed under this section must be used to meet the costs 
69.26 	of:
69.27 	(1) extending a sewer interceptor line lines;
69.28 	(2) construction of a booster pump station stations, reservoirs, and related improvements 
69.29 	to the water system; and
69.30 	(3) construction of a building containing a police and fire station and an administrative 
69.31 	services facility.
70.1 	(b) If the city imposed a sales tax of only one-half of one percent under paragraph (a), 
70.2 	it may increase the tax to one percent to fund the purposes under paragraph (a) provided it 
70.3 	is approved by the voters at a general election held before December 31, 2012.
70.4 	(c) As approved by the voters at the November 8, 2016, general election, the proceeds 
70.5 	under this section may also be used to meet the costs of debt service payments for 
70.6 	construction of the Hermantown Wellness Center.

70.7 	EFFECTIVE DATE. This section is effective the day following final enactment without 
70.8 	local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.

70.9 	Sec. 2. Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by Laws 
70.10 	2006, chapter 259, article 3, section 4, and Laws 2017, First Special Session chapter 1, 
70.11 	article 5, section 7, is amended to read:
70.12 		Subd. 4.Termination. The tax authorized under this section terminates at the earlier of 
70.13 	(1) December 31, 2036 2046, or (2) when the Hermantown City Council first determines 
70.14 	that sufficient funds have been received from the tax to fund the costs, including bonds and 
70.15 	associated bond costs for the uses specified in subdivision 1. Any funds remaining after 
70.16 	completion of the improvements and retirement or redemption of the bonds may be placed 
70.17 	in the general fund of the city.

70.18 	EFFECTIVE DATE. This section is effective the day following final enactment without 
70.19 	local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.

70.20 	ARTICLE 7
70.21 	PUBLIC FINANCE

70.22 	Section 1. Minnesota Statutes 2024, section 373.40, subdivision 2, is amended to read:
70.23 		Subd. 2.Application of election requirement. (a) Bonds issued by a county to finance 
70.24 	capital improvements under an approved capital improvement plan are not subject to the 
70.25 	election requirements of section 375.18 or 475.58. The bonds must be approved by vote of 
70.26 	at least three-fifths of the members of the county board. In the case of a metropolitan county, 
70.27 	the bonds must be approved by vote of at least two-thirds of the members of the county 
70.28 	board.
70.29 	(b) Before issuance of bonds qualifying under this section, the county must publish a 
70.30 	notice of its intention to issue the bonds and the date and time of a hearing to obtain public 
70.31 	comment on the matter. The notice must be published in the official newspaper of the county 
71.1 	or in a newspaper of general circulation in the county. The notice must be published at least 
71.2 	14 ten, but not more than 28, days before the date of the hearing.
71.3 	(c) A county may issue the bonds only upon obtaining the approval of a majority of the 
71.4 	voters voting on the question of issuing the obligations, if a petition requesting a vote on 
71.5 	the issuance is signed by voters equal to five percent of the votes cast in the county in the 
71.6 	last county general election and is filed with the county auditor within 30 days after the 
71.7 	public hearing. If the county elects not to submit the question to the voters, the county shall 
71.8 	not propose the issuance of bonds under this section for the same purpose and in the same 
71.9 	amount for a period of 365 days from the date of receipt of the petition. If the question of 
71.10 	issuing the bonds is submitted and not approved by the voters, the provisions of section 
71.11 	475.58, subdivision 1a, shall apply.

71.12 	Sec. 2. Minnesota Statutes 2024, section 446A.086, subdivision 1, is amended to read:
71.13 		Subdivision 1.Definitions. (a) As used in this section, the following terms have the 
71.14 	meanings given.
71.15 	(b) "Authority" means the Minnesota Public Facilities Authority.
71.16 	(c) "Commissioner" means the commissioner of management and budget.
71.17 	(d) "Debt obligation" means:
71.18 	(1) a general obligation bond or note issued by a county, a bond or note to which the 
71.19 	general obligation of a county is pledged under section 469.034, subdivision 2, or a bond 
71.20 	or note payable from a county lease obligation under section 641.24, to provide funds for 
71.21 	the construction of:
71.22 	(i) jails;
71.23 	(ii) correctional facilities;
71.24 	(iii) law enforcement facilities;
71.25 	(iv) a courthouse or justice center, if connected to a jail, correctional facility, or other 
71.26 	law enforcement facility;
71.27 	(iv) (v) social services and human services facilities;
71.28 	(v) (vi) solid waste facilities; or
71.29 	(vi) (vii) qualified housing development projects as defined in section 469.034, 
71.30 	subdivision 2; or
72.1 	(2) a general obligation bond or note issued by a governmental unit to provide funds for 
72.2 	the construction, improvement, or rehabilitation of:
72.3 	(i) wastewater facilities;
72.4 	(ii) drinking water facilities;
72.5 	(iii) stormwater facilities; or
72.6 	(iv) any publicly owned building or infrastructure improvement that has received partial 
72.7 	funding from grants awarded by the commissioner of employment and economic development 
72.8 	related to redevelopment, contaminated site cleanup, bioscience, small cities development 
72.9 	programs, and rural business infrastructure programs, for which bonds are issued by the 
72.10 	authority under section 446A.087.
72.11 	(e) "Governmental unit" means a county or a statutory or home rule charter city.

72.12 	Sec. 3. Minnesota Statutes 2024, section 446A.086, subdivision 2, is amended to read:
72.13 		Subd. 2.Application. (a) This section provides a state guarantee of the payment of 
72.14 	principal and interest on debt obligations if:
72.15 	(1) the obligations are issued for new projects or the refunding at a net present value 
72.16 	savings of debt service costs of obligations that are currently guaranteed pursuant to this 
72.17 	section and are not issued for the purposes of refunding previous obligations other than as 
72.18 	described in this sentence;
72.19 	(2) application to the Public Facilities Authority is made before issuance; and
72.20 	(3) the obligations are covered by an agreement meeting the requirements of subdivision 
72.21 	3.
72.22 	(b) Applications to be covered by the provisions of this section must be made in a form 
72.23 	and contain the information prescribed by the authority. Applications are subject to either 
72.24 	a fee of $500 for each bond issue requested by a county or governmental unit or the applicable 
72.25 	fees under section 446A.087.
72.26 	(c) Application fees paid under this section must be deposited in a separate credit 
72.27 	enhancement bond guarantee account in the special revenue fund. Money in the credit 
72.28 	enhancement bond guarantee account is appropriated to the authority for purposes of 
72.29 	administering this section.
73.1 	(d) Neither the authority nor the commissioner is required to promulgate administrative 
73.2 	rules under this section and the procedures and requirements established by the authority 
73.3 	or commissioner under this section are not subject to chapter 14.

73.4 	Sec. 4. Minnesota Statutes 2024, section 462C.04, subdivision 2, is amended to read:
73.5 		Subd. 2.Program review. A public hearing shall be held on each program after one 
73.6 	publication of notice in a newspaper circulating generally in the city, at least 15 ten days 
73.7 	before the hearing. On or before the day on which notice of the public hearing is published, 
73.8 	the city shall submit the program to the Metropolitan Council, if the city is located in the 
73.9 	metropolitan area as defined in section 473.121, subdivision 2, or to the regional development 
73.10 	commission for the area in which the city is located, if any, for review and comment. The 
73.11 	appropriate reviewing agency shall comment on:
73.12 	(a) whether the program furthers local and regional housing policies and is consistent 
73.13 	with the Metropolitan Development Guide, if the city is located in the metropolitan area, 
73.14 	or adopted policies of the regional development commission; and
73.15 	(b) the compatibility of the program with the housing portion of the comprehensive plan 
73.16 	of the city, if any.
73.17 	Review of the program may be conducted either by the board of the reviewing agency 
73.18 	or by the staff of the agency. Any comment submitted by the reviewing agency to the city 
73.19 	must be presented to the body considering the proposed program at the public hearing held 
73.20 	on the program.
73.21 	A member or employee of the reviewing agency shall be permitted to present the 
73.22 	comments of the reviewing agency at the public hearing. After conducting the public hearing, 
73.23 	the program may be adopted with or without amendment, provided that any amendments 
73.24 	must not be inconsistent with the comments, if any, of the reviewing agency and must not 
73.25 	contain any material changes from the program submitted to the reviewing agency other 
73.26 	than changes in the financial aspects of any proposed issue of bonds or obligations. If any 
73.27 	material change other than a change in the financial aspects of a proposed issue of bonds 
73.28 	or obligations, or any change which is inconsistent with the comments of the reviewing 
73.29 	agency is adopted, the amended program shall be resubmitted to the appropriate reviewing 
73.30 	agency for review and comment, and a public hearing shall be held on the amended program 
73.31 	after one publication of notice in a newspaper circulating generally in the city at least 15
73.32 	ten days before the hearing. The amended program shall be considered after the public 
73.33 	hearing in the same manner as consideration of the initial program.

74.1 	Sec. 5. Minnesota Statutes 2024, section 469.104, is amended to read:
74.2 	469.104 SECTIONS THAT APPLY IF FEDERAL LIMIT APPLIES.
74.3 	Sections 474A.01 to 474A.21 apply to obligations issued under sections 469.090 to 
74.4 	469.108 that are limited required by federal tax law as defined in section 474A.02, 
74.5 	subdivision 8, to obtain an allocation of volume cap.

74.6 	Sec. 6. Minnesota Statutes 2024, section 469.154, subdivision 4, is amended to read:
74.7 		Subd. 4.Hearing. Prior to submitting an application to the department requesting 
74.8 	approval of a project pursuant to subdivision 3, the governing body or a committee of the 
74.9 	governing body of the municipality or redevelopment agency shall conduct a public hearing 
74.10 	on the proposal to undertake and finance the project. Notice of the time and place of hearing, 
74.11 	and stating the general nature of the project and an estimate of the principal amount of bonds 
74.12 	or other obligations to be issued to finance the project, shall be published at least once not 
74.13 	less than 14 ten days nor more than 30 days prior to the date fixed for the hearing, in the 
74.14 	official newspaper and a newspaper of general circulation of the municipality or 
74.15 	redevelopment agency. The notice shall state that a draft copy of the proposed application 
74.16 	to the department, together with all attachments and exhibits, shall be available for public 
74.17 	inspection following the publication of the notice and shall specify the place and times 
74.18 	where and when it will be so available. The governing body of the municipality or the 
74.19 	redevelopment agency shall give all parties who appear at the hearing an opportunity to 
74.20 	express their views with respect to the proposal to undertake and finance the project. 
74.21 	Following the completion of the public hearing, the governing body of the municipality or 
74.22 	redevelopment agency shall adopt a resolution determining whether or not to proceed with 
74.23 	the project and its financing; it may thereafter apply to the department for approval of the 
74.24 	project.

74.25 	Sec. 7. Minnesota Statutes 2024, section 469.1813, subdivision 5, is amended to read:
74.26 		Subd. 5.Notice and public hearing. (a) The governing body of the political subdivision 
74.27 	may approve an abatement under sections 469.1812 to 469.1815 only after holding a public 
74.28 	hearing on the abatement.
74.29 	(b) Notice of the hearing must be published in a newspaper of general circulation in the 
74.30 	political subdivision at least once more than at least ten days but less than 30 days before 
74.31 	the hearing. The newspaper must be one of general interest and readership in the community, 
74.32 	and not one of limited subject matter. The newspaper must be published at least once per 
74.33 	week. The notice must indicate that the governing body will consider granting a property 
75.1 	tax abatement, identify the property or properties for which an abatement is under 
75.2 	consideration, and the total estimated amount of the abatement.

75.3 	Sec. 8. Minnesota Statutes 2024, section 474A.091, subdivision 2, is amended to read:
75.4 		Subd. 2.Application for residential rental projects. (a) Issuers may apply for an 
75.5 	allocation for residential rental bonds under this section by submitting to the department an 
75.6 	application on forms provided by the department accompanied by:
75.7 	(1) a preliminary resolution;
75.8 	(2) a statement of bond counsel that the proposed issue of obligations requires an 
75.9 	allocation under this chapter and the Internal Revenue Code;
75.10 	(3) an application deposit in the amount of two percent of the requested allocation;
75.11 	(4) a sworn statement from the applicant identifying the project as a preservation project, 
75.12 	30 percent AMI residential rental project, 50 percent AMI residential rental project, 100 
75.13 	percent LIHTC project, 20 percent LIHTC project, or any other residential rental project; 
75.14 	and
75.15 	(5) a certification from the applicant or its accountant stating that the requested allocation 
75.16 	does not exceed the aggregate bond limitation.
75.17 	The issuer must pay the application deposit to the Department of Management and Budget. 
75.18 	An entitlement issuer may not apply for an allocation for residential rental project bonds 
75.19 	under this section unless it has either permanently issued bonds equal to the amount of its 
75.20 	entitlement allocation for the current year plus any amount carried forward from previous 
75.21 	years or returned for reallocation all of its unused entitlement allocation. For purposes of 
75.22 	this subdivision, its entitlement allocation includes an amount obtained under section 
75.23 	474A.04, subdivision 6.
75.24 	(b) An issuer that receives an allocation under this subdivision must permanently issue 
75.25 	obligations equal to all or a portion of the allocation received on or before the earlier of: 
75.26 	(1) 180 days of the allocation; or (2) the last business day of December. If an issuer that 
75.27 	receives an allocation under this subdivision does not permanently issue obligations equal 
75.28 	to all or a portion of the allocation received within the time period provided in this paragraph 
75.29 	or returns the allocation to the commissioner, the amount of the allocation is canceled and 
75.30 	returned for reallocation through the unified pool.
75.31 	(c) The Minnesota Housing Finance Agency may apply for and receive an allocation 
75.32 	under this section without submitting an application deposit.

76.1 	Sec. 9. Minnesota Statutes 2024, section 474A.091, subdivision 2a, is amended to read:
76.2 		Subd. 2a.Application for all other types of qualified bonds. (a) Issuers may apply 
76.3 	for an allocation for all types of qualified bonds other than residential rental bonds under 
76.4 	this section by submitting to the department an application on forms provided by the 
76.5 	department accompanied by:
76.6 	(1) a preliminary resolution;
76.7 	(2) a statement of bond counsel that the proposed issue of obligations requires an 
76.8 	allocation under this chapter and the Internal Revenue Code;
76.9 	(3) the type of qualified bonds to be issued;
76.10 	(4) an application deposit in the amount of two percent of the requested allocation; and
76.11 	(5) a public purpose scoring worksheet for manufacturing and enterprise zone 
76.12 	applications.
76.13 	The issuer must pay the application deposit to the Department of Management and Budget. 
76.14 	An entitlement issuer may not apply for an allocation for public facility bonds or mortgage 
76.15 	bonds under this section unless it has either permanently issued bonds equal to the amount 
76.16 	of its entitlement allocation for the current year plus any amount carried forward from 
76.17 	previous years or returned for reallocation all of its unused entitlement allocation. For 
76.18 	purposes of this subdivision, an entitlement allocation includes an amount obtained under 
76.19 	section 474A.04, subdivision 6.
76.20 	(b) An issuer that receives an allocation under this subdivision must permanently issue 
76.21 	obligations equal to all or a portion of the allocation received on or before the earlier of: 
76.22 	(1) 120 days of the allocation; or (2) the last business day of December. If an issuer that 
76.23 	receives an allocation under this subdivision does not permanently issue obligations equal 
76.24 	to all or a portion of the allocation received within the time period provided in this paragraph 
76.25 	or returns the allocation to the commissioner, the amount of the allocation is canceled and 
76.26 	returned for reallocation through the unified pool.
76.27 	(c) Notwithstanding the restrictions imposed on entitlement issuers under this subdivision, 
76.28 	the Minnesota Housing Finance Agency may not receive an allocation for mortgage bonds 
76.29 	under this section prior to the first Monday in October, but may be awarded allocations for 
76.30 	mortgage bonds from the unified pool on or after the first Monday in October. The Minnesota 
76.31 	Housing Finance Agency, the Minnesota Office of Higher Education, and the Minnesota 
76.32 	Rural Finance Authority may apply for and receive an allocation under this section without 
76.33 	submitting an application deposit.

