1.1 	A bill for an act
1.2 	relating to financing and operation of state and local government; providing 
1.3 	conformity and nonconformity to certain federal tax law changes; modifying 
1.4 	individual income and corporate franchise taxes, estate taxes, sales and use taxes, 
1.5 	special and excise taxes, property taxes, local government aids, provisions related 
1.6 	to local taxes, tax increment financing, and public finance, and other miscellaneous 
1.7 	taxes and tax provisions; modifying indexing provisions; changing the starting 
1.8 	point for state individual income tax calculation from federal taxable income to 
1.9 	federal adjusted gross income; providing for various individual and corporate 
1.10 	additions and subtractions to income; modifying certain allowances and adjustments 
1.11 	to income; modifying individual income tax brackets; modifying certain income 
1.12 	tax credits; modifying and allowing certain exemptions from sales and use taxes; 
1.13 	establishing property tax exemptions; modifying agricultural homestead provisions; 
1.14 	modifying state general levy; modifying expiration and termination of agricultural 
1.15 	preserves; allowing certain refunds for disabled veterans; modifying certain 
1.16 	deadlines; modifying referendum equalization levy; phasing out school building 
1.17 	bond agricultural credit; modifying aid and providing grants to cities and counties; 
1.18 	modifying approval requirements for certain local sales taxes; modifying and 
1.19 	authorizing certain local sales taxes; requiring reports; appropriating money;
1.20 	amending Minnesota Statutes 2018, sections 6.495, subdivision 3; 37.31, 
1.21 	subdivision 1; 38.27, by adding a subdivision; 103D.905, subdivisions 5, 9; 
1.22 	103E.611, subdivision 2; 116J.8737, subdivisions 1, 2, 3, 4, 5, 6, 12; 123B.595, 
1.23 	subdivision 5; 126C.17, subdivision 6; 138.053; 144E.42, subdivision 2; 162.145, 
1.24 	subdivision 3; 197.603, subdivision 2; 256J.02, subdivision 2; 270A.03, subdivision 
1.25 	5; 270B.08, subdivision 2; 270C.57; 270C.85, subdivision 2; 270C.89, subdivisions 
1.26 	1, 2; 270C.91; 272.02, subdivisions 27, 49, 81, by adding subdivisions; 272.115, 
1.27 	subdivision 1; 273.032; 273.061, subdivision 9; 273.0755; 273.113, subdivision 
1.28 	3; 273.119, subdivision 2; 273.1231, subdivision 3; 273.124, subdivisions 3a, 8, 
1.29 	13, 14, 21, by adding a subdivision; 273.1245, subdivision 2; 273.13, subdivisions 
1.30 	22, 23, 34; 273.136, subdivision 2; 273.1384, subdivisions 2, 3; 273.1387, 
1.31 	subdivisions 2, 3; 273.18; 273.371, subdivision 1; 273.3711; 274.14; 274.16; 
1.32 	275.025, subdivision 1, by adding a subdivision; 276.131; 282.01, subdivision 6; 
1.33 	287.21, subdivision 1; 289A.08, subdivisions 1, 6, 7; 289A.20, subdivision 4; 
1.34 	289A.25, subdivision 1; 289A.31, subdivision 2; 289A.37, subdivision 6; 289A.38, 
1.35 	subdivision 7; 289A.60, subdivision 15; 290.01, subdivisions 4a, 29a, 31, by adding 
1.36 	subdivisions; 290.0131, subdivisions 1, 3, by adding subdivisions; 290.0132, 
1.37 	subdivisions 1, 7, 19, 20, 26, by adding subdivisions; 290.0133, subdivision 6; 
1.38 	290.0134, by adding subdivisions; 290.0137; 290.032, subdivision 2; 290.05, 
2.1 	subdivisions 1, 3; 290.06, subdivisions 2c, 2d, 2h; 290.067, subdivision 2b; 
2.2 	290.0671, subdivisions 1, 6, 7; 290.0672, subdivision 2; 290.0675, subdivision 1; 
2.3 	290.0681, subdivisions 1, 2, 3, 4; 290.0684, subdivision 2; 290.0802, subdivisions 
2.4 	2, 3; 290.091, subdivisions 2, 3; 290.0921, subdivisions 2, 3; 290.0922, subdivision 
2.5 	1; 290.095, subdivision 2; 290.17, subdivision 4; 290.191, subdivision 5; 290.21, 
2.6 	subdivision 4, by adding a subdivision; 290.34, by adding a subdivision; 290.92, 
2.7 	subdivisions 1, 5, 28; 290A.03, subdivisions 3, 4, 8, 12, 13; 290A.04, subdivision 
2.8 	4; 290A.05; 290A.08; 290A.09; 290B.04, subdivision 1; 290B.09, subdivision 1; 
2.9 	291.03, subdivisions 9, 10; 295.50, subdivisions 3, 4, 9b, 14, 15, by adding 
2.10 	subdivisions; 295.51, subdivision 1a; 295.52, subdivisions 1, 1a, 2, 3, 4, 8; 295.53, 
2.11 	subdivision 1; 295.57, subdivisions 3, 5; 295.582, subdivision 1; 296A.03, 
2.12 	subdivision 2; 296A.04, by adding a subdivision; 296A.05, by adding a subdivision; 
2.13 	296A.06; 297A.61, subdivision 18; 297A.66, subdivisions 1, 2, 3; 297A.67, 
2.14 	subdivisions 6, 12, by adding a subdivision; 297A.68, subdivisions 17, 25, 42, 44; 
2.15 	297A.70, subdivisions 3, 4, 10, 16, 20, by adding a subdivision; 297A.71, 
2.16 	subdivisions 22, 45, 50, by adding subdivisions; 297A.75, subdivisions 1, 2; 
2.17 	297A.77, by adding a subdivision; 297A.84; 297A.85; 297A.99, subdivisions 1, 
2.18 	2, 3, by adding a subdivision; 297A.993, subdivisions 1, 2, by adding a subdivision; 
2.19 	297B.01, subdivisions 14, 16; 297B.03; 297F.01, subdivisions 19, 23, by adding 
2.20 	a subdivision; 297F.08, subdivisions 8, 9; 297F.09, subdivision 10; 297G.09, 
2.21 	subdivision 9; 297I.20, subdivision 3; 298.018, subdivision 1, by adding a 
2.22 	subdivision; 298.225, subdivision 1; 298.28, subdivisions 3, 11; 298.282, 
2.23 	subdivision 1; 353.27, subdivision 3c; 353.505; 353G.01, subdivision 9; 353G.05, 
2.24 	subdivision 2; 353G.08, subdivisions 1, 1a; 353G.17, subdivision 2; 356.20, 
2.25 	subdivision 4a; 356.219, subdivision 8; 423A.02, subdivisions 1b, 3; 423A.022, 
2.26 	subdivisions 2, 4; 424A.016, subdivisions 2, 4; 424A.02, subdivisions 1, 3a, 10; 
2.27 	424A.03, subdivision 2; 424A.05, subdivisions 2, 3, by adding a subdivision; 
2.28 	424A.07; 424A.091, subdivision 3; 424A.092, subdivisions 3, 4; 424A.093, 
2.29 	subdivision 5; 424B.09; 462D.03, subdivision 2; 469.169, by adding a subdivision; 
2.30 	469.171, subdivision 4; 469.177, subdivision 1; 469.316, subdivision 1; 471.831; 
2.31 	473H.08, subdivisions 1, 4, by adding a subdivision; 473H.09, by adding a 
2.32 	subdivision; 474A.02, subdivision 22b; 475.521, subdivision 1; 477A.013, 
2.33 	subdivision 9; 477A.03, subdivisions 2a, 2b; Minnesota Statutes 2019 Supplement, 
2.34 	sections 289A.02, subdivision 7; 289A.12, subdivision 14; 289A.35; 290.01, 
2.35 	subdivision 19; 290.0132, subdivision 21; 290.0672, subdivision 1; 290.0684, 
2.36 	subdivision 1; 290.091, subdivision 2; 290.17, subdivision 2; 290A.03, subdivision 
2.37 	15; 291.005, subdivision 1; 462D.06, subdivisions 1, 2; Laws 1980, chapter 511, 
2.38 	section 1, subdivision 1; Laws 1986, chapter 396, section 5, as amended; Laws 
2.39 	1986, chapter 462, section 31, as amended; Laws 1994, chapter 587, article 9, 
2.40 	section 11; Laws 1998, chapter 389, article 8, section 45, subdivisions 1, 3, as 
2.41 	amended, 4, 5; Laws 2003, chapter 127, article 10, section 31, subdivision 1, as 
2.42 	amended; Laws 2003, First Special Session chapter 14, article 13C, section 2, 
2.43 	subdivision 6, as amended; Laws 2008, chapter 366, article 5, sections 26, as 
2.44 	amended; 33, as amended; Laws 2009, chapter 88, article 2, section 46, subdivisions 
2.45 	1, as amended, 2, 3, as amended, 4, 5; Laws 2009, chapter 122, section 3, 
2.46 	subdivisions 1, 2; Laws 2011, First Special Session chapter 7, article 4, section 
2.47 	10, subdivision 3; Laws 2014, chapter 308, article 6, section 8, subdivision 1, as 
2.48 	amended; Laws 2017, First Special Session chapter 1, article 3, section 32; article 
2.49 	8, section 3; article 10, section 4; Laws 2018, chapter 211, article 14, section 26; 
2.50 	proposing coding for new law in Minnesota Statutes, chapters 16A; 270B; 270C; 
2.51 	290; 297I; 424A; 469; proposing coding for new law as Minnesota Statutes, 
2.52 	chapters 477B; 477C; repealing Minnesota Statutes 2018, sections 37.31, 
2.53 	subdivision 8; 69.011, subdivisions 1, 2, 2b, 2c, 3, 4; 69.021, subdivisions 1, 2, 3, 
2.54 	4, 5, 7, 7a, 8, 9, 10, 11; 69.022; 69.031, subdivisions 1, 3, 5; 69.041; 69.051, 
2.55 	subdivisions 1, 1a, 1b, 2, 3, 4; 69.33; 69.80; 270C.131; 275.29; 290.0131, 
2.56 	subdivisions 7, 11, 12, 13; 290.0132, subdivision 8; 290.0133, subdivisions 13, 
2.57 	14; 290.0671, subdivision 6a; 290.10, subdivision 2; 296A.03, subdivision 5; 
2.58 	296A.04, subdivision 2; 296A.05, subdivision 2; 297A.66, subdivision 4b; 297F.08, 
3.1 	subdivision 5; 297I.25, subdivision 2; Laws 2011, First Special Session chapter 
3.2 	9, article 6, section 97, subdivision 6; Minnesota Rules, part 8125.0410, subpart 
3.3 	1.
3.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

3.5 	ARTICLE 1
3.6 	FEDERAL CONFORMITY

3.7 	Section 1. Minnesota Statutes 2018, section 270A.03, subdivision 5, is amended to read:
3.8 		Subd. 5.Debt; debtor. (a) "Debt" means a legal obligation of a natural person to pay a 
3.9 	fixed and certain amount of money, which equals or exceeds $25 and which is due and 
3.10 	payable to a claimant agency. The term includes criminal fines imposed under section 609.10
3.11 	or 609.125, fines imposed for petty misdemeanors as defined in section 609.02, subdivision 
3.12 	4a, and restitution. A debt may arise under a contractual or statutory obligation, a court 
3.13 	order, or other legal obligation, but need not have been reduced to judgment.
3.14 	A debt includes any legal obligation of a current recipient of assistance which is based 
3.15 	on overpayment of an assistance grant where that payment is based on a client waiver or 
3.16 	an administrative or judicial finding of an intentional program violation; or where the debt 
3.17 	is owed to a program wherein the debtor is not a client at the time notification is provided 
3.18 	to initiate recovery under this chapter and the debtor is not a current recipient of food support, 
3.19 	transitional child care, or transitional medical assistance.
3.20 	(b) A debt does not include any legal obligation to pay a claimant agency for medical 
3.21 	care, including hospitalization if the income of the debtor at the time when the medical care 
3.22 	was rendered does not exceed the following amount:
3.23 	(1) for an unmarried debtor, an income of $12,560 or less;
3.24 	(2) for a debtor with one dependent, an income of $16,080 or less;
3.25 	(3) for a debtor with two dependents, an income of $19,020 or less;
3.26 	(4) for a debtor with three dependents, an income of $21,580 or less;
3.27 	(5) for a debtor with four dependents, an income of $22,760 or less; and
3.28 	(6) for a debtor with five or more dependents, an income of $23,730 or less.
3.29 	For purposes of this paragraph, "debtor" means the individual whose income, together 
3.30 	with the income of the individual's spouse, other than a separated spouse, brings the 
3.31 	individual within the income provisions of this paragraph. For purposes of this paragraph, 
3.32 	a spouse, other than a separated spouse, shall be considered a dependent.
4.1 	(c) The commissioner shall annually adjust the income amounts in paragraph (b) by the 
4.2 	percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue 
4.3 	Code, except that in section 1(f)(3)(B) the word "2014" shall be substituted for the word 
4.4 	"1992." For 2016, the commissioner shall then determine the percent change from the 12 
4.5 	months ending on August 31, 2014, to the 12 months ending on August 31, 2015, and in 
4.6 	each subsequent year, from the 12 months ending on August 31, 2014, to the 12 months 
4.7 	ending on August 31 of the year preceding the taxable year. The determination of the 
4.8 	commissioner pursuant to this subdivision shall not be considered a "rule" and shall not be 
4.9 	subject to the Administrative Procedure Act contained in chapter 14. The income amount 
4.10 	as adjusted must be rounded to the nearest $10 amount. If the amount ends in $5, the amount 
4.11 	is rounded up to the nearest $10 amount as provided in section 270C.22. The statutory year 
4.12 	is taxable year 2019.
4.13 	(d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of the 
4.14 	dollar amount of the premium authorized under section 256L.15, subdivision 1a.

4.15 	EFFECTIVE DATE. This section is effective for adjustments beginning with taxable 
4.16 	years beginning after December 31, 2019.

