SF 5052

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 05/05/2026 10:50 a.m.

A bill for an act
relating to taxation; modifying individual income and corporate franchise taxes,
property taxes, sales and use taxes, excise taxes, local government aids, tax
increment financing provisions, local sales and use taxes, mining and mineral
taxes, public finance provisions, and other miscellaneous taxes and tax-related
provisions; providing for certain federal conformity; modifying and providing for
income tax credits and subtractions; modifying and providing for property tax
exemptions and classifications; providing for certain sales tax exemptions;
establishing a social media tax; authorizing and modifying local sales taxes;
establishing seasonal tax base replacement aid and federal enforcement
reimbursement aid; modifying and providing for various local government aids;
establishing and modifying various programs; modifying and clarifying certain
definitions; establishing a Hennepin County health care tax; establishing a tax on
amounts acquired by fraud; modifying the allocation of production tax proceeds;
making related clarifying and technical changes; requiring and modifying reports;
modifying and canceling appropriations; appropriating and transferring money;
amending Minnesota Statutes 2024, sections 16A.726; 41A.30, subdivisions 1, 2,
7; 116U.27, subdivisions 1, 4, 5; 123B.53, subdivision 1; 123B.535, subdivision
1; 126C.17, by adding a subdivision; 168E.09, subdivision 2, by adding a
subdivision; 270B.14, subdivision 3, by adding a subdivision; 270B.15; 270C.055,
by adding a subdivision; 270C.07; 270C.08; 270C.085; 270C.56, subdivision 1;
272.01, subdivision 2; 272.02, subdivision 101, by adding subdivisions; 273.032;
273.111, subdivision 9; 273.124, subdivision 14; 273.13, subdivision 34; 289A.02,
subdivision 7; 289A.08, subdivision 7; 289A.40, subdivision 1; 289A.60,
subdivision 6; 290.01, subdivisions 19, 29, 31; 290.0132, subdivision 11; 290.0137;
290.0681, subdivisions 3, 4; 290.0683, subdivisions 1, 3; 290.0921, subdivision
3; 290.0922, subdivisions 2, 3; 290.62; 290.92, by adding a subdivision; 290A.03,
subdivision 15; 291.005, subdivision 1; 295.52, subdivision 5; 295.75, subdivision
11, by adding a subdivision; 295.81, by adding a subdivision; 297A.993,
subdivision 4; 297A.994, subdivision 4; 297B.03; 297H.01, subdivisions 2, 8;
298.225; 298.227; 298.28, subdivisions 2, 3, 4, 7a, 8, 9a, 9b, 11, by adding a
subdivision; 298.282, subdivision 1; 383A.80, subdivision 4; 383B.80, subdivision
4; 428B.02, subdivision 4; 462A.40, subdivision 3; 469.060, subdivision 3; 469.171,
subdivisions 1, 4, 6a; 469.1731, subdivision 1; 469.176, subdivision 2; 473.756,
by adding a subdivision; 473.757, subdivisions 1, 2, 3, 4, 7, 8, 9, 10, 11, by adding
subdivisions; 473.759, subdivision 3; 477A.011, subdivision 34, by adding a
subdivision; 477A.23, subdivision 6; 477A.35, subdivisions 4, 6; 477A.36,
subdivisions 4, 5a, 6; Minnesota Statutes 2025 Supplement, sections 41A.30,
subdivision 5; 41B.0391, subdivisions 2, 4, 6a; 116U.27, subdivision 2; 126C.13,
subdivision 4; 268.19, subdivision 1; 273.13, subdivisions 22, 23; 295.81,
subdivision 10; 297A.75, subdivisions 1, 2, 3; 297A.94; 299C.061, subdivision 6;
299C.76, subdivision 1; 477A.35, subdivision 5; 477A.36, subdivision 5; Laws
1986, chapter 400, section 44, as amended; Laws 1993, chapter 375, article 9,
section 46, subdivisions 2, as amended, 2b, as added, 3, as amended, 5, as amended;
Laws 1996, chapter 471, article 2, section 30, subdivision 5, as amended; Laws
1998, chapter 389, article 8, sections 36; 37, subdivision 2, as amended; Laws
2005, First Special Session chapter 3, article 5, section 38, as amended; Laws
2006, chapter 259, article 3, sections 9, subdivision 4, by adding subdivisions; 10,
subdivisions 3, as amended, 4, as amended, 5, as amended; Laws 2019, First Special
Session chapter 6, article 6, sections 17, subdivisions 1, 3, 4, by adding a
subdivision; 28, subdivisions 3, 4, by adding a subdivision; Laws 2021, First
Special Session chapter 14, article 8, section 5, subdivisions 2, as amended, 3, as
amended; article 9, sections 9; 11; Laws 2023, chapter 64, article 5, section 25,
subdivision 1; Laws 2025, First Special Session chapter 13, article 5, section 11,
subdivision 3; proposing coding for new law in Minnesota Statutes, chapters 116J;
270C; 290; 295; repealing Minnesota Statutes 2024, sections 272.02, subdivisions
31, 64; 272.029, subdivision 7; 273.11, subdivisions 19, 20; 273.1315, subdivision
1; 273.1385; 273.25; 273.65; 273.66; 273.67; 274.07; 289A.12, subdivision 15;
290.06, subdivision 29; 297A.68, subdivision 37; 428B.02, subdivision 7; 469.310;
469.311; 469.312; 469.313; 469.314; 469.315; 469.316; 469.317; 469.318;
469.3181; 469.319; 469.3191; 469.3192; 469.3193; 469.320; 469.3201; 477A.085;
477A.18; 477A.30, subdivision 8.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

FEDERAL UPDATE

Section 1.

Minnesota Statutes 2024, section 289A.02, subdivision 7, is amended to read:

Subd. 7.

Internal Revenue Code.

Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through May 1,
2023 new text begin , except the sections of federal law in section 290.0112 shall also apply new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, except
the changes incorporated by federal changes are effective retroactively at the same time as
the changes were effective for federal purposes.
new text end

Sec. 2.

Minnesota Statutes 2024, section 290.01, subdivision 19, is amended to read:

Subd. 19.

Net income.

(a) For a trust or estate taxable under section 290.03, and a
corporation taxable under section 290.02, the term "net income" means the federal taxable
income, as defined in section 63 of the Internal Revenue Code of 1986, as amended through
the date named in this subdivision, incorporating the federal effective dates of changes to
the Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in sections 290.0131 to 290.0136.

(b) For an individual, the term "net income" means federal adjusted gross income with
the modifications provided in sections 290.0131, 290.0132, and 290.0135 to 290.0137.

(c) In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:

(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;

(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue
Code must be applied by allowing a deduction for capital gain dividends and exempt-interest
dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code;
and

(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.

(d) The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.

(e) The net income of a designated settlement fund as defined in section 468B(d) of the
Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal
Revenue Code.

(f) The Internal Revenue Code of 1986, as amended through May 1, 2023, applies for
taxable years beginning after December 31, 1996 new text begin , except the sections of federal law in
section 290.0112 shall also apply new text end .

(g) Except as otherwise provided, references to the Internal Revenue Code in this
subdivision and sections 290.0131 to 290.0136 mean the code in effect for purposes of
determining net income for the applicable year.

(h) In the case of a partnership electing to file a composite return under section 289A.08,
subdivision 7, "net income" means the partner's share of federal adjusted gross income from
the partnership modified by the additions provided in section 290.0131, subdivisions 8 to
10, 16, and 17, and the subtractions provided in: (1) section 290.0132, subdivisions 9, 27,
and 28, to the extent the amount is assignable or allocable to Minnesota under section 290.17;
and (2) section 290.0132, subdivision 14. The subtraction allowed under section 290.0132,
subdivision 9, is only allowed on the composite tax computation to the extent the electing
partner would have been allowed the subtraction.

(i) In the case of a qualifying entity electing to pay the pass-through entity tax under
section 289A.08, subdivision 7a, "net income" means the qualifying owner's share of federal
adjusted gross income from the qualifying entity modified by the additions provided in
section 290.0131, subdivisions 5, 8 to 10, 16, and 17, and the subtractions provided in: (1)
section 290.0132, subdivisions 3, 9, 27, and 28, to the extent the amount is assignable or
allocable to Minnesota under section 290.17; and (2) section 290.0132, subdivision 14. The
subtraction allowed under section 290.0132, subdivision 9, is only allowed on the
pass-through entity tax computation to the extent the qualifying owners would have been
allowed the subtraction. The income of both a resident and nonresident qualifying owner
is allocated and assigned to this state as provided for nonresident partners and shareholders
under sections 290.17, 290.191, and 290.20.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, except
the changes incorporated by federal changes are effective retroactively at the same time as
the changes were effective for federal purposes.
new text end

Sec. 3.

Minnesota Statutes 2024, section 290.01, subdivision 31, is amended to read:

Subd. 31.

Internal Revenue Code.

Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through May 1,
2023 new text begin , except the sections of federal law in section 290.0112 shall also apply new text end . Internal
Revenue Code also includes any uncodified provision in federal law that relates to provisions
of the Internal Revenue Code that are incorporated into Minnesota law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, except
the changes incorporated by federal changes are effective retroactively at the same time as
the changes were effective for federal purposes.
new text end

Sec. 4.

new text begin [290.0112] CONFORMITY TO CERTAIN FEDERAL TAX CHANGES.
new text end

new text begin Subdivision 1. new text end

new text begin Adopting Internal Revenue Code changes. new text end

new text begin For the purposes of this
chapter, "Internal Revenue Code," as defined in section 290.01, subdivisions 19 and 31,
includes the sections of federal law specified in this section as enacted or amended through
March 1, 2026.
new text end

new text begin Subd. 2. new text end

new text begin One Big Beautiful Bill Act, 2025. new text end

new text begin "Internal Revenue Code" includes the
following provisions in Public Law 119-21:
new text end

new text begin (1) section 70301;
new text end

new text begin (2) section 70307;
new text end

new text begin (3) section 70404;
new text end

new text begin (4) section 70405;
new text end

new text begin (5) section 70434; and
new text end

new text begin (6) section 70603.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, except
the changes incorporated by federal changes are effective retroactively at the same time as
the changes were effective for federal purposes.
new text end

Sec. 5.

Minnesota Statutes 2024, section 290A.03, subdivision 15, is amended to read:

Subd. 15.

Internal Revenue Code.

"Internal Revenue Code" means the Internal Revenue
Code of 1986, as amended through May 1, 2023 new text begin , except the sections of federal law in section
290.0112 shall also apply new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, except
the changes incorporated by federal changes are effective retroactively at the same time as
the changes were effective for federal purposes.
new text end

Sec. 6.

Minnesota Statutes 2024, section 291.005, subdivision 1, is amended to read:

Subdivision 1.

Scope.

Unless the context otherwise clearly requires, the following terms
used in this chapter shall have the following meanings:

(1) "Commissioner" means the commissioner of revenue or any person to whom the
commissioner has delegated functions under this chapter.

(2) "Federal gross estate" means the gross estate of a decedent as required to be valued
and otherwise determined for federal estate tax purposes under the Internal Revenue Code,
increased by the value of any property in which the decedent had a qualifying income interest
for life and for which an election was made under section 291.03, subdivision 1d, for
Minnesota estate tax purposes, but was not made for federal estate tax purposes.

(3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986,
as amended through May 1, 2023 new text begin , except the sections of federal law in section 290.0112
shall also apply new text end .

(4) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
excluding therefrom any property included in the estate which has its situs outside Minnesota,
and (b) including any property omitted from the federal gross estate which is includable in
the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.

(5) "Nonresident decedent" means an individual whose domicile at the time of death
was not in Minnesota.

(6) "Personal representative" means the executor, administrator or other person appointed
by the court to administer and dispose of the property of the decedent. If there is no executor,
administrator or other person appointed, qualified, and acting within this state, then any
person in actual or constructive possession of any property having a situs in this state which
is included in the federal gross estate of the decedent shall be deemed to be a personal
representative to the extent of the property and the Minnesota estate tax due with respect
to the property.

(7) "Resident decedent" means an individual whose domicile at the time of death was
in Minnesota. The provisions of section 290.01, subdivision 7, paragraphs (c) and (d), apply
to determinations of domicile under this chapter.

(8) "Situs of property" means, with respect to:

(i) real property, the state or country in which it is located;

(ii) tangible personal property, the state or country in which it was normally kept or
located at the time of the decedent's death or for a gift of tangible personal property within
three years of death, the state or country in which it was normally kept or located when the
gift was executed;

(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue
Code, owned by a nonresident decedent and that is normally kept or located in this state
because it is on loan to an organization, qualifying as exempt from taxation under section
501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is
deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and

(iv) intangible personal property, the state or country in which the decedent was domiciled
at death or for a gift of intangible personal property within three years of death, the state or
country in which the decedent was domiciled when the gift was executed.

For a nonresident decedent with an ownership interest in a pass-through entity with
assets that include real or tangible personal property, situs of the real or tangible personal
property, including qualified works of art, is determined as if the pass-through entity does
not exist and the real or tangible personal property is personally owned by the decedent. If
the pass-through entity is owned by a person or persons in addition to the decedent, ownership
of the property is attributed to the decedent in proportion to the decedent's capital ownership
share of the pass-through entity.

(9) "Pass-through entity" includes the following:

(i) an entity electing S corporation status under section 1362 of the Internal Revenue
Code;

(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;

(iii) a single-member limited liability company or similar entity, regardless of whether
it is taxed as an association or is disregarded for federal income tax purposes under Code
of Federal Regulations, title 26, section 301.7701-3; or

(iv) a trust to the extent the property is includable in the decedent's federal gross estate;
but excludes

(v) an entity whose ownership interest securities are traded on an exchange regulated
by the Securities and Exchange Commission as a national securities exchange under section
6 of the Securities Exchange Act, United States Code, title 15, section 78f.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, except
the changes incorporated by federal changes are effective retroactively at the same time as
the changes were effective for federal purposes.
new text end

ARTICLE 2

INCOME AND CORPORATE FRANCHISE TAXES

Section 1.

Minnesota Statutes 2024, section 41A.30, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given.

(b) "Aircraft" has the meaning given in section 296A.01, subdivision 3.

(c) "Aviation gasoline" has the meaning given in section 296A.01, subdivision 7.

(d) "Commissioner" means the commissioner of agriculture.

(e) "Jet fuel" has the meaning given in section 296A.01, subdivision 8.

(f) "Qualifying taxpayer" means a taxpayer, as defined in section 290.01, subdivision
6, that is engaged in the business of:

(1) producing sustainable aviation fuel; or

(2) blending sustainable aviation fuel with aviation gasoline or jet fuel.

(g) "Sustainable aviation fuel" means liquid fuel that:

(1) is derived from new text begin :
new text end

new text begin (i) new text end biomass, as defined in section 41A.15, subdivision 2e new text begin , that is produced in the United
States, provided that any agricultural feedstocks are from planted crops and crop residue
harvested from agricultural land cleared or cultivated any time prior to December 19, 2007,
that is either actively managed or fallow;
new text end

new text begin (ii) gaseous carbon oxides; or
new text end

new text begin (iii) hydrogen that has a carbon intensity not greater than four kilograms of carbon
dioxide equivalent per kilogram of hydrogen produced new text end ;

(2) is not derived from palm fatty acid distillates; and

(3) achieves at least a 50 percent life cycle greenhouse gas emissions reduction in
comparison with petroleum-based aviation gasoline, aviation turbine fuel, and jet fuel as
determined by a test that shows:

(i) that the fuel production pathway achieves at least a 50 percent life cycle greenhouse
gas emissions reduction in comparison with petroleum-based aviation gasoline, aviation
turbine fuel, and jet fuel utilizing the most recent version of Argonne National Laboratory's
Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies (GREET) model
that accounts for reduced emissions throughout the fuel production process; or

(ii) that the fuel production pathway achieves at least a 50 percent reduction of the
aggregate attributional core life cycle emissions and the positive induced land use change
values under the life cycle methodology for sustainable aviation fuels adopted by the
International Civil Aviation Organization with the agreement of the United States.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2024, for sustainable aviation fuel sold after June 30, 2025.
new text end

Sec. 2.

Minnesota Statutes 2024, section 41A.30, subdivision 2, is amended to read:

Subd. 2.

Tax credit establishment.

(a) A qualifying taxpayer may claim a tax credit
against the tax due under chapter 290 equal to $1.50 for each gallon of sustainable aviation
fuel that is:

(1) produced in Minnesota or blended with aviation or gasoline or jet fuel in Minnesota new text begin ,
provided that carbon oxides sequestered as part of the production process are not used as a
tertiary injectant in a qualified enhanced oil recovery project new text end ; and

(2) sold in Minnesota to a purchaser who certifies that the sustainable aviation fuel is
for use as fuel in an aircraft departing from an airport in Minnesota.

(b) The credit may be claimed only after approval and certification by the commissioner
and is limited to the amount stated on the credit certificate issued under subdivision 3. A
qualifying taxpayer must apply to the commissioner for certification and allocation of a
credit in a form and manner prescribed by the commissioner.

(c) A qualifying taxpayer may claim a credit for blending or producing sustainable
aviation fuel, but not both. If sustainable aviation fuel is blended with aviation gasoline or
jet fuel, the credit is allowed only for the portion of sustainable aviation fuel that is included
in the blended fuel.

(d) If the amount of credit that the taxpayer is eligible to receive under this section
exceeds the liability for tax under chapter 290, the commissioner of revenue must refund
the excess to the taxpayer.

new text begin (e) Subject to the commissioner's certification, a qualifying taxpayer may claim a
supplemental tax credit against the tax due under chapter 290 equal to the rate of $0.02 per
gallon for each additional whole percentage carbon intensity reduction beyond 50 percent,
but capped at $2.00 per gallon.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2024, for sustainable aviation fuel sold after June 30, 2025.
new text end

Sec. 3.

Minnesota Statutes 2025 Supplement, section 41A.30, subdivision 5, is amended
to read:

Subd. 5.

Allocation limits.

(a) Subject to additional rollover allocation as provided in
paragraph (b), for tax credits allowed under subdivision 2, the commissioner must not issue
credit certificates for more than deleted text begin $11,600,000 deleted text end new text begin $36,900,000 new text end in total, allocated as follows:

(1) $7,400,000 for fiscal year 2025; deleted text begin and
deleted text end

(2) $2,100,000 for deleted text begin each of deleted text end fiscal deleted text begin years deleted text end new text begin year new text end 2026 deleted text begin and 2027 deleted text end new text begin ;
new text end

new text begin (3) $7,400,000 for fiscal year 2027;
new text end

new text begin (4) $5,300,000 for fiscal year 2028; and
new text end

new text begin (5) $2,100,000 for each fiscal year from 2029 through 2035 new text end .

(b) Any portion of a fiscal year's credits that is not allocated by the commissioner does
not cancel and may be carried forward to subsequent fiscal years until deleted text begin all credits have been
allocated deleted text end new text begin the entire allocation has been made new text end , except that the commissioner must not issue
any credit certificates for fiscal years beginning after June 30, deleted text begin 2030 deleted text end new text begin 2035 new text end , and any unallocated
amounts cancel on that date.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2025.
new text end

Sec. 4.

Minnesota Statutes 2024, section 41A.30, subdivision 7, is amended to read:

Subd. 7.

Expiration.

This section expires for taxable years beginning after December
31, deleted text begin 2030 deleted text end new text begin 2035 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2025 Supplement, section 41B.0391, subdivision 2, is amended
to read:

Subd. 2.

Tax credit for owners of agricultural assets.

(a) An owner of agricultural
assets may take a credit against the tax due under chapter 290 for the sale or rental of
agricultural assets to a beginning farmer deleted text begin in the amount allocated by the authority under
subdivision 4 deleted text end . An owner of agricultural assets is eligible for allocation of a credit equal to:

(1) eight percent of the lesser of the sale price or the fair market value of the agricultural
asset, up to a maximum of $50,000;

(2) ten percent of the gross rental income in each of the first, second, and third years of
a rental agreement, up to a maximum of $7,000 per year; or

(3) 15 percent of the cash equivalent of the gross rental income in each of the first,
second, and third years of a share rent agreement, up to a maximum of $10,000 per year.

(b) A qualifying rental agreement includes cash rent of agricultural assets or a share rent
agreement. The agricultural asset must be rented at prevailing community rates as determined
by the authority.

(c) The credit may be claimed only after approval and certification by the authority, and
is limited to the amount stated on the certificate issued under subdivision 4. An owner of
agricultural assets must apply to the authority for certification and allocation of a credit, in
a form and manner prescribed by the authority.

(d) An owner of agricultural assets or beginning farmer may terminate a rental agreement,
including a share rent agreement, for reasonable cause upon approval of the authority. If a
rental agreement is terminated without the fault of the owner of agricultural assets, the tax
credits shall not be retroactively disallowed. In determining reasonable cause, the authority
must look at which party was at fault in the termination of the agreement. If the authority
determines the owner of agricultural assets did not have reasonable cause, the owner of
agricultural assets must repay all credits received as a result of the rental agreement to the
commissioner of revenue. The repayment is additional income tax for the taxable year in
which the authority makes its decision or when a final adjudication under subdivision 5,
paragraph (a), is made, whichever is later.

(e) The credit is limited to the liability for tax as computed under chapter 290 for the
taxable year. If the amount of the credit determined under this section for any taxable year
exceeds this limitation, the excess is a beginning farmer incentive credit carryover according
to section 290.06, subdivision 37.

(f) For purposes of the credit for the sale of agricultural land only, the family member
definitional exclusions in subdivision 1, paragraph (c), clauses (4) and (5), do not apply.
For a sale to a family member to qualify for the credit, the sales price of the agricultural
land must equal or exceed the assessed value of the land as of the date of the sale. For
purposes of this paragraph, "sale to a family member" means a sale to a beginning farmer
in which the beginning farmer or the beginning farmer's spouse is a family member of:

(1) the owner of the agricultural land; or

(2) a partner, member, shareholder, or trustee of the owner of the agricultural land.

(g) For a sale to a limited land access farmer, the credit rate under paragraph (a), clause
(1), is 12 percent rather than eight percent.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2025.
new text end

Sec. 6.

Minnesota Statutes 2025 Supplement, section 41B.0391, subdivision 4, is amended
to read:

Subd. 4.

Authority duties.

(a) The authority shall:

(1) approve and certify or recertify beginning farmers as eligible for the program under
this section;

(2) approve and certify or recertify owners of agricultural assets as eligible for the tax
credit under subdivision 2 deleted text begin subject to the allocation limits in paragraph (c) deleted text end ;

(3) provide necessary and reasonable assistance and support to beginning farmers for
qualification and participation in financial management programs approved by the authority;

(4) refer beginning farmers to agencies and organizations that may provide additional
pertinent information and assistance; and

(5) notwithstanding section 41B.211, the Rural Finance Authority must share information
with the commissioner of revenue to the extent necessary to administer provisions under
this subdivision and section 290.06, subdivisions 37 and 38. The Rural Finance Authority
must annually notify the commissioner of revenue of approval and certification or
recertification of beginning farmers and owners of agricultural assets under this section.
For credits under subdivision 2, the notification must include the amount of credit approved
by the authority and stated on the credit certificate.

(b) The certification of a beginning farmer or an owner of agricultural assets under this
section is valid for the year of the certification and the two following years, after which
time the beginning farmer or owner of agricultural assets must apply to the authority for
recertification.

deleted text begin (c) For credits for owners of agricultural assets allowed under subdivision 2, the authority
must not allocate more than $6,500,000 for taxable years beginning after December 31,
2022, and before January 1, 2024, and $4,000,000 for taxable years beginning after December
31, 2023. The authority must allocate credits on a first-come, first-served basis beginning
on January 1 of each year, except that recertifications for the second and third years of
credits under subdivision 2, paragraph (a), clauses (1) and (2), have first priority. Any
amount authorized but not allocated for taxable years ending before January 1, 2023, is
canceled and is not allocated for future taxable years. For taxable years beginning after
December 31, 2022, any amount authorized but not allocated in any taxable year does not
cancel and is added to the allocation for the next taxable year. For each taxable year, 50
percent of newly allocated credits must be allocated to limited land access farmers. Any
portion of a taxable year's newly allocated credits that is reserved for limited land access
farmers that is not allocated by September 30 of the taxable year is available for allocation
to other credit allocations beginning on October 1.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2025.
new text end

Sec. 7.

Minnesota Statutes 2025 Supplement, section 41B.0391, subdivision 6a, is amended
to read:

Subd. 6a.

Report to legislature.

(a) No later than deleted text begin February deleted text end new text begin March new text end 1 each year the Rural
Finance Authority, in consultation with the commissioner of revenue, must provide a report
to the chairs and ranking minority members of the legislative committees having jurisdiction
over agriculture, economic development, rural development, and taxes, in compliance with
sections 3.195 and 3.197, on the beginning farmer tax credits under this section.

(b) The report must include background information on beginning farmers in Minnesota
and any other information the commissioner and authority find relevant to evaluating the
effect of the credits on increasing opportunities for and the number of beginning farmers.

(c) For credits issued under subdivision 2, paragraph (a), clauses (1) to (3), the report
must include:

(1) the number and amount of credits issued under each clause;

(2) the geographic distribution of credits issued under each clause;

(3) the type of agricultural assets for which credits were issued under clause (1);

(4) the number and geographic distribution of beginning farmers whose purchase or
rental of assets resulted in credits for the seller or owner of the asset;

(5) the number and amount of credits disallowed under subdivision 2, paragraph (d); new text begin
and
new text end

(6) data on the number of beginning farmers by geographic region, including:

(i) the number of beginning farmers by race and ethnicity, as those terms are applied in
the 2020 United States Census; and

(ii) to the extent available, the number of beginning farmers who are limited land access
farmers deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (7) the number and amount of credit applications that exceeded the allocation available
in each year.
deleted text end

(d) For credits issued under subdivision 3, the report must include:

(1) the number and amount of credits issued;

(2) the geographic distribution of credits;

(3) a listing and description of each approved financial management program for which
credits were issued; and

(4) a description of the approval procedure for financial management programs not on
the list maintained by the authority, as provided in subdivision 3, paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for reports due for credits issued for
taxable years beginning after December 31, 2025.
new text end

Sec. 8.

Minnesota Statutes 2024, section 116U.27, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given.

(b) "Allocation deleted text begin certificate deleted text end new text begin letter new text end " means a deleted text begin certificate deleted text end new text begin letter new text end issued by the commissioner
to a taxpayer upon receipt and approval of an initial application for a credit for a project
that has not yet been completed.

(c) "Application" means the application for a credit under subdivision 4.

new text begin (d) "Below-the-line crew position" means a position that handles the technical execution
of film production, including camera operators, sound technicians, grips, electricians, and
other specialized crafts positions.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end "Credit certificate" means a certificate issued by the commissioner upon receipt
and approval of the cost verification report in subdivision 4, paragraph (e).

deleted text begin (e) deleted text end new text begin (f) new text end "Director" means the director of Explore Minnesota.

deleted text begin (f) deleted text end new text begin (g) new text end "Eligible production costs" means eligible production costs as defined in section
116U.26, paragraph (b), clause (1), incurred in Minnesota that are directly attributable to
the production of a film project in Minnesota.

deleted text begin (g) deleted text end new text begin (h) new text end "Film" has the meaning given in section 116U.26, paragraph (b), clause (2).

new text begin (i) "Key creative role" means a project director, producer, showrunner, editor, actor,
writer, director of photography, production designer, cinematographer, or equivalent project
role.
new text end

new text begin (j) "Minnesota script or screenplay production" means a script or screenplay created by
a Minnesota resident that is produced into a film.
new text end

deleted text begin (h) deleted text end new text begin (k) new text end "Project" means a film new text begin , including television programming new text end :

(1) that includes the promotion of Minnesota;

(2) for which the taxpayer has expended at least deleted text begin $1,000,000 deleted text end new text begin $400,000 new text end in any consecutive
12-month period beginning after expenditures are first paid in Minnesota for eligible
production costs; and

(3) to the extent practicable, that employs Minnesota residents.

deleted text begin Television commercials are exempt from the requirement under clause (1).
deleted text end

new text begin Project also includes a television commercial or Minnesota script or screenplay production
for which the taxpayer has expended at least $150,000 in any consecutive 12-month period
beginning after expenditures are first paid in Minnesota for eligible production costs and,
to the extent practicable, that employs Minnesota residents.
new text end

deleted text begin (i) deleted text end new text begin (l) new text end "Promotion of Minnesota" or "promotion" means visible display of a static or
animated logo, approved by the director, that promotes Minnesota within its presentation
in the end credits for the life of the project.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2026.
new text end

Sec. 9.

Minnesota Statutes 2025 Supplement, section 116U.27, subdivision 2, is amended
to read:

Subd. 2.

Credit allowed.

new text begin (a) new text end A taxpayer is eligible for a credit up to deleted text begin 25 deleted text end new text begin 40 new text end percent of
eligible production costs paid in any consecutive 12-month period as described in subdivision
1 deleted text begin , paragraph (h) deleted text end . A taxpayer may only claim a credit if the taxpayer was issued a credit
certificate under subdivision 4.

new text begin (b) A taxpayer is eligible for an additional five percent credit totaling up to 45 percent
if the project meets the requirements of paragraph (a), and:
new text end

new text begin (1) employs a Minnesota resident in a key creative role;
new text end

new text begin (2) films outside of the seven-county metropolitan area, as defined in section 473.121,
subdivision 2; or
new text end

new text begin (3) hires a majority of Minnesota residents in below-the-line crew positions.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2026.
new text end

Sec. 10.

Minnesota Statutes 2024, section 116U.27, subdivision 4, is amended to read:

Subd. 4.

Applications; allocations.

(a) To qualify for a credit under this section, a
taxpayer must submit to the director an application for a credit in the form prescribed by
the director, in consultation with the commissioner of revenue.

(b) Upon approving an application for a credit that meets the requirements of this section,
the director shall issue allocation deleted text begin certificates deleted text end new text begin letters new text end that:

(1) verify eligibility for the credit;

(2) state the amount of credit anticipated for the eligible project, with the credit amount
up to deleted text begin 25 deleted text end new text begin 45 new text end percent of eligible project costs; and

(3) state the taxable year in which the credit is allocated.

(c) The director must not issue allocation deleted text begin certificates deleted text end new text begin letters new text end for more than $24,950,000
of credits each year. If the entire amount is not allocated in that taxable year, any remaining
amount is available for allocation for the four following taxable years until the entire
allocation has been made. The director must not award any credits for taxable years beginning
after December 31, 2030, and any unallocated amounts cancel on that date.

(d) The director must allocate credits on a first-come, first-served basis.

(e) Upon completion of a project, the taxpayer shall submit to the director a report
prepared by an independent certified public accountant licensed in the state of Minnesota
to verify the amount of eligible production costs related to the project. The report must be
prepared in accordance with generally accepted accounting principles. Upon receipt and
approval of the cost verification report and other documents required by the director, the
director shall determine the final amount of eligible production costs and issue a credit
certificate to the taxpayer. The credit may not exceed the anticipated credit amount on the
allocation deleted text begin certificate deleted text end new text begin letter new text end . If the credit is less than the anticipated amount on the allocation
credit, the difference is returned to the amount available for allocation under paragraph (c).
To claim the credit under section 290.06, subdivision 39, or 297I.20, subdivision 4, a taxpayer
must include a copy of the credit certificate as part of the taxpayer's return.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2026.
new text end

Sec. 11.

Minnesota Statutes 2024, section 116U.27, subdivision 5, is amended to read:

Subd. 5.

Report required.

By deleted text begin January 15, 2025 deleted text end new text begin March 1, 2027, and each year thereafter new text end ,
the commissioner of revenue, in consultation with the director, must provide a report to the
chairs and ranking minority members of the legislative committees with jurisdiction over
economic development and taxes. The report must comply with sections 3.195 and 3.197,
and must detail the following:

(1) the amount of credit certifications issued annually;

(2) the number of applications submitted, the number of allocation deleted text begin certificates deleted text end new text begin letters new text end
issued, the amount of allocation deleted text begin certificates deleted text end new text begin letters new text end issued, the number of reports submitted
upon completion of a project, and the number of credit certificates issued;

(3) the types of projects eligible for the credit;

(4) the total economic impact of the credit in Minnesota, including the calendar year
over calendar year percentage changes in the number of jobs held by Minnesota residents
in businesses having a primary North American Industry Classification System code of
512110 as reported to the commissioner, for calendar years deleted text begin 2019 deleted text end new text begin 2027 new text end through deleted text begin 2023 deleted text end new text begin 2030 new text end ;

(5) the number of taxpayers per tax type which are assignees of credit certificates under
subdivision 3;

(6) annual Minnesota taxes paid by businesses having a primary North American Industry
Classification System code of 512110, for taxable years beginning after December 31, deleted text begin 2018 deleted text end new text begin
2026 new text end , and before January 1, deleted text begin 2024 deleted text end new text begin 2031 new text end ; and

(7) any other information the commissioner of revenue, in consultation with the director,
deems necessary for purposes of claiming and administering the credit.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

Minnesota Statutes 2024, section 290.0132, subdivision 11, is amended to read:

Subd. 11.

National Guard and reserve compensation.

(a) Compensation paid to
members of the Minnesota National Guard new text begin , the National Guard of a neighboring state, new text end or
other reserve components of the United States military for active service, including
compensation for services performed under the Active Guard Reserve (AGR) program, is
a subtraction.

(b) For purposes of this subdivision, deleted text begin "active service" means deleted text end new text begin the following terms have
the meanings given new text end :

(1) deleted text begin state active service as defined in section 190.05, subdivision 5a, clause (1) deleted text end new text begin "active
service" means:
new text end

new text begin (i) service or duty on behalf of the state or neighboring states in case of actual or
threatened public disaster, war, riot, tumult, breach of the peace, resistance of process, or
whenever called upon in aid of state civil authority;
new text end

new text begin (ii) service or duty under United States Code, title 32, as amended through December
31, 1983, and travel to or from that service or duty new text end ; or

new text begin (iii) service performed under section 190.08, subdivision 3; and
new text end

(2) deleted text begin federally funded state active service as defined in section 190.05, subdivision 5b,
and includes service performed under section 190.08, subdivision 3 deleted text end new text begin "neighboring state"
means North Dakota, South Dakota, Iowa, or Wisconsin new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2025.
new text end

Sec. 13.

Minnesota Statutes 2024, section 290.0681, subdivision 3, is amended to read:

Subd. 3.

Applications; allocations.

(a) To qualify for a credit or grant under this section,
the developer of a project must apply to the office before the rehabilitation begins. The
application must contain the information and be in the form prescribed by the office. The
office may collect a fee for application of up to 0.5 percent of qualified rehabilitation
expenditures, up to $40,000, based on estimated qualified rehabilitation expenditures, to
offset costs associated with personnel and administrative expenses related to administering
the credit and preparing the economic impact report in subdivision 9. Application fees are
deposited in the account. The application must indicate if the application is for a credit or
a grant in lieu of the credit or a combination of the two and designate the taxpayer qualifying
for the credit or the recipient of the grant.

(b) Upon approving an application for credit, the office shall issue allocation certificates
that:

(1) verify eligibility for the credit or grant;

(2) state the amount of credit or grant anticipated with the project, with the credit amount
equal to 100 percent and the grant amount equal to 90 percent of the federal credit anticipated
in the application;

(3) state that the credit or grant allowed may increase or decrease if the federal credit
the project receives at the time it is placed in service is different than the amount anticipated
at the time the allocation certificate is issued; and

(4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer or
grant recipient is entitled to receive one-fifth of the total amount of either the credit or the
grant at the time the project is placed in service, provided that date is within deleted text begin three deleted text end new text begin six new text end calendar
years following the issuance of the allocation certificate.

(c) The office, in consultation with the commissioner, shall determine if the project is
eligible for a credit or a grant under this section and must notify the developer in writing
of its determination. Eligibility for the credit is subject to review and audit by the
commissioner.

(d) The federal credit recapture and repayment requirements under section 50 of the
Internal Revenue Code do not apply to the credit allowed under this section.

(e) Any decision of the office under paragraph (c) may be challenged as a contested case
under chapter 14. The contested case proceeding must be initiated within 45 days of the
date of written notification by the office.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for projects for which an
allocation certificate was issued after June 30, 2021.
new text end

Sec. 14.

Minnesota Statutes 2024, section 290.0681, subdivision 4, is amended to read:

Subd. 4.

Credit certificates; grants.

(a)(1) The developer of a project for which the
office has issued an allocation certificate must notify the office when the project is placed
in service. Upon verifying that the project has been placed in service, and was allowed a
federal credit, the office must issue a credit certificate to the taxpayer designated in the
application or must issue a grant to the recipient designated in the application. The credit
certificate must state the amount of the credit.

(2) The credit amount equals the federal credit allowed for the project.

(3) The grant amount equals 90 percent of the federal credit allowed for the project.

(b) The recipient of a credit certificate may assign the certificate to another taxpayer
before the first one-fifth payment is claimed, which is then allowed the credit under this
section or section 297I.20, subdivision 3. new text begin Before the payment is claimed but after the first
assignment, the first assignee may assign the credit certificate in whole to a second assignee.
new text end An assignment is not valid unless the assignee notifies the commissioner within 30 days of
the date that the assignment is made. The commissioner shall prescribe the forms necessary
for notifying the commissioner of the assignment of a credit certificate and for claiming a
credit by assignment. new text begin The original credit certificate recipient and each assignee must file a
return with the commissioner for the taxable year that the project is placed in service.
new text end

(c) Credits passed through to partners, members, shareholders, or owners pursuant to
subdivision 5 are not an assignment of a credit certificate under this subdivision.

(d) A grant agreement between the office and the recipient of a grant may allow the
grant to be issued to another individual or entity.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications for allocation certificates
submitted after June 30, 2026.
new text end

Sec. 15.

Minnesota Statutes 2024, section 290.0683, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given.

(b) "Agency" means the Minnesota Housing Finance Agency.

new text begin (c) "Greater Minnesota" means the area of Minnesota located outside of the metropolitan
area.
new text end

new text begin (d) "Metropolitan area" has the meaning given in section 473.121, subdivision 2.
new text end

deleted text begin (c) deleted text end new text begin (e) new text end "Minnesota housing tax credit contribution account" or "account" means the
account established in section 462A.40.

deleted text begin (d) deleted text end new text begin (f) new text end "Qualified project" means a project that qualifies for a grant or loan under section
462A.40.

deleted text begin (e) deleted text end new text begin (g) new text end "Taxpayer" means a taxpayer as defined in section 290.01, subdivision 6, or a
taxpayer as defined in section 297I.01, subdivision 16.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2026.
new text end

Sec. 16.

Minnesota Statutes 2024, section 290.0683, subdivision 3, is amended to read:

Subd. 3.

Allocation.

(a) To qualify for the credit, a taxpayer must contribute to the
Minnesota housing tax credit contribution account. A taxpayer may indicate that a
contribution is intended for a specific qualified project new text begin , subject to the limitations in paragraph
(b) new text end . A taxpayer is prohibited from contributing to certain projects as provided in section
462A.40, subdivision 3.

new text begin (b) For each taxable year, the agency must reserve 50 percent of credits for contributions
to qualified projects located in greater Minnesota. Any portion of a taxable year's credits
reserved for contributions to qualified projects located in greater Minnesota that is not
allocated by the agency by September 30 of each year is available for allocation to credit
applications for contributions to other qualified projects beginning on October 1.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end The aggregate amount of tax credits allowed to all eligible contributors is limited
to $9,900,000 annually.

deleted text begin (c) deleted text end new text begin (d) new text end Within 30 days after a taxpayer contributes to the account, the agency must file
with the contributing taxpayer a credit certificate statement or return any amounts to the
taxpayer as provided in this paragraph. The agency must send a copy of the credit certificate
to the commissioner. If there are insufficient credits to match the contribution, the agency
must not issue a credit certificate for the amount of the contribution for which there are
insufficient credits, and must return that amount to the taxpayer before issuing any credit
certificate.

deleted text begin (d) deleted text end new text begin (e) new text end The credit certificate must state the dollar amount of the contribution made by
the taxpayer and the date the payment was received by the account, and indicate if the
contribution was intended for a specific qualified project.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2026.
new text end

Sec. 17.

Minnesota Statutes 2024, section 290.92, is amended by adding a subdivision to
read:

new text begin Subd. 32. new text end

new text begin Nonconformity to certain worker classification rules. new text end

new text begin For purposes of
employee classification under this section, "Internal Revenue Code" does not include section
530 of Public Law 95-600, as amended.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2026.
new text end

Sec. 18.

Minnesota Statutes 2024, section 462A.40, subdivision 3, is amended to read:

Subd. 3.

Eligible recipients; definitions; restrictions; use of funds.

(a) The agency
may award a grant or a loan to any recipient that qualifies under subdivision 2. The agency
must not award a grant or a loan to a disqualified individual or disqualified business.

(b) For the purposes of this subdivision disqualified individual means:

(1) an individual who or an individual whose immediate family member made a
contribution to the account in the current or prior taxable year and received a credit certificate;

(2) an individual who or an individual whose immediate family member owns the housing
for which the grant or loan will be used;

(3) an individual who meets the following criteria:

(i) the individual is an officer or principal of a business entity; and

(ii) that business entity made a contribution to the account in the current or previous
taxable year and received a credit certificate; or

(4) an individual who meets the following criteria:

(i) the individual directly owns, controls, or holds the power to vote 20 percent or more
of the outstanding securities of a business entity; and

(ii) that business entity made a contribution to the account in the current or previous
taxable year and received a credit certificate.

(c) For the purposes of this subdivision disqualified business means a business entity
that:

(1) made a contribution to the account in the current or prior taxable year and received
a credit certificate;

(2) has an officer or principal who is an individual who made a contribution to the
account in the current or previous taxable year and received a credit certificate; or

(3) meets the following criteria:

(i) the business entity is directly owned, controlled, or is subject to the power to vote 20
percent or more of the outstanding securities by an individual or business entity; and

(ii) that controlling individual or business entity made a contribution to the account in
the current or previous taxable year and received a credit certificate.

(d) For purposes of this subdivision, "immediate family" means the taxpayer's spouse,
parent or parent's spouse, sibling or sibling's spouse, or child or child's spouse. For a married
couple filing a joint return, the limitations in this subdivision apply collectively to the
taxpayer and spouse.

(e) Before applying for a grant or loan, all recipients must sign a disclosure that the
disqualifications under this subdivision do not apply. The Minnesota Housing Finance
Agency must prescribe the form of the disclosure. The Minnesota Housing Finance Agency
may rely on the disclosure to determine the eligibility of recipients under paragraph (a).

(f) The agency may award grants or loans to a city as defined in section 462A.03,
subdivision 21; a federally recognized American Indian Tribe or subdivision located in
Minnesota; a Tribal housing corporation; a private developer; a nonprofit organization; a
housing and redevelopment authority under sections 469.001 to 469.047; a public housing
authority or agency authorized by law to exercise any of the powers granted by sections
469.001 to 469.047; or the owner of the housing. The provisions of subdivision 2, and
paragraphs (a) to (e) and (g) of this subdivision, regarding the use of funds and eligible
recipients apply to grants and loans awarded under this paragraph.

(g) new text begin Except for projects receiving funding under section 462A.39, new text end eligible recipients must
use the funds to serve households that meet the income limits as provided in section 462A.33,
subdivision 5.

ARTICLE 3

PROPERTY TAXES

Section 1.

Minnesota Statutes 2024, section 272.01, subdivision 2, is amended to read:

Subd. 2.

Exempt property used by private entity for profit.

(a) When any real or
personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is leased,
loaned, or otherwise made available and used by a private individual, association, or
corporation in connection with a business conducted for profit, there shall be imposed a
tax, for the privilege of so using or possessing such real or personal property, in the same
amount and to the same extent as though the lessee or user was the owner of such property.

(b) The tax imposed by this subdivision shall not apply to:

(1) property leased or used as a concession in or relative to the use in whole or part of
a public park, market, fairgrounds, port authority, economic development authority
established under chapter 469, municipal auditorium, municipal parking facility, municipal
museum, or municipal stadium;

(2) property of an airport owned by a city, town, county, or group thereof which is:

(i) leased to or used by any person or entity including a fixed base operator; and

(ii) used as a hangar for the storage deleted text begin or deleted text end new text begin , new text end repair new text begin , or manufacture new text end of aircraft or to provide
aviation goods, services, or facilities to the airport or general public;

deleted text begin the exception from taxation provided in this clause does not apply to:
deleted text end

deleted text begin (i) property located at an airport owned or operated by the Metropolitan Airports
Commission or by a city of over 50,000 population according to the most recent federal
census or such a city's airport authority; or
deleted text end

deleted text begin (ii) hangars leased by a private individual, association, or corporation in connection with
a business conducted for profit other than an aviation-related business;
deleted text end

(3) property constituting or used as a public pedestrian ramp or concourse in connection
with a public airport;

(4) new text begin except as provided in paragraph (f), new text end property constituting or used as a passenger
check-in area or ticket sale counter, boarding area, or luggage claim area in connection with
a public airport but not the airports owned or operated by the Metropolitan Airports
Commission or cities of over 50,000 population or an airport authority therein. Real estate
owned by a municipality in connection with the operation of a public airport and leased or
used for agricultural purposes is not exempt;

(5) property leased, loaned, or otherwise made available to a private individual,
corporation, or association under a cooperative farming agreement made pursuant to section
97A.135; deleted text begin or
deleted text end

(6) property leased, loaned, or otherwise made available to a private individual,
corporation, or association under section 272.68, subdivision 4 deleted text begin . deleted text end new text begin ; or
new text end

new text begin (7) property owned by a nonprofit conservation organization that is leased, loaned, or
otherwise made available to a private individual, corporation, or association for grazing
activities that further the nonprofit conservation organization's conservation objectives for
the property, as documented in the organization's management or restoration plan.
new text end

new text begin (c) Except as provided in paragraph (f), the exception from taxation provided in paragraph
(b), clause (2), does not apply to:
new text end

new text begin (1) property located at an airport owned or operated by the Metropolitan Airports
Commission or by a city of over 50,000 population according to the most recent federal
census or such a city's airport authority; or
new text end

new text begin (2) hangars leased by a private individual, association, or corporation in connection with
a business conducted for profit other than an aviation-related business.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end Taxes imposed by this subdivision are payable as in the case of personal property
taxes and shall be assessed to the lessees or users of real or personal property in the same
manner as taxes assessed to owners of real or personal property, except that such taxes shall
not become a lien against the property. When due, the taxes shall constitute a debt due from
the lessee or user to the state, township, city, county, and school district for which the taxes
were assessed and shall be collected in the same manner as personal property taxes. If
property subject to the tax imposed by this subdivision is leased or used jointly by two or
more persons, each lessee or user shall be jointly and severally liable for payment of the
tax.

deleted text begin (d) deleted text end new text begin (e) new text end The tax on real property of the federal government, the state or any of its political
subdivisions that is leased, loaned, or otherwise made available to a private individual,
association, or corporation and becomes taxable under this subdivision or other provision
of law must be assessed and collected as a personal property assessment. The taxes do not
become a lien against the real property.

new text begin (f) Property of an airport that is:
new text end

new text begin (1) located at an airport owned or operated by a city of over 50,000 but under 150,000
in population according to the most recent federal census or such a city's airport authority;
new text end

new text begin (2) not owned or operated by the Metropolitan Airports Commission; and
new text end

new text begin (3) used as a hangar for the storage, repair, or manufacture of aircraft or to provide
aviation goods, services, or facilities to the airport or general public, or used as a passenger
check-in area or ticket sale counter, boarding area, or luggage claim area, shall have the tax
imposed by this subdivision calculated as follows: for property taxes payable in 2027 through
2038, the net tax capacity of such property shall be reduced by 50 percent.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2027. For assessment year 2026 only, an exemption application under this section must
be filed with the county assessor by July 1, 2026.
new text end

Sec. 2.

Minnesota Statutes 2024, section 272.02, subdivision 101, is amended to read:

Subd. 101.

Certain property owned by an Indian tribe.

(a) Property is exempt that:

(1) is located in a city of the first class with a population less than 100,000 as of the
2010 federal census;

(2) was on January 1, 2016, and is for the current assessment, owned by a federally
recognized Indian tribe, or its instrumentality, that is located within the state of Minnesota;
and

(3) is used exclusively as a medical clinic new text begin or for a parking lot used exclusively to serve
the medical clinic new text end .

(b) Property that qualifies for the exemption under this subdivision is limited to no more
than deleted text begin two contiguous deleted text end new text begin five new text end parcels and structures that do not exceed, in the aggregate, 30,000
square feet. Property acquired for single-family housing, market-rate apartments, agriculture,
or forestry does not qualify for this exemption. The exemption created by this subdivision
expires with taxes payable in deleted text begin 2028 deleted text end new text begin 2038 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2027.
new text end

Sec. 3.

Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision to
read:

new text begin Subd. 109. new text end

new text begin Electric generation facility; personal property. new text end

new text begin (a) Notwithstanding
subdivision 9, clause (a), attached machinery and other personal property that are part of
an electric generation facility with more than 40 megawatts and less than 50 megawatts of
installed capacity and that meet the requirements of this subdivision are exempt from taxation
and payments in lieu of taxation. The facility must:
new text end

new text begin (1) be designed to utilize natural gas as a primary fuel;
new text end

new text begin (2) be owned and operated by a municipal power agency as defined in section 453.52,
subdivision 8;
new text end

new text begin (3) be located within 1,000 feet of an existing natural gas pipeline;
new text end

new text begin (4) satisfy a resource deficiency identified in an integrated resource plan filed under
section 216B.2422;
new text end

new text begin (5) be located outside of the metropolitan area as defined in section 473.121, subdivision
2; and
new text end

new text begin (6) have received, by resolution, the approval of the governing bodies of the city and
county in which the facility is located for the exemption of personal property provided in
this subdivision.
new text end

new text begin (b) Construction of the facility must have commenced after January 1, 2026, and before
January 1, 2030. Property eligible for this exemption does not include electric transmission
lines and interconnections or gas pipelines and interconnections appurtenant to the property
or the facility.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2029.
new text end

Sec. 4.

Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision to
read:

new text begin Subd. 110. new text end

new text begin Certain property owned by an Indian Tribe. new text end

new text begin (a) Property is exempt that:
new text end

new text begin (1) is located in a city with a population greater than 12,400 but less than 12,800
according to the 2020 federal census;
new text end

new text begin (2) was on January 1, 2026, and is for the current assessment, owned by a federally
recognized Indian Tribe, or its instrumentality, that is located within the state; and
new text end

new text begin (3) is used to store medical clinic equipment and materials.
new text end

new text begin (b) Property that qualifies for exemption under this subdivision is limited to one parcel.
Any portion of the property used for housing, parking facilities, agriculture, or forestry does
not qualify for this exemption.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2027. For assessment year 2026 only, an exemption application under this section must
be filed with the county assessor by July 1, 2026.
new text end

Sec. 5.

