Session Year 2005, Special Session 1

Bill Name: HF0138

HF 138

SPECIAL SESSION CHAPTER 3
EFFECTIVE DATE: Various

ARTICLE 1--PROPERTY
TAXES

Section 1: Manufactured home delinquent taxes modified.
Sec. 2:
Commissioner notification of county auditor required.
Sec. 3: Rental housing
property qualifications determined.
Sec. 4: Wind energy conversation systems
exempted.
Sec. 5: Property subject to taconite production tax modified.
Sec. 6:
Biomass Electric Generation Facility Personal Property exemption provided.
Sec.
7: Training and education of property tax personnel. regulations modified.
Sec.
8: Limited market value extended.
Sec. 9: Valuation reduction for homesteads
damaged by mold provided.
Sec. 10: Lead hazard market value reduction
provided.
Sec. 11: Open space valuation for land used for polo provided.
Sec.
12: Homestead used for licensed child care property tax classification
regulated.
Sec. 13: Manufactured homes designation as personal property
regulated.
Sec. 14: Certification of low-income rental property modified.
Sec.
15: Class 1c homestead resorts classification restructured.
Sec. 16: Class 4d
low-income housing reinstituted for qualifying low-income rental housing.
Sec.
17: Vacant commercial-industrial properties disparity reduction credit
authorized.
Sec. 18: Local board of review adjustment provision clarified.

Sec. 19: Seasonal recreational tax capacity provided.
Sec. 20: Apportionment
and levy of the state general tax modified.
Sec. 21: Date to certify levies
and tax rates modified.
Sec. 22: Proposed property taxes supplemental
information specified relating to Ramsey County library.
Sec. 23:
Truth-in-taxation joint hearings authorized for Aitkin County.
Sec. 24:
Truth-in-taxation joint hearings authorized for Nobles County.
Sec. 25: Cruelty
to animals special levy provided.
Sec. 26: Ramsey County library levy and
regional rail authorities property tax statement provided.
Sec. 27: Taconite
tax rate one year freeze provided.
Sec. 28: HRA levy limit provided.
Sec. 29:
St. Paul airport fiscal disparities exclusion clarified.
Sec. 30: Bloomington
supplemental fiscal disparities contribution delayed.
Sec. 31: Land utilization
project land recategorized.
Sec. 32: "Land utilization project land"
established as a separate category.
Sec. 33: LUP land payment in-lieu of tax
(PILT) payments increased for LUP lands.
Sec. 34: LUP land certification
required.
Sec. 35: LUP land general distribution modified.
Sec. 36: Lakeview
cemetery levy increased.
Sec. 37: Standardized assessment and classification
standards report required.
Sec. 38: Code of conduct and ethics development
for assessors required.
Sec. 39: Dakota County regional railroad authorization
authorized.
Sec. 40: Assessment of assisted living facilities required.


ARTICLE 2: PROPERTY TAX AIDS AND CREDITS

Section 1: City aid base increase
provided.
Sec. 2: City formula aid modified.
Sec. 3: LGA appropriation
increased.
Sec. 4: County technical correction provided.
Sec. 5: Market
value credit reimbursement reductions extended.

ARTICLE 3: INCOME AND
FRANCHISE TAXES

Section 1: Filing requirements for military personnel
modified.
Sec. 2: Bonus depreciation on composite partnerships included.
Sec.
3: Local use tax provisions modified.
Sec. 4: Nonresident income withholding
payment regulations modified.
Sec. 5: Foreign operating corporation definition
modified.
Sec. 6: Nonresident definition modified.
Sec. 7: Subtractions from
individuals' taxable income authorized relating to national guard and military
service.
Sec. 8: Dependent care credit subtractions included in
apportionment.
Sec. 9: Working family credit subtractions for military pay
included in apportionment.
Sec. 10: K-12 education credit limit removed.
Sec.
11: Alternative minimum tax subtraction adjusted gross income threshold removed
for certain circumstances.
Sec. 12: Cooperatives organized.
Sec. 13: Single
factor sales apportionment provided for regular corporations.
Sec. 14: Single
factor sales apportionment provided for financial institutions.
Sec. 15:
Withholding by contractors required.
Sec. 16: Apportionment of occupation tax
on nonferrous metals modified.
Sec. 17: Apportionment of occupation tax on
taconite and iron ore modified.