77.1 	Sec. 10. Minnesota Statutes 2024, section 475.521, subdivision 2, is amended to read:
77.2 		Subd. 2.Election requirement. (a) Bonds issued by a municipality to finance capital 
77.3 	improvements under an approved capital improvements plan are not subject to the election 
77.4 	requirements of section 475.58. The bonds must be approved by an affirmative vote of 
77.5 	three-fifths of the members of a five-member governing body. In the case of a governing 
77.6 	body having more or less than five members, the bonds must be approved by a vote of at 
77.7 	least two-thirds of the members of the governing body.
77.8 	(b) Before the issuance of bonds qualifying under this section, the municipality must 
77.9 	publish a notice of its intention to issue the bonds and the date and time of the hearing to 
77.10 	obtain public comment on the matter. The notice must be published in the official newspaper 
77.11 	of the municipality or in a newspaper of general circulation in the municipality. Additionally, 
77.12 	the notice may be posted on the official website, if any, of the municipality. The notice must 
77.13 	be published at least 14 ten but not more than 28 days before the date of the hearing.
77.14 	(c) A municipality may issue the bonds only after obtaining the approval of a majority 
77.15 	of the voters voting on the question of issuing the obligations, if a petition requesting a vote 
77.16 	on the issuance is signed by voters equal to five percent of the votes cast in the municipality 
77.17 	in the last municipal general election and is filed with the clerk within 30 days after the 
77.18 	public hearing. If the municipality elects not to submit the question to the voters, the 
77.19 	municipality shall not propose the issuance of bonds under this section for the same purpose 
77.20 	and in the same amount for a period of 365 days from the date of receipt of the petition. If 
77.21 	the question of issuing the bonds is submitted and not approved by the voters, the provisions 
77.22 	of section 475.58, subdivision 1a, shall apply.

77.23 	Sec. 11. Minnesota Statutes 2024, section 641.23, is amended to read:
77.24 	641.23 FUNDS; HOW PROVIDED.
77.25 	Before any contract is made for the erection of a county jail, sheriff's residence, or both
77.26 	sheriff's offices, law enforcement center, or courthouse or justice center attached to a county 
77.27 	jail, the county board shall either levy a sufficient tax to provide the necessary funds, or 
77.28 	issue county bonds therefor in accordance with the provisions of chapter 475, provided that 
77.29 	no election is required if the amount of all bonds issued for this purpose and interest on 
77.30 	them which are due and payable in any year does not exceed an amount equal to 0.09671 
77.31 	percent of estimated market value of taxable property within the county, as last determined 
77.32 	before the bonds are issued.

78.1 	ARTICLE 8
78.2 	MISCELLANEOUS

78.3 	Section 1. Minnesota Statutes 2024, section 3.192, is amended to read:
78.4 	3.192 REQUIREMENTS FOR NEW OR RENEWED TAX EXPENDITURES.
78.5 	(a) Any Within 60 days after final enactment of a bill that creates, renews, or continues 
78.6 	a tax expenditure must include a statement of intent, the chairs of the house of representatives 
78.7 	and senate committees with primary jurisdiction over taxes must submit to the Tax 
78.8 	Expenditure Review Commission a statement of objective that clearly provides the purpose 
78.9 	of the tax expenditure and a standard or goal against which its effectiveness may be measured.
78.10 	(b) For purposes of this section, "tax expenditure" has the meaning given in section 
78.11 	270C.11, subdivision 6, and "Tax Expenditure Review Commission" means the commission 
78.12 	established under section 3.8855.
78.13 	(c) Any bill that creates a new tax expenditure or continues an expiring tax expenditure 
78.14 	must include an expiration date for the tax expenditure that is no more than eight years from 
78.15 	the day the provision takes effect.

78.16 	EFFECTIVE DATE. This section is effective the day following final enactment for 
78.17 	tax expenditures authorized in this act.

78.18 	Sec. 2. Minnesota Statutes 2024, section 3.8855, subdivision 2, is amended to read:
78.19 		Subd. 2.Definitions. For the purposes of this section,:
78.20 	(1) "commissioner" means the commissioner of revenue; and
78.21 	(2) "significant tax expenditure," "tax," and "tax expenditure" have the meanings given 
78.22 	in section 270C.11, subdivision 6.

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

78.24 	Sec. 3. Minnesota Statutes 2024, section 3.8855, subdivision 3, is amended to read:
78.25 		Subd. 3.Membership. (a) The commission consists of:
78.26 	(1) two senators appointed by the senate majority leader;
78.27 	(2) two senators appointed by the senate minority leader;
78.28 	(3) two representatives appointed by the speaker of the house;
79.1 	(4) two representatives appointed by the minority leader of the house of representatives; 
79.2 	and
79.3 	(5) the commissioner of revenue or the commissioner's designee.
79.4 	(b) Each appointing authority must make appointments by January 31 of the regular 
79.5 	legislative session in the odd-numbered year.
79.6 	(c) If the chair of the house or senate committee with primary jurisdiction over taxes is 
79.7 	not an appointed member, the chair is an ex officio, nonvoting member of the commission.
79.8 	(d) The commissioner may designate another individual to represent the commissioner 
79.9 	or the commissioner's designee at any meeting of the commission.

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

79.11 	Sec. 4. Minnesota Statutes 2024, section 3.8855, subdivision 4, is amended to read:
79.12 		Subd. 4.Duties. (a) For not more than three years after the commission is established, 
79.13 	the commission must complete an initial review of the state's tax expenditures. The initial 
79.14 	review must identify the purpose objective of each of the state's tax expenditures, if none 
79.15 	was identified in the enacting legislationsubmitted to the commission in accordance with 
79.16 	section 3.192. The commission may also identify metrics for evaluating the effectiveness 
79.17 	of an expenditure.
79.18 	(b) The commission must review and evaluate Minnesota's tax expenditures on a regular, 
79.19 	rotating basis. The commission must establish a review schedule that ensures each tax 
79.20 	expenditure will be reviewed by the commission at least once every ten years. The 
79.21 	commission may review expenditures affecting similar constituencies or policy areas in the 
79.22 	same year, but the commission must review a subset of the tax expenditures within each 
79.23 	tax type each year. To the extent possible, the commission must review a similar number 
79.24 	of tax expenditures within each tax type each year. The commission may decide not to 
79.25 	review a tax expenditure that is adopted by reference to federal law.
79.26 	(c) Before December February 1 of the year a tax expenditure is included in a commission 
79.27 	report, the commission must hold a public hearing on the expenditure, including but not 
79.28 	limited to a presentation of the review components in subdivision 5.

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

80.1 	Sec. 5. Minnesota Statutes 2024, section 3.8855, subdivision 5, is amended to read:
80.2 		Subd. 5.Components of review. (a) When reviewing a tax expenditure, the commission 
80.3 	must at a minimum:
80.4 	(1) provide an estimate of the annual revenue lost as a result of the expenditure;
80.5 	(2) identify the purpose objective of the tax expenditure if none was identified in the 
80.6 	enacting legislationsubmitted to the commission in accordance with section 3.192;
80.7 	(3) estimate the measurable impacts and efficiency of the tax expenditure in 
80.8 	accomplishing the purpose objective of the expenditure;
80.9 	(4) compare the effectiveness of the tax expenditure and a direct expenditure with the 
80.10 	same purpose objective;
80.11 	(5) identify potential modifications to the tax expenditure to increase its efficiency or 
80.12 	effectiveness;
80.13 	(6) estimate the amount by which the tax rate for the relevant tax could be reduced if 
80.14 	the revenue lost due to the tax expenditure were applied to a rate reduction;
80.15 	(7) if the tax expenditure is a significant tax expenditure, estimate the incidence of the 
80.16 	tax expenditure and the effect of the expenditure on the incidence of the state's tax system;
80.17 	(8) consider the cumulative fiscal impacts of other state and federal taxes providing 
80.18 	benefits to taxpayers for similar activities; and
80.19 	(9) recommend whether the expenditure be continued, repealed, or modified.
80.20 	(b) The commission may omit a component in paragraph (a) if the commission determines 
80.21 	it is not feasible due to the lack of available data, third-party research, staff resources, or 
80.22 	lack of a majority support for a recommendation.

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

80.24 	Sec. 6. Minnesota Statutes 2024, section 3.8855, subdivision 7, is amended to read:
80.25 		Subd. 7.Report to legislature. (a) By December February 15 of each year, the 
80.26 	commission must submit a written report to the legislative committees with jurisdiction 
80.27 	over tax policy. The report must detail the results of the commission's review of tax 
80.28 	expenditures for the year, including the review components detailed in subdivision 5.
80.29 	(b) Notwithstanding paragraph (a), during the period of initial review under subdivision 
80.30 	4, the report may be limited to the purpose objective statements and metrics for evaluating 
81.1 	the effectiveness of expenditures, as identified by the commission. The report may also 
81.2 	include relevant publicly available data on an expenditure.
81.3 	(c) The report may include any additional information the commission deems relevant 
81.4 	to the review of an expenditure.
81.5 	(d) The legislative committees with jurisdiction over tax policy must hold a public 
81.6 	hearing on the report during the regular legislative session in the year following the year in 
81.7 	which the report was submitted.

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

81.9 	Sec. 7. Minnesota Statutes 2024, section 3.8855, subdivision 8, is amended to read:
81.10 		Subd. 8.Terms; vacancies; meetings. (a) Members of the commission serve a term 
81.11 	beginning upon appointment and ending at the beginning of the regular legislative session 
81.12 	in the next odd-numbered year. The appropriate appointing authority must fill a vacancy 
81.13 	for a seat of a current legislator for the remainder of the unexpired term. Members may be 
81.14 	removed or replaced at the pleasure of the appointing authority.
81.15 	(b) If a commission member ceases to be a member of the legislative body from which 
81.16 	the member was appointed, the member vacates membership on the commission.
81.17 	(c) The commissioner must convene the first meeting of each year required under 
81.18 	subdivision 4, paragraph (c).

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

81.20 	Sec. 8. Minnesota Statutes 2024, section 8.31, subdivision 2c, is amended to read:
81.21 		Subd. 2c.Undistributed money to general fund consumer protection restitution 
81.22 	account. If a court of competent jurisdiction finds that a sum recovered under this section 
81.23 	for the benefit of injured persons cannot reasonably be distributed to the victims, because 
81.24 	the victims cannot readily be located or identified, or because the cost of distributing the 
81.25 	money would outweigh the benefit to the victims, then the court may order that the money 
81.26 	be paid into the general fund. All sums recovered must be deposited into the state treasury 
81.27 	and credited to the general fund or attorney general must deposit the money in the consumer 
81.28 	protection restitution account under section 8.37. Consumer enforcement public compensation 
81.29 	that the attorney general attempts to distribute to an eligible consumer, but that is not 
81.30 	redeemed by the consumer within 120 days, may be redeposited in the account. For purposes 
81.31 	of this subdivision, "consumer enforcement public compensation" and "eligible consumer" 
81.32 	have the meanings given in section 8.37, subdivision 2.

82.1 	EFFECTIVE DATE. This section is effective July 1, 2025.

82.2 	Sec. 9. [8.37] CONSUMER PROTECTION RESTITUTION ACCOUNT.
82.3 		Subdivision 1.Creation of account. The consumer protection restitution account is 
82.4 	established in the special revenue fund. Money in the account is appropriated annually to 
82.5 	the attorney general for the purposes provided under subdivision 4.
82.6 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
82.7 	(b) "Account" means the consumer protection restitution account established under this 
82.8 	section.
82.9 	(c) "Account administrator" means a person appointed by the attorney general as an 
82.10 	account administrator under this section.
82.11 	(d) "Consumer enforcement action" means litigation in any forum, or settlement of a 
82.12 	matter that could have resulted in litigation, by the attorney general in whole or in part under 
82.13 	(1) the authority of the attorney general provided in section 8.31, or (2) other authority 
82.14 	granted to the attorney general by law to obtain the remedies provided in section 8.31.
82.15 	(e) "Consumer enforcement public compensation" means money awarded or recovered 
82.16 	in a consumer enforcement action to vindicate public interests by providing restitution or 
82.17 	other compensation to persons directly impacted by unlawful acts and practices that are the 
82.18 	subject of the consumer enforcement action.
82.19 	(f) "Court-appointed administrator" means an administrator appointed by a court under 
82.20 	section 8.31, subdivision 3c.
82.21 	(g) "Eligible consumer" means a person who was directly impacted by unlawful acts 
82.22 	and practices that are the subject of a consumer enforcement action and, as a result, is eligible 
82.23 	to receive consumer enforcement public compensation under a final order.
82.24 	(h) "Final order" means a judgment, assurance of discontinuance, consent order, 
82.25 	settlement, stipulation, or other order or settlement that is no longer appealable and for 
82.26 	which no appeals are pending. A final order does not include any judgment, assurance of 
82.27 	discontinuance, consent order, settlement, stipulation, or other order or settlement entered 
82.28 	into before January 1, 2024.
82.29 	(i) "Identified amount of unpaid consumer enforcement public compensation" means a 
82.30 	specific amount of consumer enforcement public compensation that the attorney general, 
82.31 	court-appointed administrator, or fund administrator has determined a specific eligible 
83.1 	consumer is entitled to receive following a final order in a consumer enforcement action 
83.2 	and that has not been distributed to the specific eligible consumer.
83.3 		Subd. 3.Money deposited in the account. 50 percent of all money recovered by the 
83.4 	attorney general in a consumer enforcement action that is payable to the state and not 
83.5 	designated as consumer enforcement public compensation or for another specific purpose 
83.6 	up to the first $5,000,000 each fiscal year must be deposited into the account. The remaining 
83.7 	50 percent of money recovered by the attorney general in a consumer enforcement action 
83.8 	that is payable to the state and not designated as consumer enforcement public compensation 
83.9 	or for another specific purpose must be deposited into the general fund. For purposes of 
83.10 	this subdivision, the amount of money recovered in a consumer enforcement action that 
83.11 	must be deposited into the fund is determined at the time when the money otherwise would 
83.12 	have been deposited into the general fund.
83.13 		Subd. 4.Permissible use of account. Money in the account must be used only to 
83.14 	distribute consumer enforcement action public compensation to eligible consumers under 
83.15 	subdivision 5 and for costs to administer the account. The costs to administer the account 
83.16 	may include the cost to retain for any permissible purpose an account administrator or 
83.17 	court-appointed administrator but must not exceed three percent of the total amount of 
83.18 	money available. The attorney general may pay an account administrator from the account 
83.19 	if the account contains excess money.
83.20 		Subd. 5.Distributions to eligible consumers. (a) Money in the account may be 
83.21 	distributed to any eligible consumer with an identified amount of unpaid consumer 
83.22 	enforcement public compensation. If the amount of money in the account is insufficient to 
83.23 	pay all distributions to eligible consumers with an identified amount of unpaid consumer 
83.24 	enforcement public compensation, the money must be distributed first to consumers eligible 
83.25 	for unpaid consumer enforcement public compensation based on a consumer enforcement 
83.26 	action with a final order of the oldest date.
83.27 	(b) If the attorney general projects that there will be insufficient funding to pay all eligible 
83.28 	consumers from the funds available on an ongoing basis, the attorney general may 
83.29 	recommend to the legislature that the legislature prescribe a formula for prorating or capping 
83.30 	payments to eligible consumers so that more eligible consumers will receive payment from 
83.31 	the fund.
83.32 		Subd. 6.Impractical payments and unreasonable effort as to unpaid 
83.33 	compensation. (a) The attorney general may deem a distribution to an eligible consumer 
84.1 	with an identified amount of unpaid consumer enforcement public compensation impractical 
84.2 	if:
84.3 	(1) the distribution to the eligible consumer is too small to justify the cost to locate the 
84.4 	eligible consumer or make the payment;
84.5 	(2) the eligible consumer does not redeem a payment within a reasonable time; or
84.6 	(3) other circumstances make distributing the unpaid consumer enforcement compensation 
84.7 	to the eligible consumer unreasonable.
84.8 	(b) The attorney general may deem an attempt to determine an identified amount of 
84.9 	unpaid consumer enforcement public compensation for some or all eligible consumers 
84.10 	relating to a consumer enforcement action is unreasonable when the judgment, assurance 
84.11 	of discontinuance, consent order, settlement, stipulation, or other order or settlement does 
84.12 	not identify specific amounts of consumer enforcement public compensation for specific 
84.13 	consumers if:
84.14 	(1) the number of likely eligible consumers and the amount of likely unpaid consumer 
84.15 	enforcement public compensation is too small to justify the cost to determine an identified 
84.16 	amount of unpaid consumer enforcement public compensation;
84.17 	(2) the information needed to identify an amount of unpaid consumer enforcement public 
84.18 	compensation is unavailable or too costly to obtain; or
84.19 	(3) other circumstances make an attempt to determine an identified amount of unpaid 
84.20 	consumer enforcement public compensation unreasonable.
84.21 		Subd. 7.Concluded distributions. The attorney general must stop providing distributions 
84.22 	of unpaid consumer enforcement public compensation relating to a consumer enforcement 
84.23 	action when the attorney general determines:
84.24 	(1) all eligible consumers with an identified amount of unpaid consumer enforcement 
84.25 	public compensation for the consumer enforcement action have received a distribution 
84.26 	through the account or the distribution has been deemed impractical under subdivision 6, 
84.27 	paragraph (a); and
84.28 	(2) no additional eligible consumers with unpaid consumer enforcement public 
84.29 	compensation for the consumer enforcement action exist or the attorney general has deemed 
84.30 	identifying unpaid compensation under subdivision 6, paragraph (b), unreasonable.
84.31 		Subd. 8.Annual report. (a) The attorney general must publish on the attorney general's 
84.32 	website an annual report identifying the following information for the annual period:
85.1 	(1) the consumer enforcement actions resulting in payment of money to the account and 
85.2 	the amount of money paid to the account for each consumer enforcement action;
85.3 	(2) the consumer enforcement actions for which distributions were made to eligible 
85.4 	consumers, the amount of money distributed for each consumer enforcement action, and 
85.5 	the amount of money distributed to each eligible consumer;
85.6 	(3) the consumer enforcement actions for which there are eligible consumers awaiting 
85.7 	distribution from the account and the amount of money for which those eligible consumers 
85.8 	are awaiting distribution for each consumer enforcement action;
85.9 	(4) the consumer enforcement actions for which the attorney general has concluded 
85.10 	account distribution;
85.11 	(5) the consumer enforcement actions in which the attorney general determined that 
85.12 	some or all eligible compensation was impractical to distribute or unreasonable to determine 
85.13 	under subdivision 6; and
85.14 	(6) the cost incurred to administer the account.
85.15 	(b) The attorney general must provide the report to the chairs and ranking minority 
85.16 	members of the legislative committees with jurisdiction over state government, commerce, 
85.17 	and judiciary.
85.18 		Subd. 9.Account administrator. (a) The attorney general may appoint an administrator 
85.19 	for any of the following purposes:
85.20 	(1) determining identified amounts of unpaid consumer enforcement public compensation 
85.21 	for eligible consumers;
85.22 	(2) collecting money that can be deposited, in whole or in part, to the account;
85.23 	(3) distributing money to eligible consumers; or
85.24 	(4) any other costs to administer the account.
85.25 	(b) The attorney general may appoint more than one account administrator.
85.26 		Subd. 10.No private right of action. A person does not have a private right of action 
85.27 	with respect to a payment from the account or administration of the account.
85.28 		Subd. 11.Collection efforts unaffected. The distribution of money from the account 
85.29 	to eligible consumers does not affect the attorney general's authority to collect, satisfy, or 
85.30 	enforce final orders against persons ordered to pay consumer enforcement public 
85.31 	compensation to eligible consumers in the final order. To the extent the attorney general 
86.1 	collects consumer enforcement public compensation pursuant to a final order after money 
86.2 	has been distributed from the account to eligible consumers that are the subject of that final 
86.3 	order, the collected consumer enforcement public compensation must be deposited in the 
86.4 	account in an amount equal to the prior account distribution.