4.17 	Sec. 2. [270C.22] COST OF LIVING ADJUSTMENT.
4.18 		Subdivision 1.Adjustment; definition; period; rounding. (a) The commissioner shall 
4.19 	annually make a cost of living adjustment to the dollar amounts noted in sections that 
4.20 	reference this section. The commissioner shall adjust the amounts based on the index as 
4.21 	provided in this section. For purposes of this section, "index" means the Chained Consumer 
4.22 	Price Index for All Urban Consumers published by the Bureau of Labor Statistics. The 
4.23 	values of the index used to determine the adjustments under this section are the latest 
4.24 	published values when the Bureau of Labor Statistics publishes the initial value of the index 
4.25 	for August of the year preceding the year to which the adjustment applies.
4.26 	(b) For the purposes of this section, "statutory year" means the year preceding the first 
4.27 	year for which dollar amounts are to be adjusted for inflation under sections that reference 
4.28 	this section. For adjustments under chapter 290A, the statutory year refers to the year in 
4.29 	which a taxpayer's household income used to calculate refunds under chapter 290A was 
4.30 	earned and not the year in which refunds are payable. For all other adjustments, the statutory 
4.31 	year refers to the taxable year unless otherwise specified.
4.32 	(c) To determine the dollar amounts for taxable year 2020, the commissioner shall 
4.33 	determine the percentage change in the index for the 12-month period ending on August 
4.34 	31, 2019, and increase each of the unrounded dollar amounts in the sections referencing 
5.1 	this section by that percentage change. For each subsequent taxable year, the commissioner 
5.2 	shall increase the dollar amounts by the percentage change in the index from August 31 of 
5.3 	the year preceding the statutory year to August 31 of the year preceding the taxable year.
5.4 	(d) To determine the dollar amounts for refunds payable in 2020 under chapter 290A, 
5.5 	the commissioner shall determine the percentage change in the index for the 12-month 
5.6 	period ending on August 31, 2019, and increase each of the unrounded dollar amounts in 
5.7 	the sections referencing this section by that percentage change. For each subsequent year, 
5.8 	the commissioner shall increase the dollar amounts by the percentage change in the index 
5.9 	from August 31 of the year preceding the statutory year to August 31 of the year preceding 
5.10 	the year in which refunds are payable.
5.11 	(e) Unless otherwise provided, the commissioner shall round the amounts as adjusted 
5.12 	to the nearest $10 amount. If an amount ends in $5, the amount is rounded up to the nearest 
5.13 	$10 amount.
5.14 		Subd. 2.Publication. The commissioner shall announce and publish the adjusted dollar 
5.15 	amounts required by subdivision 1 on the Department of Revenue's website on or before 
5.16 	December 15 of each year.
5.17 		Subd. 3.Special provision. The determination of the commissioner under this subdivision 
5.18 	is not a rule and is not subject to the Administrative Procedure Act under chapter 14, 
5.19 	including section 14.386.

5.20 	EFFECTIVE DATE. This section is effective for adjustments beginning with taxable 
5.21 	years beginning after December 31, 2019, calendar years beginning after December 31, 
5.22 	2019, and for refunds based on rent paid in 2019 and property taxes payable in 2020.

5.23 	Sec. 3. Minnesota Statutes 2018, section 289A.02, subdivision 7, is amended to read:
5.24 		Subd. 7.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
5.25 	Revenue Code" means the Internal Revenue Code of 1986, as amended through December 
5.26 	16, 2016 December 31, 2018.

5.27 	EFFECTIVE DATE. This section is effective the day following final enactment except 
5.28 	the changes incorporated by federal changes are effective retroactively at the same time the 
5.29 	changes became effective for federal purposes.

6.1 	Sec. 4. Minnesota Statutes 2018, section 289A.08, subdivision 1, is amended to read:
6.2 		Subdivision 1.Generally; individuals. (a) A taxpayer must file a return for each taxable 
6.3 	year the taxpayer is required to file a return under section 6012 of the Internal Revenue 
6.4 	Code or meets the requirements under paragraph (d) to file a return, except that:
6.5 	(1) an individual who is not a Minnesota resident for any part of the year is not required 
6.6 	to file a Minnesota income tax return if the individual's gross income derived from Minnesota 
6.7 	sources as determined under sections 290.081, paragraph (a), and 290.17, is less than the 
6.8 	filing requirements for a single individual who is a full year resident of Minnesota; and
6.9 	(2) an individual who is a Minnesota resident is not required to file a Minnesota income 
6.10 	tax return if the individual's gross income derived from Minnesota sources as determined 
6.11 	under section 290.17, less the subtractions allowed under section 290.0132, subdivisions 
6.12 	12 and 15, is less than the filing requirements for a single individual who is a full-year 
6.13 	resident of Minnesota.
6.14 	(b) The decedent's final income tax return, and other income tax returns for prior years 
6.15 	where the decedent had gross income in excess of the minimum amount at which an 
6.16 	individual is required to file and did not file, must be filed by the decedent's personal 
6.17 	representative, if any. If there is no personal representative, the return or returns must be 
6.18 	filed by the transferees, as defined in section 270C.58, subdivision 3, who receive property 
6.19 	of the decedent.
6.20 	(c) The term "gross income," as it is used in this section, has the same meaning given it 
6.21 	in section 290.01, subdivision 20.
6.22 	(d) The commissioner of revenue must annually determine the gross income levels at 
6.23 	which individuals are required to file a return for each taxable year based on the amounts 
6.24 	allowed as a deduction under section 290.0123.

6.25 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
6.26 	31, 2018.

6.27 	Sec. 5. Minnesota Statutes 2018, section 289A.08, subdivision 7, is amended to read:
6.28 		Subd. 7.Composite income tax returns for nonresident partners, shareholders, and 
6.29 	beneficiaries. (a) The commissioner may allow a partnership with nonresident partners to 
6.30 	file a composite return and to pay the tax on behalf of nonresident partners who have no 
6.31 	other Minnesota source income. This composite return must include the names, addresses, 
6.32 	Social Security numbers, income allocation, and tax liability for the nonresident partners 
6.33 	electing to be covered by the composite return.
7.1 	(b) The computation of a partner's tax liability must be determined by multiplying the 
7.2 	income allocated to that partner by the highest rate used to determine the tax liability for 
7.3 	individuals under section 290.06, subdivision 2c. Nonbusiness deductions, standard 
7.4 	deductions, or personal exemptions are not allowed.
7.5 	(c) The partnership must submit a request to use this composite return filing method for 
7.6 	nonresident partners. The requesting partnership must file a composite return in the form 
7.7 	prescribed by the commissioner of revenue. The filing of a composite return is considered 
7.8 	a request to use the composite return filing method.
7.9 	(d) The electing partner must not have any Minnesota source income other than the 
7.10 	income from the partnership and other electing partnerships. If it is determined that the 
7.11 	electing partner has other Minnesota source income, the inclusion of the income and tax 
7.12 	liability for that partner under this provision will not constitute a return to satisfy the 
7.13 	requirements of subdivision 1. The tax paid for the individual as part of the composite return 
7.14 	is allowed as a payment of the tax by the individual on the date on which the composite 
7.15 	return payment was made. If the electing nonresident partner has no other Minnesota source 
7.16 	income, filing of the composite return is a return for purposes of subdivision 1.
7.17 	(e) This subdivision does not negate the requirement that an individual pay estimated 
7.18 	tax if the individual's liability would exceed the requirements set forth in section 289A.25. 
7.19 	The individual's liability to pay estimated tax is, however, satisfied when the partnership 
7.20 	pays composite estimated tax in the manner prescribed in section 289A.25.
7.21 	(f) If an electing partner's share of the partnership's gross income from Minnesota sources 
7.22 	is less than the filing requirements for a nonresident under this subdivision, the tax liability 
7.23 	is zero. However, a statement showing the partner's share of gross income must be included 
7.24 	as part of the composite return.
7.25 	(g) The election provided in this subdivision is only available to a partner who has no 
7.26 	other Minnesota source income and who is either (1) a full-year nonresident individual or 
7.27 	(2) a trust or estate that does not claim a deduction under either section 651 or 661 of the 
7.28 	Internal Revenue Code.
7.29 	(h) A corporation defined in section 290.9725 and its nonresident shareholders may 
7.30 	make an election under this paragraph. The provisions covering the partnership apply to 
7.31 	the corporation and the provisions applying to the partner apply to the shareholder.
7.32 	(i) Estates and trusts distributing current income only and the nonresident individual 
7.33 	beneficiaries of the estates or trusts may make an election under this paragraph. The 
8.1 	provisions covering the partnership apply to the estate or trust. The provisions applying to 
8.2 	the partner apply to the beneficiary.
8.3 	(j) For the purposes of this subdivision, "income" means the partner's share of federal 
8.4 	adjusted gross income from the partnership modified by the additions provided in section 
8.5 	290.0131, subdivisions 8 to 11 10 and 16, and the subtractions provided in: (1) section 
8.6 	290.0132, subdivision 9, to the extent the amount is assignable or allocable to Minnesota 
8.7 	under section 290.17; and (2) section 290.0132, subdivision 14. The subtraction allowed 
8.8 	under section 290.0132, subdivision 9, is only allowed on the composite tax computation 
8.9 	to the extent the electing partner would have been allowed the subtraction.

8.10 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
8.11 	31, 2018.

8.12 	Sec. 6. Minnesota Statutes 2018, section 289A.12, subdivision 14, is amended to read:
8.13 		Subd. 14. Reporting exempt interest and exempt-interest dividends. (a) A regulated 
8.14 	investment company paying $10 or more in exempt-interest dividends to an individual who 
8.15 	is a resident of Minnesota, or any person receiving $10 or more of exempt interest or 
8.16 	exempt-interest dividends and paying as nominee to an individual who is a resident of 
8.17 	Minnesota, must make a return indicating the amount of the exempt interest or 
8.18 	exempt-interest dividends, the name, address, and Social Security number of the recipient, 
8.19 	and any other information that the commissioner specifies. The return must be provided to 
8.20 	the recipient by February 15 of the year following the year of the payment. The return 
8.21 	provided to the recipient must include a clear statement, in the form prescribed by the 
8.22 	commissioner, that the exempt interest or exempt-interest dividends must be included in 
8.23 	the computation of Minnesota taxable income. By June 1 of each year, the payer must file 
8.24 	a copy of the return with the commissioner.
8.25 	(b) For purposes of this subdivision, the following definitions apply.
8.26 	(1) "Exempt-interest dividends" mean exempt-interest dividends as defined in section 
8.27 	852(b)(5) of the Internal Revenue Code, but does not include the portion of exempt-interest 
8.28 	dividends that are not required to be added to federal taxable adjusted gross income under 
8.29 	section 290.0131, subdivision 2, paragraph (b).
8.30 	(2) "Regulated investment company" means regulated investment company as defined 
8.31 	in section 851(a) of the Internal Revenue Code or a fund of the regulated investment company 
8.32 	as defined in section 851(g) of the Internal Revenue Code.
9.1 	(3) "Exempt interest" means income on obligations of any state other than Minnesota, 
9.2 	or a political or governmental subdivision, municipality, or governmental agency or 
9.3 	instrumentality of any state other than Minnesota, and exempt from federal income taxes 
9.4 	under the Internal Revenue Code or any other federal statute.

9.5 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
9.6 	31, 2018.

9.7 	Sec. 7. Minnesota Statutes 2018, section 289A.35, is amended to read:
9.8 	289A.35 ASSESSMENTS ON RETURNS.
9.9 	(a) The commissioner may audit and adjust the taxpayer's computation of federal adjusted 
9.10 	gross income, federal taxable income, items of federal tax preferences, or federal credit 
9.11 	amounts to make them conform with the provisions of chapter 290 or section 298.01. If a 
9.12 	return has been filed, the commissioner shall enter the liability reported on the return and 
9.13 	may make any audit or investigation that is considered necessary.
9.14 	(b) Upon petition by a taxpayer, and when the commissioner determines that it is in the 
9.15 	best interest of the state, the commissioner may allow S corporations and partnerships to 
9.16 	receive orders of assessment issued under section 270C.33, subdivision 4, on behalf of their 
9.17 	owners, and to pay liabilities shown on such orders. In such cases, the owners' liability must 
9.18 	be calculated using the method provided in section 289A.08, subdivision 7, paragraph (b).
9.19 	(c) A taxpayer may petition the commissioner for the use of the method described in 
9.20 	paragraph (b) after the taxpayer is notified that an audit has been initiated and before an 
9.21 	order of assessment has been issued.
9.22 	(d) A determination of the commissioner under paragraph (b) to grant or deny the petition 
9.23 	of a taxpayer cannot be appealed to the Tax Court or any other court.
9.24 	(e) The commissioner may audit and adjust the taxpayer's computation of tax under 
9.25 	chapter 291. In the case of a return filed pursuant to section 289A.10, the commissioner 
9.26 	shall notify the estate no later than nine months after the filing date, as provided by section 
9.27 	289A.38, subdivision 2, whether the return is under examination or the return has been 
9.28 	processed as filed.

9.29 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
9.30 	31, 2018.

10.1 	Sec. 8. Minnesota Statutes 2018, section 290.01, is amended by adding a subdivision to 
10.2 	read:
10.3 		Subd. 3c.Determination of marital status. The determination of marital status is made 
10.4 	by section 7703 of the Internal Revenue Code.

10.5 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
10.6 	31, 2018.

10.7 	Sec. 9. Minnesota Statutes 2018, section 290.01, is amended by adding a subdivision to 
10.8 	read:
10.9 		Subd. 14a.Surviving spouse. The term "surviving spouse" means an individual who is 
10.10 	a surviving spouse under section 2(a) of the Internal Revenue Code for the taxable year.

10.11 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
10.12 	31, 2018.

10.13 	Sec. 10. Minnesota Statutes 2018, section 290.01, subdivision 19, is amended to read:
10.14 		Subd. 19.Net income. (a) For a trust or estate taxable under section 290.03, and a 
10.15 	corporation taxable under section 290.02, the term "net income" means the federal taxable 
10.16 	income, as defined in section 63 of the Internal Revenue Code of 1986, as amended through 
10.17 	the date named in this subdivision, incorporating the federal effective dates of changes to 
10.18 	the Internal Revenue Code and any elections made by the taxpayer in accordance with the 
10.19 	Internal Revenue Code in determining federal taxable income for federal income tax 
10.20 	purposes, and with the modifications provided in sections 290.0131 to 290.0136.
10.21 	(b) For an individual, the term "net income" means federal adjusted gross income with 
10.22 	the modifications provided in sections 290.0131, 290.0132, and 290.0135 to 290.0137.
10.23 	(c) In the case of a regulated investment company or a fund thereof, as defined in section 
10.24 	851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment 
10.25 	company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, 
10.26 	except that:
10.27 	(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal 
10.28 	Revenue Code does not apply;
10.29 	(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue 
10.30 	Code must be applied by allowing a deduction for capital gain dividends and exempt-interest 
11.1 	dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code; 
11.2 	and
11.3 	(3) the deduction for dividends paid must also be applied in the amount of any 
11.4 	undistributed capital gains which the regulated investment company elects to have treated 
11.5 	as provided in section 852(b)(3)(D) of the Internal Revenue Code.
11.6 	(d) The net income of a real estate investment trust as defined and limited by section 
11.7 	856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust 
11.8 	taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
11.9 	(e) The net income of a designated settlement fund as defined in section 468B(d) of the 
11.10 	Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal 
11.11 	Revenue Code.
11.12 	(f) The Internal Revenue Code of 1986, as amended through December 16, 2016
11.13 	December 31, 2018, shall be in effect for taxable years beginning after December 31, 1996.
11.14 	(g) Except as otherwise provided, references to the Internal Revenue Code in this 
11.15 	subdivision and sections 290.0131 to 290.0136 mean the code in effect for purposes of 
11.16 	determining net income for the applicable year.

11.17 	EFFECTIVE DATE. (a) The amendments to paragraphs (a) and (b) are effective for 
11.18 	taxable years beginning after December 31, 2018.
11.19 	(b) The amendment to paragraph (f) is effective the day following final enactment, except 
11.20 	the changes incorporated by federal changes are effective retroactively at the same time as 
11.21 	the changes became effective for federal purposes, but are subject to the application of 
11.22 	Minnesota Statutes, section 290.993.

11.23 	Sec. 11. Minnesota Statutes 2018, section 290.01, is amended by adding a subdivision to 
11.24 	read:
11.25 		Subd. 19i.Deferred foreign income. "Deferred foreign income" means the income of 
11.26 	a domestic corporation that is included in net income under section 965 of the Internal 
11.27 	Revenue Code.

