Legislative Session number- 84

Bill Name: HF0785

HF 785

CHAPTER 259
FOURTH ENGROSSMENT

Omnibus tax bill modifying corporate,
income, and other tax provisions; and appropriating money.

ARTICLE 1: INCOME
AND FRANCHISE TAXES

Section 1: Bovine testing credit provided.
Sec. 2:
Military service credit allowed.
Sec. 3: Exemption amount modified.
Sec. 4:
Application rule scope modified.

ARTICLE 2: FEDERAL UPDATE

Section 1:
Internal revenue code definition modified.
Sec. 2: Net income definition
modified.
Sec. 3: Federal taxable income additions modified.
Sec. 4: Technical
reference provided.
Sec. 5: Internal revenue code definition provided.
Sec. 6:
Earned income of lesser earning spouse definition modified.
Sec. 7: Internal
revenue code definition modified.
Sec. 8: Scope modified.

ARTICLE 3: SALES
AND USE TAX

Section 1: Language clarificaton.
Sec. 2: Hydroelectric
generation facility exemption provided.
Sec. 3: Construction sales tax
disposition modified.
Sec. 4: Termination modified.
Sec. 5: Date
extended.
Sec. 6-7: Revenue usage modified.
Sec. 8: Election date for
Worthington clarified.
Sec. 9: Austin sales and use taxes authorized.
Sec. 10:
Baxter sales and use taxes authorized.
Sec. 11: Brainerd sales and use taxes
authorized.
Sec. 12: Owatonna sales and use taxes authorized.

ARTICLE 4:
PROPERTY TAXES

Section 1: Business subsidy definition modified.
Sec. 2:
Referendum revenue authorization modified.
Sec. 3: Ad valorem tax levy increase
maximum modified.
Sec. 4: Mandate modified.
Sec. 5-8: Construction dates
extended for generation facilities receiving tax exemptions.
Sec. 9: Electric
generation facility tax exemption provided.
Sec. 10: Wind energy conversion
system definition modified.
Sec. 11: First tier valuation limit for
agricultural homestead property provided.
Sec. 12: Armed services and peace
corps member homestead tax provision modified.
Sec. 13: Class 2a property
provision clarified.
Sec. 14: Authority modified.
Sec. 15: Duration limit
modified.
Sec. 16: Extended duration limit modified.
Sec. 17: Abatement
limitation clarified.
Sec. 18: Property owner consent requirement
modified.
Sec. 19: Utility property applicability specified.
Sec. 20: Dates
extended.
Sec. 21: Property tax refund collection action prohibition
specified.
Sec. 22: Buffalo ¿ Red River watershed district levy authority
specified.
Sec. 23: Cook-Orr hospital district territory addition
proivded.
Sec. 24: Rochester school district property tax certification
provided.
Sec. 25: Lease levy for Rocori and Faribault provided.

ARTICLE 5:
DEPARTMENT OF REVENUE PROPERTY TAXES AND AIDS

Section 1: Class 1 property
provision clarified.
Sec. 2: Class 4 property provision modified.
Sec. 3:
Residential homestead market value credit modified.
Sec. 4: Agricultural
homestead market value credit modified.
Sec. 5: Disparity reduction aid
modified.
Sec. 6: Certificate modified.
Sec. 7: County auditor¿s certificate
specified as prima facie evidence provision clarified.
Sec. 8: Calculation and
payment procedures expanded.

ARTICLE 6: DEPARTMENT OF REVENUE SALES AND
USE
TAXES

Section 1: Sale and purchase technical amendment provided.
Sec. 2:
Farm machinery definition clarified.
Sec. 3: Computer defined.
Sec. 4:
Electronic defined.
Sec. 5: Computer software defined.
Sec. 6: Prewritten
computer software definition clarified.
Sec. 7: Logging equipment defined.
Sec.
8: Taxable service use of tangible property provision expanded.
Sec. 9:
Multiple points of use modified.
Sec. 10: Mobile telecommunicatons service
definition clarified.
Sec. 11: Prepared food, candy, and soft drinks served at
schools exempt from taxation.
Sec. 12: Conforming change.
Sec. 14: School
computers exemption modified.
Sec. 15: Sewing material exemption provided.
Sec.
16: Job opportunity building zone technical amendments.
Sec. 17: Biotechnology
and health sciences industry zone technical amendments.
Sec. 18: Conforming
change.
Sec. 19: Tree, bush, and shrub removal to construct and maintain roads
provision modified.
Sec. 20-24: Conforming changes.
Sec. 25: Exemption
certificate format modified.
Sec. 26: Collected tax usage expanded.
Sec. 27:
Eligible persons refund procedure modified.
Sec. 28-30: Technical amendments
and conforming changes.
Sec. 31: Date clarified.
Sec. 32: Repealer.

