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Capital IconMinnesota Legislature

Legislative Session number- 83

Bill Name: SF1505

E Relating to the organization, operation and financing of state + government;
modifying certain tax policy provisions ARTICLE 1 ? SALES TAXExpanding the
limited used vehicle license provision allowing motor +vehicle sales by
nonprofit charitable organizations without the requirement +to transfer title to
sales to licensed motor vehicle dealers; clarifying the +exemption from motor
vehicle certificate of title requirements for motor vehicles +owned by
manufacturers or dealers and used for demonstration or testing for +sales
purposes; providing a separate sales and use tax return filing date +for certain
sellers voluntarily registered in Minnesota under the streamlined +sales and
use tax agreement; eliminating the alternative filing time limit for +filing
sales and use tax overpayment claims for bad debt loss, defining bad +debt and
authorizing certified service providers file bad debt claims on +behalf of
clients; providing for purchaser requests to vendors for the refund +of taxes
collected in error; clarifying the definition of sale or purchase +relating to
computer software and including certain motor vehicle rentals in the definition;
defining or redefining certain terms for sales tax +imposition under the
streamlined sales and use tax agreement and placing a certain +restriction on
withdrawal from the agreement; providing for amnesty for seller +uncollected or
unpaid taxes under certain conditions and adopting certain +sourcing rules under
the agreement; specifying certain requirements for sourcing telecommunication
services; clarifying the sales tax exemption for +certain clothing accessories
or equipment and for certain equipment used in +the production of computer
software and providing an exemption for +certain service loaner vehicles; making
permanent the temporary exemption for direct +mail (printed materials) delivery
or distribution charges; modifying the +period for computation of interest on
refunds to purchasers; prescribing the +procedure for deducting uncollectible
debt; prohibiting local government units from+ imposing sales taxes at different
rates, exceptions; modifying the use of zip +codes in determining the location
of sale for local tax imposition purposes; +requiring and imposing a time limit
for certain notices relating to effective +dates for changes in local sales tax
rates; granting relief from incorrectly +collected sales tax liability for
sellers and certified service providers under+ certain erroneous data
conditions; providing an option to motor vehicle +dealers to pay the motor
vehicle sales tax on certain vehicles based on the +reasonable rental value of
the vehicle under certain conditions; authorizing and +providing for the city of
Newport to impose a local lodging tax to fund economic +development and
redevelopment in the city, limit; repealing the sales tax +exemption for used
farm tires ARTICLE 2 ? PROPERTY TAXEstablishing an alternative to the detachment
and annexation process +for residential property parcels located within the
boundaries of more +than one school district and classified as residential
property for education +funding purposes; clarifying the requirement for the
payment of personal +property taxes on manufactured homes before issuance of a
certificate of title for +transfer purposes; extending the deadlines for
construction of certain +proposed electric generation facilities using residue
wood or poultry litter biomass or hydroelectricity as fuel for personal property
tax exemption purposes+ and providing an exemption for certain combined cycle
combustion turbine +facilities constructed between certain dates; authorizing
the commissioner of +revenue to disclose to county assessors a listing of
parcels of property +qualifying for the homestead property tax classification
for the disabled; extending+ the property tax exemption for business incubator
property owned by +nonprofit charitable organizations; reducing the frequency
for appraisal of +real property subject to taxation; specifying certain
eligibility requirements +relating to ownership and active farming of
agricultural land for special +homestead treatment purposes; expanding and
extending eligibility for the +homestead classification for the permanently and
totally disabled and +eliminating to annual filing requirement; providing
homestead classification for +certain resorts owned by limited liability
companies; clarifying agricultural+ land classification eligibility for land
enrolled in the reinvest in +Minnesota (RIM) or conservation reserve programs
(CRP); requiring the commissioner to+ by a certain date develop a handbook of
procedures, responsibilities and requirements for local boards of appeal and
equalization; authorizing+ cities to permanently increase property tax levies to
levels exceeding charter +limits to replace local government aid (LGA)
reductions; modifying the time +limit for providing certain information to the
county assessor for hearing +petition filing purposes and providing for
