Legislative Session number- 81

Bill Name: HF4127

hf4127THIRD ENGROSSMENTOmnibus tax bill and money appropriated.ARTICLE 1 2000
SALES TAX REBATESection 1: sales tax rebate statement of purpose. Sec. 2:
individual sales tax rebate schedule, definitions, and requirements provided.
Sec. 3: appropriation provided to fund the 2000 sales tax rebate. Sec. 4:
effective date.ARTICLE 2 AGRICULTURAL ASSISTANCE Sec. 1: livestock production
facility definition clarified. Sec. 2-3: payments to farmers deadline extended.
Sec. 4: agricultural assistance appropriation added for year 2000. Sec. 5:
agricultural assistance in 2000; definitions, payments, limits, and penalties
provided. Sec. 6: appropriation provided to fund agricultural assistance
measures.ARTICLE 3 1999 SALES TAX REBATE Sec. 1: 1999 sales tax rebate residency
requirement clarified, deadlines extended, and estate provisions specified. Sec.
2: application of law clarified. Sec. 3: appropriation provided to pay for
rebates.ARTICLE 4 INCOME AND FRANCHISE TAXES Sec. 1: tax refund or return
preparer definition provided. Sec. 2: tax withholding effective date clarified.
Sec. 3: corporate minimum liability clarified. Sec. 4: reasonable cause presumed
for late payment of state income tax if paid within six months. Sec. 5:
subtractions from federal taxable income carryover provided, health insurance
deduction clarified, and small ethanol producer credit deduction provided. Sec.
6: corporate federal taxable income additions to include minimum fees for
corporations or partnerships tax. Sec. 7: federal small ethanol producer credit
allowed as deduction from corporate federal taxable income. Sec. 8: depreciation
modifications for corporations provisions clarified. Sec. 9: income and
franchise taxation general rule clarifications provided. Sec. 10-11: taxation
exceptions and limitations effective date provided. Sec. 12: schedules of rates
for individuals, estates, and trusts modified. Sec. 13: previous inflation
adjustment of brackets imposition date delayed. Sec. 14: credit for taxes paid
to another state effective date provided. Sec. 15: nonresident s credit for
taxes paid to state of domicile. Sec. 16: credit provided for transit passes.
Sec. 17-18: Minnesota working family credit percentages increased, and
appropriation to include TANF block grants fund transfers. Sec. 19: TANF block
grant funds appropriated to pay for expansion of Minnesota working family
credit. Sec. 20-21: long-term care insurance credit definitions and credit
maximums modified. Sec. 22: marriage penalty credit earned income definition
modified. Sec. 23: minimum income levels increased for marriage penalty credit.
Sec. 24: marriage penalty credit schedule provided. Sec. 25: individual, estate,
and trust alternative minimum tax decreased. Sec. 26: alternative minimum
taxable income definition modified. Sec. 27: alternative minimum tax credit for
prior years liability conforming change provided. Sec. 28: assignment of
nonbusiness income for nonresidents provisions clarified. Sec. 29: irregular
period withholding provisions clarified. Sec. 30: employees incurring no income
tax liability provisions clarified. Sec. 31: payments to horseracing license
holders withholding percentage reduced. Sec. 32: lottery prize withholding tax
percentage reduced. Sec. 33: enterprise zone tax credit rate conforming change
provided. Sec. 34: tax information sample data study provided and reports
required. Sec. 35: temporary powers granted commissioner of revenue to establish
alternative tax filing and payment date pilot studies. Sec. 36: study of
taxpayer assistance services provided. Sec. 37: electronic income tax checkoff
program report required.ARTICLE 5 PROPERTY TAXES Sec. 1: annual appraisal of
flight property required. Sec. 2: airflight property tax lien provided. Sec. 3:
political subdivisions under 10,000 population allowed to hold property for 15
years for public purpose of later resale for economic development purposes. Sec.
4: specified electric generation facility property tax exemption provided. Sec.