86.5 	EFFECTIVE DATE. This section is effective July 1, 2025.

86.6 	Sec. 10. Minnesota Statutes 2024, section 16A.151, subdivision 2, is amended to read:
86.7 		Subd. 2.Exceptions. (a) If a state official litigates or settles a matter on behalf of specific 
86.8 	injured persons or entities, this section does not prohibit distribution of money to the specific 
86.9 	injured persons or entities on whose behalf the litigation or settlement efforts were initiated. 
86.10 	If money recovered on behalf of injured persons or entities cannot reasonably be distributed 
86.11 	to those persons or entities because they cannot readily be located or identified or because 
86.12 	the cost of distributing the money would outweigh the benefit to the persons or entities, the 
86.13 	money must be paid into the general fund.
86.14 	(b) Money recovered on behalf of a fund in the state treasury other than the general fund 
86.15 	may be deposited in that fund.
86.16 	(c) This section does not prohibit a state official from distributing money to a person or 
86.17 	entity other than the state in litigation or potential litigation in which the state is a defendant 
86.18 	or potential defendant.
86.19 	(d) State agencies may accept funds as directed by a federal court for any restitution or 
86.20 	monetary penalty under United States Code, title 18, section 3663(a)(3), or United States 
86.21 	Code, title 18, section 3663A(a)(3). Funds received must be deposited in a special revenue 
86.22 	account and are appropriated to the commissioner of the agency for the purpose as directed 
86.23 	by the federal court.
86.24 	(e) Tobacco settlement revenues as defined in section 16A.98, subdivision 1, paragraph 
86.25 	(t), may be deposited as provided in section 16A.98, subdivision 12.
86.26 	(f) (e) Any money received by the state resulting from a settlement agreement or an 
86.27 	assurance of discontinuance entered into by the attorney general of the state, or a court order 
86.28 	in litigation brought by the attorney general of the state, on behalf of the state or a state 
86.29 	agency, related to alleged violations of consumer fraud laws in the marketing, sale, or 
86.30 	distribution of opioids in this state or other alleged illegal actions that contributed to the 
86.31 	excessive use of opioids, must be deposited in the settlement account established in the 
86.32 	opiate epidemic response fund under section 256.043, subdivision 1. This paragraph does 
86.33 	not apply to attorney fees and costs awarded to the state or the Attorney General's Office, 
87.1 	to contract attorneys hired by the state or Attorney General's Office, or to other state agency 
87.2 	attorneys.
87.3 	(g) (f) Notwithstanding paragraph (f) (e), if money is received from a settlement 
87.4 	agreement or an assurance of discontinuance entered into by the attorney general of the 
87.5 	state or a court order in litigation brought by the attorney general of the state on behalf of 
87.6 	the state or a state agency against a consulting firm working for an opioid manufacturer or 
87.7 	opioid wholesale drug distributor, the commissioner shall deposit any money received into 
87.8 	the settlement account established within the opiate epidemic response fund under section 
87.9 	256.042, subdivision 1. Notwithstanding section 256.043, subdivision 3a, paragraph (a), 
87.10 	any amount deposited into the settlement account in accordance with this paragraph shall 
87.11 	be appropriated to the commissioner of human services to award as grants as specified by 
87.12 	the opiate epidemic response advisory council in accordance with section 256.043, 
87.13 	subdivision 3a, paragraph (e).
87.14 	(h) (g) If the Minnesota Pollution Control Agency, through litigation or settlement of a 
87.15 	matter that could have resulted in litigation, recovers $250,000 or more in a civil penalty 
87.16 	from violations of a permit issued by the agency, then 40 percent of the money recovered 
87.17 	must be distributed to the community health board, as defined in section 145A.02, where 
87.18 	the permitted facility is located. Within 30 days of a final court order in the litigation or the 
87.19 	effective date of the settlement agreement, the commissioner of the Minnesota Pollution 
87.20 	Control Agency must notify the applicable community health board that the litigation has 
87.21 	concluded or a settlement has been reached. The commissioner must collect the money and 
87.22 	transfer it to the applicable community health board. The community health board must 
87.23 	meet directly with the residents potentially affected by the pollution that was the subject of 
87.24 	the litigation or settlement to identify the residents' concerns and incorporate those concerns 
87.25 	into a project that benefits the residents. The project must be implemented by the community 
87.26 	health board and funded as directed in this paragraph. The community health board may 
87.27 	recover the reasonable costs it incurs to administer this paragraph from the funds transferred 
87.28 	to the board under this paragraph. This paragraph directs the transfer and use of money only 
87.29 	and does not create a right of intervention in the litigation or settlement of the enforcement 
87.30 	action for any person or entity. A supplemental environmental project funded as part of a 
87.31 	settlement agreement is not part of a civil penalty and must not be included in calculating 
87.32 	the amount of funds required to be distributed to a community health board under this 
87.33 	paragraph. For the purposes of this paragraph, "supplemental environmental project" means 
87.34 	a project that benefits the environment or public health that a regulated facility agrees to 
87.35 	undertake, though not legally required to do so, as part of a settlement with respect to an 
88.1 	enforcement action taken by the Minnesota Pollution Control Agency to resolve 
88.2 	noncompliance.
88.3 	(i) (h) A community health board receiving a transfer of funds under paragraph (h) (g)
88.4 	must, no later than one year after receiving the funds, submit a report to the chairs and 
88.5 	ranking minority members of the senate and house of representatives committees with 
88.6 	primary jurisdiction over environment policy and natural resources that describes:
88.7 	(1) the process of community engagement employed to solicit community input regarding 
88.8 	the use of the funds;
88.9 	(2) the purposes and activities for which the funds were used; and
88.10 	(3) an account of expenditures.
88.11 	(j) (i) The commissioner of the Minnesota Pollution Control Agency must submit a 
88.12 	report in September each even-numbered year, beginning in 2024, to the chairs and ranking 
88.13 	minority members of the senate and house of representatives committees with primary 
88.14 	jurisdiction over environmental policy and natural resources that includes:
88.15 	(1) the amount transferred under paragraph (h) (g) to each community health board 
88.16 	during the previous two years; and
88.17 	(2) any agency services provided to the community health board or community residents 
88.18 	during the duration of the project funded by the transfer, and the cost of those agency 
88.19 	services, for consideration by the legislature for future appropriations that address 
88.20 	reimbursement of the amount of the transfers and the cost of services provided by the agency.
88.21 	(k) (j) Any money received by the state resulting from a settlement agreement or an 
88.22 	assurance of discontinuance entered into by the attorney general of the state, or a court order 
88.23 	in litigation brought by the attorney general of the state on behalf of the state or a state 
88.24 	agency related to alleged violations of consumer fraud laws in the marketing, sale, or 
88.25 	distribution of electronic nicotine delivery systems in this state or other alleged illegal 
88.26 	actions that contributed to the exacerbation of youth nicotine use, must be deposited in the 
88.27 	tobacco use prevention account under section 144.398. This paragraph does not apply to: 
88.28 	(1) attorney fees and costs awarded or paid to the state or the Attorney General's Office; (2) 
88.29 	contract attorneys hired by the state or Attorney General's Office; or (3) other state agency 
88.30 	attorneys. The commissioner of management and budget must transfer to the tobacco use 
88.31 	prevention account, any money subject to this paragraph that is received by the state before 
88.32 	May 24, 2023.
89.1 	(k) This section does not apply to money deposited in the consumer protection restitution 
89.2 	account under section 8.37.

89.3 	EFFECTIVE DATE. This section is effective July 1, 2025.

89.4 	Sec. 11. Minnesota Statutes 2024, section 37.31, subdivision 1, is amended to read:
89.5 		Subdivision 1.Bonding authority. The society may issue negotiable bonds in a principal 
89.6 	amount that the society determines necessary to provide sufficient money for achieving its 
89.7 	purposes, including the payment of interest on bonds of the society, the establishment of 
89.8 	reserves to secure its bonds, the payment of fees to a third party providing credit 
89.9 	enhancement, and the payment of all other expenditures of the society incident to and 
89.10 	necessary or convenient to carry out its corporate purposes and powers. Bonds of the society 
89.11 	may be issued as bonds or notes or in any other form authorized by law. The principal 
89.12 	amount of bonds issued and outstanding under this section at any time may not exceed 
89.13 	$30,000,000 $50,000,000, excluding bonds for which refunding bonds or crossover refunding 
89.14 	bonds have been issued.

89.15 	EFFECTIVE DATE. This section is effective July 1, 2025.

89.16 	Sec. 12. Minnesota Statutes 2024, section 270C.11, subdivision 4, is amended to read:
89.17 		Subd. 4.Contents. (a) The report shall detail for each tax expenditure item:
89.18 	(1) the amount of tax revenue forgone;
89.19 	(2) a citation of the statutory or other legal authority for the expenditure;
89.20 	(3) the year in which it was enacted or the tax year in which it became effective;
89.21 	(4) the purpose objective of the expenditure, as identified in the enacting legislation
89.22 	submitted to the commission in accordance with section 3.192 or identified by the Tax 
89.23 	Expenditure Review Commission;
89.24 	(5) the incidence of the expenditure, if it is a significant sales or income tax expenditure; 
89.25 	and
89.26 	(6) the revenue-neutral amount by which the relevant tax rate could be reduced if the 
89.27 	expenditure were repealed.
89.28 	(b) The report may contain additional information which the commissioner considers 
89.29 	relevant to the legislature's consideration and review of individual tax expenditure items. 
89.30 	This may include but is not limited to analysis of whether the expenditure is achieving that 
89.31 	objective and the effect of the expenditure on the administration of the tax system.

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

90.2 	Sec. 13. Minnesota Statutes 2024, section 289A.60, subdivision 12, is amended to read:
90.3 		Subd. 12.Penalties relating to property tax refunds and certificates of rent paid. (a) 
90.4 	If it is determined that a property tax refund claim is excessive and was negligently prepared, 
90.5 	a claimant is liable for a penalty of ten percent of the disallowed claim. If the claim has 
90.6 	been paid, the amount disallowed must be recovered by assessment and collection.
90.7 	(b) An owner who without reasonable cause fails to give a certificate of rent paid to a 
90.8 	renter, as required by sections 290.0693, subdivision 4, paragraph (a), and 290A.19, 
90.9 	paragraph (a), is liable to the commissioner for a penalty of $100 $50 for each failure. The 
90.10 	commissioner may abate the penalty using the abatement authority in section 270C.34.
90.11 	(c) An owner who fails to file a certificate of rent paid with the commissioner, as required 
90.12 	by sections 290.0693, subdivision 4, paragraph (b), and 290A.19, paragraph (b), is liable 
90.13 	to the commissioner for a penalty of $50 for each failure. The commissioner may abate the 
90.14 	penalty using the abatement authority in section 270C.34.
90.15 	(c) (d) If the owner or managing agent knowingly gives rent certificates that report total 
90.16 	rent constituting property taxes in excess of the amount of actual rent constituting property 
90.17 	taxes paid on the rented part of a property, the owner or managing agent is liable for a 
90.18 	penalty equal to the greater of (1) $100 or (2) 50 percent of the excess that is reported. An 
90.19 	overstatement of rent constituting property taxes is presumed to be knowingly made if it 
90.20 	exceeds by ten percent or more the actual rent constituting property taxes.

90.21 	EFFECTIVE DATE. This section is effective for rent paid after December 31, 2025.

90.22 	Sec. 14. Minnesota Statutes 2024, section 290.0693, subdivision 4, is amended to read:
90.23 		Subd. 4.Owner or managing agent to furnish rent certificate. (a) The owner or 
90.24 	managing agent of any property for which rent is paid for occupancy as a homestead must 
90.25 	furnish a certificate of rent paid to a person who is a renter on December 31, in the form 
90.26 	prescribed by the commissioner. If the renter moves before December 31, the owner or 
90.27 	managing agent may give the certificate to the renter at the time of moving, or mail the 
90.28 	certificate to the forwarding address if an address has been provided by the renter. The 
90.29 	certificate must be made available to the renter before February 1 of the year following the 
90.30 	year in which the rent was paid. The owner or managing agent must retain a duplicate of 
90.31 	each certificate or an equivalent record showing the same information for a period of four 
91.1 	years. The duplicate or other record must be made available to the commissioner upon 
91.2 	request.
91.3 	(b) The commissioner may require the owner or managing agent, through a simple 
91.4 	process, to must furnish to the commissioner on or before January 31 a copy of each 
91.5 	certificate of rent paid furnished to a renter for rent paid in the prior year. The commissioner 
91.6 	shall prescribe the content, format, and manner of the form pursuant to section 270C.30. 
91.7 	The commissioner may require the Social Security number, individual taxpayer identification 
91.8 	number, federal employer identification number, or Minnesota taxpayer identification 
91.9 	number of the owner or managing agent who is required to furnish a certificate of rent paid 
91.10 	under this paragraph. Before implementation, the commissioner, after consulting with 
91.11 	representatives of owners or managing agents, shall develop an implementation and 
91.12 	administration plan for the requirements of this paragraph that attempts to minimize financial 
91.13 	burdens, administration and compliance costs, and takes into consideration existing systems 
91.14 	of owners and managing agents.
91.15 	(c) An owner who fails to furnish the certificate of rent paid to the renter or to the 
91.16 	commissioner as required under this section is subject to the penalty imposed under section 
91.17 	289A.60, subdivision 12.