Minnesota Statutes 2024, section 273.124, subdivision 14, is amended to read:

Subd. 14.

Agricultural homesteads; special provisions.

(a) Real estate of less than ten
acres that is the homestead of its owner must be classified as class 2a under section 273.13,
subdivision 23, paragraph (a), if:

(1) the parcel on which the house is located is contiguous on at least two sides to (i)
agricultural land, (ii) land owned or administered by the United States Fish and Wildlife
Service, or (iii) land administered by the Department of Natural Resources on which in lieu
taxes are paid under sections 477A.11 to 477A.14 or section 477A.17;

(2) its owner also owns a noncontiguous parcel of agricultural land that is at least 20
acres;

(3) the noncontiguous land is located not farther than four townships or cities, or a
combination of townships or cities from the homestead; and

(4) the agricultural use value of the noncontiguous land and farm buildings is equal to
at least 50 percent of the market value of the house, garage, and one acre of land.

Homesteads initially classified as class 2a under the provisions of this paragraph shall
remain classified as class 2a, irrespective of subsequent changes in the use of adjoining
properties, as long as the homestead remains under the same ownership, the owner owns a
noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use
value qualifies under clause (4). Homestead classification under this paragraph is limited
to property that qualified under this paragraph for the 1998 assessment.

deleted text begin (b)(i) deleted text end new text begin (b)(1) new text end Agricultural property shall be classified as the owner's homestead, to the
same extent as other agricultural homestead property, if all of the following criteria are met:

deleted text begin (1) deleted text end new text begin (i) new text end the agricultural property consists of at least 40 acres including undivided
government lots and correctional 40's;

deleted text begin (2) deleted text end new text begin (ii) new text end the owner, the owner's spouse, or new text begin grandparent, new text end a grandchild, child, new text begin stepchild,
new text end sibling, deleted text begin or deleted text end new text begin uncle, aunt, nephew, niece, new text end parent new text begin , or stepparent new text end of the owner or of the owner's
spouse, is actively farming the agricultural property, either on the person's own behalf as
an individual or on behalf of a partnership operating a family farm, family farm corporation,
joint family farm venture, or limited liability company of which the person is a partner,
shareholder, or member;

deleted text begin (3) deleted text end new text begin (iii) new text end both the owner of the agricultural property and the person who is actively farming
the agricultural property under deleted text begin clause (2) deleted text end new text begin item (ii) new text end , are Minnesota residents;

deleted text begin (4) deleted text end new text begin (iv) new text end neither the owner nor the spouse of the owner claims another agricultural
homestead in Minnesota; and

deleted text begin (5) deleted text end new text begin (v) new text end neither the owner nor the person actively farming the agricultural property lives
deleted text begin farther than four townships or cities, or a combination of four townships or cities, from the
agricultural property, except that if the owner or the owner's spouse is required to live in
employer-provided housing, the owner or owner's spouse, whichever is actively farming
the agricultural property, may live more than four townships or cities, or combination of
four townships or cities from the agricultural property deleted text end new text begin outside the county where the
agricultural property is located, or lives outside a county that is adjacent to the county where
the agricultural property is located new text end .

The relationship under this paragraph may be either by blood or marriage.

deleted text begin (ii) deleted text end new text begin (2) new text end Property containing the residence of an owner who owns qualified property under
clause deleted text begin (i) deleted text end new text begin (1) new text end shall be classified as part of the owner's agricultural homestead, if that property
is also used for noncommercial storage or drying of agricultural crops.

deleted text begin (iii) deleted text end new text begin (3) new text end As used in this paragraph, "agricultural property" means class 2a property and
any class 2b property that is contiguous to and under the same ownership as the class 2a
property.

(c) Noncontiguous land shall be included as part of a homestead under section 273.13,
subdivision 23, paragraph (a), only if the homestead is classified as class 2a and the detached
land is located in the same township or city, or not farther than four townships or cities or
combination thereof from the homestead. Any taxpayer of these noncontiguous lands must
notify the county assessor that the noncontiguous land is part of the taxpayer's homestead,
and, if the homestead is located in another county, the taxpayer must also notify the assessor
of the other county.

(d) Agricultural land used for purposes of a homestead and actively farmed by a person
holding a vested remainder interest in it must be classified as a homestead under section
273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a, any other
dwellings on the land used for purposes of a homestead by persons holding vested remainder
interests who are actively engaged in farming the property, and up to one acre of the land
surrounding each homestead and reasonably necessary for the use of the dwelling as a home,
must also be assessed class 2a.

(e) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain classified as
agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of the April 1997 floods;

(2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, or
Wilkin;

(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 1997 assessment year and continue to be used for
agricultural purposes;

(4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles
of one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to the 1997 floods,
and the owner furnishes the assessor any information deemed necessary by the assessor in
verifying the change in dwelling. Further notifications to the assessor are not required if the
property continues to meet all the requirements in this paragraph and any dwellings on the
agricultural land remain uninhabited.

(f) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain classified
agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of damage caused by a March 29, 1998, tornado;

(2) the property is located in the county of Blue Earth, Brown, Cottonwood, Le Sueur,
Nicollet, Nobles, or Rice;

(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 1998 assessment year;

(4) the dwelling occupied by the owner is located in this state and is within 50 miles of
one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to a March 29,
1998, tornado, and the owner furnishes the assessor any information deemed necessary by
the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the
owner must notify the assessor by December 1, 1998. Further notifications to the assessor
are not required if the property continues to meet all the requirements in this paragraph and
any dwellings on the agricultural land remain uninhabited.

(g) Agricultural property of a family farm corporation, joint family farm venture, family
farm limited liability company, or partnership operating a family farm as described under
subdivision 8 shall be classified homestead, to the same extent as other agricultural homestead
property, if all of the following criteria are met:

(1) the property consists of at least 40 acres including undivided government lots and
correctional 40's;

(2) a shareholder, member, or partner of that entity is actively farming the agricultural
property;

(3) that shareholder, member, or partner who is actively farming the agricultural property
is a Minnesota resident;

(4) neither that shareholder, member, or partner, nor the spouse of that shareholder,
member, or partner claims another agricultural homestead in Minnesota; and

(5) that shareholder, member, or partner does not live farther than four townships or
cities, or a combination of four townships or cities, from the agricultural property.

Homestead treatment applies under this paragraph even if:

(i) the shareholder, member, or partner of that entity is actively farming the agricultural
property on the shareholder's, member's, or partner's own behalf; or

(ii) the family farm is operated by a family farm corporation, joint family farm venture,
partnership, or limited liability company other than the family farm corporation, joint family
farm venture, partnership, or limited liability company that owns the land, provided that:

(A) the shareholder, member, or partner of the family farm corporation, joint family
farm venture, partnership, or limited liability company that owns the land who is actively
farming the land is a shareholder, member, or partner of the family farm corporation, joint
family farm venture, partnership, or limited liability company that is operating the farm;
and

(B) more than half of the shareholders, members, or partners of each family farm
corporation, joint family farm venture, partnership, or limited liability company are persons
or spouses of persons who are a qualifying relative under section 273.124, subdivision 1,
paragraphs (c) and (d).

Homestead treatment applies under this paragraph for property leased to a family farm
corporation, joint farm venture, limited liability company, or partnership operating a family
farm if legal title to the property is in the name of an individual who is a member, shareholder,
or partner in the entity.

(h) To be eligible for the special agricultural homestead under this subdivision, an initial
full application must be submitted to the county assessor where the property is located.
Owners and the persons who are actively farming the property shall be required to complete
only a one-page abbreviated version of the application in each subsequent year provided
that none of the following items have changed since the initial application:

(1) the day-to-day operation, administration, and financial risks remain the same;

(2) the owners and the persons actively farming the property continue to live within the
four townships or city criteria and are Minnesota residents;

(3) the same operator of the agricultural property is listed with the Farm Service Agency;

(4) a Schedule F or equivalent income tax form was filed for the most recent year;

(5) the property's acreage is unchanged; and

(6) none of the property's acres have been enrolled in a federal or state farm program
since the initial application.

The owners and any persons who are actively farming the property must include the
appropriate Social Security numbers or individual taxpayer identification numbers, and sign
and date the application. If any of the specified information has changed since the full
application was filed, the owner must notify the assessor, and must complete a new
application to determine if the property continues to qualify for the special agricultural
homestead. The commissioner of revenue shall prepare a standard reapplication form for
use by the assessors.

(i) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain classified
agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of damage caused by the August 2007 floods;

(2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele,
Wabasha, or Winona;

(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 2007 assessment year;

(4) the dwelling occupied by the owner is located in this state and is within 50 miles of
one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to the August 2007
floods, and the owner furnishes the assessor any information deemed necessary by the
assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the
owner must notify the assessor by December 1, 2008. Further notifications to the assessor
are not required if the property continues to meet all the requirements in this paragraph and
any dwellings on the agricultural land remain uninhabited.

(j) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 2008 assessment shall remain classified as
agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of the March 2009 floods;

(2) the property is located in the county of Marshall;

(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 2008 assessment year and continue to be used for
agricultural purposes;

(4) the dwelling occupied by the owner is located in Minnesota and is within 50 miles
of one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to the 2009 floods,
and the owner furnishes the assessor any information deemed necessary by the assessor in
verifying the change in dwelling. Further notifications to the assessor are not required if the
property continues to meet all the requirements in this paragraph and any dwellings on the
agricultural land remain uninhabited.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2027.
new text end

Sec. 6.

Minnesota Statutes 2025 Supplement, section 273.13, subdivision 22, is amended
to read:

Subd. 22.

Class 1.

(a) Except as provided in subdivision 23 and in paragraphs (b) and
(c), real estate which is residential and used for homestead purposes is class 1a. In the case
of a duplex or triplex in which one of the units is used for homestead purposes, the entire
property is deemed to be used for homestead purposes. The market value of class 1a property
must be determined based upon the value of the house, garage, and land.

The first $500,000 of market value of class 1a property has a net classification rate of
one percent of its market value; and the market value of class 1a property that exceeds
$500,000 has a classification rate of 1.25 percent of its market value.

(b) Class 1b property includes homestead real estate or homestead manufactured homes
used for the purposes of a homestead by:

(1) any person who is blind as defined in section 256D.35, or the person who is blind
and the spouse of the person who is blind;

(2) any person who is permanently and totally disabled or by the person with a disability
and the spouse of the person with a disability; or

(3) the surviving spouse of a veteran who was permanently and totally disabled
homesteading a property classified under this paragraph for taxes payable in 2008.

Property is classified and assessed under clause (2) only if the government agency or
income-providing source certifies, upon the request of the homestead occupant, that the
homestead occupant satisfies the disability requirements of this paragraph, and that the
property is not eligible for the valuation exclusion under subdivision 34.

Property is classified and assessed under paragraph (b) only if the commissioner of
revenue or the county assessor certifies that the homestead occupant satisfies the requirements
of this paragraph.

Permanently and totally disabled for the purpose of this subdivision means a condition
which is permanent in nature and totally incapacitates the person from working at an
occupation which brings the person an income. The first $50,000 market value of class 1b
property has a net classification rate of 0.45 percent of its market value. The remaining
market value of class 1b property is classified as class 1a property, class 2a property, or
class 4d(2) property, whichever is appropriate.

(c) Class 1c property is commercial use real and personal property that abuts public
water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by
the Department of Natural Resources, and is devoted to temporary and seasonal residential
occupancy for recreational purposes but not devoted to commercial purposes for more than
250 days in the year preceding the year of assessment, and that includes a portion used as
a homestead by the owner, which includes a dwelling occupied as a homestead by a
shareholder of a corporation that owns the resort, a partner in a partnership that owns the
resort, or a member of a limited liability company that owns the resort even if the title to
the homestead is held by the corporation, partnership, or limited liability company. For
purposes of this paragraph, property is devoted to a commercial purpose on a specific day
if any portion of the property, excluding the portion used exclusively as a homestead, is
used for residential occupancy and a fee is charged for residential occupancy. Class 1c
property must contain three or more rental units. A "rental unit" is defined as a cabin,
condominium, townhouse, sleeping room, or individual camping site equipped with water
and electrical hookups for recreational vehicles. Class 1c property must provide recreational
activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill
or cross-country ski equipment; provide marina services, launch services, or guide services;
or sell bait and fishing tackle. Any unit in which the right to use the property is transferred
to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies
for class 1c even though it may remain available for rent. A camping pad offered for rent
by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of
the rental agreement, as long as the use of the camping pad does not exceed 250 days. If
the same owner owns two separate parcels that are located in the same township, and one
of those properties is classified as a class 1c property and the other would be eligible to be
classified as a class 1c property if it was used as the homestead of the owner, both properties
will be assessed as a single class 1c property; for purposes of this sentence, properties are
deemed to be owned by the same owner if each of them is owned by a limited liability
company, and both limited liability companies have the same membership. The portion of
the property used as a homestead is class 1a property under paragraph (a). The remainder
of the property is classified as follows: the first deleted text begin $600,000 deleted text end new text begin $1,500,000 new text end of market value is tier
I, the next deleted text begin $1,700,000 deleted text end new text begin $3,000,000 new text end of market value is tier II, and any remaining market value
is tier III. The classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent;
and tier III, 1.25 percent. Owners of real and personal property devoted to temporary and
seasonal residential occupancy for recreation purposes in which all or a portion of the
property was devoted to commercial purposes for not more than 250 days in the year
preceding the year of assessment desiring classification as class 1c, must submit a declaration
to the assessor designating the cabins or units occupied for 250 days or less in the year
preceding the year of assessment by January 15 of the assessment year. Those cabins or
units and a proportionate share of the land on which they are located must be designated as
class 1c as otherwise provided. The remainder of the cabins or units and a proportionate
share of the land on which they are located must be designated as class 3a commercial. The
owner of property desiring designation as class 1c property must provide guest registers or
other records demonstrating that the units for which class 1c designation is sought were not
occupied for more than 250 days in the year preceding the assessment if so requested. The
portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center
or meeting room, and (5) other nonresidential facility operated on a commercial basis not
directly related to temporary and seasonal residential occupancy for recreation purposes
does not qualify for class 1c.

(d) Class 1d property includes structures that meet all of the following criteria:

(1) the structure is located on property that is classified as agricultural property under
section 273.13, subdivision 23;

(2) the structure is occupied exclusively by seasonal farm workers during the time when
they work on that farm, and the occupants are not charged rent for the privilege of occupying
the property, provided that use of the structure for storage of farm equipment and produce
does not disqualify the property from classification under this paragraph;

(3) the structure meets all applicable health and safety requirements for the appropriate
season; and

(4) the structure is not salable as residential property because it does not comply with
local ordinances relating to location in relation to streets or roads.

The market value of class 1d property has the same classification rates as class 1a property
under paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2027.
new text end

Sec. 7.

Minnesota Statutes 2025 Supplement, section 273.13, subdivision 23, is amended
to read:

Subd. 23.

Class 2.

(a) An agricultural homestead consists of class 2a agricultural land
that is homesteaded, along with any class 2b rural vacant land that is contiguous to the class
2a land under the same ownership. The market value of the house and garage and immediately
surrounding one acre of land has the same classification rates as class 1a or 1b property
under subdivision 22. The value of the remaining land including improvements up to the
first tier valuation limit of agricultural homestead property has a classification rate of 0.5
percent of market value. The remaining property over the first tier has a classification rate
of one percent of market value. For purposes of this subdivision, the "first tier valuation
limit of agricultural homestead property" and "first tier" means the limit certified under
section 273.11, subdivision 23.

(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that
are agricultural land and buildings. Class 2a property has a classification rate of one percent
of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a
property must also include any property that would otherwise be classified as 2b, but is
interspersed with class 2a property, including but not limited to sloughs, wooded wind
shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement,
and other similar land that is impractical for the assessor to value separately from the rest
of the property or that is unlikely to be able to be sold separately from the rest of the property.

An assessor may classify the part of a parcel described in this subdivision that is used
for agricultural purposes as class 2a and the remainder in the class appropriate to its use.

(c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that
are unplatted real estate, rural in character and not used for agricultural purposes, including
land used for growing trees for timber, lumber, and wood and wood products, that is not
improved with a structure. The presence of a minor, ancillary nonresidential structure as
defined by the commissioner of revenue does not disqualify the property from classification
under this paragraph. Any parcel of 20 acres or more improved with a structure that is not
a minor, ancillary nonresidential structure must be split-classified, and ten acres must be
assigned to the split parcel containing the structure. If a parcel of 20 acres or more is enrolled
in the sustainable forest management incentive program under chapter 290C, the number
of acres assigned to the split parcel improved with a structure that is not a minor, ancillary
nonresidential structure must equal three acres or the number of acres excluded from the
sustainable forest incentive act covenant due to the structure, whichever is greater. Class
2b property has a classification rate of one percent of market value unless it is part of an
agricultural homestead under paragraph (a), or qualifies as class 2c under paragraph (d).

(d) Class 2c managed forest land consists of no less than 20 and no more than 1,920
acres statewide per taxpayer that is being managed under a forest management plan that
meets the requirements of deleted text begin chapter deleted text end deleted text begin 290C deleted text end new text begin section 290C.02, subdivision 7, prepared by an
approved plan writer as defined in section 290C.02, subdivision 2 new text end , deleted text begin but deleted text end new text begin and new text end is not enrolled
in the sustainable forest resource management incentive program. It has a classification rate
of .65 percent, provided that the owner of the property must apply to the assessor in order
for the property to initially qualify for the reduced rate and provide the information required
by the assessor to verify that the property qualifies for the reduced rate. If the assessor
receives the application and information before May 1 in an assessment year, the property
qualifies beginning with that assessment year. If the assessor receives the application and
information after April 30 in an assessment year, the property may not qualify until the next
assessment year. The commissioner of natural resources must concur that the land is qualified.
The commissioner of natural resources shall annually provide county assessors verification
information on a timely basis. The presence of a minor, ancillary nonresidential structure
as defined by the commissioner of revenue does not disqualify the property from
classification under this paragraph. new text begin Notwithstanding any law to the contrary, managed forest
land that is otherwise eligible to be classified as class 2c under this paragraph is eligible
regardless of whether it is wholly or partially subject to a conservation easement.
new text end

(e) Agricultural land as used in this section means:

(1) contiguous acreage of ten acres or more, used during the preceding year for
agricultural purposes; or

(2) contiguous acreage used during the preceding year for an intensive livestock or
poultry confinement operation, provided that land used only for pasturing or grazing does
not qualify under this clause.

"Agricultural purposes" as used in this section means the raising, cultivation, drying, or
storage of agricultural products for sale, or the storage of machinery or equipment used in
support of agricultural production by the same farm entity. For a property to be classified
as agricultural based only on the drying or storage of agricultural products, the products
being dried or stored must have been produced by the same farm entity as the entity operating
the drying or storage facility. "Agricultural purposes" also includes (i) enrollment in a local
conservation program or the Reinvest in Minnesota program under sections 103F.501 to
103F.535 or the federal Conservation Reserve Program as contained in Public Law 99-198
or a similar state or federal conservation program if the property was classified as agricultural
(A) under this subdivision for taxes payable in 2003 because of its enrollment in a qualifying
program and the land remains enrolled or (B) in the year prior to its enrollment, or (ii) use
of land, not to exceed three acres, to provide environmental benefits such as buffer strips,
old growth forest restoration or retention, or retention ponds to prevent soil erosion. For
purposes of this section, a "local conservation program" means a program administered by
a town, statutory or home rule charter city, or county, including a watershed district, water
management organization, or soil and water conservation district, in which landowners
voluntarily enroll land and receive incentive payments equal to at least $50 per acre in
exchange for use or other restrictions placed on the land. In order for property to qualify
under the local conservation program provision, a taxpayer must apply to the assessor by
February 1 of the assessment year and must submit the information required by the assessor,
including but not limited to a copy of the program requirements, the specific agreement
between the land owner and the local agency, if applicable, and a map of the conservation
area. Agricultural classification shall not be based upon the market value of any residential
structures on the parcel or contiguous parcels under the same ownership.

"Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous
portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion
of, a set of contiguous tax parcels under that section that are owned by the same person.

(f) Agricultural land under this section also includes:

(1) contiguous acreage that is less than ten acres in size and exclusively used in the
preceding year for raising or cultivating agricultural products;

(2) contiguous acreage that contains a residence and is less than 11 acres in size, if the
contiguous acreage exclusive of the house, garage, and surrounding one acre of land was
used in the preceding year for one or more of the following three uses:

(i) for an intensive grain drying or storage operation, or for intensive machinery or
equipment storage activities used to support agricultural activities on other parcels of property
operated by the same farming entity;

(ii) as a nursery, provided that only those acres used intensively to produce nursery stock
are considered agricultural land; or

(iii) for intensive market farming; deleted text begin or
deleted text end

(3) contiguous acreage that contains a residence and is less than 15 acres in size, if the
contiguous acreage inclusive of the house, garage, and surrounding one acre of land was
used in the preceding year for market farming and the owner provides the county assessor
with the filed federal Schedule F (Form 1040) for the most recent completed tax year that
reports gross income of at least $20,000 deleted text begin . deleted text end new text begin ; or
new text end

new text begin (4) contiguous acreage that contains a farm winery licensed under section 340A.315.
new text end

For purposes of this paragraph, "market farming" means the cultivation of one or more
fruits or vegetables or production of animal or other agricultural products for sale to local
markets by the farmer or an organization with which the farmer is affiliated, and "contiguous
acreage" means all of a tax parcel as described in section 272.193, or all of a set of contiguous
tax parcels under that section that are owned by the same person.

(g) Land shall be classified as agricultural even if all or a portion of the agricultural use
of that property is the leasing to, or use by another person for agricultural purposes.

Classification under this subdivision is not determinative for qualifying under section
273.111.

(h) The property classification under this section supersedes, for property tax purposes
only, any locally administered agricultural policies or land use restrictions that define
minimum or maximum farm acreage.

(i) The term "agricultural products" as used in this subdivision includes production for
sale of:

(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
animals, horticultural and nursery stock, floriculture, fruit of all kinds, vegetables, forage,
grains, bees, and apiary products by the owner;

(2) aquacultural products for sale and consumption, as defined under section 17.47, if
the aquaculture occurs on land zoned for agricultural use;

(3) the commercial boarding of horses, which may include related horse training and
riding instruction, if the boarding is done on property that is also used for raising pasture
to graze horses or raising or cultivating other agricultural products as defined in clause (1);

(4) property which is owned and operated by nonprofit organizations used for equestrian
activities, excluding racing;

(5) game birds and waterfowl bred and raised (i) on a game farm licensed under section
97A.105, provided that the annual licensing report to the Department of Natural Resources,
which must be submitted annually by March 30 to the assessor, indicates that at least 500
birds were raised or used for breeding stock on the property during the preceding year and
that the owner provides a copy of the owner's most recent schedule F; or (ii) for use on a
shooting preserve licensed under section 97A.115;

(6) insects primarily bred to be used as food for animals;

(7) trees, grown for sale as a crop, including short rotation woody crops, and not sold
for timber, lumber, wood, or wood products; deleted text begin and
deleted text end

(8) maple syrup taken from trees grown by a person licensed by the Minnesota
Department of Agriculture under chapter 28A as a food processor deleted text begin . deleted text end new text begin ; and
new text end

new text begin (9) wine for sale and consumption if production occurs on a farm winery licensed under
section 340A.315.
new text end

(j) If a parcel used for agricultural purposes is also used for commercial or industrial
purposes, including but not limited to:

(1) wholesale and retail sales;

(2) processing of raw agricultural products or other goods;

(3) warehousing or storage of processed goods; and

(4) office facilities for the support of the activities enumerated in clauses (1), (2), and
(3), the assessor shall classify the part of the parcel used for agricultural purposes as class
1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use.
The grading, sorting, and packaging of raw agricultural products for first sale is considered
an agricultural purpose. A greenhouse or other building where floricultural, horticultural
or nursery products are grown that is also used for the conduct of retail sales must be
classified as agricultural if it is primarily used for the growing of floricultural, horticultural
or nursery products from seed, cuttings, or roots and occasionally as a showroom for the
retail sale of those products. Use of a greenhouse or building only for the display of already
grown floricultural, horticultural or nursery products does not qualify as an agricultural
purpose.

"Floriculture," for the purposes of this paragraph, includes production of bedding and garden
plants, foliage plants, potted flowering plants, and cut flowers.

(k) The assessor shall determine and list separately on the records the market value of
the homestead dwelling and the one acre of land on which that dwelling is located. If any
farm buildings or structures are located on this homesteaded acre of land, their market value
shall not be included in this separate determination.

(l) Class 2d airport landing area consists of a landing area or public access area of a
privately owned public use airport. It has a classification rate of one percent of market value.
To qualify for classification under this paragraph, a privately owned public use airport must
be licensed as a public airport under section 360.018. For purposes of this paragraph, "landing
area" means that part of a privately owned public use airport properly cleared, regularly
maintained, and made available to the public for use by aircraft and includes runways,
taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing
area also includes land underlying both the primary surface and the approach surfaces that
comply with all of the following:

(i) the land is properly cleared and regularly maintained for the primary purposes of the
landing, taking off, and taxiing of aircraft; but that portion of the land that contains facilities
for servicing, repair, or maintenance of aircraft is not included as a landing area;

(ii) the land is part of the airport property; and

(iii) the land is not used for commercial or residential purposes.

The land contained in a landing area under this paragraph must be described and certified
by the commissioner of transportation. The certification is effective until it is modified, or
until the airport or landing area no longer meets the requirements of this paragraph. For
purposes of this paragraph, "public access area" means property used as an aircraft parking
ramp, apron, or storage hangar, or an arrival and departure building in connection with the
airport.

(m) Class 2e consists of land with a commercial aggregate deposit that is not actively
being mined and is not otherwise classified as class 2a or 2b, provided that the land is not
located in a county that has elected to opt-out of the aggregate preservation program as
provided in section 273.1115, subdivision 6. It has a classification rate of one percent of
market value. To qualify for classification under this paragraph, the property must be at
least ten contiguous acres in size and the owner of the property must record with the county
recorder of the county in which the property is located an affidavit containing:

(1) a legal description of the property;

(2) a disclosure that the property contains a commercial aggregate deposit that is not
actively being mined but is present on the entire parcel enrolled;

(3) documentation that the conditional use under the county or local zoning ordinance
of this property is for mining; and

(4) documentation that a permit has been issued by the local unit of government or the
mining activity is allowed under local ordinance. The disclosure must include a statement
from a registered professional geologist, engineer, or soil scientist delineating the deposit
and certifying that it is a commercial aggregate deposit.

For purposes of this section and section 273.1115, "commercial aggregate deposit"
means a deposit that will yield crushed stone or sand and gravel that is suitable for use as
a construction aggregate; and "actively mined" means the removal of top soil and overburden
in preparation for excavation or excavation of a commercial deposit.

(n) When any portion of the property under this subdivision or subdivision 22 begins to
be actively mined, the owner must file a supplemental affidavit within 60 days from the
day any aggregate is removed stating the number of acres of the property that is actively
being mined. The acres actively being mined must be (1) valued and classified under
subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate
resource preservation property tax program under section 273.1115, if the land was enrolled
in that program. Copies of the original affidavit and all supplemental affidavits must be
filed with the county assessor, the local zoning administrator, and the Department of Natural
Resources, Division of Land and Minerals. A supplemental affidavit must be filed each
time a subsequent portion of the property is actively mined, provided that the minimum
acreage change is five acres, even if the actual mining activity constitutes less than five
acres.

(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are not
rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in
section 14.386 concerning exempt rules do not apply.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2027.
new text end

Sec. 8.

Minnesota Statutes 2024, section 273.13, subdivision 34, is amended to read:

Subd. 34.

Homestead of veteran with a disability or family caregiver.

(a) All or a
portion of the market value of property owned by a veteran and serving as the veteran's
homestead under this section is excluded in determining the property's taxable market value
if the veteran has a service-connected disability of 70 percent or more as certified by the
United States Department of Veterans Affairs. To qualify for exclusion under this subdivision,
the veteran must have been honorably discharged from the United States armed forces, as
indicated by United States Government Form DD214 or other official military discharge
papers.

(b)(1) For a disability rating of 70 percent or more, deleted text begin $150,000 deleted text end new text begin $175,000 new text end of market value
is excluded, except as provided in clause (2); and

(2) for a total (100 percent) and permanent disability, deleted text begin $300,000 deleted text end new text begin $350,000 new text end of market
value is excluded.

(c) If a veteran with a disability qualifying for a valuation exclusion under paragraph
(b), clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the
spouse holds the legal or beneficial title to the homestead and permanently resides there,
the exclusion shall carry over to the benefit of the veteran's spouse until such time as the
spouse remarries, or sells, transfers, or otherwise disposes of the property, except as otherwise
provided in paragraph (n). Qualification under this paragraph requires an application under
paragraph (h), and a spouse must notify the assessor if there is a change in the spouse's
marital status, ownership of the property, or use of the property as a permanent residence.

(d) If the spouse of a member of any branch or unit of the United States armed forces
who dies due to a service-connected cause while serving honorably in active service, as
indicated on United States Government Form DD1300 or DD2064, holds the legal or
beneficial title to a homestead and permanently resides there, the spouse is entitled to the
benefit described in paragraph (b), clause (2), until such time as the spouse remarries or
sells, transfers, or otherwise disposes of the property, except as otherwise provided in
paragraph (n).

(e) If a veteran meets the disability criteria of paragraph (a) but does not own property
classified as homestead in the state of Minnesota, then the homestead of the veteran's primary
family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify
for under paragraph (b).

(f) In the case of an agricultural homestead, only the portion of the property consisting
of the house and garage and immediately surrounding one acre of land qualifies for the
valuation exclusion under this subdivision.

(g) A property qualifying for a valuation exclusion under this subdivision is not eligible
for the market value exclusion under subdivision 35, or classification under subdivision 22,
paragraph (b).

(h) To qualify for a valuation exclusion under this subdivision a property owner must
apply to the assessor by December 31 of the first assessment year for which the exclusion
is sought. Except as provided in paragraph (c), the owner of a property that has been accepted
for a valuation exclusion must notify the assessor if there is a change in ownership of the
property or in the use of the property as a homestead.

(i) A first-time application by a qualifying spouse for the market value exclusion under
paragraph (d) must be made any time within two years of the death of the service member.

(j) For purposes of this subdivision:

(1) "active service" has the meaning given in section 190.05;

(2) "own" means that the person's name is present as an owner on the property deed;

(3) "primary family caregiver" means a person who is approved by the secretary of the
United States Department of Veterans Affairs for assistance as the primary provider of
personal care services for an eligible veteran under the Program of Comprehensive Assistance
for Family Caregivers, codified as United States Code, title 38, section 1720G; and

(4) "veteran" has the meaning given the term in section 197.447.

(k) If a veteran did not apply for or receive the exclusion under paragraph (b), clause
(2), before dying, or the exclusion under paragraph (b), clause (2), did not exist at the time
of the veterans death, the veteran's spouse is entitled to the benefit under paragraph (b),
clause (2), until the spouse remarries or sells, transfers, or otherwise disposes of the property,
except as otherwise provided in paragraph (n), if:

(1) the spouse files a first-time application;

(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the
homestead and permanently resides there;

(3) the veteran met the honorable discharge requirements of paragraph (a); and

(4) the United States Department of Veterans Affairs certifies that:

(i) the veteran met the total (100 percent) and permanent disability requirement under
paragraph (b), clause (2); or

(ii) the spouse has been awarded dependency and indemnity compensation.

(l) The purpose of this provision of law providing a level of homestead property tax
relief for veterans with a disability, their primary family caregivers, and their surviving
spouses is to help ease the burdens of war for those among our state's citizens who bear
those burdens most heavily.

(m) By July 1, the county veterans service officer must certify the disability rating and
permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.

(n) A spouse who received the benefit in paragraph (c), (d), or (k) but no longer holds
the legal or beneficial title to the property may continue to receive the exclusion for a
property other than the property for which the exclusion was initially granted until the spouse
remarries or sells, transfers, or otherwise disposes of the property, provided that:

(1) the spouse applies under paragraph (h) for the continuation of the exclusion allowed
under this paragraph;

(2) the spouse holds the legal or beneficial title to the property for which the continuation
of the exclusion is sought under this paragraph, and permanently resides there;

(3) the estimated market value of the property for which the exclusion is sought under
this paragraph is less than or equal to the estimated market value of the property that first
received the exclusion, based on the value of each property on the date of the sale of the
property that first received the exclusion; and

(4) the spouse has not previously received the benefit under this paragraph for a property
other than the property for which the exclusion is sought.

(o) If a spouse had previously received the exclusion under paragraph (c) or (d) and the
exclusion expired prior to taxes payable in 2020, the spouse may reapply under this section
for the exclusion under paragraph (c) or (d).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2026.
new text end

Sec. 9.

Minnesota Statutes 2024, section 469.171, subdivision 1, is amended to read:

Subdivision 1.

Authorized types.

(a) The following types of tax reductions new text begin or
reimbursements new text end may be approved by the commissioner for businesses located in a border
city enterprise zone, after the governing body of the border city has designated an area or
areas deleted text begin , each consisting of at least 100 acres, of the city not in excess of a total of 400 acres deleted text end
in which the tax reductions may be provided:

(1) an exemption from the general sales tax imposed by chapter 297A for purchases of
construction materials or equipment for use in the zone if the purchase was made after the
date of application for the zone;

(2) a credit against the income tax of an employer for additional workers employed in
the zone, other than workers employed in construction, up to a maximum of deleted text begin $3,000 deleted text end new text begin $5,000 new text end
per employee per year;

(3) an income tax credit for a percentage of the cost of debt financing to construct new
or expanded facilities in the zone; deleted text begin and
deleted text end

(4) a state paid property tax credit for a portion of the property taxes paid by a new
commercial or industrial facility or the additional property taxes paid by an expansion of
an existing commercial or industrial facility in the zone deleted text begin . deleted text end new text begin ; and
new text end

new text begin (5) reimbursement of land acquisition costs for business expansion within the zone if
the municipality determines that expansion was necessary to prevent relocation outside the
state.
new text end

(b) An application for a tax reduction new text begin or reimbursement new text end under this subdivision may not
be approved unless the governing body finds new text begin both: (1) new text end that the construction or improvement
of the facility is not likely to have the effect of transferring existing employment from a
location outside of the municipality but within the state new text begin ; and (2) that the facility is in
compliance with all applicable municipal licensing and municipal regulatory requirements new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10.

Minnesota Statutes 2024, section 469.171, subdivision 4, is amended to read:

Subd. 4.

Restriction.

The tax reductions provided by this section shall not apply to (1)
deleted text begin a facility the primary purpose of which is one of the following: the provision of recreation
or entertainment, or a private or commercial golf course, country club, massage parlor,
tennis club, skating facility including roller skating, skateboard, and ice skating, racquet
sports facility, including any handball or racquetball court, hot tub facility, suntan facility,
or racetrack; (2) deleted text end property of a public utility; deleted text begin (3) deleted text end new text begin (2) new text end property used in the operation of a
financial institution; deleted text begin (4) deleted text end new text begin or (3) new text end property owned by a fraternal or veterans' organization deleted text begin ; or
(5) a retail food or beverage facility operating under a franchise agreement that requires the
business to be located in this state deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11.

Minnesota Statutes 2024, section 469.171, subdivision 6a, is amended to read:

Subd. 6a.

Additional border city allocations.

The commissioner may allocate $2,000,000
for tax reductions pursuant to subdivision 9 to border city enterprise zones. This money
shall be allocated among the zones on a per capita basis. Tax reductions authorized by this
subdivision may not be allocated to any property which is:

deleted text begin (1) a facility the primary purpose of which is one of the following: the provision of
recreation or entertainment, or a private or commercial golf course, country club, massage
parlor, tennis club, skating facility including roller skating, skateboard, and ice skating,
racquet sports facility, including any handball or racquetball court, hot tub facility, suntan
facility, or racetrack;
deleted text end

deleted text begin (2) deleted text end new text begin (1) new text end property of a public utility;

deleted text begin (3) deleted text end new text begin (2) new text end property used in the operation of a financial institution; new text begin or
new text end

deleted text begin (4) deleted text end new text begin (3) new text end property owned by a fraternal or veterans' organization deleted text begin ; deleted text end new text begin .
new text end

deleted text begin (5) property of a retail food or beverage service business operating under a franchise
agreement that requires the business to be located in the state.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

Minnesota Statutes 2024, section 469.1731, subdivision 1, is amended to read:

Subdivision 1.

Designation.

To encourage economic development, to revitalize the
designated areas, to expand tax base and economic activity, and to provide job creation,
growth, and retention, the following border cities may designate, by resolution, areas of the
city as development zones after a public hearing upon 30-day notice.

(a) The city of Breckenridge may designate all or any part of the city as a zone.

(b) The city of Dilworth may designate deleted text begin between one and six areas of the city as zones
containing not more than 100 acres in the aggregate deleted text end new text begin all or any part of the city as a zone new text end .

(c) The city of East Grand Forks may designate all or any part of the city as a zone.

(d) The city of Moorhead may designate deleted text begin between one and six areas of the city as zones
containing not more than 100 acres in the aggregate deleted text end new text begin all or any part of the city as a zone new text end .

(e) The city of Ortonville may designate deleted text begin between one and six areas of the city as zones
containing not more than 100 acres in the aggregate deleted text end new text begin all or any part of the city as a zone new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 13. new text begin ONETIME INCREASE IN HOMESTEAD CREDIT REFUND.
new text end

new text begin Subdivision 1. new text end

new text begin Homestead credit refund. new text end

new text begin For claims filed based on taxes payable in
2026, the commissioner shall increase by 12 percent the refund otherwise payable under
Minnesota Statutes, section 290A.04, subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin No notification of appeal rights. new text end

new text begin In adjusting homestead credit refunds under
this section, the commissioner is not required to provide information concerning appeal
rights that ordinarily must be provided whenever the commissioner adjusts refunds payable
under Minnesota Statutes, chapter 290A. Taxpayers retain all rights to appeal adjustments
under this section.
new text end

new text begin Subd. 3. new text end

new text begin Appropriation. new text end

new text begin The amount necessary to make the payments required under
this section is appropriated from the general fund to the commissioner of revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective only for refunds based on property taxes
payable in 2026.
new text end

ARTICLE 4

SALES AND USE AND EXCISE TAXES

Section 1.

new text begin [295.90] SOCIAL MEDIA CONSUMER DATA COLLECTION TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Collects" means collects, engages, maintains, uses, processes, or shares.
new text end

new text begin (c) "Commissioner" means the commissioner of revenue.
new text end

new text begin (d) "Consumer" means an individual who establishes an account with a social media
platform business or who accesses a social media platform through an account registered
with a social media platform business and whose consumer data is collected by the social
media platform business, regardless of whether the individual is charged for establishing
the account.
new text end

new text begin (e) "Consumer data" means any information that identifies, relates to, describes, is
capable of being associated with, or could reasonably be linked with a consumer, whether
directly submitted to the social media platform business by the consumer or derived from
other sources.
new text end

new text begin (f) "Minnesota consumer" means a consumer who is a resident of Minnesota.
new text end

new text begin (g) "Resident" has the meaning given in section 290.01, subdivision 7.
new text end

new text begin (h) "Social media platform" has the meaning given in section 325M.31, paragraph (j).
new text end

new text begin (i) "Social media platform business" means a for-profit entity that: (1) owns, controls,
or operates a social media platform; and (2) collects consumer data in support of the entity's
business activities.
new text end

new text begin Subd. 2. new text end

new text begin Tax imposed. new text end

new text begin A tax is imposed on social media platform businesses based on
the number of Minnesota social media platform consumers from whom a social media
platform business collects data within a month:
new text end

new text begin Minnesota consumers new text end	new text begin Tax new text end
new text begin Fewer than or equal to 100,000 new text end	new text begin Zero; new text end
new text begin Over 100,000 but not more than 500,000 new text end	new text begin $0.50 per month on the number of Minnesota consumers over 100,000 but not more than 500,000; new text end
new text begin Over 500,000 but not more than 1,000,000 new text end	new text begin $200,000 plus $0.70 per month on the number of Minnesota consumers over 500,000 but not more than 1,000,000; and new text end
new text begin Over 1,000,000 new text end	new text begin $550,000 plus $0.90 per month on the number of Minnesota consumers over 1,000,000. new text end

new text begin Subd. 3. new text end

new text begin Business entities. new text end

new text begin Business entities that are part of a controlled group of
corporations as defined in section 1563(a) of the Internal Revenue Code shall be treated as
a single entity for purposes of meeting the definition of a social media platform business
under this section. The entities constituting the single taxpayer are jointly and severally
liable for the tax.
new text end

new text begin Subd. 4. new text end

new text begin Counting Minnesota consumers. new text end

new text begin (a) A Minnesota consumer must be counted
only once in the calculation of tax imposed under this section. Until the contrary is
established, it is presumed that each account is an individual consumer. The burden of
proving that multiple accounts are one consumer is on the social media platform business.
new text end

new text begin (b) The single member of a single member limited liability company must be treated as
a consumer under this section.
new text end

new text begin (c) Until the contrary is established, it is presumed that a consumer whose information
on record with or available to a social media platform business indicates a Minnesota home
address, a Minnesota mailing address, or an internet protocol address connected with a
Minnesota location is a Minnesota consumer for purposes of this section. The burden of
proving that a consumer is not a Minnesota resident is on the social media platform business.
new text end

new text begin (d) A social media platform business and the commissioner may agree on a methodology
for determining the number of Minnesota consumers for purposes of calculating the tax.
new text end

new text begin Subd. 5. new text end

new text begin Credit against tax paid to another jurisdiction. new text end

new text begin A social media platform
business that has paid tax under this section may claim a credit against the tax paid with
respect to a Minnesota consumer if another state imposes an excise tax identical to the tax
imposed under this section with respect to the same consumer.
new text end

new text begin Subd. 6. new text end

new text begin Record keeping. new text end

new text begin A social media platform business must maintain records
necessary to demonstrate compliance with this section or as required by the commissioner.
new text end

new text begin Subd. 7. new text end

new text begin Administration. new text end

new text begin Unless specifically provided otherwise, the audit, assessment,
refund, penalty, interest, criminal penalty, enforcement, collection remedy, appeal, and
administrative provisions of chapters 270C and 289A that are applicable to taxes imposed
under chapter 297A apply to the tax imposed under this section.
new text end

new text begin Subd. 8. new text end

new text begin Returns; payment of tax. new text end

new text begin (a) On or before the 20th of the month following
the month that tax liability is incurred under subdivision 2, a social media platform business
must report the tax on a return prescribed by the commissioner and must remit the tax in a
form and manner prescribed by the commissioner.
new text end

new text begin (b) A social media platform business that owes tax imposed under this section must file
a return in subsequent months until it reports no tax liability for 12 consecutive months.
new text end

new text begin (c) Interest must be paid on an overpayment refunded or credited to the taxpayer from
the date of payment of the tax until the date the refund is paid or credited. For purposes of
this subdivision, the date of payment is the due date of the return or the date of actual
payment of the tax, whichever is later.
new text end

new text begin Subd. 9. new text end

new text begin Deposit of revenues. new text end

new text begin The commissioner must deposit the revenues, including
penalties and interest, derived from the tax imposed under this section to the general fund.
new text end

new text begin Subd. 10. new text end

new text begin Personal debt. new text end

new text begin The tax imposed under this section, and interest and penalties
imposed with respect to the tax, are a personal debt of the person required to file a return
from the time that the liability for the tax arises, irrespective of when the time for payment
of the liability occurs. The debt must, in the case of the executor or administrator of the
estate of a decedent and in the case of a fiduciary, be that of the person in the person's official
or fiduciary capacity only, unless the person has voluntarily distributed the assets held in
that capacity without reserving sufficient assets to pay the tax, interest, and penalties, in
which event the person is personally liable for any deficiency.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for consumer data collected after
December 31, 2026.
new text end

Sec. 2.

Minnesota Statutes 2024, section 297A.994, subdivision 4, is amended to read:

Subd. 4.

General fund allocations.

deleted text begin (a) deleted text end The commissioner must retain and deposit to
the general fund the following amounts, as required by subdivision 3, clause (3):

(1) for state bond debt service support beginning in calendar year 2021, and for each
calendar year thereafter through calendar year 2046, periodic amounts so that not later than
December 31, 2046, an aggregate amount equal to a present value of $150,000,000 has been
deposited in the general fund. To determine aggregate present value, the commissioner must
consult with the commissioner of management and budget regarding the present value dates,
discount rate or rates, and schedules of annual amounts. The present value date or dates
must be based on the date or dates bonds are sold under Minnesota Statutes 2022, section
16A.965, or the date or dates other state funds, if any, are deposited into the construction
fund. The discount rate or rates must be based on the true interest cost of the bonds issued
under Minnesota Statutes 2022, section 16A.965, or an equivalent 30-year bond index, as
determined by the commissioner of management and budget. The schedule of annual amounts
must be certified to the commissioner by the commissioner of management and budget and
the finance officer of the city;

(2) for the capital improvement reserve appropriation to the Minnesota Sports Facilities
Authority beginning in calendar year 2021, and for each calendar year thereafter through
calendar year 2046, an aggregate annual amount equal to the amount paid by the state for
this purpose in that calendar year under section 473J.13, subdivision 4;

(3) for the operating expense appropriation to the Minnesota Sports Facilities Authority
beginning in calendar year 2021, and for each calendar year thereafter through calendar
year 2046, an aggregate annual amount equal to the amount paid by the state for this purpose
in that calendar year under section 473J.13, subdivision 2;

deleted text begin (4) to capture increases in taxes imposed under the special law, for the benefit of the
Minnesota Sports Facilities Authority, beginning in calendar year 2013 and for each calendar
year thereafter through 2046, there shall be deposited to the general fund in proportionate
periodic payments in the following year, an amount equal to the lesser of:
deleted text end

deleted text begin (i)(A) 50 percent of the difference, if any, by which the amount of the net annual taxes
for the previous year exceeds the sum of the net actual taxes in calendar year 2011 plus
$1,000,000, inflated at two percent per year since 2011, minus
deleted text end

deleted text begin (B) 25 percent of the difference, if any, by which the amount of the net annual taxes for
the preceding year exceeds the sum of the net actual taxes in calendar year 2011 plus
$3,000,000, inflated at two percent per year since 2011; or
deleted text end

deleted text begin (ii) the amount of the net annual taxes for the preceding year multiplied by three percent; deleted text end
and

deleted text begin (5) deleted text end new text begin (4) new text end if the bonds under new text begin Minnesota Statutes 2022, new text end section 16A.965 new text begin , new text end are defeased,
redeemed, or paid in full, the commissioner of management and budget and finance officer
of the city must agree to a revised schedule of annual amounts under clause (1). The revised
schedule of annual amounts must factor in a discount rate equal to zero percent and otherwise
consistent with the methodology previously agreed upon by the parties.

deleted text begin (b) The Minnesota Sports Facility Authority must use the amounts available from the
deposits under paragraph (a), clause (4), for capital repairs, replacements, and improvements
for the stadium and stadium infrastructure.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2024, section 297H.01, subdivision 2, is amended to read:

Subd. 2.

Commercial generator.

"Commercial generator" means any of the following:

(1) an owner or operator of a business, including a home-operated business, industry,
church, nursing home, nonprofit organization new text begin that does not meet the criteria in subdivision
8, clause (4) new text end , school, or any other commercial or institutional enterprise that generates mixed
municipal solid waste or nonmixed municipal solid waste; or

(2) any other generator of taxable waste that is not a residential generator defined in
subdivision 8. A commercial generator does not include a self-hauler.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for waste management services received
after June 30, 2026.
new text end

Sec. 4.

Minnesota Statutes 2024, section 297H.01, subdivision 8, is amended to read:

Subd. 8.

Residential generator.

"Residential generator" means any of the following:

(1) a detached single family residence that generates mixed municipal solid waste or
nonmixed municipal solid waste;

(2) a person residing in a building or site containing multiple residences that generates
mixed municipal solid waste, including apartment buildings, common interest communities,
or manufactured home parks, where each residence is separately billed by the waste service
provider;

(3) an owner of a building or site containing multiple residences or an association
representing residences that generate mixed municipal solid waste or nonmixed municipal
solid waste, including apartment buildings, condominiums, manufactured home parks, or
townhomes where no residence is separately billed for such service by the waste management
service provider and the owner or association is billed directly for the waste management
services. A residential generator does not include a self-hauler deleted text begin . deleted text end new text begin ; or
new text end

new text begin (4) an organization exempt under section 501(c)(3) of the Internal Revenue Code whose
primary mission is to receive donations for resale that receives donations for resale from a
person or an entity listed in clauses (1) to (3).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for waste management services received
by a residential generator after June 30, 2026.
new text end

Sec. 5.

Minnesota Statutes 2024, section 428B.02, subdivision 4, is amended to read:

Subd. 4.

Service charges; relationship to services.

(a) A municipality may impose a
service charge on a business pursuant to this chapter for the purpose of providing activities
and improvements that will provide benefits to a business that is located within the tourism
improvement district and subject to the tourism improvement district service charge. Each
business paying a service charge within a district must benefit directly or indirectly from
improvements provided by a tourism improvement association, provided, however, the
business need not benefit equally. Service charges must be based on a percent of gross
business revenue, a fixed dollar amount per transaction, or any other reasonable method
based upon benefit and approved by the municipality. new text begin A business may, but is not required
to, collect the service charge imposed by this section from the purchaser. If separately stated
on the invoice, bill of sale, or similar document given to the purchaser, the service charge
is excluded from the sales price for purposes of the tax imposed under chapter 297A.
new text end

(b) Service charges may be used to cover the costs of collections, as well as other
administrative costs associated with operating, forming, or maintaining the district.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after June 30, 2025.
new text end

Sec. 6.

Laws 2023, chapter 64, article 5, section 25, subdivision 1, is amended to read:

Subdivision 1.

Exemption; refund.

(a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of a new water treatment plant new text begin and trunk water main improvements new text end in the
city of Ramsey are exempt from sales and use tax under Minnesota Statutes, chapter 297A,
provided that the materials, supplies, and equipment are purchased after December 31, 2022,
and before July 1, 2027.