extension of the time limit under +certain conditions; excluding from the
definition of claimant for property +tax refund purposes individuals with rent
constituting property taxes paid by +the group residential housing (GRH)
program; providing for the status of the +Cook county hospital district and for
annual adjustment for inflation of the +hospital district property tax levy AND
ESTATE TAX INITIATIVESModifying the estate tax return filing requirement,
requiring filing +by estates required to file a federal estate tax return;
authorizing the +commissioner of revenue to extend the filing time limit for the
returns; specifying +the liability of product or service vendors for repayment
to the +commissioner of income tax refunds for disallowed education credits;
specifying the +time limit for accrual of interest on estate tax overpayments
for interest +computation purposes; increasing the penalty for filing frivolous
returns; +modifying the addition to federal taxable income for individuals and
corporations +relating to the depreciation deduction and eliminating certain
subtractions for +individuals for income tax purposes; clarifying the
computation of income tax +liability for nonresidents; providing for inflation
adjustment of the working +family credit; eliminating the eligibility floor for
and clarifying the computation +of the marriage penalty credit; modifying
certain conditions for the +assignment of income tax refunds to financial
institutions or qualifying +organizations relating to education credit
certification; modifying the definition +of nontaxable retirement and disability
benefits and eliminating the +definition of social security benefits above the
second federal threshold under the subtraction for the elderly and disabled;
eliminating certain +pensions from the definition of Minnesota gross estate for
estate tax purposes and +modifying the tax computation formula; removing the
estate tax exemptions for +certain public employee pensions; eliminating the
sunset on assignment of income tax+ refunds resulting from the education credit;
repealing certain provisions +reducing the working family credit by the
abolished alternative minimum tax (AMT) +and providing for inflation adjustment
of the marriage penalty credit and+ certain obsolete or duplicative rules
relating to capital deductions and the +tentative carryback adjustment under the
franchise tax and the withholding tax+ for nonresidents ARTICLE 4 ? FEDERAL
UPDATEUpdating certain state income tax and property tax refund provisions +to
changes in the internal revenue code (IRC) and updating the definition of
+internal revenue code under tax administration and compliance provisionsARTICLE
5 ? DEPARTMENT PROPERTY TAX INITIATIVESClarifying the authority of the
commissioner of revenue to adopt +rules relating to nontax laws administered by
the commissioner; eliminating the +requirement for commissioner or local
government unit notice to taxpayers of +certain property valuation or assessment
appeal requirements; providing +property tax exemptions for property owned by
the comprehensive health association+ (MCHA), by private cemeteries and by the
western Lake Superior sanitary +board, for certain unfinished sale or rental
projects, for pedestrian skyway and+ people mover systems and publicly owned
parking structures and for municipal recreation and certain water and wastewater
treatment facilities; +modifying a certain requirement relating to the payment
of taxes before the +recording of conveyance documents by condominium,
townhouse, common interest +ownership community or other planned unit
development homeowners associations; eliminating the requirement for town and
city assessors to be +residents of the state and prohibiting city and county
assessors from holding certain +other offices; clarifying certain seasonal
residential recreational +property classification, valuation and taxation
provisions; eliminating a +certain provision requiring counties to spend a
certain additional amount +relating to temporary aid for court transfer costs
maintenance of effort +requirements purposes; modifying the date for
certification to the commissioner of+ revenue by the commissioner of human
services of average nonfederal out of +home placement costs for the homestead
and agricultural credit aid offset; clarifying a certain provision providing for
utility company appeal +of property classification, valuation or exemption and
expanding the provision to+ railroad companies; clarifying a certain high
voltage transmission line +qualification requirement for involved property power
line credit eligibility +purposes; prohibiting local boards of appeal and
equalization from granting +exemptions to or ordering property removed from the
property tax rolls; changing +the state general levy to the state general levy
base amount for commercial +industrial and seasonal residential recreational
property tax inflation +adjustment purposes; providing for commissioner of
revenue certification to +county auditors of preliminary state general levy
rates to be used to +prepare proposed property tax notices and requiring
certification of final rates to +county auditors by a certain later date to be