11.28 	EFFECTIVE DATE. This section is effective retroactively at the same time as the 
11.29 	changes in Public Law 115-97 relating to deferred foreign income were effective for federal 
11.30 	purposes.

12.1 	Sec. 12. Minnesota Statutes 2018, section 290.01, is amended by adding a subdivision to 
12.2 	read:
12.3 		Subd. 21a.Adjusted gross income; federal adjusted gross income. The terms "adjusted 
12.4 	gross income" and "federal adjusted gross income" mean adjusted gross income, as defined 
12.5 	in section 62 of the Internal Revenue Code, as amended through the date named in 
12.6 	subdivision 19, paragraph (f), incorporating the federal effective date of changes to the 
12.7 	Internal Revenue Code and any elections made by the taxpayer under the Internal Revenue 
12.8 	Code in determining federal adjusted gross income for federal income tax purposes.

12.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

12.10 	Sec. 13. Minnesota Statutes 2018, section 290.01, subdivision 29a, is amended to read:
12.11 		Subd. 29a.State itemized deduction. "State itemized deduction deductions" means 
12.12 	federal itemized deductions, as defined in section 63(d) of the Internal Revenue Code, 
12.13 	disregarding any limitation under section 68 of the Internal Revenue Code, and reduced by 
12.14 	the amount of the addition required under section 290.0131, subdivision 13 the itemized 
12.15 	deductions for individual income tax allowed under section 290.0122, subdivision 1, reduced 
12.16 	by the limit under section 290.0122, subdivision 2.

12.17 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
12.18 	31, 2018.

12.19 	Sec. 14. Minnesota Statutes 2018, section 290.01, subdivision 31, is amended to read:
12.20 		Subd. 31.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
12.21 	Revenue Code" means the Internal Revenue Code of 1986, as amended through December 
12.22 	16, 2016 December 31, 2018. Internal Revenue Code also includes any uncodified provision 
12.23 	in federal law that relates to provisions of the Internal Revenue Code that are incorporated 
12.24 	into Minnesota law.

12.25 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
12.26 	the changes incorporated by the federal changes are effective retroactively at the same time 
12.27 	as the changes became effective for federal purposes, but are subject to the application of 
12.28 	Minnesota Statutes, section 290.993.

12.29 	Sec. 15. [290.0121] DEPENDENT EXEMPTION.
12.30 		Subdivision 1.Exemption amount. (a) A taxpayer's dependent exemption equals:
13.1 	(1) the exemption amount multiplied by the number of individuals who are dependents, 
13.2 	as defined in sections 151 and 152 of the Internal Revenue Code, of the taxpayer for the 
13.3 	taxable year; minus
13.4 	(2) the disallowed exemption amount under subdivision 2, but the remainder may not 
13.5 	be less than zero.
13.6 	(b) The exemption amount equals $4,250.
13.7 		Subd. 2.Disallowed exemption amount. (a) The disallowed exemption amount equals 
13.8 	the dependent exemption allowed under subdivision 1, paragraph (a), clause (1), multiplied 
13.9 	by the applicable percentage.
13.10 	(b) For a married individual filing a separate return, "applicable percentage" means two 
13.11 	percentage points for each $1,250, or fraction of that amount, by which the taxpayer's federal 
13.12 	adjusted gross income for the taxable year exceeds the threshold amount. For all other filers, 
13.13 	applicable percentage means two percentage points for each $2,500, or fraction of that 
13.14 	amount, by which the taxpayer's federal adjusted gross income for the taxable year exceeds 
13.15 	the threshold amount. The applicable percentage must not exceed 100 percent.
13.16 	(c) "Threshold amount" means:
13.17 	(1) $291,950 for a joint return or a surviving spouse;
13.18 	(2) $243,300 for a head of a household;
13.19 	(3) $194,650 for an individual who is not married and who is not a surviving spouse or 
13.20 	head of a household; and
13.21 	(4) half the amount for a joint return for a married individual filing a separate return.
13.22 		Subd. 3.Inflation adjustment. For taxable years beginning after December 31, 2019, 
13.23 	the commissioner must adjust for inflation the exemption amount in subdivision 1, paragraph 
13.24 	(a), clause (1), and the threshold amounts in subdivision 2, as provided in section 270C.22. 
13.25 	The statutory year is taxable year 2019. The amounts as adjusted must be rounded down to 
13.26 	the nearest $50 amount. If the amount ends in $25, the amount is rounded down to the 
13.27 	nearest $50 amount. The threshold amount for married individuals filing separate returns 
13.28 	must be one-half of the adjusted amount for married individuals filing joint returns.

13.29 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
13.30 	31, 2018.

14.1 	Sec. 16. [290.0122] ITEMIZED DEDUCTIONS.
14.2 		Subdivision 1.Itemized deductions. A taxpayer's itemized deductions equal the sum 
14.3 	of the amounts allowed as a deduction under this section, reduced by the amount calculated 
14.4 	under subdivision 2.
14.5 		Subd. 2.Deductions limited; inflation adjustment. (a) The itemized deductions of a 
14.6 	taxpayer with adjusted gross income in excess of the applicable amount are reduced by the 
14.7 	lesser of:
14.8 	(1) three percent of the excess of the taxpayer's federal adjusted gross income over the 
14.9 	applicable amount; or
14.10 	(2) 80 percent of the amount of the taxpayer's itemized deductions.
14.11 	(b) "Applicable amount" means $194,650, or $97,325 for a married individual filing a 
14.12 	separate return.
14.13 	(c) For the purposes of this subdivision, "itemized deductions" means the itemized 
14.14 	deductions otherwise allowable to the taxpayer under subdivision 1, except itemized 
14.15 	deductions excludes:
14.16 	(1) the portion of the deduction for interest under subdivision 5 that represents investment 
14.17 	interest;
14.18 	(2) the deduction for medical expenses under subdivision 6; and
14.19 	(3) the deduction for losses under subdivision 8.
14.20 	(d) For taxable years beginning after December 31, 2019, the commissioner must adjust 
14.21 	for inflation the applicable amounts under paragraph (b) as provided in section 270C.22. 
14.22 	The statutory year is taxable year 2019. The amounts as adjusted must be rounded down to 
14.23 	the nearest $50 amount. The threshold amount for married individuals filing separate returns 
14.24 	must be one-half of the adjusted amount for married individuals filing joint returns.
14.25 		Subd. 3.Taxes paid. (a) A taxpayer is allowed a deduction for taxes paid. The deduction 
14.26 	equals the sum of the following amounts for the taxable year:
14.27 	(1) state and local personal property taxes and real property taxes, in a total amount for 
14.28 	both types not to exceed $10,000, or $5,000 for a married taxpayer filing a separate return;
14.29 	(2) foreign income, war profits, and excess profits taxes to the extent not reduced by the 
14.30 	federal foreign tax credit; and
15.1 	(3) for individuals who are allowed a federal foreign tax credit for taxes that do not 
15.2 	qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover 
15.3 	of subnational foreign taxes for the taxable year, but not to exceed the total subnational 
15.4 	foreign taxes reported in claiming the foreign tax credit, and to the extent not deducted 
15.5 	under clause (2).
15.6 	(b) For purposes of this subdivision, the following terms have the meanings given them:
15.7 	(1) "carryover of subnational foreign taxes" equals the carryover allowed under section 
15.8 	904(c) of the Internal Revenue Code minus national level foreign taxes to the extent they 
15.9 	exceed the federal foreign tax credit;
15.10 	(2) "federal foreign tax credit" means the credit allowed under section 27 of the Internal 
15.11 	Revenue Code; and
15.12 	(3) "foreign, income, war profits, and excess profits taxes" and "state and local real and 
15.13 	personal property taxes" have the meanings given in section 164 of the Internal Revenue 
15.14 	Code.
15.15 		Subd. 4.Charitable contributions. (a) A taxpayer is allowed a deduction for charitable 
15.16 	contributions. The deduction equals the amount of the charitable contribution deduction 
15.17 	allowable to the taxpayer under section 170 of the Internal Revenue Code, including the 
15.18 	denial of the deduction under section 408(d)(8), except that the provisions of section 
15.19 	170(b)(1)(G) apply regardless of the taxable year.
15.20 	(b) For taxable years beginning after December 31, 2017, the determination of carryover 
15.21 	amounts must be made by applying the rules under section 170 of the Internal Revenue 
15.22 	Code based on the charitable contribution deductions claimed and allowable under this 
15.23 	section.
15.24 		Subd. 5.Interest. A taxpayer is allowed a deduction for interest. The deduction equals 
15.25 	the amount allowed to the taxpayer as interest paid or accrued during the taxable year under 
15.26 	section 163 of the Internal Revenue Code with the following exceptions:
15.27 	(1) qualified residence interest excludes home equity interest;
15.28 	(2) acquisition indebtedness must not exceed $750,000, or $375,000 for a married 
15.29 	separate return, for indebtedness incurred on or after December 16, 2017; and
15.30 	(3) mortgage insurance premiums treated as interest under section 163(h)(3)(E) are not 
15.31 	interest for the purposes of this subdivision.
16.1 		Subd. 6.Medical expenses. A taxpayer is allowed a deduction for medical expenses. 
16.2 	The deduction equals the amount allowed under section 213 of the Internal Revenue Code, 
16.3 	except that the threshold percentage of adjusted gross income in paragraph (a) is ten percent 
16.4 	regardless of the federal percentage for the taxable year.
16.5 		Subd. 7.Unreimbursed employee expenses. A taxpayer is allowed a deduction for 
16.6 	unreimbursed employee expenses. The deduction equals the amount of the taxpayer's trade 
16.7 	or business expenses incurred as an employee and allowed under section 162 of the Internal 
16.8 	Revenue Code in excess of two percent of the taxpayer's adjusted gross income, disregarding 
16.9 	the suspension of the deduction in section 67, paragraph (g), of the Internal Revenue Code.
16.10 		Subd. 8.Losses. A taxpayer is allowed a deduction for losses. The deduction equals the 
16.11 	amount allowed under sections 165(d) and 165(h) of the Internal Revenue Code, disregarding 
16.12 	the limitation on personal casualty losses in paragraph (h)(5).
16.13 		Subd. 9.Miscellaneous deduction. A taxpayer is allowed a miscellaneous deduction. 
16.14 	The deduction equals the sum of the following amounts for the taxable year:
16.15 	(1) impairment-related work expenses allowed under section 67(d) of the Internal Revenue 
16.16 	Code;
16.17 	(2) the deduction for estate tax under section 691(c) of the Internal Revenue Code;
16.18 	(3) any deduction allowable in connection with personal property used in a short sale 
16.19 	as described under section 67(b)(8);
16.20 	(4) the deduction under section 1341 of the Internal Revenue Code;
16.21 	(5) the deduction under section 72(b)(3) of the Internal Revenue Code;
16.22 	(6) the deduction under section 171 of the Internal Revenue Code; and
16.23 	(7) the deduction under section 216 of the Internal Revenue Code.

16.24 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
16.25 	31, 2018.

16.26 	Sec. 17. [290.0123] STANDARD DEDUCTION.
16.27 		Subdivision 1.Standard deduction amount. A taxpayer's standard deduction equals:
16.28 	(1) for a married joint filer or a surviving spouse, $24,400;
16.29 	(2) for a head of household filer, $18,350; or
16.30 	(3) for any other filer, one-half the amount in clause (1); plus
17.1 	(4) the additional amount for the taxpayer under subdivision 2.
17.2 	A taxpayer's standard deduction amount is reduced in accordance with subdivision 5.
17.3 		Subd. 2.Additional amount for seniors or blind taxpayers. (a) The additional amount 
17.4 	equals the sum of the following amounts:
17.5 	(1) $1,300 if the taxpayer has attained age 65 before the close of the taxable year or 
17.6 	$1,650 for such a taxpayer who is not married or a surviving spouse;
17.7 	(2) $1,300 for the spouse of the taxpayer if the spouse has attained the age of 65 before 
17.8 	the close of the taxable year and qualifies for an exemption under section 151(b) of the 
17.9 	Internal Revenue Code;
17.10 	(3) $1,300 if the taxpayer is blind at the close of the taxable year or $1,650 for such a 
17.11 	taxpayer who is not married or a surviving spouse; and
17.12 	(4) $1,300 for the spouse of the taxpayer if the spouse is blind as of the close of the 
17.13 	taxable year and qualifies for an exemption under section 151(b) of the Internal Revenue 
17.14 	Code.
17.15 	(b) The commissioner must disregard section 151(d)(5) of the Internal Revenue Code 
17.16 	when determining if the taxpayer's spouse is eligible for an exemption under paragraph (a).
17.17 		Subd. 3.Amount for dependents. For an individual who is a dependent, as defined in 
17.18 	sections 151 and 152 of the Internal Revenue Code, of another taxpayer for a taxable year 
17.19 	beginning in the calendar year in which the individual's taxable year begins, the standard 
17.20 	deduction for that individual is limited to the greater of:
17.21 	(1) $1,100; or
17.22 	(2) the lesser of (i) the sum of $350 and that individual's earned income, as defined in 
17.23 	section 32(c) of the Internal Revenue Code; or (ii) the standard deduction amount allowed 
17.24 	under subdivision 1, clause (3).
17.25 		Subd. 4.Deduction disallowed. The standard deduction is zero for: (1) a married 
17.26 	individual filing a separate return if either spouse itemizes deductions; (2) an individual 
17.27 	making a return for a period of less than twelve months on account of changes in the annual 
17.28 	accounting period; and (3) a nonresident alien individual, except as allowed under a United 
17.29 	States income tax treaty.
17.30 		Subd. 5.Deduction limited. (a) The standard deduction of a taxpayer with adjusted 
17.31 	gross income in excess of the applicable amount is reduced by the lesser of:
18.1 	(1) three percent of the excess of the taxpayer's federal adjusted gross income over the 
18.2 	applicable amount; or
18.3 	(2) 80 percent of the standard deduction otherwise allowable under this section.
18.4 	(b) "Applicable amount" means $194,650, or $97,325 for a married individual filing a 
18.5 	separate return.
18.6 		Subd. 6.Inflation adjustment. For taxable years beginning after December 31, 2019, 
18.7 	the commissioner must adjust for inflation the standard deduction amounts in subdivision 
18.8 	1, the additional amounts in subdivision 2, the amounts in subdivision 3, and the applicable 
18.9 	amounts in subdivision 5 as provided in section 270C.22. The statutory year is taxable year 
18.10 	2019. The amounts as adjusted must be rounded down to the nearest $50 amount. The 
18.11 	standard deduction amount for married individuals filing separate returns is one-half of the 
18.12 	adjusted amount for married individuals filing joint returns.

18.13 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
18.14 	31, 2018.

18.15 	Sec. 18. Minnesota Statutes 2018, section 290.0131, subdivision 1, is amended to read:
18.16 		Subdivision 1.Definition; scope. (a) For the purposes of this section, "addition" means 
18.17 	an amount that must be added to federal taxable income for a trust or an estate or federal 
18.18 	adjusted gross income for an individual in computing net income for the taxable year to 
18.19 	which the amounts relate.
18.20 	(b) The additions in this section apply to individuals, estates, and trusts.
18.21 	(c) Unless specifically indicated or unless the context clearly indicates otherwise, only 
18.22 	amounts that were deducted or excluded in computing federal taxable income for a trust or 
18.23 	an estate or federal adjusted gross income for individuals are an addition under this section.