(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, deleted text begin subdivision deleted text end new text begin subdivisions new text end 1 new text begin and 1a new text end , applied and then refunded in the same manner
provided for projects under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
Refunds for eligible purchases must not be issued until after June 30, 2023 deleted text begin , and before July
1, 2027 deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after December 31, 2022, and before July 1, 2027.
new text end

Sec. 7. new text begin BROWERVILLE PUBLIC SCHOOLS; SALES TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the following projects in Independent School District No. 787,
Browerville Public Schools, are exempt from sales and use tax imposed under Minnesota
Statutes, chapter 297A, if the materials, supplies, and equipment are purchased after
December 1, 2023, and before January 1, 2026:
new text end

new text begin (1) renovations to the prekindergarten through grade 12 school building; and
new text end

new text begin (2) construction of a new gymnasium, classrooms, locker rooms, a wrestling and weight
room, offices, and a stage.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivisions 1 and 1a, applied and then refunded in the same manner provided
for projects under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin The amount required to pay the refunds under subdivision 1
is appropriated from the general fund to the commissioner of revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after December 1, 2023, and before January 1, 2026.
new text end

Sec. 8. new text begin CITY OF WOODBURY; SALES AND USE TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of a water treatment facility and water tower, including water pipeline
infrastructure and associated improvements funded by the city of Woodbury are exempt
from sales and use tax under Minnesota Statutes, chapter 297A, provided that the materials,
supplies, and equipment are purchased after January 31, 2024, and before December 1,
2028.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivisions 1 and 1a, applied and then refunded in the same manner provided
for projects under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin The amount required to pay the refunds under subdivision 1
is appropriated from the general fund to the commissioner of revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after January 31, 2024, and before December 1, 2028.
new text end

ARTICLE 5

LOCAL SALES AND USE AND SPECIAL TAXES

Section 1.

Laws 1986, chapter 400, section 44, as amended by Laws 1995, chapter 264,
article 2, section 39, and Laws 2009, chapter 88, article 4, section 13, is amended to read:

Sec. 44. DOWNTOWN TAXING AREA.

If a bill is enacted into law in the 1986 legislative session which authorizes the city of
Minneapolis to issue bonds and expend certain funds including taxes to finance the
acquisition and betterment of a convention center and related facilities, which authorizes
certain taxes to be levied in a downtown taxing area, then, notwithstanding the provisions
of that law "downtown taxing area" shall mean the geographic area bounded by the portion
of the Mississippi River between I-35W and Washington Avenue, the portion of Washington
Avenue between the river and I-35W, the portion of I-35W between Washington Avenue
and 8th Street South, the portion of 8th Street South between I-35W and Portland Avenue
South, the portion of Portland Avenue South between 8th Street South and I-94, the portion
of I-94 from the intersection of Portland Avenue South to the intersection of I-94 and deleted text begin the
Burlington Northern Railroad tracks deleted text end new text begin Plymouth Avenue North new text end , the portion of deleted text begin the Burlington
Northern Railroad tracks deleted text end new text begin Plymouth Avenue North new text end from I-94 to deleted text begin Main Street deleted text end new text begin the Mississippi
River, from Plymouth Avenue North and the Mississippi River south to the Burlington
Northern Railroad tracks new text end and including Nicollet Island, and the portion of Main Street new text begin from
Burlington Northern Railroad tracks new text end to Hennepin Avenue and the portion of Hennepin
Avenue between Main Street and 2nd Street S.E., and the portion of 2nd Street S.E. between
Main Street and Bank Street, and the portion of Bank Street between 2nd Street S.E. and
University Avenue S.E., and the portion of University Avenue S.E. between Bank Street
and I-35W, and by I-35W from University Avenue S.E., to the river. The downtown taxing
area excludes the area bounded on the south and west by Oak Grove Street, on the east by
Spruce Place, and on the north by West 15th Street. The downtown taxing area also excludes
any property located in a zone that is contained in chapter 546 of the Minneapolis Zoning
Code of Ordinances on which a restaurant with a wine license is operated.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
September 30, 2026.
new text end

Sec. 2.

Laws 1993, chapter 375, article 9, section 46, subdivision 2, as amended by Laws
1997, chapter 231, article 7, section 40, Laws 1998, chapter 389, article 8, section 30, Laws
2003, First Special Session chapter 21, article 8, section 13, Laws 2005, First Special Session
chapter 3, article 5, section 26, Laws 2009, chapter 88, article 4, section 15, and Laws 2013,
chapter 143, article 8, section 44, is amended to read:

Subd. 2.

Use of revenues.

Revenues received from the tax authorized by subdivision 1
may only be used by the city to pay the cost of collecting the tax, and, except as provided
in paragraph (e), to pay for the following projects or to secure or pay any principal, premium,
or interest on bonds issued in accordance with subdivision 3 for the following projects.

(a) To pay all or a portion of the capital expenses of construction, equipment and
acquisition costs for the expansion and remodeling of the St. Paul Civic Center complex,
including the deleted text begin demolition of the existing arena and the deleted text end construction new text begin , renovation, betterment, new text end
and equipping of deleted text begin a new deleted text end new text begin the existing new text end arena.

(b) Except as provided in paragraphs (e) and (f), the remainder of the funds must be
spent for:

(1) capital projects to further residential, cultural, commercial, and economic development
in both downtown St. Paul and St. Paul neighborhoods; and

(2) capital and operating expenses of cultural organizations in the city, provided that the
amount spent under this clause must equal ten percent of the total amount spent under this
paragraph in any year.

(c) The amount apportioned under paragraph (b) shall be no less than 60 percent of the
revenues derived from the tax each year, except to the extent that a portion of that amount
is required to pay debt service on (1) bonds issued for the purposes of paragraph (a) prior
to March 1, 1998; or (2) bonds issued for the purposes of paragraph (a) after March 1, 1998,
but only if the city council determines that 40 percent of the revenues derived from the tax
together with other revenues pledged to the payment of the bonds, including the proceeds
of definitive bonds, is expected to exceed the annual debt service on the bonds.

(d) If in any year more than 40 percent of the revenue derived from the tax authorized
by subdivision 1 is used to pay debt service on the bonds issued for the purposes of paragraph
(a) and to fund a reserve for the bonds, the amount of the debt service payment that exceeds
40 percent of the revenue must be determined for that year. In any year when 40 percent of
the revenue produced by the sales tax exceeds the amount required to pay debt service on
the bonds and to fund a reserve for the bonds under paragraph (a), the amount of the excess
must be made available for capital projects to further residential, cultural, commercial, and
economic development in the neighborhoods and downtown until the cumulative amounts
determined for all years under the preceding sentence have been made available under this
sentence. The amount made available as reimbursement in the preceding sentence is not
included in the 60 percent determined under paragraph (c).

(e) If the amount necessary to meet obligations under paragraphs (a) and (d) are less
than 40 percent of the revenue from the tax in any year, the city may place the difference
between 40 percent of the revenue and the amounts allocated under paragraphs (a) and (d)
in an economic development fund to be used for any economic development purposes.

(f) deleted text begin By January 15 of each year deleted text end new text begin Beginning January 15, 2027, and every other year
thereafter new text end , the mayor and the city council must report to the deleted text begin legislature deleted text end new text begin chairs and ranking
minority members of the legislative committees with jurisdiction over taxes new text end on the use of
sales tax revenues during the preceding one-year period.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of St. Paul and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 3.

Laws 1993, chapter 375, article 9, section 46, subdivision 2b, as added by Laws
2023, chapter 64, article 10, section 3, is amended to read:

Subd. 2b.

Use of revenues.

(a) The revenues derived from the tax authorized under
subdivision 1a must be used by the city of St. Paul to pay the costs of collecting and
administering the tax and to finance all or part of the following projects in the city, including
securing and paying debt service on bonds issued under subdivision 3a:

(1) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraphs (a),
clause (2), and (d), $738,000,000, plus associated bonding costs for improvements to:

(i) streets; and

(ii) bridges; and

(2) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, deleted text begin paragraph deleted text end new text begin
paragraphs (a), clause (2), (c), and new text end (d), $246,000,000, plus associated bonding costs for
capital improvements to St. Paul parks and recreation facilities.

(b) The city must adopt an amended resolution authorizing use of the revenues from the
tax authorized under subdivision 1a for the use listed in paragraph (a), clause (1), item (ii).
The city must submit the resolution to the state auditor no later than August 31 of the year
the city presents the tax for voter approval as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). The question to approve the tax as required under
Minnesota Statutes, section 297A.99, subdivision 3, paragraph (a), must indicate the purposes
for which the revenues must be used as included in the amended resolution.

(c) If the city does not adopt and submit the amended resolution under paragraph (b),
the question presented to the voters under Minnesota Statutes, section 297A.99, subdivision
3, paragraph (a), must not include, and revenues from the tax authorized under subdivision
1a must not be used for, the purpose specified in paragraph (a), clause (1), item (ii).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from May 24, 2023, without
local approval, pursuant to Minnesota Statutes, section 645.023, subdivision 1.
new text end

Sec. 4.

Laws 1993, chapter 375, article 9, section 46, subdivision 3, as amended by Laws
1998, chapter 389, article 8, section 31, and Laws 2005, First Special Session chapter 3,
article 5, section 27, is amended to read:

Subd. 3.

Bonds.

The city may issue general obligation bonds or special revenue bonds
to finance all or a portion of the cost for projects authorized in subdivision 2, paragraph (a)
or (b). The debt represented by the bonds shall not be included in computing any debt
limitations applicable to the city. The bonds may be paid from or secured by any funds
available to the city, including the tax authorized under subdivision 1, any revenues derived
from the project, tax increments from the tax increment district that includes the project,
and revenue from any lodging tax imposed under Laws 1982, chapter 523, article 25, section
1. The bonds may be issued in one or more series and sold without election on the question
of issuance of the bonds or a property tax to pay them. Except as otherwise provided in this
section, the bonds must be issued, sold, and secured in the manner provided in Minnesota
Statutes, chapter 475. The aggregate principal amount of bonds issued under this subdivision
for projects authorized in subdivision 2, paragraph (a), may not exceed deleted text begin $65 million deleted text end new text begin
$275,000,000 new text end , provided that the city may issue additional bonds under this subdivision for
projects authorized in subdivision 2, paragraph (a), as long as the total principal amount of
the additional bonds together with the outstanding principal amount of the bonds previously
issued under this subdivision for projects authorized in subdivision 2, paragraph (a), does
not exceed deleted text begin $130 million deleted text end new text begin $325,000,000 new text end . The bonds authorized by this subdivision shall not
be included in local general obligation debt as defined in Laws 1971, chapter 773, as
amended, including Laws 1992, chapter 511, and shall not affect the amount of capital
improvement bonds authorized to be issued by the city of St. Paul. Bonds to pay for projects
authorized in subdivision 2, paragraph (b), may be issued if the city council first determines
that 20 percent of the revenues derived from the tax authorized under section 1 together
with other revenues pledged to payment of the bonds, including the proceeds of definitive
bonds, is expected to exceed the annual debt service on the bonds.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of St. Paul and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 5.

Laws 1993, chapter 375, article 9, section 46, subdivision 5, as amended by Laws
1998, chapter 389, article 8, section 32, Laws 2013, chapter 143, article 8, section 45, and
Laws 2023, chapter 64, article 10, section 5, is amended to read:

Subd. 5.

Expiration of taxing authority.

(a) The authority granted by subdivision 1 to
the city to impose a sales tax shall expire on December 31, deleted text begin 2042 deleted text end new text begin 2061 new text end , or at an earlier time
as the city shall, by ordinance, determine. Any funds remaining after completion of projects
approved under subdivision 2, paragraph (a) and retirement or redemption of any bonds or
other obligations may be placed in the general fund of the city.

(b) The tax imposed under subdivision 1a expires at the earlier of (1) 20 years after the
tax is first imposed, or (2) when the city council determines that the amount of revenues
received from the tax is sufficient to pay for the project costs authorized under subdivision
2b for projects approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of the bonds under subdivision 3a, including interest on the bonds. Except as otherwise
provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds
remaining after payment of the allowed costs due to the timing of the termination of the tax
under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general
fund of the city. The tax imposed under subdivision 1a may expire at an earlier time if the
city so determines by ordinance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of St. Paul and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 6.

Laws 1996, chapter 471, article 2, section 30, subdivision 5, as amended by Laws
2009, chapter 88, article 4, section 17, is amended to read:

Subd. 5.

Expiration of taxing authority.

The tax imposed under subdivision 1 expires
deleted text begin 30 years after it first becomes effective deleted text end new text begin on July 1, 2056 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Little Falls and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 7.

Laws 1998, chapter 389, article 8, section 36, is amended to read:

Sec. 36. CITY OF ST. PAUL; USE OF SALES TAX REVENUES.

The revenue derived from the sales tax imposed by the city of St. Paul under Laws 1993,
chapter 375, article 9, section 46, as amended by Laws 1997, chapter 231, article 7, section
40, that is distributed to the city's cultural STAR program must be awarded through a grant
or loan review process as provided in this section. Eighty percent of the revenue new text begin collected
annually new text end must be deleted text begin annually deleted text end awarded to nonprofit arts organizations, libraries, and museums
that are located in the designated cultural district of downtown St. Paul, and the remaining
20 percent may be awarded to businesses in the cultural district for projects which enhance
visitor enjoyment of the district, or to nonprofit arts organizations, libraries, and museums
located in St. Paul but outside of the cultural district. Grants or loans may be used for capital
improvements. The restrictions in this section apply to all STAR cultural funds expended
for projects approved after June 30, 1998.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of St. Paul and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 8.

Laws 1998, chapter 389, article 8, section 37, subdivision 2, as amended by Laws
2002, chapter 377, article 3, section 21, is amended to read:

Subd. 2.

Appointment of members.

deleted text begin The citizen review panel consists of three residents
from each of the seven city council wards, for a total of 21 members. deleted text end The mayor must
appoint the members, and the appointments are subject to confirmation by a majority vote
of the city council. Members serve for a term of four years. Elected officials and employees
of the city are ineligible to serve as members of the panel.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of St. Paul and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 9.

Laws 2005, First Special Session chapter 3, article 5, section 38, as amended by
Laws 2006, chapter 259, article 3, section 6, Laws 2014, chapter 308, article 3, section 23,
and Laws 2017, First Special Session chapter 1, article 5, sections 12 and 13, is amended
by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Authorization; extension. new text end

new text begin Notwithstanding Minnesota Statutes, section
477A.016, or any other law, ordinance, or city charter, and if approved by the voters at an
election as required under Minnesota Statutes, section 297A.99, subdivision 3, the city of
Albert Lea may extend the sales and use tax of one-half percent authorized under subdivision
1 for the purposes specified in subdivision 2a. Except as otherwise provided in this section,
the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision. The tax imposed
under this subdivision is in addition to any local sales and use tax imposed under any other
special law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Albert Lea and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 10.

Laws 2005, First Special Session chapter 3, article 5, section 38, as amended by
Laws 2006, chapter 259, article 3, section 6, Laws 2014, chapter 308, article 3, section 23,
and Laws 2017, First Special Session chapter 1, article 5, sections 12 and 13, is amended
by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Use of revenues; additional projects. new text end

new text begin The revenues derived from the tax
authorized under subdivision 1a must be used by the city to pay the costs of collecting and
administering the tax and paying for the following projects in the city, plus associated costs
related to the issuance of bonds used to finance all or part of the following projects:
new text end

new text begin (1) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
$20,000,000 for water quality improvements for the Shell Rock Watershed District;
new text end

new text begin (2) $9,300,000 for the expansion, improvement, and equipping of the Songbird Trail;
new text end

new text begin (3) $4,500,000 for the expansion, improvement, and equipping of the Albert Lea Public
Library;
new text end

new text begin (4) $4,700,000 for the Snyder Field Complex, including the expansion, improvement,
and equipping of the Snyder Field Recreation Area; and
new text end

new text begin (5) $1,500,000 for acquisition, construction, improvement, and equipping of Miracle
Field at Edgewater Park.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Albert Lea and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 11.

Laws 2005, First Special Session chapter 3, article 5, section 38, as amended by
Laws 2006, chapter 259, article 3, section 6, Laws 2014, chapter 308, article 3, section 23,
and Laws 2017, First Special Session chapter 1, article 5, sections 12 and 13, is amended
by adding a subdivision to read:

new text begin Subd. 3a. new text end

new text begin Bonding authority. new text end

new text begin (a) The city may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the projects authorized in subdivision
2a and approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this
subdivision may not exceed $40,000,000, plus an amount applied to the payment of the
costs of issuing the bonds. The bonds may be paid from or secured by any money available
to the city, including the tax authorized under subdivision 1a. The issuance of bonds under
this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Albert Lea and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 12.

Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 4,
as amended by Laws 2014, chapter 308, article 3, section 23, and Laws 2017, First Special
Session chapter 1, article 5, section 13, is amended to read:

Subd. 4.

Termination of taxes.

new text begin (a) new text end The taxes imposed under deleted text begin this section deleted text end new text begin subdivision 1 new text end
expire at the earlier of (1) 30 years after the taxes are first imposed, or (2) when the city
council first determines that the amount of revenues raised to pay for the projects under
subdivision 2, shall meet or exceed the sum of $30,000,000. Any funds remaining after
completion of the projects may be placed in the general fund of the city.

new text begin (b) The tax imposed under subdivision 1a expires at the earlier of (1) 30 years after the
tax is first imposed, or (2) when the city council determines that the amount of revenues
received from the tax is sufficient to pay for the project costs authorized under subdivision
2a for projects approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of the bonds under subdivision 3a, including interest on the bonds. Except as otherwise
provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any money
remaining after payment of the allowed costs due to the timing of the termination of the tax
under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general
fund of the city. The tax imposed under subdivision 1a may expire at an earlier time if the
city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Albert Lea and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 13.

Laws 2006, chapter 259, article 3, section 9, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Authorization; extension. new text end

new text begin Notwithstanding Minnesota Statutes, section
477A.016, or any other law, ordinance, or city charter, and if approved by the voters at an
election as required under Minnesota Statutes, section 297A.99, subdivision 3, the city of
Austin may extend the sales and use tax of one-half percent authorized under subdivision
1 for the purpose specified in subdivision 2a. Except as otherwise provided in this section,
the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision. The tax authorized
under this subdivision is in addition to any local sales and use tax imposed under any other
special law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Austin and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 14.

Laws 2006, chapter 259, article 3, section 9, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivisions 2, paragraph (d), and 3, paragraph (b), the revenues derived
from the extension of the tax authorized under subdivision 1a must be used by the city to
pay the costs of collecting and administering the tax, and to finance up to $28,000,000, plus
associated bonding costs, for the following, in connection with a law enforcement center:
(1) the previous purchase of land; (2) utility, site work, and design services; and (3)
construction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Austin and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 15.

Laws 2006, chapter 259, article 3, section 9, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Bonds; additional use and extension of tax. new text end

new text begin (a) After payment of the bonds
authorized under subdivision 3, the city may issue bonds under Minnesota Statutes, chapter
475, to finance the costs of the facility authorized in subdivision 2a. The aggregate principal
amount of bonds issued under this subdivision may not exceed $28,000,000 for the project
listed in subdivision 2a, plus an amount to be applied to the payment of the costs of issuing
the bonds. The bonds may be paid from or secured by any money available to the city,
including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city,
and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Austin and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 16.

Laws 2006, chapter 259, article 3, section 9, subdivision 4, is amended to read:

Subd. 4.

Termination of tax.

new text begin (a) new text end The tax authorized under subdivision 1 terminates at
the earlier of:

(1) 20 years after the date of initial imposition of the tax; or

(2) when the Austin City Council determines that the amount described in subdivision
2 has been received from the tax to finance the capital and administrative costs for the
projects specified in subdivision 2, and to repay or retire at maturity, the principal, interest,
and premium due on any bonds issued for the projects under subdivision 3.

Any funds remaining after completion of the projects specified in subdivision 2, and
retirement or redemption of the bonds in subdivision 3, may be placed in the general fund
of the city. The tax imposed under subdivision 1 may expire at an earlier time if the city so
determines by ordinance.

new text begin (b) The tax extended under subdivision 1a expires at the earlier of: (1) 20 years after the
tax is first imposed; or (2) when the city determines that the amount received from the tax
is sufficient to pay for the project costs authorized under subdivision 2a, plus an amount
sufficient to pay the costs related to issuance of any bonds authorized under subdivision 3,
including interest on the bonds. Except as otherwise provided in Minnesota Statutes, section
297A.99, subdivision 3, paragraph (f), any money remaining after payment of the allowed
costs due to the timing of the termination of the tax under Minnesota Statutes, section
297A.99, subdivision 12, must be placed in the general fund of the city. The tax imposed
under subdivision 1 may expire at an earlier time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Austin and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 17.

Laws 2006, chapter 259, article 3, section 10, subdivision 3, as amended by Laws
2014, chapter 308, article 3, section 24, is amended to read:

Subd. 3.

Use of revenues.

(a) Revenues received from the taxes authorized by
subdivisions 1 and 2 must be used to pay the cost of collecting and administering the tax
and to finance the acquisition and betterment of water and wastewater facilities to serve the
cities of Brainerd and Baxter, building and equipping a fire substation, as approved by the
voters at the referendum authorizing the tax. Authorized costs include, but are not limited
to, acquiring property and paying construction and engineering costs related to the projects.

(b) In addition to the projects authorized in paragraph (a), the city of Baxter may, if
approved by the voters at an election under subdivision 5, paragraph (b), allocate up to an
additional $40,000,000 of the revenues received from the taxes authorized by subdivisions
1 and 2 to a capital infrastructure fund. Money from this fund may only be used to finance
(1) sanitary sewer, storm sewer, and water projects, (2) transportation safety improvements,
and (3) improvements to the Brainerd Lakes Area Airport.

new text begin (c) In addition to the projects authorized in paragraphs (a) and (b), the city of Baxter
may, if approved by the voters at an election as required under Minnesota Statutes, section
297A.99, subdivision 3, allocate the revenues received from the taxes authorized by
subdivisions 1 and 2 to pay for projects in the city, including the costs of collecting and
administering the tax and securing and paying debt service on bonds issued to finance all
or part of the following projects, including property acquisition:
new text end

new text begin (1) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraphs (a),
clauses (4) and (5), and (d), $67,000,000 for upgrades and improvements to the water and
wastewater utility systems; and
new text end

new text begin (2) $10,000,000 for construction of a new public safety facility.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Baxter and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 18.

Laws 2006, chapter 259, article 3, section 10, subdivision 4, as amended by Laws
2014, chapter 308, article 3, section 25, is amended to read:

Subd. 4.

Bonds.

(a) The city of Baxter, pursuant to the approval of the voters at the
November 2, 2004, referendum authorizing the imposition of the taxes in this section, may
issue general obligation bonds of the city, in one or more series, in the aggregate principal
amount not to exceed $15,000,000 to finance the projects listed in subdivision 3, paragraph
(a). The debt represented by the bonds is not included in computing any debt limitations
applicable to the city, and the levy of taxes required by Minnesota Statutes, section 475.61,
to pay the principal of and interest on the bonds is not subject to any levy limitation or
included in computing or applying any levy limitation applicable to the city of Baxter.

(b) The city of Baxter, pursuant to the approval of the voters at the 2014 general election
to extend the tax under this section, may issue general obligation bonds of the city, in one
or more series, in the aggregate principal amount not to exceed (1) $32,000,000 plus an
amount equal to the costs of issuance of the bonds to finance the projects listed in subdivision
3, paragraph (b), clauses (1) and (2), and (2) $8,000,000 plus an amount equal to the costs
of the issuance of the bonds to finance the project listed in subdivision 3, paragraph (b),
clause (3). The debt represented by the bonds is not included in computing any debt
limitations applicable to the city, and the levy of taxes required by Minnesota Statutes,
section 475.61, to pay the principal of and interest on the bonds is not subject to any levy
limitation or included in computing or applying any levy limitation applicable to the city
of Baxter.

new text begin (c) The city of Baxter may issue bonds under Minnesota Statutes, chapter 475, to finance
all or a portion of the costs of the projects authorized in subdivision 3, paragraph (c), and
approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision
3, paragraph (a). The aggregate principal amount of bonds issued for this purpose must not
exceed $77,000,000, plus an amount applied to the payment of costs of issuing the bonds.
The bonds may be issued as general obligations of the city and may be paid from or secured
by any funds available to the city, including the tax authorized under subdivision 1. The
issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60
and 275.61. The bonds are not included in computing any debt limitation applicable to the
city. Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and
interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Baxter and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 19.

Laws 2006, chapter 259, article 3, section 10, subdivision 5, as amended by Laws
2014, chapter 308, article 3, section 26, is amended to read:

Subd. 5.

Termination of taxes.

(a) The taxes imposed under subdivisions 1 and 2 expire
at the earlier of a date 12 years after the imposition of the tax or when the Baxter City
Council first determines that the amount of revenues raised from the taxes to pay for the
projects under subdivision 3 equals or exceeds $15,000,000 plus any interest on bonds
issued for the projects under subdivision 4, paragraph (a). Any funds remaining after the
expiration of the taxes and retirement of the bonds shall be placed in a capital project fund
of the city of Baxter. The taxes imposed under subdivisions 1 and 2 may expire at an earlier
time if the city of Baxter so determines by ordinance.

(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other
contrary provision of law, ordinance, or city charter, the city of Baxter may, by ordinance,
extend the taxes authorized under subdivisions 1 and 2 beyond the termination date in
paragraph (a) if approved by the voters of the city at a general election held in 2014. The
question put to the voters must indicate that an affirmative vote would extend the imposition
of the taxes through 2037 or until an additional $40,000,000, plus an amount equal to interest
and issuance costs associated with bonds issued under subdivision 4, paragraph (b), above
the initial amount authorized to pay for $15,000,000 in bonds and associated bond cost and
projects, listed in subdivision 3, paragraph (a), is raised. If extended under this paragraph,
the taxes authorized in subdivisions 1 and 2 will terminate at the earlier of (1) when an
additional $40,000,000, plus an amount equal to interest and issuance costs associated with
bonds issued under subdivision 4, paragraph (b), above the amount authorized under
paragraph (a), is raised, or (2) December 31, 2037.

new text begin (c) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, ordinance,
or city charter, the city of Baxter may, by ordinance, extend the taxes authorized under
subdivisions 1 and 2 beyond the termination date in paragraph (a) if approved by the voters
as required under Minnesota Statutes, section 297A.99, subdivision 3, paragraphs (a) and
(b). If extended under this paragraph, the taxes authorized in subdivisions 1 and 2 will
terminate at the earlier of: (1) when an additional $77,000,000, plus an amount equal to
interest and issuance costs associated with bonds issued under subdivision 4, paragraph (c),
above the amount authorized under paragraphs (a) and (b), is raised; or (2) 20 years after
the tax is extended.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Baxter and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 20.

Laws 2019, First Special Session chapter 6, article 6, section 17, subdivision 1,
is amended to read:

Subdivision 1.

Sales and use tax authorization.

new text begin (a) new text end Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, or 477A.016, or any other law or ordinance, and as approved
by the voters at the November 6, 2018, general election, the city of Elk River may impose,
by ordinance, a sales and use tax of one-half of one percent for the purposes specified in
subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota
Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement
of the tax authorized under this subdivision.

new text begin (b) If approved by the voters at a general election pursuant to Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a), the city must use the revenues derived from the tax
authorized under paragraph (a) for the purpose specified in subdivision 2a.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Elk River and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 21.

Laws 2019, First Special Session chapter 6, article 6, section 17, is amended by
adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Use of revenues. new text end

new text begin In addition to the uses authorized under subdivision 2, the
revenues derived from the tax authorized under subdivision 1 must be used by the city of
Elk River to finance up to $20,000,000, plus associated bonding costs, for bonds issued
under subdivision 3 for construction of a new fire station. The project authorized under this
subdivision does not extend the termination requirements in subdivision 4.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Elk River and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 22.

Laws 2019, First Special Session chapter 6, article 6, section 17, subdivision 3,
is amended to read:

Subd. 3.

Bonding authority.

(a) The city of Elk River may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the deleted text begin project deleted text end new text begin projects new text end authorized
in deleted text begin subdivision deleted text end new text begin subdivisions new text end 2 new text begin and 2a new text end . The aggregate principal amount of bonds issued under
this subdivision may not exceed deleted text begin $35,000,000 deleted text end new text begin $55,000,000 new text end , plus an amount applied to the
payment of costs of issuing the bonds. The bonds may be paid from or secured by any funds
available to the city of Elk River, including the tax authorized under subdivision 1. The
issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60
and 275.61.

(b) The bonds are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Elk River and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 23.

Laws 2019, First Special Session chapter 6, article 6, section 17, subdivision 4,
is amended to read:

Subd. 4.

Termination of taxes.

The tax imposed under subdivision 1 expires at the
earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines
that the city has received deleted text begin $35,000,000 deleted text end new text begin $55,000,000 new text end from this tax to fund the projects listed
in deleted text begin subdivision deleted text end new text begin subdivisions new text end 2 new text begin and 2a new text end plus an amount sufficient to pay costs, including interest
costs, related to the issuance of the bonds authorized in subdivision 3. Any funds remaining
after payment of the allowed costs due to timing of the termination under section 297A.99
shall be placed in the city's general fund. The tax imposed under subdivision 1 may expire
at an earlier time if the city so determines by ordinance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Elk River and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 24.

Laws 2019, First Special Session chapter 6, article 6, section 28, is amended by
adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Sales and use tax authorization; modification and voter
approval. new text end

new text begin Notwithstanding Minnesota Statutes, section 477A.016, or any other law,
ordinance, or city charter, the modifications to bonding authority in subdivision 3 and the
amount of tax that may be collected before the termination of taxes in subdivision 4 are
effective if approved by the voters at an election as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Sauk Centre and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 25.

Laws 2019, First Special Session chapter 6, article 6, section 28, subdivision 3,
is amended to read:

Subd. 3.

Bonding authority.

(a) The city may issue bonds under Minnesota Statutes,
chapter 475, to pay the costs of the projects authorized in subdivision 2. The aggregate
principal amount of bonds issued under this subdivision may not exceed deleted text begin $10,000,000 deleted text end new text begin
$15,000,000 new text end plus an amount to be applied to the payment of the costs of issuing the bonds.
The bonds may be paid from or secured by any funds available to the city, including the
tax authorized under subdivision 1. The issuance of bonds under this subdivision is not
subject to Minnesota Statutes, sections 275.60 and 275.61.

(b) The bonds are not included in computing any debt limitation applicable to the city,
and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Sauk Centre and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 26.

Laws 2019, First Special Session chapter 6, article 6, section 28, subdivision 4,
is amended to read:

Subd. 4.

Termination of taxes.

The tax imposed under subdivision 1 expires at the
earlier of: (1) December 31, 2045; or (2) when the city council determines that deleted text begin $10,000,000 deleted text end new text begin
$15,000,000 new text end has been received from the tax to pay for the cost of the projects authorized
under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the
bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
after payment of all such costs and retirement or redemption of the bonds shall be placed
in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier
time if the city so determines by ordinance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Sauk Centre and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 27.

Laws 2021, First Special Session chapter 14, article 8, section 5, subdivision 2,
as amended by Laws 2023, chapter 64, article 10, section 17, is amended to read:

Subd. 2.

Use of sales and use tax revenues new text begin ; requirements new text end .

new text begin (a) new text end The revenues derived
from the tax authorized under subdivision 1 must be used by the city of Edina to pay the
costs of collecting and administering the tax and paying for the following projects in the
city, including securing and paying debt service on bonds issued to finance all or part of
the following projects:

(1) $17,700,000 plus associated bonding costs for development of Fred Richards Park
as identified in the Fred Richards Park Master Plan; deleted text begin and
deleted text end

(2) deleted text begin $53,300,000 deleted text end new text begin $56,300,000 new text end plus associated bonding costs for improvements to Braemar
deleted text begin Park deleted text end new text begin Ice Arena new text end as identified in the Braemar Park Master Plan deleted text begin . deleted text end new text begin ;
new text end

new text begin (3) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (a),
clauses (1) to (4), $35,000,000 plus associated bonding costs for design and construction
of new public safety facilities;
new text end

new text begin (4) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (a),
clauses (1) to (4), $6,000,000 plus associated bonding costs for tenant improvements to the
Edina Art Center;
new text end

new text begin (5) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (a),
clauses (1) to (4), $8,000,000 plus associated bonding costs for a capital improvement plan
for the Edina Aquatic Center; and
new text end

new text begin (6) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (a),
clauses (1) to (4), $4,000,000 plus associated bonding costs for design of the Braemar Golf
Course Clubhouse.
new text end

new text begin (b) Use of tax revenues for the projects listed in paragraph (a), clauses (3) to (6), is
subject to voter approval at the November 3, 2026, general election.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Edina and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 28.

Laws 2021, First Special Session chapter 14, article 8, section 5, subdivision 3,
as amended by Laws 2023, chapter 64, article 10, section 17, is amended to read:

Subd. 3.

Bonding authority.

(a) The city of Edina may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
subdivision 2 and approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
under this subdivision may not exceed: (1) $17,700,000 for the project listed in subdivision
2, new text begin paragraph (a), new text end clause (1), plus an amount to be applied to the payment of the costs of
issuing the bonds; deleted text begin and deleted text end (2) deleted text begin $53,300,000 deleted text end new text begin $56,300,000 new text end for the project listed in subdivision 2,
new text begin paragraph (a), new text end clause (2), plus an amount to be applied to the payment of the costs of issuing
the bonds new text begin ; (3) $35,000,000 for the project listed in subdivision 2, paragraph (a), clause (3),
plus an amount to be applied to the payment of the costs of issuing the bonds; (4) $6,000,000
for the project listed in subdivision 2, paragraph (a), clause (4), plus an amount to be applied
to the payment of the costs of issuing the bonds; (5) $8,000,000 for the project listed in
subdivision 2, paragraph (a), clause (5), plus an amount to be applied to the payment of the
costs of issuing the bonds; and (6) $4,000,000 for the project listed in subdivision 2,
paragraph (a), clause (6), plus an amount to be applied to the payment of the costs of issuing
the bonds new text end . The bonds may be paid from or secured by any funds available to the city of
Edina, including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

(b) The bonds are not included in computing any debt limitation applicable to the city
of Edina, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Edina and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 29. new text begin CITY OF ALEXANDRIA; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
city of Alexandria may impose by ordinance a sales and use tax of up to one-quarter of one
percent for the purposes specified in subdivision 2. Except as otherwise provided in this
section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.
The tax authorized under this subdivision is in addition to any local sales and use tax imposed
under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city to pay the costs of collecting and administering
the tax and to finance up to $30,000,000, plus associated bonding costs, for the expansion
and renovation of the PrimeWest Health Runestone Community Center.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the project authorized in subdivision
2 and approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this
subdivision may not exceed $30,000,000, plus an amount applied to the payment of the
costs of issuing the bonds. The bonds may be paid from or secured by any money available
to the city including the tax authorized under subdivision 1. The issuance of bonds under
this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 20 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 if
approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision
3, paragraph (a), plus an amount sufficient to pay the costs related to issuance of any bonds
authorized under subdivision 3, including interest on the bonds. Except as otherwise provided
in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any money remaining
after payment of the allowed costs due to the timing of the termination of the tax under
Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the general fund of
the city. The tax authorized under subdivision 1 may expire at an earlier time if the city so
determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Alexandria and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 30. new text begin CITY OF AUDUBON; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
city of Audubon may impose by ordinance a sales and use tax of up to one-half of one
percent for the purposes specified in subdivision 2. Except as otherwise provided in this
section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax imposed under this subdivision. The
tax authorized under this subdivision is in addition to any local sales and use tax authorized
under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city to pay the costs of collecting and administering
the tax and to finance up to $3,000,000, plus associated bonding costs, for construction of
a new fire station.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the project authorized in subdivision
2 and approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this
subdivision may not exceed $3,000,000, plus an amount applied to the payment of the costs
of issuing the bonds. The bonds may be paid from or secured by any money available to
the city, including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 20 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 if
approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision
3, paragraph (a), plus an amount sufficient to pay the costs related to issuance of any bonds
authorized under subdivision 3, including interest on the bonds. Except as otherwise provided
in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any money remaining
after payment of the allowed costs due to the timing of the termination of the tax under
Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the general fund of
the city. The tax authorized under subdivision 1 may expire at an earlier time if the city so
determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Audubon and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 31. new text begin CITY OF BLAINE; RESTAURANT, LODGING, AND ADMISSIONS
TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin Notwithstanding Minnesota Statutes, section 477A.016, or any
other law, ordinance, or city charter provision to the contrary, the city of Blaine may, by
ordinance, impose one or more taxes authorized under subdivision 3 on sales transactions
occurring within or into the boundaries of the taxing area.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section, the following terms have the
meanings given:
new text end

new text begin (1) "city" means the city of Blaine;
new text end

new text begin (2) "tax" means a tax imposed under this special law and authorized under subdivision
3; and
new text end

new text begin (3) "taxing area" means the geographic area within the city known as the 105th
Redevelopment Area as identified in the city's zoning ordinance and zoning map.
new text end

new text begin Subd. 3. new text end

new text begin Taxes authorized. new text end

new text begin (a) The city may by ordinance impose one or more of the
following taxes:
new text end

new text begin (1) a tax of not more than three percent on the gross receipts of all food and beverages
sold by a restaurant or place of refreshment, as defined by city ordinance, located within
the taxing area, including retail on-sale of intoxicating liquor and fermented malt beverages
and all sales of food primarily for consumption on or off the premises;
new text end

new text begin (2) a tax of not more than three percent on the gross receipts from the furnishing for
consideration of lodging for a period of less than 30 days at a hotel, motel, rooming house,
tourist court, or trailer camp located within the taxing area by a hotel or motel that has more
than 50 rooms available for lodging. The tax imposed under this clause is in addition to any
tax imposed under Minnesota Statutes, section 469.190, and the total tax imposed under
that section and this provision must not exceed six percent; and
new text end

new text begin (3) a tax of not more than three percent on the gross receipts from the furnishing for
consideration of the privilege of admission to places of amusement or athletic events located
within the taxing area and the privilege of use of amusement devices located within the
taxing area.
new text end

new text begin (b) The taxes must be imposed and may be adjusted periodically by the city council so
that the rates imposed produce revenue sufficient to finance the purposes described in
subdivision 4, but the tax rate may not increase by more than one percentage point over the
rates first imposed by ordinance.
new text end

new text begin Subd. 4. new text end

new text begin Use of revenues. new text end

new text begin The city must use the revenues received from the taxes only
for initial and ongoing financing of capital improvements within the taxing area as provided
in this subdivision. The city may use the revenues to:
new text end

new text begin (1) pay or secure the payment of any principal of, premium on, or interest on bonds
issued in accordance with this section;
new text end

new text begin (2) pay costs to acquire, design, equip, construct, improve, maintain, operate, administer,
or promote the facilities and capital improvements, including financing costs related to
them; and
new text end

new text begin (3) maintain reserves for the foregoing purposes deemed reasonable and appropriate by
the city.
new text end

new text begin Subd. 5. new text end

new text begin Bond authority. new text end

new text begin The city may issue bonds under Minnesota Statutes, chapter
475, to finance all or a portion of the costs of the development and construction projects
located within the taxing area. The bonds are not included in computing any debt limitation
applicable to the city, and any levy of taxes under Minnesota Statutes, section 475.61, to
pay principal and interest on the bonds is not subject to any levy limitation. The issuance
of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and
275.61.
new text end

new text begin Subd. 6. new text end

new text begin Collection and enforcement. new text end

new text begin The commissioner of revenue and the city may
enter into an agreement to provide for the collection of the taxes by the state on behalf of
the city. The taxes are subject to the same interest, penalties, and enforcement provisions
as the taxes imposed under Minnesota Statutes, chapter 297A.
new text end

new text begin Subd. 7. new text end

new text begin Termination of taxes. new text end

new text begin The taxes authorized by this section must not be
terminated before January 1, 2055.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Blaine and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 32. new text begin CITY OF CALEDONIA; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
sections 297A.99, subdivision 2, paragraphs (a) to (c), and 477A.016, or any other law or
ordinance, and if approved by the voters at an election as required under Minnesota Statutes,
section 297A.99, subdivision 3, the city of Caledonia may impose by ordinance a sales and
use tax of up to one-quarter percent for the purposes specified in subdivision 2. Except as
otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99,
govern the imposition, administration, collection, and enforcement of the tax authorized
under this subdivision. The tax authorized under this subdivision is in addition to any local
sales and use tax imposed under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city to pay the costs of collecting and administering
the tax and to finance up to $1,600,000, plus associated bonding costs and interest, for
construction of a Public Safety Center.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the project authorized in subdivision
2 and approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this
subdivision may not exceed $1,600,000, plus an amount applied to the payment of the costs
of issuing the bonds. The bonds may be paid from or secured by any money available to
the city, including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay the principal of and
interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) ten years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 if
approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision
3, paragraph (a), plus an amount sufficient to pay the costs related to issuance of any bonds
authorized under subdivision 3, including interest on the bonds. Except as otherwise provided
in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any money remaining
after payment of the allowed costs due to the timing of the termination of the tax under
Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the general fund of
the city. The tax authorized under subdivision 1 may expire at an earlier time if the city so
determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Caledonia and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 33. new text begin CITY OF CHAMPLIN; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
city of Champlin may impose by ordinance a sales and use tax of up to one-half of one
percent for the purposes specified in subdivision 2. Except as otherwise provided in this
section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.
The tax authorized under this subdivision is in addition to any local sales and use tax
authorized under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The city must use the revenues derived
from the tax authorized under subdivision 1 to pay the costs of collecting and administering
the tax and to finance up to $18,000,000, plus associated bonding costs, for construction of
a new indoor athletic facility.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the project authorized in subdivision
2 and approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this
subdivision may not exceed $18,000,000, plus an amount applied to the payment of the
costs of issuing the bonds. The bonds may be paid from or secured by any money available
to the city, including the tax authorized under subdivision 1. The issuance of bonds under
this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 30 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 and
approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision
3, paragraph (a), plus an amount sufficient to pay the costs related to issuance of any bonds
authorized under subdivision 3, including interest on the bonds. Except as otherwise provided
in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any money remaining
after payment of the allowed costs due to the timing of the termination of the tax under
Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the general fund of
the city. The tax authorized under subdivision 1 may expire at an earlier time if the city so
determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Champlin and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 34. new text begin CLOQUET AREA FIRE DISTRICT; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin (a) Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
within the Cloquet Area Fire District at an election as required under Minnesota Statutes,
section 297A.99, subdivision 3, the Cloquet Area Fire District may impose by majority vote
of the governing body of the district a sales and use tax of up to one-half of one percent for
the purpose specified in subdivision 2.
new text end

new text begin (b) Except as otherwise provided in this section, the provisions of Minnesota Statutes,
section 297A.99, govern the imposition, administration, collection, and enforcement of the
tax authorized under this subdivision. In accordance with Minnesota Statutes, section
297A.99, subdivision 11, the commissioner of revenue must remit the proceeds of the tax,
less refunds and a proportionate share of the cost of collection, to the Cloquet Area Fire
District. The tax authorized under this subdivision is in addition to any local sales and use
tax authorized under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the Cloquet Area Fire District to pay the costs of
collecting and administering the tax, and to finance up to $18,609,000 for the construction
of Ambulance and Fire Station I for the district, as well as securing and paying debt service
on bonds issued to finance all or part of this project.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The Cloquet Area Fire District may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project
authorized in subdivision 2 and approved by voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
issued under this subdivision may not exceed $18,609,000, plus an amount applied to the
payment of the costs of issuing the bonds. The bonds may be paid from or secured by any
funds available to the Cloquet Area Fire District, including the tax authorized under
subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota
Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the Cloquet
Area Fire District. Any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal of and interest on the bonds is not subject to any levy limitation. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 20 years
after the tax is first authorized, or (2) when the Cloquet Area Fire District determines that
the amount received from the tax is sufficient to pay for the project cost authorized under
subdivision 2 if approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the
general fund of the district. The tax authorized under subdivision 1 may expire at an earlier
time if the governing body of the district so determines.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
Cloquet Area Fire District and its chief clerical officer comply with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
new text end

Sec. 35. new text begin CITY OF COON RAPIDS; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
city of Coon Rapids may impose by ordinance a sales and use tax of up to one-half of one
percent for the purposes specified in subdivision 2. Except as otherwise provided in this
section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.
The tax authorized under this subdivision is in addition to any local sales and use tax
authorized under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city to pay for the following projects in the city,
including the costs of collecting and administering the tax and securing and paying debt
service on bonds issued to finance all or part of the projects:
new text end

new text begin (1) $40,000,000 for renovation and expansion of the police department and city center
facility, including the city hall and civic center; and
new text end

new text begin (2) $40,000,000 for the construction of a new community center and expansion of the
Coon Rapids Ice Center.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the projects authorized in subdivision
2 and approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this
subdivision may not exceed $80,000,000, plus an amount applied to the payment of the
costs of issuing the bonds. The bonds may be paid from or secured by any money available
to the city, including the tax authorized under subdivision 1. The issuance of bonds under
this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 25 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any money remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the
general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Coon Rapids and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 36. new text begin DOUGLAS COUNTY; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law or ordinance, and if approved by the voters at an election
as required under Minnesota Statutes, section 297A.99, subdivision 3, Douglas County may
impose by ordinance a sales and use tax of up to one-quarter of one percent for the purposes
specified in subdivision 2. Except as otherwise provided in this section, the provisions of
Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and
enforcement of the tax authorized under this subdivision. The tax authorized under this
subdivision is in addition to any local sales and use tax imposed under any other special
law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the county to pay the costs of collecting and
administering the tax and to finance up to $18,500,000, plus associated bonding costs, for
the construction of a new library.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The county may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the project authorized in subdivision
2 and approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this
subdivision may not exceed $18,500,000, plus an amount applied to the payment of the
costs of issuing the bonds. The bonds may be paid from or secured by any money available
to the county, including the tax authorized under subdivision 1. The issuance of bonds under
this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the county.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) ten years
after the tax is first imposed, or (2) when the county board determines that the amount
received from the tax is sufficient to pay for the project costs authorized under subdivision
2 if approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any money remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the
general fund of the county. The tax authorized under subdivision 1 may expire at an earlier
time if the county so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
Douglas County and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 37. new text begin CITY OF FOREST LAKE; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
city of Forest Lake may impose by ordinance a sales and use tax of up to one-half of one
percent for the purposes specified in subdivision 2. Except as otherwise provided in this
section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.
The tax authorized under this subdivision is in addition to any local sales and use tax imposed
under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city to pay the costs of collecting and administering
the tax and to finance up to $50,000,000, plus associated bonding costs, for construction of
a new public works facility.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the project authorized in subdivision
2 and approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this
subdivision may not exceed $50,000,000, plus an amount applied to the payment of the
costs of issuing the bonds. The bonds may be paid from or secured by any money available
to the city, including the tax authorized under subdivision 1. The issuance of bonds under
this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 20 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 if
approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision
3, paragraph (a), plus an amount sufficient to pay the costs related to issuance of any bonds
authorized under subdivision 3, including interest on the bonds. Except as otherwise provided
in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any money remaining
after payment of the allowed costs due to the timing of the termination of the tax under
Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the general fund of
the city. The tax authorized under subdivision 1 may expire at an earlier time if the city so
determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Forest Lake and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 38. new text begin ISANTI COUNTY; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, Isanti
County may impose, by ordinance, a sales and use tax of up to one-quarter percent for the
purposes specified in subdivision 2. Except as otherwise provided in this section, the
provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision. The tax authorized
under this subdivision is in addition to any local sales and use tax imposed under any other
special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the county to pay the costs of collecting and
administering the tax, and to finance up to $25,000,000 for construction of the new highway
department facility, as well as the associated bond costs for any bonds issued under
subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The county may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the project authorized in subdivision
2. The aggregate principal amount of bonds issued under this subdivision may not exceed
$25,000,000, plus an amount applied to the payment of costs of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any money available to the county,
including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the county.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin The tax authorized under subdivision 1 expires at the
earlier of: (1) 25 years after the tax is first imposed; or (2) when the county determines that
it has received from this tax $25,000,000 to fund the project listed in subdivision 2, plus an
amount sufficient to pay costs related to issuance of any bonds authorized under subdivision
3, including interest on the bonds. Except as otherwise provided in Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (f), any money remaining after payment of the
allowed costs due to timing of the termination of the tax under Minnesota Statutes, section
297A.99, subdivision 12, shall be placed in the county's general fund. The tax authorized
under subdivision 1 may expire at an earlier time if the county determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of Isanti
County and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 39. new text begin CITY OF LANESBORO; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
city of Lanesboro may impose by ordinance a sales and use tax of up to one-half of one
percent for the purposes specified in subdivision 2. Except as otherwise provided in this
section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.
The tax authorized under this subdivision is in addition to any local sales and use tax imposed
under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city to pay the costs of collecting and administering
the tax and to finance up to $500,000 for rehabilitation and improvements to Sylvan Park.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Lanesboro may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
subdivision 2 and approved by the voters at an election as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
issued under this subdivision may not exceed $500,000, plus an amount applied to the
payment of the costs of issuing the bonds. The bonds may be paid from or secured by any
money available to the city, including the tax authorized under subdivision 1. The issuance
of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and
275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) five years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by the voters at an election as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to
issuance of any bonds authorized under subdivision 3, including interest on the bonds.
Except as otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3,
paragraph (f), any money remaining after payment of the allowed costs due to the timing
of the termination of the tax under Minnesota Statutes, section 297A.99, subdivision 12,
must be placed in the general fund of the city. The tax authorized under subdivision 1 may
expire at an earlier time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Lanesboro and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 40. new text begin CITY OF MAPLEWOOD; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law or ordinance, and if approved by the voters at an election
as required under Minnesota Statutes, section 297A.99, subdivision 3, the city of Maplewood
may impose by ordinance a sales and use tax of up to one-half percent for the purposes
specified in subdivision 2. Except as otherwise provided in this section, the provisions of
Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and
enforcement of the tax authorized under this subdivision. The tax authorized under this
subdivision is in addition to any local sales and use tax imposed under any other special
law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city to pay the costs of collecting and administering
the tax and paying for the following projects in the city, plus associated costs related to the
issuance of bonds used to finance all or part of the following projects:
new text end

new text begin (1) $25,000,000 for the East Metro Public Safety Training Facility; and
new text end

new text begin (2) $48,000,000 for the Maplewood Community Center.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the projects authorized in subdivision
2 and approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this
subdivision may not exceed $73,000,000, plus an amount applied to the payment of the
costs of issuing the bonds. The bonds may be paid from or secured by any money available
to the city, including the tax authorized under subdivision 1. The issuance of bonds under
this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 20 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any money remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the
general fund of the city. The tax authorized under subdivision 1 may expire at an earlier
time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Maplewood and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 41. new text begin CITY OF MINNETONKA; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
city of Minnetonka may impose by ordinance a sales and use tax of up to one-half of one
percent for the purposes specified in subdivision 2. Except as otherwise provided in this
section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.
The tax authorized under this subdivision is in addition to any local sales and use tax
authorized under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city to pay for the following projects in the city,
including the costs of collecting and administering the tax and securing and paying debt
service on bonds issued to finance all or part of the following projects:
new text end

new text begin (1) $13,000,000 for the new construction of Fire Station 2;
new text end

new text begin (2) $17,600,000 for the new construction of Fire Station 3; and
new text end

new text begin (3) $35,000,000 for renovations to The Marsh health and wellness center.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the projects authorized in subdivision
2 and approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this
subdivision may not exceed $65,600,000, plus an amount applied to the payment of the
costs of issuing the bonds. The bonds may be paid from or secured by any money available
to the city, including the tax authorized under subdivision 1. The issuance of bonds under
this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 30 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any money remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the
general fund of the city. The tax authorized under subdivision 1 may expire at an earlier
time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Minnetonka and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 42. new text begin CITY OF NORTHFIELD; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
city of Northfield may impose by ordinance a sales and use tax of up to one-half of one
percent for the purposes specified in subdivision 2. Except as otherwise provided in this
section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.
The tax authorized under this subdivision is in addition to any local sales and use tax imposed
under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city to pay for the following projects in the city,
including the costs of collecting and administering the tax and to pay or finance the costs
of the following projects, plus costs of issuance and debt service on associated bonds:
new text end

new text begin (1) $2,800,000 for the acquisition, rehabilitation, and betterment of the Northfield Public
Library;
new text end

new text begin (2) $2,800,000 for the acquisition, rehabilitation, and betterment of the Northfield
Community Resource Center; and
new text end

new text begin (3) $7,500,000 for the acquisition and betterment of interconnected city Riverfront Parks.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the projects authorized in subdivision
2 and approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this
subdivision may not exceed $13,100,000, plus an amount applied to the payment of the
costs of issuing the bonds. The bonds may be issued as general obligations of the city and
may be paid from or secured by any money available to the city, including the tax authorized
under subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota
Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 20 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any money remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the
general fund of the city. The tax authorized under subdivision 1 may expire at an earlier
time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Northfield and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 43. new text begin CITY OF OAK PARK HEIGHTS; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 2, paragraphs (a) and (b), or 477A.016, or any other law,
ordinance, or city charter, and if approved by the voters at a general election as required
under Minnesota Statutes, section 297A.99, subdivision 3, the city of Oak Park Heights
may impose by ordinance a sales and use tax of up to one-half percent for the purposes
specified in subdivision 2. Except as otherwise provided in this section, the provisions of
Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and
enforcement of the tax authorized under this subdivision. The tax authorized under this
subdivision is in addition to any local sales and use tax imposed under any other special
law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin (a) The revenues derived from the tax
authorized under subdivision 1 must be used by the city to pay for the following projects
in the city, including the costs of collecting and administering the tax and securing and
paying debt service on bonds issued to finance all or part of the following projects:
new text end

new text begin (1) $13,000,000 for water main infrastructure improvements;
new text end

new text begin (2) $3,000,000 for water tower infrastructure improvements; and
new text end

new text begin (3) $25,000,000 for a perfluoroalkyl and polyfluoralkyl substances (PFAS) removal
water treatment facility.
new text end

new text begin (b) The city must adopt an amended resolution in support of the use of revenues from
the tax authorized under subdivision 1 for the uses listed in paragraph (a). The resolution
must include the components of the resolution required under Minnesota Statutes, section
297A.99, subdivision 2, paragraph (a), for each project listed in paragraph (a). The city
must submit the resolution to the state auditor no later than August 31 of the year the city
presents the tax for voter approval as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a). The question to approve the tax as required under Minnesota
Statutes, section 297A.99, subdivision 3, paragraph (a), must indicate the purposes for which
the revenues must be used as included in the amended resolution.
new text end

new text begin (c) If the city does not adopt and submit the amended resolution under paragraph (b),
the question presented to the voters under Minnesota Statutes, section 297A.99, subdivision
3, paragraph (a), must not include, and revenues from the tax authorized under subdivision
1 must not be used for, the purposes specified in paragraph (a).
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the water infrastructure facilities and
systems authorized in subdivision 2 and approved by the voters as required under Minnesota
Statutes, section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of
bonds issued under this subdivision may not exceed $41,000,000 for the projects listed in
subdivision 2 plus an amount to be applied to the payment of the costs of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any money available to the city of Oak
Park Heights, including the tax authorized under subdivision 1 and the full faith and credit
of the city. The issuance of bonds under this subdivision is not subject to Minnesota Statutes,
sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
of Oak Park Heights and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal and interest on the bonds is not subject to any levy limitation. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 20 years
after being first imposed, or (2) when the city council determines that $41,000,000 has been
received from the tax to fund the project authorized under subdivision 2, plus an amount
sufficient to pay the costs related to issuance of any bonds authorized under subdivision 3,
including interest on the bonds. Except as otherwise provided in Minnesota Statutes, section
297A.99, subdivision 3, paragraph (f), any money remaining after payment of the allowed
costs due to the timing of the termination of the tax under Minnesota Statutes, section
297A.99, subdivision 12, shall be placed in the general fund of the city. The tax authorized
under subdivision 1 may expire at an earlier time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Oak Park Heights and its chief clerical officer comply with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
new text end