used in spreading taxes; +eliminating the state from property tax apportionment
provisions and specifying +certain responsibilities of county treasurers
relating to the receipt of +state property taxes; changing the place for filing
all lien notices for the +collection of delinquent personal property taxes to
the office of the secretary of +state; expanding the authority of county
auditors to sell certain unimproved tax-forfeited lands in cities or towns to
property consisting of an +undivided interest or land and improvements,
authorizing sale to adjacent +property owners for appraised value without first
offering the property to the +public; providing for the apportionment of
proceeds from tax-forfeited land +sales to taxing districts for payment of state
general tax levy delinquencies; clarifying the definition of claimant, changing
certain references +to property to land under and providing for continuation or
termination of the +enrollment of land in the sustainable forest resource
management incentive +program after death; specifying a deadline for and
requiring notice to the county +auditor of the adoption of a resolution
authorizing development authorities to +exercise the original tax rate option
relating to preexisting tax increment +financing (TIF) districts for tax payment
period continued effectiveness +purposes; removing the adjustment for
manufactured home property for +metropolitan revenue distribution net tax
capacity purposes; modifying certain property +tax payment requirements for the
filing of instruments under the common interest +ownership act; modifying or
clarifying certain effective dates for use deeds +for the conveyance of
tax-forfeited property to local government units +without cost and for certain
changes in the HACA offset for out of home placement +costs; clarifying the
pre-1940 housing percentage calculation for local +government aid (LGA) basis
purposes; repealing a certain provision relating to +obsolete auditor assessment
books, new construction low income housing aid and+ certain rules relating to
annual valuation of railroad operating propertyARTICLE 6 ? DEPARTMENT SALES AND
USE TAX INITIATIVESModifying certain conditions for the refund of erroneously
paid sales+ taxes to purchasers; clarifying the penalty for retailer failure to
report +local sales taxes on sales tax returns and imposing a penalty for
failure to +properly complete the returns; clarifying the application of the
sales tax to +certain services and the definition of farm machinery for sales
tax exemption+ purposes; expanding the definition of food sold through vending
machines for +sales tax application purposes to honor payments and clarifying
the taxability +of certain other vending machine items; modifying certain
exemption certificate requirements for burden of proof purposes; clarifying the
capital +equipment exemption for ready mix concrete equipment and defining
integrated +production process for manufacturing, mining, fabricating and
refining purposes;+ providing a transition period for the taxation of goods or
services under +preexisting bids or contracts; expanding the exemption for farm
machinery; +clarifying the taxation of noncollector vehicles, eliminating the
requirement for +the department of public safety to prepare and distribute an
above market+ list of automobiles; modifying the exemption qualification for
motor vehicles+ purchased by dealers; repealing a certain provision exempting
out of state +retailers from the requirement to collect locally imposed sales
taxes and certain +rules relating to exemptions, price discounts, reporting
requirements, the +assessment and collection time limit and unpaid liabilities
ARTICLE 7 ? DEPARTMENT SPECIAL TAXES INITIATIVESClarifying a certain provision
providing for enforcement of the +hazardous waste generator tax, penalties to be
the same as the penalties applicable +to the corporate franchise tax; excluding
certain community health services +and support programs from the definition of
patient services under the MinnesotaCare providers gross earnings tax; removing
the reference to+ locally licensed tobacco sellers from the definition of
unlicensed seller and clarifying the definition of wholesale price for cigarette
and +tobacco taxes imposition purposes; modifying the general tobacco products
use tax +exemption; clarifying the application of the penalties for failure to
file or +pay the cigarette and tobacco products tax and for false or fraudulent
+returns and modifying the application of the penalty for unstamped cigarettes;
+prohibiting the purchase of cigarettes or tobacco products from unlicensed
+sellers and modifying the application of the penalty for unlicensed purchases;
+expanding the definition of gross premiums to the workers compensation
+surcharge for insurance gross premium tax purposes and providing a gross
premium +tax offset for joint underwriting association assessments; specifying
certain +reference deletion instructions to the revisor of statutes; repealing
certain +general gross earnings tax provisions and certain rules providing for