91.18 	EFFECTIVE DATE. This section is effective for rent paid after December 31, 2025.

91.19 	Sec. 15. Minnesota Statutes 2024, section 290A.19, is amended to read:
91.20 	290A.19 PARK OWNER TO FURNISH RENT CERTIFICATE.
91.21 	(a) The park owner of a property for which rent is paid for occupancy as a homestead 
91.22 	must furnish a certificate of rent paid to a person who is a renter on December 31, in the 
91.23 	form prescribed by the commissioner. If the renter moves before December 31, the park 
91.24 	owner may give the certificate to the renter at the time of moving, or mail the certificate to 
91.25 	the forwarding address if an address has been provided by the renter. The certificate must 
91.26 	be made available to the renter before February 1 of the year following the year in which 
91.27 	the rent was paid. The park owner must retain a duplicate of each certificate or an equivalent 
91.28 	record showing the same information for a period of three years. The duplicate or other 
91.29 	record must be made available to the commissioner upon request.
91.30 	(b) The commissioner may require the park owner, through a simple process, to must
91.31 	furnish to the commissioner on or before March 1 a copy of each certificate of rent paid 
91.32 	furnished to a renter for rent paid in the prior year. The commissioner shall prescribe the 
91.33 	content, format, and manner of the form pursuant to section 270C.30. The commissioner 
92.1 	may require the Social Security number, individual taxpayer identification number, federal 
92.2 	employer identification number, or Minnesota taxpayer identification number of the park 
92.3 	owner who is required to furnish a certificate of rent paid under this paragraph. Prior to 
92.4 	implementation, the commissioner, after consulting with representatives of park owners, 
92.5 	shall develop an implementation and administration plan for the requirements of this 
92.6 	paragraph that attempts to minimize financial burdens, administration and compliance costs, 
92.7 	and takes into consideration existing systems of park owners.
92.8 	(c) For the purposes of this section, "park owner" means a park owner as defined under 
92.9 	section 327C.015, subdivision 9, and "property" includes a lot as defined under section 
92.10 	327C.015, subdivision 6.
92.11 	(d) A park owner who fails to furnish the certificate of rent paid to the renter or to the 
92.12 	commissioner, as required under this section, is subject to the penalty imposed under section 
92.13 	289A.60, subdivision 12.

92.14 	EFFECTIVE DATE. This section is effective for rent paid after December 31, 2025.

92.15 	Sec. 16. Minnesota Statutes 2024, section 295.53, subdivision 4a, is amended to read:
92.16 		Subd. 4a.Credit for research. (a) In addition to the exemptions allowed under 
92.17 	subdivision 1, a hospital or health care provider may claim an annual credit against the total 
92.18 	amount of tax, if any, the hospital or health care provider owes for that calendar year under 
92.19 	sections 295.50 to 295.57. The credit shall equal 2.5 0.5 percent of revenues for patient 
92.20 	services used to fund expenditures for qualifying research conducted by an allowable research 
92.21 	program. The amount of the credit shall not exceed the tax liability of the hospital or health 
92.22 	care provider under sections 295.50 to 295.57.
92.23 	(b) For purposes of this subdivision, the following requirements apply:
92.24 	(1) expenditures must be for program costs of qualifying research conducted by an 
92.25 	allowable research program;
92.26 	(2) an allowable research program must be a formal program of medical and health care 
92.27 	research conducted by an entity which is exempt under section 501(c)(3) of the Internal 
92.28 	Revenue Code as defined in section 289A.02, subdivision 7, or is owned and operated under 
92.29 	authority of a governmental unit;
92.30 	(3) qualifying research must:
92.31 	(A) be approved in writing by the governing body of the hospital or health care provider 
92.32 	which is taking the deduction under this subdivision;
93.1 	(B) have as its purpose the development of new knowledge in basic or applied science 
93.2 	relating to the diagnosis and treatment of conditions affecting the human body;
93.3 	(C) be subject to review by individuals with expertise in the subject matter of the proposed 
93.4 	study but who have no financial interest in the proposed study and are not involved in the 
93.5 	conduct of the proposed study; and
93.6 	(D) be subject to review and supervision by an institutional review board operating in 
93.7 	conformity with federal regulations if the research involves human subjects or an institutional 
93.8 	animal care and use committee operating in conformity with federal regulations if the 
93.9 	research involves animal subjects. Research expenses are not exempt if the study is a routine 
93.10 	evaluation of health care methods or products used in a particular setting conducted for the 
93.11 	purpose of making a management decision. Costs of clinical research activities paid directly 
93.12 	for the benefit of an individual patient are excluded from this exemption. Basic research in 
93.13 	fields including biochemistry, molecular biology, and physiology are also included if such 
93.14 	programs are subject to a peer review process.
93.15 	(c) No credit shall be allowed under this subdivision for any revenue received by the 
93.16 	hospital or health care provider in the form of a grant, gift, or otherwise, whether from a 
93.17 	government or nongovernment source, on which the tax liability under section 295.52 is 
93.18 	not imposed.
93.19 	(d) The taxpayer shall apply for the credit under this section on the annual return under 
93.20 	section 295.55, subdivision 5.
93.21 	(e) Beginning September 1, 2001, if the actual or estimated amount paid under this 
93.22 	section for the calendar year exceeds $2,500,000, the commissioner of management and 
93.23 	budget shall determine the rate of the research credit for the following calendar year to the 
93.24 	nearest one-half percent so that refunds paid under this section will most closely equal 
93.25 	$2,500,000. The commissioner of management and budget shall publish in the State Register 
93.26 	by October 1 of each year the rate of the credit for the following calendar year. A 
93.27 	determination under this section is not subject to the rulemaking provisions of chapter 14.

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

93.29 	Sec. 17. Minnesota Statutes 2024, section 295.54, subdivision 2, is amended to read:
93.30 		Subd. 2.Pharmacy refund. (a) A pharmacy may claim an annual a quarterly refund 
93.31 	against the total amount of tax, if any, the pharmacy owes during that calendar year under 
93.32 	section 295.52, subdivision 4. The refund shall equal to the amount paid by the pharmacy 
93.33 	to a wholesale drug distributor subject to tax under section 295.52, subdivision 3, for legend 
94.1 	drugs delivered by the pharmacy outside of Minnesota, multiplied by the tax percentage 
94.2 	specified in section 295.52, subdivision 3. If the amount of the refund exceeds the tax 
94.3 	liability of the pharmacy under section 295.52, subdivision 4, the commissioner shall provide 
94.4 	the pharmacy with a refund equal to the excess amount.
94.5 	(b) Each qualifying pharmacy must apply for the refund on the annual quarterly return 
94.6 	as prescribed by the commissioner, on or before March 15 of the year following the calendar 
94.7 	year the legend drugs were delivered outside Minnesota. as required under the following 
94.8 	schedule:
94.9 	(1) for legend drugs delivered by the pharmacy outside of Minnesota between January 
94.10 	1 and March 31, a pharmacy may file its refund request on or after July 1 of the calendar 
94.11 	year in which the legend drugs are delivered by the pharmacy outside of Minnesota;
94.12 	(2) for legend drugs delivered by the pharmacy outside of Minnesota between April 1 
94.13 	and June 30, a pharmacy may file its refund request on or after July 1 of the calendar year 
94.14 	in which the legend drugs are delivered by the pharmacy outside of Minnesota;
94.15 	(3) for legend drugs delivered by the pharmacy outside of Minnesota between July 1 
94.16 	and September 30, a pharmacy may file its refund request on or after October 1 of the 
94.17 	calendar year in which the legend drugs are delivered by the pharmacy outside of Minnesota; 
94.18 	and
94.19 	(4) for legend drugs delivered by the pharmacy outside of Minnesota between October 
94.20 	1 and December 31, a pharmacy may file its refund request on or after January 1 of the 
94.21 	calendar year immediately following the calendar year in which the legend drugs are 
94.22 	delivered by the pharmacy outside of Minnesota.
94.23 	The refund shall not be (c) No refund is allowed if the initial claim for refund is filed 
94.24 	more than one year after the original due date of the return end of the quarter in which the 
94.25 	legend drugs were delivered by the pharmacy outside of Minnesota. Interest on refunds paid 
94.26 	under this subdivision will begin begins to accrue 60 days after the date a claim for refund 
94.27 	is filed. For purposes of this subdivision, the date a claim is filed is the due date of the return 
94.28 	if a return is due or the date of the actual claim for refund, whichever is later.

94.29 	EFFECTIVE DATE. This section is effective for legend drugs delivered outside of 
94.30 	Minnesota after December 31, 2025.

95.1 	Sec. 18. Minnesota Statutes 2024, section 295.81, subdivision 10, is amended to read:
95.2 		Subd. 10.Deposit of revenues; account established. (a) The commissioner must deposit 
95.3 	the revenues, including penalties and interest, derived from the tax imposed by this section 
95.4 	as follows:
95.5 	(1) 80 percent to in the general fund; and.
95.6 	(2) 20 percent to the local government cannabis aid account in the special revenue fund.
95.7 	(b) The local government cannabis aid account is established in the special revenue fund.

95.8 	EFFECTIVE DATE. The amendment to paragraph (a) is effective for revenues received 
95.9 	after June 30, 2025. The amendment to paragraph (b) is effective January 2, 2026.

95.10 	Sec. 19. Minnesota Statutes 2024, section 609.902, subdivision 4, is amended to read:
95.11 		Subd. 4.Criminal act. "Criminal act" means conduct constituting, or a conspiracy or 
95.12 	attempt to commit, a felony violation of chapter 152, or a felony violation of section 297D.09;
95.13 	299F.79; 299F.80; 299F.82; 609.185; 609.19; 609.195; 609.20; 609.205; 609.221; 609.222; 
95.14 	609.223; 609.2231; 609.228; 609.235; 609.245; 609.25; 609.27; 609.322; 609.342; 609.343; 
95.15 	609.344; 609.345; 609.42; 609.48; 609.485; 609.495; 609.496; 609.497; 609.498; 609.52, 
95.16 	subdivision 2, if the offense is punishable under subdivision 3, clause (1), if the property is 
95.17 	a firearm, clause (3)(b), or clause (3)(d)(v); section 609.52, subdivision 2, paragraph (a), 
95.18 	clause (1) or (4); 609.527, if the crime is punishable under subdivision 3, clause (4); 609.528, 
95.19 	if the crime is punishable under subdivision 3, clause (4); 609.53; 609.561; 609.562; 609.582, 
95.20 	subdivision 1 or 2; 609.668, subdivision 6, paragraph (a); 609.67; 609.687; 609.713; 609.86; 
95.21 	609.894, subdivision 3 or 4; 609.895; 624.713; 624.7191; or 626A.02, subdivision 1, if the 
95.22 	offense is punishable under section 626A.02, subdivision 4, paragraph (a). "Criminal act" 
95.23 	also includes conduct constituting, or a conspiracy or attempt to commit, a felony violation 
95.24 	of section 609.52, subdivision 2, clause (3), (4), (15), or (16), if the violation involves an 
95.25 	insurance company as defined in section 60A.02, subdivision 4, a nonprofit health service 
95.26 	plan corporation regulated under chapter 62C, a health maintenance organization regulated 
95.27 	under chapter 62D, or a fraternal benefit society regulated under chapter 64B.

95.28 	EFFECTIVE DATE. This section is effective August 1, 2025.

95.29 	Sec. 20. CANCELLATION OF AMOUNTS IN LOCAL GOVERNMENT CANNABIS 
95.30 	AID ACCOUNT.
 95.31 	On January 2, 2026, any balance within the local government cannabis aid account in 
95.32 	the special revenue fund is canceled to the general fund.

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

96.2 	Sec. 21. APPROPRIATION; EXTENSION OF AVAILABILITY.
 96.3 	Notwithstanding Minnesota Statutes, section 16A.28, the appropriation in Laws 2023, 
96.4 	chapter 64, article 15, section 30, is available until June 30, 2027.

96.5 	Sec. 22. REPEALER.
 96.6 	(a) Minnesota Statutes 2024, sections 297D.01; 297D.02; 297D.03; 297D.04; 297D.05; 
96.7 	297D.06; 297D.07; 297D.08; 297D.085; 297D.09; 297D.10; 297D.11; 297D.12; and 
96.8 	297D.13, are repealed.
96.9 	(b) Minnesota Statutes 2024, section 477A.32, is repealed.
96.10 	(c) Minnesota Statutes 2024, section 13.4967, subdivision 5, is repealed.

96.11 	EFFECTIVE DATE. Paragraph (a) is effective August 1, 2025. Paragraph (b) is effective 
96.12 	for aids payable in 2026 and thereafter. Paragraph (c) is effective August 1, 2025.

96.13 	ARTICLE 9
96.14 	DEPARTMENT OF REVENUE; INDIVIDUAL INCOME AND CORPORATE 
96.15 	FRANCHISE TAXES

96.16 	Section 1. Minnesota Statutes 2024, section 116U.27, subdivision 2, is amended to read:
96.17 		Subd. 2.Credit allowed. A taxpayer is eligible for a credit up to 25 percent of eligible 
96.18 	production costs paid in a taxable year any consecutive 12-month period as described in 
96.19 	subdivision 1, paragraph (h). A taxpayer may only claim a credit if the taxpayer was issued 
96.20 	a credit certificate under subdivision 4.

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

96.23 	Sec. 2. Minnesota Statutes 2024, section 290.0132, subdivision 26, as amended by Laws 
96.24 	2025, chapter 20, section 230, is amended to read:
96.25 		Subd. 26.Social Security benefits. (a) A taxpayer is allowed a subtraction equal to the 
96.26 	greater of the simplified subtraction allowed under paragraph (b) or the alternate subtraction 
96.27 	determined under paragraph (e).
96.28 	(b) A taxpayer's simplified subtraction equals the amount of taxable social security 
96.29 	benefits, as reduced under paragraphs (c) and (d).
97.1 	(c) For a taxpayer other than a married taxpayer filing a separate return with adjusted 
97.2 	gross income above the phaseout threshold, the simplified subtraction is reduced by ten 
97.3 	percent for each $4,000 of adjusted gross income, or fraction thereof, in excess of the 
97.4 	phaseout threshold. The phaseout threshold equals:
97.5 	(1) $100,000 for a married taxpayer filing a joint return or surviving spouse;
97.6 	(2) $78,000 for a single or head of household taxpayer; and
97.7 	(3) for a married taxpayer filing a separate return, half the amount for a married taxpayer 
97.8 	filing a joint return.
97.9 	(d) For a married taxpayer filing a separate return, the simplified subtraction is reduced 
97.10 	by ten percent for each $2,000 of adjusted gross income, or fraction thereof, in excess of 
97.11 	the phaseout threshold.
97.12 	(e) A taxpayer's alternate subtraction equals the lesser of taxable Social Security benefits 
97.13 	or a maximum subtraction subject to the limits under paragraphs (f), (g), and (h).
97.14 	(f) For married taxpayers filing a joint return and surviving spouses, the maximum 
97.15 	subtraction under paragraph (e) equals $5,840. The maximum subtraction is reduced by 20 
97.16 	percent of provisional income over $88,630. In no case is the subtraction less than zero.
97.17 	(g) For single or head-of-household taxpayers, the maximum subtraction under paragraph 
97.18 	(e) equals $4,560. The maximum subtraction is reduced by 20 percent of provisional income 
97.19 	over $69,250. In no case is the subtraction less than zero.
97.20 	(h) For married taxpayers filing separate returns, the maximum subtraction under 
97.21 	paragraph (e) equals one-half the maximum subtraction for joint returns under paragraph 
97.22 	(f). The maximum subtraction is reduced by 20 percent of provisional income over one-half 
97.23 	the threshold amount specified in paragraph (d). In no case is the subtraction less than zero.
97.24 	(i) For purposes of this subdivision, "provisional income" means modified adjusted gross 
97.25 	income as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of the 
97.26 	taxable Social Security benefits received during the taxable year, and "Social Security 
97.27 	benefits" has the meaning given in section 86(d)(1) of the Internal Revenue Code.
97.28 	(j) The commissioner shall adjust the phaseout threshold amounts in paragraph (c), 
97.29 	clauses (1) and (2), as provided in section 270C.22. The statutory year is taxable year 2023. 
97.30 	The maximum subtraction and threshold amounts as adjusted must be rounded to the nearest 
97.31 	$10 amount. If the amount ends in $5, the amount is rounded up to the nearest $10 amount.