Sec. 44. new text begin CITY OF OSSEO; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 2, paragraph (b), or 477A.016, or any other law, ordinance,
or city charter, and if approved by the voters at an election as required under Minnesota
Statutes, section 297A.99, subdivision 3, the city of Osseo may impose by ordinance a sales
and use tax of up to one-half percent for the purposes specified in subdivision 2. Except as
otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99,
govern the imposition, administration, collection, and enforcement of the tax authorized
under this subdivision. The tax authorized under this subdivision is in addition to any local
sales and use tax imposed under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city to pay the costs of collecting and administering
the tax and paying for the following projects in the city, including securing and paying debt
service on bonds issued to finance all or part of the following projects:
new text end

new text begin (1) $7,000,000 for the Boerboom Park Community Center Hub Project; and
new text end

new text begin (2) $3,000,000 for the City Hall Renovations Project, including the renovation and
betterment of city hall and associated infrastructure as part of the City Campus Project.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the projects authorized in subdivision
2 and approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this
subdivision may not exceed $10,000,000 for the projects listed in subdivision 2, plus an
amount to be applied to the payment of the costs of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any money available to the city of Osseo,
including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
of Osseo, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 20 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any money remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the
general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Osseo and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 45. new text begin CITY OF OWATONNA; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
the city of Owatonna may impose by ordinance a sales and use tax of up to one-half percent
for the purposes specified in subdivision 2. Except as otherwise provided in this section,
the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision. The tax imposed
under this subdivision is in addition to any local sales and use tax authorized under any
other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city to pay the costs of collecting and administering
the tax and to finance $75,000,000, plus associated bonding costs, for the construction of
a community center.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the facilities authorized in subdivision
2 and approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this
subdivision may not exceed $75,000,000 for the projects listed in subdivision 2 plus an
amount to be applied to the payment of the costs of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any money available to the city, including
the tax authorized under subdivision 1 and the full faith and credit of the city. The issuance
of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and
275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city,
and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 25 years
after being first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any money remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the
general fund of the city. The tax authorized under subdivision 1 may expire at an earlier
time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Owatonna and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 46. new text begin CITY OF PLYMOUTH; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law or ordinance, and if approved by the voters at an election
as required under Minnesota Statutes, section 297A.99, subdivision 3, the city of Plymouth
may impose by ordinance a sales and use tax of up to one-half percent for the purposes
specified in subdivision 2. Except as otherwise provided in this section, the provisions of
Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and
enforcement of the tax authorized under this subdivision. The tax authorized under this
subdivision is in addition to any local sales and use tax imposed under any other special
law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city to pay the costs of collecting and administering
the tax and paying for the following projects in the city, plus associated costs related to the
issuance of bonds used to finance all or part of the following projects:
new text end

new text begin (1) $55,000,000 for expansion and renovation of the Plymouth Ice Center;
new text end

new text begin (2) $55,000,000 for expansion of the Plymouth Community Center Fieldhouse; and
new text end

new text begin (3) $25,000,000 for the Four Seasons Regional Sports Complex.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the projects authorized in subdivision
2 and approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this
subdivision may not exceed $135,000,000, plus an amount applied to the payment of the
costs of issuing the bonds. The bonds may be paid from or secured by any money available
to the city, including the tax authorized under subdivision 1. The issuance of bonds under
this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 20 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any money remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the
general fund of the city. The tax authorized under subdivision 1 may expire at an earlier
time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Plymouth and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 47. new text begin CITY OF ROBBINSDALE; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
city of Robbinsdale may impose by ordinance a sales and use tax of up to one-half of one
percent for the purposes specified in subdivision 2. Except as otherwise provided in this
section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.
The tax authorized under this subdivision is in addition to any local sales and use tax
authorized under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city to pay the costs of collecting and administering
the tax and to finance up to $40,000,000, plus associated bonding costs, for the Public Works
Facility Project.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the project authorized in subdivision
2 and approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this
subdivision may not exceed $40,000,000, plus an amount applied to the payment of the
costs of issuing the bonds. The bonds may be paid from or secured by any money available
to the city, including the tax authorized under subdivision 1. The issuance of bonds under
this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 20 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 if
approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision
3, paragraph (a), plus an amount sufficient to pay the costs related to issuance of any bonds
authorized under subdivision 3, including interest on the bonds. Except as otherwise provided
in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any money remaining
after payment of the allowed costs due to the timing of the termination of the tax under
Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the general fund of
the city. The tax authorized under subdivision 1 may expire at an earlier time if the city so
determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Robbinsdale and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 48. new text begin CITY OF ROSEAU; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law or ordinance, and if approved by the voters at an election
as required under Minnesota Statutes, section 297A.99, subdivision 3, the city of Roseau
may impose by ordinance a sales and use tax of up to one-half of one percent for the purposes
specified in subdivision 2. Except as otherwise provided in this section, the provisions of
Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and
enforcement of the tax authorized under this subdivision. The tax imposed under this
subdivision is in addition to any local sales and use tax authorized under any other special
law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Roseau to pay the costs of collecting and
administering the tax and paying for the following projects in the city, plus associated costs
related to the issuance of bonds used to finance all or part of the following projects:
new text end

new text begin (1) $4,300,000 for renovation of the Roseau Memorial Arena; and
new text end

new text begin (2) $8,200,000 for the construction of a new community and wellness center.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Roseau may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
subdivision 2 and approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
under this subdivision may not exceed $12,500,000, plus an amount applied to the payment
of the costs of issuing the bonds. The bonds may be paid from or secured by any money
available to the city, including the tax authorized under subdivision 1. The issuance of bonds
under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 30 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any money remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the
general fund of the city. The tax authorized under subdivision 1 may expire at an earlier
time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Roseau and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 49. new text begin SHERBURNE COUNTY; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
sections 297A.99, subdivision 2, paragraph (b); 477A.016; or any other law or ordinance,
and if approved by the voters at an election as required under Minnesota Statutes, section
297A.99, subdivision 3, Sherburne County may impose by ordinance a sales and use tax of
up to one-quarter percent for the purposes specified in subdivision 2. Except as otherwise
provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the
imposition, administration, collection, and enforcement of the tax authorized under this
subdivision. The tax authorized under this subdivision is in addition to any local sales and
use tax imposed under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the county to pay the costs of collecting and
administering the tax and to finance up to $75,000,000, plus associated bonding costs, for
a law enforcement center, which includes a jail.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The county may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the project authorized in subdivision
2 and approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this
subdivision may not exceed $75,000,000, plus an amount applied to the payment of the
costs of issuing the bonds. The bonds may be paid from or secured by any money available
to the county, including the tax authorized under subdivision 1. The issuance of bonds under
this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the county.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 20 years
after the tax is first imposed, or (2) when the county determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 if
approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision
3, paragraph (a), plus an amount sufficient to pay the costs related to issuance of any bonds
authorized under subdivision 3, including interest on the bonds. Except as otherwise provided
in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any money remaining
after payment of the allowed costs due to the timing of the termination of the tax under
Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the general fund of
the county. The tax authorized under subdivision 1 may expire at an earlier time if the county
so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
Sherburne County and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 50. new text begin CITY OF ST. CLOUD; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law or ordinance, and if approved by the voters at an election
as required under Minnesota Statutes, section 297A.99, subdivision 3, the city of St. Cloud
may impose by ordinance a sales and use tax of up to one-quarter percent for the purposes
specified in subdivision 2. Except as otherwise provided in this section, the provisions of
Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and
enforcement of the tax authorized under this subdivision. The tax authorized under this
subdivision is in addition to any local sales and use tax imposed under any other special
law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city to pay the costs of collecting and administering
the tax and:
new text end

new text begin (1) to finance up to $7,000,000, plus associated bonding costs, for an outdoor water park
adjacent to the St. Cloud Aquatics Center; or
new text end

new text begin (2) to otherwise fund up to $7,000,000 for an outdoor water park adjacent to the St.
Cloud Aquatics Center.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority; voter approval. new text end

new text begin (a) The city may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project
authorized in subdivision 2. The aggregate principal amount of bonds issued under this
subdivision may not exceed $7,000,000, plus an amount applied to the payment of the costs
of issuing the bonds. The bonds may be paid from or secured by any money available to
the city, including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin (c) Voter approval as required under Minnesota Statutes, section 297A.99, subdivision
3, paragraph (a), applies regardless of whether the city issues bonds under paragraph (a) or
otherwise funds the project authorized in subdivision 2.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) three
years after the tax is first imposed, or (2) when the city council determines that the amount
received from the tax is sufficient to pay for the project costs authorized under subdivision
2 if approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus, if applicable, an amount sufficient to pay the costs related
to issuance of any bonds authorized under subdivision 3, including interest on the bonds.
Except as otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3,
paragraph (f), any money remaining after payment of the allowed costs due to the timing
of the termination of the tax under Minnesota Statutes, section 297A.99, subdivision 12,
must be placed in the general fund of the city. The tax authorized under subdivision 1 may
expire at an earlier time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of St. Cloud and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 51. new text begin CITY OF TAYLORS FALLS; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law or ordinance, and if approved by the voters at an election
as required under Minnesota Statutes, section 297A.99, subdivision 3, the city of Taylors
Falls may impose by ordinance a sales and use tax of up to one-half percent for the purposes
specified in subdivision 2. Except as otherwise provided in this section, the provisions of
Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and
enforcement of the tax authorized under this subdivision. The tax authorized under this
subdivision is in addition to any local sales and use tax imposed under any other special
law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city to pay the costs of collecting and administering
the tax and paying for the following projects in the city, plus associated costs related to the
issuance of bonds used to finance all or part of the following projects:
new text end

new text begin (1) $600,000 for community center improvements;
new text end

new text begin (2) $1,000,000 for the Taylors Falls River Walk improvements and trail system; and
new text end

new text begin (3) $400,000 for development of a town square.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the projects authorized in subdivision
2 and approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this
subdivision may not exceed $2,000,000, plus an amount applied to the payment of the costs
of issuing the bonds. The bonds may be paid from or secured by any money available to
the city, including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 20 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any money remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the
general fund of the city. The tax authorized under subdivision 1 may expire at an earlier
time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Taylors Falls and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 52. new text begin CITY OF VERGAS; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law or ordinance, and if approved by the voters at an election
as required under Minnesota Statutes, section 297A.99, subdivision 3, the city of Vergas
may impose by ordinance a sales and use tax of up to one-half percent for the purposes
specified in subdivision 2. Except as otherwise provided in this section, the provisions of
Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and
enforcement of the tax authorized under this subdivision. The tax authorized under this
subdivision is in addition to any local sales and use tax imposed under any other special
law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin (a) The revenues derived from the tax
authorized under subdivision 1 must be used by the city to pay the costs of collecting and
administering the tax and to pay for the following projects in the Vergas Park Improvement
Plan:
new text end

new text begin (1) $240,000 for construction of a new amphitheater and bathhouse; and
new text end

new text begin (2) $45,000 for extension of utilities to the amphitheater.
new text end

new text begin (b) The city must adopt an amended resolution in support of the use of revenues from
the tax authorized under subdivision 1 for the uses listed in paragraph (a). The resolution
must include the components of the resolution required under Minnesota Statutes, section
297A.99, subdivision 2, paragraph (a), for each project listed in paragraph (a). The city
must submit the resolution to the state auditor no later than August 31 of the year the city
presents the tax for voter approval as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a). The question to approve the tax as required under Minnesota
Statutes, section 297A.99, subdivision 3, paragraph (a), must indicate the purposes for which
the revenues must be used as included in the amended resolution.
new text end

new text begin (c) If the city does not adopt and submit the amended resolution under paragraph (b),
the question presented to the voters under Minnesota Statutes, section 297A.99, subdivision
3, paragraph (a), must not include, and revenues from the tax authorized under subdivision
1 must not be used for, the purposes specified in paragraph (a).
new text end

new text begin Subd. 3. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) five years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 if
approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision
3, paragraph (a). Except as otherwise provided in Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (f), any money remaining after payment of the allowed costs due
to the timing of the termination of the tax under Minnesota Statutes, section 297A.99,
subdivision 12, must be placed in the general fund of the city. The tax authorized under
subdivision 1 may expire at an earlier time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Vergas and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 53. new text begin WASECA COUNTY; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law or ordinance, and if approved by the voters at an election
as required under Minnesota Statutes, section 297A.99, subdivision 3, Waseca County may
impose by ordinance a sales and use tax of up to three-eighths of one percent for the purposes
specified in subdivision 2. Except as otherwise provided in this section, the provisions of
Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and
enforcement of the tax authorized under this subdivision. The tax authorized under this
subdivision is in addition to any local sales and use tax imposed under any other special
law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the county to pay the costs of collecting and
administering the tax and to finance up to $45,000,000, plus associated bonding costs, for
construction of a new judicial center.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The county may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the project authorized in subdivision
2 and approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this
subdivision may not exceed $45,000,000, plus an amount applied to the payment of the
costs of issuing the bonds. The bonds may be paid from or secured by any money available
to the county, including the tax authorized under subdivision 1. The issuance of bonds under
this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the county.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 30 years
after the tax is first imposed, or (2) when the county board determines that the amount
received from the tax is sufficient to pay for the project costs authorized under subdivision
2 if approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any money remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the
general fund of the county. The tax authorized under subdivision 1 may expire at an earlier
time if the county so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
Waseca County and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 54. new text begin CITY OF WAYZATA FOOD AND BEVERAGE TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Food and beverage tax authorized. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any ordinance, city charter, or other provision of law, the city of
Wayzata may, by ordinance, impose a sales tax of up to one percent on the gross receipts
on all sales of food and beverages by a restaurant or place of refreshment, as defined by
resolution of the city, that are located within the city. For purposes of this section, "food
and beverages" includes retail on-sale of intoxicating liquor and fermented malt beverages.
new text end

new text begin Subd. 2. new text end

new text begin Use of proceeds from tax. new text end

new text begin (a) The proceeds of any tax imposed under
subdivision 1 shall be used by the city to pay all or a portion of the expenses of:
new text end

new text begin (1) operation, maintenance, and capital improvement expenses for city parks;
new text end

new text begin (2) operation and capital improvement expenses related to providing public safety; and
new text end

new text begin (3) costs related to downtown business attraction and retention.
new text end

new text begin (b) Authorized capital expenses include securing or paying debt service on bonds or
other obligations issued to finance the construction of capital improvements to city parks
or public safety facilities.
new text end

new text begin Subd. 3. new text end

new text begin Collection, administration, and enforcement. new text end

new text begin If the city desires, it may enter
into an agreement with the commissioner of revenue to administer, collect, and enforce the
tax authorized under subdivision 1. If the commissioner agrees to collect the tax, the
provisions of Minnesota Statutes, section 297A.99, related to collection, administration,
and enforcement apply.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Wayzata and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 55. new text begin CITY OF WINDOM; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law or ordinance, and if approved by the voters at an election
as required under Minnesota Statutes, section 297A.99, subdivision 3, the city of Windom
may impose by ordinance a sales and use tax of up to one-half percent for the purposes
specified in subdivision 2. Except as otherwise provided in this section, the provisions of
Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and
enforcement of the tax authorized under this subdivision. The tax authorized under this
subdivision is in addition to any local sales and use tax imposed under any other special
law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city to pay the costs of collecting and administering
the tax and to finance $8,000,000 for the swimming pool project, plus associated costs
related to the issuance of bonds issued under subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the project authorized in subdivision
2 and approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this
subdivision may not exceed $8,000,000, plus an amount applied to the payment of the costs
of issuing the bonds. The bonds may be paid from or secured by any money available to
the city, including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 30 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any money remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the
general fund of the city. The tax authorized under subdivision 1 may expire at an earlier
time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Windom and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 56. new text begin MODIFICATIONS ALLOWED.
new text end

new text begin The amendments to Laws 1993, chapter 375, article 9, section 46, as amended, are
allowed notwithstanding Minnesota Statutes, section 297A.99, subdivisions 2, paragraphs
(a) and (b), and 3, paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 6

LOCAL GOVERNMENT AIDS

Section 1.

Minnesota Statutes 2025 Supplement, section 126C.13, subdivision 4, is amended
to read:

Subd. 4.

General education aid.

deleted text begin For fiscal year 2015 and later, deleted text end A district's general
education aid equals:

(1) general education revenue, excluding operating capital revenue, equity revenue, local
optional revenue, and transition revenue; plus

(2) operating capital aid under section 126C.10, subdivision 13b; plus

(3) equity aid under section 126C.10, subdivision 30; plus

(4) transition aid under section 126C.10, subdivision 33; plus

(5) shared time aid under section 126C.01, subdivision 7; plus

(6) referendum aid under section 126C.17, subdivisions 7 deleted text begin and deleted text end new text begin , new text end 7a new text begin , and 7c new text end ; plus

(7) online learning aid under section 124D.096; plus

(8) local optional aid according to section 126C.10, subdivision 2e, paragraph (f).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2028 and later.
new text end

Sec. 2.

Minnesota Statutes 2024, section 126C.17, is amended by adding a subdivision to
read:

new text begin Subd. 7c. new text end

new text begin Seasonal tax base replacement aid. new text end

new text begin (a) For purposes of this subdivision,
"eligible school district" means a school district for which the seasonal tax base adjustment
factor under paragraph (c) is at least equal to 0.15. A school district determined eligible
under this paragraph for aid in fiscal year 2028 or any later fiscal year remains an eligible
school district for aid in any subsequent fiscal year.
new text end

new text begin (b) An eligible school district's seasonal tax base replacement aid equals the product of
(1) the seasonal tax base adjustment factor, and (2) the district's referendum equalization
levy calculated under subdivision 6, after any adjustment under subdivisions 7a and 7b.
new text end

new text begin (c) A district's seasonal tax base adjustment factor equals the lesser of 0.50 or the ratio
of (1) the seasonal market value for the district, to (2) the sum of the referendum market
value and the seasonal market value for the district. For the purposes of this paragraph,
"seasonal market value" means the market value of all taxable property classified as class
4c(12) under section 273.13.
new text end

new text begin (d) The amount calculated under paragraph (b) must be used to reduce the district's
referendum levy determined after the adjustments under subdivisions 7a and 7b.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2027 and later.
new text end

Sec. 3.

Minnesota Statutes 2024, section 477A.011, subdivision 34, is amended to read:

Subd. 34.

City revenue need.

(a) For a city with a population equal to or greater than
10,000, "city revenue need" is 1.15 times the sum of (1) 8.572 times the pre-1940 housing
percentage; plus (2) 11.494 times the city age index; plus (3) 5.719 times the commercial
industrial utility percentage; plus (4) 9.484 times peak population decline; plus (5) 293.056 new text begin ;
plus (6) the sparsity adjustment new text end .

(b) For a city with a population equal to or greater than 2,500 and less than 10,000, "city
revenue need" is 1.15 times the sum of (1) 497.308; plus (2) 6.667 times the pre-1940
housing percentage; plus (3) 9.215 times the commercial industrial utility percentage; plus
(4) 16.081 times peak population decline new text begin ; plus (5) the sparsity adjustment new text end .

(c) For a city with a population less than 2,500, "city revenue need" is the sum of (1)
196.487; plus (2) 220.877 times the city's transformed population new text begin ; plus (3) the sparsity
adjustment new text end .

(d) For a city with a population of at least 2,500 but less than 3,000, the "city revenue
need" equals (1) the transition factor times the city's revenue need calculated in paragraph
(b); plus (2) the city's revenue need calculated under the formula in paragraph (c) times the
difference between one and the transition factor. For a city with a population of at least
10,000 but less than 11,000, the "city revenue need" equals (1) the transition factor times
the city's revenue need calculated in paragraph (a); plus (2) the city's revenue need calculated
under the formula in paragraph (b) times the difference between one and the transition
factor. For purposes of the first sentence of this paragraph "transition factor" is 0.2 percent
times the amount that the city's population exceeds the minimum threshold. For purposes
of the second sentence of this paragraph, "transition factor" is 0.1 percent times the amount
that the city's population exceeds the minimum threshold.

(e) The city revenue need cannot be less than zero.

(f) For calendar year 2024 and subsequent years, the city revenue need for a city, as
determined in paragraphs (a) to (e), is multiplied by the ratio of the annual implicit price
deflator for government consumption expenditures and gross investment for state and local
governments as prepared by the United States Department of Commerce, for the most
recently available year to the 2022 implicit price deflator for state and local government
purchases.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2027 and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2024, section 477A.011, is amended by adding a subdivision
to read:

new text begin Subd. 48. new text end

new text begin Sparsity adjustment. new text end

new text begin (a) The "sparsity adjustment" equals 200 for:
new text end

new text begin (1) a city with a population of 10,000 or more and an average population density less
than 150 per square mile, according to the most recent federal census; and
new text end

new text begin (2) a city with a population less than 10,000 and an average population density less than
30 per square mile, according to the most recent federal census.
new text end

new text begin (b) The "sparsity adjustment" equals zero for all other cities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2027 and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2024, section 477A.23, subdivision 6, is amended to read:

Subd. 6.

Appropriation.

deleted text begin For aids payable in 2023 and 2024, $15,000,000 is appropriated
in each year from the general fund to the commissioner of revenue to make the payments
required under this section. deleted text end For aids payable in deleted text begin 2025 deleted text end new text begin 2026 new text end and thereafter, deleted text begin $12,000,000 deleted text end new text begin
$14,000,000 new text end is annually appropriated from the general fund to the commissioner of revenue
to make the payments required under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2026 and thereafter.
new text end

Sec. 6.

Minnesota Statutes 2024, section 477A.35, subdivision 4, is amended to read:

Subd. 4.

Qualifying projects.

(a) Qualifying projects include:

(1) emergency rental assistance for households earning less than 80 percent of area
median income as determined by the United States Department of Housing and Urban
Development;

(2) financial support to nonprofit affordable housing providers in their mission to provide
safe, dignified, affordable and supportive housing;

(3) projects designed for the purpose of construction, acquisition, rehabilitation,
demolition or removal of existing structures, construction financing, permanent financing,
interest rate reduction, refinancing, and gap financing of housing to provide affordable
housing to households that have incomes which do not exceed, for homeownership projects,
115 percent of the greater of state or area median income as determined by the United States
Department of Housing and Urban Development, and for rental housing projects, 80 percent
of the greater of state or area median income as determined by the United States Department
of Housing and Urban Development, except that the housing developed or rehabilitated
with funds under this section must be affordable to the local work force;

(4) financing the operations and management of financially distressed residential
properties;

(5) funding of supportive services or staff of supportive services providers for supportive
housing as defined by section 462A.37, subdivision 1. Financial support to nonprofit housing
providers to finance supportive housing operations may be awarded as a capitalized reserve
or as an award of ongoing funding; and

(6) deleted text begin costs of operating deleted text end emergency shelter deleted text begin facilities deleted text end new text begin facility construction and operations new text end ,
including deleted text begin the costs of providing services deleted text end new text begin service provision new text end .

(b) Recipients must prioritize projects that provide affordable housing to households
that have incomes which do not exceed, for homeownership projects, 80 percent of the
greater of state or area median income as determined by the United States Department of
Housing and Urban Development, and for rental housing projects, 50 percent of the greater
of state or area median income as determined by the United States Department of Housing
and Urban Development. Priority may be given to projects that: reduce disparities in home
ownership; reduce housing cost burden, housing instability, or homelessness; improve the
habitability of homes; create accessible housing; or create more energy- or water-efficient
homes.

(c) Gap financing is either:

(1) the difference between the costs of the property, including acquisition, demolition,
rehabilitation, and construction, and the market value of the property upon sale; or

(2) the difference between the cost of the property and the amount the targeted household
can afford for housing, based on industry standards and practices.

(d) If aid under this section is used for demolition or removal of existing structures, the
cleared land must be used for the construction of housing to be owned or rented by persons
who meet the income limits of paragraph (a).

(e) If an aid recipient uses the aid on new construction of a building containing more
than four units, the loan recipient must construct, convert, or otherwise adapt the building
to include:

(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are
accessible units, and each accessible unit includes at least one roll-in shower, water closet,
and kitchen work surface meeting the requirements of section 1002 of the current State
Building Code Accessibility Provisions for Dwelling Units in Minnesota; and

(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are
sensory-accessible units that include:

(A) soundproofing between shared walls for first and second floor units;

(B) no florescent lighting in units and common areas;

(C) low-fume paint;

(D) low-chemical carpet; and

(E) low-chemical carpet glue in units and common areas.

Nothing in this paragraph relieves a project funded by this section from meeting other
applicable accessibility requirements.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2027 and thereafter.
new text end

Sec. 7.

Minnesota Statutes 2025 Supplement, section 477A.35, subdivision 5, is amended
to read:

Subd. 5.

Use of proceeds.

(a) Any funds distributed under this section must be spent on
a qualifying project. Funds are considered spent on a qualifying project if:

(1) a tier I city or county demonstrates to the Minnesota Housing Finance Agency that
the city or county cannot expend funds on a qualifying project by the deleted text begin deadline deleted text end new text begin deadlines new text end
imposed by deleted text begin paragraph (b) deleted text end new text begin this subdivision new text end due to factors outside the control of the city or
county; and

(2) the funds are transferred to a local housing trust fund.

Funds transferred to a local housing trust fund under this paragraph must be spent on a
deleted text begin project or household that meets the affordability requirements of subdivision 4, paragraph
deleted text end deleted text begin (a) deleted text end new text begin qualifying project new text end .

(b) Funds must be deleted text begin spent by December 31 in the third year following the year after the
deleted text end deleted text begin aid was received. The requirements of this paragraph are satisfied if funds are:
deleted text end

deleted text begin (1) deleted text end committed to a qualifying project by December 31 deleted text begin in deleted text end new text begin of new text end the third year following the
year deleted text begin after deleted text end the aid was received deleted text begin ; deleted text end and

deleted text begin (2) deleted text end expended by December 31 deleted text begin in deleted text end new text begin of new text end the fourth year following the year deleted text begin after deleted text end the aid was
received.

new text begin (c) Notwithstanding paragraph (b), aid that a tier I city or county will spend on a
qualifying affordable housing construction project or a qualifying emergency shelter facility
construction project under subdivision 4, as documented in the most recent annual report
submitted to the Minnesota Housing Finance Agency under subdivision 6, must be committed
to the project by December 31 of the fifth year following the year the aid was received and
expended by December 31 of the sixth year following the year the aid was received.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end An aid recipient may not use aid money to reimburse itself for prior expenditures.

deleted text begin (d) deleted text end new text begin (e) new text end Any program income generated from funds distributed under this section must
be used on a qualifying project.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2027 and thereafter.
new text end

Sec. 8.

Minnesota Statutes 2024, section 477A.35, subdivision 6, is amended to read:

Subd. 6.

Administration.

(a) The commissioner of revenue must compute the amount
of aid payable to each tier I city and county under this section. By August 1 of each year,
the commissioner must certify the distribution factors of each tier I city and county to be
used in the following year. The commissioner must pay local affordable housing aid annually
at the times provided in section 477A.015, distributing the amounts available on the
immediately preceding June 1 under the accounts established in section 477A.37, subdivisions
2 and 3.

(b) Beginning in 2025, tier I cities and counties shall submit a report annually, no later
than December 1 of each year, to the Minnesota Housing Finance Agency. The report must
include documentation of the location of any unspent funds distributed under this section
and of qualifying projects completed or planned with funds under this section. If a tier I
city or county fails to submit a report, if a tier I city or county fails to spend funds deleted text begin within
the timeline deleted text end new text begin by the deadlines new text end imposed under subdivision 5, deleted text begin paragraph (b), deleted text end if a tier I city or
county uses funds for a project that does not qualify under this section, or if a tier I city or
county fails to meet its requirements of subdivision 5a, the Minnesota Housing Finance
Agency shall notify the Department of Revenue and the cities and counties that must repay
funds under paragraph (c) by February 15 of the following year.

(c) By May 15, after receiving notice from the Minnesota Housing Finance Agency, a
tier I city or county must pay to the Minnesota Housing Finance Agency funds the city or
county received under this section if the city or county:

(1) fails to spend the funds deleted text begin within the time allowed deleted text end new text begin by the deadlines imposed new text end under
subdivision 5 deleted text begin , paragraph (b) deleted text end ;

(2) spends the funds on anything other than a qualifying project;

(3) fails to submit a report documenting use of the funds; or

(4) fails to meet the requirements of subdivision 5a.

(d) The commissioner of revenue must stop distributing funds to a tier I city or county
that requests in writing that the commissioner stop payment or that, in three consecutive
years, the Minnesota Housing Finance Agency has reported, pursuant to paragraph (b), to
have failed to use funds, misused funds, or failed to report on its use of funds. A request to
stop payment under this paragraph must be submitted to the commissioner in the form and
manner prescribed by the commissioner on or before May 1 of the aids payable year the
aid recipient wants the commissioner to stop payment of aid. The commissioner shall not
stop payment based on a request received after May 1 until the next aids payable year.

(e) The commissioner may resume distributing funds to a tier I city or county to which
the commissioner has stopped payments in the year following the August 1 after the
Minnesota Housing Finance Agency certifies that the city or county has submitted
documentation of plans for a qualifying project. The commissioner may resume distributing
funds to a tier I city or county to which the commissioner has stopped payments at the
request of the city or county in the year following the August 1 after the Minnesota Housing
Finance Agency certifies that the city or county has submitted documentation of plans for
a qualifying project.

(f) By June 1, any funds paid to the Minnesota Housing Finance Agency under paragraph
(c) must be deposited in the housing development fund. Funds deposited under this paragraph
are appropriated to the commissioner of the Minnesota Housing Finance Agency for use
on the family homeless prevention and assistance program under section 462A.204, the
economic development and housing challenge program under section 462A.33, and the
workforce and affordable homeownership development program under section 462A.38.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2027 and thereafter.
new text end

Sec. 9.

Minnesota Statutes 2024, section 477A.36, subdivision 4, is amended to read:

Subd. 4.

Qualifying projects.

(a) Qualifying projects shall include:

(1) emergency rental assistance for households earning less than 80 percent of area
median income as determined by the United States Department of Housing and Urban
Development;

(2) financial support to nonprofit affordable housing providers in their mission to provide
safe, dignified, affordable and supportive housing;

(3) outside the metropolitan counties as defined in section 473.121, subdivision 4,
development of market rate residential rental properties, as defined in section 462A.39,
subdivision 2, paragraph (d), if the relevant unit of government submits with the report
required under subdivision 6 a resolution and supporting documentation showing that the
area meets the requirements of section 462A.39, subdivision 4, paragraph (a);

(4) projects designed for the purpose of construction, acquisition, rehabilitation,
demolition or removal of existing structures, construction financing, permanent financing,
interest rate reduction, refinancing, and gap financing of housing to provide affordable
housing to households that have incomes which do not exceed, for homeownership projects,
115 percent of the greater of state or area median income as determined by the United States
Department of Housing and Urban Development and, for rental housing projects, 80 percent
of the greater of state or area median income as determined by the United States Department
of Housing and Urban Development, except that the housing developed or rehabilitated
with funds under this section must be affordable to the local work force;

(5) financing the operations and management of financially distressed residential
properties;

(6) funding of supportive services or staff of supportive services providers for supportive
housing as defined in section 462A.37, subdivision 1. Financial support to nonprofit housing
providers to finance supportive housing operations may be awarded as a capitalized reserve
or as an award of ongoing funding; and

(7) deleted text begin costs of operating deleted text end emergency shelter deleted text begin facilities deleted text end new text begin facility construction and operations new text end ,
including deleted text begin the costs of providing services deleted text end new text begin service provision new text end .

(b) Recipients must prioritize projects that provide affordable housing to households
that have incomes that do not exceed, for homeownership projects, 80 percent of the greater
of state or area median income as determined by the United States Department of Housing
and Urban Development, and for rental housing projects, 50 percent of the greater of state
or area median income as determined by the United States Department of Housing and
Urban Development. Priority may be given to projects that: reduce disparities in home
ownership; reduce housing cost burden, housing instability, or homelessness; improve the
habitability of homes; create accessible housing; or create more energy- or water-efficient
homes.

(c) Gap financing is either:

(1) the difference between the costs of the property, including acquisition, demolition,
rehabilitation, and construction, and the market value of the property upon sale; or

(2) the difference between the cost of the property and the amount the targeted household
can afford for housing, based on industry standards and practices.

(d) If aid under this section is used for demolition or removal of existing structures, the
cleared land must be used for the construction of housing to be owned or rented by persons
who meet the income limits of paragraph (a).

(e) If an aid recipient uses the aid on new construction of a building containing more
than four units, the loan recipient must construct, convert, or otherwise adapt the building
to include:

(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are
accessible units, and each accessible unit includes at least one roll-in shower, water closet,
and kitchen work surface meeting the requirements of section 1002 of the current State
Building Code Accessibility Provisions for Dwelling Units in Minnesota; and

(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are
sensory-accessible units that include:

(A) soundproofing between shared walls for first and second floor units;

(B) no florescent lighting in units and common areas;

(C) low-fume paint;

(D) low-chemical carpet; and

(E) low-chemical carpet glue in units and common areas.

Nothing in this paragraph relieves a project funded by this section from meeting other
applicable accessibility requirements.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2027 and thereafter.
new text end

Sec. 10.

Minnesota Statutes 2025 Supplement, section 477A.36, subdivision 5, is amended
to read:

Subd. 5.

Use of proceeds.

(a) Any funds distributed under this section must be spent on
a qualifying project. If a tier I city or county demonstrates to the Minnesota Housing Finance
Agency that the tier I city or county cannot expend funds on a qualifying project by the
deleted text begin deadline deleted text end new text begin deadlines new text end imposed by deleted text begin paragraph (b) deleted text end new text begin this subdivision new text end due to factors outside the
control of the tier I city or county, funds shall be considered spent on a qualifying project
if the funds are transferred to a local housing trust fund. Funds transferred to a local housing
trust fund must be spent on a deleted text begin project or household that meets the affordability requirements
of subdivision 4, paragraph (a) deleted text end new text begin qualifying project new text end .

new text begin (b) If a Tribal Nation demonstrates to the Minnesota Housing Finance Agency that the
Tribal Nation cannot expend funds on a qualifying project by the deadlines imposed by this
subdivision due to factors outside the control of the Tribal Nation, funds shall be considered
spent on a qualifying project if the funds are transferred to a Tribal housing fund overseen
by the Tribal Nation. Funds transferred to a Tribal housing fund must be spent on a qualifying
project.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end Funds must be deleted text begin spent by December 31 in the third year following the year after
deleted text end deleted text begin the aid was received. The requirements of this paragraph are satisfied if funds are:
deleted text end

deleted text begin (1) deleted text end committed to a qualifying project by December 31 deleted text begin in deleted text end new text begin of new text end the third year following the
year deleted text begin after deleted text end the aid was received deleted text begin ; deleted text end and

deleted text begin (2) deleted text end expended by December 31 deleted text begin in deleted text end new text begin of new text end the fourth year following the year deleted text begin after deleted text end the aid was
received.

new text begin (d) Notwithstanding paragraph (c), aid that a recipient will spend on a qualifying
affordable housing construction project or a qualifying emergency shelter facility construction
project under subdivision 4, as documented in the most recent annual report submitted to
the Minnesota Housing Finance Agency under subdivision 6, must be committed to the
project by December 31 of the fifth year following the year the aid was received and
expended by December 31 of the sixth year following the year the aid was received.
new text end

deleted text begin (c) deleted text end new text begin (e) new text end An aid recipient may not use aid funds to reimburse itself for prior expenditures.

deleted text begin (d) deleted text end new text begin (f) new text end Any program income generated from funds distributed under this section must
be used on a qualifying project.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2027 and thereafter.
new text end

Sec. 11.

Minnesota Statutes 2024, section 477A.36, subdivision 5a, is amended to read:

Subd. 5a.

Conditions for receipt.

(a) As a condition of receiving aid under this section,
a recipient must commit to using money to supplement, not supplant, existing locally funded
housing expenditures, so that the recipient is using the funds to create new or to expand
existing housing programs.

(b) In the annual report required under subdivision 6, a deleted text begin recipient deleted text end new text begin tier I city or county new text end
must certify compliance with this subdivision, including an accounting of locally funded
housing expenditures in the prior fiscal year. In deleted text begin an aid recipient's deleted text end new text begin a tier I city's or county's new text end
first report to the Minnesota Housing Finance Agency, the deleted text begin aid recipient deleted text end new text begin tier I city or county new text end
must document its locally funded housing expenditures in the two prior fiscal years. If a
deleted text begin recipient deleted text end new text begin tier I city or county new text end reduces one of its locally funded housing expenditures, the
deleted text begin recipient deleted text end new text begin tier I city or county new text end must detail the expenditure, the amount of the reduction, and
the reason for the reduction. The certification required under this paragraph must be made
available publicly on the deleted text begin recipient's deleted text end new text begin tier I city's or county's new text end website.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2027 and thereafter.
new text end

Sec. 12.

Minnesota Statutes 2024, section 477A.36, subdivision 6, is amended to read:

Subd. 6.

Administration.

(a) The commissioner of revenue must compute the amount
of aid payable to each aid recipient under this section. Beginning with aids payable in
calendar year 2024, before computing the amount of aid for counties and after receiving
the report required by subdivision 3, paragraph (e), the commissioner shall compute the
amount necessary to increase the amount in the account or accounts established under that
paragraph to $1,250,000. The amount calculated under the preceding sentence shall be
deducted from the amount available to counties for the purposes of certifying the amount
of aid to be paid to counties in the following year. By August 1 of each year, the
commissioner must certify the amount to be paid to each tier I city and county in the
following year. The commissioner must pay statewide local housing aid to tier I cities and
counties annually at the times provided in section 477A.015. Before paying the first
installment of aid annually, the commissioner of revenue shall transfer to the Minnesota
Housing Finance Agency from the funds available for counties, for deposit in the account
or accounts established under subdivision 3, paragraph (e), the amount computed in the
prior year to be necessary to increase the amount in the account or accounts established
under that paragraph to $1,250,000.

(b) Beginning in 2025, aid recipients shall submit a report annually, no later than
December 1 of each year, to the Minnesota Housing Finance Agency. The report shall
include documentation of the location of any unspent funds distributed under this section
and of qualifying projects completed or planned with funds under this section. If an aid
recipient fails to submit a report, fails to spend funds deleted text begin within the timeline deleted text end new text begin by the deadlines new text end
imposed under subdivision 5, deleted text begin paragraph (b), deleted text end uses funds for a project that does not qualify
under this section, or if an aid recipient fails to meet the requirements of subdivision 5a,
the Minnesota Housing Finance Agency shall notify the Department of Revenue and the
aid recipient must repay funds under paragraph (c) by February 15 of the following year.

(c) By May 15, after receiving notice from the Minnesota Housing Finance Agency, an
aid recipient must pay to the Minnesota Housing Finance Agency funds the aid recipient
received under this section if the aid recipient:

(1) fails to spend the funds deleted text begin within the time allowed deleted text end new text begin by the deadlines imposed new text end under
subdivision 5 deleted text begin , paragraph (b) deleted text end ;

(2) spends the funds on anything other than a qualifying project;

(3) fails to submit a report documenting use of the funds; or

(4) fails to meet the requirements of subdivision 5a.

(d) The commissioner of revenue must stop distributing funds to an aid recipient that
requests in writing that the commissioner stop payment or that the Minnesota Housing
Finance Agency reports to have, in three consecutive years, failed to use funds, misused
funds, or failed to report on its use of funds. A request to stop payment under this paragraph
must be submitted to the commissioner in the form and manner prescribed by the
commissioner on or before May 1 of the year prior to the aids payable year in which the
aid recipient wants the commissioner to stop payment of aid. The commissioner shall not
stop payment based on a request received after May 1 until aids payable based on certification
in the following calendar year.

(e) The commissioner may resume distributing funds to an aid recipient to which the
commissioner has stopped payments in the year following the August 1 after the Minnesota
Housing Finance Agency certifies that the city or county has submitted documentation of
plans for a qualifying project. The commissioner may resume distributing funds to an aid
recipient to which the commissioner has stopped payments at the request of the recipient
in the year following the August 1 after the Minnesota Housing Finance Agency certifies
that the recipient has submitted documentation of plans for a qualifying project.

(f) By June 1, any funds paid to the Minnesota Housing Finance Agency under paragraph
(c) must be deposited in the housing development fund. Funds deposited under this paragraph
are appropriated to the commissioner of the Minnesota Housing Finance Agency for use
on the family homeless prevention and assistance program under section 462A.204, the
economic development and housing challenge program under section 462A.33, and the
workforce and affordable homeownership development program under section 462A.38.

(g) An eligible Tribal Nation may choose to receive an aid distribution under this section
by submitting an application under this subdivision. An eligible Tribal Nation which has
not received a distribution in a prior aids payable year may elect to begin participation in
the program by submitting an application in the manner and form prescribed by the
commissioner of revenue by January 15 of the aids payable year. In order to receive a
distribution, an eligible Tribal Nation must certify to the commissioner of revenue the most
recent estimate of the total number of enrolled members of the eligible Tribal Nation. The
information must be annually certified by March 1 in the form prescribed by the
commissioner of revenue. The commissioner of revenue must annually calculate and certify
the amount of aid payable to each eligible Tribal Nation on or before August 1 of the aids
payable year. The commissioner of revenue must pay statewide local housing aid to eligible
Tribal Nations annually by December 27 of the year the aid is certified.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2027 and thereafter.
new text end

Sec. 13. new text begin FEDERAL ENFORCEMENT REIMBURSEMENT AID.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "City" means a statutory or home rule charter city.
new text end

new text begin (c) "Commissioner" means the commissioner of revenue.
new text end

new text begin (d) "Eligible costs" means any or all of the following costs incurred by the city in
association with federal enforcement actions:
new text end

new text begin (1) vehicle towing and impoundment;
new text end

new text begin (2) overtime, standby, on-call, or related costs for police, fire, first responders, and other
emergency personnel;
new text end

new text begin (3) overtime, standby, on-call, or related costs for nonemergency personnel; and
new text end

new text begin (4) other materials and supplies.
new text end

new text begin (e) "Federal enforcement actions" means the presence of United States Department of
Homeland Security immigration officials in Minnesota for purposes of federal immigration
enforcement between December 1, 2025, and May 31, 2026.
new text end

new text begin Subd. 2. new text end

new text begin Certification of costs. new text end

new text begin (a) By August 1, 2026, the administrator, manager, or
finance director of each city may submit to the commissioner a notarized certification of
eligible costs. The commissioner shall prescribe the form and manner of the certification.
new text end

new text begin (b) Costs certified to the commissioner under paragraph (a) are subject to audit by the
state auditor. Each city must maintain documentation of these costs until August 1, 2029.
new text end

new text begin Subd. 3. new text end

new text begin Distribution. new text end

new text begin (a) If the sum of eligible costs certified to the commissioner by
all cities under subdivision 2 is less than or equal to the total amount appropriated for aid
under subdivision 6, each city shall receive an amount of aid equal to the eligible costs
certified to the commissioner by the city.
new text end

new text begin (b) If the sum of eligible costs certified to the commissioner by all cities under subdivision
2 is greater than the total amount appropriated for aid under subdivision 6, each city shall
receive an amount of aid equal to the product of:
new text end

new text begin (1) the total amount appropriated for aid; and
new text end

new text begin (2) the ratio of the eligible costs certified to the commissioner by the city to the eligible
costs certified to the commissioner by all cities.
new text end

new text begin Subd. 4. new text end

new text begin Federal reimbursement. new text end

new text begin (a) Cities are encouraged to make reasonable, good
faith efforts to pursue federal reimbursement for eligible costs.
new text end

new text begin (b) A city that receives federal reimbursement for eligible costs on or before December
31, 2027, must return to the commissioner the lesser of the amount of the federal
reimbursement or the portion of aid received by the city under this section for the same
costs. Aid returned to the commissioner under this subdivision is canceled to the general
fund.
new text end

new text begin Subd. 5. new text end

new text begin Certification and payment. new text end

new text begin (a) By December 1, 2026, the commissioner must
calculate and certify the amount of aid payable to each city under this section.
new text end

new text begin (b) By December 26, 2026, the commissioner must pay federal enforcement
reimbursement aid to each city.
new text end

new text begin Subd. 6. new text end

new text begin Appropriation. new text end

new text begin (a) $2,000,000 in fiscal year 2027 is appropriated from the
general fund to the commissioner of revenue for aid payments under this section. This is a
onetime appropriation.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the
commissioner may retain up to five percent of the amount appropriated in paragraph (a) for
administrative costs of this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2026 only.
new text end

Sec. 14. new text begin FILLMORE COUNTY DISPARITY REDUCTION AID PAYMENTS.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 273.1398, the 2027 disparity reduction
aid payments for jurisdictions located in Fillmore County must include the 2024 and 2025
disparity reduction aid amounts that were not paid to the jurisdictions in those years. The
2024 and 2025 amounts are in addition to any aid determined for 2027, except that these
amounts cannot reduce any jurisdiction's levy in 2027 to less than $0.
new text end

new text begin (b) By April 1, 2027, the Fillmore County auditor must calculate and certify to the
commissioner of revenue the 2024 and 2025 disparity reduction aid amounts. To calculate
the total amount of disparity reduction aid for each jurisdiction in 2027, the county auditor
must first calculate the 2027 disparity reduction aid payments for jurisdictions in Fillmore
County pursuant to Minnesota Statutes, section 273.1398, without regard to the 2024 and
2025 disparity reduction aid amounts. The county auditor must then add any additional aid
amounts attributable to the 2024 and 2025 aid to each jurisdiction's 2027 disparity reduction
aid amount. Notwithstanding Minnesota Statutes, section 275.08, subdivision 1d, the 2024
and 2025 disparity reduction aid amounts may reduce below 90 percent of net tax capacity
the total adjusted local tax rate of all local governments combined within a unique taxing
jurisdiction in 2027.
new text end

new text begin (c) The commissioner of revenue must include the 2024 and 2025 disparity reduction
aid payments along with the certification for disparity reduction aid paid in 2027, pursuant
to Minnesota Statutes, section 273.1398, subdivision 6. The commissioner of revenue must
include the additional amounts from 2024 and 2025 in the payments for aid payable in 2027
to each affected local government, other than school districts. The commissioner of education
must include the additional amounts from 2024 and 2025 in the payment to school districts
for aid payable in 2027. No later than June 30, 2027, the commissioner of revenue and the
commissioner of education must deposit to the general fund any unspent money appropriated
under this section.
new text end

new text begin (d) $215,860 in fiscal year 2028 is appropriated from the general fund to the commissioner
of revenue for payments under this section to counties and towns. $250,790 in fiscal year
2028 is appropriated from the general fund to the commissioner of education for payments
under this section to school districts, intermediate school districts, or any group of school
districts levying as a single taxing entity.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 15. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, section 477A.30, subdivision 8, new text end new text begin is repealed.
new text end

ARTICLE 7

TAX INCREMENT FINANCING

Section 1.

