Legislative Session number- 89

Bill Name: SF0826

1E Relating to state government taxation

ARTICLE 1 - INCOME, CORPORATE
FRANCHISE, AND ESTATE TAXES

Authorizing the commissioner to use tax
collection remedies authorized through participation in audits performed by the
multistate tax commission; modifying the higher education institution greater
internship program participation requirements; defining economic substance for
purposes of disallowing tax effects; making technical corrections; modifying
financial institution and resident definitions; defining financial advisor,
accelerated recognition of certain installment sale gains, and refundable film
production credits; modifying the Minnesota working family credit; extending the
Minnesota education credit to certain preschools and increasing the income
limit; modifying the research activities increase tax credit and adding a sole
proprietors application and certification requirement; creating Minnesota
college savings plan, veterans jobs tax, and employee with employer-provided
fitness facility expenses tax credits; modifying the unitary business principle
for insurance companies; modifying apportionment of net income for determination
of sales factor and dividend deduction; clarifying estate tax subtraction in
eminent domain situations; requiring a report of free electronic filing for
individual income tax returns; establishing a veterans jobs grant program;
appropriating money to the commissioner of revenue for the free electronic
filing study and the veteran jobs grant program

ARTICLE 2 - PROPERTY
TAX

Requiring county levies for soil and water conservation districts to
separately certify amounts and extend levies as special tax district levies;
modifying certain market value; extending historical society appropriations to
cities and towns; adding enrollment in the federal conservation reserve program
as an agricultural purpose; modifying the class 3 property tax rate;
establishing a targeted agricultural land tax credit; modifying the
commercial-industrial property and seasonal residential recreational property
state general levy base amounts; excluding certain seasonal residential
recreational tax capacity market value from tax capacity; prescribing the
metropolitan council and metropolitan mosquito control commission proposed levy
certification dates; making conforming changes; requiring annual levy
preliminary adjustment for the area wide portion and restricting deviation;
clarifying delinquent property taxes due dates and penalties; clarifying
interest on sales of tax-forfeited lands and the property tax refund; modifying
the property tax refund additional refund, senior citizens property tax deferral
program qualifications, initial application, the Lewis and Clark regional water
system project bond maximum, agricultural preserve early termination, and the
Sawyer levy; requiring the commissioner of revenue to offer board of appeals and
equalization in-person training; providing for optional cancellation of tax
forfeiture for certain St. Louis county buildings; requiring a study and report
of production based valuation of agricultural land; authorizing Tofte to own and
operate senior housing units; appropriating money to the commissioner of revenue
for Hennepin county for the North Branch Library EMERGE Career and Technology
Center and for the Cedar Riverside Opportunity Center; repealing agricultural
containment facilities, apportionment and levy of state general tax, and Lewis
and Clark water project bonding for municipalities and payment
allocation

ARTICLE 3 - LOCAL DEVELOPMENT

Modifying tax increment financing
(TIF) restrictions on pooling five-year limit; allowing tax increment bonding
interfund loans; authorizing Coon Rapids to collect TIF from district 6-1 Port
Riverwalk, Richfield and the city housing and redevelopment authority to elect
to extend the Cedar Avenue TIF district duration limit, and the St. Paul housing
and redevelopment authority to establish TIF districts in the former Ford Motor
Company plant area

ARTICLE 4 - SALES AND USE TAXES

Modifying a percentage
for the June tax liability payment; imposing a tax on a percentage of the dealer
cost of a modular home sale; exempting from taxation durable medical equipment
accessories and supplies covered by health insurance plans, precious metal
bullion sales by registered dealers, car seat sales, and nonprofit animal
shelter animal sales; modifying telecommunications capital equipment sales and
nonprofit group sales tax exemptions; modifying cigarette and tobacco and liquor
taxes and tax payments; requiring a construction debris conversion schedule
publication; clarifying lodging tax application and collection; modifying the
Duluth sales and lodging taxation area applicability; authorizing Mankato upon
voter approval to use certain revenues for certain capital projects and athletic
facilities; modifying the Mankato expiration of taxing authority and expenditure
limitation; authorizing Mankato to issue general obligation bonds upon voter
approval; requiring Mankato to pass a resolution in order to extend certain
taxes; extending and increasing the North Mankato sales tax and bonding
authority; requiring voter approval for a Luverne local sales tax; authorizing
Marshall validation of prior act

ARTICLE 5 - PROPERTY TAX AIDS AND
CREDITS

Modifying county tax-base equalization aid; providing reimbursement
of county and tribes for Indian child out-of-home placement under local
government aid (LGA) and appropriating money; making unorganized territory
eligible for LGA; increasing the number of LGA installment payments; specifying
aid amounts for cities, counties, and unorganized territories; modifying land
payments to the commissioner of natural resources (DNR); making Worthington
eligible for a LGA distribution instead of the Lewis and Clark joint powers
board; reducing certain LGA; modifying the Red River watershed management board
payment in lieu of taxes; authorizing Oslo, Dundee, Jeffers, and Woodstock city
aid penalty forgiveness

ARTICLE 6 - WORKFORCE HOUSING

Authorizing and
providing for a workforce housing tax credit for qualifying projects and areas
and specifying requirements and allowing economic development district
increments to be spent on projects; applying income limits for housing finance
agency (HFA) challenge program projects

ARTICLE 7 - MINERALS

Modifying
occupation tax appropriation to the mining environmental and regulatory account;
creating the energy efficiency and mining protection account; changing the date
for payment to the iron range resources and rehabilitation board (IRRRB);
requiring the IRRRB to hold certain amounts in a separate energy efficiency and
mining protection account; providing an exemption to the taconite economic
development fund division and distribution of proceeds for certain companies in
Itasca county and requiring deposit in the Douglas J. Johnson economic
protection trust fund; requiring distribution to certain additional St. Louis
county unorganized territories unless held by the county for public
infrastructure projects; extending the iron range school consolidation and
cooperatively operated school account distributions

