Legislative Session number- 81

Bill Name: HF2420

hf2420LAWS 1999 - CHAPTER 243THIRD ENGROSSMENTOmnibus tax bill and money
appropriated.ARTICLE 1 - SALES TAX REBATESection 1: statement of purpose. Sec.
2: sales tax rebate provided individuals. Sec. 3: money appropriated to fund the
sales tax rebate. Sec. 4: effective date.ARTICLE 2 - INCOME AND FRANCHISE TAXES
Sec. 1: notification of action by department of revenue provided in cases of
writing off uncollectible debt. Sec. 2: individual charitable contributions
prohibited from consideration in determining residency. Sec. 3: federal taxable
income additions eliminated for S corporation banks. Sec. 4: subtractions from
federal taxable income modified, including a subtraction for holocaust victims'
settlement payments. Sec. 5: basis modifications affecting gain or loss on
disposition of property S corporation provision eliminated. Sec. 6: accelerated
cost recovery system (ACRS) modification for individuals provisions modified.
Sec. 7: Holocaust victims' settlement payments definition provided. Sec. 8:
individuals, estates, and trusts income tax rate schedules reduction provided.
Sec. 9: inflation adjustment of brackets provided. Sec. 10: S corporation
shareholder tax credit provided. Sec. 11: corporations paying taxes to another
state provided credit against the franchise tax imposed upon corporations. Sec.
12-13: Minnesota working family credit increased, and credit allowed for
qualifying children; education-related expenses definition expanded to include
instruction by a member of the Minnesota music teachers association. Sec. 14:
Minnesota education credit limitations modified relating to claimants' income.
Sec. 15: marriage penalty credit provided. Sec. 16: alternative minimum tax on
preference items reduced. Sec. 17: holocaust victims' settlement payments and S
corporation distributions excluded from alternative minimum taxable income
definition. Sec. 18: S corporation bank distribution adjustments eliminated from
calculation of credit based on prior year's alternative minimum tax. Sec. 19:
charitable contribution deduction clarified relating to alternative minimum tax.
Sec. 20: net operating loss carryover provision clarified. Sec. 21: all income
of a trade or business subjected to apportionment except nonbusiness income.
Sec. 22: unitary business principle provisions modified. Sec. 23: unitary
business nonbusiness income definition provided. Sec. 24: apportionment formula
of general application percentages modified. Sec. 25: apportionment formula for
financial institutions percentages modified. Sec. 26: banks allowed to be S
corporations, and S corporation tax liability clarified. Sec. 27: S corporation
banks required to report apportionment of tax obligation to shareholders. Sec.
28: holocaust settlement payments excluded from definition of income relating to
property tax refunds, and other state programs. Sec. 29: commissioner of revenue
prohibited from assessing tax liability for nonbusiness income on businesses
reporting all income as business income prior to 1999. Sec. 30: bank S
corporation shareholders alternative minimum tax provided. Sec. 31: taxpayer
assistance services grants provided nonprofit organizations, and definition
provided. Sec. 32: effective dates.ARTICLE 3 - FEDERAL UPDATE Sec. 1-2: Internal
Revenue Code and net income references updated. Sec. 3: subtractions from
federal income limit reference updated. Sec. 4-6: Internal Revenue Code
references updated. Sec. 7: effective dates.ARTICLE 4 - SALES AND USE TAXES Sec.
1: construction materials suppliers authorized to report gross receipts either
on a cash basis or accrual basis as sales are made. Sec. 2: remittance
requirement provided for construction materials suppliers sales and use tax.
Sec. 3: capital equipment refunds to purchasers provisions clarified. Sec. 4:
metalcasting materials, tools, and equipment exempted from sales and use taxes.
Sec. 5: sale of tangible personal property to outpatient surgical centers
exempted from sales and use tax. Sec. 6: materials used to construct buildings
that house biosolid processing equipment exempted from sales and use tax. Sec.
7: prizes given to players in games of skill or chance at certain events lasting
less than six days exempted from sales and use tax. Sec. 8: construction
materials used at certain cattle slaughtering facility project exempted from
sales and use taxes. Sec. 9: materials used in production of television
commercials exempted from sales and use tax. Sec. 10: construction materials and
equipment used in construction of biomass electrical generating facility
exempted from sales and use tax. Sec. 11: waste management containers and
compactors exempted from sales and use taxes. Sec. 12: local sales tax
imposition subjected to local approval, and use and termination of tax provided.