ARTICLE 4¿FEDERAL UPDATE

Section 1: Internal
revenue code date modified.
Sec. 2: Net income definition modified.
Sec. 3:
Federal Taxable Income definition modified.
Sec. 4: Federal Taxable Income
subtractions
Sec. 5: Corporate additions to federal taxable income
modified.
Sec. 6: Corporate modifications decreasing federal taxable income
modified.
Sec. 7: Internal Revenue Code date modified / conform with section
1.
Sec. 8: Technical federal Act language references inserted.
Sec. 9:
Computation procedure modified.
Sec. 10: Technical references added.
Sec. 11:
Combat pay exclusion not considered ¿earned income.¿
Sec. 12: Income
definition modified.
Sec. 13: Conforming change.
Sec. 14: ¿Earned income of
lesser earning spouse¿ definition modified.
Sec. 15: Technical references
added.
Sec. 16: Conforming changes with section 12.
Sec. 17: ¿Internal
Revenue Code¿ definition modified.

ARTICLE 5 ¿ SALES AND USE TAXES

Section
1: Contracts with foreign vendors regulated.
Sec. 2: Tax return requirement
relating to trade or business regulations modified.
Sec. 3: ¿Sale¿ and
¿purchase¿ definitions modified.
Sec. 4: ¿Retail sale¿ definition
modified.
Sec. 5: Tax exempt meals regulations clarified.
Sec. 6: Solar energy
products exemption provided.
Sec. 7: Taxed cigarettes exemption provided.
Sec.
8: Industrial production materials exemption modified.
Sec. 9: Capital
equipment exemption modified.
Sec. 10: Telecommunications equipment exemption
modified.
Sec. 11: Land clearing contract defined.
Sec. 12: Regionwide public
safety radio communication system exemption clarified.
Sec. 13: Nonprofit
admissions ticket exemptions clarified.
Sec. 14: Hydroelectric generating
facility construction materials exemption provided.
Sec. 15: Waste recovery
facility materials exemption provided.
Sec. 16: Municipal utility exemption
provided.
Sec. 17: Chatfield wastewater treatment facility exemption
provided.
Sec. 18: Tax collection exemption provided for municipal electric
facilities.
Sec. 19: Eligible persons refund regulations modified.
Sec. 20:
Technical.
Sec. 21: Motor vehicle lease price payment taxation regulations
established.
Sec. 22: Political subdivision legal debt to state regulations
clarified.
Sec. 23: Use tax notification procedures relating to political
subdivisions established.
Sec. 24: Use limitations specified for city
revenues.
Sec. 25: Taxing authority expenditure date modified.
Sec. 26:
Calendar year bond issuance regulated.
Sec. 27: Conforming changes relating to
bond issuance.
Sec. 28: Revenue usage for transportation infrastructure and
other city utilities modified.
Sec. 29: Bonding authority election requirements
provided.
Sec. 30: Tax termination provided.
Sec. 31: Effective dates
modified.
Sec. 32: Effective date modified.
Sec. 33: Repealer modified.
Sec.
34: Technical.
Sec. 35: Waite Park voter approval requirements modified.
Sec.
36: City tax imposition and termination regulations modified.
Sec. 37: St.
Cloud sales and use tax authorized.
Sec. 38: Albert Lea sales and use tax
authorized.
Sec. 39: Bemidji sales and use tax authorized.
Sec. 40: Hubbard
county authority lodging tax authorized.
Sec. 41: Proctor lodging tax
authorized.
Sec. 42: Willmar sales and use tax authorized.
Sec. 43: Winona
sales and use tax authorized.
Sec. 44: Worthington sales and use and excise
taxes authorized and bonding authority provided.

ARTICLE 6¿SPECIAL
TAXES

Section 1: ¿Consideration¿ definition modified.
Sec. 2: ¿Designated
transfer¿ defined.
Sec. 3: ¿Reorganization¿ defined.
Sec. 4: Tax
determination on real property procedures modified.
Sec. 5: ¿Blood
components¿ defined.
Sec. 6: ¿Gross revenues¿ definition modified.
Sec. 7:
Prescription drugs use tax imposed.
Sec. 8: Exemption provided for blood
components.
Sec. 9: Liquor gross receipts tax imposed.
Sec. 10: Exemptions
clarified.
Sec. 11: ¿Out-of-state retailer¿ defined.
Sec. 12: Registration
requirement relating to tobacco products provided.
Sec. 13: Reporting
requirements modified.
Sec. 14: Tax and use tax on cigarettes modified.
Sec.
15: Cigarette sales tax imposed.
Sec. 16: ¿Direct business¿ defined.
Sec.
17: ¿Reinsurance¿ definition modified.
Sec. 18: Mutual property and casualty
companies tax imposition modified.
Sec. 19: Life insurance tax imposed.
Sec.
20: Tobacco product delivery sales requirements specified.
Sec. 21: Floor
stocks tax imposed.