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

98.3 	Sec. 3. Minnesota Statutes 2024, section 290.0132, subdivision 34, is amended to read:
98.4 		Subd. 34.Qualified retirement benefits. (a) The amount of qualified public pension 
98.5 	income is a subtraction. The subtraction in this section is limited to:
98.6 	(1) $25,000 for a married taxpayer filing a joint return or surviving spouse; or
98.7 	(2) $12,500 for all other filers.
98.8 	(b) For a taxpayer with adjusted gross income above the phaseout threshold, the 
98.9 	subtraction is reduced by ten percent for each $2,000 of adjusted gross income, or fraction 
98.10 	thereof, in excess of the threshold. The phaseout threshold equals:
98.11 	(1) $100,000 for a married taxpayer filing a joint return or surviving spouse;
98.12 	(2) $78,000 for a single or head of household taxpayer; or
98.13 	(3) for a married taxpayer filing a separate return, half the amount for a married taxpayer 
98.14 	filing a joint return.
98.15 	(c) For the purposes of this section, "qualified public pension income" means any amount 
98.16 	received:
98.17 	(1) by a former basic member or the survivor of a former basic member, as an annuity 
98.18 	or survivor benefit, from a pension plan governed by chapter 353, 353E, 354, or 354A, 
98.19 	provided that the annuity or benefit is based on service for which the member or survivor 
98.20 	is not also receiving did not earn Social Security benefits;
98.21 	(2) as an annuity or survivor benefit from the legislators plan under chapter 3A, the State 
98.22 	Patrol retirement plan under chapter 352B, or the public employees police and fire plan 
98.23 	under sections 353.63 to 353.666, provided that the annuity or benefit is based on service 
98.24 	for which the member or survivor is not also receiving did not earn Social Security benefits;
98.25 	(3) from any retirement system administered by the federal government that is based on 
98.26 	service for which the recipient or the recipient's survivor is not also receiving did not earn
98.27 	Social Security benefits; or
98.28 	(4) from a public retirement system of or created by another state or any of its political 
98.29 	subdivisions, or the District of Columbia, if the income tax laws of the other state or district 
98.30 	permit a similar deduction or exemption or a reciprocal deduction or exemption of a 
99.1 	retirement or pension benefit received from a public retirement system of or created by this 
99.2 	state or any political subdivision of this state.
99.3 	(d) The commissioner must annually adjust the subtraction limits in paragraph (a) and 
99.4 	the phaseout thresholds in paragraph (b), as provided in section 270C.22. The statutory year 
99.5 	is taxable year 2023.

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

99.7 	Sec. 4. Minnesota Statutes 2024, section 290.0134, subdivision 20, is amended to read:
99.8 		Subd. 20.Delayed business interest. (a) For each taxable year an addition is required 
99.9 	under section 290.0131, subdivision 19 290.0133, subdivision 15, the amount of the addition, 
99.10 	less the sum of all amounts subtracted under this paragraph in all prior taxable years, that 
99.11 	does not exceed the limitation on business interest in section 163(j) of the Internal Revenue 
99.12 	Code of 1986, as amended through December 15, 2022, notwithstanding the special rule in 
99.13 	section 163(j)(10) of the Internal Revenue Code, is a subtraction. Any excess is a delayed 
99.14 	business interest carryforward, the entire amount of which must be carried to the earliest 
99.15 	taxable year. No subtraction is allowed under this paragraph for taxable years beginning 
99.16 	after December 31, 2022.
99.17 	(b) For each of the five taxable years beginning after December 31, 2022, there is allowed 
99.18 	a subtraction equal to one-fifth of the sum of all carryforward amounts that remain after the 
99.19 	expiration of paragraph (a).
99.20 	(c) Entities that are part of a combined reporting group under the unitary rules of section 
99.21 	290.17, subdivision 4, must compute deductions and additions as required under section 
99.22 	290.34, subdivision 5.

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

99.25 	Sec. 5. Minnesota Statutes 2024, section 290.0693, subdivision 1, is amended to read:
99.26 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
99.27 	the meanings given.
99.28 	(b) "Dependent" means any individual who is considered a dependent under sections 
99.29 	151 and 152 of the Internal Revenue Code and was claimed by the taxpayer as a dependent.
99.30 	(c) "Disability" has the meaning given in section 290A.03, subdivision 10.
100.1 	(d) "Exemption amount" means the exemption amount under section 290.0121, 
100.2 	subdivision 1, paragraph (b).
100.3 	(e) "Gross rent" means rent paid for the right of occupancy, at arm's length, of a 
100.4 	homestead, exclusive of charges for any medical services furnished by the landlord as a 
100.5 	part of the rental agreement, whether expressly set out in the rental agreement or not. The 
100.6 	gross rent of a resident of a nursing home or intermediate care facility is $600 per month. 
100.7 	The gross rent of a resident of an adult foster care home is $930 per month. The commissioner 
100.8 	shall annually adjust the amounts in this paragraph as provided in section 270C.22. The 
100.9 	statutory year is 2023. If the landlord and tenant have not dealt with each other at arm's 
100.10 	length and the commissioner determines that the gross rent charged was excessive, the 
100.11 	commissioner may adjust the gross rent to a reasonable amount for purposes of this section.
100.12 	(f) "Homestead" has the meaning given in section 290A.03, subdivision 6.
100.13 	(g) "Household" has the meaning given in section 290A.03, subdivision 4.
100.14 	(h) "Household income" means all income received by all persons of a household in a 
100.15 	taxable year while members of the household, other than income of a dependent.
100.16 	(i) "Income" means adjusted gross income, minus:
100.17 	(1) for the taxpayer's first dependent, the exemption amount multiplied by 1.4;
100.18 	(2) for the taxpayer's second dependent, the exemption amount multiplied by 1.3;
100.19 	(3) for the taxpayer's third dependent, the exemption amount multiplied by 1.2;
100.20 	(4) for the taxpayer's fourth dependent, the exemption amount multiplied by 1.1;
100.21 	(5) for the taxpayer's fifth dependent, the exemption amount; and
100.22 	(6) if the taxpayer or taxpayer's spouse had a disability or attained the age of 65 on or 
100.23 	before the close of the taxable year, the exemption amount.
100.24 	(j) "Rent constituting property taxes" means 17 percent of the gross rent actually paid 
100.25 	in cash, or its equivalent, or the portion of rent paid in lieu of property taxes, in any taxable 
100.26 	year by a claimant for the right of occupancy of the claimant's Minnesota homestead in the 
100.27 	taxable year, and which rent constitutes the basis, in the succeeding taxable year of a claim 
100.28 	for a credit under this section by the claimant. If an individual occupies a homestead with 
100.29 	another person or persons not related to the individual as the individual's spouse or as 
100.30 	dependents, and the other person or persons are residing at the homestead under a rental or 
100.31 	lease agreement with the individual, the amount of rent constituting property tax for the 
100.32 	individual equals that portion not covered by the rental agreement.

101.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
101.2 	31, 2024.

101.3 	Sec. 6. Minnesota Statutes 2024, section 290.0693, subdivision 6, is amended to read:
101.4 		Subd. 6.Residents of nursing homes, intermediate care facilities, long-term care 
101.5 	facilities, or facilities accepting housing support payments. (a) A taxpayer must not claim 
101.6 	a credit under this section if the taxpayer is a resident of a nursing home, intermediate care 
101.7 	facility, long-term residential facility, or a facility that accepts housing support payments 
101.8 	whose rent constituting property taxes is paid pursuant to the Supplemental Security Income 
101.9 	program under title XVI of the Social Security Act, the Minnesota supplemental aid program 
101.10 	under sections 256D.35 to 256D.54, the medical assistance program pursuant to title XIX 
101.11 	of the Social Security Act, or the housing support program under chapter 256I.
101.12 	(b) If only a portion of the rent constituting property taxes is paid by these programs, 
101.13 	the resident is eligible for a credit, but the credit calculated must be multiplied by a fraction, 
101.14 	the numerator of which is adjusted gross income, reduced by the total amount of income 
101.15 	from the above sources other than vendor payments under the medical assistance program
101.16 	and the denominator of which is adjusted gross income, plus vendor payments under the 
101.17 	medical assistance program, to determine the allowable credit.
101.18 	(c) Notwithstanding paragraphs (a) and (b), if the taxpayer was a resident of the nursing 
101.19 	home, intermediate care facility, long-term residential facility, or facility for which the rent 
101.20 	was paid for the claimant by the housing support program for only a portion of the taxable 
101.21 	year covered by the claim, the taxpayer may compute rent constituting property taxes by 
101.22 	disregarding the rent constituting property taxes from the nursing home or facility and may 
101.23 	use only that amount of rent constituting property taxes or property taxes payable relating 
101.24 	to that portion of the year when the taxpayer was not in the facility. The taxpayer's household 
101.25 	income is the income for the entire taxable year covered by the claim.

101.26 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
101.27 	31, 2024.

101.28 	Sec. 7. Minnesota Statutes 2024, section 290.0693, subdivision 8, is amended to read:
101.29 		Subd. 8.One claimant per household. Only one taxpayer per household per year is 
101.30 	entitled to claim a credit under this section. In the case of a married couple filing a joint 
101.31 	return, the couple may claim a credit under this section based on the total amount of both 
101.32 	spouses' gross rent. In the case of a married taxpayer filing a separate return, only one spouse 
101.33 	may claim the credit under this section. The credit amount for the spouse that claims the 
102.1 	credit must be calculated based on household income and both spouses' share of the gross 
102.2 	rent and not solely on the income of the spouse.

102.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
102.4 	31, 2024.

102.5 	Sec. 8. Minnesota Statutes 2024, section 290.0695, subdivision 2, is amended to read:
102.6 		Subd. 2.Credit allowed; limitation; carryover. (a) An eligible taxpayer is allowed a 
102.7 	credit against tax due under this chapter equal to 50 percent of eligible expenses, not to 
102.8 	exceed $3,000 per mile, multiplied by the number of miles of railroad track owned or leased 
102.9 	within the state by the eligible taxpayer for which the taxpayer made the qualified railroad 
102.10 	reconstruction or replacement expenditures as of the close of the taxable year for which the 
102.11 	credit is claimed made by an eligible taxpayer within this state during the taxable year for 
102.12 	which the credit is claimed.
102.13 	(b) The credit allowed under paragraph (a) for any taxable year must not exceed the 
102.14 	product of:
102.15 	(1) $3,000, multiplied by;
102.16 	(2) the number of miles of railroad track owned or leased by the eligible taxpayer within 
102.17 	this state as of the close of the taxable year for which the taxpayer made qualified railroad 
102.18 	reconstruction or replacement expenditures for which the credit is claimed.
102.19 	(b) (c) If the amount of the credit determined under this section for any taxable year 
102.20 	exceeds the liability for tax under this chapter, the excess is a credit carryover to each of 
102.21 	the five succeeding taxable years. The entire amount of the excess unused credit for the 
102.22 	taxable year must be carried first to the earliest of the taxable years to which the credit may 
102.23 	be carried and then to each successive year to which the credit may be carried. The amount 
102.24 	of the unused credit that may be added under this paragraph must not exceed the taxpayer's 
102.25 	liability for tax less the credit for the taxable year.
102.26 	(c) (d) An eligible taxpayer claiming a credit under this section may not also claim the 
102.27 	credit under section 297I.20, subdivision 6, for the same qualified railroad reconstruction 
102.28 	or replacement expenditures.

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

103.1 	Sec. 9. Laws 2023, chapter 1, section 22, is amended to read:
103.2 	Sec. 22. TEMPORARY ADDITIONS AND SUBTRACTIONS; INDIVIDUALS, 
103.3 	ESTATES, AND TRUSTS.
 103.4 	(a) For the purposes of this section:
103.5 	(1) "subtraction" has the meaning given in Minnesota Statutes, section 290.0132, 
103.6 	subdivision 1, and the rules in that subdivision apply to this section;
103.7 	(2) "addition" has the meaning given in Minnesota Statutes, section 290.0131, subdivision 
103.8 	1, and the rules in that subdivision apply to this section; and
103.9 	(3) the definitions in Minnesota Statutes, section 290.01, apply to this section.
103.10 	(b) The following amounts are subtractions:
103.11 	(1) the amount of wages used for the calculation of the employee retention credit for 
103.12 	employers affected by qualified disasters, to the extent not deducted from income, under 
103.13 	Public Law 116-94, division Q, section 203, or Public Law 116-260, division EE, section 
103.14 	303;
103.15 	(2) the amount of wages used for the calculation of the payroll credit for required paid 
103.16 	sick leave, to the extent not deducted from income, under Public Law 116-127, section 
103.17 	7001, as amended by section 9641 of Public Law 117-2;
103.18 	(3) the amount of wages or expenses used for the calculation of the payroll credit for 
103.19 	required paid family leave, to the extent not deducted from income, under Public Law 
103.20 	116-127, section 7003, as amended by section 9641 of Public Law 117-2;
103.21 	(4) the amount of wages used for the calculation of the employee retention credit for 
103.22 	employers subject to closure due to COVID-19, to the extent not deducted from income, 
103.23 	under Public Law 116-136, section 2301, as amended by Public Law 116-260, division EE, 
103.24 	section 207, and Public Law 117-2, section 9651; and
103.25 	(5) the amount required to be added to gross income to claim the credit in section 6432 
103.26 	of the Internal Revenue Code.
103.27 	(c) The following amounts are additions:
103.28 	(1) the amount subtracted for qualified tuition expenses under section 222 of the Internal 
103.29 	Revenue Code, as amended by Public Law 116-94, division Q, section 104;
103.30 	(2) the amount of above the line charitable contributions deducted under section 2204 
103.31 	of Public Law 116-136;
104.1 	(3) the amount of meal expenses in excess of the 50 percent limitation under section 
104.2 	274(n)(1) of the Internal Revenue Code allowed under subsection (n), paragraph (2), 
104.3 	subparagraph (D), of that section; and
104.4 	(4) the amount of charitable contributions deducted from federal taxable income by a 
104.5 	trust for taxable year 2020 under Public Law 116-136, section 2205(a).
104.6 	(d) The commissioner of revenue must apply the subtractions in paragraph (b) and the 
104.7 	additions in paragraph (c), when calculating the following:
104.8 	(1) the percentage under Minnesota Statutes, section 290.06, subdivision 2c, paragraph 
104.9 	(e);
104.10 	(2) a taxpayer's alternative minimum taxable income under Minnesota Statutes, section 
104.11 	290.091; and
104.12 	(3) "income" as defined in Minnesota Statutes, section 289A.08, subdivision 7, paragraph 
104.13 	(j), for the purposes of determining the tax for composite filers and the pass-through entity 
104.14 	tax, means the partner's share of federal adjusted gross income from the partnership modified 
104.15 	by the additions provided in Minnesota Statutes, section 290.0131, subdivisions 8 to 10, 
104.16 	16, 17, and 19, and the subtractions provided in (i) Minnesota Statutes, section 290.0132, 
104.17 	subdivisions 9, 27, and 28, to the extent the amount is assignable or allocable to Minnesota 
104.18 	under Minnesota Statutes, section 290.17; and (ii) Minnesota Statutes, section 290.0132, 
104.19 	subdivision 14. The subtraction allowed under Minnesota Statutes, section 290.0132, 
104.20 	subdivision 9, is only allowed on the composite tax computation to the extent the electing 
104.21 	partner would have been allowed the subtraction.
104.22 	(e) For the purpose of calculating property tax refunds under Minnesota Statutes, chapter 
104.23 	290A, any amounts allowed as a subtraction in paragraph (b) are excluded from "income," 
104.24 	as defined in Minnesota Statutes, section 290A.03, subdivision 3.

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

104.27 	ARTICLE 10
104.28 	DEPARTMENT OF REVENUE; SALES AND USE TAXES

104.29 	Section 1. Minnesota Statutes 2024, section 297A.71, subdivision 54, is amended to read:
104.30 		Subd. 54.Sustainable aviation fuel facilities. (a) Materials and supplies used or 
104.31 	consumed in and equipment incorporated into the construction, reconstruction, or 
104.32 	improvement of a facility located in Minnesota that produces or blends sustainable aviation 
105.1 	fuel, as defined in section 41A.30, subdivision 1, is if materials, supplies, and equipment 
105.2 	are purchased after June 30, 2027, and before July 1, 2034, are exempt.
105.3 	(b) The tax must be imposed and collected as if the rate under section 297A.62, 
105.4 	subdivision 1, applied and then refunded in the manner as provided for projects under section 
105.5 	297A.75, subdivision 1, clause (1).
105.6 	(c) For a project, a portion of which is not used to produce or blend sustainable aviation 
105.7 	fuel, the amount of purchases that are exempt under this subdivision must be determined 
105.8 	by multiplying the total purchases, as specified in paragraph (a), by the ratio of:
105.9 	(1) the capacity to generate sustainable aviation fuel either through production or 
105.10 	blending; and
105.11 	(2) the capacity to generate all fuels.
105.12 	(d) This subdivision expires July 1, 2034. The expiration does not affect refunds due for 
105.13 	sales and purchases made prior to July 1, 2034.