Sec. 13: determination of where sales occur provided relating to zip codes and
political subdivisions. Sec. 14: Central Minnesota Events Center funds use and
tax clarifications provided. Sec. 15: Central Minnesota Events Center local tax
and bonding authority clarified. Sec. 16: Central Minnesota Events Center local
tax expiration provided. Sec. 17: New Ulm sales and use tax authorized. Sec. 18:
Proctor sales and use tax authorized. Sec. 19: effective dates.ARTICLE 5 -
PROPERTY TAXES Sec. 1-2: homestead appeals allowed in tax court. Sec. 3: Martin
county electric utility peaking facility exempted from property taxation. Sec.
4: exemption provided for customer owned property transferred to a utility., and
for tools, implements, and machinery of an electric generating facility. Sec. 5:
property owned by a utility and leased for 20 years or longer treated as
separate property parcels. Sec. 6: limited market value increase reduced for
residential, agricultural, and seasonal recreational residential property. Sec.
7: This old house program valuation exclusions for new improvements provided,
minimum house age eligibility increased, full exclusion eligibility modified,
estimated market value eligibility limit provided, minimum improvement threshold
and phase-in period provided. Sec. 8: Ramsey county green acres property
treatment continued. Sec.9: relative homestead extended to nieces and nephews of
the property owner, and qualification extended for property occupied by a child
or children of a deceased property owner for relative homestead classification
during the time the property is in probate. Sec. 10: requirements provided for
homesteads on property leased from electric utilities. Sec. 11: homesteads
allowed on family farm corporations land when owner resides on and farms land.
Sec. 12: county auditors and treasurers allowed to view social security numbers
and federal identification numbers in preparation of microdata samples. Sec. 13:
agricultural homestead provisions modified for homesteads where owner is not
living on the property. Sec. 14: political subdivisions prohibited from imposing
additional homestead requirements. Sec. 15: class 1 residential property net
class rates reduced. Sec. 16: class 2 agricultural property net class rates
reduced, and agricultural property definition expanded to include insects used
as food for animals, and trees grown for sale as a crop. Sec. 17: class 3
commercial industrial property class rates reduced. Sec. 18: personal property
tax imposed on qualifying transit zone property leaseholders. Sec. 19: class 4
residential real estate class rates reduced. Sec. 20: class 5 property
definition modified, and class rate reduced. Sec. 21: education agricultural
credit provided. Sec. 23: homestead and agricultural credit and disparity
reduction aid billing increase removed. Sec. 24: ad valorem property tax
assessors allowed access to land and structures and authorized to estimate value
in cases of refusal. Sec. 25: favorable market value adjustments denied owners
refusing access for inspection. Sec. 26: distribution of interest on property
tax delinquencies modified. Sec. 27: homestead market value maximum limit
defined. Sec. 28: senior citizen's property tax deferral program income
limitation increased. Sec. 29: senior citizens' property tax deferral program
recording or filing fee paid by homeowner at the time of satisfaction of the
lien. Sec. 30-31: senior citizen's property tax deferral program income
limitation increased. Sec. 32: senior citizen's property tax deferral program
annual maximum property tax amount reduced. Sec. 33: Giants Ridge recreation
area property tax homestead disqualification removed. Sec. 34: capital
improvement bonds capital improvement definition modified. Sec. 35: county board
authorized to acquire development rights in the form of conservation easements.
Sec. 36: application procedure modified for certification of housing qualifying
for reduced property tax rate. Sec. 37: federal legislation definition updated.
Sec. 38: housing and redevelopment authority schedule of powers modified. Sec.
39-41: statutory cities, counties and towns authorized to issue bonds for the
acquisition of development rights in the form of conservation easements. Sec.
42: city aid base increases provided. Sec. 43: class 4d property low income
apartment aid qualifying threshold reduced. Sec. 44: elderly assisted living
facilities assessment moratorium provided. Sec. 45: Ramsey and Washington county
taxpayer's personal information disclosure sunset provision delayed. Sec. 46:
Lake county, Two Harbors, and Lake Superior independent school district No. 381
tax abatement provided for specified lands in Lake county. Sec. 47: Lake county
land conveyance recording authorized. Sec. 48: local performance aid recipient
other aid increases provided. Sec. 49: recommendations required on utility tax
policy. Sec. 50: Dakota county administrative penalties authorized. Sec. 51:
manufactured home parks property tax savings legislative intent provided. Sec.