ARTICLE 8 - ELECTRIC
GENERATION MACHINERY

Removing certain cross-reference; removing the personal
property tax on personal property that is part of an electric generation system,
excepting personal property of an electric generation system; providing electric
generation machinery valuation; requiring the local or county assessor to list
and assess electric light and power companies real property that is part of
electric generation systems; providing electric generation property transition
aid; repealing certain generation facility exemptions from personal property
tax

ARTICLE 9 - RAILROAD RECODIFICATION

Modifying provisions
applicability, definitions, annual report requirements, commissioner of revenue
powers, apportionment and equalization of valuation; providing a deduction for
nonoperating and exempt property; making technical changes; repealing nontaxable
property and failure to file a report

ARTICLE 10 - PUBLIC
FINANCE

Modifying education finance capital levies for building or land
leases, town board and Hennepin county certificates of indebtedness, cities
issuing capital notes for capital equipment, financing purchase of equipment,
housing development authority general obligation revenue bond issue for
corporate purposes, and municipal debt street reconstruction obligations and
bond sale requirements

ARTICLE 11 - SUSTAINABLE FOREST INCENTIVE ACT
MODIFICATIONS

Modifying the sustainable forest resource management incentive
purpose, definitions, eligibility requirements, applications, length of
covenant, incentive payment calculation, annual payment, withdrawal procedures,
penalties for removal, and determination of appeal; adding monitoring; providing
for transfer of ownership and a transition provision; repealing certain
definitions

ARTICLE 12 - MISCELLANEOUS

Increasing the budget reserve cash
flow account amount and budget reserve reporting; increasing the tax court small
claims division jurisdiction threshold amount; regulating dealer of gasoline
used as a substitute for aviation gasoline under petroleum and fuel tax
provisions; modifying the compressed natural gas tax rate; requiring a certain
amount of Minneapolis sales and use tax money deposited in the general fund to
be used to offset taxes paid by the NFL in connection with the Superbowl;
providing limits on railroad condemnation powers over certain governmental
property interests with regard to Hennepin county; authorizing local units of
government to finance, acquire, construct, and bond for broadband equipment and
allowing broadband joint powers boards; requiring border city enterprise zones
tax reductions allocations; modifying the Destination Medical Center public
infrastructure project to include planning, providing a restriction on city
funds to support the nonprofit economic development agency, and allowing tax
money to be used to pay other costs qualifying as a local match contribution;
modifying the apportionment method of estate taxes and generation-skipping tax;
appropriating money to the commissioners of natural resources (DNR) and revenue
for administration; repealing the requirement for new or renewed tax
expenditures

ARTICLE 13 - DEPARTMENT POLICY AND TECHNICAL PROVISIONS ???
INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES

Modifying tax filing
requirements for individual, fiduciary, and corporate income taxes, employer
withholding statement submission, exempt interest and exempt-interest dividends
reporting, and corporate federal taxable income additions; modifying the
corporate income tax and the long-term care insurance credit; authorizing the
commissioner to require rental property owners to furnish a copy of each
certificate of rent paid; clarifying qualified farm property treatment after a
death

ARTICLE 14 - DEPARTMENT POLICY AND TECHNICAL PROVISIONS ??? SPECIAL
TAXES AND SALES TAXES

Making technical and clarifying changes; modifying
gross receipts omission assessments and the revenue definition for aircraft
sales; defining bulk storage or bulk storage facility under fuel taxation;
modifying the definitions of motor fuel and petroleum products; imposing a
penalty on persons conducting prohibited gambling; requiring monthly tax returns
filing for gambling entities and restricting information disclosure

ARTICLE
15 - DEPARTMENT OF REVENUE TECHNICAL AND POLICY ??? PROPERTY TAX
PROVISIONS

Classifying state collected income property assessment data as
non-public private; modifying air commerce, flight property, person definitions,
wind energy conversion system reporting, utility company reports, petitions, and
appeals, board of appeal and county board appeal provisions, validity
determination, public entities conveyance, and conveyances; defining
intermittent or irregularly timed flights; allowing commissioner filed reports,
and board of equalization reassessment orders; making technical clarifying
changes; removing water, gas, crude oil, and petroleum from the personal
property tax; removing a taxable property estimated market value adjustment for
lead hazard reduction projects; requiring the entry of construction and
valuation data into local records; specifying local compliance; requiring local
government communication by electronic mail prior to receiving local government
aid (LGA); requiring certain department of natural resources (DNR)
certifications; exempting tax-forfeited land sales from adverse claims to real
property; allowing supplemental credit payments to lapse after a certain amount
of time; repealing agricultural property tax cross-compliance with agricultural
chemical and water laws and real estate tax sales and redemption county auditor
to give notice

ARTICLE 16 - DEPARTMENT POLICY AND TECHNICAL
PROVISIONS

Authorizing the commissioner of revenue to prescribe the content,
format, and manner of returns and forms; requiring tax court appeals to be
served and filed within a certain time frame; modifying revenue recapture for
medical care debt; allowing the commissioner to provide information to the
commissioner of human services for income verification; allowing the
commissioner to reissue replacement supplemental agricultural credit warrants;
clarifying administrative appeal; establishing a statute of limitation to assess
an administrative penalty against a tax return preparer for an improper return;
extending the time for which the name of a tax preparer may be posted by the
department; allowing a licensing authority to accept an individual tax
identification number; clarifying deed tax on school forest for a tax-forfeited
land conveyance
(rt)