Minnesota Statutes 2024, section 469.176, subdivision 2, is amended to read:

Subd. 2.

Excess increments.

(a) The authority deleted text begin shall deleted text end new text begin must new text end annually determine the amount
of excess increments for a district, if any. This determination must be based on the tax
increment financing plan in effect on December 31 of the year new text begin being reviewed new text end and the
increments deleted text begin and other revenues deleted text end received as of December 31 of the year. deleted text begin The authority must
spend or return the excess increments under paragraph (c) within nine months after the end
of the year. deleted text end new text begin If the authority determines there are excess increments for a district, within nine
months after December 31, the authority must:
new text end

new text begin (1) return the excess increments to the county auditor; and
new text end

new text begin (2) absent an outstanding qualifying pay-as-you-go contract and note, as defined under
section 469.1763, subdivision 4, paragraph (e), decertify the district.
new text end

new text begin (b) The requirement to decertify under paragraph (a) is deferred if:
new text end

new text begin (1) within nine months after December 31, a modification of the tax increment financing
plan is approved under section 469.175, subdivision 4; and
new text end

new text begin (2) the modification increases the total costs authorized to be paid with increments from
the district by an amount greater than the excess increment determined under paragraph (a).
new text end

new text begin (c) The deferral permitted under paragraph (b) expires nine months following the next
year for which:
new text end

new text begin (1) the authority determines an amount of excess increments exists;
new text end

new text begin (2) there are no further approved modifications to the tax increment financing plan that
increase the total costs authorized to be paid with increments from the district by an amount
greater than the excess increment; and
new text end

new text begin (3) the district has no outstanding qualifying pay-as-you-go contract and note.
new text end

deleted text begin (b) deleted text end new text begin (d) new text end For purposes of this subdivision, "excess increments" equals the excess of:

(1) total increments collected from the district since its certification, reduced by any
excess increments deleted text begin paid deleted text end new text begin returned new text end under paragraph deleted text begin (c), clause (4), deleted text end new text begin (e) new text end for a prior year, over

(2) the total costs authorized by the tax increment financing plan to be paid with
increments from the district, deleted text begin reduced, but not below zero, by the sum of:
deleted text end

deleted text begin (i) the amounts of those authorized costs that have been paid from sources other than
tax increments from the district;
deleted text end

deleted text begin (ii) revenues, other than tax increments from the district, that are dedicated for or
otherwise required to be used to pay those authorized costs and that the authority has received
and that are not included in item (i);
deleted text end

deleted text begin (iii) the amount of principal and interest obligations due on outstanding bonds after
December 31 of the year and not prepaid under paragraph (c) in a prior year; and
deleted text end

deleted text begin (iv) deleted text end increased by the sum of the transfers of increments made under section 469.1763,
subdivision 6, to reduce deficits in other districts made by December 31 of the year.

deleted text begin (c) The authority shall use excess increment only to do one or more of the following:
deleted text end

deleted text begin (1) prepay any outstanding bonds;
deleted text end

deleted text begin (2) discharge the pledge of tax increment for any outstanding bonds;
deleted text end

deleted text begin (3) pay into an escrow account dedicated to the payment of any outstanding bonds; or
deleted text end

deleted text begin (4) return the excess amount to deleted text end new text begin (e) new text end The county auditor deleted text begin who shall deleted text end new text begin must new text end distribute the
excess deleted text begin amount deleted text end new text begin increments returned under paragraph (a) new text end to the city or town, county, and
school district in which the tax increment financing district is located in direct proportion
to their respective local tax rates.

deleted text begin (d) For purposes of a district for which the request for certification was made prior to
August 1, 1979, excess increments equal the amount of increments on hand on December
31, less the principal and interest obligations due on outstanding bonds or advances,
qualifying under subdivision 1c, clauses (1), (2), (4), and (5), after December 31 of the year
and not prepaid under paragraph (c).
deleted text end

deleted text begin (e) deleted text end new text begin (f) new text end The county auditor must, prior to February 1 of each year, report to the
commissioner of education the amount of any excess tax increment distributed to a school
district for the preceding taxable year.

deleted text begin (f) For purposes of this subdivision, "outstanding bonds" means bonds which are secured
by increments from the district.
deleted text end

deleted text begin (g) The state auditor may exempt an authority from reporting the amounts calculated
under this subdivision for a calendar year, if the authority certifies to the auditor in its report
that the total amount authorized by the tax increment plan to be paid with increments from
the district exceeds the sum of the total increments collected for the district for all years by
20 percent.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to all districts and is effective for excess
increment determinations for calendar year 2026 and thereafter.
new text end

Sec. 2.

Laws 2021, First Special Session chapter 14, article 9, section 9, is amended to
read:

Sec. 9. CITY OF MOUNTAIN LAKE; TIF DISTRICT NO. 1-8; FIVE-YEAR RULE
EXTENSION.

(a) The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities
must be undertaken within a five-year period from the date of certification of a tax increment
financing district, is extended by deleted text begin a five-year deleted text end new text begin an eight-year new text end period new text begin to April 1, 2029, new text end for Tax
Increment Financing District No. 1-8, administered by the city of Mountain Lake or its
economic development authority.

(b) The requirement of Minnesota Statutes, section 469.1763, subdivision 4, relating to
the use of increment after the expiration of the five-year period under Minnesota Statutes,
section 469.1763, subdivision 3, is extended to the deleted text begin 11th deleted text end new text begin 14th new text end year for Tax Increment
Financing District No. 1-8.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Mountain Lake and its chief clerical officer comply with the requirements of
Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 3.

Laws 2021, First Special Session chapter 14, article 9, section 11, is amended to
read:

Sec. 11. CITY OF WAYZATA; TIF DISTRICT NO. 6; EXPENDITURES
ALLOWED.

new text begin (a) new text end Notwithstanding Minnesota Statutes, section 469.1763, subdivision 2, the city of
Wayzata may expend increments generated from Tax Increment Financing District No. 6
for the design and construction of the lakefront pedestrian walkway and community transient
lake public access infrastructure related to the Panoway on Wayzata Bay project, and all
such expenditures are deemed expended on activities within the district.

new text begin (b) Notwithstanding Minnesota Statutes, section 469.1763, subdivision 2, the city of
Wayzata may expend increments generated from Tax Increment Financing District No. 6
on the following projects:
new text end

new text begin (1) design and construction of the Eco Park, including shoreline restoration, marsh and
water quality improvements, a pier extension of the lakeside boardwalk, and creation of
eco-living classrooms;
new text end

new text begin (2) restoration of the Section Foreman House, including installation of a learning center
and community space; and
new text end

new text begin (3) expansion and remodeling of the Depot Park, including accessibility improvements
related to the Panoway on Wayzata Bay project.
new text end

new text begin (c) Notwithstanding Minnesota Statutes, section 469.1763, subdivisions 2, 3, and 4,
expenditures on projects in paragraph (b) are deemed expended on activities within the
district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Wayzata and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 4.

Laws 2025, First Special Session chapter 13, article 5, section 11, subdivision 3,
is amended to read:

Subd. 3.

Expiration.

The authority to approve a tax increment financing plan to establish
a tax increment financing district under this section expires December 31, deleted text begin 2026 deleted text end new text begin 2028 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Eden Prairie and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 5. new text begin CITY OF CHASKA; TAX INCREMENT FINANCING DISTRICT NO. 23.
new text end

new text begin Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, the Chaska
Economic Development Authority may collect tax increment from Chaska Tax Increment
Financing District No. 23 for up to 35 years after receipt of the first increment.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance by the governing bodies
of the city of Chaska, Carver County, and Independent School District No. 112 with the
requirements of Minnesota Statutes, section 469.1782, subdivision 2.
new text end

Sec. 6. new text begin CITY OF COLUMBIA HEIGHTS; ALATUS TAX INCREMENT
FINANCING DISTRICT; FIVE-YEAR RULE EXTENSION; SIX-YEAR RULE
EXTENSION; DURATION EXTENSION.
new text end

new text begin (a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for the Alatus Tax Increment Financing District in the city of Columbia Heights.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 469.176, subdivisions 1b and 1d, the
city of Columbia Heights or its economic development authority may elect to extend the
duration of the Alatus Tax Increment Financing District in the city of Columbia Heights by
five years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective the day after the governing body of the
city of Columbia Heights and its chief clerical officer comply with the requirements of
Minnesota Statutes, section 645.021, subdivisions 2 and 3. Paragraph (b) is effective upon
compliance by the governing bodies of the city of Columbia Heights, Anoka County, and
Independent School District No. 13 with the requirements of Minnesota Statutes, section
469.1782, subdivision 2.
new text end

Sec. 7. new text begin CITY OF HOPKINS; TAX INCREMENT FINANCING DISTRICT 1-6 (325
BLAKE); FIVE-YEAR RULE EXTENSION; SIX-YEAR RULE EXTENSION.
new text end

new text begin The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for Tax Increment Financing District 1-6 (325 Blake) in the city of Hopkins.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Hopkins and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

ARTICLE 8

PUBLIC FINANCE

Section 1.

Minnesota Statutes 2024, section 297A.993, subdivision 4, is amended to read:

Subd. 4.

Bonds.

(a) A county may, by resolution, authorize, issue, and sell its bonds,
notes, or other obligations for the purposes specified in subdivision 2. The county may also,
by resolution, issue bonds to refund the bonds issued pursuant to this subdivision.

(b) The bonds may be limited obligations, payable solely from or secured by taxes levied
under this section, and the county may also pledge its full faith, credit, and taxing power as
additional security for the bonds. A regional railroad authority within the county may also
pledge its taxing powers as additional security for the bonds.

(c) A county may issue and sell bonds in one or more series and without an election.
The county may determine how the bonds shall be secured; how the bonds will bear interest,
and the rate or rates, or variable rate; the rank or priority; how the bonds will be executed
and be payable, and how they will mature; and how the bonds will be subject to any defaults,
redemptions, repurchases, tender options, or other terms. The county may also determine
how the bonds shall be sold.

(d) The county may enter into and perform all contracts deemed necessary or desirable
by it to issue and secure the bonds, including an indenture of trust with a trustee located
within or outside of the state.

(e) Before issuing bonds qualifying under this section, the county must publish a notice
of its intention to issue the bonds and the date and time of a hearing to obtain public comment
on the matter. The notice must be published in the official newspaper of the county or in a
newspaper of general circulation in the county. The notice must be published at least deleted text begin 14 deleted text end new text begin
ten new text end , but not more than 28, days before the date of the hearing.

(f) Any project financed with bonds issued under this section must be included in a
capital improvement plan as defined in section 373.40, subdivision 3. For purposes of this
paragraph, "project" means any project described in subdivision 2, notwithstanding section
373.40, subdivision 1, paragraph (b).

(g) Except as otherwise provided in this subdivision, the bonds must be issued and sold
in the manner provided under chapter 475.

Sec. 2.

Minnesota Statutes 2024, section 469.060, subdivision 3, is amended to read:

Subd. 3.

Detail; maturity.

The port authority with the consent of its city's council shall
set the date, denominations, place of payment, form, and details of the bonds. deleted text begin The bonds
must mature serially. deleted text end The first installment must be due in not more than three years and the
last in not more than 30 years from the date of issuance.

ARTICLE 9

HENNEPIN COUNTY HEALTHCARE TAX

Section 1.

Minnesota Statutes 2024, section 473.756, is amended by adding a subdivision
to read:

new text begin Subd. 15. new text end

new text begin Qualifying government. new text end

new text begin The authority is a qualifying government for purposes
of section 118A.09, subdivision 1. Whenever the authority's investments are managed by
the county, the authority's additional long-term equity investment limitations as provided
in section 118A.09, subdivision 3, are calculated based on the county's most recent audited
statement of net position instead of the authority's most recent audited statement of net
position.
new text end

Sec. 2.

Minnesota Statutes 2024, section 473.757, subdivision 1, is amended to read:

Subdivision 1.

Ballpark grants.

The county may authorize, by resolution, and make
one or more grants to the authority for ballpark development and construction, public
infrastructure, new text begin capital improvement of the ballpark or public infrastructure within the
development area, new text end reserves for capital improvements, and other purposes related to the
ballpark on the terms and conditions agreed to by the county and the authority.

Sec. 3.

Minnesota Statutes 2024, section 473.757, subdivision 2, is amended to read:

Subd. 2.

Youth sports; library.

To the extent funds are available from collections of
the tax authorized by subdivision 10 after deleted text begin payment each year of debt service on the bonds
authorized and issued under subdivision 9 and deleted text end payments for the purposes described in
subdivision 1, the county may also authorize, by resolution, and expend or make grants to
the authority and to other governmental units and nonprofit organizations in an aggregate
amount of up to $4,000,000 annually, increased by up to 1.5 percent annually to fund equally:
(1) youth activities and youth and amateur sports within Hennepin County; and (2) the cost
of extending the hours of operation of Hennepin County libraries and Minneapolis public
libraries.

The money provided under this subdivision is intended to supplement and not supplant
county expenditures for these purposes as of May 27, 2006.

Hennepin County must provide reports to the chairs of the committees and budget
divisions in the senate and the house of representatives that have jurisdiction over education
policy and funding, describing the uses of the money provided under this subdivision. The
first report must be made by January 15, 2009, and subsequent reports must be made on
January 15 of each subsequent odd-numbered year.

Sec. 4.

Minnesota Statutes 2024, section 473.757, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin Hennepin County health care facilities. new text end

new text begin To the extent money is available
from collections of the tax authorized by subdivision 10 after payments for the purposes
described in subdivisions 1 and 2:
new text end

new text begin (1) the county must distribute $21,000,000 annually, subject to annual increases in
percentages acceptable to the county, to a private, nonprofit hospital located in Hennepin
County that is designated by the commissioner of health as an adult level I trauma hospital
according to section 144.605, subdivision 3, and provides statewide ground and air emergency
medical transportation services. The money must be used to fund uncompensated care
provided in facilities owned or operated by the eligible private, nonprofit hospital; and
new text end

new text begin (2) from the remainder of the money available, the county may only authorize, by
resolution, appropriations to fund any or all of the following:
new text end

new text begin (i) the development, construction, improvement, and equipping of county-owned or
county-operated health care facilities;
new text end

new text begin (ii) public infrastructure determined by the county to facilitate the development and use
of facilities described in item (i);
new text end

new text begin (iii) reserves for county-owned or county-operated health care facilities capital
improvements;
new text end

new text begin (iv) uncompensated care provided in county-owned or county-operated health care
facilities;
new text end

new text begin (v) other purposes related to county-owned or county-operated health care facilities,
including operating expenses for county-owned or county-operated health care facilities;
new text end

new text begin (vi) other purposes related to county public health services or priorities;
new text end

new text begin (vii) other county-identified services or programs, including housing programs and
housing with low barriers to entry, that address health-related social needs; and
new text end

new text begin (viii) debt service on bonds authorized and issued under subdivision 9.
new text end

Sec. 5.

Minnesota Statutes 2024, section 473.757, subdivision 3, is amended to read:

Subd. 3.

Expenditure limitations.

The amount that the county may grant or expend for
ballpark costs shall not exceed $260,000,000. The amount of any grant for capital
improvement reserves shall not exceed deleted text begin $1,000,000 deleted text end new text begin $9,000,000 new text end annually, subject to the
agreement under section 473.759, subdivision 3, and to annual increases according to an
inflation index acceptable to the county. The amount of grants or expenditures for land, site
improvements, and public infrastructure shall not exceed $90,000,000, excluding capital
improvement reserves, bond reserves, capitalized interest, and financing costs. The authority
to spend money for land, site improvements, and public infrastructure is limited to payment
of amounts incurred or for construction contracts entered into during the period ending five
years after the date of the issuance of the initial series of bonds under Laws 2006, chapter
257. Such grant agreements are valid and enforceable notwithstanding that they involve
payments in future years and they do not constitute a debt of the county within the meaning
of any constitutional or statutory limitation or for which a referendum is required.

Sec. 6.

Minnesota Statutes 2024, section 473.757, subdivision 4, is amended to read:

Subd. 4.

Property acquisition and disposition.

new text begin (a) new text end The county may acquire by purchase,
eminent domain, or gift, land, air rights, and other property interests within the development
area for the ballpark site and public infrastructure and convey it to the authority with or
without consideration, prepare a site for development as a ballpark, and acquire and construct
any related public infrastructure. The purchase of property and development of public
infrastructure financed with revenues under this section is limited to infrastructure within
the development area or within 1,000 feet of the border of the development area. The public
infrastructure may include the construction and operation of parking facilities within the
development area notwithstanding any law imposing limits on county parking facilities in
the city of Minneapolis. The county may acquire and construct property, facilities, and
improvements within the stated geographical limits for the purpose of drainage and
environmental remediation for property within the development area, walkways and a
pedestrian bridge to link the ballpark to Third Avenue distributor ramps, street and road
improvements and access easements for the purpose of providing access to the ballpark,
streetscapes, connections to transit facilities and bicycle trails, and any utility modifications
which are incidental to any utility modifications within the development area.

new text begin (b) The county or any of the county's subsidiaries may acquire by purchase, eminent
domain, or gift the land rights, air rights, and other property interests within the county for
health care facilities and related infrastructure.
new text end

new text begin (c) new text end To the extent property parcels or interests acquired are more extensive than the public
infrastructure requirements, the county may sell or otherwise dispose of the excess. The
proceeds from sales of excess property must be deposited in the debt service reserve fund.

Sec. 7.

Minnesota Statutes 2024, section 473.757, subdivision 7, is amended to read:

Subd. 7.

Local government expenditures.

The county may make expenditures or grants
for other costs incidental and necessary to further the purposes of Laws 2006, chapter 257, new text begin
and this act new text end and may by agreement, reimburse in whole or in part, any entity that has granted,
loaned, or advanced funds to the county to further the purposes of Laws 2006, chapter 257 new text begin ,
and this act new text end . The county shall reimburse a local governmental entity within its jurisdiction
or make a grant to such a governmental unit for site acquisition, preparation of the site for
ballpark development, and public infrastructure. Amounts expended by a local governmental
unit with the proceeds of a grant or under an agreement that provides for reimbursement by
the county shall not be deemed an expenditure or other use of local governmental resources
by the governmental unit within the meaning of any law or charter limitation. Exercise by
the county of its powers under this section shall not affect the amounts that the county is
otherwise eligible to spend, borrow, tax, or receive under any law.

Sec. 8.

Minnesota Statutes 2024, section 473.757, subdivision 8, is amended to read:

Subd. 8.

County authority.

It is the intent of the legislature that, except as expressly
limited herein, the county has the authority to acquire and develop a site for the ballpark
and public infrastructure, to enter into contracts with the authority and other governmental
or nongovernmental entities, to appropriate funds, new text begin to fund capital reserves and make capital
improvements, new text end and to make employees, consultants, and other revenues available for those
purposes.

Sec. 9.

Minnesota Statutes 2024, section 473.757, subdivision 9, is amended to read:

Subd. 9.

County revenue bonds.

new text begin (a) new text end The county may, by resolution, authorize, sell, and
issue revenue bonds to provide funds to make a grant or grants to the authority and to finance
all or a portion of the costs of site acquisition, site improvements, and other activities
necessary to prepare a site for development of a ballpark, to construct, improve, and maintain
the ballpark and to establish and fund any capital improvement reserves, and to acquire and
construct any related parking facilities and other public infrastructure and for other costs
incidental and necessary to further the purposes of Laws 2006, chapter 257. The county
may also, by resolution, issue bonds to refund the bonds issued pursuant to this section. The
bonds must be limited obligations, payable solely from or secured by taxes levied under
subdivision 10, and any other revenues to become available under Laws 2006, chapter 257.
The bonds may be issued in one or more series and sold without an election. The bonds
shall be sold in the manner provided by section 475.60. The bonds shall be secured, bear
the interest rate or rates or a variable rate, have the rank or priority, be executed in the
manner, be payable in the manner, mature, and be subject to the defaults, redemptions,
repurchases, tender options, or other terms, as the county may determine. The county may
enter into and perform all contracts deemed necessary or desirable by it to issue and secure
the bonds, including an indenture of trust with a trustee within or without the state. The debt
represented by the bonds shall not be included in computing any debt limitation applicable
to the county. Subject to this subdivision, the bonds must be issued and sold in the manner
provided in chapter 475. The bonds shall recite that they are issued under Laws 2006, chapter
257, and the recital shall be conclusive as to the validity of the bonds and the imposition
and pledge of the taxes levied for their payment. In anticipation of the issuance of the bonds
authorized under this subdivision and the collection of taxes levied under subdivision 10,
the county may provide funds for the purposes authorized by Laws 2006, chapter 257,
through temporary interfund loans from other available funds of the county which shall be
repaid with interest.

new text begin (b) The county may, by resolution, authorize, sell, and issue revenue bonds to provide
money to finance all or a portion of the costs of county-owned or county-operated health
care facilities, including but not limited to site acquisition, site improvements, and other
activities necessary to prepare a site for development of health care facilities and to construct,
maintain, and improve health care facilities; establish and fund any capital improvement
reserves; and acquire and construct any related parking facilities and related infrastructure.
The county may, by resolution, authorize, sell, and issue revenue bonds for other costs
incidental and necessary to further the purposes of this act. The county may also, by
resolution, issue bonds to refund the bonds issued pursuant to this section. The bonds may
be limited obligations, payable solely from or secured by taxes levied under subdivision
10, and any other revenues made available under this act, and the county may also pledge
its full faith, credit, and taxing power as additional security for the bonds. The bonds may
be issued in one or more series and sold without an election. The bonds must be secured,
bear the interest rate or rates or a variable rate, have the rank or priority, be executed in the
manner, be payable in the manner, mature, and be subject to the defaults, redemptions,
repurchases, tender options, or other terms, as the county may determine. The county may
enter into and perform all contracts deemed necessary or desirable to issue and secure the
bonds, including an indenture of trust with a trustee within or outside of the state. The debt
represented by the bonds must not be included in computing any debt limitation applicable
to the county. Subject to this subdivision, the bonds must be issued and sold in the manner
provided in chapter 475. The bonds must recite that they are issued under this act, and the
recital is conclusive as to the validity of the bonds and the imposition and pledge of the
taxes levied for payment of the bonds. In anticipation of the issuance of the bonds authorized
under this subdivision and the collection of taxes levied under subdivision 10, the county
may provide money for the purposes authorized by this act, through temporary interfund
loans from other available county money that must be repaid with interest.
new text end

Sec. 10.

Minnesota Statutes 2024, section 473.757, subdivision 10, is amended to read:

Subd. 10.

Sales and use tax.

(a) Notwithstanding section 477A.016, or other law, the
governing body of the county may by ordinance, impose a sales and use tax at the rate of
deleted text begin 0.15 deleted text end new text begin 0.25 new text end percent for the purposes listed in this section. The taxes authorized under this
section and the manner in which they are imposed are exempt from the rules of section
297A.99, subdivisions 2 and 3. The provisions of section 297A.99, except for subdivisions
2 and 3, apply to the imposition, administration, collection, and enforcement of this tax.

(b) The tax imposed under this section is not included in determining if the total tax on
lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986,
chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article
12, section 87, or in determining a tax that may be imposed under any other limitations.

Sec. 11.

Minnesota Statutes 2024, section 473.757, subdivision 11, is amended to read:

Subd. 11.

Uses of tax.

(a) Revenues received from the tax imposed under subdivision
10 may be used new text begin for the following and for no other purpose new text end :

(1) to pay costs of collection;

(2) to pay or reimburse or secure the payment of any principal of, premium, or interest
on bonds issued in accordance with Laws 2006, chapter 257, section 12 new text begin , and this act new text end ;

deleted text begin (3) to pay costs and make expenditures and grants described in this section, including
financing costs related to them;
deleted text end

deleted text begin (4) deleted text end new text begin (3) new text end to maintain reserves for the foregoing purposes deemed reasonable and appropriate
by the county;

deleted text begin (5) deleted text end new text begin (4) new text end to pay for operating costs of the ballpark authority other than the cost of operating
or maintaining the ballpark; deleted text begin and
deleted text end

deleted text begin (6) deleted text end new text begin (5) new text end to make expenditures and grants for youth activities and amateur sports and
extension of library hours as described in subdivision 2;

deleted text begin and for no other purpose.
deleted text end

new text begin (6) to make grants to the authority for capital improvement expenditures for purposes
permitted under subdivision 1;
new text end

new text begin (7) to make distributions to a private, nonprofit hospital as required under subdivision
2a, clause (1); and
new text end

new text begin (8) to make appropriations to fund expenditures for Hennepin County health care facilities
as described in subdivision 2a, clause (2), including financing costs related to the
expenditures.
new text end

(b) Revenues from the tax designated for use under paragraph (a), clause deleted text begin (5) deleted text end new text begin (4) new text end , must
be deposited in the operating fund of the ballpark authority.

(c) After completion of the ballpark and public infrastructure, the tax revenues not
required for current payments of the expenditures described in paragraph (a), clauses (1) to
deleted text begin (6) deleted text end new text begin (8) new text end , shall be used to deleted text begin (i) deleted text end new text begin (1) new text end redeem or defease the bonds new text begin , new text end and deleted text begin (ii) deleted text end new text begin (2) new text end prepay or establish
a fund for deleted text begin payment of future obligations under grants or other commitments for future
expenditures which are permitted by this section. Upon the redemption or defeasance of
the bonds and the establishment of reserves adequate to meet such future obligations, the
taxes shall terminate and shall not be reimposed deleted text end new text begin reserves adequate to meet the future
obligations new text end . For purposes of this subdivision, "reserves adequate to meet such future
obligations" means a reserve that does not exceed the net present value of the county's
obligation to make grants under paragraph (a), clauses deleted text begin (5) deleted text end new text begin (4) new text end and deleted text begin (6) deleted text end new text begin (5) new text end , and to fund the
reserve for capital improvements required under section 473.759, subdivision 3, for new text begin the later
of (i) new text end the 30-year period beginning on the date of the original issuance of the new text begin latest-issued
series of new text end bonds new text begin issued pursuant to subdivision 9 new text end , less those obligations that the county has
already paid new text begin , or (ii) the period extending through the final term of the agreement in section
473.759, subdivision 4, as the agreement may be modified or extended from time to time new text end .

Sec. 12.

Minnesota Statutes 2024, section 473.757, is amended by adding a subdivision
to read:

new text begin Subd. 12. new text end

new text begin Termination of tax. new text end

new text begin (a) The tax imposed under subdivision 10 expires 25
years after the tax is first imposed.
new text end

new text begin (b) The county's share of the reserve for capital improvements required under section
473.759, subdivision 3, applies until otherwise terminated, regardless of the termination of
the tax under paragraph (a).
new text end

Sec. 13.

Minnesota Statutes 2024, section 473.759, subdivision 3, is amended to read:

Subd. 3.

Reserve for capital improvements.

The authority shall require that a reserve
fund for capital improvements to the ballpark new text begin and public infrastructure within the
development area new text end be established and funded with annual payments of deleted text begin $2,000,000 deleted text end new text begin
$15,526,000 new text end , with the team's share of those payments to be approximately deleted text begin $1,000,000 deleted text end new text begin
$6,526,000 new text end , as determined by agreement of the team and county. The annual payments shall
increase according to an inflation index determined by the deleted text begin authority, provided that any
portion of the team's contribution that has already been reduced to present value shall not
increase according to an inflation index deleted text end new text begin county new text end . The authority may accept contributions
from the county or other source for the portion of the funding not required to be provided
by the team.

Sec. 14. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 13 are effective the day following final enactment.
new text end

ARTICLE 10

MINERALS

Section 1.

Minnesota Statutes 2024, section 298.225, is amended to read:

298.225 APPROPRIATION.

Subdivision 1.

Guaranteed distribution.

(a) Except as provided under deleted text begin paragraph deleted text end new text begin
paragraphs new text end (c) new text begin to (e) new text end , the distribution of the taconite production tax as provided in section
298.28, subdivisions 3 to 5, 6, deleted text begin paragraph deleted text end new text begin paragraphs new text end (b) new text begin and (c) new text end , 7, and 8, shall equal the
lesser of the following amounts:

(1) the amount distributed pursuant to this section and section 298.28, with respect to
1983 production if the production for the year prior to the distribution year is no less than
42,000,000 taxable tons. If the production is less than 42,000,000 taxable tons, the amount
of the distributions shall be reduced proportionately at the rate of two percent for each
1,000,000 tons, or part of 1,000,000 tons by which the production is less than 42,000,000
tons; or

(2)(i) for the distributions made pursuant to section 298.28, subdivisions 4, paragraphs
(b) and (c), and 6, paragraph (c), 31.2 percent of the amount distributed pursuant to this
section and section 298.28, with respect to 1983 production;

(ii) for the distributions made pursuant to section 298.28, subdivision 5, paragraphs (b)
and (d), 75 percent of the amount distributed pursuant to this section and section 298.28,
with respect to 1983 production provided that the aid guarantee for distributions under
section 298.28, subdivision 5, paragraph (b), shall be reduced by five cents per taxable ton
for production years 2014 and thereafter.

(b) The distribution of the taconite production tax as provided in section 298.28,
subdivision 2, shall equal the following amount:

(1) if the production for the year prior to the distribution year is at least 42,000,000
taxable tons, the amount distributed pursuant to this section and section 298.28 with respect
to 1999 production; or

(2) if the production for the year prior to the distribution year is less than 42,000,000
taxable tons, the amount distributed pursuant to this section and section 298.28 with respect
to 1999 production, reduced proportionately at the rate of two percent for each 1,000,000
tons or part of 1,000,000 tons by which the production is less than 42,000,000 tons.

(c) The distribution of the taconite production tax under section 298.28, subdivision 3,
paragraph (a), must equal the amount distributed under 298.28, with respect to 1983
production.

new text begin (d) For the two years after the year in which Mesabi Metallics or its successor begins
producing tonnage subject to the taxes under section 298.24, the distributions of the taconite
production tax to each school district under section 298.28, subdivision 4, paragraph (b),
clause (1), items (i) and (ii), must equal $100,000, and the distribution of the taconite
production tax under section 298.28, subdivision 4, paragraph (b), clause (1), item (iii),
must equal the amount distributed under section 298.28, with respect to 2023 production.
new text end

new text begin (e) For the two years after the year in which Mesabi Metallics or its successor begins
producing tonnage subject to the taxes under section 298.24, the distributions of the taconite
production tax under section 298.28, subdivision 4, paragraph (b), clause (2), items (i) to
(v), must equal the amounts distributed under section 298.28, with respect to 2023 production,
and the distributions of the taconite production tax to each school district under section
298.28, subdivision 4, paragraph (b), clause (2), item (vi), subitems (A) and (B), must equal
$150,000.
new text end

new text begin (f) For the two years after the year in which Mesabi Metallics or its successor begins
producing tonnage subject to the taxes under section 298.24, the distribution of the taconite
production tax under section 298.28, subdivision 11, paragraph (d), must equal 75 percent
of the amount that each school district received under Minnesota Statutes 1978, section
294.26, in calendar year 1977.
new text end

new text begin (g) For the two years after the year in which Mesabi Metallics or its successor begins
producing tonnage subject to the taxes under section 298.24, the distributions of the taconite
production tax to each of the city of Orr and the city of Winton under section 298.282,
subdivision 1, paragraph (a), must equal $25,000, and the distributions of the taconite
production tax to each of the city of Cook and the city of Two Harbors under section 298.282,
subdivision 1, paragraph (a), must equal $75,000.
new text end

Subd. 2.

Funding guaranteed distribution level.

new text begin (a) new text end The money necessary for funding
the difference between the initial distribution made pursuant to section 298.28 and the
amount guaranteed in subdivision 1 new text begin , paragraphs (a) to (c), new text end is appropriated in equal proportions
from the initial current year distributions to the taconite environmental protection fund and
to the Douglas J. Johnson economic protection trust pursuant to section 298.28. If the initial
distributions to the taconite environmental protection fund and the Douglas J. Johnson
economic protection trust are insufficient to fund the difference, the commissioner of Iron
Range resources and rehabilitation shall make the payments of any remaining difference
from the corpus of the taconite environmental protection fund and the corpus of the Douglas
J. Johnson economic protection trust fund in equal proportions as directed by the
commissioner of revenue.

new text begin (b) The money necessary for funding the difference between the initial distribution made
pursuant to section 298.28 and the amount guaranteed in subdivision 1, paragraphs (d) to
(g), is appropriated from the initial current year distribution to the Douglas J. Johnson
economic protection trust pursuant to section 298.28. If the initial distribution to the Douglas
J. Johnson economic protection trust is insufficient to fund the difference, the commissioner
of Iron Range resources and rehabilitation shall make the payments of any remaining
difference from the corpus of the Douglas J. Johnson economic protection trust fund as
directed by the commissioner of revenue.
new text end

new text begin (c) new text end If a taconite producer ceases beneficiation operations permanently and is required
by a special law to make bond payments for a school district, the Douglas J. Johnson
economic protection trust fund shall assume the payments of the taconite producer if the
producer ceases to make the needed payments. The commissioner of Iron Range resources
and rehabilitation shall make these school bond payments from the corpus of the Douglas
J. Johnson economic protection trust fund in the amounts certified by the commissioner of
revenue.

Sec. 2.

Minnesota Statutes 2024, section 298.227, is amended to read:

298.227 TACONITE ECONOMIC DEVELOPMENT FUND.

new text begin (a) Except as provided in paragraph (b), new text end an amount equal to that distributed pursuant to
each taconite producer's taxable production and qualifying sales under section 298.28,
subdivision 9a, shall be held by the commissioner of Iron Range resources and rehabilitation
in a separate taconite economic development fund for each taconite and direct reduced ore
producer. Money from the fund for each producer shall be released by the commissioner
after review by a joint committee consisting of an equal number of representatives of the
salaried employees and the nonsalaried production and maintenance employees of that
producer. The District 11 director of the United States Steelworkers of America, on advice
of each local employee president, shall select the employee members. In nonorganized
operations, the employee committee shall be elected by the nonsalaried production and
maintenance employees. The review must be completed no later than six months after the
producer presents a proposal for expenditure of the funds to the committee. The funds held
pursuant to this section may be released only for workforce development, concurrent
reclamation, plant and stationary mining equipment, facilities for the producer, or for research
and development in Minnesota on new mining, taconite, iron, or steel production technology,
but only if the producer provides a matching expenditure equal to the amount of the
distribution to be used for the same purpose. If a proposed expenditure is not approved by
the commissioner, after consultation with the advisory board, the funds must be deposited
in the taconite environmental protection fund under sections 298.222 to 298.225. If a taconite
production facility is sold after operations at the facility had ceased, any money remaining
in the fund for the former producer may be released to the purchaser of the facility on the
terms otherwise applicable to the former producer under this section. If a producer fails to
provide matching funds for a proposed expenditure within six months after the commissioner
approves release of the funds, the funds may be released by the commissioner for deposit
in the taconite area environmental protection fund created in section 298.223. Any portion
of the fund which is not released by the commissioner within one year of its deposit in the
fund shall be distributed to the taconite environmental protection fund.

new text begin (b) Notwithstanding any provision to the contrary, a producer operating Mesabi Metallics
or its successor may not receive a distribution under this section.
new text end

Sec. 3.

Minnesota Statutes 2024, section 298.28, subdivision 2, is amended to read:

Subd. 2.

City or town where quarried or produced.

(a) 4.5 cents per gross ton of
merchantable iron ore concentrate, hereinafter referred to as "taxable ton," new text begin produced by
each producer except Mesabi Metallics or its successor, plus one cent per taxable ton
produced in 2023 from the proceeds of the taxes collected under section 298.24 from Mesabi
Metallics or its successor, new text end plus the amount provided in paragraph (c), must be allocated to
the city or town in the county in which the lands from which taconite was mined or quarried
were located or within which the concentrate was produced. If the mining, quarrying, and
concentration, or different steps in either thereof are carried on in more than one taxing
district, the commissioner shall apportion equitably the proceeds of the part of the tax going
to cities and towns among such subdivisions upon the basis of attributing 50 percent of the
proceeds of the tax to the operation of mining or quarrying the taconite, and the remainder
to the concentrating plant and to the processes of concentration, and with respect to each
thereof giving due consideration to the relative extent of such operations performed in each
such taxing district. The commissioner's order making such apportionment shall be subject
to review by the Tax Court at the instance of any of the interested taxing districts, in the
same manner as other orders of the commissioner.

(b)(1) Four cents per taxable ton new text begin produced by each producer except Mesabi Metallics
or its successor, and one cent per taxable ton produced in 2023 from the proceeds of the
taxes collected under section 298.24 from Mesabi Metallics or its successor new text end shall be allocated
to cities and deleted text begin organized deleted text end townships affected by mining because their boundaries are within
three miles of a taconite mine pit that:

(i) was actively mined by LTV Steel Mining Company in 1999; or

(ii) has been actively mined in at least one of the prior three years.

(2) If a city or town is located near more than one mine meeting the criteria under this
paragraph, the city or town is eligible to receive aid calculated from only the mine producing
the largest taxable tonnage. When more than one municipality qualifies for aid based on
one company's production, the aid must be apportioned among the municipalities in
proportion to their populations. The amounts distributed under this paragraph to each
deleted text begin municipality deleted text end new text begin city and organized township new text end must be used for infrastructure improvement
projects. new text begin The amounts distributed under this paragraph to counties on behalf of each
unorganized township must be used by the county for infrastructure improvement projects
within the unorganized township.
new text end

(c) The amount that would have been computed for the current year under Minnesota
Statutes 2008, section 126C.21, subdivision 4, for a school district shall be distributed to
the cities and townships within the school district in the proportion that their taxable net tax
capacity within the school district bears to the taxable net tax capacity of the school district
for property taxes payable in the year prior to distribution.

Sec. 4.

Minnesota Statutes 2024, section 298.28, subdivision 3, is amended to read:

Subd. 3.

Cities; towns.

(a) 12.5 cents per taxable ton deleted text begin , deleted text end new text begin produced by each producer except
Mesabi Metallics or its successor, plus two cents per taxable ton produced in 2023 from the
proceeds of the taxes collected under section 298.24 from Mesabi Metallics or its successor, new text end
less any amount distributed under subdivision 8, and paragraph (b), must be allocated to
the taconite municipal aid account to be distributed as provided in section 298.282. The
amount allocated to the taconite municipal aid account must be annually increased in the
same proportion as the increase in the implicit price deflator as provided in section 298.24,
subdivision 1.

(b) An amount must be allocated to towns or cities that is annually certified by the county
auditor of a county containing a taconite tax relief area as defined in section 273.134,
paragraph (b), within which there is (1) an organized township if, as of January 2, 1982,
more than 75 percent of the assessed valuation of the township consists of iron ore or (2) a
city if, as of January 2, 1980, more than 75 percent of the assessed valuation of the city
consists of iron ore.

(c) The amount allocated under paragraph (b) will be the portion of a township's or city's
certified levy equal to the proportion of (1) the difference between 50 percent of January
2, 1982, assessed value in the case of a township and 50 percent of the January 2, 1980,
assessed value in the case of a city and its current assessed value to (2) the sum of its current
assessed value plus the difference determined in (1), provided that the amount distributed
shall not exceed $55 per capita in the case of a township or $75 per capita in the case of a
city. For purposes of this limitation, population will be determined according to the 1980
decennial census conducted by the United States Bureau of the Census. If the current assessed
value of the township exceeds 50 percent of the township's January 2, 1982, assessed value,
or if the current assessed value of the city exceeds 50 percent of the city's January 2, 1980,
assessed value, this paragraph shall not apply. For purposes of this paragraph, "assessed
value," when used in reference to years other than 1980 or 1982, means the appropriate net
tax capacities multiplied by 10.2.

(d) In addition to other distributions under this subdivision, three cents per taxable ton
for distributions in 2009 must be allocated for distribution to towns that are entirely located
within the taconite tax relief area defined in section 273.134, paragraph (b). For distribution
in 2010 through 2014 and for distribution in 2018 and subsequent years, the three-cent
amount must be annually increased in the same proportion as the increase in the implicit
price deflator as provided in section 298.24, subdivision 1. The amount available under this
paragraph will be distributed to eligible towns on a per capita basis, provided that no town
may receive more than deleted text begin $50,000 deleted text end new text begin $70,000 new text end in any year under this paragraph. Any amount of
the distribution that exceeds the deleted text begin $50,000 deleted text end new text begin $70,000 new text end limitation for a town under this paragraph
must be redistributed on a per capita basis among the other eligible towns, to whose
distributions do not exceed deleted text begin $50,000 deleted text end new text begin $70,000 new text end .

Sec. 5.

Minnesota Statutes 2024, section 298.28, subdivision 4, is amended to read:

Subd. 4.

School districts.

(a) 32.15 cents per taxable ton deleted text begin , deleted text end new text begin produced by each producer
except Mesabi Metallics or its successor, plus 32.72 cents per taxable ton produced by
Mesabi Metallics or its successor, plus 4.57 cents per taxable ton produced in 2023 from
the proceeds of the taxes collected under section 298.24 from Mesabi Metallics or its
successor, plus $300,000 from the proceeds of the taxes collected under section 298.24 from
Mesabi Metallics or its successor, plus the increase provided in paragraph (b), clause (3), new text end
plus the increase provided in paragraph (d), less the amount that would have been computed
under Minnesota Statutes 2008, section 126C.21, subdivision 4, for the current year for that
district, must be allocated to qualifying school districts to be distributed, based upon the
certification of the commissioner of revenue, under paragraphs (b), (c), and (f).

(b) deleted text begin (i) deleted text end new text begin (1) new text end 3.43 cents per taxable ton new text begin produced by each producer except Mesabi Metallics
or its successor, and 4.57 cents per taxable ton produced in 2023 from the proceeds of the
taxes collected under section 298.24 from Mesabi Metallics or its successor new text end must be
distributed deleted text begin to the school districts in which the lands from which taconite was mined or
quarried were located or within which the concentrate was produced. deleted text end new text begin as follows:
new text end

new text begin (i) $100,000 from the proceeds of Mesabi Metallics or its successor to Independent
School District No. 695, Chisholm, or its successor district;
new text end

new text begin (ii) $100,000 from the proceeds of Mesabi Metallics or its successor to Independent
School District No. 696, Ely, or its successor district; and
new text end

deleted text begin The distribution must be deleted text end new text begin (iii) the remainder to school districts in which the lands from
which taconite was mined or quarried were located or within which the concentrate was
produced, new text end based on the apportionment formula prescribed in subdivision 2.

deleted text begin (ii) deleted text end new text begin (2) new text end Four cents per taxable ton deleted text begin from each taconite facility deleted text end new text begin produced by each producer
except Mesabi Metallics or its successor, plus eight cents per taxable ton produced by Mesabi
Metallics or its successor, plus $300,000 from the proceeds of the taxes collected under
section 298.24 from Mesabi Metallics or its successor new text end must be distributed to each affected
school district for deposit in a fund dedicated to building maintenance and repairs, as follows:

deleted text begin (1) deleted text end new text begin (i) new text end proceeds from Keewatin Taconite or its successor are distributed to Independent
School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor
districts;

deleted text begin (2) deleted text end new text begin (ii) new text end proceeds from the Hibbing Taconite Company or its successor are distributed to
Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor
districts;

deleted text begin (3) deleted text end new text begin (iii) new text end proceeds from the Mittal Steel Company and Minntac or their successors are
distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, deleted text begin 706, Virginia, deleted text end
2711, Mesabi East, and deleted text begin 2154, Eveleth-Gilbert deleted text end new text begin 2909, Rock Ridge new text end , or their successor districts;

deleted text begin (4) deleted text end new text begin (iv) new text end proceeds from the Northshore Mining Company or its successor are distributed
to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior, or
their successor districts; deleted text begin and
deleted text end

deleted text begin (5) deleted text end new text begin (v) new text end proceeds from United Taconite or its successor are distributed to Independent
School Districts Nos. 2142, St. Louis County, and deleted text begin 2154, Eveleth-Gilbert deleted text end new text begin 2909, Rock Ridge new text end ,
or their successor districts deleted text begin . deleted text end new text begin ; and
new text end

new text begin (vi) proceeds from Mesabi Metallics or its successor are distributed as follows:
new text end

new text begin (A) $150,000 to Independent School District No. 318, Grand Rapids, or its successor
district;
new text end

new text begin (B) $150,000 to Independent School District No. 696, Ely, or its successor district; and
new text end

new text begin (C) eight cents per taxable ton to Independent School District Nos. 316, Greenway, and
319, Nashwauk-Keewatin, or their successor districts.
new text end

Revenues that are required to be distributed to more than one district shall be apportioned
according to the number of pupil units identified in section 126C.05, subdivision 1, enrolled
in the second previous year.

new text begin (3) Each school district that received a distribution under clause (2) in distribution year
2024 shall receive, from the proceeds of the taxes collected under section 298.24 from
Mesabi Metallics or its successor, an additional four cents per taxable ton produced in 2023
by the producer from which the school district received a distribution under clause (2) in
distribution year 2024.
new text end

(c) deleted text begin (i) deleted text end new text begin (1) new text end 24.72 cents per taxable ton, less any amount distributed under paragraph (e),
shall be distributed to a group of school districts comprised of those school districts which
qualify as a tax relief area under section 273.134, paragraph (b), or in which there is a
qualifying municipality as defined by section 273.134, paragraph (a), in direct proportion
to school district indexes as follows: for each school district, its pupil units determined
under section 126C.05 for the prior school year shall be multiplied by the ratio of the average
adjusted net tax capacity per pupil unit for school districts receiving aid under this clause
as calculated pursuant to chapters 122A, 126C, and 127A for the school year ending prior
to distribution to the adjusted net tax capacity per pupil unit of the district. Each district
shall receive that portion of the distribution which its index bears to the sum of the indices
for all school districts that receive the distributions.

deleted text begin (ii) deleted text end new text begin (2) new text end Notwithstanding clause deleted text begin (i) deleted text end new text begin (1) new text end , each school district that receives a distribution
under sections 298.018; 298.24; and 298.25 to 298.28, exclusive of any amount received
under this clause; 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law imposing a
tax on severed mineral values after reduction for any portion distributed to cities and towns
under section 126C.48, subdivision 8, paragraph (5), that is less than the amount of its levy
reduction under section 126C.48, subdivision 8, for the second year prior to the year of the
distribution shall receive a distribution equal to the difference; the amount necessary to
make this payment shall be derived from proportionate reductions in the initial distribution
to other school districts under clause deleted text begin (i) deleted text end new text begin (1) new text end . If there are insufficient tax proceeds to make
the distribution provided under this paragraph in any year, money must be transferred from
the taconite property tax relief account in subdivision 6, to the extent of the shortfall in the
distribution.

(d)(1) Any school district described in paragraph (c) where a levy increase pursuant to
section 126C.17, subdivision 9, was authorized by referendum for taxes payable in 2001,
shall receive a distribution of 21.3 cents per new text begin taxable new text end ton. Each district shall receive $175
times the pupil units identified in section 126C.05, subdivision 1, enrolled in the second
previous year or the 1983-1984 school year, whichever is greater, less the product of 1.8
percent times the district's taxable net tax capacity in 2011.

(2) Districts qualifying under paragraph (c) must receive additional taconite aid each
year equal to 22.5 percent of the amount obtained by subtracting:

(i) 1.8 percent of the district's net tax capacity for 2011, from:

(ii) the district's weighted average daily membership for fiscal year 2012, multiplied by
the sum of:

(A) $415, plus

(B) the district's referendum revenue allowance for fiscal year 2013.

If the total amount provided by paragraph (d) is insufficient to make the payments herein
required then the entitlement of $175 per pupil unit shall be reduced uniformly so as not to
exceed the funds available. Any amounts received by a qualifying school district in any
fiscal year pursuant to paragraph (d) shall not be applied to reduce general education aid
which the district receives pursuant to section 126C.13 or the permissible levies of the
district. Any amount remaining after the payments provided in this paragraph shall be paid
to the commissioner of Iron Range resources and rehabilitation who shall deposit the same
in the taconite environmental protection fund and the Douglas J. Johnson economic protection
trust fund as provided in subdivision 11.

Each district receiving money according to this paragraph shall reserve the lesser of the
amount received under this paragraph or $25 times the number of pupil units served in the
district. It may use the money for early childhood programs.

(e) There shall be distributed to any school district the amount which the school district
was entitled to receive under section 298.32 in 1975.

(f) Four cents per taxable ton must be distributed to qualifying school districts according
to the distribution specified in paragraph (b), clause deleted text begin (ii) deleted text end new text begin (2) new text end , and 11 cents per taxable ton
must be distributed according to the distribution specified in paragraph (c). These amounts
are not subject to section 126C.48, subdivision 8.

Sec. 6.

Minnesota Statutes 2024, section 298.28, subdivision 7a, is amended to read:

Subd. 7a.

Iron Range schools and community development account.

(a) The following
amounts must be allocated to the commissioner of Iron Range resources and rehabilitation
to be deposited in the Iron Range schools and community development account that is
hereby created:

(1)(i) for distributions in 2024 through 2032, 24 cents per taxable ton of the tax imposed
under section 298.24, (ii) for distributions beginning in 2033, ten cents per taxable ton of
the tax imposed under section 298.24;

(2) the amount as determined under section 298.17, paragraph (b), clause (3); deleted text begin and
deleted text end

(3) new text begin for distributions in the year after the year in which Mesabi Metallics or its successor
begins producing tonnage subject to the taxes under section 298.24 through 2050, 20 cents
per taxable ton produced by Mesabi Metallics or its successor, provided that the allocation
under this clause must only be used for projects within Independent School District No.
316, Greenway, that are approved by referendum within five years of the date Mesabi
Metallics or its successor begins producing tonnage subject to the taxes under section 298.24,
and that are approved by the commissioner of Iron Range resources and rehabilitation after
review by the Iron Range Resources and Rehabilitation Advisory Board. If projects are not
approved by referendum within five years of the date Mesabi Metallics or its successor
begins producing tonnage subject to the taxes under section 298.24, or if the commissioner
determines that the allocation exceeds the amount necessary for approved projects, the
remainder of the allocation under this clause must be used as provided under paragraph (b);
and
new text end

new text begin (4) new text end any other amount as provided by law.