52: counties provided 2000 charity care aid requirements. Sec. 53: property tax
abatement provided property damaged by tornado of March , 1998. Sec. 54:
repealer. Sec. 55: effective dates.ARTICLE 6 - LEVY AUTHORIZATION AND LEVY
LIMITS Sec. 1: counties authorized to levy for redistricting expenses. Sec. 2:
county auditor required to certify certain information to cities for taxing
jurisdiction. Sec. 3: special levies authorized to pay for certain correctional
facilities. Sec. 4: levy limit bases provided, and county levy limit reduced to
reflect state assumption of district court costs. Sec. 5: adjusted levy limit
base calculation extended and new commercial industrial property construction
eliminated as a calculation factor. Sec. 6: property tax levy limits extended.
Sec. 7: differential taxation determination provided for cooperation and
combination. Sec. 8: metropolitan council's authorization to levy for the tax
base revitalization account of the livable communities fund removed. Sec. 9:
Cook hospital district levy limit increased to pay for ambulance acquisitions
for Cook and Orr ambulance services. Sec. 10: effective date. Sec. 11: Carlton
county cemetery levy authorized for Sawyer unorganized township. Sec. 12:
Goodhue county levy limits and aid adjustments provided, and money appropriated.
Sec. 13: Grant city levy limits provided. Sec. 14: North Fork Crow River
watershed district levy authorized. Sec. 15: Sauk River watershed district levy
authorized. Sec. 16: Stillwater authorized to divide area into separate taxing
districts relating to annexation agreement for Stillwater township. Sec. 17:
repealer. Sec. 18: effective date. ARTICLE 7 - SPECIAL TAXES Sec. 1: retaliatory
provisions modified relating to assessments. Sec. 2: undyed kerosene sales tax
refund provided. Sec. 3: racing gasoline sales tax refund provided. Sec. 4:
business day defined relating to gambling taxes. Sec. 5 paddlewheel, raffle, and
bingo tax rate reduced. Sec. 6 pull-tab and tipboard tax due date modified. Sec.
7 pull-tab and tipboard tax rate reduced. Sec. 8 combined receipts tax reduced.
Sec. 9 tobacco wholesale price definition clarified. Sec. 10: time limit for bad
debt refund provided relating to cigarettes and tobacco taxes. Sec. 11: mixed
municipal solid waste tax provided for self-haulers. Sec. 12: daily cover for
landfills exempted from sales tax. Sec. 13: effective dates.ARTICLE 8 -
MINNESOTACARE TAXES Sec. 1: health care provider definition modified to include
home health agencies, persons employing health care providers, and educational
institutions employing health care providers. Sec. 2: health care provider tax
freeze implemented. Sec. 3: tax exemptions provided to certain payments received
from nursing homes, and payments received for certain insurance examinations.
Sec. 4: underpayment of estimated tax by hospitals and surgical centers
provisions modified. Sec. 5: hospital and other health care provider estimated
tax payments not required under certain conditions. Sec. 6: sampling techniques
authorized in examining of records and making assessments. Sec. 7: health care
access fund transfer provided. Sec. 8: effective dates.ARTICLE 9 - TACONITE
TAXATION Sec. 1: taconite tax rate frozen. Sec. 2-3: current distributions to
the Northeast Minnesota Economic Protection Trust Fund and the Environmental
Protection Trust Fund extended through production year 2001. Sec. 4: temporary
IRRRB grant and equity investments authorized, and sunset provision removed.
Sec. 5: Minnesota minerals 21st century fund appropriation and matching
requirement provided.ARTICLE 10 - TAX INCREMENT FINANCING Sec. 1: housing
district local contributions provisions modified. Sec. 2: tax increment finance
fund use prohibited for construction or operation of a commons area used as a
public park, or a facility used for social, recreational, or conference
purposes, or from improvements outside of the area of the district. Sec. 3: TIF
fund pooling permitted for districts with deficits. Sec. 4: pre-1982 district
pooling rules provided. Sec. 5: county attorneys required to notify state
auditors of TIF violations, and state auditor required to notify commissioner of
revenue under certain circumstances. Sec. 6: suspension of TIF authority
provided for violations. Sec. 7: conforming changes provided relating to special
pooling authority. Sec. 8: political subdivisions authorized to abate property
taxes if property will finance or provide public infrastructure. Sec. 9:
property tax abatement resolution provisions modified. Sec. 10: abatement
resolution provisions modified. Sec. 11: deferment payment schedule requirements
provided. Sec. 12: school district abatements provisions modified. Sec. 13:
school district abatement restrictions removed. Sec. 14: property tax abatement
authorized without obtaining owner's consent. Sec. 15: political subdivisions
authorized to retain abatements to pay public infrastructure costs. Sec. 16: TIF
grant application deadlines modified. Sec. 17: TIF grant program extension
provided. Sec. 18: Onamia TIF district extension provided pending local
approval. Sec. 19: St. Cloud housing and redevelopment authority TIF pooling
permitted. Sec. 20: St. Paul Williams Hill TIF district extension provided. Sec.