5: information required on a certificate of real estate value (CRV) limited to
the information required as of the date of acknowledgment of the deed. Sec. 6:
green acres treatment extended to noncontiguous agricultural land that is farmed
with qualifying agricultural land if the noncontiguous parcel is within four
townships of the qualifying land Sec. 7: residential homestead general rule
provisions clarified and agricultural homestead eligibility extended to
grandchildren. Sec. 8: joint farm ventures included in family farm corporation
homestead provisions. Sec. 9: special agricultural homestead provisions
specified for child of landowner and for shareholders or partners farming family
farm corporations, partnerships, or joint farm ventures; and specified
agricultural property consisting of at least 40 acres classified as homestead.
Sec. 10: trust property homestead requirements provided. Sec. 11: storage sheds
or decks on travel trailer sites exempted from property taxes if under a
specified value. Sec. 12: class 3 property tax provisions modified. Sec. 13:
class 4 property tax provisions modified. Sec. 14: education agricultural credit
percentage increased. Sec. 15: taxable wind energy conversion systems technical
clarification. Sec. 16: utility valuations proceedings and appeals process
provided. Sec. 17: Middle Mississippi river watershed management organization
defined as a special taxing district for purposes of property taxation and
property tax state aids. Sec. 18: property tax overpayment provision clarified.
Sec. 19: refunds and refund process provided for repayment of mistakenly billed
taxes. Sec. 20: senior citizens property tax deferral program requirement
repealed relating to delinquencies. Sec. 21: delinquent taxes and special
assessments paid to county upon approval of senior citizen property tax deferral
application. Sec. 22: maximum allowable total deferral amount reduced to reflect
delinquent property taxes, penalties, and interest. Sec. 23: calculation of
deferred property tax amount provisions clarified. Sec. 24: property tax,
penalties, interest and special assessments added to lien created under senior
citizen property tax deferral program. Sec. 25-27: senior property tax deferral
program termination and payment upon termination provisions clarified; and money
appropriated for county payments. Sec. 28: Dakota county administrative penalty
authority extended relating to water resources. Sec. 29: municipality definition
extended to include counties for purposes of special assessment for 911
services. Sec. 30: definition of improvement extended to include signs and
markers for addressing related to special assessment for 911 services. Sec. 31:
municipal councils authorized to establish signs and markers for addressing
related to operation of enhanced 911 telephone service. Sec. 32: notice of
special assessment hearings required to contain impact statements. Sec. 33:
White Earth Indian reservation designated housing entity property tax exemption
provided. Sec. 34: entire town of Silver included in Moose Lake fire protection
district. Sec. 35: town of Silver fire protection services property tax
repealed. Sec. 36: Moose Lake fire protection district authorized to acquire
capital equipment. Sec. 37: Eveleth-Gilbert joint recreation board tax
authorized. Sec. 38: forest land taxation study required. Sec. 39: money
transferred from property tax reform account to the general fund. Sec. 40:
repealer. Sec. 41: effective date.ARTICLE 6 LEVY LIMITS AND AIDS TO LOCAL
GOVERNMENT Sec. 1-2: payments in lieu of taxes to a county or town for public
hunting areas, game refuges, and goose management croplands reduced by the
amount of payments to that county or town for that year under the general
payment in lieu of taxes (PILT) provision; and payments allocated within the
county. Sec. 3: levy limit aid offset for court costs increase provided. Sec. 2:
consumer price index definition provided. Sec. 3: special levy authority to
operate regional jails extended, and special levy provided to counties electing
to provide assessments by county-wide process. Sec. 4: special levies definition
modified. Sec. 5: previous property tax levy limit clarification provided. Sec.
6: city aid base increase provided, and adjustments provided for specified
municipalities. Sec. 7: local government aid payments increased to incorporate
local performance aid. Sec. 8-9: class 4d low-income apartment aid extended.
