Legislative Session number- 82

Bill Name: SF2233

Relating to taxationARTICLE 1 REBATEModifying the automatic rebate mechanism;
extending the biennial deadline for legislative action on the rebate plan
presented to the governor by the commissioner of finance, requiring and
providing for the commissioner of revenue to pay the rebate upon failure of
legislature to act by the deadline; providing for a sales tax rebate payable in
2001 based on sales taxes paid by individuals in 1999 using information
contained in the Minnesota tax incidence report; specifying taxpayer eligibility
and prescribing the schedules for taxpayers filing jointly or separately,
providing eligibility for certain additional state residents and nonresidents
and defining income; requiring certain commissioner of revenue rebate
adjustments, prohibiting adjustments after rebate processing; setting the
maximum total rebate amount; requiring rebates not paid by a certain date to
bear interest; providing for receipt of rebates by estates of deceased
individuals after closing of the probate estates; including the rebate under the
definition of Minnesota tax law for data disclosure purposes and in the
definition of overpayment for delinquent tax liability purposes and subjecting
the rebate to revenue recapture; taxpayer right to the rebate to expire after a
certain date; granting the commissioner certain enforcement authority relating
to forged or improperly endorsed checks and to overstated or erroneously issued
rebates; authorizing the commissioner to take whatever action necessary to pay
the rebates; authorizing payment by electronic funds transfer to certain
individuals; appropriating money to the commissioner for rebates administration
purposes and to the state treasurer for the cost of clearing sales tax rebate
checks through commercial banks ARTICLE 2 INDIVIDUAL INCOME TAX Reducing
individual income tax rates; increasing the working family credit; reducing the
alternative minimum tax (AMT) rate; reducing certain withholding tax rates for
irregular period payments, payments to horse racing license holders and lottery
winnings ARTICLE 3 - FEDERAL UPDATEUpdating certain state income tax provisions
to changes in the internal revenue code (IRC) under the consolidated
appropriation act of 2001, the installment tax correction act of 2000 and the
FSC repeal and extraterritorial income exclusion act of 2000; updating the
definition of internal revenue code for property tax refund and estate tax
purposes ARTICLE 4 - PROPERTY TAX REFORMDefining certain terms for school
district funding purposes and requiring certain levy adjustments by the
commissioner of children, families and learning in consultation with the
commissioner of revenue; reducing the general education tax rate and levy amount
to zero and modifying the formulas for general education aid and referendum
equalization revenue, levy and aid; modifying the determination of the
unequalized referendum levy and changing referendum tax rate percentage to
referendum tax mill rate; changing market value to residential assessed value
for referendum levy purposes and net tax capacity to assessed value for certain
assessment or adjustment purposes; modifying the property tax exemption for
institutions of public charity and expanding the exemption for personal property
used for pollution control; authorizing the commissioner of revenue to approve
county assessor appointments on a probationary basis; extending the time limit
for county commissioners to fill county assessor vacancies and clarifying the
authority of the commissioners to terminate county assessor terms; authorizing
county assessors to require the attendance of licensed assessors working in the
county at department of revenue instructional meetings; specifying certain
training and education requirements for property tax personnel; modifying
certain limited market value determination procedures and valuation notice
requirements; defining assessed value for property tax classification purposes;
increasing the market value limits for the first tier of residential and
agricultural homestead, commercial and industrial and certain nonhomestead
residential property and reducing the classification rates for homestead,
seasonal residential recreational, commercial and industrial, rental (apartment)
and mining property; requiring and providing for commissioner of revenue annual
inflation adjustment of certain valuation limits; providing for residential and
agricultural homestead market value credits, specifying certain duties of county
auditors and the commissioner; modifying the determination of household
adjustment factor for homestead and agricultural credit aid (HACA) purposes,
permanently reducing the aid to counties and eliminating the aid to cities,
towns and school and special taxing districts; imposing a state tax on
transmission and distribution lines; changing local boards of review or
equalization to boards of appeal and equalization and eliminating certain county
informational meeting requirements relating to the valuation of noncommercial
seasonal residential recreational property; requiring the commissioner to
prescribe the factors and methodology for use by county auditors for conversion
of net tax capacity rate levy limit; modifying the application of the state tax
levy, providing for computation of the tax rate by the commissioner and
requiring commissioner certification of the rate in lieu of the state auditor;
modifying certain proposed property tax notice and hearing (truth in taxation)
requirements; modifying certain rate computation and tax list preparation duties
of county auditors; authorizing and providing for city imposition of
transportation utility fees; modifying certain property tax statement content
requirements; excluding the general education tax rate from the local tax rate
for tax levy apportionment purposes; modifying certain tax-forfeited land
conveyance authority of the commissioner and the apportionment of proceeds from
sales or rentals of tax-forfeited land; modifying the property tax refund
schedules for homeowners and renters and the inflation adjustment requirement;
establishing a sustainable forest property tax refund program, specifying
property eligibility requirements and prescribing the application procedure,
specifying certain covenant requirements, requiring county assessor submission
to commissioner of classified parcels, requiring annual certification of
continued land eligibility by landowners to the commissioner of revenue,
requiring removal of the land from the program for failure to comply, entitling
owners of land enrolled in the program to an annual refund, requiring
commissioner removal of property from program for property tax delinquency,
providing for landowner termination of enrollment and for appeal of decisions by
the commissioner to remove nonqualifying land from the program, imposing certain
penalties on owners of removed land; modifying certain tax increment pooling and
computation provisions; providing for school district general education levy
abatements; modifying the metropolitan council transit tax levy limit; modifying
the definitions of population and city revenue need and defining population
sprawl factor, density factor, tax capacity and city aid base for local
government aid purposes; modifying the LGA distribution formulas for towns and
cities and the payment dates and providing or modifying certain appropriations;
requiring and providing for commissioner grants for deficits in TIF districts
caused by changes in property tax classification rates and the elimination of
the state determined general education property tax levy; specifying certain
phrase replacement instructions to the revisor of statutes; repealing the
general education tax rate establishment requirement of the commissioner, the
expiration of school district referendum levy authority, the definitions of
gross and net tax capacity, transit zone properties personal property tax, the
education homestead and agricultural credits, a certain tax rate increase
provision, attached machinery aid, the reduction in state TIF aid, certain LGA
definitions, a certain provision providing for additional money for city LGA,
the definition of constant spending levy amount for proposed property tax notice
purposes, certain tax forfeited land conveyance and reversion provisions and the
Minnesota tree growth tax lawARTICLE 5 CORPORATE FRANCHISE TAX REFORMDefining
insurance company for franchise tax purposes and exempting insurance companies
with a gross premium tax liability from the tax; modifying the net income
apportionment formula and providing an apportionment formula for
telecommunications service providers; repealing the apportionment formula for
certain mail order businesses ARTICLE 6 SALES TAXExpanding the sales tax on
services and providing a direct exemption for capital equipmentARTICLE 7 HEALTH
CARE PROVIDER TAXReducing the gross earnings tax on hospitals, surgical centers
and health care providers and wholesale drug distributors (ra)