18.24 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
18.25 	31, 2018.

18.26 	Sec. 19. Minnesota Statutes 2018, section 290.0131, subdivision 3, is amended to read:
18.27 		Subd. 3.Income, sales and use, motor vehicle sales, or excise taxes paid. (a) For trusts 
18.28 	and estates, the amount of income, sales and use, motor vehicle sales, or excise taxes paid 
18.29 	or accrued within the taxable year under this chapter and the amount of taxes based on net 
18.30 	income, sales and use, motor vehicle sales, or excise taxes paid to any other state or to any 
19.1 	province or territory of Canada is an addition to the extent deducted under section 63(d) of 
19.2 	the Internal Revenue Code.
19.3 	(b) The addition under paragraph (a) may not be more than the amount by which the 
19.4 	state itemized deduction exceeds the amount of the standard deduction as defined in section 
19.5 	63(c) of the Internal Revenue Code. For the purpose of this subdivision, income, sales and 
19.6 	use, motor vehicle sales, or excise taxes are the last itemized deductions disallowed under 
19.7 	subdivision 12.

19.8 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
19.9 	31, 2018.

19.10 	Sec. 20. Minnesota Statutes 2018, section 290.0131, is amended by adding a subdivision 
19.11 	to read:
19.12 		Subd. 15.529 plan addition. The lesser of the following amounts is an addition:
19.13 	(1) the total distributions for the taxable year from a qualified plan under section 529 of 
19.14 	the Internal Revenue Code, owned by the taxpayer, that are expended for qualified higher 
19.15 	education expenses under section 529(c)(7) of the Internal Revenue Code (expenses for 
19.16 	tuition for elementary or secondary public, private, or religious school); or
19.17 	(2) the total amount required to be reported to the taxpayer by any trustee of a qualified 
19.18 	tuition plan under section 529 of the Internal Revenue Code as earnings on Internal Revenue 
19.19 	Service Form 1099Q for the taxable year.

19.20 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
19.21 	after December 31, 2017.

19.22 	Sec. 21. Minnesota Statutes 2018, section 290.0131, is amended by adding a subdivision 
19.23 	to read:
19.24 		Subd. 16.Section 199A addition. For trusts and estates, the amount deducted under 
19.25 	section 199A of the Internal Revenue Code in computing the trust or estate's federal taxable 
19.26 	income is an addition.

19.27 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
19.28 	after December 31, 2017.

20.1 	Sec. 22. Minnesota Statutes 2018, section 290.0131, is amended by adding a subdivision 
20.2 	to read:
20.3 		Subd. 17.Foreign-derived intangible income  To the extent deducted from net income, 
20.4 	the amount of foreign-derived intangible income deducted under section 250 of the Internal 
20.5 	Revenue Code for the taxable year is an addition.

20.6 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
20.7 	after December 31, 2017.

20.8 	Sec. 23. Minnesota Statutes 2018, section 290.0131, is amended by adding a subdivision 
20.9 	to read:
20.10 		Subd. 18.Special deductions. For trusts and estates, the amount of any special deduction 
20.11 	under section 250 or 965 of the Internal Revenue Code is an addition, to the extent not 
20.12 	included in taxable income.

20.13 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
20.14 	the changes incorporated by federal changes are effective retroactively at the same time the 
20.15 	changes became effective for federal purposes.

20.16 	Sec. 24. Minnesota Statutes 2018, section 290.0132, subdivision 1, is amended to read:
20.17 		Subdivision 1.Definition; scope. (a) For the purposes of this section, "subtraction" 
20.18 	means an amount that shall be subtracted from federal taxable income for a trust or an estate 
20.19 	or federal adjusted gross income for an individual in computing net income for the taxable 
20.20 	year to which the amounts relate.
20.21 	(b) The subtractions in this section apply to individuals, estates, and trusts.
20.22 	(c) Unless specifically indicated or unless the context clearly indicates otherwise, no 
20.23 	amount deducted, subtracted, or otherwise excluded in computing federal taxable income 
20.24 	for a trust or an estate or federal adjusted gross income for an individual is a subtraction 
20.25 	under this section.

20.26 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
20.27 	31, 2018.

20.28 	Sec. 25. Minnesota Statutes 2018, section 290.0132, subdivision 7, is amended to read:
20.29 		Subd. 7.Charitable contributions for taxpayers who do not itemize. To the extent 
20.30 	not deducted or not deductible under section 408(d)(8)(E) of the Internal Revenue Code in 
20.31 	determining federal taxable income by For an individual who does not itemize deductions 
21.1 	for federal income tax purposes under section 290.0132, subdivision 19, for the taxable 
21.2 	year, an amount equal to 50 percent of the excess of charitable contributions over $500 
21.3 	allowable as a deduction for the taxable year under section 170(a) of the Internal Revenue 
21.4 	Code 290.0122, subdivision 4, is a subtraction. The subtraction under this subdivision must 
21.5 	not include a distribution that is excluded from federal adjusted gross income and that is 
21.6 	not deductible under section 408(d)(8)(E) of the Internal Revenue Code.

21.7 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
21.8 	31, 2018.

21.9 	Sec. 26. Minnesota Statutes 2018, section 290.0132, subdivision 19, is amended to read:
21.10 		Subd. 19.Disallowed Standard or itemized deductions. (a) The standard deduction 
21.11 	amount allowed under section 290.0123, subdivision 1, is a subtraction.
21.12 	(b) A taxpayer may elect to claim a subtraction equal to the amount of the limitation on
21.13 	itemized deductions calculated under section 68(b) of the Internal Revenue Code is a 
21.14 	subtraction 290.0122, subdivision 1, in lieu of the subtraction for the standard deduction in 
21.15 	paragraph (a).

21.16 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
21.17 	31, 2018.

21.18 	Sec. 27. Minnesota Statutes 2018, section 290.0132, subdivision 20, is amended to read:
21.19 		Subd. 20.Disallowed PersonalDependent exemption. The amount of the phaseout of 
21.20 	personal exemptions under section 151(d) of the Internal Revenue Code is a subtraction.
21.21 	The dependent exemption under section 290.0121, subdivision 1, paragraph (a), is a 
21.22 	subtraction.

21.23 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
21.24 	31, 2018.

21.25 	Sec. 28. Minnesota Statutes 2018, section 290.0132, subdivision 21, is amended to read:
21.26 		Subd. 21.Military service pension; retirement pay.  To the extent included in federal 
21.27 	taxable adjusted gross income, compensation received from a pension or other retirement 
21.28 	pay from the federal government for service in the military, as computed under United 
21.29 	States Code, title 10, sections 1401 to 1414, 1447 to 1455, and 12733, is a subtraction. The 
21.30 	subtraction is limited to individuals who do not claim the credit under section 290.0677.

22.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
22.2 	31, 2018.

22.3 	Sec. 29. Minnesota Statutes 2018, section 290.0132, is amended by adding a subdivision 
22.4 	to read:
22.5 		Subd. 27.Deferred foreign income. The amount of deferred foreign income recognized 
22.6 	because of section 965 of the Internal Revenue Code is a subtraction.

22.7 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
22.8 	the changes incorporated by federal changes are effective retroactively at the same time the 
22.9 	changes became effective for federal purposes.

22.10 	Sec. 30. Minnesota Statutes 2018, section 290.0132, is amended by adding a subdivision 
22.11 	to read:
22.12 		Subd. 28.Global intangible low-taxed income. The amount of global intangible 
22.13 	low-taxed income included in gross income under section 951A of the Internal Revenue 
22.14 	Code is a subtraction.

22.15 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
22.16 	after December 31, 2017.

22.17 	Sec. 31. Minnesota Statutes 2018, section 290.0133, subdivision 6, is amended to read:
22.18 		Subd. 6.Special deductions. The amount of any special deductions under sections 241 
22.19 	to 247, 250, and 965 of the Internal Revenue Code is an addition.

22.20 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
22.21 	the changes incorporated by federal changes are effective retroactively at the same time the 
22.22 	changes became effective for federal purposes.

22.23 	Sec. 32. Minnesota Statutes 2018, section 290.0134, is amended by adding a subdivision 
22.24 	to read:
22.25 		Subd. 17.Global intangible low-taxed income. The amount of global intangible 
22.26 	low-taxed income included in gross income under section 951A of the Internal Revenue 
22.27 	Code is a subtraction.

22.28 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
22.29 	after December 31, 2017.

23.1 	Sec. 33. Minnesota Statutes 2018, section 290.0134, is amended by adding a subdivision 
23.2 	to read:
23.3 		Subd. 18.Deferred foreign income. The amount of deferred foreign income recognized 
23.4 	because of section 965 of the Internal Revenue Code is a subtraction.

23.5 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
23.6 	the changes incorporated by federal changes are effective retroactively at the same time the 
23.7 	changes became effective for federal purposes.

23.8 	Sec. 34. Minnesota Statutes 2018, section 290.032, subdivision 2, is amended to read:
23.9 		Subd. 2.Computation. The amount of tax imposed by subdivision 1 shall be computed 
23.10 	in the same way as the tax imposed under section 402(d) of the Internal Revenue Code of 
23.11 	1986, as amended through December 31, 1995, except that the initial separate tax shall be 
23.12 	an amount equal to five times the tax which would be imposed by section 290.06, subdivision 
23.13 	2c, if the recipient was an unmarried individual, and the taxable net income was an amount 
23.14 	equal to one-fifth of the excess of
23.15 	(i) the total taxable amount of the lump-sum distribution for the year, over
23.16 	(ii) the minimum distribution allowance, and except that references in section 402(d) of 
23.17 	the Internal Revenue Code of 1986, as amended through December 31, 1995, to paragraph 
23.18 	(1)(A) thereof shall instead be references to subdivision 1, and the excess, if any, of the 
23.19 	subtraction base amount over federal taxable net income for a qualified individual as provided 
23.20 	under section 290.0802, subdivision 2.

23.21 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
23.22 	31, 2018.

23.23 	Sec. 35. Minnesota Statutes 2018, section 290.05, subdivision 3, is amended to read:
23.24 		Subd. 3.Taxes imposed on exempt entities. (a) An organization exempt from taxation 
23.25 	under subdivision 2 shall, nevertheless, be subject to tax under this chapter to the extent 
23.26 	provided in the following provisions of the Internal Revenue Code:
23.27 	(1) section 527 (dealing with political organizations);
23.28 	(2) section 528 (dealing with certain homeowners associations);
23.29 	(3) sections 511 to 515 (dealing with unrelated business income);
23.30 	(4) section 521 (dealing with farmers' cooperatives); and
24.1 	(5) section 6033(e)(2) (dealing with lobbying expense); but notwithstanding this 
24.2 	subdivision, shall be considered an organization exempt from income tax for the purposes 
24.3 	of any law which refers to organizations exempt from income taxes.
24.4 	(b) The tax shall be imposed on the taxable income of political organizations or 
24.5 	homeowner associations or the unrelated business taxable income, as defined in section 512 
24.6 	of the Internal Revenue Code, of organizations defined in section 511 of the Internal Revenue 
24.7 	Code, provided that the tax is not imposed on:
24.8 	(1) advertising revenues from a newspaper published by an organization described in 
24.9 	section 501(c)(4) of the Internal Revenue Code; or
24.10 	(2) revenues from lawful gambling authorized under chapter 349 that are expended for 
24.11 	purposes that qualify for the deduction for charitable contributions under section 170 of the 
24.12 	Internal Revenue Code, disregarding the limitation under section 170(b)(2), but only to the 
24.13 	extent the contributions are not deductible in computing federal taxable income; or
24.14 	(3) amounts included in unrelated business taxable income under section 512(a)(7) of 
24.15 	the Internal Revenue Code.
24.16 	The tax shall be at the corporate rates. The tax shall only be imposed on income and 
24.17 	deductions assignable to this state under sections 290.17 to 290.20. To the extent deducted 
24.18 	in computing federal taxable income, the deductions contained in section 290.21 shall not 
24.19 	be allowed in computing Minnesota taxable net income.
24.20 	(c) The tax shall be imposed on organizations subject to federal tax under section 
24.21 	6033(e)(2) of the Internal Revenue Code, in an amount equal to the corporate tax rate 
24.22 	multiplied by the amount of lobbying expenses taxed under section 6033(e)(2) which are 
24.23 	attributable to lobbying the Minnesota state government.
24.24 	(d) In calculating unrelated business taxable income under section 512 of the Internal 
24.25 	Revenue Code, the amount of any net operating loss deduction claimed under section 172 
24.26 	of the Internal Revenue Code is an addition. Taxpayers making an addition under this 
24.27 	paragraph may deduct a net operating loss for the taxable year in the same manner as a 
24.28 	corporation under section 290.095, in a form and manner prescribed by the commissioner, 
24.29 	and may calculate the loss without the application of the limitation provided for under 
24.30 	section 512(a)(6) of the Internal Revenue Code.

24.31 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
24.32 	after December 31, 2017.

25.1 	Sec. 36. Minnesota Statutes 2018, section 290.06, subdivision 2d, is amended to read:
25.2 		Subd. 2d.Inflation adjustment of brackets. (a) For taxable years beginning after 
25.3 	December 31, 2013, The commissioner shall annually adjust the minimum and maximum 
25.4 	dollar amounts for each rate bracket for which a tax is imposed in subdivision 2c shall be 
25.5 	adjusted for inflation by the percentage determined under paragraph (b). For the purpose 
25.6 	of making the adjustment as provided in this subdivision all of the rate brackets provided 
25.7 	in subdivision 2c shall be the rate brackets as they existed for taxable years beginning after 
25.8 	December 31, 2012, and before January 1, 2014 as provided in section 270C.22. The statutory 
25.9 	year is taxable year 2019. The rate applicable to any rate bracket must not be changed. The 
25.10 	dollar amounts setting forth the tax shall be adjusted to reflect the changes in the rate brackets. 
25.11 	The rate brackets as adjusted must be rounded to the nearest $10 amount. If the rate bracket 
25.12 	ends in $5, it must be rounded up to the nearest $10 amount.
25.13 	(b) The commissioner shall adjust the rate brackets and by the percentage determined 
25.14 	pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in section 
25.15 	1(f)(3)(B) the word "2012" shall be substituted for the word "1992." For 2014, the 
25.16 	commissioner shall then determine the percent change from the 12 months ending on August 
25.17 	31, 2012, to the 12 months ending on August 31, 2013, and in each subsequent year, from 
25.18 	the 12 months ending on August 31, 2012, to the 12 months ending on August 31 of the 
25.19 	year preceding the taxable year. The determination of the commissioner pursuant to this 
25.20 	subdivision shall not be considered a "rule" and shall not be subject to the Administrative 
25.21 	Procedure Act contained in chapter 14.
25.22 	No later than December 15 of each year, the commissioner shall announce the specific 
25.23 	percentage that will be used to adjust the tax rate brackets.

25.24 	EFFECTIVE DATE. This section is effective for adjustments beginning with taxable 
25.25 	years beginning after December 31, 2019.