Sec. 10: statutory reference technical correction provided. Sec. 11-14:
inflation adjustments provided for the amounts paid as payments in lieu of taxes
for natural resources land beginning in 2001 and thereafter. Sec. 15-16: Cook
area hospital district mathematical errors corrected. Sec. 17: capitol region
watershed district levy limit provided. Sec. 18: Lincoln county aid increase
provided for legal costs. Sec. 19: additional local government aid provided city
of St. Cloud and St. Augusta township (city of Ventura). Sec. 20: Lake of the
Woods and Koochiching county expenditures for road and bridge purposes
authorized. Sec. 21: St. Louis county heritage and arts center included in
definition of capital improvement.ARTICLE 7 MOTOR VEHICLE REGISTRATION TAX Sec.
1: providing a passenger automobile motor vehicle registration tax maximum of
189 for first renewal period and 99 for subsequent renewal periods. Sec. 2:
motor vehicle tax funds dedicated to the highway user tax distribution fund.
Sec. 3: money appropriated to the highway user tax distribution fund.ARTICLE 8
SALES AND USE TAXES Sec. 1: due date provisions for electronic fund transfer tax
technical modification provided, and remittance percentage reduced. Sec. 2:
penalty provided for misusing sales tax exemption certificate to evade tax on
services. Sec. 3: conforming change. Sec. 4: maple syrup harvesting included in
agricultural production definition. Sec. 5: farm machinery definition expanded
to include equipment used in production of trees and shrubs, and in harvesting
maple syrup. Sec. 6: agricultural processing facilities building materials and
equipment sales tax refund provided, and money appropriated. Sec. 7: aircraft
delivered outside state sales tax exemption provided. Sec. 8: base blocks used
in metalcasting sales tax exemption provided. Sec. 9: sales to state agency
libraries exempted, and sales to a county of gravel and road maintenance
machinery and leases of motor vehicles exempted. Sec. 10: nonprofit and
charitable organization motor vehicle leasing sales tax exemption clarified.
Sec. 11: motor vehicle tax exemption clarified relating to vehicles purchased or
leased by political subdivisions. Sec. 12: materials used to make residential
property handicapped accessible sales tax exemption provided. Sec. 13:
maintenance of cemetery grounds tax exemption provided. Sec. 14: sales tax
exemption provided for patents, trademarks and copyright drawings and documents.
Sec. 15: machinery and equipment used for ski areas tax exemption provided. Sec.
16: feed for poultry raised for human consumption tax exemption provided. Sec.
17: specified agricultural pork processing facility (Prairie Farmers
Cooperative) construction materials tax exemption provided. Sec. 18: specified
pork and beef processing facility (Lorentz Meats) construction materials tax
exemption provided. Sec. 19: motor vehicle transfers exempted from sales tax
expanded to include gift transfers between individuals submitting affidavit to
that effect. Sec. 20: motor vehicle tax exemptions expanded. Sec. 21: local
sales tax on motor vehicles maximum amount implemented. Sec. 22: commissioner of
revenue authorized to enter into multistate sales tax discussions, pilot project
authorized, and report required.ARTICLE 9 HEALTH CARE TAXES Sec. 1: health
maintenance organization premium tax provisions modified. Sec. 2: patient
services definition exclusions provided relating to nursing home services and
examinations. Sec. 3: federal employees health benefits act payments exempted
from the MinnesotaCare tax. Sec. 4: provider tax refunds paid from health care
access fund.ARTICLE 10 SPECIAL TAXES Sec. 1: county reporting requirements
expanded on usage of SCORE grant funding. Sec. 2: mortgage registry and deed tax
amendment definition technical clarification provided. Sec. 3: lawful gambling
tax reduced on paddlewheel, raffles, and bingo. Sec. 4: tax credit provided for
specified raffles which benefit victims of accident, crime, fire, illness or
natural disaster. Sec. 5: pull-tab and tipboard tax reduced and conforming
changes provided. Sec. 6: lawful gambling combined receipts taxes reduced. Sec.