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

105.15 	Sec. 2. Minnesota Statutes 2024, section 297A.75, subdivision 1, as amended by Laws 
105.16 	2025, chapter 20, section 233, is amended to read:
105.17 		Subdivision 1.Tax collected. The tax on the gross receipts from the sale of the following 
105.18 	exempt items must be imposed and collected as if the sale were taxable and the rate under 
105.19 	section 297A.62, subdivision 1, applied. The exempt items include:
105.20 	(1) building materials for an agricultural processing facility exempt under section 
105.21 	297A.71, subdivision 13;
105.22 	(2) building materials for mineral production facilities exempt under section 297A.71, 
105.23 	subdivision 14;
105.24 	(3) building materials for correctional facilities under section 297A.71, subdivision 3;
105.25 	(4) building materials used in a residence for veterans with a disability exempt under 
105.26 	section 297A.71, subdivision 11;
105.27 	(5) elevators and building materials exempt under section 297A.71, subdivision 12;
105.28 	(6) materials and supplies for qualified low-income housing under section 297A.71, 
105.29 	subdivision 23;
105.30 	(7) materials, supplies, and equipment for municipal electric utility facilities under 
105.31 	section 297A.71, subdivision 35;
106.1 	(8) equipment and materials used for the generation, transmission, and distribution of 
106.2 	electrical energy and an aerial camera package exempt under section 297A.68, subdivision 
106.3 	37;
106.4 	(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph 
106.5 	(a), clause (10);
106.6 	(10) materials, supplies, and equipment for construction or improvement of projects and 
106.7 	facilities under section 297A.71, subdivision 40;
106.8 	(11) enterprise information technology equipment and computer software for use in a 
106.9 	qualified data center exempt under section 297A.68, subdivision 42;
106.10 	(12) materials, supplies, and equipment for qualifying capital projects under section 
106.11 	297A.71, subdivision 44, paragraphs (a) and (b);
106.12 	(13) items purchased for use in providing critical access dental services exempt under 
106.13 	section 297A.70, subdivision 7, paragraph (c);
106.14 	(14) items and services purchased under a business subsidy agreement for use or 
106.15 	consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 
106.16 	44;
106.17 	(15) building materials, equipment, and supplies for constructing or replacing real 
106.18 	property exempt under section 297A.71, subdivisions 49; 50, paragraph (b); and 51;
106.19 	(16) building materials, equipment, and supplies for qualifying capital projects under 
106.20 	section 297A.71, subdivision 52; and
106.21 	(17) building materials, equipment, and supplies for constructing, remodeling, expanding, 
106.22 	or improving a fire station, police station, or related facilities exempt under section 297A.71, 
106.23 	subdivision 53.; and
106.24 	(18) building materials, equipment, and supplies for constructing, remodeling, or 
106.25 	improving a sustainable aviation fuel facility exempt under section 297A.71, subdivision 
106.26 	54.

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

106.28 	Sec. 3. Minnesota Statutes 2024, section 297A.75, subdivision 2, is amended to read:
106.29 		Subd. 2.Refund; eligible persons. Upon application on forms prescribed by the 
106.30 	commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must 
106.31 	be paid to the applicant. Only the following persons may apply for the refund:
107.1 	(1) for subdivision 1, clauses (1), (2), and (13), the applicant must be the purchaser;
107.2 	(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;
107.3 	(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits 
107.4 	provided in United States Code, title 38, chapter 21;
107.5 	(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead 
107.6 	property;
107.7 	(5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;
107.8 	(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a 
107.9 	joint venture of municipal electric utilities;
107.10 	(7) for subdivision 1, clauses (8), (11), and (14), the owner of the qualifying business;
107.11 	(8) for subdivision 1, clauses (9), (10), (12), (16), and (17), the applicant must be the 
107.12 	governmental entity that owns or contracts for the project or facility; and
107.13 	(9) for subdivision 1, clause (15), the applicant must be the owner or developer of the 
107.14 	building or project.; and
107.15 	(10) for subdivision 1, clause (18), the applicant must be the owner or developer of the 
107.16 	sustainable aviation fuel facility.

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

107.18 	Sec. 4. Minnesota Statutes 2024, section 297A.75, subdivision 3, is amended to read:
107.19 		Subd. 3.Application. (a) The application must include sufficient information to permit 
107.20 	the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor, 
107.21 	or builder, under subdivision 1, clauses (3) to (12) or (14) to (17) (18), the contractor, 
107.22 	subcontractor, or builder must furnish to the refund applicant a statement including the cost 
107.23 	of the exempt items and the taxes paid on the items unless otherwise specifically provided 
107.24 	by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to refunds under 
107.25 	this section.
107.26 	(b) An applicant may not file more than two applications per calendar year for refunds 
107.27 	for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.

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

108.1 	Sec. 5. Minnesota Statutes 2024, section 297A.94, is amended to read:
108.2 	297A.94 DEPOSIT OF REVENUES.
108.3 	(a) Except as provided in this section, the commissioner shall deposit the revenues, 
108.4 	including interest and penalties, derived from the taxes imposed by this chapter in the state 
108.5 	treasury and credit them to the general fund.
108.6 	(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic 
108.7 	account in the special revenue fund if:
108.8 	(1) the taxes are derived from sales and use of property and services purchased for the 
108.9 	construction and operation of an agricultural resource project; and
108.10 	(2) the purchase was made on or after the date on which a conditional commitment was 
108.11 	made for a loan guaranty for the project under section 41A.04, subdivision 3.
108.12 	The commissioner of management and budget shall certify to the commissioner the date on 
108.13 	which the project received the conditional commitment. The amount deposited in the loan 
108.14 	guaranty account must be reduced by any refunds and by the costs incurred by the Department 
108.15 	of Revenue to administer and enforce the assessment and collection of the taxes.
108.16 	(c) The commissioner shall deposit the revenues, including interest and penalties, derived 
108.17 	from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3, 
108.18 	paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:
108.19 	(1) first to the general obligation special tax bond debt service account in each fiscal 
108.20 	year the amount required by section 16A.661, subdivision 3, paragraph (b); and
108.21 	(2) after the requirements of clause (1) have been met, the balance to the general fund.
108.22 	(d) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit 
108.23 	in the state treasury the revenues collected under section 297A.64, subdivision 1, including 
108.24 	interest and penalties and minus refunds, and credit them to the highway user tax distribution 
108.25 	fund.
108.26 	(e) The commissioner shall deposit the revenues, including interest and penalties, 
108.27 	collected under section 297A.64, subdivision 5, in the state treasury and credit them to the 
108.28 	general fund. By July 15 of each year the commissioner shall transfer to the highway user 
108.29 	tax distribution fund an amount equal to the excess fees collected under section 297A.64, 
108.30 	subdivision 5, for the previous calendar year.
108.31 	(f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the deposit 
108.32 	of revenues under paragraph (d), the commissioner shall deposit into the state treasury and 
109.1 	credit to the highway user tax distribution fund an amount equal to the estimated revenues 
109.2 	derived from the tax rate imposed under section 297A.62, subdivision 1, on the lease or 
109.3 	rental for not more than 28 days of rental motor vehicles subject to section 297A.64. The 
109.4 	commissioner shall estimate the amount of sales tax revenue deposited under this paragraph 
109.5 	based on the amount of revenue deposited under paragraph (d).
109.6 	(g) Each month the commissioner must deposit the an amount equal to the estimated
109.7 	revenues derived from the taxes imposed under section 297A.62, subdivision 1, on the sale 
109.8 	and purchase of motor vehicle repair and replacement parts in the state treasury and credit:
109.9 	(1) 43.5 percent in each fiscal year to the highway user tax distribution fund;
109.10 	(2) a percentage to the transportation advancement account under section 174.49 as 
109.11 	follows:
109.12 	(i) 3.5 percent in fiscal year 2024;
109.13 	(ii) 4.5 percent in fiscal year 2025;
109.14 	(iii) 5.5 percent in fiscal year 2026;
109.15 	(iv) 7.5 percent in fiscal year 2027;
109.16 	(v) 14.5 percent in fiscal year 2028;
109.17 	(vi) 21.5 percent in fiscal year 2029;
109.18 	(vii) 28.5 percent in fiscal year 2030;
109.19 	(viii) 36.5 percent in fiscal year 2031;
109.20 	(ix) 44.5 percent in fiscal year 2032; and
109.21 	(x) 56.5 percent in fiscal year 2033 and thereafter; and
109.22 	(3) the remainder in each fiscal year to the general fund.
109.23 	After each February forecast, and prior to the following April 15, the commissioner shall 
109.24 	estimate the monthly deposit amount for use in the following fiscal year based on the estimate 
109.25 	of average revenue derived from the taxes imposed under section 297A.62, subdivision 1, 
109.26 	on the sale and purchase of motor vehicle repair and replacement parts from the department's 
109.27 	three most recent consumption tax models. For purposes of this paragraph, "motor vehicle" 
109.28 	has the meaning given in section 297B.01, subdivision 11, and "motor vehicle repair and 
109.29 	replacement parts" includes (i) all parts, tires, accessories, and equipment incorporated into 
109.30 	or affixed to the motor vehicle as part of the motor vehicle maintenance and repair, and (ii) 
109.31 	paint, oil, and other fluids that remain on or in the motor vehicle as part of the motor vehicle 
110.1 	maintenance or repair. For purposes of this paragraph, "tire" means any tire of the type used 
110.2 	on highway vehicles, if wholly or partially made of rubber and if marked according to 
110.3 	federal regulations for highway use.
110.4 	(h) 81.56 percent of the revenues, including interest and penalties, transmitted to the 
110.5 	commissioner under section 297A.65, must be deposited by the commissioner in the state 
110.6 	treasury as follows:
110.7 	(1) 47.5 percent of the receipts must be deposited in the heritage enhancement account 
110.8 	in the game and fish fund, and may be spent only on activities that improve, enhance, or 
110.9 	protect fish and wildlife resources, including conservation, restoration, and enhancement 
110.10 	of land, water, and other natural resources of the state;
110.11 	(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may 
110.12 	be spent only for state parks and trails;
110.13 	(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may 
110.14 	be spent only on metropolitan park and trail grants;
110.15 	(4) three percent of the receipts must be deposited in the natural resources fund, and 
110.16 	may be spent only on local trail grants;
110.17 	(5) two percent of the receipts must be deposited in the natural resources fund, and may 
110.18 	be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory, 
110.19 	and the Duluth Zoo; and
110.20 	(6) 2.5 percent of the receipts must be deposited in the pollinator account established in 
110.21 	section 103B.101, subdivision 19.
110.22 	(i) 1.5 percent of the revenues, including interest and penalties, transmitted to the 
110.23 	commissioner under section 297A.65 must be deposited in a regional parks and trails account 
110.24 	in the natural resources fund and may only be spent for parks and trails of regional 
110.25 	significance outside of the seven-county metropolitan area under section 85.535, based on 
110.26 	recommendations from the Greater Minnesota Regional Parks and Trails Commission under 
110.27 	section 85.536.
110.28 	(j) 1.5 percent of the revenues, including interest and penalties, transmitted to the 
110.29 	commissioner under section 297A.65 must be deposited in an outdoor recreational 
110.30 	opportunities for underserved communities account in the natural resources fund and may 
110.31 	only be spent on projects and activities that connect diverse and underserved Minnesotans 
110.32 	through expanding cultural environmental experiences, exploration of their environment, 
110.33 	and outdoor recreational activities.
111.1 	(k) The revenue dedicated under paragraph (h) may not be used as a substitute for 
111.2 	traditional sources of funding for the purposes specified, but the dedicated revenue shall 
111.3 	supplement traditional sources of funding for those purposes. Land acquired with money 
111.4 	deposited in the game and fish fund under paragraph (h) must be open to public hunting 
111.5 	and fishing during the open season, except that in aquatic management areas or on lands 
111.6 	where angling easements have been acquired, fishing may be prohibited during certain times 
111.7 	of the year and hunting may be prohibited. At least 87 percent of the money deposited in 
111.8 	the game and fish fund for improvement, enhancement, or protection of fish and wildlife 
111.9 	resources under paragraph (h) must be allocated for field operations.
111.10 	(l) The commissioner must deposit the revenues, including interest and penalties minus 
111.11 	any refunds, derived from the sale of items regulated under section 624.20, subdivision 1, 
111.12 	that may be sold to persons 18 years old or older and that are not prohibited from use by 
111.13 	the general public under section 624.21, in the state treasury and credit:
111.14 	(1) 25 percent to the volunteer fire assistance grant account established under section 
111.15 	88.068;
111.16 	(2) 25 percent to the fire safety account established under section 297I.06, subdivision 
111.17 	3; and
111.18 	(3) the remainder to the general fund.
111.19 	For purposes of this paragraph, the percentage of total sales and use tax revenue derived 
111.20 	from the sale of items regulated under section 624.20, subdivision 1, that are allowed to be 
111.21 	sold to persons 18 years old or older and are not prohibited from use by the general public 
111.22 	under section 624.21, is a set percentage of the total sales and use tax revenues collected in 
111.23 	the state, with the percentage determined under Laws 2017, First Special Session chapter 
111.24 	1, article 3, section 39.
111.25 	(m) The revenues deposited under paragraphs (a) to (l) do not include the revenues, 
111.26 	including interest and penalties, generated by the sales tax imposed under section 297A.62, 
111.27 	subdivision 1a, which must be deposited as provided under the Minnesota Constitution, 
111.28 	article XI, section 15.

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

111.30 	Sec. 6. Minnesota Statutes 2024, section 297A.99, subdivision 10, is amended to read:
111.31 		Subd. 10.Use of zip code in determining location of sale. (a) The lowest combined 
111.32 	tax rate imposed in the zip code area applies if the area includes more than one tax rate in 
111.33 	any level of taxing jurisdictions.
112.1 	(b) If a nine-digit zip code designation is not available for a street address or if a seller 
112.2 	is unable to determine the nine-digit zip code designation of a purchaser after exercising 
112.3 	due diligence to determine the designation, the seller may apply the rate for the five-digit 
112.4 	zip code area.
112.5 	(c) For the purposes of this subdivision, there is a rebuttable presumption that a seller 
112.6 	has exercised due diligence for a sale that requires a full street address to be completed if 
112.7 	the seller has attempted to determine the nine-digit zip code designation by utilizing (1) the 
112.8 	look-up application form the United States Postal Service; (2) software certified by the 
112.9 	Coding Accuracy Support System; or (3) other software approved by the governing board 
112.10 	that makes this designation from the street address and the five-digit zip code of the 
112.11 	purchaser. For a sale that does not require a full street address to be completed, a seller has 
112.12 	not exercised due diligence unless the seller has obtained or requested from the purchaser 
112.13 	(1) the complete street address, including the five-digit zip code; or (2) the nine-digit zip 
112.14 	code. A seller that has not exercised due diligence is not relieved from any additional liability 
112.15 	that may be due as a result of incorrect sourcing.
112.16 	(d) Notwithstanding subdivision 13, this subdivision applies to all local sales taxes 
112.17 	without regard to the date of authorization. This subdivision does not apply when the 
112.18 	purchased product is received by the purchaser at the business location of the seller.

112.19 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
112.20 	30, 2025.

112.21 	Sec. 7. Minnesota Statutes 2024, section 297A.995, subdivision 2, is amended to read:
112.22 		Subd. 2.Definitions. As used in this section:
112.23 	(a) "Agreement" means the Streamlined Sales and Use Tax Agreement.
112.24 	(b) "Certified automated system" means software certified jointly by the states that are 
112.25 	signatories to the agreement to calculate the tax imposed by each jurisdiction on a transaction, 
112.26 	determine the amount of tax to remit to the appropriate state, and maintain a record of the 
112.27 	transaction.
112.28 	(c) "Certified service provider" means an agent certified jointly by the states that are 
112.29 	signatories to the agreement to perform all of the seller's sales tax functions under the 
112.30 	Agreement to perform the seller's sales and use tax functions as outlined in the contract 
112.31 	between the Streamlined Sales Tax Governing Board and the certified service providers, 
112.32 	except that sellers retain the obligation to remit tax on their own purchases.

113.1 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
113.2 	30, 2025.