25.26 	Sec. 37. Minnesota Statutes 2018, section 290.06, subdivision 2h, is amended to read:
25.27 		Subd. 2h.Section 529 plan recapture. (a) For the purposes of this subdivision:
25.28 	(1) the definitions under section 290.0684 apply;
25.29 	(2) "account owner" means an individual who owns one or more qualified accounts;
25.30 	(3) "credit ratio" means the ratio of (i) two times the total amount of credits that an 
25.31 	account owner claimed under section 290.0684 for contributions to the account owner's 
25.32 	qualified accounts to (ii) the total contributions in all taxable years to the account owner's 
25.33 	qualified accounts; and
26.1 	(4) "qualified higher education expenses" has the meaning given in section 529(e)(3) of 
26.2 	the Internal Revenue Code, except section 529(c)(7) does not apply; and
26.3 	(5) "subtraction ratio" means the ratio of (i) the total amount of subtractions that an 
26.4 	account owner claimed under section 290.0132, subdivision 23, for contributions to the 
26.5 	account owner's qualified accounts to (ii) the total contributions in all taxable years to the 
26.6 	account owner's qualified accounts.
26.7 	(b) If a distribution from a qualified account is used for a purpose other than to pay for 
26.8 	qualified higher education expenses, the account owner must pay an additional tax equal 
26.9 	to:
26.10 	(1) 50 percent of the product of the credit ratio and the amount of the distribution; plus
26.11 	(2) ten percent of the product of the subtraction ratio and the amount of the distribution.
26.12 	(c) The additional tax under this subdivision does not apply to any portion of a distribution 
26.13 	that is subject to the additional tax under section 529(c)(6) of the Internal Revenue Code.

26.14 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
26.15 	after December 31, 2017.

26.16 	Sec. 38. Minnesota Statutes 2018, section 290.067, subdivision 2b, is amended to read:
26.17 		Subd. 2b.Inflation adjustment. The commissioner shall annually adjust the dollar 
26.18 	amount of the income threshold at which the maximum credit begins to be reduced under 
26.19 	subdivision 1 by the percentage determined pursuant to the provisions of section 1(f) of the 
26.20 	Internal Revenue Code, except that in section 1(f)(3)(B) the word "2016" shall be substituted 
26.21 	for the word "1992." For 2018, the commissioner shall then determine the percent change 
26.22 	from the 12 months ending on August 31, 2016, to the 12 months ending on August 31, 
26.23 	2017, and in each subsequent year, from the 12 months ending on August 31, 2016, to the 
26.24 	12 months ending on August 31 of the year preceding the taxable year. The determination 
26.25 	of the commissioner pursuant to this subdivision must not be considered a "rule" and is not 
26.26 	subject to the Administrative Procedure Act contained in chapter 14. The threshold amount 
26.27 	as adjusted must be rounded to the nearest $10 amount. If the amount ends in $5, the amount 
26.28 	is rounded up to the nearest $10 amount as provided in section 270C.22. The statutory year 
26.29 	is taxable year 2019.

26.30 	EFFECTIVE DATE. This section is effective for adjustments beginning with taxable 
26.31 	years beginning after December 31, 2019.

27.1 	Sec. 39. Minnesota Statutes 2018, section 290.0671, subdivision 7, is amended to read:
27.2 		Subd. 7.Inflation adjustment. The commissioner shall annually adjust the earned 
27.3 	income amounts used to calculate the credit and the income phase-out thresholds at which 
27.4 	the maximum credit begins to be reduced in subdivision 1 must be adjusted for inflation. 
27.5 	The commissioner shall adjust by the percentage determined pursuant to the provisions of 
27.6 	section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) the word "2013" 
27.7 	shall be substituted for the word "1992." For 2015, the commissioner shall then determine 
27.8 	the percent change from the 12 months ending on August 31, 2013, to the 12 months ending 
27.9 	on August 31, 2014, and in each subsequent year, from the 12 months ending on August 
27.10 	31, 2013, to the 12 months ending on August 31 of the year preceding the taxable year. The 
27.11 	earned income thresholds as adjusted for inflation must be rounded to the nearest $10 
27.12 	amount. If the amount ends in $5, the amount is rounded up to the nearest $10 amount. The 
27.13 	determination of the commissioner under this subdivision is not a rule under the 
27.14 	Administrative Procedure Act as provided in section 270C.22. The statutory year is taxable 
27.15 	year 2019.

27.16 	EFFECTIVE DATE. This section is effective for adjustments for taxable years 
27.17 	beginning after December 31, 2019.

27.18 	Sec. 40. Minnesota Statutes 2018, section 290.0672, subdivision 1, is amended to read:
27.19 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
27.20 	the meanings given.
27.21 	(b) "Long-term care insurance" means a policy that:
27.22 	(1) qualifies for a deduction under section 213 of the Internal Revenue Code, disregarding 
27.23 	the adjusted gross income test; or meets the requirements given in section 62A.46; or provides 
27.24 	similar coverage issued under the laws of another jurisdiction; and
27.25 	(2) has a lifetime long-term care benefit limit of not less than $100,000; and
27.26 	(3) has been offered in compliance with the inflation protection requirements of section 
27.27 	62S.23.
27.28 	(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.
27.29 	(d) "Premiums deducted in determining federal taxable net income" means the lesser of 
27.30 	(1) long-term care insurance premiums that qualify as deductions under section 213 of the 
27.31 	Internal Revenue Code; and (2) the total amount deductiblededucted for medical care under 
27.32 	section 213 of the Internal Revenue Code section 290.0122, subdivision 6.

28.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
28.2 	31, 2018.

28.3 	Sec. 41. Minnesota Statutes 2018, section 290.0672, subdivision 2, is amended to read:
28.4 		Subd. 2.Credit. A taxpayer is allowed a credit against the tax imposed by this chapter 
28.5 	for long-term care insurance policy premiums paid during the tax year. The credit for each 
28.6 	policy equals 25 percent of premiums paid to the extent not deducted in determining federal
28.7 	taxable net income. A taxpayer may claim a credit for only one policy for each qualified 
28.8 	beneficiary. A maximum of $100 applies to each qualified beneficiary. The maximum total 
28.9 	credit allowed per year is $200 for married couples filing joint returns and $100 for all other 
28.10 	filers. For a nonresident or part-year resident, the credit determined under this section must 
28.11 	be allocated based on the percentage calculated under section 290.06, subdivision 2c, 
28.12 	paragraph (e).

28.13 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
28.14 	31, 2018.

28.15 	Sec. 42. Minnesota Statutes 2018, section 290.0675, subdivision 1, is amended to read:
28.16 		Subdivision 1.Definitions. (a) For purposes of this section the following terms have 
28.17 	the meanings given.
28.18 	(b) "Earned income" means the sum of the following, to the extent included in Minnesota 
28.19 	taxable income:
28.20 	(1) earned income as defined in section 32(c)(2) of the Internal Revenue Code;
28.21 	(2) income received from a retirement pension, profit-sharing, stock bonus, or annuity 
28.22 	plan; and
28.23 	(3) Social Security benefits as defined in section 86(d)(1) of the Internal Revenue Code.
28.24 	(c) "Taxable income" means net income as defined in section 290.01, subdivision 19.
28.25 	(d) "Earned income of lesser-earning spouse" means the earned income of the spouse 
28.26 	with the lesser amount of earned income as defined in paragraph (b) for the taxable year 
28.27 	minus the sum of (i) the amount for one exemption under section 151(d) of the Internal 
28.28 	Revenue Code and (ii) one-half the amount of the standard deduction under section 
28.29 	63(c)(2)(A) and (4) of the Internal Revenue Code 290.0123, subdivision 1, clause (1).

28.30 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
28.31 	31, 2018.

29.1 	Sec. 43. Minnesota Statutes 2018, section 290.0681, subdivision 1, is amended to read:
29.2 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
29.3 	the meanings given.
29.4 	(b) "Account" means the historic credit administration account in the special revenue 
29.5 	fund.
29.6 	(c) "Office" means the State Historic Preservation Office of the Department of 
29.7 	Administration.
29.8 	(d) "Project" means rehabilitation of a certified historic structure, as defined in section 
29.9 	47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is allowed a 
29.10 	federal credit.
29.11 	(e) "Federal credit" means the credit allowed under section 47(a)(2) 47(a) of the Internal 
29.12 	Revenue Code, except that the amount allowed is deemed to be allocated in the taxable year 
29.13 	that the project is placed in service.
29.14 	(f) "Placed in service" has the meaning used in section 47 of the Internal Revenue Code.
29.15 	(g) "Qualified rehabilitation expenditures" has the meaning given in section 47 of the 
29.16 	Internal Revenue Code.

29.17 	EFFECTIVE DATE. This section is effective retroactively for applications for allocation 
29.18 	certificates submitted after December 31, 2017.

29.19 	Sec. 44. Minnesota Statutes 2018, section 290.0681, subdivision 2, is amended to read:
29.20 		Subd. 2.Credit or grant allowed; certified historic structure. (a) A credit is allowed 
29.21 	against the tax imposed under this chapter equal to not more than 100 percent of the credit 
29.22 	allowed under section 47(a)(2) 47(a) of the Internal Revenue Code for a project. The credit 
29.23 	is payable in five equal yearly installments beginning with the year the project is placed in 
29.24 	service. To qualify for the credit:
29.25 	(1) the project must receive Part 3 certification and be placed in service during the taxable 
29.26 	year; and
29.27 	(2) the taxpayer must be allowed the federal credit and be issued a credit certificate for 
29.28 	the taxable year as provided in subdivision 4.
29.29 	(b) The commissioner of administration may pay a grant in lieu of the credit. The grant 
29.30 	equals 90 percent of the credit that would be allowed for the project. The grant is payable 
29.31 	in five equal yearly installments beginning with the year the project is placed in service.
30.1 	(c) In lieu of the credit under paragraph (a), an insurance company may claim a credit 
30.2 	against the insurance premiums tax imposed under chapter 297I.

30.3 	EFFECTIVE DATE. This section is effective retroactively for applications for allocation 
30.4 	certificates submitted after December 31, 2017.

30.5 	Sec. 45. Minnesota Statutes 2018, section 290.0681, subdivision 3, is amended to read:
30.6 		Subd. 3.Applications; allocations. (a) To qualify for a credit or grant under this section, 
30.7 	the developer of a project must apply to the office before the rehabilitation begins. The 
30.8 	application must contain the information and be in the form prescribed by the office. The 
30.9 	office may collect a fee for application of up to 0.5 percent of qualified rehabilitation 
30.10 	expenditures, up to $40,000, based on estimated qualified rehabilitation expenditures, to 
30.11 	offset costs associated with personnel and administrative expenses related to administering 
30.12 	the credit and preparing the economic impact report in subdivision 9. Application fees are 
30.13 	deposited in the account. The application must indicate if the application is for a credit or 
30.14 	a grant in lieu of the credit or a combination of the two and designate the taxpayer qualifying 
30.15 	for the credit or the recipient of the grant.
30.16 	(b) Upon approving an application for credit, the office shall issue allocation certificates 
30.17 	that:
30.18 	(1) verify eligibility for the credit or grant;
30.19 	(2) state the amount of credit or grant anticipated with the project, with the credit amount 
30.20 	equal to 100 percent and the grant amount equal to 90 percent of the federal credit anticipated 
30.21 	in the application;
30.22 	(3) state that the credit or grant allowed may increase or decrease if the federal credit 
30.23 	the project receives at the time it is placed in service is different than the amount anticipated 
30.24 	at the time the allocation certificate is issued; and
30.25 	(4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer or 
30.26 	grant recipient is entitled to receive one-fifth of the total amount of either the credit or the 
30.27 	grant at the time the project is placed in service, provided that date is within three calendar 
30.28 	years following the issuance of the allocation certificate.
30.29 	(c) The office, in consultation with the commissioner, shall determine if the project is 
30.30 	eligible for a credit or a grant under this section and must notify the developer in writing 
30.31 	of its determination. Eligibility for the credit is subject to review and audit by the 
30.32 	commissioner.
31.1 	(d) The federal credit recapture and repayment requirements under section 50 of the 
31.2 	Internal Revenue Code do not apply to the credit allowed under this section.
31.3 	(e) Any decision of the office under paragraph (c) may be challenged as a contested case 
31.4 	under chapter 14. The contested case proceeding must be initiated within 45 days of the 
31.5 	date of written notification by the office.

31.6 	EFFECTIVE DATE. This section is effective retroactively for applications for allocation 
31.7 	certificates submitted after December 31, 2017.

31.8 	Sec. 46. Minnesota Statutes 2018, section 290.0681, subdivision 4, is amended to read:
31.9 		Subd. 4.Credit certificates; grants. (a)(1) The developer of a project for which the 
31.10 	office has issued an allocation certificate must notify the office when the project is placed 
31.11 	in service. Upon verifying that the project has been placed in service, and was allowed a 
31.12 	federal credit, the office must issue a credit certificate to the taxpayer designated in the 
31.13 	application or must issue a grant to the recipient designated in the application. The credit 
31.14 	certificate must state the amount of the credit.
31.15 	(2) The credit amount equals the federal credit allowed for the project.
31.16 	(3) The grant amount equals 90 percent of the federal credit allowed for the project.
31.17 	(b) The recipient of a credit certificate may assign the certificate to another taxpayer
31.18 	before the first one-fifth payment is claimed, which is then allowed the credit under this 
31.19 	section or section 297I.20, subdivision 3. An assignment is not valid unless the assignee 
31.20 	notifies the commissioner within 30 days of the date that the assignment is made. The 
31.21 	commissioner shall prescribe the forms necessary for notifying the commissioner of the 
31.22 	assignment of a credit certificate and for claiming a credit by assignment.
31.23 	(c) Credits passed through to partners, members, shareholders, or owners pursuant to 
31.24 	subdivision 5 are not an assignment of a credit certificate under this subdivision.
31.25 	(d) A grant agreement between the office and the recipient of a grant may allow the 
31.26 	grant to be issued to another individual or entity.

31.27 	EFFECTIVE DATE. This section is effective retroactively for applications for allocation 
31.28 	certificates submitted after December 31, 2017.

31.29 	Sec. 47. Minnesota Statutes 2018, section 290.0684, subdivision 1, is amended to read:
31.30 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
31.31 	the meanings given them.
32.1 	(b) "Contribution" means the amount contributed to one or more qualified accounts 
32.2 	except that the amount:
32.3 	(1) is reduced by any withdrawals or distributions, other than transfers or rollovers to 
32.4 	another qualified account, from a qualified account during the taxable year; and
32.5 	(2) excludes the amount of any transfers or rollovers from a qualified account made 
32.6 	during the taxable year.
32.7 	(c) "Federal adjusted gross income" has the meaning given under section 62(a) of the 
32.8 	Internal Revenue Code.
32.9 	(d) "Qualified account" means an account qualifying under section 529 of the Internal 
32.10 	Revenue Code.
32.11 	(e) "Qualified higher education expenses" has the meaning given in section 529 of the 
32.12 	Internal Revenue Code.