21: Jackson TIF district extension provided. Sec. 22: Minneota TIF district
expenditures ratified. Sec. 23: Fridley TIF district extension provided. Sec.
24: Brooklyn Center TIF modification of election of computation of tax increment
authorized. Sec. 25: Dawson TIF extension authorized. Sec. 26: certain
Minneapolis TIF districts exempted from prohibition on use of social and
recreational facilities. Sec. 27: money appropriated for TIF grants. Sec. 28:
repealer. Sec. 29: effective dates.ARTICLE 11 - STATE FUNDING OF DISTRICT
COURTS; TRANSFER OF FINES, FEES, AND OTHER MONEY TO STATE Sec. 1: certain
natural resources fines and forfeited bail deposited in general fund in counties
where state has assumed district court costs. Sec. 2: homestead and agricultural
credit aid (HACA) fund transfer cancelled. Sec. 3: supreme court required to
determine and certify county share of court costs. Sec. 4: fines and forfeited
bail collected by state patrol deposited in general fund in counties where state
has assumed district court costs. Sec. 5: screener-collector fees deposited in
general fund in counties where state has assumed district court costs. Sec. 6:
increase in family preservation aid reduced resulting from fund transfer
cancellation. Sec. 7: certain court fees and forfeited bail deposit provisions
clarified. Sec. 8: counties where court costs have been transferred to the state
prohibited from levying property taxes for those court costs. Sec. 9: state
treasurer required to refund reinstated forfeited court sums. Sec. 10-11: bonds,
fines, forfeitures, fees, and statutory court costs deposited in the general
fund in counties where state has assumed district court costs. Sec. 12: money
appropriated for funding district courts. Sec. 13: effective dates and
contingency provided. ARTICLE 12 - BUSINESS SUBSIDIES Sec. 1: business subsidies
definitions provided. Sec. 2: local and state business subsidies regulated. Sec.
3: economic grants to businesses required to contain a statement of expected
benefits. Sec. 4: repealer. Sec. 5: effective date.ARTICLE 13- TAX FORFEITURE
AND DELINQUENCY PROCEDURES Sec. 1: tax lien certificate reference removed. Sec.
2: certain class 4b delinquent property taxes deemed ineligible for confession
of judgement. Sec. 3: class 3a property confession of judgement threshold
modified, and current year taxes and penalties due payment required. Sec. 4:
current taxes and penalties due payment required at payment of first installment
of confession of judgement installment agreement. Sec. 5: expiration of
redemption form clarified. Sec. 6: affidavit establishing proof of publication
contents modified. Sec. 7: service of notice on tax forfeited lands sheriff
requirements modified. Sec. 8: time period before county sale of tax-forfeited
parcels shortened, and application deadline modified. Sec. 9: tax-forfeited land
sale payment authorized in twelve annual installments. Sec. 10: purchase of
lands by former owner provisions clarified so that former owner must pay the
greater of the bid price at auction or the total of the owed tax. Sec. 11:
county maintenance of tax-forfeited land provided. Sec. 12: net proceeds from
sale or rental of tax-forfeited land fund use specified. Sec. 13: apportionment
of proceeds from tax-forfeited lands to taxing districts provisions clarified.
Sec. 14: disbursements made affecting repairs, refunds, or expenses for
tax-forfeited lands charged to the forfeited land tax sale fund. Sec. 15:
payment of maintenance costs required in cases of repurchase of lands by
previous owners. Sec. 16: service fee required at time of application. Sec. 17:
counties authorized to impose conditions of repurchase limiting uses of parcels.