113.3 	Sec. 8. Minnesota Statutes 2024, section 297A.995, subdivision 10, is amended to read:
113.4 		Subd. 10.Relief from certain liability. (a) Notwithstanding subdivision 9, sellers and 
113.5 	certified service providers are relieved from liability to the state for having charged and 
113.6 	collected the incorrect amount of sales or use tax resulting from the seller or certified service 
113.7 	provider (1) relying on erroneous data provided by the commissioner in the database files 
113.8 	on tax rates, boundaries, or taxing jurisdiction assignments, or (2) relying on erroneous data 
113.9 	provided by the state in its taxability matrix concerning the taxability of products and 
113.10 	services.
113.11 	(b) Notwithstanding subdivision 9, sellers and certified service providers are relieved 
113.12 	from liability to the state for having charged and collected the incorrect amount of sales or 
113.13 	use tax resulting from the seller or certified service provider relying on the certification by 
113.14 	the commissioner as to the accuracy of a certified automated system as to the taxability of 
113.15 	product categories. The relief from liability provided by this paragraph does not apply when 
113.16 	the sellers or certified service providers have incorrectly classified an item or transaction 
113.17 	into a product category, unless the item or transaction within a product category was approved 
113.18 	by the commissioner or approved jointly by the states that are signatories to the agreement. 
113.19 	The sellers and certified service providers must revise a classification within ten days after 
113.20 	receipt of notice from the commissioner that an item or transaction within a product category 
113.21 	is incorrectly classified as to its taxability, or they are not relieved from liability for the 
113.22 	incorrect classification following the notification.
113.23 	(c) Notwithstanding subdivision 9, if there are not at least 30 days between the enactment 
113.24 	of a new tax rate and the effective date of the new rate, sellers and certified service providers 
113.25 	shall be relieved from liability for failing to collect tax at the new rate during the first 30 
113.26 	days of the rate change, beginning on the day after the date of enactment of the rate change, 
113.27 	provided the seller or certified service provider continued to impose and collect the tax at 
113.28 	the immediately preceding tax rate during this period. Relief from liability provided by this 
113.29 	paragraph shall not apply if the failure to collect at the newly effective rate extends beyond 
113.30 	30 days after the enactment of the new rate. The relief provided by this paragraph shall not 
113.31 	apply if the commissioner determines that the seller or certified service provider fraudulently 
113.32 	failed to collect at the new rate or that the seller or certified service provider solicited 
113.33 	purchasers based on the immediately preceding tax rate.
114.1 	(d) Certified service providers are relieved from liability to the state when a seller fails 
114.2 	to remit all or a portion of the seller's taxes prior to the due date of the remittance if the 
114.3 	certified service provider has provided notification as outlined in the contract between the 
114.4 	Streamlined Sales Tax Governing Board and the certified service provider.

114.5 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
114.6 	30, 2025.

114.7 	ARTICLE 11
114.8 	DEPARTMENT OF REVENUE; MISCELLANEOUS

114.9 	Section 1. Minnesota Statutes 2024, section 270C.445, subdivision 3, is amended to read:
114.10 		Subd. 3.Standards of conduct. No tax preparer shall:
114.11 	(1) without good cause fail to promptly, diligently, and without unreasonable delay 
114.12 	complete a client's return;
114.13 	(2) obtain the signature of a client to a return or authorizing document that contains 
114.14 	blank spaces to be filled in after it has been signed;
114.15 	(3) fail to sign a client's return when compensation for services rendered has been made;
114.16 	(4) fail to provide on a client's return the preparer tax identification number when required 
114.17 	under section 6109(a)(4) of the Internal Revenue Code or section 289A.60, subdivision 28;
114.18 	(5) fail or refuse to give a client a copy of any document requiring the client's signature 
114.19 	within a reasonable time after the client signs the document;
114.20 	(6) fail to retain for at least four years a copy of a client's returns;
114.21 	(7) fail to maintain a confidential relationship with clients or former clients;
114.22 	(8) fail to take commercially reasonable measures to safeguard a client's nonpublic 
114.23 	personal information;
114.24 	(9) make, authorize, publish, disseminate, circulate, or cause to make, either directly or 
114.25 	indirectly, any false, deceptive, or misleading statement or representation relating to or in 
114.26 	connection with the offering or provision of tax preparation services;
114.27 	(10) require a client to enter into a loan arrangement in order to complete a client's return;
114.28 	(11) claim credits or deductions on a client's return for which the tax preparer knows or 
114.29 	reasonably should know the client does not qualify;
115.1 	(12) report a household income on a client's claim filed under chapter 290A that the tax 
115.2 	preparer knows or reasonably should know is not accurate;
115.3 	(13) engage in any conduct that is subject to a penalty under section 289A.60, subdivision 
115.4 	13, 20, 20a, 26, or 28;
115.5 	(14) whether or not acting as a taxpayer representative, fail to conform to the standards 
115.6 	of conduct required by Minnesota Rules, part 8052.0300, subpart 4;
115.7 	(15) whether or not acting as a taxpayer representative, engage in any conduct that is 
115.8 	incompetent conduct under Minnesota Rules, part 8052.0300, subpart 5;
115.9 	(16) whether or not acting as a taxpayer representative, engage in any conduct that is 
115.10 	disreputable conduct under Minnesota Rules, part 8052.0300, subpart 6;
115.11 	(17) charge, offer to accept, or accept a fee based upon a percentage of an anticipated 
115.12 	refund for tax preparation services;
115.13 	(18) under any circumstances, withhold or fail to return to a client a document provided 
115.14 	by the client for use in preparing the client's return;
115.15 	(19) take control or ownership of a client's refund or department payment by any means, 
115.16 	including:
115.17 	(i) directly or indirectly endorsing or otherwise negotiating a check or other refund 
115.18 	instrument, including an electronic version of a check;
115.19 	(ii) directing an electronic or direct deposit of the refund or department payment into an 
115.20 	account unless the client's name is on the account; and
115.21 	(iii) establishing or using an account in the preparer's name to receive a client's refund
115.22 	or department payment through a direct deposit or any other instrument unless the client's 
115.23 	name is also on the account, except that a taxpayer may assign the portion of a refund 
115.24 	representing the Minnesota education credit available under section 290.0674 to a bank 
115.25 	account without the client's name, as provided under section 290.0679;
115.26 	(20) fail to act in the best interests of the client;
115.27 	(21) fail to safeguard and account for any money handled for the client;
115.28 	(22) fail to disclose all material facts of which the preparer has knowledge which might 
115.29 	reasonably affect the client's rights and interests;
115.30 	(23) violate any provision of section 332.37;
116.1 	(24) include any of the following in any document provided or signed in connection 
116.2 	with the provision of tax preparation services:
116.3 	(i) a hold harmless clause;
116.4 	(ii) a confession of judgment or a power of attorney to confess judgment against the 
116.5 	client or appear as the client in any judicial proceeding;
116.6 	(iii) a waiver of the right to a jury trial, if applicable, in any action brought by or against 
116.7 	a debtor;
116.8 	(iv) an assignment of or an order for payment of wages or other compensation for 
116.9 	services;
116.10 	(v) a provision in which the client agrees not to assert any claim or defense otherwise 
116.11 	available;
116.12 	(vi) a waiver of any provision of this section or a release of any obligation required to 
116.13 	be performed on the part of the tax preparer; or
116.14 	(vii) a waiver of the right to injunctive, declaratory, or other equitable relief or relief on 
116.15 	a class basis; or
116.16 	(25) if making, providing, or facilitating a refund anticipation loan, fail to provide all 
116.17 	disclosures required by the federal Truth in Lending Act, United States Code, title 15, in a 
116.18 	form that may be retained by the client.

116.19 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
116.20 	31, 2024.

116.21 	Sec. 2. Minnesota Statutes 2024, section 270C.445, subdivision 6, is amended to read:
116.22 		Subd. 6.Enforcement; administrative order; penalties; cease and desist. (a) The 
116.23 	commissioner may impose an administrative penalty of not more than $1,000 per violation 
116.24 	of subdivision 3 or 5, or section 270C.4451, provided that a penalty may not be imposed 
116.25 	for any conduct for which a tax preparer penalty is imposed under section 289A.60, 
116.26 	subdivision 13. The commissioner may terminate a tax preparer's authority to transmit 
116.27 	returns electronically to the state, if the commissioner determines the tax preparer engaged 
116.28 	in a pattern and practice of violating this section. Imposition of a penalty under this paragraph 
116.29 	is subject to the contested case procedure under chapter 14. The commissioner shall collect 
116.30 	the penalty in the same manner as the income tax. There is no right to make a claim for 
116.31 	refund under section 289A.50 of the penalty imposed under this paragraph. Penalties imposed 
116.32 	under this paragraph are public data.
117.1 	(b) In addition to the penalty under paragraph (a), if the commissioner determines that 
117.2 	a tax preparer has violated subdivision 3 or 5, or section 270C.4451, the commissioner may 
117.3 	issue an administrative order to the tax preparer requiring the tax preparer to cease and 
117.4 	desist from committing the violation. The administrative order may include an administrative 
117.5 	penalty provided in paragraph (a).
117.6 	(c) If the commissioner issues an administrative order under paragraph (b), the 
117.7 	commissioner must send the order to the tax preparer addressed to the last known address 
117.8 	of the tax preparer.
117.9 	(d) A cease and desist order under paragraph (b) must:
117.10 	(1) describe the act, conduct, or practice committed and include a reference to the law 
117.11 	that the act, conduct, or practice violates; and
117.12 	(2) provide notice that the tax preparer may request a hearing as provided in this 
117.13 	subdivision.
117.14 	(e) Within 30 days after the commissioner issues an administrative order under paragraph 
117.15 	(b), the tax preparer may request a hearing to review the commissioner's action. The request 
117.16 	for hearing must be made in writing and must be served on the commissioner at the address 
117.17 	specified in the order. The hearing request must specifically state the reasons for seeking 
117.18 	review of the order. The date on which a request for hearing is served by mail is the postmark 
117.19 	date on the envelope in which the request for hearing is mailed.
117.20 	(f) If a tax preparer does not timely request a hearing regarding an administrative order 
117.21 	issued under paragraph (b), the order becomes a final order of the commissioner and is not 
117.22 	subject to review by any court or agency.
117.23 	(g) If a tax preparer timely requests a hearing regarding an administrative order issued 
117.24 	under paragraph (b), the hearing must be commenced by the issuance of a notice of and 
117.25 	order for hearing by the commissioner within ten 30 days after the commissioner receives 
117.26 	the request for a hearing.
117.27 	(h) A hearing timely requested under paragraph (e) is subject to the contested case 
117.28 	procedure under chapter 14, as modified by this subdivision. The administrative law judge 
117.29 	must issue a report containing findings of fact, conclusions of law, and a recommended 
117.30 	order within ten 30 days after the completion of the hearing, the receipt of late-filed exhibits, 
117.31 	or the submission of written arguments, whichever is later.
117.32 	(i) Within five 15 days of the date of the administrative law judge's report issued under 
117.33 	paragraph (h), any party aggrieved by the administrative law judge's report may submit 
118.1 	written exceptions and arguments to the commissioner. Within 15 45 days after receiving 
118.2 	the administrative law judge's report, the commissioner must issue an order vacating, 
118.3 	modifying, or making final the administrative order.
118.4 	(j) The commissioner and the tax preparer requesting a hearing may by agreement 
118.5 	lengthen any time periods prescribed in paragraphs (g) to (i).
118.6 	(k) An administrative order issued under paragraph (b) is in effect until it is modified 
118.7 	or vacated by the commissioner or an appellate court. The administrative hearing provided 
118.8 	by paragraphs (e) to (i) and any appellate judicial review as provided in chapter 14 constitute 
118.9 	the exclusive remedy for a tax preparer aggrieved by the order.
118.10 	(l) The commissioner may impose an administrative penalty, in addition to the penalty 
118.11 	under paragraph (a), up to $5,000 per violation of a cease and desist order issued under 
118.12 	paragraph (b). Imposition of a penalty under this paragraph is subject to the contested case 
118.13 	procedure under chapter 14. Within 30 days after the commissioner imposes a penalty under 
118.14 	this paragraph, the tax preparer assessed the penalty may request a hearing to review the 
118.15 	penalty order. The request for hearing must be made in writing and must be served on the 
118.16 	commissioner at the address specified in the order. The hearing request must specifically 
118.17 	state the reasons for seeking review of the order. The cease and desist order issued under 
118.18 	paragraph (b) is not subject to review in a proceeding to challenge the penalty order under 
118.19 	this paragraph. The date on which a request for hearing is served by mail is the postmark 
118.20 	date on the envelope in which the request for hearing is mailed. If the tax preparer does not 
118.21 	timely request a hearing, the penalty order becomes a final order of the commissioner and 
118.22 	is not subject to review by any court or agency. A penalty imposed by the commissioner 
118.23 	under this paragraph may be collected and enforced by the commissioner as an income tax 
118.24 	liability. There is no right to make a claim for refund under section 289A.50 of the penalty 
118.25 	imposed under this paragraph. A penalty imposed under this paragraph is public data.
118.26 	(m) If a tax preparer violates a cease and desist order issued under paragraph (b), the 
118.27 	commissioner may terminate the tax preparer's authority to transmit returns electronically 
118.28 	to the state. Termination under this paragraph is public data.
118.29 	(n) A cease and desist order issued under paragraph (b) is public data when it is a final 
118.30 	order.
118.31 	(o) Notwithstanding any other law, the commissioner may impose a penalty or take other 
118.32 	action under this subdivision against a tax preparer, with respect to a return, within the 
118.33 	period to assess tax on that return as provided by sections 289A.38 to 289A.382.
119.1 	(p) Notwithstanding any other law, the imposition of a penalty or any other action against 
119.2 	a tax preparer under this subdivision, other than with respect to a return, must be taken by 
119.3 	the commissioner within five years of the violation of statute.

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

119.6 	Sec. 3. Minnesota Statutes 2024, section 273.13, subdivision 22, is amended to read:
119.7 		Subd. 22.Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and 
119.8 	(c), real estate which is residential and used for homestead purposes is class 1a. In the case 
119.9 	of a duplex or triplex in which one of the units is used for homestead purposes, the entire 
119.10 	property is deemed to be used for homestead purposes. The market value of class 1a property 
119.11 	must be determined based upon the value of the house, garage, and land.
119.12 	The first $500,000 of market value of class 1a property has a net classification rate of 
119.13 	one percent of its market value; and the market value of class 1a property that exceeds 
119.14 	$500,000 has a classification rate of 1.25 percent of its market value.
119.15 	(b) Class 1b property includes homestead real estate or homestead manufactured homes 
119.16 	used for the purposes of a homestead by:
119.17 	(1) any person who is blind as defined in section 256D.35, or the person who is blind 
119.18 	and the spouse of the person who is blind;
119.19 	(2) any person who is permanently and totally disabled or by the person with a disability 
119.20 	and the spouse of the person with a disability; or
119.21 	(3) the surviving spouse of a veteran who was permanently and totally disabled 
119.22 	homesteading a property classified under this paragraph for taxes payable in 2008.
119.23 	Property is classified and assessed under clause (2) only if the government agency or 
119.24 	income-providing source certifies, upon the request of the homestead occupant, that the 
119.25 	homestead occupant satisfies the disability requirements of this paragraph, and that the 
119.26 	property is not eligible for the valuation exclusion under subdivision 34.
119.27 	Property is classified and assessed under paragraph (b) only if the commissioner of 
119.28 	revenue or the county assessor certifies that the homestead occupant satisfies the requirements 
119.29 	of this paragraph.
119.30 	Permanently and totally disabled for the purpose of this subdivision means a condition 
119.31 	which is permanent in nature and totally incapacitates the person from working at an 
119.32 	occupation which brings the person an income. The first $50,000 market value of class 1b 
120.1 	property has a net classification rate of .45 0.45 percent of its market value. The remaining 
120.2 	market value of class 1b property is classified as class 1a or property, class 2a property, or 
120.3 	class 4d(2) property, whichever is appropriate.
120.4 	(c) Class 1c property is commercial use real and personal property that abuts public 
120.5 	water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by 
120.6 	the Department of Natural Resources, and is devoted to temporary and seasonal residential 
120.7 	occupancy for recreational purposes but not devoted to commercial purposes for more than 
120.8 	250 days in the year preceding the year of assessment, and that includes a portion used as 
120.9 	a homestead by the owner, which includes a dwelling occupied as a homestead by a 
120.10 	shareholder of a corporation that owns the resort, a partner in a partnership that owns the 
120.11 	resort, or a member of a limited liability company that owns the resort even if the title to 
120.12 	the homestead is held by the corporation, partnership, or limited liability company. For 
120.13 	purposes of this paragraph, property is devoted to a commercial purpose on a specific day 
120.14 	if any portion of the property, excluding the portion used exclusively as a homestead, is 
120.15 	used for residential occupancy and a fee is charged for residential occupancy. Class 1c 
120.16 	property must contain three or more rental units. A "rental unit" is defined as a cabin, 
120.17 	condominium, townhouse, sleeping room, or individual camping site equipped with water 
120.18 	and electrical hookups for recreational vehicles. Class 1c property must provide recreational 
120.19 	activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill 
120.20 	or cross-country ski equipment; provide marina services, launch services, or guide services; 
120.21 	or sell bait and fishing tackle. Any unit in which the right to use the property is transferred 
120.22 	to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies 
120.23 	for class 1c even though it may remain available for rent. A camping pad offered for rent 
120.24 	by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of 
120.25 	the rental agreement, as long as the use of the camping pad does not exceed 250 days. If 
120.26 	the same owner owns two separate parcels that are located in the same township, and one 
120.27 	of those properties is classified as a class 1c property and the other would be eligible to be 
120.28 	classified as a class 1c property if it was used as the homestead of the owner, both properties 
120.29 	will be assessed as a single class 1c property; for purposes of this sentence, properties are 
120.30 	deemed to be owned by the same owner if each of them is owned by a limited liability 
120.31 	company, and both limited liability companies have the same membership. The portion of 
120.32 	the property used as a homestead is class 1a property under paragraph (a). The remainder 
120.33 	of the property is classified as follows: the first $600,000 of market value is tier I, the next 
120.34 	$1,700,000 of market value is tier II, and any remaining market value is tier III. The 
120.35 	classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25 
120.36 	percent. Owners of real and personal property devoted to temporary and seasonal residential 
121.1 	occupancy for recreation purposes in which all or a portion of the property was devoted to 
121.2 	commercial purposes for not more than 250 days in the year preceding the year of assessment 
121.3 	desiring classification as class 1c, must submit a declaration to the assessor designating the 
121.4 	cabins or units occupied for 250 days or less in the year preceding the year of assessment 
121.5 	by January 15 of the assessment year. Those cabins or units and a proportionate share of 
121.6 	the land on which they are located must be designated as class 1c as otherwise provided. 
121.7 	The remainder of the cabins or units and a proportionate share of the land on which they 
121.8 	are located must be designated as class 3a commercial. The owner of property desiring 
121.9 	designation as class 1c property must provide guest registers or other records demonstrating 
121.10 	that the units for which class 1c designation is sought were not occupied for more than 250 
121.11 	days in the year preceding the assessment if so requested. The portion of a property operated 
121.12 	as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) 
121.13 	other nonresidential facility operated on a commercial basis not directly related to temporary 
121.14 	and seasonal residential occupancy for recreation purposes does not qualify for class 1c.
121.15 	(d) Class 1d property includes structures that meet all of the following criteria:
121.16 	(1) the structure is located on property that is classified as agricultural property under 
121.17 	section 273.13, subdivision 23;
121.18 	(2) the structure is occupied exclusively by seasonal farm workers during the time when 
121.19 	they work on that farm, and the occupants are not charged rent for the privilege of occupying 
121.20 	the property, provided that use of the structure for storage of farm equipment and produce 
121.21 	does not disqualify the property from classification under this paragraph;
121.22 	(3) the structure meets all applicable health and safety requirements for the appropriate 
121.23 	season; and
121.24 	(4) the structure is not salable as residential property because it does not comply with 
121.25 	local ordinances relating to location in relation to streets or roads.
121.26 	The market value of class 1d property has the same classification rates as class 1a property 
121.27 	under paragraph (a).