(b) Expenditures from this account new text begin , except as provided in paragraph (a), clause (3), new text end may
be approved as ongoing annual expenditures and shall be made only deleted text begin to provide deleted text end new text begin for new text end
disbursements to assist school districts with the payment of bonds that were issued for
qualified school projects, deleted text begin or for any deleted text end other new text begin disbursements to new text end school deleted text begin disbursement as approved
by the commissioner of Iron Range resources and rehabilitation after consultation with the
Iron Range Resources and Rehabilitation Board deleted text end new text begin districts, or community development new text end . For
purposes of this section, "qualified school projects" means school projects within the taconite
assistance area as defined in section 273.1341, that were (1) approved, by referendum, after
April 3, 2006; and (2) approved by the commissioner of education pursuant to section
123B.71.

(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for
bonds issued under section 123A.482, subdivision 9, must be increased each year to offset
any reduction in debt service equalization aid that the school district qualifies for in that
year, under section 123B.53, subdivision 6, compared with the amount the school district
qualified for in fiscal year 2018.

(d) No expenditure under this section shall be made unless approved by the commissioner
of Iron Range resources and rehabilitation after consultation with the Iron Range Resources
and Rehabilitation new text begin Advisory new text end Board.

Sec. 7.

Minnesota Statutes 2024, section 298.28, subdivision 8, is amended to read:

Subd. 8.

Range Association of Municipalities and Schools.

0.50 cent per taxable ton new text begin
produced by each producer except Mesabi Metallics or its successor new text end shall be paid to the
Range Association of Municipalities and Schools, for the purpose of providing an areawide
approach to problems which demand coordinated and cooperative actions and which are
common to those areas of northeast Minnesota affected by operations involved in mining
iron ore and taconite and producing concentrate therefrom, and for the purpose of promoting
the general welfare and economic development of the cities, towns, and school districts
within the Iron Range area of northeast Minnesota.

Sec. 8.

Minnesota Statutes 2024, section 298.28, subdivision 9a, is amended to read:

Subd. 9a.

Taconite economic development fund.

(a) 25.1 cents per new text begin taxable new text end ton deleted text begin for
distributions in 2002 and thereafter deleted text end new text begin produced by each producer except Mesabi Metallics or
its successor new text end must be paid to the taconite economic development fund. No distribution shall
be made under this paragraph in deleted text begin 2004 deleted text end new text begin 2027 new text end or any subsequent year in which total industry
production new text begin in the preceding year, excluding production by MagIron or its successor at Plant
4 in Arbo Township and production by Mesabi Metallics or its successor, new text end falls below 30
million tons. Distribution shall only be made to a Minnesota taconite pellet producer's fund
under section 298.227 if the producer timely pays its tax under section 298.24 by the dates
provided under section 298.27, or pursuant to the due dates provided by an administrative
agreement with the commissioner.

(b) An amount equal to 50 percent of the deleted text begin tax deleted text end new text begin taxes collected new text end under section 298.24 new text begin from
each producer except Mesabi Metallics or its successor new text end for concentrate sold in the form of
pellet chips and fines not exceeding 5/16 inch in size and not including crushed pellets shall
be paid to the taconite economic development fund. The amount paid shall not exceed
$700,000 annually for all Minnesota taconite pellet producers. If the initial amount to be
paid to the fund exceeds this amount, each Minnesota taconite pellet producer's payment
shall be prorated so the total does not exceed $700,000.

Sec. 9.

Minnesota Statutes 2024, section 298.28, subdivision 9b, is amended to read:

Subd. 9b.

Taconite environmental fund.

Five cents per new text begin taxable new text end ton must be paid to the
taconite environmental fund for use under section 298.2961, subdivision 4.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10.

Minnesota Statutes 2024, section 298.28, is amended by adding a subdivision to
read:

new text begin Subd. 10a. new text end

new text begin Insufficient proceeds. new text end

new text begin If the proceeds of the taxes collected under section
298.24 from Mesabi Metallics or its successor are insufficient to fund the allocations
designated from those proceeds under this section, the allocations designated from those
proceeds that are not calculated based on taxable tonnage produced by Mesabi Metallics or
its successor must be proportionally decreased such that the proceeds of the taxes collected
under section 298.24 from Mesabi Metallics or its successor are sufficient to fund the
allocations designated from those proceeds under this section.
new text end

Sec. 11.

Minnesota Statutes 2024, section 298.28, subdivision 11, is amended to read:

Subd. 11.

Remainder.

(a) The proceeds of the tax imposed by section 298.24 which
remain after the distributions and payments in subdivisions 2 to deleted text begin 10a deleted text end new text begin 10 new text end , as certified by the
commissioner of revenue, and paragraphs (b), (c), and (d) have been made, together with
interest earned on all money distributed under this section prior to distribution, shall be
divided between the taconite environmental protection fund created in section 298.223 and
the Douglas J. Johnson economic protection trust fund created in section 298.292 as follows:
Two-thirds to the taconite environmental protection fund and one-third to the Douglas J.
Johnson economic protection trust fund. The proceeds shall be placed in the respective
special accounts.

(b) There shall be distributed to each city, town, and county the amount that it received
under Minnesota Statutes 1978, section 294.26, in calendar year 1977; provided, however,
that (1) the amount distributed in 1981 to the unorganized territory number 2 of Lake County
and the town of Beaver Bay based on the between-terminal trackage of Erie Mining Company
will be distributed in 1982 and subsequent years to the unorganized territory number 2 of
Lake County and the towns of Beaver Bay and Stony River based on the miles of track of
Erie Mining Company in each taxing district; and (2) a city located within six miles of five
other cities qualifying for a distribution under section 298.282 shall receive a distribution
equal to $5,000 under this paragraph in calendar year 2020 and subsequent years. The
distribution to all other cites and towns receiving a distribution under this paragraph shall
be reduced by the ratio that $5,000 bears to the total aid distribution received by all cities
and towns under this paragraph.

(c) There shall be distributed to the Iron Range resources and rehabilitation account the
amounts it received in 1977 under Minnesota Statutes 1978, section 298.22. The amount
distributed under this paragraph shall be expended within or for the benefit of the taconite
assistance area defined in section 273.1341.

(d) There shall be distributed to each school district deleted text begin 62 deleted text end new text begin 75 new text end percent of the amount that it
received under Minnesota Statutes 1978, section 294.26, in calendar year 1977.

Sec. 12.

Minnesota Statutes 2024, section 298.282, subdivision 1, is amended to read:

Subdivision 1.

Distribution of taconite municipal aid account.

(a) The amount
deposited with the county as provided in section 298.28, subdivision 3, must be distributed
as provided by this section among: (1) the municipalities located within a taconite assistance
area under section 273.1341 that meet the criteria of section 273.1341, clause (1) or (2); (2)
a township that contains a state park consisting primarily of an underground iron ore mine;
(3) a city located within five miles of that state park; new text begin (4) the city of Cook in St. Louis County;
(5) the city of Two Harbors in Lake County; (6) the city of Orr in St. Louis County; (7) the
city of Winton in St. Louis County; new text end and deleted text begin (4) deleted text end new text begin (8) new text end Breitung Township in St. Louis County,
each being referred to in this section as a qualifying municipality. The deleted text begin distribution to deleted text end new text begin
distributions to each of the city of Orr, the city of Winton, and new text end Breitung Township under
this subdivision shall be $25,000 annually new text begin . The distributions to each of the city of Cook and
the city of Two Harbors under this subdivision shall be $75,000 annually new text end .

(b) The amount deposited in the state general fund as provided in section 298.018,
subdivision 1, must be distributed in the same manner as provided under paragraph (a),
except that subdivisions 3, 4, and 5 do not apply, and the distributions shall be made on the
dates provided under section 298.018, subdivision 1a.

Sec. 13. new text begin EFFECTIVE DATE; REVISOR NOTIFICATION.
new text end

new text begin (a) Sections 1 to 8 and 10 to 12 are effective for distributions in the year after the year
in which Mesabi Metallics or its successor begins producing tonnage subject to the taxes
under Minnesota Statutes, section 298.24, and thereafter. The commissioner of revenue
must certify to the commissioner of Iron Range resources and rehabilitation when production
begins.
new text end

new text begin (b) The commissioner of revenue must notify the revisor of statutes within 30 days of
the certification under paragraph (a).
new text end

ARTICLE 11

MISCELLANEOUS

Section 1.

Minnesota Statutes 2024, section 16A.726, is amended to read:

16A.726 SPORTS FACILITIES TRANSFERS; APPROPRIATIONS.

(a) The commissioner shall make transfers to the Minnesota Sports Facilities Authority
required to make the state payments under section 473J.13, subdivisions 2 and 4 deleted text begin , and for
the amount of Minneapolis taxes withheld under section 297A.994, subdivision 4, paragraph
(a), clause (4) deleted text end . Amounts sufficient to make the transfers are appropriated to the commissioner
from the general fund.

(b) $2,700,000 is annually appropriated from the general fund from fiscal year 2014
through fiscal year 2033 to the commissioner of management and budget for a grant to the
city of St. Paul for the operating or capital costs of new or existing sports facilities.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

new text begin [116J.8753] SPORTS AND EVENTS REIMBURSEMENT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Account" means the sports and events reimbursement program account.
new text end

new text begin (c) "Event" means any of the following and includes any activity related to or associated
with the following:
new text end

new text begin (1) Amateur Athletic Union Junior Olympic Games;
new text end

new text begin (2) Big Ten conference tournaments;
new text end

new text begin (3) Bowl Season;
new text end

new text begin (4) College Football Playoff;
new text end

new text begin (5) Confederation of North, Central America, and Caribbean Association Football
(CONCACAF) Gold Cup or other matches;
new text end

new text begin (6) Confederation Sudamericana de Football (CONMEBOL) Copa America;
new text end

new text begin (7) CrossFit Games;
new text end

new text begin (8) Federation of Gay Games;
new text end

new text begin (9) Formula 1 United States Grand Prix;
new text end

new text begin (10) International Ice Hockey Federation (IIHF) World Juniors, Men's, Women's, or any
tournament sanctioned by USA hockey or the IIHF;
new text end

new text begin (11) International Skating Union (ISU) Worlds;
new text end

new text begin (12) International Soccer Match;
new text end

new text begin (13) Laver Cup;
new text end

new text begin (14) Major League Baseball All-Star Game;
new text end

new text begin (15) Major League Soccer All-Star Game or other special events or matches;
new text end

new text begin (16) National Basketball Association All-Star Game, Cup, or Draft;
new text end

new text begin (17) National Collegiate Athletic Association's (NCAA) Men's or Women's Final Four
or preliminary round basketball tournament, Men's or Women's Frozen Four, Volleyball
Championship, Wrestling Championship, Gymnastics Championship, or any sanctioned
NCAA championship;
new text end

new text begin (18) National Football League Draft, Super Bowl, or combine;
new text end

new text begin (19) National Hockey League All-Star Game, Draft, Four Nations, Stadium Series,
Winter Classic, or World Cup of Hockey;
new text end

new text begin (20) Rugby World Cup Men's or Women's;
new text end

new text begin (21) Ultimate Fighting Championship;
new text end

new text begin (22) United States Figure Skating Championship;
new text end

new text begin (23) Unrivaled Event;
new text end

new text begin (24) United States Olympic Team Trials in gymnastics, swimming, and wrestling,
sanctioned by the national governing body, recognized by the United States Olympic
Committee;
new text end

new text begin (25) Women's National Basketball Association All-Star Game or Draft;
new text end

new text begin (26) World Cup Soccer Matches for Men's or Women's;
new text end

new text begin (27) World Wrestling Entertainment Summer Slam, Royal Rumbles, Survivor Series,
WrestleMania, TKO Takeover Weekend, or other premium live event;
new text end

new text begin (28) X Games;
new text end

new text begin (29) Professional Golfers' Association (PGA) of America championship-level events
for Men's or Women's; or
new text end

new text begin (30) any event certified by the commissioner of revenue that:
new text end

new text begin (i) will include at least 15,000 participants and spectators;
new text end

new text begin (ii) the site selection organization is considering whether to host in a state other than
Minnesota; and
new text end

new text begin (iii) is not held more than one time in any year.
new text end

new text begin (d) "Program" means the sports and events reimbursement program.
new text end

new text begin (e) "Local organizing committee" means a body with a demonstrated track record of
attracting high-profile events to Minnesota that is responsible for the promotion and execution
of an event.
new text end

new text begin (f) "Site selection organization" means an organization that has the ability to enter into
a contract for an event listed in paragraph (c) with a local organizing committee.
new text end

new text begin Subd. 2. new text end

new text begin Sports and events reimbursement program account. new text end

new text begin The sports and events
reimbursement program account is created in the special revenue fund in the state treasury.
Except as otherwise appropriated by law, money in the account is appropriated to the
commissioner of revenue for the purposes of this section. All money earned by the account
must be credited to the account and remain available until expended.
new text end

new text begin Subd. 3. new text end

new text begin Events eligible for funding. new text end

new text begin (a) Only an event listed in subdivision 1, paragraph
(c), is eligible for funding under this section.
new text end

new text begin (b) A listed event may receive funding through the program only if:
new text end

new text begin (1) a site selection organization, after considering one or more sites not in this state,
selects a site in this state for the event to be held:
new text end

new text begin (i) one time; or
new text end

new text begin (ii) if the event is scheduled under an event contract or event support contract to be held
each year for a period of years, one time in each year;
new text end

new text begin (2) a site selection organization selects a site in this state as:
new text end

new text begin (i) the sole site for the event; or
new text end

new text begin (ii) the sole site for the event in a region composed of this state and one or more adjoining
states; and
new text end

new text begin (3) the event is held not more than one time in any year.
new text end

new text begin Subd. 4. new text end

new text begin Administration of program. new text end

new text begin (a) Prior to any determination under section
270C.45, subdivision 2, a local organizing committee must submit an application to the
commissioner of revenue. Applications must be submitted in the form and manner provided
by the commissioner of revenue but must include:
new text end

new text begin (1) a certification that the event meets the eligibility requirements for funding under
subdivision 3 and all other funding requirements under this section; and
new text end

new text begin (2) documentation from a site selection organization selecting the site for the event.
new text end

new text begin (b) The commissioner must conduct due diligence in administering the program, including
contracting with professionals as needed to assist in the due diligence.
new text end

new text begin Subd. 5. new text end

new text begin Allowable expenses. new text end

new text begin Money in the account may be used to fulfill obligations
of the state to a local organizing committee under an event contract including the payment
of:
new text end

new text begin (1) the costs relating to the preparations necessary or desirable for conducting the event;
and
new text end

new text begin (2) the costs of conducting the event, including the costs of an improvement or renovation
to an existing facility and the costs of the acquisition or construction of a new facility or
other facility.
new text end

new text begin Subd. 6. new text end

new text begin Rulemaking. new text end

new text begin The commissioner of revenue may adopt rules necessary to
implement this section.
new text end

new text begin Subd. 7. new text end

new text begin Reporting. new text end

new text begin (a) A local organizing committee must provide the following
information to the commissioner of revenue:
new text end

new text begin (1) annual audited statements of any financial records required by a site selection
organization; and
new text end

new text begin (2) data obtained by the local organizing committee relating to:
new text end

new text begin (i) attendance at the event, including an estimate of the number of people expected to
attend the event who are not residents of Minnesota; and
new text end

new text begin (ii) the economic impact of the event.
new text end

new text begin (b) A local organizing committee must provide an annual audited financial statement
required by the commissioner of revenue no later than the end of the fourth month after the
last day of the period covered by the financial statement.
new text end

new text begin (c) After the conclusion of an event, a local organizing committee must provide
information about the event, such as attendance figures, including an estimate of the number
of people who attended the event who are not residents of Minnesota, financial information,
or other public information held by the committee as requested by the commissioner of
revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2024, section 168E.09, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin Deposit of revenues; sports and events reimbursement program
account. new text end

new text begin After deposits under subdivision 1, the commissioner must deposit the share of
revenues of the taxes imposed under this chapter that are directly attributable to an event
in the amount determined under section 270C.45 to the sports and events reimbursement
program account.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenues collected for sales and
purchases made after the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2024, section 168E.09, subdivision 2, is amended to read:

Subd. 2.

Deposits.

After deposits under deleted text begin subdivision deleted text end new text begin subdivisions new text end 1 new text begin and 1a new text end , the
commissioner must deposit the balance of proceeds from the retail delivery fee in the
transportation advancement account under section 174.49.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenues collected for sales and
purchases made after the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2024, section 270B.14, is amended by adding a subdivision to
read:

new text begin Subd. 25. new text end

new text begin Exchange of criminal investigative data between Department of Revenue
and Financial Crimes and Fraud Section. new text end

new text begin (a) For purposes of this subdivision, "FCFS"
means the Financial Crimes and Fraud Section of the Bureau of Criminal Apprehension.
new text end

new text begin (b) The commissioner may disclose active criminal investigative data as classified under
section 270B.03, subdivision 6, to the FCFS. The FCFS may disclose active criminal
investigative data concerning tax administration to the commissioner as outlined in section
299C.061, subdivision 6. The commissioner may enter into an agreement with the FCFS
outlining procedures to implement the exchange of information under this subdivision, but
an agreement may provide for the disclosure of data only to the extent allowed under this
subdivision. Disclosure is allowed only for the purpose of and to the extent necessary for
tax administration and for the purpose of and to the extent necessary for the FCFS to carry
out section 299C.061, subdivision 3.
new text end

new text begin (c) Data disclosed by the commissioner to the FCFS under this subdivision are classified
under section 270B.03, subdivision 6. Data disclosed by the FCFS to the commissioner
under section 299C.061, subdivision 6, are classified under section 13.82, subdivision 7.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2024, section 270B.15, is amended to read:

270B.15 DISCLOSURE TO LEGISLATIVE AUDITOR AND STATE AUDITOR new text begin ;
INSPECTOR GENERAL new text end .

new text begin Subdivision 1. new text end

new text begin Legislative auditor and state auditor. new text end

(a) Returns and return information
must be disclosed to the legislative auditor to the extent necessary for the legislative auditor
to carry out sections 3.97 to 3.979.

(b) The commissioner must disclose return information, including the report required
under section 289A.12, subdivision 15, to the state auditor to the extent necessary to conduct
audits of job opportunity building zones as required under section 469.3201.

new text begin Subd. 2. new text end

new text begin Inspector general. new text end

new text begin Returns and return information must be disclosed to the
inspector general, as given meaning in section 15E.10, to the extent necessary for the
inspector general to carry out chapter 15E. The inspector general may disseminate data of
any classification to the commissioner for purposes of administering the provisions of section
290.034.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027, unless the legislature
has not established the inspector general as referred to in this section, in which case this
section will not be enacted.
new text end

Sec. 7.

Minnesota Statutes 2024, section 270C.07, is amended to read:

270C.07 REVENUE deleted text begin NOTICES deleted text end new text begin RULINGS new text end .

Subdivision 1.

Authority.

The commissioner may make, adopt, and publish interpretive
revenue deleted text begin notices deleted text end new text begin rulings new text end . A "revenue deleted text begin notice deleted text end new text begin ruling new text end " is a policy statement that has been
published pursuant to subdivision 5 and that provides interpretation, details, or supplementary
information concerning the application of state revenue laws or rules promulgated by the
commissioner. Revenue deleted text begin notices deleted text end new text begin rulings new text end are published for the information and guidance of
taxpayers, local government officials, the department, and others concerned.

Subd. 2.

Effect.

Revenue deleted text begin notices deleted text end new text begin rulings new text end do not have the force and effect of law and
have no precedential effect, but may be relied on by taxpayers new text begin unless and new text end until revoked or
modified. deleted text begin A notice may be expressly revoked or modified by the commissioner, by the
issuance of a revenue notice, but may not be revoked or modified retroactively to the
detriment of the taxpayers. A change in the law or an interpretation of the law occurring
after the revenue notice is issued, whether in the form of a statute, court decision,
administrative rule, or revenue notice, results in revocation or modification of the notice to
the extent that the change affects the notice.
deleted text end

new text begin Subd. 2a. new text end

new text begin Revocation or modification. new text end

new text begin A revenue ruling may be expressly revoked or
modified by the commissioner, by the issuance of a revenue ruling, but may not be revoked
or modified retroactively to the detriment of taxpayers. A change in the law or an
interpretation of the law occurring after the revenue ruling is issued, whether in the form
of a statute, court decision, administrative rule, or revenue ruling, results in revocation or
modification of the ruling to the extent that the change affects the ruling.
new text end

Subd. 3.

Retroactivity.

Revenue deleted text begin notices deleted text end new text begin rulings new text end are generally interpretive of existing
law and therefore are retroactive to the effective date of the applicable law provision unless
otherwise stated in the deleted text begin notice deleted text end new text begin ruling new text end .

Subd. 4.

Issuance.

The issuance of revenue deleted text begin notices deleted text end new text begin rulings new text end is at the discretion of the
commissioner. The commissioner shall establish procedures governing the issuance of
revenue deleted text begin notices deleted text end new text begin rulings new text end and tax information bulletins. deleted text begin At least one week before publication
of a revenue notice in the State Register, the commissioner shall provide a copy of the notice
to the chairs of the Taxes Committee of the house of representatives and the Taxes and Tax
Laws Committee of the senate.
deleted text end

new text begin Subd. 4a. new text end

new text begin Request. new text end

new text begin (a) Any person may submit a revenue ruling request to the
commissioner. The request must contain the following:
new text end

new text begin (1) tax type;
new text end

new text begin (2) the name and characteristics of the taxpayer submitting the request;
new text end

new text begin (3) description of the issue to be addressed;
new text end

new text begin (4) information demonstrating the frequency of the issue;
new text end

new text begin (5) any supporting materials and documents that provide background information on
the issue; and
new text end

new text begin (6) any other relevant information and documents identified by the commissioner.
new text end

new text begin (b) The commissioner must acknowledge all submitted requests within 21 days of receipt.
The person making the request must provide additional information and documents as
requested by the commissioner within 60 days of the request. Failure to timely provide the
requested information and documents may result in the request being denied. Upon the
commissioner's receipt of all requested additional information and documents, the person's
request is considered complete.
new text end

new text begin (c) The commissioner must respond to all requests for revenue rulings either by issuance
of a ruling or by letter explaining why the commissioner declined to issue a ruling. If the
commissioner declines the request, the commissioner shall provide the person making the
request with a letter explaining the reasons for declining to do so within 45 days of receipt
of the completed request. If the commissioner does not decline the completed request, the
commissioner shall complete the revenue ruling and submit the revenue ruling for feedback
under subdivision 5 within 210 days of the commissioner's receipt of the completed request.
new text end

new text begin (d) The commissioner's revenue rulings, decisions to decline to issue revenue rulings,
and other determinations made under this section may not be appealed.
new text end

Subd. 5.

new text begin Review and new text end publication.

new text begin The commissioner shall seek feedback from the tax
section of the Minnesota State Bar Association and the Minnesota Society of Certified
Public Accountants prior to publication of a revenue ruling. new text end The commissioner shall publish
the revenue deleted text begin notices deleted text end new text begin rulings new text end in the State Register and in any other manner that makes them
accessible to the general public. deleted text begin The commissioner may charge a reasonable fee for
publications. deleted text end new text begin At least two weeks before publication of a revenue ruling in the State Register,
the commissioner shall provide a copy of the ruling to the chairs and ranking minority
members of the legislative committees with jurisdiction over taxes.
new text end

new text begin Subd. 6. new text end

new text begin Confidentiality. new text end

new text begin Prior to publication or other public dissemination, the
commissioner shall redact certain information from a revenue ruling or proposed ruling,
including the name and address of the taxpayer and taxpayer's representative.
new text end

new text begin Subd. 7. new text end

new text begin Effect of determination. new text end

new text begin A determination of any kind made by the commissioner
pursuant to this section is not a rule and is not subject to the Administrative Procedure Act
contained in chapter 14.
new text end

new text begin Subd. 8. new text end

new text begin Legislative report. new text end

new text begin (a) On or before January 31, 2028, and on or before January
31 each year thereafter, the commissioner shall report in writing to the legislature the
following information for the immediately preceding calendar year:
new text end

new text begin (1) the number of revenue ruling requests submitted and the number of those rulings
subsequently issued;
new text end

new text begin (2) the tax types for which rulings were requested;
new text end

new text begin (3) the types and characteristics of taxpayers requesting rulings; and
new text end

new text begin (4) any other information that the commissioner considers relevant to legislative oversight
of revenue rulings.
new text end

new text begin (b) The report must be filed as provided in sections 3.195 and 3.197 and copies must be
provided to the chairs and ranking minority members of the legislative committees with
jurisdiction over taxes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026, except that the first
legislative report under subdivision 8 is due January 31, 2028.
new text end

Sec. 8.

Minnesota Statutes 2024, section 270C.08, is amended to read:

270C.08 TAX INFORMATION BULLETINS.

The commissioner may issue tax information bulletins. "Tax information bulletins" are
informational guides to enable taxpayers and local governmental officials to become more
familiar with state revenue laws and their rights and responsibilities under these laws.
Nothing contained in the tax information bulletins supersedes, alters, or otherwise changes
any provisions of the state revenue laws, administrative rules, court decisions, or revenue
deleted text begin notices deleted text end new text begin rulings new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026.
new text end

Sec. 9.

Minnesota Statutes 2024, section 270C.085, is amended to read:

270C.085 NOTIFICATION REQUIREMENTS; SALES AND USE TAXES.

The commissioner of revenue shall establish a means of electronically notifying persons
holding a sales tax permit under section 297A.84 of any statutory change in chapter 297A
and any issuance or change in any administrative rule, revenue deleted text begin notice deleted text end new text begin ruling new text end , or sales tax
fact sheet or other written information provided by the department explaining the
interpretation or administration of the tax imposed under that chapter. The notification must
indicate the basic subject of the statute, rule, fact sheet, or other material and provide an
electronic link to the material. Any person holding a sales tax permit that provides an
electronic address to the department must receive these notifications unless they specifically
request electronically, or in writing, to be removed from the notification list. This requirement
does not replace traditional means of notifying the general public or persons without access
to electronic communications of changes in the sales tax law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026.
new text end

Sec. 10.

new text begin [270C.45] CALCULATION AND DEPOSIT OF REVENUES TO THE
SPORTS AND EVENTS REIMBURSEMENT PROGRAM ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given them.
new text end

new text begin (b) "Authorized entity" means an independent third-party economic analysis firm or
research organization with demonstrated expertise in conducting economic impact studies
for large-scale events, including the ability to quantify direct, indirect, and induced economic
activity and estimate associated tax revenue generation.
new text end

new text begin (c) "Event" has the meaning given in section 116J.8753, subdivision 1, paragraph (c).
new text end

new text begin (d) "Local organizing committee" has the meaning given in section 116J.8753, subdivision
1, paragraph (e).
new text end

new text begin (e) "Site selection organization" has the meaning given in section 116J.8753, subdivision
1, paragraph (f).
new text end

new text begin (f) "University" means the University of Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Determination of incremental increase in certain tax receipts. new text end

new text begin (a) Following
each event, a local organizing committee must request a determination of the incremental
increase in tax revenues directly attributable to the event. The request must be submitted to
the university or authorized entity in the form and manner prescribed by the university and
the commissioner. The university must notify a local organizing committee within seven
days if the university is unable to provide a determination. Upon notification, a local
organizing committee must request a determination from an authorized entity.
new text end

new text begin (b) Within ten days of the conclusion of an event, the university must commence an
estimate of the incremental increase in tax revenues listed in paragraph (c) that the university
or authorized entity determines are directly attributable to the preparation for and presentation
of an event for a one-year period that begins two months before the date on which the event
will begin. The university or authorized entity must use the information submitted by the
local organizing committee under paragraph (a) for each event.
new text end

new text begin (c) Revenues from the following taxes must be included in the determination of
incremental increase under paragraph (b):
new text end

new text begin (1) notwithstanding section 297A.62, subdivision 4, the tax imposed under section
297A.62, subdivision 1;
new text end

new text begin (2) the taxes imposed under section 297A.64, subdivisions 1 and 2;
new text end

new text begin (3) the tax imposed under section 295.75;
new text end

new text begin (4) the tax imposed under section 295.81;
new text end

new text begin (5) the fee imposed under section 168E.03; and
new text end

new text begin (6) the taxes imposed under sections 290.02 and 290.03.
new text end

new text begin Subd. 3. new text end

new text begin Deposit of revenues. new text end

new text begin Within 30 days after the determination of incremental
increase in the tax revenues under subdivision 2, paragraph (b), the commissioner must
disburse the amount of the incremental increase to the local organizing committee for the
purposes enumerated in section 116J.8753, subdivision 5. The commissioner of revenue
must not make any disbursement to an entity other than the local organizing committee that
requested a determination of incremental increase for an event under subdivision 2, paragraph
(a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11.

Minnesota Statutes 2024, section 270C.56, subdivision 1, is amended to read:

Subdivision 1.

Liability imposed.

A person who, either singly or jointly with others,
has the control of, supervision of, or responsibility for filing returns or reports, paying taxes,
or collecting or withholding and remitting taxes and who fails to do so, or a person who is
liable under any other law, is liable for the payment of taxes arising under chapters 295,
296A, 297A, 297F, and 297G, or sections new text begin 290.034, new text end 290.92 new text begin , new text end and 297E.02, and the applicable
penalties and interest on those taxes.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for convictions of fraud made after
December 31, 2025.
new text end

Sec. 12.

Minnesota Statutes 2024, section 289A.40, subdivision 1, is amended to read:

Subdivision 1.

Time limit; generally.

new text begin (a) new text end Unless otherwise provided in this chapter, a
claim for a refund of an overpayment of state tax must be filed within 3-1/2 years from the
date prescribed for filing the return, plus any extension of time granted for filing the return,
but only if filed within the extended time, or deleted text begin one year from the date of an order assessing
tax under section 270C.33 or an order determining an appeal under section 270C.35,
subdivision 8, or one year from the date of a return made by the commissioner under section
270C.33, subdivision 3, upon payment in full of the tax, penalties, and interest shown on
the order or return made by the commissioner deleted text end new text begin two years from the date the tax, penalties, or
interest was paid new text end , whichever period expires later. deleted text begin Claims for refund, except for taxes under
chapter 297A, filed after the 3-1/2 year period but within the one-year period are limited to
the amount of the tax, penalties, and interest on the order or return made by the commissioner
and to issues determined by the order or return made by the commissioner.
deleted text end

deleted text begin In the case of assessments under section 289A.38, subdivision 5 or 6, claims for refund
under chapter 297A filed after the 3-1/2 year period but within the one-year period are
limited to the amount of the tax, penalties, and interest on the order or return made by the
commissioner that are due for the period before the 3-1/2 year period.
deleted text end

new text begin (b) For purposes of this subdivision, the amount of a refund is limited as follows:
new text end

new text begin (1) if the claim was filed by the taxpayer during the 3-1/2 year period prescribed in
paragraph (a), the refund must not exceed the tax, penalties, and interest paid within the
period, immediately preceding the filing of the claim, equal to 3-1/2 years plus any extension
of time granted for filing the return, but only if filed within the extended time;
new text end

new text begin (2) if the claim was not filed by the taxpayer within the 3-1/2 year period prescribed in
paragraph (a), the refund must not exceed the tax, penalties, and interest paid during the
two years immediately preceding the filing of the claim; and
new text end

new text begin (3) if no claim was filed by the taxpayer, the refund must not exceed the amount which
would be allowable under clause (1) or (2), if the claim was filed on the date the refund is
allowed.
new text end

new text begin (c) For purposes of this subdivision, the prepayment of tax made by withholding of tax
at the source or payment of estimated tax before the due date is considered paid on the last
day prescribed by law for the payment of the tax by the taxpayer. A return filed before the
last day prescribed for filing the return is considered to be filed on the last day. If an extension
for filing a return is granted, a return filed before the extended due date is considered to be
filed on the extended due date.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to claims for refund filed on or after that date.
new text end

Sec. 13.

Minnesota Statutes 2024, section 289A.60, subdivision 6, is amended to read:

Subd. 6.

Penalty for failure to file, false or fraudulent return, evasion.

(a) If a person,
with intent to evade or defeat a tax or payment of tax, fails to file a return, files a false or
fraudulent return, or attempts in any other manner to evade or defeat a tax or payment of
tax, there is imposed on the person a penalty equal to 50 percent of the tax, less amounts
paid by the person on the basis of the false or fraudulent return, if any, due for the period
to which the return related.

(b) If a person files a false or fraudulent return that includes a claim for refund, there is
imposed on the person a penalty equal to 50 percent of the portion of any refund claimed
that is attributable to fraud. The penalty under this paragraph is in addition to any penalty
imposed under paragraph (a) new text begin or (c) new text end .

new text begin (c) If a person receives money, whether reported or not reported on a return, that is due
to fraud of a public program as defined in section 290.034, subdivision 1, without regard
to whether a conviction resulted, there may be imposed on the person a penalty equal to
100 percent of the amounts received attributable to the fraud. The penalty under this
paragraph is in addition to any penalty imposed under paragraph (a) or (b). This penalty
must not be assessed on any amounts already assessed under section 290.034. Any amounts
collected must be deposited to the tax relief account identified in section 290.034, subdivision
5.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for convictions of fraud made after
December 31, 2025.
new text end

Sec. 14.

new text begin [290.034] TAX ON AMOUNTS OBTAINED THROUGH FRAUD.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "First-tier rate" means the lowest rate cited in section 290.06, subdivision 2c,
paragraphs (a) to (c).
new text end

new text begin (c) "Public program" and "fraud" have the meanings given in section 13.357.
new text end

new text begin (d) "Program fraud amount" means the amount of money acquired directly or indirectly
by fraud of a public program that is certified to the commissioner under subdivision 4. This
definition excludes refunds for overpayment of taxes.
new text end

new text begin Subd. 2. new text end

new text begin Tax imposed. new text end

new text begin (a) A tax equal to 100 percent of the program fraud amount is
imposed on any person or organization convicted by a state or federal court of fraud.
new text end

new text begin (b) The tax under this section applies regardless of any amount of restitution, tax, or
penalty imposed on or paid by a person or organization described in paragraph (a).
new text end

new text begin (c) If multiple persons or organizations are convicted of the same fraud, the liability
shall be joint and several on the convicted persons or organizations.
new text end

new text begin (d) The assessment of this tax under paragraph (a) is considered a jeopardy assessment
or jeopardy collection as provided in section 270C.36.
new text end

new text begin Subd. 3. new text end

new text begin Data sharing. new text end

new text begin As authorized by section 270B.14, subdivision 25, the
commissioner may share with the Financial Crimes and Fraud Section of the Bureau of
Criminal Apprehension active investigative data related to enforcement of this section.
new text end

new text begin Subd. 4. new text end

new text begin Agency certification. new text end

new text begin (a) After a conviction of a person or organization of
fraud of a public program, the agency primarily responsible for administering the public
program must certify to the commissioner the name of the person or organization, the name
of the public program involved, and the amount of money the court determines the person
or organization was responsible for in the conviction, regardless of the restitution amount.
new text end

new text begin (b) The agency's certification must be in the form and manner prescribed by the
commissioner.
new text end

new text begin (c) An agency's certification to the commissioner is prima facie correct and valid. The
person or organization has the burden of establishing its incorrectness or invalidity in any
related action or proceeding.
new text end

new text begin Subd. 5. new text end

new text begin Deposit of money. new text end

new text begin (a) A tax relief account is established in the special revenue
fund. The commissioner must deposit the money collected from the tax imposed under this
section to the tax relief account.
new text end

new text begin (b) The funds will remain in this account until the following:
new text end

new text begin (1) by December 15 of each year, the commissioner must determine the amount in the
tax relief account and determine the amount of a reduction in the first-tier rate for the
following taxable year. The determination is based using the most recent November forecast
required under section 16A.103;
new text end

new text begin (2) when there is enough money accumulated in the tax relief account, the commissioner
must reduce the first-tier rate for the following taxable year. This reduction must be calculated
to approximate the amount currently on deposit in the tax relief fund. The reduction must
only be for that taxable year. The threshold for a reduction of the rate must not be below
one-tenth of one percent; and
new text end

new text begin (3) if the rate is reduced for the following taxable year under clause (2), the amounts in
the tax relief fund must be deposited in the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for convictions of fraud made after
December 31, 2025.
new text end

Sec. 15.

Minnesota Statutes 2024, section 290.62, is amended to read:

290.62 DISTRIBUTION OF REVENUES.

new text begin Subdivision 1. new text end

new text begin Deposit of revenues; general fund; refunds. new text end

new text begin Except as provided in
subdivision 2, new text end all revenues derived from the taxes, interest, penalties and charges under this
chapter shall, notwithstanding any other provisions of law, be paid into the state treasury
and credited to the general fund, and be distributed as follows:

(1) There shall, notwithstanding any other provision of the law, be paid from this general
fund all refunds of taxes erroneously collected from taxpayers under this chapter as provided
herein;

(2) There is hereby appropriated to the persons entitled to payment herein, from the fund
or account in the state treasury to which the money was credited, an amount sufficient to
make the refund and payment.

new text begin Subd. 2. new text end

new text begin Deposit of revenues; sports and events reimbursement program. new text end

new text begin The
commissioner must deposit the share of revenues of the taxes imposed under this chapter
that are directly attributable to an event in the amount determined under section 270C.45
to the sports and events reimbursement program account.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenues collected in taxable years
beginning after the day following final enactment.
new text end

Sec. 16.

Minnesota Statutes 2024, section 295.75, subdivision 11, is amended to read:

Subd. 11.

Deposit of revenues new text begin ; sports and events reimbursement program
account new text end .

new text begin Except as provided in subdivision 11a, new text end the commissioner shall deposit all revenues,
including penalties and interest, derived from the tax imposed by this section in the general
fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenues collected for sales and
purchases made after the day following final enactment.
new text end

Sec. 17.

Minnesota Statutes 2024, section 295.75, is amended by adding a subdivision to
read:

new text begin Subd. 11a. new text end

new text begin Deposit of revenues; sports and events reimbursement program
account. new text end

new text begin The commissioner must deposit the share of revenues of the taxes imposed under
this chapter that are directly attributable to an event in the amount determined under section
270C.45 to the sports and events reimbursement program account.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenues collected for sales and
purchases made after the day following final enactment.
new text end

Sec. 18.

Minnesota Statutes 2025 Supplement, section 295.81, subdivision 10, is amended
to read:

Subd. 10.

Deposit of revenues; account established.

new text begin Except as provided in subdivision
10a, new text end the commissioner must deposit the revenues, including penalties and interest, derived
from the tax imposed by this section in the general fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenues collected for sales and
purchases made after the day following final enactment.
new text end

Sec. 19.

Minnesota Statutes 2024, section 295.81, is amended by adding a subdivision to
read:

new text begin Subd. 10a. new text end

new text begin Deposit of revenues; sports and events reimbursement program
account. new text end

new text begin The commissioner must deposit the share of revenues of the taxes imposed under
this chapter that are directly attributable to an event in the amount determined under section
270C.45 to the sports and events reimbursement program account.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenues collected for sales and
purchases made after the day following final enactment.
new text end

Sec. 20.

Minnesota Statutes 2025 Supplement, section 297A.94, is amended to read:

297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section, the commissioner shall deposit the revenues,
including interest and penalties, derived from the taxes imposed by this chapter in the state
treasury and credit them to the general fund.

(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
account in the special revenue fund if:

(1) the taxes are derived from sales and use of property and services purchased for the
construction and operation of an agricultural resource project; and

(2) the purchase was made on or after the date on which a conditional commitment was
made for a loan guaranty for the project under section 41A.04, subdivision 3.

The commissioner of management and budget shall certify to the commissioner the date on
which the project received the conditional commitment. The amount deposited in the loan
guaranty account must be reduced by any refunds and by the costs incurred by the Department
of Revenue to administer and enforce the assessment and collection of the taxes.

(c) The commissioner shall deposit the revenues, including interest and penalties, derived
from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3,
paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:

(1) first to the general obligation special tax bond debt service account in each fiscal
year the amount required by section 16A.661, subdivision 3, paragraph (b); and

(2) after the requirements of clause (1) have been met, the balance to the general fund.

(d) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit
in the state treasury the revenues collected under section 297A.64, subdivision 1, including
interest and penalties and minus refunds, and credit them to the highway user tax distribution
fund.

(e) The commissioner shall deposit the revenues, including interest and penalties,
collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
general fund. By July 15 of each year the commissioner shall transfer to the highway user
tax distribution fund an amount equal to the excess fees collected under section 297A.64,
subdivision 5, for the previous calendar year.

(f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the deposit
of revenues under paragraph (d), the commissioner shall deposit into the state treasury and
credit to the highway user tax distribution fund an amount equal to the estimated revenues
derived from the tax rate imposed under section 297A.62, subdivision 1, on the lease or
rental for not more than 28 days of rental motor vehicles subject to section 297A.64. The
commissioner shall estimate the amount of sales tax revenue deposited under this paragraph
based on the amount of revenue deposited under paragraph (d).

(g) Each month the commissioner must deposit an amount equal to the estimated revenues
derived from the taxes imposed under section 297A.62, subdivision 1, on the sale and
purchase of motor vehicle repair and replacement parts in the state treasury and credit:

(1) a percentage to the highway user tax distribution fund as follows:

(i) 43.5 percent in each of fiscal years 2024 and 2025;

(ii) 43 percent in fiscal year 2026;

(iii) 41 percent in fiscal year 2027;

(iv) 36 percent in fiscal year 2028;

(v) 30 percent in fiscal year 2029;

(vi) 36 percent in each of fiscal years 2030 to 2034;

(vii) 38.5 percent in fiscal year 2035;

(viii) 41 percent in fiscal year 2036; and

(ix) 43.5 percent in fiscal year 2037 and thereafter;

(2) a percentage to the transportation advancement account under section 174.49 as
follows:

(i) 3.5 percent in fiscal year 2024;

(ii) 4.5 percent in fiscal year 2025;

(iii) 5.5 percent in fiscal year 2026;

(iv) 7.5 percent in fiscal year 2027;

(v) 14.5 percent in fiscal year 2028;

(vi) 21.5 percent in fiscal year 2029;

(vii) 28.5 percent in fiscal year 2030;

(viii) 36.5 percent in fiscal year 2031;

(ix) 44.5 percent in fiscal year 2032; and

(x) 56.5 percent in fiscal year 2033 and thereafter; and

(3) the remainder in each fiscal year to the general fund.

After each February forecast, and prior to the following April 15, the commissioner shall
estimate the monthly deposit amount for use in the following fiscal year based on the estimate
of average revenue derived from the taxes imposed under section 297A.62, subdivision 1,
on the sale and purchase of motor vehicle repair and replacement parts from the department's
three most recent consumption tax models. For purposes of this paragraph, "motor vehicle"
has the meaning given in section 297B.01, subdivision 11, and "motor vehicle repair and
replacement parts" includes (i) all parts, tires, accessories, and equipment incorporated into
or affixed to the motor vehicle as part of the motor vehicle maintenance and repair, and (ii)
paint, oil, and other fluids that remain on or in the motor vehicle as part of the motor vehicle
maintenance or repair. For purposes of this paragraph, "tire" means any tire of the type used
on highway vehicles, if wholly or partially made of rubber and if marked according to
federal regulations for highway use.

(h) 81.56 percent of the revenues, including interest and penalties, transmitted to the
commissioner under section 297A.65, must be deposited by the commissioner in the state
treasury as follows:

(1) 47.5 percent of the receipts must be deposited in the heritage enhancement account
in the game and fish fund, and may be spent only on activities that improve, enhance, or
protect fish and wildlife resources, including conservation, restoration, and enhancement
of land, water, and other natural resources of the state;

(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
be spent only for state parks and trails;

(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
be spent only on metropolitan park and trail grants;

(4) three percent of the receipts must be deposited in the natural resources fund, and
may be spent only on local trail grants;

(5) two percent of the receipts must be deposited in the natural resources fund, and may
be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory,
and the Duluth Zoo; and

(6) 2.5 percent of the receipts must be deposited in the pollinator account established in
section 103B.101, subdivision 19.

(i) 1.5 percent of the revenues, including interest and penalties, transmitted to the
commissioner under section 297A.65 must be deposited in a regional parks and trails account
in the natural resources fund and may only be spent for parks and trails of regional
significance outside of the seven-county metropolitan area under section 85.535, based on
recommendations from the Greater Minnesota Regional Parks and Trails Commission under
section 85.536.

(j) 1.5 percent of the revenues, including interest and penalties, transmitted to the
commissioner under section 297A.65 must be deposited in an outdoor recreational
opportunities for underserved communities account in the natural resources fund and may
only be spent on projects and activities that connect diverse and underserved Minnesotans
through expanding cultural environmental experiences, exploration of their environment,
and outdoor recreational activities.

(k) The revenue dedicated under paragraph (h) may not be used as a substitute for
traditional sources of funding for the purposes specified, but the dedicated revenue shall
supplement traditional sources of funding for those purposes. Land acquired with money
deposited in the game and fish fund under paragraph (h) must be open to public hunting
and fishing during the open season, except that in aquatic management areas or on lands
where angling easements have been acquired, fishing may be prohibited during certain times
of the year and hunting may be prohibited. At least 87 percent of the money deposited in
the game and fish fund for improvement, enhancement, or protection of fish and wildlife
resources under paragraph (h) must be allocated for field operations.

(l) The commissioner must deposit the revenues, including interest and penalties minus
any refunds, derived from the sale of items regulated under section 624.20, subdivision 1,
that may be sold to persons 18 years old or older and that are not prohibited from use by
the general public under section 624.21, in the state treasury and credit:

(1) 25 percent to the volunteer fire assistance grant account established under section
88.068;

(2) 25 percent to the fire safety account established under section 297I.06, subdivision
3; and

(3) the remainder to the general fund.

For purposes of this paragraph, the percentage of total sales and use tax revenue derived
from the sale of items regulated under section 624.20, subdivision 1, that are allowed to be
sold to persons 18 years old or older and are not prohibited from use by the general public
under section 624.21, is a set percentage of the total sales and use tax revenues collected in
the state, with the percentage determined under Laws 2017, First Special Session chapter
1, article 3, section 39.

new text begin (m) The commissioner must deposit the share of revenues of the taxes imposed under
this chapter that are directly attributable to an event in the amount determined under section
270C.45 to the sports and events reimbursement program account.
new text end

deleted text begin (m) deleted text end new text begin (n) new text end The revenues deposited under paragraphs (a) to deleted text begin (l) deleted text end new text begin (m) new text end do not include the
revenues, including interest and penalties, generated by the sales tax imposed under section
297A.62, subdivision 1a, which must be deposited as provided under the Minnesota
Constitution, article XI, section 15.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue collected for sales and
purchases made after the day following final enactment.
new text end

Sec. 21.

Minnesota Statutes 2025 Supplement, section 299C.061, subdivision 6, is amended
to read:

Subd. 6.

Data sharing authorized.

Notwithstanding chapter 13 or any other statute
related to the classification of government data to the contrary, state agencies making a
referral under subdivision 4 or 5 shall provide data related to the suspected fraudulent activity
to the Section, including data classified as not public. The Section may share active criminal
investigative data concerning insurance fraud with the Department of Commerce new text begin and active
criminal investigative data concerning tax administration with the Department of Revenue.
Data shared by the Section under this subdivision are classified under section 13.82,
subdivision 7 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 22.

Minnesota Statutes 2024, section 383A.80, subdivision 4, is amended to read:

Subd. 4.

Expiration.

The authority to impose the tax under this section expires January
1, deleted text begin 2028 deleted text end new text begin 2036 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 23.

Minnesota Statutes 2024, section 383B.80, subdivision 4, is amended to read:

Subd. 4.

Expiration.

The authority to impose the tax under this section expires January
1, deleted text begin 2028 deleted text end new text begin 2036 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 24. new text begin EFFECT OF REVENUE NOTICES.
new text end

new text begin A revenue notice published by the commissioner of revenue on or before July 1, 2026,
has the full force and effect of revenue rulings under Minnesota Statutes, section 270C.07.
If the commissioner of revenue modifies a revenue notice after June 30, 2026, the
commissioner of revenue must publish the modification as a revenue ruling pursuant to
Minnesota Statutes, section 270C.07.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after final enactment.
new text end

Sec. 25. new text begin NO OBLIGATION TO LIST ON LIQUOR POSTING; TEMPORARY
AUTHORITY.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 270C.725, the commissioner of revenue
is under no obligation to list a qualifying taxpayer whose business is a place of public
accommodation.
new text end

new text begin (b) For purposes of this section the following definitions apply:
new text end

new text begin (1) "qualifying taxpayer" means a taxpayer that:
new text end

new text begin (i) is ten days or more delinquent in either filing a tax return or paying a tax imposed
by Minnesota Statutes, sections 290.02, 290.0922, 290.92, 290.9727, 290.9728, 290.9729,
or 297A.62, or local sales and use tax payable to the commissioner of revenue, or a local
option tax administered and collected by the commissioner of revenue; and
new text end

new text begin (ii) within seven days of receiving notification from the commissioner of revenue of the
intended action to list the taxpayer on the liquor posting, has filed a request for abatement
of penalty under Minnesota Statutes, section 270C.34 or section 289A.60, subdivision 4,
or a request for abatement of interest or additional tax charge; and
new text end

new text begin (2) "place of public accommodation" has the meaning given in Minnesota Statutes,
section 363A.03, subdivision 34.
new text end

new text begin (c) This section expires December 31, 2027.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2026, and
applies to taxes first required to be paid, and returns first required to be filed, after that date.
new text end

Sec. 26. new text begin APPROPRIATION; CITY OF SOUTH ST. PAUL; GRANT.
new text end

new text begin (a) $250,000 in fiscal year 2026 is appropriated from the general fund to the commissioner
of revenue for a grant to the city of South St. Paul. This is a onetime appropriation. The
grant must be paid by June 30, 2026. The grant under this section is not subject to retention
of administrative costs under Minnesota Statutes, section 16B.98, subdivision 14.
new text end

new text begin (b) The grant under this section must be used by the city of South St. Paul to pay for
planning and development costs within the city.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 27. new text begin APPROPRIATION; PROFESSIONAL GOLFERS' ASSOCIATION OF
AMERICA (PGA) CHAMPIONSHIP EVENTS.
new text end

new text begin $7,000,000 in fiscal year 2027 is appropriated from the general fund to the director of
Explore Minnesota for a grant to the city of Chaska to attract, and for costs associated with
hosting, a package of future PGA of America championship-level events, which shall include
at least one men's PGA championship and one women's PGA championship. This
appropriation is onetime and is available until June 30, 2029. Notwithstanding Minnesota
Statutes, section 16B.98, subdivision 14, the director may use up to two percent of the
amount appropriated for administrative costs.
new text end

Sec. 28. new text begin CANCELLATIONS.
new text end

new text begin $7,000,000 of the fiscal year 2024 Minnesota forward fund account appropriation in
Laws 2023, chapter 53, article 21, section 7, paragraph (c), is canceled.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 29. new text begin TRANSFER.
new text end

new text begin $7,000,000 in fiscal year 2027 is transferred from the Minnesota forward fund account
established in Minnesota Statutes, section 116J.8752, subdivision 3, to the general fund.
This is a onetime transfer.
new text end

ARTICLE 12

DEPARTMENT OF REVENUE; INDIVIDUAL INCOME AND CORPORATE
FRANCHISE TAXES

Section 1.