7: consumer definition clarified relating to tobacco. Sec. 8: invoice definition
provided relating to tobacco. Sec. 9: tobacco retailer licensure requirement
clarified. Sec. 10: tobacco tax stamp definition clarified. Sec. 11: unlicensed
seller definition provided. Sec. 12-16: tobacco; heat applied tax stamp
references replaced with tax stamp. Sec. 17-18: June accelerated payments of
excise tax on cigarettes and tobacco products repealed. Sec. 19: retailer and
subjobber required to preserve invoices and make them available upon request by
the commissioner. Sec. 20: contraband definition expanded to include tobacco
products offered for sale or held as inventory without an invoice. Sec. 21:
contraband seizure provisions clarified. Sec. 22: repealer.ARTICLE 11 TAX
INCREMENT FINANCING Sec. 1: qualified housing district definition expanded to
include specified single-family homeownership projects. Sec. 2: housing
improvement area authority definition provided. Sec. 3: implementing entity
definition provided. Sec. 4: governing bodies authorized to implement multiple
housing improvement areas. Sec. 5-10: city references replaced with implementing
entity related to housing improvement areas. Sec. 11: housing improvement area
authority sunset extended to 2005. Sec. 12:housing and redevelopment authority
power to conduct mined underground space development repealed. Sec. 13: mined
underground space tax increment financing district option repealed. Sec. 14:
redevelopment district definition expanded to include tank facilities property.
Sec. 15: tax increment financing housing district definition modified. Sec. 16:
mined underground space development district removed from economic development
district definition. Sec. 17: administrative expense definition clarified. Sec.
18: tourism facility definition clarified. Sec. 19: counties allowed 45 days to
submit proposed road improvements to be included in TIF plan. Sec. 20:
notification of counties and school districts required to be sent to the county
auditor and clerk of the school district. Sec. 21: commissioner authorized to
waive 30-day notice requirement for housing or redevelopment districts. Sec. 22:
mined underground space development district reference deleted. Sec. 23: annual
disclosure provisions modified. Sec. 24: annual financial reporting provisions
modified. Sec. 25: TIF duration limits and terms modified. Sec. 26: housing
district revenue use requirements provided. Sec. 27: noncompliance and
enforcement measures specified. Sec. 28: housing district expenditures outside
the district requirements specified. Sec. 29: original net tax capacity
adjustment provisions modified. Sec. 30: enforcement provisions clarified. Sec.
31: tax increment reporting provision clarified. Sec. 32: repayment provisions
specified for increments received after maximum duration of district. Sec.
33-35: property tax abatement provisions modified. Sec. 36: increment definition
provided. Sec. 37: Brooklyn Park economic development authority, TIF No. 18,
green acres usage extended. Sec. 38: Fountain TIF district 1-1 extension
authorized. Sec. 39: Mendota Heights TIF district No. 1 extension authorized.
Sec. 40: St. Paul housing and redevelopment authority TIF housing district
authorized, area defined, and income requirements provided. Sec. 41: Winona TIF
no. 2 district ratification of expenditure provided. Sec. 42: Richfield
redevelopment grants provided. Sec. 43: Minnesota Minerals 21st Century Fund
appropriation provided. Sec. 44: repealer.ARTICLE 12 FEDERAL UPDATE Sec. 1:
Internal Revenue Code reference updated. Sec. 2: net income definition updated.
Sec. 3-5: Internal Revenue Code references updated.ARTICLE 13 MISCELLANEOUS Sec.
1: compromise of fee claims provided. Sec. 2: lost or destroyed warrant
duplicate indemnity provisions clarified. Sec. 3: notification of action on
debts by department of revenue provisions clarified. Sec. 4: vehicles owned by
an employee of a commercial driving school used exclusively for driver education
and training tax exemption provided. Sec. 5: federal tax refund offset fees
clarified. Sec. 6: date of assessment definition clarified. Sec. 7: claimant
agency definition expanded to include municipalities presenting claims for a
municipal ambulance service. Sec. 8: joint property tax refund definition
clarified. Sec. 9: claimant agency fee additions repealed. Sec. 10: notice
setoff procedures clarified. Sec. 11: commissioner filed returns provisions
clarified. Sec. 12: non-specific penalties to bear interest after sixty days
from date of notice. Sec. 13-17: technical clarifications. Sec. 18: Itasca and
Cass counties distribution of casino tax revenues. Sec. 19: surplus transfer
from workers compensation assigned risk plan provided. Sec. 20: instruction to
revisor. Sec. 21: repealer.cth