121.28 	EFFECTIVE DATE. This section is effective beginning with assessment year 2025 
121.29 	and thereafter.

121.30 	Sec. 4. Minnesota Statutes 2024, section 289A.12, subdivision 18, is amended to read:
121.31 		Subd. 18.Returns Return by qualified heirs. A qualified heir, as defined in section 
121.32 	291.03, subdivision 8, paragraph (c), must file two returns a return with the commissioner 
121.33 	attesting that no disposition or cessation as provided by section 291.03, subdivision 11, 
122.1 	paragraph (a), occurred. The first return must be filed no earlier than 24 months and no later 
122.2 	than 26 months after the decedent's death. The second return must be filed no earlier than 
122.3 	36 months and no later than 39 months after the decedent's death.

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

122.5 	Sec. 5. Minnesota Statutes 2024, section 297E.06, subdivision 4, is amended to read:
122.6 		Subd. 4.Annual audit, and certified inventory, and cash count. (a) An organization 
122.7 	licensed under chapter 349 with gross receipts from lawful gambling of more than $750,000 
122.8 	in any year must have an annual financial audit of its lawful gambling activities and funds 
122.9 	for that year. For the purposes of this subdivision, "gross receipts" does not include a licensed 
122.10 	organization's receipts from electronic pull-tabs regulated under chapter 349 provided the 
122.11 	electronic pull-tab manufacturer has completed an annual system and organization controls 
122.12 	audit, containing standards that must incorporate and be consistent with standards prescribed 
122.13 	by the American Institute of Certified Public Accountants.
122.14 	(b) The commissioner may require a financial audit of the lawful gambling activities 
122.15 	and funds of an organization licensed under chapter 349, with gross receipts less than 
122.16 	$750,000 annually, when an organization has:
122.17 	(1) failed to timely file required gambling tax returns;
122.18 	(2) failed to timely pay the gambling tax or regulatory fee;
122.19 	(3) filed fraudulent gambling tax returns;
122.20 	(4) failed to take corrective actions required by the commissioner; or
122.21 	(5) failed to otherwise comply with this chapter.
122.22 	(c) Audits under this subdivision must be performed by an independent accountant firm 
122.23 	licensed in accordance with chapter 326A.
122.24 	(d) An organization licensed under chapter 349 must perform an annual certified inventory 
122.25 	and cash countreport at the end of its fiscal year and submit the report to the commissioner 
122.26 	within 30 days after the end of its fiscal year. The report shall be on a form prescribed by 
122.27 	the commissioner.
122.28 	(e) The commissioner of revenue shall prescribe standards for the audits, and certified 
122.29 	inventory, and cash count reports report required under this subdivision. The standards may 
122.30 	vary based on the gross receipts of the organization. The standards must incorporate and 
122.31 	be consistent with standards prescribed by the American Institute of Certified Public 
123.1 	Accountants. A complete, true, and correct copy of the audits, certified inventory, and cash 
123.2 	count report must be filed as prescribed by the commissioner.

123.3 	EFFECTIVE DATE. This section is effective July 1, 2025.

123.4 	Sec. 6. Minnesota Statutes 2024, section 297I.20, subdivision 4, is amended to read:
123.5 		Subd. 4.Film production credit. (a) A taxpayer may claim a credit against the premiums 
123.6 	tax imposed under this chapter equal to the amount indicated on the credit certificate 
123.7 	statement issued to the company under section 116U.27. If the amount of the credit exceeds 
123.8 	the taxpayer's liability for tax under this chapter, the excess is a credit carryover to each of 
123.9 	the five succeeding taxable years. The entire amount of the excess unused credit for the 
123.10 	taxable year must be carried first to the earliest of the taxable years to which the credit may 
123.11 	be carried and then to each successive year to which the credit may be carried. This credit 
123.12 	does not affect the calculation of fire state aid under section 477B.03 and police state aid 
123.13 	under section 477C.03.
123.14 	(b) This subdivision expires January 1, 2025 2031, for taxable years beginning after and 
123.15 	premiums received after December 31, 2024 2030.

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

123.17 	Sec. 7. Laws 2023, chapter 1, section 28, is amended to read:
123.18 	Sec. 28. EXTENSION OF STATUTE OF LIMITATIONS.
 123.19 	(a) Notwithstanding any law to the contrary, a taxpayer whose tax liability changes as 
123.20 	a result of this act may file an amended return by December 31, 2023. The commissioner 
123.21 	may review and assess the return of a taxpayer covered by this provision for the later of:
123.22 	(1) the periods under Minnesota Statutes, sections 289A.38; 289.39 289A.39, subdivision 
123.23 	3; and 289A.40; or
123.24 	(2) one year from the time the amended return is filed as a result of a change in tax 
123.25 	liability under this section.
123.26 	(b) Interest on any additional liabilities as a result of any provision in this act accrue 
123.27 	beginning on January 1, 2024.

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

	ARTICLE 1	INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES........	Page.Ln 2.9	
	ARTICLE 2	PROPERTY TAXES........	Page.Ln 20.9	
	ARTICLE 3	SALES AND USE TAXES; EXCISE TAXES........	Page.Ln 38.20	
	ARTICLE 4	PROPERTY TAX AIDS........	Page.Ln 45.1	
	ARTICLE 5	TAX INCREMENT FINANCING........	Page.Ln 50.7	
	ARTICLE 6	LOCAL SALES AND USE TAXES........	Page.Ln 69.15	
	ARTICLE 7	PUBLIC FINANCE........	Page.Ln 70.20	
	ARTICLE 8	MISCELLANEOUS........	Page.Ln 78.1	
	ARTICLE 9	DEPARTMENT OF REVENUE; INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES........	Page.Ln 96.13	
	ARTICLE 10	DEPARTMENT OF REVENUE; SALES AND USE TAXES........	Page.Ln 104.27	
	ARTICLE 11	DEPARTMENT OF REVENUE; MISCELLANEOUS........	Page.Ln 114.7	

APPENDIX 

Repealed Minnesota Statutes: 25-05695 

13.4967 OTHER TAX DATA CODED ELSEWHERE.Subd. 2a.Assignment of refund. 
Data regarding assignment of individual income tax refunds is classified by section 290.0679, subdivision 9. 

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. 

275.065 PROPOSED PROPERTY TAXES; NOTICE.Subd. 3c.Notice of proposed taxes; property subject to chapter 276A. 
In the case of property subject to the areawide tax under section 276A.06, subdivision 7, for both the current year taxes and the proposed tax amounts, the net tax capacity portion of the taxes shown for each taxing jurisdiction must be based on the property's total net tax capacity multiplied by the jurisdiction's actual or proposed net tax capacity tax rate. In addition to the tax amounts shown for each jurisdiction, the statement must include a line showing the "fiscal disparities adjustment" equal to the total gross tax payable minus the sum of the tax amounts shown for the individual taxing jurisdictions. The fiscal disparities adjustment may be a negative number. If the fiscal disparities adjustment for either the current year taxes or the proposed tax amount is a negative number, the percentage change must not be shown. In all other respects the statement must fulfill the requirements of subdivision 3. 

276.04 NOTICE OF RATES; PROPERTY TAX STATEMENTS.Subd. 2a.Contents of tax statements; property subject to chapter 276A. 
In the case of property subject to the areawide tax under section 276A.06, subdivision 7, for both the current year taxes and the previous year tax amounts, the net tax capacity portion of the tax shown for each taxing jurisdiction must be based on the property's total net tax capacity multiplied by the jurisdiction's net tax capacity tax rate. In addition to the tax amounts shown for each jurisdiction, the statement must include a line showing the "fiscal disparities adjustment" equal to the total gross tax payable minus the sum of the tax amounts shown for the individual taxing jurisdictions for each year. The fiscal disparities adjustment may be a negative number. In all other respects the statement must fulfill the requirements of subdivision 2. 

290.0679 ASSIGNMENT OF REFUND.Subdivision 1.Definitions. 
(a) "Qualifying taxpayer" means a resident who has a child in kindergarten through grade 12 in the current tax year and who met the income requirements under section 290.0674, subdivision 2, for receiving the education credit in the tax year preceding the assignment of the taxpayer's refund. 

(b) "Education credit" means the credit allowed under section 290.0674. 

(c) "Refund" means an individual income tax refund. 

(d) "Financial institution" means a state or federally chartered bank, savings bank, savings association, or credit union. 

(e) "Qualifying organization" means a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code. 

(f) "Assignee" means a financial institution or qualifying organization that is entitled to receive payment of a refund assigned under this section. 

Subd. 2.Conditions for assignment. 
A qualifying taxpayer may assign all or part of an anticipated refund for the current and future taxable years to a financial institution or a qualifying organization. A financial institution or qualifying organization accepting assignment must pay the amount secured by the assignment to a third-party vendor. The commissioner of education shall, upon request from a third-party vendor, certify that the vendor's products and services qualify for the education credit. A denial of a certification may be appealed to the commissioner pursuant to this subdivision and notwithstanding chapter 14. A financial institution or qualifying organization that accepts assignments under this section must verify as part of the assignment documentation that the product or service to be provided by the third-party vendor has been certified by the commissioner of education as qualifying for the education credit. The amount assigned for the current and future taxable years may not exceed the maximum allowable education credit for the current taxable year. Both the taxpayer and spouse must consent to the assignment of a refund from a joint return. 

Subd. 3.Consent for disclosure. 
When the taxpayer applies to the financial institution or the qualifying organization for a loan to be secured by the assignment under subdivision 2, the taxpayer must sign a written consent on a form prescribed by the commissioner. The consent must authorize the commissioner to disclose to the financial institution or qualifying organization the total amount of state taxes owed or revenue recapture claims filed under chapter 270A against the taxpayer, and the total amount of outstanding assignments made by the taxpayer under this section. For a refund from a joint return, the consent must also authorize the disclosure of taxes, revenue recapture claims, and assignments relating to the taxpayer's spouse, and must be signed by the spouse. The financial institution or qualifying organization may request that the taxpayer provide a copy of the taxpayer's previous year's income tax return, if any, and may assist the taxpayer in requesting a copy of the previous year's return from the commissioner. 

Subd. 4.Consumer disclosure. 
(a) A third-party vendor that receives payment of the amount secured by an assignment must comply with the requirements of this subdivision. 

(b) The third-party vendor must disclose to the taxpayer, in plain language: 

(1) the cost of each product or service for which the third-party vendor separately charges the taxpayer; 

(2) any fees charged to the taxpayer for tax preparation services; and 

(3) for qualifying low-income taxpayers, information on the availability of free tax preparation services. 

(c) The third-party vendor must provide to the taxpayer executed copies of any documents signed by the taxpayer. 

Subd. 5.Filing of assignment. 
The commissioner shall prescribe the form of and manner for filing an assignment of a refund under this section. 

Subd. 6.Effect of assignment. 
The taxpayer may not revoke an assignment after it has been filed. The assignee must notify the commissioner if the loan secured by the assignment has been paid in full, in which case the assignment is canceled. An assignment is in effect until the amount assigned is refunded in full to the assignee, or until the assignee cancels the assignment. 

Subd. 7.Payment of refund. 
When a refund assigned under this section is issued by the commissioner, the proceeds of the refund, as defined in subdivision 1, paragraph (c), must be distributed in the following order: 

(1) to satisfy any delinquent tax obligations of the taxpayer which are owed to the commissioner; 

(2) to claimant agencies to satisfy any revenue recapture claims filed against the taxpayer, in the order of priority of the claims set forth in section 270A.10; 

(3) to assignees to satisfy assignments under this section, based on the order in time in which the commissioner received the assignments; and 

(4) to the taxpayer. 

Subd. 8.Legal action. 
If there is a dispute between the taxpayer and the assignee after the commissioner has remitted the taxpayer's refund to the assignee, the taxpayer's only remedy is to bring an action against the assignee in court to recover the refund. The action must be brought within two years after the commissioner remits the refund to the assignee. The commissioner may not be a party to the proceeding. 

Subd. 9.Assignments private data. 
Information regarding assignments under this section is classified as private data on individuals. 

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.32 LOCAL GOVERNMENT CANNABIS AID.Subdivision 1.Definitions. 
For purposes of this section, the following terms have the meanings given: 

(1) "city" means a statutory or home rule charter city; and 

(2) "director" means the director of the Office of Cannabis Management under section 342.02. 

Subd. 2.Certification to commissioner of revenue. 
(a) By July 15, 2024, and annually thereafter, the commissioner of management and budget must certify to the commissioner of revenue the balance of the local government cannabis aid account in the special revenue fund as of the immediately preceding June 30. 

(b) By June 1, 2024, and annually thereafter, the director must certify to the commissioner of revenue the number of cannabis businesses, as defined under section 342.01, subdivision 14, licensed under chapter 342 as of the previous January 1, disaggregated by county and city. 

Subd. 3.Aid to counties. 
(a) Beginning for aid payable in 2024, the amount available for aid to counties under this subdivision equals 50 percent of the amount certified in that year to the commissioner under subdivision 2, paragraph (a). 

(b) Twenty percent of the amount under paragraph (a) must be distributed equally among all counties. 

(c) Eighty percent of the amount under paragraph (a) must be distributed proportionally to each county according to the number of cannabis businesses located in the county as compared to the number of cannabis businesses in all counties as of the most recent certification under subdivision 2, paragraph (b). 

Subd. 4.Aid to cities. 
(a) Beginning for aid payable in 2024, the amount available for aid to cities under this subdivision equals 50 percent of the amount certified in that year to the commissioner under subdivision 2, paragraph (a). 

(b) The amount under paragraph (a) must be distributed proportionally to each city according to the number of cannabis businesses located in the city as compared to the number of cannabis businesses in all cities as of the most recent certification under subdivision 2, paragraph (b). 

Subd. 5.Payment. 
The commissioner of revenue must compute the amount of aid payable to each county and city under this section. On or before September 1 of each year, the commissioner must certify the amount to be paid to each county and city in that year. The commissioner must pay the full amount of the aid on December 26 annually. 

Subd. 6.Appropriation. 
Beginning in fiscal year 2025 and annually thereafter, the amount in the local government cannabis aid account in the special revenue fund is annually appropriated to the commissioner of revenue to make the aid payments required under this section.