32.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

32.14 	Sec. 48. Minnesota Statutes 2018, section 290.0684, subdivision 2, is amended to read:
32.15 		Subd. 2.Credit allowed. (a) An individual who is a resident of Minnesota is allowed a 
32.16 	credit against the tax imposed by this chapter. The credit is not allowed to an individual 
32.17 	who is eligible to be claimed as a dependent, as defined in sections 151 and 152 of the 
32.18 	Internal Revenue Code. The credit may not exceed the liability for tax under this chapter.
32.19 	(b) The amount of the credit allowed equals 50 percent of contributions for the taxable 
32.20 	year. The maximum credit is $500, subject to the phaseout in paragraphs (c) and (d). In no 
32.21 	case is the credit less than zero.
32.22 	(c) For individual filers, the maximum credit is reduced by two percent of adjusted gross 
32.23 	income in excess of $75,000.
32.24 	(d) For married couples filing a joint return, the maximum credit is phased out as follows:
32.25 	(1) for married couples with adjusted gross income in excess of $75,000, but not more 
32.26 	than $100,000, the maximum credit is reduced by one percent of adjusted gross income in 
32.27 	excess of $75,000;
32.28 	(2) for married couples with adjusted gross income in excess of $100,000, but not more 
32.29 	than $135,000, the maximum credit is $250; and
32.30 	(3) for married couples with adjusted gross income in excess of $135,000, the maximum 
32.31 	credit is $250, reduced by one percent of adjusted gross income in excess of $135,000.
33.1 	(e) The commissioner shall annually adjust the income thresholds in paragraphs (c) and 
33.2 	(d) used to calculate the maximum credit must be adjusted for inflation. The commissioner 
33.3 	shall adjust the income thresholds by the percentage determined under the provisions of 
33.4 	section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) the word "2016" 
33.5 	is substituted for the word "1992." For 2018, the commissioner shall then determine the 
33.6 	percent change from the 12 months ending on August 31, 2016, to the 12 months ending 
33.7 	on August 31, 2017, and in each subsequent year, from the 12 months ending on August 
33.8 	31, 2016, to the 12 months ending on August 31 of the year preceding the taxable year. The 
33.9 	income thresholds as adjusted for inflation must be rounded to the nearest $10 amount. If 
33.10 	the amount ends in $5, the amount is rounded up to the nearest $10 amount. The 
33.11 	determination of the commissioner under this subdivision is not subject to chapter 14, 
33.12 	including section 14.386 as provided in section 270C.22. The statutory year is taxable year 
33.13 	2019.

33.14 	EFFECTIVE DATE. This section is effective for adjustments beginning with taxable 
33.15 	years beginning after December 31, 2019.

33.16 	Sec. 49. Minnesota Statutes 2018, section 290.0802, subdivision 2, is amended to read:
33.17 		Subd. 2.Subtraction. (a) A qualified individual is allowed a subtraction from federal 
33.18 	taxable adjusted gross income of the individual's subtraction base amount. The excess of 
33.19 	the subtraction base amount over the taxable net income computed without regard to the 
33.20 	subtraction for the elderly or disabled under section 290.0132, subdivision 5, may be used 
33.21 	to reduce the amount of a lump sum distribution subject to tax under section 290.032.
33.22 	(b)(1) The initial subtraction base amount equals
33.23 	(i) $12,000 for a married taxpayer filing a joint return if a spouse is a qualified individual,
33.24 	(ii) $9,600 for a single taxpayer, and
33.25 	(iii) $6,000 for a married taxpayer filing a separate federal return.
33.26 	(2) The qualified individual's initial subtraction base amount, then, must be reduced by 
33.27 	the sum of nontaxable retirement and disability benefits and one-half of the amount of 
33.28 	adjusted gross income in excess of the following thresholds:
33.29 	(i) $18,000 for a married taxpayer filing a joint return if both spouses are qualified 
33.30 	individuals,
33.31 	(ii) $14,500 for a single taxpayer or for a married couple filing a joint return if only one 
33.32 	spouse is a qualified individual, and
34.1 	(iii) $9,000 for a married taxpayer filing a separate federal return.
34.2 	(3) In the case of a qualified individual who is under the age of 65, the maximum amount 
34.3 	of the subtraction base may not exceed the taxpayer's disability income.
34.4 	(4) The resulting amount is the subtraction base amount.

34.5 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
34.6 	31, 2018.

34.7 	Sec. 50. Minnesota Statutes 2018, section 290.091, subdivision 2, is amended to read:
34.8 		Subd. 2.Definitions. For purposes of the tax imposed by this section, the following 
34.9 	terms have the meanings given.
34.10 	(a) "Alternative minimum taxable income" means the sum of the following for the taxable 
34.11 	year:
34.12 	(1) the taxpayer's federal alternative minimum taxable income as defined in section 
34.13 	55(b)(2) of the Internal Revenue Code;
34.14 	(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum 
34.15 	taxable income, but excluding:
34.16 	(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
34.17 	(ii) the medical expense deduction;
34.18 	(iii) the casualty, theft, and disaster loss deduction; and
34.19 	(iv) the impairment-related work expenses of a disabled person;
34.20 	(3) for depletion allowances computed under section 613A(c) of the Internal Revenue 
34.21 	Code, with respect to each property (as defined in section 614 of the Internal Revenue Code), 
34.22 	to the extent not included in federal alternative minimum taxable income, the excess of the 
34.23 	deduction for depletion allowable under section 611 of the Internal Revenue Code for the 
34.24 	taxable year over the adjusted basis of the property at the end of the taxable year (determined 
34.25 	without regard to the depletion deduction for the taxable year);
34.26 	(4) to the extent not included in federal alternative minimum taxable income, the amount 
34.27 	of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue 
34.28 	Code determined without regard to subparagraph (E);
34.29 	(5) to the extent not included in federal alternative minimum taxable income, the amount 
34.30 	of interest income as provided by section 290.0131, subdivision 2; and
35.1 	(6) the amount of addition required by section 290.0131, subdivisions 9to 11;, 10, and 
35.2 	16;
35.3 	(7) the deduction allowed under section 199A of the Internal Revenue Code, to the extent 
35.4 	not included in the addition required under clause (6); and
35.5 	(8) to the extent not included in federal alternative minimum taxable income, the amount 
35.6 	of foreign-derived intangible income deducted under section 250 of the Internal Revenue 
35.7 	Code;
35.8 	less the sum of the amounts determined under the following:
35.9 	(i) interest income as defined in section 290.0132, subdivision 2;
35.10 	(ii) an overpayment of state income tax as provided by section 290.0132, subdivision 
35.11 	3, to the extent included in federal alternative minimum taxable income;
35.12 	(iii) the amount of investment interest paid or accrued within the taxable year on 
35.13 	indebtedness to the extent that the amount does not exceed net investment income, as defined 
35.14 	in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted 
35.15 	in computing federal adjusted gross income;
35.16 	(iv) amounts subtracted from federal taxable or adjusted gross income as provided by 
35.17 	section 290.0132, subdivisions 7, 9 to 15, 17, 21, 24, and 26 to 29; and
35.18 	(v) the amount of the net operating loss allowed under section 290.095, subdivision 11, 
35.19 	paragraph (c); and
35.20 	(vi) the amount allowable as a Minnesota itemized deduction under section 290.0122, 
35.21 	subdivision 7.
35.22 	In the case of an estate or trust, alternative minimum taxable income must be computed 
35.23 	as provided in section 59(c) of the Internal Revenue Code, except alternative minimum 
35.24 	taxable income must be increased by the addition in section 290.0131, subdivision 16.
35.25 	(b) "Investment interest" means investment interest as defined in section 163(d)(3) of 
35.26 	the Internal Revenue Code.
35.27 	(c) "Net minimum tax" means the minimum tax imposed by this section.
35.28 	(d) "Regular tax" means the tax that would be imposed under this chapter (without regard 
35.29 	to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed 
35.30 	under this chapter.
36.1 	(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income 
36.2 	after subtracting the exemption amount determined under subdivision 3.

36.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
36.4 	31, 2018.

36.5 	Sec. 51. Minnesota Statutes 2018, section 290.091, subdivision 3, is amended to read:
36.6 		Subd. 3.Exemption amount. (a) For purposes of computing the alternative minimum 
36.7 	tax, the exemption amount is, for taxable years beginning after December 31, 2005, $60,000 
36.8 	for married couples filing joint returns, $30,000 for married individuals filing separate 
36.9 	returns, estates, and trusts, and $45,000 for unmarried individuals.
36.10 	(b) The exemption amount determined under this subdivision is subject to the phase out 
36.11 	under section 55(d)(3) 55(d)(2) of the Internal Revenue Code, except that alternative 
36.12 	minimum taxable income as determined under this section must be substituted in the 
36.13 	computation of the phase out, and section 55(d)(4) of the Internal Revenue Code does not 
36.14 	apply.
36.15 	(c) For taxable years beginning after December 31, 2006, The commissioner shall 
36.16 	annually adjust the exemption amount under amounts in paragraph (a) must be adjusted for 
36.17 	inflation. The commissioner shall adjust the exemption amount by the percentage determined 
36.18 	pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in section 
36.19 	1(f)(3)(B) the word "2005" shall be substituted for the word "1992." For 2007, the 
36.20 	commissioner shall then determine the percent change from the 12 months ending on August 
36.21 	31, 2005, to the 12 months ending on August 31, 2006, and in each subsequent year, from 
36.22 	the 12 months ending on August 31, 2005, to the 12 months ending on August 31 of the 
36.23 	year preceding the taxable year. The exemption amount as adjusted must be rounded to the 
36.24 	nearest $10. If the amount ends in $5, it must be rounded up to the nearest $10 amount. The 
36.25 	determination of the commissioner under this subdivision is not a rule under the 
36.26 	Administrative Procedure Act as provided in section 270C.22. The statutory year is taxable 
36.27 	year 2019.

36.28 	EFFECTIVE DATE. (a) The amendment to paragraph (b) is effective the day following 
36.29 	final enactment.
36.30 	(b) The amendment to paragraph (c) is effective for taxable years beginning after 
36.31 	December 31, 2019.

37.1 	Sec. 52. Minnesota Statutes 2018, section 290.0921, subdivision 2, is amended to read:
37.2 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
37.3 	meanings given them.
37.4 	(b) "Alternative minimum taxable net income" is alternative minimum taxable income,
37.5 	(1) less the exemption amount, and
37.6 	(2) apportioned or allocated to Minnesota under section 290.17, 290.191, or 290.20.
37.7 	(c) The "exemption amount" is $40,000, reduced, but not below zero, by 25 percent of 
37.8 	the excess of alternative minimum taxable income over $150,000.
37.9 	(d) "Minnesota alternative minimum taxable income" is alternative minimum taxable 
37.10 	net income, less the deductions for alternative tax net operating loss under subdivision 4; 
37.11 	and dividends received under subdivision 6. The sum of the deductions under this paragraph 
37.12 	may not exceed 90 percent of alternative minimum taxable net income. This limitation does 
37.13 	not apply to:
37.14 	(1) a deduction for dividends paid to or received from a corporation which is subject to 
37.15 	tax under section 290.36 and which is a member of an affiliated group of corporations as 
37.16 	defined by the Internal Revenue Code; or
37.17 	(2) a deduction for dividends received from a property and casualty insurer as defined 
37.18 	under section 60A.60, subdivision 8, which is a member of an affiliated group of corporations 
37.19 	as defined by the Internal Revenue Code and either: (i) the dividend is eliminated in 
37.20 	consolidation under Treasury Regulation 1.1502-14(a), as amended through December 31, 
37.21 	1989; or (ii) the dividend is deducted under an election under section 243(b) of the Internal 
37.22 	Revenue Code.
37.23 	(e) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended 
37.24 	through December 16, 2016.

37.25 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
37.26 	31, 2017.

37.27 	Sec. 53. Minnesota Statutes 2018, section 290.0921, subdivision 3, is amended to read:
37.28 		Subd. 3.Alternative minimum taxable income. "Alternative minimum taxable income" 
37.29 	is Minnesota net income as defined in section 290.01, subdivision 19, and includes the 
37.30 	adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e), (f), and (h) of 
37.31 	the Internal Revenue Code. If a corporation files a separate company Minnesota tax return, 
37.32 	the minimum tax must be computed on a separate company basis. If a corporation is part 
38.1 	of a tax group filing a unitary return, the minimum tax must be computed on a unitary basis. 
38.2 	The following adjustments must be made.
38.3 	(1) The portion of the depreciation deduction allowed for federal income tax purposes 
38.4 	under section 168(k) of the Internal Revenue Code that is required as an addition under 
38.5 	section 290.0133, subdivision 11, is disallowed in determining alternative minimum taxable 
38.6 	income.
38.7 	(2) The subtraction for depreciation allowed under section 290.0134, subdivision 13, is 
38.8 	allowed as a depreciation deduction in determining alternative minimum taxable income.
38.9 	(3) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d) 
38.10 	of the Internal Revenue Code does not apply.
38.11 	(4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal 
38.12 	Revenue Code does not apply.
38.13 	(5) The tax preference for depletion under section 57(a)(1) of the Internal Revenue Code 
38.14 	does not apply.
38.15 	(6) The tax preference for tax exempt interest under section 57(a)(5) of the Internal 
38.16 	Revenue Code does not apply.
38.17 	(7) The tax preference for charitable contributions of appreciated property under section 
38.18 	57(a)(6) of the Internal Revenue Code does not apply.
38.19 	(8) For purposes of calculating the adjustment for adjusted current earnings in section 
38.20 	56(g) of the Internal Revenue Code, the term "alternative minimum taxable income" as it 
38.21 	is used in section 56(g) of the Internal Revenue Code, means alternative minimum taxable 
38.22 	income as defined in this subdivision, determined without regard to the adjustment for 
38.23 	adjusted current earnings in section 56(g) of the Internal Revenue Code.
38.24 	(9) For purposes of determining the amount of adjusted current earnings under section 
38.25 	56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section 56(g)(4) 
38.26 	of the Internal Revenue Code with respect to (i) the amount of foreign dividend gross-up 
38.27 	subtracted as provided in section 290.0134, subdivision 2, or (ii) the amount of refunds of 
38.28 	income, excise, or franchise taxes subtracted as provided in section 290.0134, subdivision 
38.29 	8.
38.30 	(10) Alternative minimum taxable income excludes the income from operating in a job 
38.31 	opportunity building zone as provided under section 469.317.
39.1 	Items of tax preference must not be reduced below zero as a result of the modifications 
39.2 	in this subdivision.
39.3 	(11) The subtraction for disallowed section 280E expenses under section 290.0134, 
39.4 	subdivision 19, is allowed as a deduction in determining alternative minimum taxable 
39.5 	income.

39.6 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
39.7 	31, 2018.