ARTICLE
7: DEPARTMENT OF REVENUE SPECIAL TAXES AND FEES

Section 1: Registration fees
modified.
Sec. 2: Financing transfer deed tax provided.
Sec. 3: Helath care
provider definition modified.
Sec. 4: Tax statement modified.
Sec. 5: Weighted
average retail price defined.
Sec. 6: Distilled spirits definition
modified.
Sec. 7: Flavored malt beverage defined.

ARTICLE 8: DEPARTMENT OF
REVENUE MISCELLANEOUS

Section 1: Electronic means definition modified.
Sec. 2:
Electronically filed returnes clarified.
Sec. 3: Assessment review procedures
modified.
Sec. 4-5: Technical clarifying changes.
Sec. 6: Exempt property
specified.
Sec. 7: Accrual date clarified.
Sec. 8: Reportable transactions
effective date provided.

ARTICLE 9: PUBLIC FINANCE

Section 1: Technical
references added.
Sec. 2: Payable procedures and eligibility specified.
Sec. 3:
Amount limitation revised.
Sec. 4: Conforming change.
Sec. 5: Market value
definition modified.
Sec. 6: Debt obligation definition clarified.
Sec. 7-10:
Conforming and technical changes.
Sec. 11: Carver county authority name change
authorized.
Sec. 12: Ramsey general obligation bonds authorized.
Sec. 13:
Unified pool for office of higher education temporary priority established.
Sec.
14: Unified pool temporary priority change provided.
Sec. 15: Office of higher
education total allocation provided.


ARTICLE 10: TAX INCREMENT
FINANCING

Section 1: Consultations comment procedure modified.
Sec. 2: Plan
modification clause clarified.
Sec. 3: Annual disclosure technical language
clarification provided.
Sec. 4: Duration technical reference added.
Sec. 5-6:
Technical and conforming changes.
Sec. 7: Decertification revenue usage
clarified.
Sec. 8: Pooiing permission clause clarified.
Sec. 9: Net tax
capacity effective date established.
Sec. 10: Date clarified.
Sec. 11: Elector
approval clarified.
Sec. 12: Burnsville TIF district established.
Sec. 13:
Detroit Lakes TIF district establsihed.
Sec. 14: Minneapolis TIF district
established.
Sec. 15: Faribault TIF district established.
Sec. 16: Brooklyn
Park TIF district established.
Sec. 17: Repealer.

ARTICLE 11: AIDS AND
CREDITS

Section 1: City aid base determination procedure expanded.
Sec. 2:
City aid distribution modified.
Sec. 3: Mahnomen county tax reimbursment
appropriation provided.

ARTICLE 12: MINERALS

Section 1: Producer
defined.
Sec. 2: Occupation tax computation procedure clarified.
Sec. 3: Gross
income computation procedure clarified.
Sec. 4: Deductions allowable
clarified.
Sec. 5: Iron ore occupation tax clarified.
Sec. 6: Gross income for
iron ore or taconite combination authorized.
Sec. 7: Deductions specified.
Sec.
8: Applicable deductions for minerals specified.
Sec. 9: Economic development
fund clarified.
Sec. 10: Technical clarification.
Sec. 11: Percent of taxable
ton increased.
Sec. 12: Grant and loan fund expanded.
Sec. 13: Public works
and local economic development fund established.
Sec. 14: Sylvan township tax
imposition authorized.
Sec. 15: Issuance modified.
Sec. 16: Transition
provisions provided.
Sec. 17: Repealer.

ARTICLE 13: MISCELLANEOUS

Section 1:
International economic development zone property modified.
Sec. 2: Sales and
use tzx percentage modified.
Sec. 3: Accelerated payment of June sales tax
liabliity clarified.
Sec. 4: Exemptions clarified.
Sec. 5: Minnesota proprety
and Minnesota payrolls definitions modified.
Sec. 6: International economic
development zones clarified.
Sec. 7: Effective dates set.
Sec. 8: Conforming
change.
Sec. 9; Foreign trade zones application authorized.
Sec. 10: Duration
limit specified.
Sec. 11: IEDZ designation clarified.
Sec. 12: Business plan
findings specified.
Sec. 13: Jobs credit authorized.
Sec. 14: Obligations
established.
Sec. 15: Tax defined.
Sec. 16: Date extended.
Sec. 17: Tax
relief account cancelation authorized.
Sec. 18: Applicability clause provided.


AME
5/22/06