Sec. 18: tax certificate reference deleted. Sec. 19: school district option to
object to certain abatements eliminated. Sec. 20: St. Louis county auditor
requirement to list name of purchaser at a tax sale eliminated. Sec. 21:
repealer. Sec. 22: effective dates.ARTICLE 14- WATER AND SANITARY SEWER
DISTRICTS Sec. 1: Cedar lake area water and sanitary sewer district definitions
provided. Sec. 2: Cedar lake area water and sanitary sewer district established
in Helena and Cedar Lake townships and New Prague in Scott county. Sec. 3:
general organization and operation provisions for board enumerated. Sec. 4:
general powers of board provided. Sec. 5: comprehensive board plan and program
required. Sec. 6: Cedar lake area sanitary sewer board empowered to administer
Cedar lake area water and sanitary sewer district, issue obligations, and impose
special assessments. Sec. 7: system expansion application to cities provided.
Sec. 8: board powers of sewage collection and disposal provided Sec. 9: board
budget required. Sec. 10: cost allocation definitions and methods of allocations
provided. Sec. 11: board authorized to levy taxes. Sec. 12: public hearing
requirements provided. Sec. 13: board authorized to issue bonds, certificates,
and other obligations. Sec. 14: board required to designate depositories. Sec.
15: money, accounts, and investments requirements provided. Sec. 16: board
authorized to enter into service contracts with governmental entities outside
the jurisdiction of the board. Sec. 17: projects required to be approved by the
MPCA if required, and contracts awarded according to the Uniform Municipal
Contracting Law. Sec. 18: properties owned by the board exempted from taxation.
Sec. 19: relation to existing laws clarified. Sec. 20-38: Banning Junction area
water and sanitary sewer district established. Sec. 39: effective date and
reverse referendum provided.ARTICLE 15 - AUTOMATIC REBATE IN ENACTED BUDGET Sec.
1: future general fund surplus rebate requirements provided. Sec. 2: tax reform
and reduction account abolished, and balance reverted to general fund. Sec. 3:
effective date.ARTICLE 16- MISCELLANEOUS Sec. 1-2: local fiscal impact notes
requirements modified, deleting reference to administrative rules. Sec. 3:
tobacco settlement fund established, and payments credited. Sec. 4: tax penalty
and interest abatements authorized in presidentially declared disaster areas,
and attorney general approval requirement removed. Sec. 5: erroneous refund date
of assessment definition provided relating to dishonored checks. Sec. 6:
offers-in-compromise program authorized to resolve disputes in tax liabilities.
Sec. 7: interest provided on penalty for failure to make payment by electronic
funds transfer. Sec. 8: revenue recapture act claimant agency definition
provided. Sec. 9-10: revenue recapture hearing requirement provisions modified.
Sec. 11: mortgage registry tax debt definition modified. Sec. 12-13: mortgage
registry tax real property outside of Minnesota provisions modified. Sec. 14:
divorced and innocent spouse relief provisions modified. Sec. 15: time limit for
filing claim for refund of an overpayment of state tax provision clarified
relating to appeals. Sec. 16: suspension of time limit for filing individual
income tax claim provided during period of disability. Sec. 17: commissioner's
refund form requirements provided. Sec. 18: no action on a claim deemed
allowance of refund. Sec. 19: conforming change. Sec. 20: obsolete reference
referring to a minimum penalty deleted. Sec. 21: outdated reference stricken.
Sec. 22: sales tax on capital equipment refund general procedural requirements
clarified. Sec. 23: agricultural aircraft required to be listed for taxation and
registration. Sec. 24: municipal board sunset date modified. Sec. 25: office of
strategic and long-range planning director authorized to require alternative
dispute resolution processes.Sec, 26: border city development zones state
funding limit exemption provided. Sec. 27: additional border city enterprise
zone allocations provided. Sec. 28: money appropriated to fund waivers granted
under funding limit exemptions. Sec. 29: border city enterprise zones
competitiveness grant allocation extension provided. Sec. 30-33: previous
agricultural relief act definitions and other provisions modified. Sec. 34:
commissioner of trade and economic development required to report border city
credit limit waivers. Sec. 35: Richfield airport impact zone designated,
definitions provided, bonds issued, obligations defined, and federal law
compliance provided. Sec. 36: filing extension provided for Operation Allied
Force service members. Sec. 37: funds transferred from the conservation fund to
the general fund. Sec. 38: money appropriated for administration of this act.
Sec. 39: repealer. Sec. 40effective dates.cth