39.8 	Sec. 54. Minnesota Statutes 2018, section 290.0922, subdivision 1, is amended to read:
39.9 		Subdivision 1.Imposition. (a) In addition to the tax imposed by this chapter without 
39.10 	regard to this section, the franchise tax imposed on a corporation required to file under 
39.11 	section 289A.08, subdivision 3, other than a corporation treated as an "S" corporation under 
39.12 	section 290.9725 for the taxable year includes a tax equal to the following amounts:

39.13
39.14	If the sum of the corporation's Minnesota 
property, payrolls, and sales or receipts is:
		the tax equals:
	
39.15			less than
		$
	930,000
		$
	0
		
39.16		$
	930,000
	to
	$
	1,869,999
		$
	190
		
39.17		$
	1,870,000
	to
	$
	9,339,999
		$
	560
		
39.18		$
	9,340,000
	to
	$
	18,679,999
		$
	1,870
		
39.19		$
	18,680,000
	to
	$
	37,359,999
		$
	3,740
		
39.20		$
	37,360,000
	or
	more
			$
	9,340
		
39.21 	(b) A tax is imposed for each taxable year on a corporation required to file a return under 
39.22 	section 289A.12, subdivision 3, that is treated as an "S" corporation under section 290.9725
39.23 	and on a partnership required to file a return under section 289A.12, subdivision 3, other 
39.24 	than a partnership that derives over 80 percent of its income from farming. The tax imposed 
39.25 	under this paragraph is due on or before the due date of the return for the taxpayer due under 
39.26 	section 289A.18, subdivision 1. The commissioner shall prescribe the return to be used for 
39.27 	payment of this tax. The tax under this paragraph is equal to the following amounts:

39.28
39.29
39.30
39.31	If the sum of the S corporation's 
or partnership's Minnesota 
property, payrolls, and sales or 
receipts is:
			the tax equals:
	
39.32			less than
		$
	930,000
		$
	0
		
39.33		$
	930,000
	to
	$
	1,869,999
		$
	190
		
39.34		$
	1,870,000
	to
	$
	9,339,999
		$
	560
		
39.35		$
	9,340,000
	to
	$
	18,679,999
		$
	1,870
		
40.1		$
	18,680,000
	to
	$
	37,359,999
		$
	3,740
		
40.2		$
	37,360,000
	or
	more
			$
	9,340
		
40.3 	(c) The commissioner shall annually adjust the dollar amounts of both the tax and the 
40.4 	property, payrolls, and sales or receipts thresholds in paragraphs (a) and (b) by the percentage 
40.5 	determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except 
40.6 	that in section 1(f)(3)(B) the word "2012" must be substituted for the word "1992." For 
40.7 	2014, the commissioner shall determine the percentage change from the 12 months ending 
40.8 	on August 31, 2012, to the 12 months ending on August 31, 2013, and in each subsequent 
40.9 	year, from the 12 months ending on August 31, 2012, to the 12 months ending on August 
40.10 	31 of the year preceding the taxable year. The determination of the commissioner pursuant 
40.11 	to this subdivision is not a "rule" subject to the Administrative Procedure Act contained in 
40.12 	chapter 14 as provided in section 270C.22. The statutory year is taxable year 2019. The tax 
40.13 	amounts as adjusted must be rounded to the nearest $10 amount and the threshold amounts 
40.14 	must be adjusted to the nearest $10,000 amount. For tax amounts that end in $5, the amount 
40.15 	is rounded up to the nearest $10 amount and for the threshold amounts that end in $5,000, 
40.16 	the amount is rounded up to the nearest $10,000.

40.17 	EFFECTIVE DATE. This section is effective for adjustments beginning with taxable 
40.18 	years beginning after December 31, 2019.

40.19 	Sec. 55. Minnesota Statutes 2018, section 290.095, subdivision 2, is amended to read:
40.20 		Subd. 2.Defined and limited. (a) The term "net operating loss" as used in this section 
40.21 	shall mean a net operating loss as defined in section 172(c) of the Internal Revenue Code, 
40.22 	with the modifications specified in subdivision 4. The deductions provided in section 290.21
40.23 	cannot be used in the determination of a net operating loss.
40.24 	(b) The term "net operating loss deduction" as used in this section means the aggregate 
40.25 	of the net operating loss carryovers to the taxable year, computed in accordance with 
40.26 	subdivision 3. The provisions of section 172(b) of the Internal Revenue Code relating to 
40.27 	the carryback of net operating losses, do not apply.
40.28 	(c) The amount of net operating loss deduction under this section must not exceed 80 
40.29 	percent of taxable net income in a single taxable year.

40.30 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
40.31 	after December 31, 2017.

41.1 	Sec. 56. Minnesota Statutes 2018, section 290.17, subdivision 2, is amended to read:
41.2 		Subd. 2.Income not derived from conduct of a trade or business. The income of a 
41.3 	taxpayer subject to the allocation rules that is not derived from the conduct of a trade or 
41.4 	business must be assigned in accordance with paragraphs (a) to (f):
41.5 	(a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in section 
41.6 	3401(a) and, (f), and (i) of the Internal Revenue Code is assigned to this state if, and to the 
41.7 	extent that, the work of the employee is performed within it; all other income from such 
41.8 	sources is treated as income from sources without this state.
41.9 	Severance pay shall be considered income from labor or personal or professional services.
41.10 	(2) In the case of an individual who is a nonresident of Minnesota and who is an athlete 
41.11 	or entertainer, income from compensation for labor or personal services performed within 
41.12 	this state shall be determined in the following manner:
41.13 	(i) the amount of income to be assigned to Minnesota for an individual who is a 
41.14 	nonresident salaried athletic team employee shall be determined by using a fraction in which 
41.15 	the denominator contains the total number of days in which the individual is under a duty 
41.16 	to perform for the employer, and the numerator is the total number of those days spent in 
41.17 	Minnesota. For purposes of this paragraph, off-season training activities, unless conducted 
41.18 	at the team's facilities as part of a team imposed program, are not included in the total number 
41.19 	of duty days. Bonuses earned as a result of play during the regular season or for participation 
41.20 	in championship, play-off, or all-star games must be allocated under the formula. Signing 
41.21 	bonuses are not subject to allocation under the formula if they are not conditional on playing 
41.22 	any games for the team, are payable separately from any other compensation, and are 
41.23 	nonrefundable; and
41.24 	(ii) the amount of income to be assigned to Minnesota for an individual who is a 
41.25 	nonresident, and who is an athlete or entertainer not listed in item (i), for that person's athletic 
41.26 	or entertainment performance in Minnesota shall be determined by assigning to this state 
41.27 	all income from performances or athletic contests in this state.
41.28 	(3) For purposes of this section, amounts received by a nonresident as "retirement income" 
41.29 	as defined in section (b)(1) of the State Income Taxation of Pension Income Act, Public 
41.30 	Law 104-95, are not considered income derived from carrying on a trade or business or 
41.31 	from wages or other compensation for work an employee performed in Minnesota, and are 
41.32 	not taxable under this chapter.
42.1 	(b) Income or gains from tangible property located in this state that is not employed in 
42.2 	the business of the recipient of the income or gains must be assigned to this state.
42.3 	(c) Income or gains from intangible personal property not employed in the business of 
42.4 	the recipient of the income or gains must be assigned to this state if the recipient of the 
42.5 	income or gains is a resident of this state or is a resident trust or estate.
42.6 	Gain on the sale of a partnership interest is allocable to this state in the ratio of the 
42.7 	original cost of partnership tangible property in this state to the original cost of partnership 
42.8 	tangible property everywhere, determined at the time of the sale. If more than 50 percent 
42.9 	of the value of the partnership's assets consists of intangibles, gain or loss from the sale of 
42.10 	the partnership interest is allocated to this state in accordance with the sales factor of the 
42.11 	partnership for its first full tax period immediately preceding the tax period of the partnership 
42.12 	during which the partnership interest was sold.
42.13 	Gain on the sale of an interest in a single member limited liability company that is 
42.14 	disregarded for federal income tax purposes is allocable to this state as if the single member 
42.15 	limited liability company did not exist and the assets of the limited liability company are 
42.16 	personally owned by the sole member.
42.17 	Gain on the sale of goodwill or income from a covenant not to compete that is connected 
42.18 	with a business operating all or partially in Minnesota is allocated to this state to the extent 
42.19 	that the income from the business in the year preceding the year of sale was allocable to 
42.20 	Minnesota under subdivision 3.
42.21 	When an employer pays an employee for a covenant not to compete, the income allocated 
42.22 	to this state is in the ratio of the employee's service in Minnesota in the calendar year 
42.23 	preceding leaving the employment of the employer over the total services performed by the 
42.24 	employee for the employer in that year.
42.25 	(d) Income from winnings on a bet made by an individual while in Minnesota is assigned 
42.26 	to this state. In this paragraph, "bet" has the meaning given in section 609.75, subdivision 
42.27 	2, as limited by section 609.75, subdivision 3, clauses (1), (2), and (3).
42.28 	(e) All items of gross income not covered in paragraphs (a) to (d) and not part of the 
42.29 	taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile.
42.30 	(f) For the purposes of this section, working as an employee shall not be considered to 
42.31 	be conducting a trade or business.

42.32 	EFFECTIVE DATE. This section is effective retroactively for wages paid after 
42.33 	December 31, 2017.

43.1 	Sec. 57. Minnesota Statutes 2018, section 290.21, is amended by adding a subdivision to 
43.2 	read:
43.3 		Subd. 9.Controlled foreign corporations. The net income of a domestic corporation 
43.4 	that is included pursuant to section 951 of the Internal Revenue Code is dividend income.

43.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

43.6 	Sec. 58. Minnesota Statutes 2018, section 290.34, is amended by adding a subdivision to 
43.7 	read:
43.8 		Subd. 5.Interest limitation. The interest expense limitation under section 163(j) of the 
43.9 	Internal Revenue Code must be computed using the combined report entities included in 
43.10 	the unitary group under section 290.17, subdivision 4. The limitation must be aggregated 
43.11 	between combined report entities consistent with the application to a consolidated group 
43.12 	for federal income tax purposes.

43.13 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
43.14 	after December 31, 2017.

43.15 	Sec. 59. Minnesota Statutes 2018, section 290.92, subdivision 1, is amended to read:
43.16 		Subdivision 1.Definitions. (1) Wages. For purposes of this section, the term "wages" 
43.17 	means the same as that term is defined in section 3401(a) and, (f), and (i) of the Internal 
43.18 	Revenue Code.
43.19 	(2) Payroll period. For purposes of this section the term "payroll period" means a period 
43.20 	for which a payment of wages is ordinarily made to the employee by the employee's 
43.21 	employer, and the term "miscellaneous payroll period" means a payroll period other than a 
43.22 	daily, weekly, biweekly, semimonthly, monthly, quarterly, semiannual, or annual payroll 
43.23 	period.
43.24 	(3) Employee. For purposes of this section the term "employee" means any resident 
43.25 	individual performing services for an employer, either within or without, or both within and 
43.26 	without the state of Minnesota, and every nonresident individual performing services within 
43.27 	the state of Minnesota, the performance of which services constitute, establish, and determine 
43.28 	the relationship between the parties as that of employer and employee. As used in the 
43.29 	preceding sentence, the term "employee" includes an officer of a corporation, and an officer, 
43.30 	employee, or elected official of the United States, a state, or any political subdivision thereof, 
43.31 	or the District of Columbia, or any agency or instrumentality of any one or more of the 
43.32 	foregoing.
44.1 	(4) Employer. For purposes of this section the term "employer" means any person, 
44.2 	including individuals, fiduciaries, estates, trusts, partnerships, limited liability companies, 
44.3 	and corporations transacting business in or deriving any income from sources within the 
44.4 	state of Minnesota for whom an individual performs or performed any service, of whatever 
44.5 	nature, as the employee of such person, except that if the person for whom the individual 
44.6 	performs or performed the services does not have control of the payment of the wages for 
44.7 	such services, the term "employer," except for purposes of paragraph (1), means the person 
44.8 	having control of the payment of such wages. As used in the preceding sentence, the term 
44.9 	"employer" includes any corporation, individual, estate, trust, or organization which is 
44.10 	exempt from taxation under section 290.05 and further includes, but is not limited to, officers 
44.11 	of corporations who have control, either individually or jointly with another or others, of 
44.12 	the payment of the wages.
44.13 	(5) Number of withholding exemptions claimed. For purposes of this section, the term 
44.14 	"number of withholding exemptions claimed" means the number of withholding exemptions 
44.15 	claimed in a withholding exemption certificate in effect under subdivision 5, except that if 
44.16 	no such certificate is in effect, the number of withholding exemptions claimed shall be 
44.17 	considered to be zero.

44.18 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
44.19 	after December 31, 2017.

44.20 	Sec. 60. Minnesota Statutes 2018, section 290.92, subdivision 5, is amended to read:
44.21 		Subd. 5.Exemptions. (1) Entitlement. An employee receiving wages shall on any day 
44.22 	be entitled to claim withholding exemptions in a number not to exceed the number of 
44.23 	withholding exemptions that the employee claims and that are allowable pursuant to section 
44.24 	3402(f)(1), (m), and (n) of the Internal Revenue Code for federal withholding purposes, 
44.25 	except:
44.26 	(i) the standard deduction amount for the purposes of section 3402(f)(1)(E) of the Internal 
44.27 	Revenue Code shall be the amount calculated under section 290.0123, subdivision 1; and
44.28 	(ii) the exemption amount for the purposes of section 3402(f)(1)(A) of the Internal 
44.29 	Revenue Code shall be the amount calculated under section 290.0121, subdivision 1.
44.30 	(2) Withholding exemption certificate. The provisions concerning exemption certificates 
44.31 	contained in section 3402(f)(2) and (3) of the Internal Revenue Code shall apply.
44.32 	(3) Form of certificate. Withholding exemption certificates shall be in such form and 
44.33 	contain such information as the commissioner may by rule prescribe.

45.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
45.2 	31, 2018.

45.3 	Sec. 61. [290.993] SPECIAL LIMITED ADJUSTMENT.
45.4 	(a) For an individual income taxpayer subject to tax under section 290.06, subdivision 
45.5 	2c, or a partnership that elects to file a composite return under section 289A.08, subdivision 
45.6 	7, for taxable years beginning after December 31, 2017, and before January 1, 2019, the 
45.7 	following special rules apply:
45.8 	(1) an individual income taxpayer may: (i) take the standard deduction; or (ii) make an 
45.9 	election under section 63(e) of the Internal Revenue Code to itemize, for Minnesota individual 
45.10 	income tax purposes, regardless of the choice made on their federal return; and
45.11 	(2) there is an adjustment to tax equal to the difference between the tax calculated under 
45.12 	this chapter using the Internal Revenue Code as amended through December 16, 2016, and 
45.13 	the tax calculated under this chapter using the Internal Revenue Code amended through 
45.14 	December 31, 2018, before the application of credits. The end result must be zero additional 
45.15 	tax due or refund.
45.16 	(b) The adjustment in paragraph (a), clause (2), does not apply to any changes due to 
45.17 	sections 11012, 13101, 13201, 13202, 13203, 13204, 13205, 13207, 13301, 13302, 13303, 
45.18 	13313, 13502, 13503, 13801, 14101, 14102, 14211 through 14215, and 14501 of Public 
45.19 	Law 115-97; and section 40411 of Public Law 115-123.

45.20 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
45.21 	after December 31, 2017, and before January 1, 2019.