the identification of service station pumps and containers for fuel tax
+purposes, the ethanol development fund and the road tax ARTICLE 8 ? DEPARTMENT
COLLECTIONS AND COMPLIANCE INITIATIVESPrescribing penalties for filing certain
documents including +nonconsensual common law liens against the commissioner of
revenue or department +employees; providing for the attachment of all tax liens
to proceeds from the +sale, lease, licensing, exchange or other disposition of
property, defining +proceeds of property; designating the Internet as a public
place for posting +information on the sale of certain seized property and
requiring and providing for +notice by the commissioner of the sale of seized
securities; expanding the +definitions of license and licensing authority for
tax clearance certificate +requirements purposes and the definition of claimant
agency to the Minnesota +collection enterprise under the revenue recapture act;
clarifying certain +provisions regulating tax payment liability, imposing
personal debt liability +for the overpayment of property tax refunds; granting
the commissioner access+ to records for examination of out of state businesses
for tax payment +liability purposes and imposing a penalty and specifying the
venue for +punishment of subpoena disobedience; expanding the authority of the
commissioner to+ cancel sales tax permits to permits subject to cancellation
after +revocation; repealing the expiration date for the requirement for the
+commissioner to publish the names of delinquent taxpayersARTICLE 9 ? CENTRAL
LAKES REGION SANITARY DISTRICTEstablishing the central lakes region sanitary
sewer district in +parts of the Douglas county towns of Carlos, Brandon, La
Grand, Leaf Valley, +Miltona and Moe to be under the control and management of
the central lakes sanitary +sewer board, specifying board membership
requirements and providing for +organization and operation, authorizing and
providing for appointment of a general+ manager; requiring and providing for the
board to adopt a comprehensive plan +for the collection, treatment and disposal
of sewage, specifying certain plan+ and public hearing requirements; specifying
certain local comprehensive +plan and sewage management program adoption
requirements, requiring review and+ approval by and coordination with the board;
requiring the board to assume +ownership of existing interceptors and treatment
works and providing for the +assumption of existing debt; terminating the
existing joint powers board and +authorizing and providing for the board to
terminate certain existing contracts +between local government units; granting
the board certain sewage collection and +disposal powers and specifying certain
budget preparation and adoption +requirements; providing for the allocation of
current costs to local government +units in the district and for local payments
to the board; specifying certain +local levy authority; requiring and providing
for public hearings on specific +projects and granting local units certain
special assessment authority; providing +for the payment of certain initial
costs; granting the board certain +obligations or certificates issuance and tax
levy authority; requiring and providing+ for board designation of depositories;
providing for certain funds and accounts+ and for the deposit or investment of
money; specifying certain general powers+ of the board; requiring local
government units to retain responsibility for +the planning, design,
acquisition, betterment, operation, administration +and maintenance of local
sanitary sewer facilities, providing for +assumption of responsibility by the
board under certain conditions; authorizing and+ providing for certain service
and construction contracts; providing for +expansion of the district; exempting
board property from taxation; providing for the +relation to existing
lawsARTICLE 10 ? TAX INCREMENT FINANCING Clarifying and modifying certain tax
increment financing provisions; +clarifying the definitions of bonds relating to
interfund loans, the definition +of municipality relating to county
jurisdiction and increment financing +relating to principal and interest
received on loans, correcting the +definition of redevelopment district relating
to the determination of substandard +buildings and defining qualified housing
district; clarifying the requirement +for TIF plans to include estimates of the
cost of the project, requiring +separate statement of the amount of
administrative expenses paid with +increments and with nonincrement revenues;
providing for the computation of present +values of projected tax increments for
city or county determination of the +increased market value of the site under
municipal plan approval procedures, +specifying certain statement of reasons and
supporting facts content +requirements of the city or county and defining site;
modifying certain requirements for modification of TIF plans and providing for
application of the +provision; eliminating the requirement to include the amount
budgeted under TIF +plans in authority annual financial reports and requiring
inclusion of +estimates contained in plans of project costs to be paid or