ARTICLE 7¿ECONOMIC DEVELOPMENT

Section 1: ¿Residence¿
defined.
Sec. 2: Wage and job goals modified.
Sec. 3: Public notice and
hearing regulations modified.
Sec. 4: Compilation and summary report
requirements clarified.
Sec. 5: Enforcement provision established relating to
taxable property.
Sec. 6: Job opportunity building zone property tax
regulations modified.
Sec. 7: Biotechnology and health sciences industry zone
refunds interest computation procedures specified.
Sec. 8: Job opportunity
building zones exemptions modified.
Sec. 9: Biotechnology and health sciences
industry zone conforming changes provided.
Sec. 10: Nine-member boards
authorized for county economic development authorities.
Sec. 11: Border city
allocations provided.
Sec. 12: Public utility specified as not being a
qualified business.
Sec. 13: ¿Relocation payroll percentage¿ defined.
Sec.
14: Individual income tax exemption clarified relating to estates and
trusts.
Sec. 15: Corporate franchise tax exemption clarified.
Sec. 16:
Corporate franchise tax exemption clarified.
Sec. 17: Ramsey housing tax
increment district creation authorized.
Sec. 18: Rural finance authority
appropriation provided.
Sec. 19: JOBZ expenditure limitations and determination
procedures established.
Sec. 20: Repealer.

ARTICLE 8¿TAX SHELTERS

Section 1:
Equitable actionws authorized.
Sec. 2: Tax shelter special rules
established.
Sec. 3: Reportable transactions detailed.
Sec. 4: Substantial
understatement of liability penalty imposition regulations modified.
Sec. 5:
Abusive tax shelter promotion penalty clarified.
Sec. 6: Aiding and abetting
understating of tax liability regulations established.
Sec. 7: Tax shelter
registration and listing penalties established.
Sec. 8: Reportable transaction
understatement tax addition established.
Sec. 9: Voluntary compliance
initiative established and detailed.

ARTICLE 9¿DEPARTMENT OF REVENUE
ELECTRONIC PAYMENTS

Section 1: Electronic payment regulation limits
modified.
Sec. 2: Sales and use tax regulation limits modified.
Sec. 3:
Electronic payment limits modified.
Sec. 4: Conforming change.
Sec. 5:
Effective date.

ARTICLE 10¿INTERNATIONAL ECONOMIC DEVELOPMENT ZONE

Section 1:
International economic development zone property improvements exemption
provided.
Sec. 2: Federal taxable income subtractions authorization
modified.
Sec. 3: ¿Taxable income¿ definition modified.
Sec. 4: Rate
schedules for individuals, estates, and trusts modified.
Sec. 5: International
economic development zone job credit authorized.
Sec. 6: Credit amount
modified.
Sec. 7: Credit authorization modified.
Sec. 8: Definitions
modified.
Sec. 9: Alternative minimum taxable income definition modified.
Sec.
10: IEDZ entity exemptions clarified.
Sec. 11: ¿Minnesota property¿ and
¿Minnesota payrolls¿ definitions modified.
Sec. 12: International economic
development zone purchases modified.
Sec. 13: Related term definitions
provided.
Sec. 14: Designation application regulations established.
Sec. 15:
International economic development zone designations provided.
Sec. 16: Foreign
trade zone authority powers regulated and regional distribution center
development authorized.
Sec. 17: International Economic Development Zone tax
incentive availability detailed.
Sec. 18: Individual income tax exemption
application procedure provided.
Sec. 19: Corporate franchise tax exemption
provided.
Sec. 20: Jobs credit authorized.
Sec. 21: Tax benefit repayment
detailed.
Sec. 22: Reporting requirements established.
Sec. 23: Business
grants provided.

ARTICLE 11¿MISCELLANEOUS

Section 1: Staff appointment
authority modified.
Sec. 2: Technical reference modified.
Sec. 3: Statement to
accompany distribution clarified.
Sec. 4: Nongame wildlife checkoff
notification by paid tax preparer required.
Sec. 5: Failure to file penalty
established.
Sec. 6: Public health care program tax regulations clarified.
Sec.
7: Fee studies required.
Sec. 8: Transfer from tax relief account to general
fund provided.
Sec. 9: Taxpayer assistance services funded and money
appropriated.
Sec. 10: Veterans services money appropriated.
Sec. 11: Otter
tail county disaster relief money appropriated.
Sec. 12: Department of revenue
money appropriated.
Sec. 13: Revisor instruction.
Sec. 14: Effective
date.

AME