Minnesota Statutes 2024, section 289A.08, subdivision 7, is amended to read:

Subd. 7.

Composite income tax returns for nonresident partners, shareholders, and
beneficiaries.

(a) The commissioner may allow a partnership with nonresident partners to
file a composite return and to pay the tax on behalf of nonresident partners who have no
other Minnesota source income. This composite return must include the names, addresses,
Social Security numbers, income allocation, and tax liability for the nonresident partners
electing to be covered by the composite return.

(b) The computation of a partner's tax liability must be determined by multiplying the
income allocated to that partner by the highest rate used to determine the tax liability for
individuals under section 290.06, subdivision 2c. Nonbusiness deductions, standard
deductions, or personal exemptions are not allowed. The computation of a partner's net
investment income tax liability must be computed under section 290.033.

(c) The partnership must submit a request to use this composite return filing method for
nonresident partners. The requesting partnership must file a composite return in the form
prescribed by the commissioner of revenue. The filing of a composite return is considered
a request to use the composite return filing method.

(d) The electing partner must not have any Minnesota source income other than the
income from the partnership, other electing partnerships, and other qualifying entities
electing to file and pay the pass-through entity tax under subdivision 7a. If it is determined
that the electing partner has other Minnesota source income, the inclusion of the income
and tax liability for that partner under this provision will not constitute a return to satisfy
the requirements of subdivision 1. The tax paid for the individual as part of the composite
return is allowed as a payment of the tax by the individual on the date on which the composite
return payment was made. If the electing nonresident partner has no other Minnesota source
income, filing of the composite return is a return for purposes of subdivision 1.

(e) This subdivision does not negate the requirement that an individual pay estimated
tax if the individual's liability would exceed the requirements set forth in section 289A.25.
The individual's liability to pay estimated tax is, however, satisfied when the partnership
pays composite estimated tax in the manner prescribed in section 289A.25.

(f) If an electing partner's share of the partnership's gross income from Minnesota sources
is less than the filing requirements for a nonresident under this subdivision, the tax liability
is zero. However, a statement showing the partner's share of gross income must be included
as part of the composite return.

(g) The election provided in this subdivision is only available to a partner who has no
other Minnesota source income and who is either (1) a full-year nonresident individual or
(2) a trust or estate that does not claim a deduction under either section 651 or 661 of the
Internal Revenue Code.

new text begin (h) The composite return election provided in this subdivision is available to a nonresident
partner who incurs an accelerated gain on installment sales under section 290.0137, paragraph
(a). A nonresident partner who elects to defer the gain on installment sales under section
290.0137, paragraph (b), cannot utilize the composite return election for the partnership
until the recognition of the deferred gain is completed. A nonresident who makes the election
in section 290.0137, paragraph (b), must report the deferred gain on the nonresident's
individual income tax return in the manner prescribed by the commissioner.
new text end

deleted text begin (h) deleted text end new text begin (i) new text end A corporation defined in section 290.9725 and its nonresident shareholders may
make an election under this deleted text begin paragraph deleted text end new text begin subdivision new text end . The provisions covering the partnership
apply to the corporation and the provisions applying to the partner apply to the shareholder.

deleted text begin (i) deleted text end new text begin (j) new text end Estates and trusts distributing current income only and the nonresident individual
beneficiaries of the estates or trusts may make an election under this deleted text begin paragraph deleted text end new text begin subdivision new text end .
The provisions covering the partnership apply to the estate or trust. The provisions applying
to the partner apply to the beneficiary.

deleted text begin (j) deleted text end new text begin (k) new text end For the purposes of this subdivision, "income" has the meaning given in section
290.01, subdivision 19, paragraph (h).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2025.
new text end

Sec. 2.

Minnesota Statutes 2024, section 290.01, subdivision 19, is amended to read:

Subd. 19.

Net income.

(a) For a trust or estate taxable under section 290.03, and a
corporation taxable under section 290.02, the term "net income" means the federal taxable
income, as defined in section 63 of the Internal Revenue Code of 1986, as amended through
the date named in this subdivision, incorporating the federal effective dates of changes to
the Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in sections 290.0131 to 290.0136.

(b) For an individual, the term "net income" means federal adjusted gross income with
the modifications provided in sections 290.0131, 290.0132, and 290.0135 to 290.0137.

(c) In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:

(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;

(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue
Code must be applied by allowing a deduction for capital gain dividends and exempt-interest
dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code;
and

(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.

(d) The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.

(e) The net income of a designated settlement fund as defined in section 468B(d) of the
Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal
Revenue Code.

(f) The Internal Revenue Code of 1986, as amended through May 1, 2023, applies for
taxable years beginning after December 31, 1996.

(g) Except as otherwise provided, references to the Internal Revenue Code in this
subdivision and sections 290.0131 to 290.0136 mean the code in effect for purposes of
determining net income for the applicable year.

(h) In the case of a partnership electing to file a composite return under section 289A.08,
subdivision 7, "net income" means the partner's share of federal adjusted gross income from
the partnership modified by new text begin :
new text end

new text begin (1) new text end the additions provided in section 290.0131, subdivisions 8 to 10, 16, and 17, new text begin and
290.0137, paragraph (a); new text end and

new text begin (2) new text end the subtractions provided in: deleted text begin (1) deleted text end new text begin (i) new text end section 290.0132, subdivisions 9, 27, and 28, to
the extent the amount is assignable or allocable to Minnesota under section 290.17; deleted text begin and (2) deleted text end new text begin
(ii) new text end section 290.0132, subdivision 14 new text begin ; and (iii) section 290.0137, paragraph (c) new text end .

The subtraction allowed under section 290.0132, subdivision 9, is only allowed on the
composite tax computation to the extent the electing partner would have been allowed the
subtraction.

(i) In the case of a qualifying entity electing to pay the pass-through entity tax under
section 289A.08, subdivision 7a, "net income" means the qualifying owner's share of federal
adjusted gross income from the qualifying entity modified by the additions provided in
section 290.0131, subdivisions 5, 8 to 10, 16, and 17, and the subtractions provided in: (1)
section 290.0132, subdivisions 3, 9, 27, and 28, to the extent the amount is assignable or
allocable to Minnesota under section 290.17; and (2) section 290.0132, subdivision 14. The
subtraction allowed under section 290.0132, subdivision 9, is only allowed on the
pass-through entity tax computation to the extent the qualifying owners would have been
allowed the subtraction. The income of both a resident and nonresident qualifying owner
is allocated and assigned to this state as provided for nonresident partners and shareholders
under sections 290.17, 290.191, and 290.20.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2025.
new text end

Sec. 3.

Minnesota Statutes 2024, section 290.0137, is amended to read:

290.0137 ACCELERATED RECOGNITION OF CERTAIN INSTALLMENT
SALE GAINS.

(a) In the case of a nonresident individual or a person who becomes a nonresident
individual during the tax year, taxable net income shall include the amount realized upon
a sale of the assets of, or any interest in, an S corporation or partnership that operated in
Minnesota during the year of sale, including any income or gain to be recognized in future
years pursuant to an installment sale method of reporting under the Internal Revenue Code.

(1) For the purposes of this paragraph, an individual who becomes a nonresident of
Minnesota in any year after an installment sale is required to recognize the full amount of
any income or gain described in this paragraph on the individual's final Minnesota resident
tax return to the extent that such income has not been recognized in a prior year.

(2) For the purposes of this section, "realized" has the meaning given in section 1001(b)
of the Internal Revenue Code.

(3) For the purposes of this section, "installment sale" means any installment sale under
section 453 of the Internal Revenue Code and any other sale that is reported utilizing a
method of accounting authorized under subchapter E of the Internal Revenue Code that
allows taxpayers to delay reporting or recognizing a realized gain until a future year.

(b) Notwithstanding paragraph (a), nonresident taxpayers may elect to defer recognizing
unrecognized installment sale gains by making an election under this paragraph. The election
must be filed on a form to be determined or prescribed by the commissioner and must be
filed by the due date of the individual income tax return, including any extension. Electing
taxpayers must make an irrevocable agreement to:

(1) file Minnesota tax returns in all subsequent years when gains from the installment
sales are recognized and reported to the Internal Revenue Service;

(2) allocate gains to the state of Minnesota as though the gains were realized in the year
of sale under section 290.17, 290.191, or 290.20; and

(3) include all relevant federal tax documents reporting the installment sale with
subsequent Minnesota tax returns.

(c) Income or gain recognized for Minnesota purposes pursuant to paragraph (a) must
be excluded from taxable net income in any future year that deleted text begin the taxpayer files a Minnesota
tax return deleted text end new text begin a composite Minnesota tax return is filed new text end to the extent that the income or gain
has already been subject to tax pursuant to paragraph (a). new text begin If a composite Minnesota tax
return is not filed, then any income or gain recognized for Minnesota purposes under
paragraph (a) must be excluded from taxable net income in any future year in which the
taxpayer files a Minnesota tax return to the extent that the income or gain has already been
subject to tax pursuant to paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2025.
new text end

ARTICLE 13

DEPARTMENT OF REVENUE; PROPERTY TAXES

Section 1.

Minnesota Statutes 2024, section 273.032, is amended to read:

273.032 MARKET VALUE DEFINITION.

(a) Unless otherwise provided, for the purpose of determining any property tax levy
limitation based on market value or any limit on net debt, the issuance of bonds, certificates
of indebtedness, or capital notes based on market value, any qualification to receive state
aid based on market value, or any state aid amount based on market value, the terms "market
value," "estimated market value," and "market valuation," whether equalized or unequalized,
mean the estimated market value of taxable property within the local unit of government
before any of the following or similar adjustments for:

(1) the market value exclusions under:

(i) section 273.11, subdivisions 14a and 14c (vacant platted land);

deleted text begin (ii) section 273.11, subdivisions 19 and 20 (certain improvements to business properties);
deleted text end

deleted text begin (iii) deleted text end new text begin (ii) new text end section 273.11, subdivision 21 (homestead property damaged by mold);

deleted text begin (iv) deleted text end new text begin (iii) new text end section 273.13, subdivision 34 (homestead of a veteran with a disability or
family caregiver); or

deleted text begin (v) deleted text end new text begin (iv) new text end section 273.13, subdivision 35 (homestead market value exclusion); or

(2) the deferment of value under:

(i) the Minnesota Agricultural Property Tax Law, section 273.111;

(ii) the Aggregate Resource Preservation Law, section 273.1115;

(iii) the Minnesota Open Space Property Tax Law, section 273.112;

(iv) the rural preserves property tax program, section 273.114; or

(v) the Metropolitan Agricultural Preserves Act, section 473H.10; or

(3) the adjustments to tax capacity for:

(i) tax increment financing under sections 469.174 to 469.1794;

(ii) fiscal disparities under chapter 276A or 473F; or

(iii) powerline credit under section 273.425.

(b) Estimated market value under paragraph (a) also includes the market value of
tax-exempt property if the applicable law specifically provides that the limitation,
qualification, or aid calculation includes tax-exempt property.

(c) Unless otherwise provided, "market value," "estimated market value," and "market
valuation" for purposes of property tax levy limitations and calculation of state aid, refer
to the estimated market value for the previous assessment year and for purposes of limits
on net debt, the issuance of bonds, certificates of indebtedness, or capital notes refer to the
estimated market value as last finally equalized.

(d) For purposes of a provision of a home rule charter or of any special law that is not
codified in the statutes and that imposes a levy limitation based on market value or any limit
on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market
value, the terms "market value," "taxable market value," and "market valuation," whether
equalized or unequalized, mean "estimated market value" as defined in paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2024, section 273.111, subdivision 9, is amended to read:

Subd. 9.

Additional taxes.

deleted text begin (a) Except as provided in paragraph (b), deleted text end When real property
which is being, or has been valued and assessed under this section no longer qualifies under
subdivision 3, the portion no longer qualifying shall be subject to additional taxes, in the
amount equal to the difference between the taxes determined in accordance with subdivision
4, and the amount determined under subdivision 5. Provided, however, that the amount
determined under subdivision 5 shall not be greater than it would have been had the actual
bona fide sale price of the real property at an arm's-length transaction been used in lieu of
the market value determined under subdivision 5. Such additional taxes shall be extended
against the property on the tax list for the current year, provided, however, that no interest
or penalties shall be levied on such additional taxes if timely paid, and provided further,
that such additional taxes shall only be levied with respect to the last three years that the
said property has been valued and assessed under this section.

deleted text begin (b) Real property that has been valued and assessed under this section prior to May 29,
2008, and that ceases to qualify under this section after May 28, 2008, and is withdrawn
from the program before August 16, 2010, is not subject to additional taxes under this
subdivision or subdivision 3, paragraph (c). If additional taxes have been paid under this
subdivision with respect to property described in this paragraph prior to April 3, 2009, the
county must repay the property owner in the manner prescribed by the commissioner of
revenue.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, sections 272.02, subdivision 31; 273.11, subdivisions 19 and
20; 273.1315, subdivision 1; 273.1385; 273.25; 273.65; 273.66; 273.67; 274.07; 428B.02,
subdivision 7; 477A.085; and 477A.18, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 14

DEPARTMENT OF REVENUE; MISCELLANEOUS

Section 1.

Minnesota Statutes 2024, section 123B.53, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the eligible debt service
revenue of a district is defined as follows:

(1) the amount needed to produce between five and six percent in excess of the amount
needed to meet when due the principal and interest payments on the obligations of the district
for eligible projects according to subdivision 2, excluding the amounts listed in paragraph
(b), minus

(2) the amount of debt service excess levy reduction for that school year calculated
according to the procedure established by the commissioner.

(b) The obligations in this paragraph are excluded from eligible debt service revenue:

(1) obligations under section 123B.61;

(2) the part of debt service principal and interest paid from the taconite environmental
protection fund or Douglas J. Johnson economic protection trust, excluding the portion of
taconite payments from the Iron Range schools and community development account under
section 298.28, subdivision 7a;

(3) obligations for long-term facilities maintenance under section 123B.595;

(4) obligations under section 123B.62; and

(5) obligations equalized under section 123B.535.

(c) For purposes of this section, if a preexisting school district reorganized under sections
123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement of the
preexisting district's bonded indebtedness or capital loans, debt service equalization aid
must be computed separately for each of the preexisting districts.

deleted text begin (d) For purposes of this section, the adjusted net tax capacity determined according to
sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property
generally exempted from ad valorem taxes under section 272.02, subdivision 64.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2024, section 123B.535, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the eligible natural disaster
debt service revenue of a district is defined as the amount needed to produce between five
and six percent in excess of the amount needed to meet when due the principal and interest
payments on the obligations of the district that would otherwise qualify under section
123B.53 under the following conditions:

(1) the district was impacted by a natural disaster event or area occurring January 1,
2005, or later, as declared by the President of the United States of America, which is eligible
for Federal Emergency Management Agency payments;

(2) the natural disaster caused $500,000 or more in damages to school district buildings;
and

(3) the repair and replacement costs are not covered by insurance payments or Federal
Emergency Management Agency payments.

(b) For purposes of this section, the adjusted net tax capacity equalizing factor equals
the quotient derived by dividing the total adjusted net tax capacity of all school districts in
the state for the year before the year the levy is certified by the total number of adjusted
pupil units in the state for the year prior to the year the levy is certified.

deleted text begin (c) For purposes of this section, the adjusted net tax capacity determined according to
sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property
generally exempted from ad valorem taxes under section 272.02, subdivision 64.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2025 Supplement, section 268.19, subdivision 1, is amended
to read:

Subdivision 1.

Use of data.

(a) Except as provided by this section, data gathered from
any person under the administration of the Minnesota Unemployment Insurance Law are
private data on individuals or nonpublic data not on individuals as defined in section 13.02,
subdivisions 9 and 12, and may not be disclosed except according to a district court order
or section 13.05. A subpoena is not considered a district court order. These data may be
disseminated to and used by the following agencies without the consent of the subject of
the data:

(1) state and federal agencies specifically authorized access to the data by state or federal
law;

(2) any agency of any other state or any federal agency charged with the administration
of an unemployment insurance program;

(3) any agency responsible for the maintenance of a system of public employment offices
for the purpose of assisting individuals in obtaining employment;

(4) the public authority responsible for child support in Minnesota or any other state in
accordance with section 518A.83;

(5) human rights agencies within Minnesota that have enforcement powers;

(6) the Department of Revenue to the extent necessary for its duties under Minnesota
laws;

(7) public and private agencies responsible for administering publicly financed assistance
programs for the purpose of monitoring the eligibility of the program's recipients;

(8) the Department of Labor and Industry, the Department of Commerce, and the Bureau
of Criminal Apprehension for uses consistent with the administration of their duties under
Minnesota law;

(9) the Department of Human Services and the Office of Inspector General and its agents
within the Department of Human Services, including county fraud investigators, for
investigations related to recipient or provider fraud and employees of providers when the
provider is suspected of committing public assistance fraud;

(10) the Department of Human Services for the purpose of evaluating medical assistance
services and supporting program improvement;

(11) local and state welfare agencies for monitoring the eligibility of the data subject
for assistance programs, or for any employment or training program administered by those
agencies, whether alone, in combination with another welfare agency, or in conjunction
with the department or to monitor and evaluate the statewide Minnesota family investment
program and other cash assistance programs, the Supplemental Nutrition Assistance Program,
and the Supplemental Nutrition Assistance Program Employment and Training program by
providing data on recipients and former recipients of Supplemental Nutrition Assistance
Program (SNAP) benefits, cash assistance under chapter 256, 256D, 256J, or 256K, child
care assistance under chapter 142E, or medical programs under chapter 256B or 256L or
formerly codified under chapter 256D;

(12) local and state welfare agencies for the purpose of identifying employment, wages,
and other information to assist in the collection of an overpayment debt in an assistance
program;

(13) local, state, and federal law enforcement agencies for the purpose of ascertaining
the last known address and employment location of an individual who is the subject of a
criminal investigation;

(14) the United States Immigration and Customs Enforcement has access to data on
specific individuals and specific employers provided the specific individual or specific
employer is the subject of an investigation by that agency;

(15) the Department of Health for the purposes of epidemiologic investigations;

(16) the Department of Corrections for the purposes of case planning and internal research
for preprobation, probation, and postprobation employment tracking of offenders sentenced
to probation and preconfinement and postconfinement employment tracking of committed
offenders;

deleted text begin (17) the state auditor to the extent necessary to conduct audits of job opportunity building
zones as required under section 469.3201;
deleted text end

deleted text begin (18) deleted text end new text begin (17) new text end the Office of Higher Education for purposes of supporting program
improvement, system evaluation, and research initiatives including the Statewide
Longitudinal Education Data System;

deleted text begin (19) deleted text end new text begin (18) new text end the Family and Medical Benefits Division of the Department of Employment
and Economic Development to be used as necessary to administer chapter 268B; and

deleted text begin (20) deleted text end new text begin (19) new text end the executive director or interim executive director of the Minnesota Secure
Choice Retirement Program established under chapter 187 for the purposes of assisting with
communication with employers and to verify employer compliance with chapter 187.

(b) Data on individuals and employers that are collected, maintained, or used by the
department in an investigation under section 268.182 are confidential as to data on individuals
and protected nonpublic data not on individuals as defined in section 13.02, subdivisions 3
and 13, and must not be disclosed except under statute or district court order or to a party
named in a criminal proceeding, administrative or judicial, for preparation of a defense.

(c) Data gathered by the department in the administration of the Minnesota unemployment
insurance program must not be made the subject or the basis for any suit in any civil
proceedings, administrative or judicial, unless the action is initiated by the department.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2024, section 270B.14, subdivision 3, is amended to read:

Subd. 3.

Administration of enterprise and job opportunity programs.

The
commissioner may disclose return information relating to the taxes imposed by chapters
290 and 297A to the Department of Employment and Economic Development or a
municipality with a border city enterprise zone as defined under section 469.166, but only
as necessary to administer the funding limitations under section 469.169 deleted text begin , or to the Department
of Employment and Economic Development and appropriate officials from the local
government units in which a qualified business is located but only as necessary to enforce
the job opportunity building zone benefits under section 469.315 deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2024, section 270B.15, is amended to read:

270B.15 DISCLOSURE TO LEGISLATIVE AUDITOR deleted text begin AND STATE AUDITOR deleted text end .

deleted text begin (a) deleted text end Returns and return information must be disclosed to the legislative auditor to the
extent necessary for the legislative auditor to carry out sections 3.97 to 3.979.

deleted text begin (b) The commissioner must disclose return information, including the report required
under section 289A.12, subdivision 15, to the state auditor to the extent necessary to conduct
audits of job opportunity building zones as required under section 469.3201.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2024, section 270C.055, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Venue. new text end

new text begin Unless otherwise provided in chapter 289A, if two or more criminal
offenses under the state revenue laws or chapter 349 are committed by the same person in
more than one county, the accused may be prosecuted for all the offenses in any county in
which one of the offenses was committed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for criminal offenses committed after
July 31, 2026.
new text end

Sec. 7.

Minnesota Statutes 2024, section 290.01, subdivision 29, is amended to read:

Subd. 29.

Taxable income.

The term "taxable income" means:

(1) for individuals, estates, and trusts, the same as taxable net income;

(2) for corporations, the taxable net income less

(i) the net operating loss deduction under section 290.095; new text begin and
new text end

(ii) the dividends received deduction under section 290.21, subdivision 4 deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (iii) the exemption for operating in a job opportunity building zone under section 469.317.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Minnesota Statutes 2024, section 290.0921, subdivision 3, is amended to read:

Subd. 3.

Alternative minimum taxable income.

"Alternative minimum taxable income"
is Minnesota net income as defined in section 290.01, subdivision 19, and includes the
adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e), (f), and (h) of
the Internal Revenue Code. If a corporation files a separate company Minnesota tax return,
the minimum tax must be computed on a separate company basis. If a corporation is part
of a tax group filing a unitary return, the minimum tax must be computed on a unitary basis.
The following adjustments must be made.

(1) The portion of the depreciation deduction allowed for federal income tax purposes
under section 168(k) of the Internal Revenue Code that is required as an addition under
section 290.0133, subdivision 11, is disallowed in determining alternative minimum taxable
income.

(2) The subtraction for depreciation allowed under section 290.0134, subdivision 13, is
allowed as a depreciation deduction in determining alternative minimum taxable income.

(3) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d)
of the Internal Revenue Code does not apply.

(4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal
Revenue Code does not apply.

(5) The tax preference for depletion under section 57(a)(1) of the Internal Revenue Code
does not apply.

(6) The tax preference for tax exempt interest under section 57(a)(5) of the Internal
Revenue Code does not apply.

(7) The tax preference for charitable contributions of appreciated property under section
57(a)(6) of the Internal Revenue Code does not apply.

(8) For purposes of calculating the adjustment for adjusted current earnings in section
56(g) of the Internal Revenue Code, the term "alternative minimum taxable income" as it
is used in section 56(g) of the Internal Revenue Code, means alternative minimum taxable
income as defined in this subdivision, determined without regard to the adjustment for
adjusted current earnings in section 56(g) of the Internal Revenue Code.

(9) For purposes of determining the amount of adjusted current earnings under section
56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section 56(g)(4)
of the Internal Revenue Code with respect to (i) the amount of foreign dividend gross-up
subtracted as provided in section 290.0134, subdivision 2, or (ii) the amount of refunds of
income, excise, or franchise taxes subtracted as provided in section 290.0134, subdivision
8.

deleted text begin (10) Alternative minimum taxable income excludes the income from operating in a job
opportunity building zone as provided under section 469.317.
deleted text end

deleted text begin Items of tax preference must not be reduced below zero as a result of the modifications
in this subdivision.
deleted text end

deleted text begin (11) deleted text end new text begin (10) new text end The subtraction for disallowed section 280E expenses under section 290.0134,
subdivision 19, is allowed as a deduction in determining alternative minimum taxable
income.

new text begin Items of tax preference must not be reduced below zero as a result of the modifications
in this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

Minnesota Statutes 2024, section 290.0922, subdivision 2, is amended to read:

Subd. 2.

Exemptions.

The following entities are exempt from the tax imposed by this
section:

(1) corporations exempt from tax under section 290.05;

(2) real estate investment trusts;

(3) regulated investment companies or a fund thereof;

(4) entities having a valid election in effect under section 860D(b) of the Internal Revenue
Code;

(5) township mutual insurance companies; new text begin and
new text end

(6) cooperatives organized under chapter 308A, 308B, or 308C that provide housing
exclusively to persons age 55 and over and are classified as homesteads under section
273.124, subdivision 3 deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (7) a qualified business as defined under section 469.310, subdivision 11, if for the
taxable year all of its property is located in a job opportunity building zone designated under
section 469.314 and all of its payroll is a job opportunity building zone payroll under section
469.310.
deleted text end

Entities not specifically exempted by this subdivision are subject to tax under this section,
notwithstanding section 290.05.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10.

Minnesota Statutes 2024, section 290.0922, subdivision 3, is amended to read:

Subd. 3.

Definitions.

(a) "Minnesota sales or receipts" means the total sales apportioned
to Minnesota pursuant to section 290.191, subdivision 5, the total receipts attributed to
Minnesota pursuant to section 290.191, subdivisions 6 to 8, and/or the total sales or receipts
apportioned or attributed to Minnesota pursuant to any other apportionment formula
applicable to the taxpayer.

(b) "Minnesota property" means total Minnesota tangible property as provided in section
290.191, subdivisions 9 to 11, new text begin and new text end any other tangible property located in Minnesota deleted text begin , but
does not include the property of a qualified business as defined under section 469.310,
subdivision 11, that is located in a job opportunity building zone designated under section
469.314 deleted text end . Intangible property shall not be included in Minnesota property for purposes of
this section. Taxpayers who do not utilize tangible property to apportion income shall
nevertheless include Minnesota property for purposes of this section. On a return for a short
taxable year, the amount of Minnesota property owned, as determined under section 290.191,
shall be included in Minnesota property based on a fraction in which the numerator is the
number of days in the short taxable year and the denominator is 365.

(c) "Minnesota payrolls" means total Minnesota payrolls as provided in section 290.191,
subdivision 12, but does not include the job opportunity building zone payroll under section
469.310, subdivision 8, of a qualified business as defined under section 469.310, subdivision
11. Taxpayers who do not utilize payrolls to apportion income shall nevertheless include
Minnesota payrolls for purposes of this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11.

Minnesota Statutes 2024, section 295.52, subdivision 5, is amended to read:

Subd. 5.

Volunteer ambulance services.

Volunteer ambulance services are not subject
to the tax under this section. For purposes of this requirement, "volunteer ambulance service"
means an ambulance service in which all of the individuals whose primary responsibility
is direct patient care meet the definition of volunteer new text begin ambulance attendant new text end under section
144E.001, subdivision 15. The ambulance service may employ administrative and support
staff, and remain eligible for this exemption, if the primary responsibility of these staff is
not direct patient care.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

Minnesota Statutes 2025 Supplement, section 297A.75, subdivision 1, is amended
to read:

Subdivision 1.

Tax collected.

The tax on the gross receipts from the sale of the following
exempt items must be imposed and collected as if the sale were taxable and the rate under
section 297A.62, subdivision 1, applied. The exempt items include:

(1) building materials for an agricultural processing facility exempt under section
297A.71, subdivision 13;

(2) building materials for mineral production facilities exempt under section 297A.71,
subdivision 14;

(3) building materials for correctional facilities under section 297A.71, subdivision 3;

(4) building materials used in a residence for veterans with a disability exempt under
section 297A.71, subdivision 11;

(5) elevators and building materials exempt under section 297A.71, subdivision 12;

(6) materials and supplies for qualified low-income housing under section 297A.71,
subdivision 23;

(7) materials, supplies, and equipment for municipal electric utility facilities under
section 297A.71, subdivision 35;

deleted text begin (8) equipment and materials used for the generation, transmission, and distribution of
electrical energy and an aerial camera package exempt under section 297A.68, subdivision
37;
deleted text end

deleted text begin (9) deleted text end new text begin (8) new text end commuter rail vehicle and repair parts under section 297A.70, subdivision 3,
paragraph (a), clause (10);

deleted text begin (10) deleted text end new text begin (9) new text end materials, supplies, and equipment for construction or improvement of projects
and facilities under section 297A.71, subdivision 40;

deleted text begin (11) deleted text end new text begin (10) new text end enterprise information technology equipment and computer software for use
in a qualified data center, qualified large-scale data center, or qualified refurbished data
center exempt under section 297A.68, subdivision 42;

deleted text begin (12) deleted text end new text begin (11) new text end materials, supplies, and equipment for qualifying capital projects under section
297A.71, subdivision 44, paragraphs (a) and (b);

deleted text begin (13) deleted text end new text begin (12) new text end items purchased for use in providing critical access dental services exempt
under section 297A.70, subdivision 7, paragraph (c);

deleted text begin (14) deleted text end new text begin (13) new text end items and services purchased under a business subsidy agreement for use or
consumption primarily in greater Minnesota exempt under section 297A.68, subdivision
44;

deleted text begin (15) deleted text end new text begin (14) new text end building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivisions deleted text begin 49 deleted text end deleted text begin ; deleted text end 50, paragraph (b) deleted text begin ; deleted text end new text begin , new text end and 51;

deleted text begin (16) deleted text end new text begin (15) new text end building materials, equipment, and supplies for qualifying capital projects
under section 297A.71, subdivision 52;

deleted text begin (17) deleted text end new text begin (16) new text end building materials, equipment, and supplies for constructing, remodeling,
expanding, or improving a fire station, police station, or related facilities exempt under
section 297A.71, subdivision 53; and

deleted text begin (18) deleted text end new text begin (17) new text end building materials, equipment, and supplies for constructing, remodeling, or
improving a sustainable aviation fuel facility exempt under section 297A.71, subdivision
54.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 13.

Minnesota Statutes 2025 Supplement, section 297A.75, subdivision 2, is amended
to read:

Subd. 2.

Refund; eligible persons.

Upon application on forms prescribed by the
commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must
be paid to the applicant. Only the following persons may apply for the refund:

(1) for subdivision 1, clauses (1), (2), and deleted text begin (13) deleted text end new text begin (12) new text end , the applicant must be the purchaser;

(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;

(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
provided in United States Code, title 38, chapter 21;

(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
property;

(5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;

(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a
joint venture of municipal electric utilities;

(7) for subdivision 1, clauses deleted text begin (8), (11), and (14) deleted text end new text begin (10) and (13) new text end , the owner of the qualifying
business;

(8) for subdivision 1, clauses deleted text begin (9), (10), (12), (16), and (17) deleted text end new text begin (8), (9), (11), (15), and (16) new text end ,
the applicant must be the governmental entity that owns or contracts for the project or
facility;

(9) for subdivision 1, clause deleted text begin (15) deleted text end new text begin (14) new text end , the applicant must be the owner or developer of
the building or project; and

(10) for subdivision 1, clause deleted text begin (18) deleted text end new text begin (17) new text end , the applicant must be the owner or developer
of the sustainable aviation fuel facility.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 14.

Minnesota Statutes 2025 Supplement, section 297A.75, subdivision 3, is amended
to read:

Subd. 3.

Application.

(a) The application must include sufficient information to permit
the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor,
or builder, under subdivision 1, clauses (3) to deleted text begin (12) deleted text end new text begin (11) new text end or deleted text begin (14) to (18) deleted text end new text begin (13) to (17) new text end , the
contractor, subcontractor, or builder must furnish to the refund applicant a statement including
the cost of the exempt items and the taxes paid on the items unless otherwise specifically
provided by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to
refunds under this section.

(b) An applicant may not file more than two applications per calendar year for refunds
for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 15.

Minnesota Statutes 2025 Supplement, section 297A.94, is amended to read:

297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section, the commissioner shall deposit the revenues,
including interest and penalties, derived from the taxes imposed by this chapter in the state
treasury and credit them to the general fund.

(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
account in the special revenue fund if:

(1) the taxes are derived from sales and use of property and services purchased for the
construction and operation of an agricultural resource project; and

(2) the purchase was made on or after the date on which a conditional commitment was
made for a loan guaranty for the project under section 41A.04, subdivision 3.

The commissioner of management and budget shall certify to the commissioner the date on
which the project received the conditional commitment. The amount deposited in the loan
guaranty account must be reduced by any refunds and by the costs incurred by the Department
of Revenue to administer and enforce the assessment and collection of the taxes.

(c) The commissioner shall deposit the revenues, including interest and penalties, derived
from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3,
paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:

(1) first to the general obligation special tax bond debt service account in each fiscal
year the amount required by section 16A.661, subdivision 3, paragraph (b); and

(2) after the requirements of clause (1) have been met, the balance to the general fund.

(d) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit
in the state treasury the revenues collected under section 297A.64, subdivision 1, including
interest and penalties and minus refunds, and credit them to the highway user tax distribution
fund.

(e) The commissioner shall deposit the revenues, including interest and penalties,
collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
general fund. By July 15 of each year the commissioner shall transfer to the highway user
tax distribution fund an amount equal to the excess fees collected under section 297A.64,
subdivision 5, for the previous calendar year.

(f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the deposit
of revenues under paragraph (d), the commissioner shall deposit into the state treasury and
credit to the highway user tax distribution fund an amount equal to the estimated revenues
derived from the tax rate imposed under section 297A.62, subdivision 1, on the lease or
rental for not more than 28 days of rental motor vehicles subject to section 297A.64. The
commissioner shall estimate the amount of sales tax revenue deposited under this paragraph
based on the amount of revenue deposited under paragraph (d).

(g) Each month the commissioner must deposit an amount equal to the estimated revenues
derived from the taxes imposed under section 297A.62, subdivision 1, on the sale and
purchase of motor vehicle repair and replacement parts in the state treasury and credit:

(1) a percentage to the highway user tax distribution fund as follows:

(i) 43.5 percent in each of fiscal years 2024 and 2025;

(ii) 43 percent in fiscal year 2026;

(iii) 41 percent in fiscal year 2027;

(iv) 36 percent in fiscal year 2028;

(v) 30 percent in fiscal year 2029;

(vi) 36 percent in each of fiscal years 2030 to 2034;

(vii) 38.5 percent in fiscal year 2035;

(viii) 41 percent in fiscal year 2036; and

(ix) 43.5 percent in fiscal year 2037 and thereafter;

(2) a percentage to the transportation advancement account under section 174.49 as
follows:

(i) 3.5 percent in fiscal year 2024;

(ii) 4.5 percent in fiscal year 2025;

(iii) 5.5 percent in fiscal year 2026;

(iv) 7.5 percent in fiscal year 2027;

(v) 14.5 percent in fiscal year 2028;

(vi) 21.5 percent in fiscal year 2029;

(vii) 28.5 percent in fiscal year 2030;

(viii) 36.5 percent in fiscal year 2031;

(ix) 44.5 percent in fiscal year 2032; and

(x) 56.5 percent in fiscal year 2033 and thereafter; and

(3) the remainder in each fiscal year to the general fund.

After each February forecast, and prior to the following April 15, the commissioner shall
estimate the monthly deposit amount for use in the following fiscal year based on the estimate
of average revenue derived from the taxes imposed under section 297A.62, subdivision 1,
on the sale and purchase of motor vehicle repair and replacement parts from the department's
three most recent consumption tax models. new text begin If, after the commissioner estimates the monthly
deposit amounts and prior to July 1, the rate of tax imposed under section 297A.62,
subdivision 1, or the percentages specified under this paragraph are impacted by a law
change, then the commissioner must update the estimated deposit amount by July 15. new text end For
purposes of this paragraph, "motor vehicle" has the meaning given in section 297B.01,
subdivision 11, and "motor vehicle repair and replacement parts" includes (i) all parts, tires,
accessories, and equipment incorporated into or affixed to the motor vehicle as part of the
motor vehicle maintenance and repair, and (ii) paint, oil, and other fluids that remain on or
in the motor vehicle as part of the motor vehicle maintenance or repair. For purposes of this
paragraph, "tire" means any tire of the type used on highway vehicles, if wholly or partially
made of rubber and if marked according to federal regulations for highway use.

(h) 81.56 percent of the revenues, including interest and penalties, transmitted to the
commissioner under section 297A.65, must be deposited by the commissioner in the state
treasury as follows:

(1) 47.5 percent of the receipts must be deposited in the heritage enhancement account
in the game and fish fund, and may be spent only on activities that improve, enhance, or
protect fish and wildlife resources, including conservation, restoration, and enhancement
of land, water, and other natural resources of the state;

(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
be spent only for state parks and trails;

(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
be spent only on metropolitan park and trail grants;

(4) three percent of the receipts must be deposited in the natural resources fund, and
may be spent only on local trail grants;

(5) two percent of the receipts must be deposited in the natural resources fund, and may
be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory,
and the Duluth Zoo; and

(6) 2.5 percent of the receipts must be deposited in the pollinator account established in
section 103B.101, subdivision 19.

(i) 1.5 percent of the revenues, including interest and penalties, transmitted to the
commissioner under section 297A.65 must be deposited in a regional parks and trails account
in the natural resources fund and may only be spent for parks and trails of regional
significance outside of the seven-county metropolitan area under section 85.535, based on
recommendations from the Greater Minnesota Regional Parks and Trails Commission under
section 85.536.

(j) 1.5 percent of the revenues, including interest and penalties, transmitted to the
commissioner under section 297A.65 must be deposited in an outdoor recreational
opportunities for underserved communities account in the natural resources fund and may
only be spent on projects and activities that connect diverse and underserved Minnesotans
through expanding cultural environmental experiences, exploration of their environment,
and outdoor recreational activities.

(k) The revenue dedicated under paragraph (h) may not be used as a substitute for
traditional sources of funding for the purposes specified, but the dedicated revenue shall
supplement traditional sources of funding for those purposes. Land acquired with money
deposited in the game and fish fund under paragraph (h) must be open to public hunting
and fishing during the open season, except that in aquatic management areas or on lands
where angling easements have been acquired, fishing may be prohibited during certain times
of the year and hunting may be prohibited. At least 87 percent of the money deposited in
the game and fish fund for improvement, enhancement, or protection of fish and wildlife
resources under paragraph (h) must be allocated for field operations.

(l) The commissioner must deposit the revenues, including interest and penalties minus
any refunds, derived from the sale of items regulated under section 624.20, subdivision 1,
that may be sold to persons 18 years old or older and that are not prohibited from use by
the general public under section 624.21, in the state treasury and credit:

(1) 25 percent to the volunteer fire assistance grant account established under section
88.068;

(2) 25 percent to the fire safety account established under section 297I.06, subdivision
3; and

(3) the remainder to the general fund.

For purposes of this paragraph, the percentage of total sales and use tax revenue derived
from the sale of items regulated under section 624.20, subdivision 1, that are allowed to be
sold to persons 18 years old or older and are not prohibited from use by the general public
under section 624.21, is a set percentage of the total sales and use tax revenues collected in
the state, with the percentage determined under Laws 2017, First Special Session chapter
1, article 3, section 39.

(m) The revenues deposited under paragraphs (a) to (l) do not include the revenues,
including interest and penalties, generated by the sales tax imposed under section 297A.62,
subdivision 1a, which must be deposited as provided under the Minnesota Constitution,
article XI, section 15.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2026.
new text end

Sec. 16.

Minnesota Statutes 2024, section 297B.03, is amended to read:

297B.03 EXEMPTIONS.

There is specifically exempted from the provisions of this chapter and from computation
of the amount of tax imposed by it the following:

(1) purchase or use, including use under a lease purchase agreement or installment sales
contract made pursuant to section 465.71, of any motor vehicle by the United States and its
agencies and instrumentalities and by any person described in and subject to the conditions
provided in section 297A.67, subdivision 11;

(2) purchase or use of any motor vehicle by any person who was a resident of another
state or country at the time of the purchase and who subsequently becomes a resident of
Minnesota, provided the purchase occurred more than 60 days prior to the date such person
began residing in the state of Minnesota and the motor vehicle was registered in the person's
name in the other state or country;

(3) purchase or use of any motor vehicle by any person making a valid election to be
taxed under the provisions of section 297A.90;

(4) purchase or use of any motor vehicle previously registered in the state of Minnesota
when such transfer constitutes a transfer within the meaning of section 118, 331, 332, 336,
337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal Revenue Code,
as amended through December 16, 2016;

(5) purchase or use of any vehicle owned by a resident of another state and leased to a
Minnesota-based private or for-hire carrier for regular use in the transportation of persons
or property in interstate commerce provided the vehicle is titled in the state of the owner or
secured party, and that state does not impose a sales tax or sales tax on motor vehicles used
in interstate commerce;

(6) purchase or use of a motor vehicle by a private nonprofit or public educational
institution for use as an instructional aid in automotive training programs operated by the
institution. "Automotive training programs" includes motor vehicle body and mechanical
repair courses but does not include driver education programs;

(7) purchase of a motor vehicle by an ambulance service licensed under section 144E.10
when that vehicle is equipped and specifically intended for emergency response or for
providing ambulance service;

(8) purchase of a motor vehicle by or for a public library, as defined in section 134.001,
subdivision 2, as a bookmobile or library delivery vehicle;

(9) purchase of a ready-mixed concrete truck;

(10) purchase or use of a motor vehicle by a town for use exclusively for road
maintenance, including snowplows and dump trucks, but not including automobiles, vans,
or pickup trucks;

(11) purchase or use of a motor vehicle by a corporation, society, association, foundation,
or institution organized and operated exclusively for charitable, religious, or educational
purposes, except a public school, university, or library, but only if the vehicle is:

(i) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a
passenger automobile, as defined in section 168.002, if the automobile is designed and used
for carrying more than nine persons including the driver; and

(ii) intended to be used primarily to transport tangible personal property or individuals,
other than employees, to whom the organization provides service in performing its charitable,
religious, or educational purpose;

(12) purchase of a motor vehicle for use by a transit provider exclusively to provide
transit service is exempt if the transit provider is either (i) receiving financial assistance or
reimbursement under section 174.24 or 473.384, or (ii) operating under section 174.29,
473.388, or 473.405;

deleted text begin (13) purchase or use of a motor vehicle by a qualified business, as defined in section
469.310, located in a job opportunity building zone, if the motor vehicle is principally
garaged in the job opportunity building zone and is primarily used as part of or in direct
support of the person's operations carried on in the job opportunity building zone. The
exemption under this clause applies to sales, if the purchase was made and delivery received
during the duration of the job opportunity building zone. The exemption under this clause
also applies to any local sales and use tax;
deleted text end

deleted text begin (14) deleted text end new text begin (13) new text end purchase of a leased vehicle by the lessee who was a participant in a
lease-to-own program from a charitable organization that is:

(i) described in section 501(c)(3) of the Internal Revenue Code; and

(ii) licensed as a motor vehicle lessor under section 168.27, subdivision 4;

deleted text begin (15) deleted text end new text begin (14) new text end purchase of a motor vehicle used exclusively as a mobile medical unit for the
provision of medical or dental services by a federally qualified health center, as defined
under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus Budget
Reconciliation Act of 1990; and

deleted text begin (16) deleted text end new text begin (15) new text end purchase of a motor vehicle by a veteran having a total service-connected
disability, as defined in section 171.01, subdivision 51.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 17.

Minnesota Statutes 2025 Supplement, section 299C.76, subdivision 1, is amended
to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following definitions
apply.

(b) "Federal tax information" means federal tax returns and return information or
information derived or created from federal tax returns, in possession of or control by the
requesting agency, that is covered by the safeguarding provisions of section 6103(p)(4) of
the Internal Revenue Code.

(c) "IRS Publication 1075" means Internal Revenue Service Publication 1075 that
provides guidance and requirements for the protection and confidentiality of federal tax
information as required in section 6103(p)(4) of the Internal Revenue Code.

(d) "National criminal history record information" means the Federal Bureau of
Investigation identification records as defined in Code of Federal Regulations, title 28,
section 20.3(d).

(e) "Requesting agency" means the Department of Revenue; Department of Employment
and Economic Development; Department of Human Services; Department of Children,
Youth, and Families; board of directors of MNsure; Department of Information Technology
Services; attorney general; new text begin Office of the Legislative Auditor; new text end and counties.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 18. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, sections 272.02, subdivision 64; 272.029, subdivision 7;
289A.12, subdivision 15; 290.06, subdivision 29; 297A.68, subdivision 37; 469.310; 469.311;
469.312; 469.313; 469.314; 469.315; 469.316; 469.317; 469.318; 469.3181; 469.319;
469.3191; 469.3192; 469.3193; 469.320; and 469.3201, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

APPENDIX

Repealed Minnesota Statutes: S5052-1

272.02 EXEMPT PROPERTY.

Subd. 31.

Business incubator property.

Property owned by a nonprofit charitable organization that qualifies for tax exemption under section 501(c)(3) of the Internal Revenue Code that is intended to be used as a business incubator in a high-unemployment county, is exempt. As used in this subdivision, a "business incubator" is a facility used for the development of nonretail businesses, offering access to equipment, space, services, and advice to the tenant businesses, for the purpose of encouraging economic development, diversification, and job creation in the area served by the organization, and "high-unemployment county" is a county that had an average annual unemployment rate of 7.9 percent or greater in 1997. Property that qualifies for the exemption under this subdivision is limited to no more than two contiguous parcels and structures that do not exceed in the aggregate 40,000 square feet. This exemption expires after taxes payable in 2016.

Subd. 64.

Job opportunity building zone property.

(a) Improvements to real property, and personal property, classified under section 273.13, subdivision 24, and located within a job opportunity building zone, designated under section 469.314, are exempt from ad valorem taxes levied under chapter 275.

(b) Improvements to real property, and tangible personal property, of an agricultural production facility located within an agricultural processing facility zone, designated under section 469.314, is exempt from ad valorem taxes levied under chapter 275.

(c) For property to qualify for exemption under paragraph (a), the occupant must be a qualified business, as defined in section 469.310.

(d) The exemption applies beginning for the first assessment year after designation of the job opportunity building zone by the commissioner of employment and economic development. The exemption applies to each assessment year that begins during the duration of the job opportunity building zone. To be exempt, the property must be occupied by July 1 of the assessment year by a qualified business that has signed the business subsidy agreement and relocation agreement, if required, by July 1 of the assessment year. This exemption does not apply to:

(1) the levy under section 475.61 or similar levy provisions under any other law to pay general obligation bonds; or

(2) other school district levies included in the debt service levy of the district under section 123B.55.

(e) Except for property of a business that was exempt under this subdivision for taxes payable in 2008, a business must notify the county assessor in writing of eligibility under this subdivision by July 1 in order to begin receiving the exemption under this subdivision for taxes payable in the following year. The business need not annually notify the county assessor of its continued exemption under this subdivision, but must notify the county assessor immediately if the exemption no longer applies.

272.029 WIND ENERGY PRODUCTION TAX.

Subd. 7.

Exemption.

The tax imposed under this section does not apply to electricity produced by wind energy conversion systems located in a job opportunity building zone for the duration of the zone. The exemption applies beginning for the first calendar year after designation of the zone and applies to each calendar year that begins during the designation of the zone. The exemption only applies if the owner of the system is a qualified business under section 469.310, subdivision 11, who has entered into a business subsidy agreement that covers the land on which the system is situated.

273.11 VALUATION OF PROPERTY.

Subd. 19.

Valuation exclusion for improvements to certain business property.

Property classified under section 273.13, subdivision 24, which is eligible for the preferred classification rate on the market value up to $150,000, shall qualify for a valuation exclusion for assessment purposes, provided all of the following conditions are met:

(1) the building must be at least 50 years old at the time of the improvement or damaged by the 1997 floods;

(2) the building must be located in a city or town with a population of 10,000 or less that is located outside the seven-county metropolitan area, as defined in section 473.121, subdivision 2;

(3) the total estimated market value of the land and buildings must be $100,000 or less prior to the improvement and prior to the damage caused by the 1997 floods;

(4) the current year's estimated market value of the property must be equal to or less than the property's estimated market value in each of the two previous years' assessments;

(5) a building permit must have been issued prior to the commencement of the improvement, or if the building is located in a city or town which does not have a building permit process, the property owner must notify the assessor prior to the commencement of the improvement;

(6) the property, including its improvements, has received no public assistance, grants or financing except, that in the case of property damaged by the 1997 floods, the property is eligible to the extent that the flood losses are not reimbursed by insurance or any public assistance, grants, or financing;

(7) the property is not receiving a property tax abatement under section 469.1813; and

(8) the improvements are made after the effective date of Laws 1997, chapter 231, and prior to January 1, 1999.

The assessor shall estimate the market value of the building in the assessment year immediately following the year that (1) the building permit was taken out, or (2) the taxpayer notified the assessor that an improvement was to be made. If the estimated market value of the building has increased over the prior year's assessment, the assessor shall note the amount of the increase on the property's record, and that amount shall be subtracted from the value of the property in each year for five years after the improvement has been made, at which time an amount equal to 20 percent of the excluded value shall be added back in each of the five subsequent assessment years.

For any property, there can be no more than two improvements qualifying for exclusion under this subdivision. The maximum amount of value that can be excluded from any property under this subdivision is $50,000.

The assessor shall require an application, including documentation of the age of the building from the owner, if unknown by the assessor. Applications must be received prior to July 1 of any year in order to be effective for taxes payable in the following year.

For purposes of this subdivision, "population" has the same meaning given in section 477A.011, subdivision 3.

Subd. 20.

Valuation exclusion for improvements to certain business property.

Property classified under section 273.13, subdivision 24, qualifies for a valuation exclusion for assessment purposes, provided all of the following conditions are met:

(1) the building must have been damaged by the 2002 floods;

(2) the building must be located in a city or town with a population of 10,000 or less that is located in a county in the area included in DR-1419;

(3) the total estimated market value of the land and buildings must be $150,000 or less for assessment year 2002;

(4) a building permit must have been issued prior to the commencement of the improvement, or if the building is located in a city or town which does not have a building permit process, the property owner must notify the assessor prior to the commencement of the improvement;

(5) the property is not receiving a property tax abatement under section 469.1813; and

(6) the improvements are made before January 1, 2004.