financed with tax +increment; modifying certain exceptions to the duration limit
for pre-1979 TIF +districts, specifying certain priorities for application of
increments from the +districts, requiring project or district decertification
upon payment in full or defeasement of obligations; requiring and providing for
authority +annual determination of district excess increments; clarifying the
limit on administrative expenses; defining revenues derived from tax +increments
paid by properties in the district for pooling restrictions purposes; +expanding
the five year rule to expenditures for housing purposes; eliminating the
requirement for the commissioner of revenue to approve the use of +increments
outside the district for deficits elimination purposes; clarifying +certain tax
increment computation provisions and the authority of the court to +abate damage
amounts for certain violations; imposing a statute of limitations on +legal
actions contesting the validity of determinations under TIF plan +adoption or
modification; authorizing resolutions authorizing interfund loans to +generally
grant authorities the power to make the loans under one or more TIF +plans or
for one or more districts and authorizing fluctuating maximum +interest rates;
clarifying the scope of the provision providing for special deficit +authority
of authorities with preexisting districts, modifying the definition +of
preexisting obligation and clarifying the fiscal disparities option +for
economic development districts, authorizing modification to offset a +deficit;
exempting uncollected abatement levies from a prior year added to the+ abatement
levy from the levy limit on abatements and authorizing local +government units
to add certain previously uncollected property tax abatement levies +to
abatement levies for the current year; modifying the effective dates +for a
certain prior definition of tax increment and for a certain provision+ allowing
transfers of increments to pay deficits in certain guaranteed bonds; permanently
extending the authority of the city of Moorhead to impose+ a special levy on
certain property to pay preexisting obligations issued to +alleviate a deficit
in a certain TIF district and limiting the use of increments +to paying
preexisting obligations and administrative expenses; authorizing the +city of
Hopkins to extend the duration of a certain redevelopment TIF +district,
providing a five year rule exemption for the districtARTICLE 11 ? MINERALS
TAXESModifying certain provisions governing the taconite tax and the
+distribution of revenues from the tax; redefining municipality, eliminating the
+definition of tax relief area and defining taconite assistance area for
property+ tax and taconite supplemental aid eligibility purposes; authorizing
the +commissioner of iron range resources and rehabilitation to apply for and
spend +federal grant and loan money; making permanent the requirement to pay the
taconite +production tax in installments; eliminating the inflation adjustment
for school +district distributions; restricting certain interest limits on loans
from the +northeast Minnesota economic protection trust fund to loans to private
+enterprises and expanding the temporary loan authority of the IRRRB; providing
for redistribution of money remaining in the taconite environmental fund+ upon
sale of taconite production facilities after cessation of operations;
+instructing the revisor of statutes to change the northeast Minnesota economic
+protection trust fund to the Douglas J. Johnson economic protection trust fund
+in the statutes; repealing an obsolete credit against the taconite +production
tax for paid school district bonds ARTICLE 12 ? PUBLIC FINANCEAuthorizing and
providing for the state agricultural society to +temporarily issue revenue bonds
for activities funding purposes, limit, +authorizing issuance to refund
outstanding bonds, requiring approval of the +commissioner of finance; expanding
the authority of county boards and home rule +charter cities to issue capital
notes for the purchase of capital equipment to +computer hardware and software,
sunsetting the authority to issue notes for +software; expanding the definition
of county debt obligation for building debt recognition purposes to bonds
payable from lease obligations and the +authority to issue capital improvement
bonds or notes to finance the cost of +designing, constructing and acquiring
statewide public safety radio +communication system infrastructure and equipment
to all counties; authorizing counties +not establishing county hospitals or
nursing homes to by resolution +authorize cities to establish the hospitals or
nursing homes and to use certain+ surplus funds to acquire nursing homes;
establishing and providing for a city+ capital improvement bond program;
authorizing Koochiching county to establish+ a port authority and local
government units in the county to apply to the +federal government for foreign
trade zone powers for use within or outside +port districts; increasing the
limit on property tax abatements; +authorizing the metropolitan council to issue