The assessor shall estimate the market value of the building in the assessment year immediately following the year that (1) the building permit was taken out, or (2) the taxpayer notified the assessor that an improvement was to be made. If the estimated market value of the building has increased over the 2002 assessment before any reassessment due to flood damage, the assessor shall note the amount of the increase on the property's record, and that amount shall be subtracted from the value of the property in each year for five years after the improvement has been made. In each of the next five subsequent assessment years, an amount equal to 20 percent of the value excluded in the fifth year for that improvement shall be added back.

The maximum amount of value that can be excluded for all improvements to any property under this subdivision is $50,000.

The assessor shall require an application. Applications must be received by December 31, 2002, or December 31, 2003, in order to be effective for taxes payable in the following year.

For purposes of this subdivision, "population" has the meaning given in section 477A.011, subdivision 3.

273.1315 CERTIFICATION OF CLASS 1B PROPERTY.

Subdivision 1.

Class 1b homestead declaration before 2009.

Any property owner seeking classification and assessment of the owner's homestead as class 1b property pursuant to section 273.13, subdivision 22, paragraph (b), on or before October 1, 2008, shall file with the commissioner of revenue a 1b homestead declaration, on a form prescribed by the commissioner. The declaration shall contain the following information:

(1) the information necessary to verify that on or before June 30 of the filing year, the property owner or the owner's spouse satisfies the requirements of section 273.13, subdivision 22, paragraph (b), for 1b classification; and

(2) any additional information prescribed by the commissioner.

The declaration must be filed on or before October 1 to be effective for property taxes payable during the succeeding calendar year. The declaration and any supplementary information received from the property owner pursuant to this subdivision shall be subject to chapter 270B. If approved by the commissioner, the declaration remains in effect until the property no longer qualifies under section 273.13, subdivision 22, paragraph (b). Failure to notify the commissioner within 30 days that the property no longer qualifies under that paragraph because of a sale, change in occupancy, or change in the status or condition of an occupant shall result in the penalty provided in section 273.124, subdivision 13b, computed on the basis of the class 1b benefits for the property, and the property shall lose its current class 1b classification.

The commissioner shall provide to the assessor on or before November 1 a listing of the parcels of property qualifying for 1b classification.

273.1385 AID FOR PUBLIC EMPLOYEES RETIREMENT ASSOCIATION EMPLOYER CONTRIBUTION RATE INCREASE.

Subdivision 1.

Aid to offset rate increase.

Beginning with the December 26, 1997, payment, and according to the schedule for payment of local aid under section 477A.015 thereafter, the commissioner of revenue shall pay to each city, county, town, and other nonschool jurisdiction an amount equal to 0.35 percent of the fiscal year 1997 payroll for employees who were members of the general plan of the Public Employees Retirement Association. Except for the December 1997 distribution under this section, the amount of aid must be certified before September 1 of the year preceding the distribution year to the affected local government. The executive director of the Public Employees Retirement Association shall certify the general plan fiscal year covered payroll and other information requested by the commissioner of revenue, on or before August 1, 1997, and in subsequent years where necessary, in order to facilitate administration of this section. The amount necessary to make these aid payments is appropriated annually from the general fund to the commissioner of revenue. Expenditures under this section are estimated to be $7,942,500 in fiscal year 1998, and $15,885,000 in each subsequent fiscal year, less any future reductions under subdivision 2.

Subd. 2.

Limit on aid and potential future permanent aid reductions.

(a) The aid amount received by any jurisdiction in fiscal year 2000 or any year thereafter may not exceed the amount it received in fiscal year 1999. The commissioner may, from time to time, request the most recent fiscal year payroll information by jurisdiction to be certified by the executive director of the Public Employees Retirement Association. For any jurisdiction where newly certified public employees retirement association general plan payroll is significantly lower than the fiscal 1997 amount, as determined by the commissioner, the commissioner shall recalculate the aid amount based on the most recent fiscal year payroll information, certify the recalculated aid amount for the next distribution year, and permanently reduce the aid amount to that jurisdiction.

(b) Aid to a jurisdiction must not be reduced under this section due to a transfer of an employee from the general plan of the Public Employees Retirement Association to the local government correctional service plan administered by the Public Employees Retirement Association. The executive director of the Public Employees Retirement Association must provide the commissioner of revenue with any information requested by the commissioner to administer this paragraph.

Subd. 3.

Effect of reorganizations.

The commissioner of revenue may adjust the aid amounts for separate jurisdictions to account for significant changes in boundaries or in the form of government, as determined by the commissioner. If a local government function and the associated Public Employees Retirement Association general plan payroll is assumed by either the state, or a nonpublic organization, the aid amounts attributable to the function under this section must terminate.

Subd. 4.

Aid termination.

The aid provided under this section terminates on June 30, 2020.

273.25 LISTS TO BE VERIFIED.

Every person required to list property for taxation shall make out and deliver to the assessor, upon blanks furnished by the assessor, a verified statement of all personal property owned on January 2 of the current year. The person shall also make separate statements in like manner of all personal property possessed or controlled by the person and required by this chapter to be listed for taxation as agent or attorney, guardian, parent, trustee, executor, administrator, receiver, accounting officer, partner, factor, or in any other capacity; but no person shall be required to include in the statement any share of the capital stock of any company or corporation which it is required to list and return as its capital and property for taxation in this state.

273.65 FAILURE TO LIST; EXAMINATION UNDER OATH; DUTIES OF ASSESSOR.

When the assessor shall be of opinion that the person listing property for that person, or for any other person, company, or corporation, has not made a full, fair, and complete list thereof, the assessor may examine such person, under oath, in regard to the amount of the property required to be listed; and, if such person shall refuse to make full discovery under oath, the assessor may list the property of such person, or the person's principal, according to the assessor's best judgment and information.

273.66 OWNER ABSENT OR SICK.

If any person required to list property be sick or absent when the assessor calls for a list thereof, the assessor shall leave at the office or usual place of residence or business of such person a written or printed notice requiring such person to make out and leave at a place, and on or before a day named therein, the statement or list required by this chapter. The date of leaving such notice, and the name of the person so required to list, shall be noted by the assessor in the assessment book.

273.67 PROCEDURE WHEN OWNER DOES NOT LIST OR IS NOT SWORN.

When any person whose duty it is to list shall refuse or neglect to list personal property when called on by the assessor, or to take and subscribe the required oath in regard to the truth of a statement, or any part thereof, the assessor shall enter opposite the name of such person, in an appropriate column, the words "refused to list," or "refused to swear," as the case may be; and when any person whose duty it is to list is absent, or unable from sickness to list, the assessor shall enter opposite the name of such person, in an appropriate column, the word "absent" or "sick." The assessor may administer oaths to all persons who by this chapter are required to swear, or whom the assessor may require to testify, and may examine, upon oath, any person supposed to have knowledge of the amount or value of the personal property of any person refusing to list or to verify a list of personal property.

274.07 LIST BY PERSON SICK OR ABSENT.

If any person required to list property for taxation is prevented by sickness or absence from listing it with the assessor, the person, or the person's agent in charge of the property, may give the auditor a statement of the property value as required by this chapter at any time before the taxes are extended by the county auditor. The auditor shall list the property and correct the corresponding items in the return made by the assessor. No statement may be received from any person who refused or neglected to attest to the statement when required by the assessor. No statement may be received from any person, unless the person makes and files with it an affidavit of absence from the town or district without design to avoid the listing of the property, or was prevented by sickness from giving the assessor the required statement when asked to do so.

289A.12 FILING REQUIREMENTS FOR INFORMATION RETURNS AND REPORTS.

Subd. 15.

Report of job opportunity zone benefits; penalty for failure to file report.

(a) By October 15 of each year, every qualified business, as defined under section 469.310, subdivision 11, must file with the commissioner, on a form prescribed by the commissioner, a report listing the tax benefits under section 469.315 received by the business for the previous year.

(b) The commissioner shall send notice to each business that fails to timely submit the report required under paragraph (a). The notice shall demand that the business submit the report within 60 days. Where good cause exists, the commissioner may extend the period for submitting the report as long as a request for extension is filed by the business before the expiration of the 60-day period. The commissioner shall notify the commissioner of employment and economic development and the appropriate job opportunity subzone administrator whenever notice is sent to a business under this paragraph.

(c) A business that fails to submit the report as required under paragraph (b) is no longer a qualified business under section 469.310, subdivision 11, and is subject to the repayment provisions of section 469.319.

290.06 RATES OF TAX; CREDITS.

Subd. 29.

Job opportunity building zone job credit.

A taxpayer that is a qualified business, as defined in section 469.310, subdivision 11, is allowed a credit as determined under section 469.318 against the tax imposed by this chapter.

297A.68 BUSINESS EXEMPTIONS.

Subd. 37.

Job opportunity building zones.

(a) Purchases of tangible personal property or taxable services by a qualified business, as defined in section 469.310, are exempt if the property or services are primarily used or consumed in a job opportunity building zone designated under section 469.314. For purposes of this subdivision, an aerial camera package, including any camera, computer, and navigation device contained in the package, that is used in an aircraft that is operated under a Federal Aviation Administration Restricted Airworthiness Certificate according to Code of Federal Regulations, title 14, part 21, section 21.25(b)(3), relating to aerial surveying, and that is based, maintained, and dispatched from a job opportunity building zone, qualifies as primarily used or consumed in a job opportunity building zone if the imagery acquired from the aerial camera package is returned to the job opportunity building zone for processing. The exemption for an aerial camera package is limited as provided in this subdivision and the tax must be imposed and collected as if the rate under section 297A.62, subdivision 1, applied and then refunded in the manner provided in section 297A.75. The total amount of the aerial camera package exemption refunded for all taxpayers for all fiscal years is limited to $50,000 in taxes.

(b) Purchase and use of construction materials and supplies used or consumed in, and equipment incorporated into, the construction of improvements to real property in a job opportunity building zone are exempt if the improvements after completion of construction are to be used in the conduct of a qualified business, as defined in section 469.310. This exemption applies regardless of whether the purchases are made by the business or a contractor.

(c) The exemptions under this subdivision apply to a local sales and use tax regardless of whether the local sales tax is imposed on the sales taxable as defined under this chapter.

(d) This subdivision applies to sales, if the purchase was made and delivery received during the duration of the zone.

(e) Notwithstanding the restriction in paragraph (a), which requires items purchased to be primarily used or consumed in the zone, purchases by a qualified business that is an electrical cooperative located in Meeker County of equipment and materials used for the generation, transmission, and distribution of electrical energy are exempt under this subdivision, except that:

(1) the exemption for materials and equipment used or consumed outside the zone must not exceed $200,000 in taxes for all taxpayers for all fiscal years; and

(2) no sales and use tax exemption is allowed for equipment purchased for resale.

For purposes of this paragraph, the tax must be imposed and collected as if the rate under section 297A.62, subdivision 1, applied and then refunded in the manner provided in section 297A.75.

428B.02 ESTABLISHMENT OF TOURISM IMPROVEMENT DISTRICT.

Subd. 7.

Notice to the commissioner of revenue.

Within 30 days of adoption of the ordinance, the governing body must send a copy of the ordinance to the commissioner of revenue.

469.310 DEFINITIONS.

Subdivision 1.

Scope.

For purposes of sections 469.310 to 469.320, the following terms have the meanings given.

Subd. 2.

Agricultural processing facility.

"Agricultural processing facility" means one or more facilities or operations that transform, package, sort, or grade livestock or livestock products, agricultural commodities, or plants or plant products into goods that are used for intermediate or final consumption including goods for nonfood use, and surrounding property.

Subd. 3.

Applicant.

"Applicant" means a local government unit or units applying for designation of an area as a job opportunity building zone or a joint powers board, established under section 471.59, acting on behalf of two or more local government units.

Subd. 4.

Commissioner.

"Commissioner" means the commissioner of employment and economic development.

Subd. 4a.

Create automotive recovery zone.

"Create automotive recovery zone" means a zone designated by the commissioner under section 469.314 that contains a motor vehicle assembly facility.

Subd. 5.

Development plan.

"Development plan" means a plan meeting the requirements of section 469.311.

Subd. 6.

Job opportunity building zone or zone.

"Job opportunity building zone" or "zone" means a zone designated by the commissioner under section 469.314, and includes an agricultural processing facility zone and a create automotive recovery zone.

Subd. 7.

Job opportunity building zone percentage or zone percentage.

"Job opportunity building zone percentage" or "zone percentage" means the following fraction reduced to a percentage:

(1) the numerator of the fraction is:

(i) the ratio of the taxpayer's property factor under section 290.191 located in the zone for the taxable year over the property factor numerator determined under section 290.191, plus

(ii) the ratio of the taxpayer's job opportunity building zone payroll factor under subdivision 8 over the payroll factor numerator determined under section 290.191; and

(2) the denominator of the fraction is two.

When calculating the zone percentage for a business that is part of a unitary business as defined under section 290.17, subdivision 4, the denominator of the payroll and property factors is the Minnesota payroll and property of the unitary business as reported on the combined report under section 290.17, subdivision 4, paragraph (h).

Subd. 8.

Job opportunity building zone payroll factor.

"Job opportunity building zone payroll factor" or "job opportunity building zone payroll" is that portion of the payroll factor under section 290.191 that represents:

(1) wages or salaries paid to an individual for services performed in a job opportunity building zone; or

(2) wages or salaries paid to individuals working from offices within a job opportunity building zone if their employment requires them to work outside the zone and the work is incidental to the work performed by the individual within the zone.

Subd. 9.

Local government unit.

"Local government unit" means a statutory or home rule charter city, county, town, the Department of Iron Range Resources and Rehabilitation, regional development commission, or a federally designated economic development district.

Subd. 10.

Person.

"Person" includes an individual, corporation, partnership, limited liability company, association, or any other entity.

Subd. 11.

Qualified business.

(a) A person carrying on a trade or business at a place of business located within a job opportunity building zone is a qualified business for the purposes of sections 469.310 to 469.320 according to the criteria in paragraphs (b) to (f).

(b) A person is a qualified business only on those parcels of land for which the person has entered into a business subsidy agreement, as required under section 469.313, with the appropriate local government unit in which the parcels are located.

(c) Prior to execution of the business subsidy agreement, the local government unit must consider the following factors:

(1) how wages compare to the regional industry average;

(2) the number of jobs that will be provided relative to overall employment in the community;

(3) the economic outlook for the industry the business will engage in;

(4) sales that will be generated from outside the state of Minnesota;

(5) how the business will build on existing regional strengths or diversify the regional economy;

(6) how the business will increase capital investment in the zone; and

(7) any other criteria the commissioner deems necessary.

(d) A person that relocates a trade or business from outside a job opportunity building zone into a zone is not a qualified business unless the business meets all of the requirements of paragraphs (b) and (c) and:

(1) increases full-time employment in the first full year of operation within the job opportunity building zone by a minimum of five jobs or 20 percent, whichever is greater, measured relative to the operations that were relocated and maintains the required level of employment for each year the zone designation applies; and

(2) enters a binding written agreement with the commissioner that:

(i) pledges the business will meet the requirements of clause (1);

(ii) provides for repayment of all tax benefits enumerated under section 469.315 to the business under the procedures in section 469.319, if the requirements of clause (1) are not met for the taxable year or for taxes payable during the year in which the requirements were not met; and

(iii) contains any other terms the commissioner determines appropriate.

(e) The commissioner may waive the requirements under paragraph (d), clause (1), if the commissioner determines that the qualified business will substantially achieve the factors under this subdivision.

(f) A business is not a qualified business if, at its location or locations in the zone, the business is primarily engaged in making retail sales to purchasers who are physically present at the business's zone location.

(g) A qualifying business must pay each employee compensation, including benefits not mandated by law, that on an annualized basis is equal to at least 110 percent of the federal poverty level for a family of four.

(h) A public utility, as defined in section 336B.01, is not a qualified business.

(i) A business operating in a create automotive recovery zone is a qualified business only if it engages in the assembly of motor vehicles at the zone location.

Subd. 12.

Relocates.

(a) "Relocates" means that the trade or business:

(1) ceases one or more operations or functions at another location in Minnesota and begins performing substantially the same operations or functions at a location in a job opportunity building zone; or

(2) reduces employment at another location in Minnesota during a period starting one year before and ending one year after it begins operations in a job opportunity building zone and its employees in the job opportunity building zone are engaged in the same line of business as the employees at the location where it reduced employment.

(b) "Relocate" does not include an expansion by a business that establishes a new facility that does not replace or supplant an existing operation or employment, in whole or in part.

(c) "Trade or business" includes any business entity that is substantially similar in operation or ownership to the business entity seeking to be a qualified business under this section.

Subd. 13.

Relocation payroll percentage.

"Relocation payroll percentage" is a fraction, the numerator of which is the zone payroll of the business for the tax year minus the payroll from the relocated operations in the last full year of operations prior to the relocation, and the denominator of which is the zone payroll of the business for the tax year. The relocation payroll percentage of a business that is not a relocating business is 100 percent.

Subd. 14.

Motor vehicle assembly facility.

"Motor vehicle assembly facility" means a manufacturing facility with at least 500 employees that is used to assemble motor vehicles and is located in a city of the first class.

469.311 DEVELOPMENT PLAN.

(a) An applicant for designation of a job opportunity building zone must adopt a written development plan for the zone before submitting the application to the commissioner.

(b) The development plan must contain, at least, the following:

(1) a map of the proposed zone that indicates the geographic boundaries of the zone, the total area, and present use and conditions generally of the land and structures within those boundaries;

(2) evidence of community support and commitment from local government, local workforce investment boards, school districts, and other education institutions, business groups, and the public;

(3) a description of the methods proposed to increase economic opportunity and expansion, facilitate infrastructure improvement, reduce the local regulatory burden, and identify job-training opportunities;

(4) current social, economic, and demographic characteristics of the proposed zone and anticipated improvements in education, health, human services, and employment if the zone is created;

(5) a description of anticipated activity in the zone and each subzone, including, but not limited to, industrial use, industrial site reuse, commercial or retail use, and residential use; and

(6) any other information required by the commissioner.

469.312 JOB OPPORTUNITY BUILDING ZONES; LIMITATIONS.

Subdivision 1.

Maximum size.

A job opportunity building zone may not exceed 5,000 acres. For a zone designated as an agricultural processing facility zone, the zone also may not exceed the size of a site necessary for the agricultural processing facility, including ancillary operations and space for expansion in the reasonably foreseeable future. For a zone designated as a create automotive recovery zone, the zone also may not exceed the size of the site necessary for the assembly of motor vehicles, including ancillary operations and space for expansion in the reasonably foreseeable future.

Subd. 2.

Subzones.

The area of a job opportunity building zone may consist of one or more noncontiguous areas or subzones.

Subd. 3.

Outside metropolitan area.

Except for a create automotive recovery zone, the area of a job opportunity building zone must be located outside of the metropolitan area, as defined in section 473.121, subdivision 2.

Subd. 4.

Border city development zones.

(a) The area of a job opportunity building zone may not include the area of a border city development zone designated under section 469.1731. The city may remove property from a border city development zone contingent upon the area being designated as a job opportunity building zone. Before removing a parcel of property from a border city development zone, the city must obtain the written consent to the removal from each recipient that is located on the parcel and receives incentives under the border city development zone. Consent of any other property owner or taxpayer in the border city development zone is not required.

(b) A city may not provide tax incentives under section 469.1734 to individuals or businesses for operations or activity in a job opportunity building zone.

Subd. 5.

Duration limit.

(a) The maximum duration of a zone is 12 years. The applicant may request a shorter duration. The commissioner may specify a shorter duration, regardless of the requested duration.

(b) The duration limit under this subdivision and the duration of the zone for purposes of allowance of tax incentives described in section 469.315 is extended by three calendar years for each parcel of property that meets the following requirements:

(1) the qualified business operates an ethanol plant, as defined in section 41A.09, on the site that includes the parcel; and

(2) the business subsidy agreement was executed after April 30, 2006.

(c) The duration limit under this subdivision and the duration of the zone for purposes of allowance of tax incentives described in section 469.315 is extended by five calendar years for each parcel of property that meets the following requirements:

(1) the parcel is located in a county with an unemployment rate that on the date that the business subsidy agreement is executed (i) equals or exceeds ten percent or (ii) is ten percent higher than the statewide average;

(2) the operations of the qualified business on the site include:

(i) its headquarters;

(ii) facilities for research and development; and

(iii) the manufacturing of products, used by the building, transport, consumer products, and industrial products sectors, that reduce the use of or increase the efficiency of the use of energy resources and that are manufactured using innovative and high technology processes; and

(3) the business subsidy agreement is executed after July 1, 2009, and before July 1, 2011.

(d) The duration of a create automotive recovery zone is 12 years from the date of the designation of a zone by the commissioner under section 469.314, subdivision 4, paragraph (g).

(e) The duration limit under this subdivision and the duration of the zone for purposes of allowance of tax incentives described in section 469.315 is extended by five calendar years for each parcel of property that meets the following requirements:

(1) the parcel is located in a county with an unemployment rate for any of the 12 months preceding the date on which the business subsidy agreement is executed that (i) equals or exceeds ten percent or (ii) is ten percent higher than the statewide average;

(2) the qualified business is engaged in the business of manufacturing wind turbines and related products for the generation of energy, and the parcel includes one or more of the following facilities of the qualified business:

(i) the headquarters of the business in this country;

(ii) training facilities; or

(iii) manufacturing facilities; and

(3) the initial business subsidy agreement is executed after July 1, 2010, and before November 1, 2011.

469.313 APPLICATION FOR DESIGNATION.

Subdivision 1.

Who may apply.

One or more local government units, or a joint powers board under section 471.59, acting on behalf of two or more units, may apply for designation of an area as a job opportunity building zone. All or part of the area proposed for designation as a zone must be located within the boundaries of each of the governmental units. A local government unit may not submit or have submitted on its behalf more than one application for designation of a job opportunity building zone.

Subd. 2.

Application content.

The application must include:

(1) a development plan meeting the requirements of section 469.311;

(2) the proposed duration of the zone, not to exceed 12 years;

(3) a resolution or ordinance adopted by each of the cities or towns and the counties in which the zone is located, agreeing to provide all of the local tax exemptions provided under section 469.315;

(4) if the proposed zone includes area in a border city development zone, written consent to removal of the property from the border city development zone to the extent required by section 469.312, subdivision 4;

(5) an agreement by the applicant to treat incentives provided under the zone designation as business subsidies under sections 116J.993 to 116J.995 and to comply with the requirements of that law; and

(6) supporting evidence to allow the commissioner to evaluate the application under the criteria in section 469.314.

469.314 DESIGNATION OF JOB OPPORTUNITY BUILDING ZONES.

Subdivision 1.

Commissioner to designate.

(a) The commissioner, in consultation with the commissioner of revenue, shall designate not more than ten job opportunity building zones and not more than one create automotive recovery zone. In making the designations, the commissioner shall consider need and likelihood of success to yield the most economic development and revitalization of economically distressed rural areas of Minnesota.

(b) In addition to the designations under paragraph (a), the commissioner may, in consultation with the commissioners of agriculture and revenue, designate up to five agricultural processing facility zones.

(c) The commissioner may, upon designation of a zone, modify the development plan, including the boundaries of the zone or subzones, if in the commissioner's opinion a modified plan would better meet the objectives of the job opportunity building zone program. The commissioner shall notify the applicant of the modification and provide a statement of the reasons for the modifications.

Subd. 2.

Need indicators.

(a) In evaluating applications to determine the need for designation of a job opportunity building zone, the commissioner shall consider the following factors as indicators of need:

(1) the percentage of the population that is below 200 percent of the poverty rate, compared with the state as a whole;

(2) the extent to which the area's average weekly wage is significantly lower than the state average weekly wage;

(3) the amount of property in or near the proposed zone that is deteriorated or underutilized;

(4) the extent to which the median sale price of housing units in the area is below the state median;

(5) the extent to which the median household income of the area is lower than the state median household income;

(6) the extent to which the area experienced a population loss during the 20-year period ending the year before the application is made;

(7) the extent to which an area has experienced sudden or severe job loss as a result of closing of businesses or other employers;

(8) the extent to which property in the area would remain underdeveloped or nonperforming due to physical characteristics;

(9) the extent to which the area has substantial real property with adequate infrastructure and energy to support new or expanded development; and

(10) the extent to which the business startup or expansion rates are significantly lower than the respective rate for the state.

(b) In applying the need indicators, the best available data should be used. If reported data are not available for the proposed zone, data for the smallest area that is available and includes the area of the proposed zone may be used. The commissioner may require applicants to provide data to demonstrate how the area meets one or more of the indicators of need.

Subd. 3.

Success indicators.

In determining the likelihood of success of a proposed zone, the commissioner shall consider:

(1) the strength and viability of the proposed development goals, objectives, and strategies in the development plan;

(2) whether the development plan is creative and innovative in comparison to other applications;

(3) local public and private commitment to development of the proposed zone and the potential cooperation of surrounding communities;

(4) existing resources available to the proposed zone;

(5) how the designation of the zone would relate to other economic and community development projects and to regional initiatives or programs;

(6) how the regulatory burden will be eased for businesses operating in the proposed zone;

(7) proposals to establish and link job creation and job training; and

(8) the extent to which the development is directed at encouraging and that designation of the zone is likely to result in the creation of high-paying jobs.

Subd. 4.

Designation schedule.

(a) The schedule in paragraphs (b) to (f) applies to the designation of job opportunity building zones. Paragraph (g) applies to the designation of a create automotive recovery zone.

(b) The commissioner shall publish the form for applications and any procedural, form, or content requirements for applications by no later than August 1, 2003. The commissioner may publish these requirements on the Internet, in the State Register, or by any other means the commissioner determines appropriate to disseminate the information to potential applicants for designation.

(c) Applications must be submitted by October 15, 2003.

(d) The commissioner shall designate the zones by no later than December 31, 2003.

(e) The designation of the zones takes effect January 1, 2004.

(f) The commissioner may reserve one or more of the ten authorized zones for a second round of designations in calendar year 2004. If the commissioner chooses to reserve designations for this purpose, the commissioner shall establish the schedule for the second round of designations, notwithstanding the dates in paragraphs (c), (d), and (e). The commissioner shall allow a period of at least 90 days for submission of applications after notification of the second round. A zone designated in the second round takes effect on January 1, 2005.

(g) The commissioner may accept applications for a create automotive recovery zone at any time before January 1, 2016. The commissioner may designate a create automotive recovery zone at any time after December 31, 2011, and before January 1, 2016, but only if the applicant has entered a written agreement with a qualified business committing to make a capital investment of at least $100,000,000 to improve or retrofit a motor vehicle assembly facility located in the zone.

Subd. 5.

Geographic distribution.

The commissioner shall have as a goal the geographic distribution of zones around the state.

Subd. 6.

Rulemaking exemption.

The commissioner's actions in establishing procedures, requirements, and making determinations to administer sections 469.310 to 469.320 are not a rule for purposes of chapter 14 and are not subject to the Administrative Procedure Act contained in chapter 14 and are not subject to section 14.386.

469.315 TAX INCENTIVES AVAILABLE IN ZONES.

Qualified businesses that operate in a job opportunity building zone, individuals who invest in a qualified business that operates in a job opportunity building zone, and property located in a job opportunity building zone qualify for:

(1) exemption from individual income taxes as provided under section 469.316;

(2) exemption from corporate franchise taxes as provided under section 469.317;

(3) exemption from the state sales and use tax and any local sales and use taxes on qualifying purchases as provided in section 297A.68, subdivision 37;

(4) exemption from the state sales tax on motor vehicles and any local sales tax on motor vehicles as provided under section 297B.03;

(5) exemption from the property tax as provided in section 272.02, subdivision 64;

(6) exemption from the wind energy production tax under section 272.029, subdivision 7; and

(7) the jobs credit allowed under section 469.318, except that a qualified business located in a create automotive recovery zone is not eligible for the credit under section 469.318 but is eligible for the credit under section 469.3181.

469.316 INDIVIDUAL INCOME TAX EXEMPTION.

Subdivision 1.

Application.

An individual, estate, or trust operating a trade or business in a job opportunity building zone, and an individual, estate, or trust making a qualifying investment in a qualified business operating in a job opportunity building zone qualifies for the exemptions from taxes imposed under chapter 290, as provided in this section. The exemptions provided under this section apply only to the extent that the income otherwise would be taxable under chapter 290. Subtractions under this section from federal adjusted gross income, federal taxable income, alternative minimum taxable income, or any other base subject to tax are limited to the amount that otherwise would be included in the tax base absent the exemption under this section. This section applies only to taxable years beginning during the duration of the job opportunity building zone.

Subd. 2.

Rents.

An individual, estate, or trust is exempt from the taxes imposed under chapter 290 on net rents derived from real or tangible personal property used by a qualified business and located in a zone for a taxable year in which the zone was designated a job opportunity building zone. If tangible personal property was used both within and outside of the zone by the qualified business, the exemption amount for the net rental income must be multiplied by a fraction, the numerator of which is the number of days the property was used in the zone and the denominator of which is the total days the property is rented by the qualified business.

Subd. 3.

Business income.

An individual, estate, or trust is exempt from the taxes imposed under chapter 290 on net income from the operation of a qualified business in a job opportunity building zone. If the trade or business is carried on within and without the zone and the individual is not a resident of Minnesota, or the taxpayer is an estate or trust, the exemption must be apportioned based on the zone percentage and the relocation payroll percentage for the taxable year. If the trade or business is carried on within and without the zone and the individual is a resident of Minnesota, the exemption must be apportioned based on the zone percentage and the relocation payroll percentage for the taxable year, except the ratios under section 469.310, subdivision 7, clause (1), items (i) and (ii), must use the denominators of the property and payroll factors determined under section 290.191. No subtraction is allowed under this section in excess of 20 percent of the sum of the job opportunity building zone payroll and the adjusted basis of the property at the time that the property is first used in the job opportunity building zone by the business.

Subd. 4.

Capital gains.

(a) An individual, estate, or trust is exempt from the taxes imposed under chapter 290 on:

(1) net gain derived on a sale or exchange of real property located in the zone and used by a qualified business. If the property was held by the individual, estate, or trust during a period when the zone was not designated, the gain must be prorated based on the percentage of time, measured in calendar days, that the real property was held by the individual, estate, or trust during the period the zone designation was in effect to the total period of time the real property was held by the individual;

(2) net gain derived on a sale or exchange of tangible personal property used by a qualified business in the zone. If the property was held by the individual, estate, or trust during a period when the zone was not designated, the gain must be prorated based on the percentage of time, measured in calendar days, that the property was held by the individual, estate, or trust during the period the zone designation was in effect to the total period of time the property was held by the individual. If the tangible personal property was used outside of the zone during the period of the zone's designation, the exemption must be multiplied by a fraction, the numerator of which is the number of days the property was used in the zone during the time of the designation and the denominator of which is the total days the property was held during the time of the designation; and

(3) net gain derived on a sale of an ownership interest in a qualified business operating in the job opportunity building zone, meeting the requirements of paragraph (b). The exemption on the gain must be multiplied by the zone percentage of the business for the taxable year prior to the sale.

(b) A qualified business meets the requirements of paragraph (a), clause (3), if it is a corporation, an S corporation, or a partnership, and for the taxable year its job opportunity building zone percentage exceeds 25 percent. For purposes of paragraph (a), clause (3), the zone percentage must be calculated by modifying the ratios under section 469.310, subdivision 7, clause (1), items (i) and (ii), to use the denominators of the property and payroll factors determined under section 290.191. Upon the request of an individual, estate, or trust holding an ownership interest in the entity, the entity must certify to the owner, in writing, the job opportunity building zone percentage needed to determine the exemption.

469.317 CORPORATE FRANCHISE TAX EXEMPTION.

(a) A qualified business is exempt from taxation under section 290.02, the alternative minimum tax under section 290.0921, and the minimum fee under section 290.0922, on the portion of its income attributable to operations within the zone. This exemption is determined as follows:

(1) for purposes of the tax imposed under section 290.02, by multiplying its taxable net income by its zone percentage and by its relocation payroll percentage and subtracting the result in determining taxable income;

(2) for purposes of the alternative minimum tax under section 290.0921, by multiplying its alternative minimum taxable income by its zone percentage and by its relocation payroll percentage and reducing alternative minimum taxable income by this amount; and

(3) for purposes of the minimum fee under section 290.0922, by excluding property and payroll in the zone from the computations of the fee or by exempting the entity under section 290.0922, subdivision 2, clause (7).

(b) No subtraction is allowed under this section in excess of 20 percent of the sum of the corporation's job opportunity building zone payroll and the adjusted basis of the property at the time that the property is first used in the job opportunity building zone by the corporation.

(c) This section applies only to taxable years beginning during the duration of the job opportunity building zone.

469.318 JOBS CREDIT.

Subdivision 1.

Credit allowed.

A qualified business is allowed a credit against the taxes imposed under chapter 290. The credit equals seven percent of the:

(1) lesser of:

(i) zone payroll for the taxable year, less the zone payroll for the base year; or

(ii) total Minnesota payroll for the taxable year, less total Minnesota payroll for the base year; minus

(2) $30,000 multiplied by (the number of full-time equivalent employees that the qualified business employs in the job opportunity building zone for the taxable year, minus the number of full-time equivalent employees the business employed in the zone in the base year, but not less than zero).

Subd. 2.

Definitions.

(a) For purposes of this section, the following terms have the meanings given.

(b) "Base year" means the taxable year beginning during the calendar year prior to the calendar year in which the zone designation took effect.

(c) "Full-time equivalent employees" means the equivalent of annualized expected hours of work equal to 2,080 hours.

(d) "Minnesota payroll" means the wages or salaries attributed to Minnesota under section 290.191, subdivision 12, for the qualified business or the unitary business of which the qualified business is a part, whichever is greater.

(e) "Zone payroll" means wages or salaries used to determine the zone payroll factor for the qualified business, less the amount of compensation attributable to any employee that exceeds $100,000.

Subd. 3.

Inflation adjustment.

For taxable years beginning after December 31, 2004, the dollar amounts in subdivision 1, clause (2), and subdivision 2, paragraph (e), are annually adjusted for inflation. The commissioner of revenue shall adjust the amounts by the percentage determined under section 290.06, subdivision 2d, for the taxable year.

Subd. 4.

Refundable.

If the amount of the credit exceeds the liability for tax under chapter 290, the commissioner of revenue shall refund the excess to the qualified business.

Subd. 5.

Appropriation.

An amount sufficient to pay the refunds authorized by this section is appropriated to the commissioner of revenue from the general fund.

469.3181 CREATE AUTOMOTIVE RECOVERY JOBS CREDIT.

Subdivision 1.

Credit allowed.

(a) A qualified business located in a create automotive recovery zone is allowed a credit against the tax imposed under chapter 290 equal to $2,500 times the number of full-time equivalent employees receiving wages from the qualified business for working at the facility during the taxable year. The qualified business is allowed an additional credit equal to $1,000 times the number of full-time equivalent employees receiving wages from the qualified business for working at the facility during the taxable year in excess of 750 employees.

(b) For purposes of this section, "employee" and "wages" have the meanings given them in section 290.92, subdivisions 1 and 3.

(c) For purposes of this section, "full-time equivalent employees" means the equivalent of annualized expected hours of work equal to 2,080 hours.

Subd. 2.

Refundable.

If the amount of the credit exceeds the liability for tax under chapter 290, the commissioner of revenue shall refund the excess to the qualified business.

Subd. 3.

Appropriation.

An amount sufficient to pay the refunds authorized by this section is appropriated to the commissioner of revenue from the general fund.

Subd. 4.

Manner of claiming credit.

The commissioner shall prescribe the manner in which the credit may be issued or claimed. This may include allowing the credit only as a separately processed claim for refund.

469.319 REPAYMENT OF TAX BENEFITS BY BUSINESSES THAT NO LONGER OPERATE IN A ZONE.

Subdivision 1.

Repayment obligation.

A business must repay the total tax benefits listed in section 469.315 received during the two years immediately before it (1) ceased to perform a substantial level of activities described in the business subsidy agreement, or (2) otherwise ceased to be a qualified business, other than those subject to the provisions of section 469.3191.

Subd. 1a.

Repayment obligation of businesses not operating in zone.

Persons that receive benefits without operating a business in a zone are subject to repayment under this section if the business for which those benefits relate is subject to repayment under this section. Such persons are deemed to have ceased performing in the zone on the same day that the qualified business for which the benefits relate becomes subject to repayment under subdivision 1.

Subd. 2.

Definitions.

(a) For purposes of this section, the following terms have the meanings given.

(b) "Business" means any person that received tax benefits enumerated in section 469.315.

(c) "Commissioner" means the commissioner of revenue.

(d) "Persons that receive benefits without operating a business in a zone" means persons that claim benefits under section 469.316, subdivision 2 or 4, as well as persons that own property leased by a qualified business and are eligible for benefits under section 272.02, subdivision 64, or 297A.68, subdivision 37, paragraph (b).

Subd. 3.

Disposition of repayment.

The repayment must be paid to the state to the extent it represents a state tax reduction and to the county to the extent it represents a property tax reduction. Any amount repaid to the state must be deposited in the general fund. Any amount repaid to the county for the property tax exemption must be distributed to the taxing authorities with authority to levy taxes in the zone in the same manner provided for distribution of payment of delinquent property taxes. Any repayment of local sales taxes must be repaid to the commissioner for distribution to the city or county imposing the local sales tax.

Subd. 4.

Repayment procedures.

(a) For the repayment of taxes imposed under chapter 290 or 297A or local taxes collected pursuant to section 297A.99, a business must file an amended return with the commissioner of revenue and pay any taxes required to be repaid within 30 days after becoming subject to repayment under this section. The amount required to be repaid is determined by calculating the tax for the period or periods for which repayment is required without regard to the exemptions and credits allowed under section 469.315.

(b) For the repayment of taxes imposed under chapter 297B, a business must pay any taxes required to be repaid to the motor vehicle registrar, as agent for the commissioner of revenue, within 30 days after becoming subject to repayment under this section.

(c) For the repayment of property taxes, the county auditor shall prepare a tax statement for the business, applying the applicable tax extension rates for each payable year and provide a copy to the business and to the taxpayer of record. The business must pay the taxes to the county treasurer within 30 days after receipt of the tax statement. The business or the taxpayer of record may appeal the valuation and determination of the property tax to the Tax Court within 30 days after receipt of the tax statement.

(d) The provisions of chapters 270C and 289A relating to the commissioner's authority to audit, assess, and collect the tax and to hear appeals are applicable to the repayment required under paragraphs (a) and (b). The commissioner may impose civil penalties as provided in chapter 289A, and the additional tax and penalties are subject to interest at the rate provided in section 270C.40. The additional tax shall bear interest from 30 days after becoming subject to repayment under this section until the date the tax is paid. Any penalty imposed pursuant to this section shall bear interest from the date provided in section 270C.40, subdivision 3, to the date of payment of the penalty.

(e) If a property tax is not repaid under paragraph (c), the county treasurer shall add the amount required to be repaid to the property taxes assessed against the property for payment in the year following the year in which the auditor provided the statement under paragraph (c).

(f) For determining the tax required to be repaid, a reduction of a state or local sales or use tax is deemed to have been received on the date that the good or service was purchased or first put to a taxable use. In the case of an income tax or franchise tax, including the credit payable under section 469.318, a reduction of tax is deemed to have been received for the two most recent tax years that have ended prior to the date that the business became subject to repayment under this section. In the case of a property tax, a reduction of tax is deemed to have been received for the taxes payable in the year that the business became subject to repayment under this section and for the taxes payable in the prior year.

(g) The commissioner may assess the repayment of taxes under paragraph (d) any time within two years after the business becomes subject to repayment under subdivision 1, or within any period of limitations for the assessment of tax under sections 289A.38 to 289A.382, whichever period is later. The county auditor may send the statement under paragraph (c) any time within three years after the business becomes subject to repayment under subdivision 1.

(h) A business is not entitled to any income tax or franchise tax benefits, including refundable credits, for any part of the year in which the business becomes subject to repayment under this section nor for any year thereafter. Property is not exempt from tax under section 272.02, subdivision 64, for any taxes payable in the year following the year in which the property became subject to repayment under this section nor for any year thereafter. A business is not eligible for any sales tax benefits beginning with goods or services purchased or first put to a taxable use on the day that the business becomes subject to repayment under this section.

Subd. 5.

Waiver authority.

(a) The commissioner may waive all or part of a repayment required under subdivision 1, if the commissioner, in consultation with the commissioner of employment and economic development and appropriate officials from the local government units in which the qualified business is located, determines that requiring repayment of the tax is not in the best interest of the state or the local government units and the business ceased operating as a result of circumstances beyond its control including, but not limited to:

(1) a natural disaster;

(2) unforeseen industry trends; or

(3) loss of a major supplier or customer.

(b)(1) The commissioner shall waive repayment required under subdivision 1a if the commissioner has waived repayment by the operating business under subdivision 1, unless the person that received benefits without having to operate a business in the zone was a contributing factor in the qualified business becoming subject to repayment under subdivision 1;

(2) the commissioner shall waive the repayment required under subdivision 1a, even if the repayment has not been waived for the operating business if:

(i) the person that received benefits without having to operate a business in the zone and the business that operated in the zone are not related parties as defined in section 267(b) of the Internal Revenue Code of 1986, as amended through December 31, 2007; and

(ii) actions of the person were not a contributing factor in the qualified business becoming subject to repayment under subdivision 1.

(c) Requests for waiver must be made no later than 60 days after the earlier of the notice date of an order issued under subdivision 4, paragraph (d), or the date of a tax statement issued under subdivision 4, paragraph (c). For purposes of this section, "notice date" means the notice date designated by the commissioner on the order.

Subd. 6.

Reconciliation.

Where this section is inconsistent with section 116J.994, subdivision 3, paragraph (e), or 6, or any other provisions of sections 116J.993 to 116J.995, this section prevails.

469.3191 BREACH OF AGREEMENTS BY BUSINESSES THAT CONTINUE TO OPERATE IN ZONE.

(a) A "business in violation of its business subsidy agreement but not subject to section 469.319" means a business that is operating in violation of the business subsidy agreement but maintains a level of operations in the zone that does not subject it to the repayment provisions of section 469.319, subdivision 1, clause (1).

(b) A business described in paragraph (a) that does not sign a new or amended business subsidy agreement, as authorized under paragraph (h), is subject to repayment of benefits under section 469.319 from the day that it ceases to perform in the zone a substantial level of activities described in the business subsidy agreement.

(c) A business described in paragraph (a) ceases being a qualified business after the last day that it has to meet the goals stated in the agreement.

(d) A business is not entitled to any income tax or franchise tax benefits, including refundable credits, for any part of the year in which the business is no longer a qualified business under paragraph (c), and thereafter. A business is not eligible for sales tax benefits beginning with goods or services purchased or put to a taxable use on the day that it is no longer a qualified business under paragraph (c). Property is not exempt from tax under section 272.02, subdivision 64, for any taxes payable in the year following the year in which the business is no longer a qualified business under paragraph (c), and thereafter.

(e) A business described in paragraph (a) that wants to resume eligibility for benefits under section 469.315 must request that the commissioner of employment and economic development determine the length of time that the business is ineligible for benefits. The commissioner shall determine the length of ineligibility by applying the proportionate level of performance under the agreement to the total duration of the zone as measured from the date that the business subsidy agreement was executed. The length of time must not be less than one full year for each tax benefit listed in section 469.315. The commissioner of employment and economic development and the appropriate local government officials shall consult with the commissioner of revenue to ensure that the period of ineligibility includes at least one full year of benefits for each tax.

(f) The length of ineligibility determined under paragraph (e) must be applied by reducing the zone duration for the property by the duration of the ineligibility.

(g) The zone duration of property that has been adjusted under paragraph (f) must not be altered again to permit the business additional benefits under section 469.315.

(h) A business described in paragraph (a) becomes eligible for benefits available under section 469.315 by entering into a new or amended business subsidy agreement with the appropriate local government unit. The new or amended agreement must cover a period beginning from the date of ineligibility under the original business subsidy agreement, through the zone duration determined by the commissioner under paragraph (f). No exemption of property taxes under section 272.02, subdivision 64, is available under the new or amended agreement for property taxes due or paid before the date of the final execution of the new or amended agreement, but unpaid taxes due after that date need not be paid.

(i) A business that violates the terms of an agreement authorized under paragraph (h) is permanently barred from seeking benefits under section 469.315 and is subject to the repayment provisions under section 469.319 effective from the day that the business ceases to operate as a qualified business in the zone under the second agreement.

469.3192 PROHIBITION AGAINST AMENDMENTS TO BUSINESS SUBSIDY AGREEMENT.

Except as authorized under section 469.3191, under no circumstance shall terms of any agreement required as a condition for eligibility for benefits listed under section 469.315 be amended to change job creation, job retention, or wage goals included in the agreement.

469.3193 CERTIFICATION OF CONTINUING ELIGIBILITY FOR JOBZ BENEFITS.

(a) By October 15 of each year, every qualified business must certify to the commissioner of revenue, on a form prescribed by the commissioner of revenue, whether it is in compliance with any agreement required as a condition for eligibility for benefits listed under section 469.315. A business that fails to submit the certification, or any business, including those still operating in the zone, that submits a certification that the commissioner of revenue later determines materially misrepresents the business's compliance with the agreement, is subject to the repayment provisions under section 469.319 from January 1 of the year in which the report is due or the date that the business became subject to section 469.319, whichever is earlier. Any such business is permanently barred from obtaining benefits under section 469.315. For purposes of this section, the bar applies to an entity and also applies to any individuals or entities that have an ownership interest of at least 20 percent of the entity.

(b) Before the sanctions under paragraph (a) apply to a business that fails to submit the certification, the commissioner of revenue shall send notice to the business, demanding that the certification be submitted within 30 days and advising the business of the consequences for failing to do so. The commissioner of revenue shall notify the commissioner of employment and economic development and the appropriate job opportunity subzone administrator whenever notice is sent to a business under this paragraph.

(c) The certification required under this section is public.

(d) The commissioner of revenue shall promptly notify the commissioner of employment and economic development of all businesses that certify that they are not in compliance with the terms of their business subsidy agreement and all businesses that fail to file the certification.

469.320 ZONE PERFORMANCE; REMEDIES.

Subdivision 1.

Reporting requirement.

An applicant receiving designation of a job opportunity building zone under section 469.314 must annually report to the commissioner on its progress in meeting the zone performance goals under the development plan for the zone and the applicant's compliance with the business subsidy law under sections 116J.993 to 116J.995.

Subd. 2.

Procedures.

For reports required by subdivision 1, the commissioner may prescribe:

(1) the required time or times by which the reports must be filed;

(2) the form of the report; and

(3) the information required to be included in the report.

Subd. 3.

Remedies.

If the commissioner determines, based on a report filed under subdivision 1 or other available information, that a zone or subzone is failing to meet its performance goals, the commissioner may take any actions the commissioner determines appropriate, including modification of the boundaries of the zone or a subzone or termination of the zone or a subzone. Before taking any action, the commissioner shall consult with the applicant and the affected local government units, including notifying them of the proposed actions to be taken. The applicant may appeal the commissioner's order under the contested case procedures of chapter 14.

Subd. 4.

Existing businesses.

(a) An action to remove area from a zone or to terminate a zone under this section does not apply to:

(1) the property tax on improvements constructed before the first January 2 following publication of the commissioner's order;

(2) sales tax on purchases made before the first day of the next calendar month beginning at least 30 days after publication of the commissioner's order; and

(3) individual income tax or corporate franchise tax attributable to a facility that was in operation before the publication of the commissioner's order.

(b) The tax exemptions specified in paragraph (a) terminate on the date on which the zone expires under the original designation.

469.3201 LEGISLATIVE AUDITOR; AUDITS OF JOB OPPORTUNITY BUILDING ZONES AND BUSINESS SUBSIDY AGREEMENTS.

As resources allow, the legislative auditor must audit the creation and operation of all job opportunity building zones and business subsidy agreements entered into under sections 469.310 to 469.320. All public officials and parties to the agreements shall provide the legislative auditor with all documents and data the legislative auditor deems necessary and in all other respects comply with the requirements of section 3.978, subdivision 2.

477A.085 DEBT SERVICE AID; CITY OF MINNEAPOLIS.

On or before November 1, 2016, and the first day of each November thereafter, the commissioner shall pay to the city of Minneapolis an amount equal to 40 percent of the city's otherwise required levy to pay its general obligation library referendum bonds for the following calendar year. The levy excludes any amount to pay bonds, other than refunding bonds, issued after May 1, 2013. An amount sufficient to pay the aid under this section is appropriated from the general fund to the commissioner of revenue.

477A.18 PRODUCTION PROPERTY TRANSITION AID.

Subdivision 1.

Definitions.

(a) When used in this section, the following terms have the meanings indicated in this subdivision.

(b) "Local unit" means a home rule charter or statutory city, or a town.

(c) "Net tax capacity differential" means the positive difference, if any, by which the local unit's net tax capacity was reduced from assessment year 2014 to assessment year 2015 due to the change in the definition of real property in section 272.03, subdivision 1, enacted by Laws 2014, chapter 308, article 2, section 9. For purposes of determining the net tax capacity differential, any property in a job opportunity building zone under section 469.314 may not be included when calculating a local unit's net tax capacity.

Subd. 2.

Aid eligibility; payment.

(a) If the net tax capacity differential of the local unit exceeds five percent of its 2015 net tax capacity, the local unit is eligible for transition aid computed under paragraphs (b) to (f).

(b) For aids payable in 2016, transition aid under this section for an eligible local unit equals (1) the net tax capacity differential, times (2) the jurisdiction's tax rate for taxes payable in 2015.

(c) For aids payable in 2017, transition aid under this section for an eligible local unit equals 80 percent of (1) the net tax capacity differential, times (2) the jurisdiction's tax rate for taxes payable in 2016.

(d) For aids payable in 2018, transition aid under this section for an eligible local unit equals 60 percent of (1) the net tax capacity differential, times (2) the jurisdiction's tax rate for taxes payable in 2017.

(e) For aids payable in 2019, transition aid under this section for an eligible local unit equals 40 percent of (1) the net tax capacity differential, times (2) the jurisdiction's tax rate for taxes payable in 2018.

(f) For aids payable in 2020, transition aid under this section for an eligible local unit equals 20 percent of (1) the net tax capacity differential, times (2) the jurisdiction's tax rate for taxes payable in 2019.

(g) No aids shall be payable under this section in 2021 and thereafter.

(h) The commissioner of revenue shall compute the amount of transition aid payable to each local unit under this section. On or before August 1 of each year, the commissioner shall certify the amount of transition aid computed for aids payable in the following year for each recipient local unit. The commissioner shall pay transition aid to local units annually at the times provided in section 477A.015.

(i) The commissioner of revenue may require counties to provide any data that the commissioner deems necessary to administer this section.

Subd. 3.

Appropriation.

An amount sufficient to pay transition aid under this section is annually appropriated to the commissioner of revenue from the general fund.

477A.30 LOCAL HOMELESS PREVENTION AID.

Subd. 8.

Expiration.

Distributions under this section expire after aids payable in 2028 have been distributed.