certificates of indebtedness, bonds or +other obligations for metropolitan area
transit capital expenditures under +the regional transit master plan and transit
capital improvement program,+ limit; expanding the use of revenue bonds issued
by the metropolitan council+ for public safety radio systems to include making
improvements to +existing 800 MHz radio systems capable of interoperating with
the system; restricting entitlement issuers from applying for bond allocations
from the +housing pool, requiring issuance or return of carryover allocations
from prior +years; authorizing the issuance of street reconstruction bonds for
utility +replacement and relocation and other activities incidental to the
reconstruction,+ excluding widening the street or adding curbs and gutters;
increasing the +dollar amount allowed to be spent by Beltrami county for
promotion of tourist, +agricultural and industrial developments; validating
bonds issued by Anoka county +for public safety radio improvements without
meeting certain prior review and +approval requirements; authorizing and
providing for the city of Buffalo to +issue general obligation bonds to pay for
the city share of costs of +reconstructing and upgrading trunk highway #55,
excluding the bond levy from local +government aid (LGA) calculation; clarifying
the corporate status of the Lewis +and Clark Rural Water System, Inc. relating
to the issuance of obligations for +federal income tax law purposes; authorizing
Itasca county to issue bonds to +finance the construction of a nursing home
facility to replace an existing +private facility in the county; validating the
approval of a resolution +adopted by the board of directors of local government
information systems (LOGIS) +and providing for the application of obligations
issued after a certain +date; authorizing Kandiyohi county to exercise the
powers of a city to +establish an economic development authority (EDA) without
voter approval and to +enter into a joint powers agreement with the city of
Willmar to exercise powers +common to both the county and the city, designating
the joint powers entity as +a special taxing district for property tax levy
authority purposes; authorizing+ and providing for the city of Minneapolis to
establish by ordinance a +community planning and economic development (CPED)
department; establishing the+ lakes area economic development authority to be
governed by a board of +commissioners and granting the EDA certain powers
ARTICLE 13 ? MOSQUITO CONTROL DISTRICT Modifying certain provisions regulating
the metropolitan mosquito +control district; extending the authority of the
district to spray +pesticides, specifying certain conditions; expanding the area
of the district and increasing the membership of the commission, providing for
inclusion +of all of Carver county; expanding the authority of the commission to
enter +private property; modifying certain contract requirements and subjecting
+contracts to the uniform municipal contracting law; prohibiting the payment of
per+ diems to commissioners and making expense reimbursements optional;
providing +for services to the additional part of Carver county until the
+availability of levy proceeds; repealing an obsolete homestead and agricultural
credit aid+ (HACA) adjustment for the district ARTICLE 14 ?
MISCELLANEOUSModifying the authority of the attorney general to compromise tax
+debts and granting the commissioner of revenue certain compromise authority
+based on the amount of reduction; authorizing the commissioner to accept
payments +of court fines designated for tax law enforcement; extending the
carryover of +the franchise tax credit for job creation by corporations leasing
and +operating heavy maintenance bases for aircraft owned by the state or local
+government units or engine repair facilities (Northwest airlines), requiring
the commissioner to refund unused portions to the taxpayer at the end of +the
carryover period, bankruptcy filing exception; eliminating the +cigarette stamp
discount for distributors and excise tax payers; requiring payment of+ the
cigarette tax required in other states for cigarette transport and +sale
purposes; imposing a fee on cigarette manufacturers not entering a +settlement
agreement with the state to be collected by the commissioner to +further the
policy of discouraging smoking by minors; clarifying the exemption of+ county
solid waste management services from the solid waste management tax; +defining
borrow for aggregate material (gravel) tax purposes; advancing the +effective
date of border city development zone designations; eliminating +certain obsolete
appropriation language relating to department of revenue compliance +programs;
requiring and providing for the commissioner to establish an advance +collection
program to collect otherwise uncollectible tax, interest and penalty
obligations; authorizing the Duluth economic development authority to+ create an
economic development tax increment financing (TIF) district for +aircraft
related facilities subject to certain rules and limits; repealing a +certain
provision granting an aggregate material tax exception for Benton and+ Stearns
counties(je, ja)