45.22 	Sec. 62. Minnesota Statutes 2018, section 290A.03, subdivision 3, is amended to read:
45.23 		Subd. 3.Income. (a) "Income" means the sum of the following:
45.24 	(1) federal adjusted gross income as defined in the Internal Revenue Code; and
45.25 	(2) the sum of the following amounts to the extent not included in clause (1):
45.26 	(i) all nontaxable income;
45.27 	(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, 
45.28 	paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss 
45.29 	carryover allowed under section 469(b) of the Internal Revenue Code;
46.1 	(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a 
46.2 	solvent individual excluded from gross income under section 108(g) of the Internal Revenue 
46.3 	Code;
46.4 	(iv) cash public assistance and relief;
46.5 	(v) any pension or annuity (including railroad retirement benefits, all payments received 
46.6 	under the federal Social Security Act, Supplemental Security Income, and veterans benefits), 
46.7 	which was not exclusively funded by the claimant or spouse, or which was funded exclusively 
46.8 	by the claimant or spouse and which funding payments were excluded from federal adjusted 
46.9 	gross income in the years when the payments were made;
46.10 	(vi) interest received from the federal or a state government or any instrumentality or 
46.11 	political subdivision thereof;
46.12 	(vii) workers' compensation;
46.13 	(viii) nontaxable strike benefits;
46.14 	(ix) the gross amounts of payments received in the nature of disability income or sick 
46.15 	pay as a result of accident, sickness, or other disability, whether funded through insurance 
46.16 	or otherwise;
46.17 	(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 
46.18 	1986, as amended through December 31, 1995;
46.19 	(xi) contributions made by the claimant to an individual retirement account, including 
46.20 	a qualified voluntary employee contribution; simplified employee pension plan; 
46.21 	self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of 
46.22 	the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal 
46.23 	Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for 
46.24 	the claimant and spouse;
46.25 	(xii) to the extent not included in federal adjusted gross income, distributions received 
46.26 	by the claimant or spouse from a traditional or Roth style retirement account or plan;
46.27 	(xiii) nontaxable scholarship or fellowship grants;
46.28 	(xiv) the amount of deduction allowed under section 199 of the Internal Revenue Code
46.29 	alimony received to the extent not included in the recipient's income;
46.30 	(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue 
46.31 	Code;
47.1 	(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue 
47.2 	Code; and
47.3 	(xvii) the amount deducted for certain expenses of elementary and secondary school 
47.4 	teachers under section 62(a)(2)(D) of the Internal Revenue Code.
47.5 	In the case of an individual who files an income tax return on a fiscal year basis, the 
47.6 	term "federal adjusted gross income" shall mean federal adjusted gross income reflected in 
47.7 	the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced 
47.8 	by the amount of a net operating loss carryback or carryforward or a capital loss carryback 
47.9 	or carryforward allowed for the year.
47.10 	(b) "Income" does not include:
47.11 	(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
47.12 	(2) amounts of any pension or annuity which was exclusively funded by the claimant 
47.13 	or spouse and which funding payments were not excluded from federal adjusted gross 
47.14 	income in the years when the payments were made;
47.15 	(3) to the extent included in federal adjusted gross income, amounts contributed by the 
47.16 	claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed 
47.17 	the retirement base amount reduced by the amount of contributions excluded from federal 
47.18 	adjusted gross income, but not less than zero;
47.19 	(4) surplus food or other relief in kind supplied by a governmental agency;
47.20 	(5) relief granted under this chapter;
47.21 	(6) child support payments received under a temporary or final decree of dissolution or 
47.22 	legal separation; or
47.23 	(7) restitution payments received by eligible individuals and excludable interest as 
47.24 	defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, 
47.25 	Public Law 107-16.; or
47.26 	(8) alimony paid.
47.27 	(c) The sum of the following amounts may be subtracted from income:
47.28 	(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
47.29 	(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
47.30 	(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
47.31 	(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
48.1 	(5) for the claimant's fifth dependent, the exemption amount; and
48.2 	(6) if the claimant or claimant's spouse was disabled or attained the age of 65 on or 
48.3 	before December 31 of the year for which the taxes were levied or rent paid, the exemption 
48.4 	amount.
48.5 	(d) For purposes of this subdivision, the following terms have the meanings given:
48.6 	(1) "exemption amount" means the exemption amount under section 151(d) of the Internal 
48.7 	Revenue Code 290.0121, subdivision 1, paragraph (b), for the taxable year for which the 
48.8 	income is reported;
48.9 	(2) "retirement base amount" means the deductible amount for the taxable year for the 
48.10 	claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for 
48.11 	inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard 
48.12 	to whether the claimant or spouse claimed a deduction; and
48.13 	(3) "traditional or Roth style retirement account or plan" means retirement plans under 
48.14 	sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.

48.15 	EFFECTIVE DATE. This section is effective beginning with refunds based on property 
48.16 	taxes payable in 2020 and rent paid in 2019.

48.17 	Sec. 63. Minnesota Statutes 2018, section 290A.03, subdivision 12, is amended to read:
48.18 		Subd. 12.Gross rent. (a) "Gross rent" means rental paid for the right of occupancy, at 
48.19 	arm's length, of a homestead, exclusive of charges for any medical services furnished by 
48.20 	the landlord as a part of the rental agreement, whether expressly set out in the rental 
48.21 	agreement or not.
48.22 	(b) The gross rent of a resident of a nursing home or intermediate care facility is $350 
48.23 	per month. The gross rent of a resident of an adult foster care home is $550 per month. 
48.24 	Beginning for rent paid in 2002, The commissioner shall annually adjust for inflation the 
48.25 	gross rent amounts stated in this paragraph. The adjustment must be made in accordance 
48.26 	with section 1(f) of the Internal Revenue Code, except that for purposes of this paragraph 
48.27 	the percentage increase shall be determined from the year ending on June 30, 2001, to the 
48.28 	year ending on June 30 of the year in which the rent is paid. The commissioner shall round 
48.29 	the gross rents to the nearest $10 amount. If the amount ends in $5, the commissioner shall 
48.30 	round it up to the next $10 amount. The determination of the commissioner under this 
48.31 	paragraph is not a rule under the Administrative Procedure Act as provided in section 
48.32 	270C.22. The statutory year is 2018.
49.1 	(c) If the landlord and tenant have not dealt with each other at arm's length and the 
49.2 	commissioner determines that the gross rent charged was excessive, the commissioner may 
49.3 	adjust the gross rent to a reasonable amount for purposes of this chapter.
49.4 	(d) Any amount paid by a claimant residing in property assessed pursuant to section 
49.5 	273.124, subdivision 3, 4, 5, or 6 for occupancy in that property shall be excluded from 
49.6 	gross rent for purposes of this chapter. However, property taxes imputed to the homestead 
49.7 	of the claimant or the dwelling unit occupied by the claimant that qualifies for homestead 
49.8 	treatment pursuant to section 273.124, subdivision 3, 4, 5, or 6 shall be included within the 
49.9 	term "property taxes payable" as defined in subdivision 13, notwithstanding the fact that 
49.10 	ownership is not in the name of the claimant.

49.11 	EFFECTIVE DATE. This section is effective for adjustments beginning with refunds 
49.12 	based on rent paid in 2019.

49.13 	Sec. 64. Minnesota Statutes 2018, section 290A.03, subdivision 15, is amended to read:
49.14 		Subd. 15.Internal Revenue Code.  "Internal Revenue Code" means the Internal Revenue 
49.15 	Code of 1986, as amended through December 16, 2016 December 31, 2018.

49.16 	EFFECTIVE DATE. This section is effective beginning with refunds based on property 
49.17 	taxes payable in 2020 and rent paid in 2019.

49.18 	Sec. 65. Minnesota Statutes 2018, section 290A.04, subdivision 4, is amended to read:
49.19 		Subd. 4.Inflation adjustment. (a) Beginning for property tax refunds payable in calendar 
49.20 	year 2002, The commissioner shall annually adjust the dollar amounts of the income 
49.21 	thresholds and the maximum refunds under subdivisions 2 and 2a for inflation. The 
49.22 	commissioner shall make the inflation adjustments in accordance with section 1(f) of the 
49.23 	Internal Revenue Code, except that for purposes of this subdivision the percentage increase 
49.24 	shall be determined as provided in this subdivision as provided in section 270C.22. The 
49.25 	statutory year is 2018.
49.26 	(b) In adjusting the dollar amounts of the income thresholds and the maximum refunds 
49.27 	under subdivision 2 for inflation, the percentage increase shall be determined from the year 
49.28 	ending on June 30, 2013, to the year ending on June 30 of the year preceding that in which 
49.29 	the refund is payable.
49.30 	(c) In adjusting the dollar amounts of the income thresholds and the maximum refunds 
49.31 	under subdivision 2a for inflation, the percentage increase shall be determined from the 
50.1 	year ending on June 30, 2013, to the year ending on June 30 of the year preceding that in 
50.2 	which the refund is payable.
50.3 	(d) The commissioner shall use the appropriate percentage increase to annually adjust 
50.4 	the income thresholds and maximum refunds under subdivisions 2 and 2a for inflation 
50.5 	without regard to whether or not the income tax brackets are adjusted for inflation in that 
50.6 	year. The commissioner shall round the thresholds and the maximum amounts, as adjusted 
50.7 	to the nearest $10 amount. If the amount ends in $5, the commissioner shall round it up to 
50.8 	the next $10 amount.
50.9 	(e)The commissioner shall annually announce the adjusted refund schedule at the same 
50.10 	time provided under section 290.06. The determination of the commissioner under this 
50.11 	subdivision is not a rule under the Administrative Procedure Act.

50.12 	EFFECTIVE DATE. This section is effective for adjustments for refunds based on 
50.13 	rent paid in 2019 and property taxes payable in 2020.

50.14 	Sec. 66. Minnesota Statutes 2018, section 291.005, subdivision 1, is amended to read:
50.15 		Subdivision 1.Scope. Unless the context otherwise clearly requires, the following terms 
50.16 	used in this chapter shall have the following meanings:
50.17 	(1) "Commissioner" means the commissioner of revenue or any person to whom the 
50.18 	commissioner has delegated functions under this chapter.
50.19 	(2) "Federal gross estate" means the gross estate of a decedent as required to be valued 
50.20 	and otherwise determined for federal estate tax purposes under the Internal Revenue Code, 
50.21 	increased by the value of any property in which the decedent had a qualifying income interest 
50.22 	for life and for which an election was made under section 291.03, subdivision 1d, for 
50.23 	Minnesota estate tax purposes, but was not made for federal estate tax purposes.
50.24 	(3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986, 
50.25 	as amended through December 16, 2016 December 31, 2018.
50.26 	(4) "Minnesota gross estate" means the federal gross estate of a decedent after (a) 
50.27 	excluding therefrom any property included in the estate which has its situs outside Minnesota, 
50.28 	and (b) including any property omitted from the federal gross estate which is includable in 
50.29 	the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.
50.30 	(5) "Nonresident decedent" means an individual whose domicile at the time of death 
50.31 	was not in Minnesota.
51.1 	(6) "Personal representative" means the executor, administrator or other person appointed 
51.2 	by the court to administer and dispose of the property of the decedent. If there is no executor, 
51.3 	administrator or other person appointed, qualified, and acting within this state, then any 
51.4 	person in actual or constructive possession of any property having a situs in this state which 
51.5 	is included in the federal gross estate of the decedent shall be deemed to be a personal 
51.6 	representative to the extent of the property and the Minnesota estate tax due with respect 
51.7 	to the property.
51.8 	(7) "Resident decedent" means an individual whose domicile at the time of death was 
51.9 	in Minnesota. The provisions of section 290.01, subdivision 7, paragraphs (c) and (d), apply 
51.10 	to determinations of domicile under this chapter.
51.11 	(8) "Situs of property" means, with respect to:
51.12 	(i) real property, the state or country in which it is located;
51.13 	(ii) tangible personal property, the state or country in which it was normally kept or 
51.14 	located at the time of the decedent's death or for a gift of tangible personal property within 
51.15 	three years of death, the state or country in which it was normally kept or located when the 
51.16 	gift was executed;
51.17 	(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue 
51.18 	Code, owned by a nonresident decedent and that is normally kept or located in this state 
51.19 	because it is on loan to an organization, qualifying as exempt from taxation under section 
51.20 	501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is 
51.21 	deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
51.22 	(iv) intangible personal property, the state or country in which the decedent was domiciled 
51.23 	at death or for a gift of intangible personal property within three years of death, the state or 
51.24 	country in which the decedent was domiciled when the gift was executed.
51.25 	For a nonresident decedent with an ownership interest in a pass-through entity with 
51.26 	assets that include real or tangible personal property, situs of the real or tangible personal 
51.27 	property, including qualified works of art, is determined as if the pass-through entity does 
51.28 	not exist and the real or tangible personal property is personally owned by the decedent. If 
51.29 	the pass-through entity is owned by a person or persons in addition to the decedent, ownership 
51.30 	of the property is attributed to the decedent in proportion to the decedent's capital ownership 
51.31 	share of the pass-through entity.
51.32 	(9) "Pass-through entity" includes the following:
52.1 	(i) an entity electing S corporation status under section 1362 of the Internal Revenue 
52.2 	Code;
52.3 	(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
52.4 	(iii) a single-member limited liability company or similar entity, regardless of whether 
52.5 	it is taxed as an association or is disregarded for federal income tax purposes under Code 
52.6 	of Federal Regulations, title 26, section 301.7701-3; or
52.7 	(iv) a trust to the extent the property is includible includable in the decedent's federal 
52.8 	gross estate; but excludes
52.9 	(v) an entity whose ownership interest securities are traded on an exchange regulated 
52.10 	by the Securities and Exchange Commission as a national securities exchange under section 
52.11 	6 of the Securities Exchange Act, United States Code, title 15, section 78f.

52.12 	EFFECTIVE DATE. This section is effective the day following final enactment except 
52.13 	the changes incorporated by federal changes are effective retroactively at the same time the 
52.14 	changes became effective for federal purposes.

52.15 	Sec. 67. Minnesota Statutes 2018, section 297A.68, subdivision 25, is amended to read:
52.16 		Subd. 25.Sale of property used in a trade or business. (a) The sale of tangible personal 
52.17 	property primarily used in a trade or business is exempt if the sale is not made in the normal 
52.18 	course of business of selling that kind of property and if one of the following conditions is 
52.19 	satisfied:
52.20 	(1) the sale occurs in a transaction subject to or described in section 118, 331, 332, 336, 
52.21 	337, 338, 351, 355, 368, 721, 731, 1031, or 1033 of the Internal Revenue Code, as amended 
52.22 	through December 16, 2016;
52.23 	(2) the sale is between members of a controlled group as defined in section 1563(a) of 
52.24 	the Internal Revenue Code;
52.25 	(3) the sale is a sale of farm machinery;
52.26 	(4) the sale is a farm auction sale;
52.27 	(5) the sale is a sale of substantially all of the assets of a trade or business; or
52.28 	(6) the total amount of gross receipts from the sale of trade or business property made 
52.29 	during the calendar month of the sale and the preceding 11 calendar months does not exceed 
52.30 	$1,000.
53.1 	The use, storage, distribution, or consumption of tangible personal property acquired as 
53.2 	a result of a sale exempt under this subdivision is also exempt.
53.3 	(b) For purposes of this subdivision, the following terms have the meanings given.
53.4 	(1) A "farm auction" is a public auction conducted by a licensed auctioneer if substantially 
53.5 	all of the property sold consists of property used in the trade or business of farming and 
53.6 	property not used primarily in a trade or business.
53.7 	(2) "Trade or business" includes the assets of a separate division, branch, or identifiable 
53.8 	segment of a trade or business if, before the sale, the income and expenses attributable to 
53.9 	the separate division, branch, or identifiable segment could be separately ascertained from 
53.10 	the books of account or record (the lease or rental of an identifiable segment does not qualify 
53.11 	for the exemption).
53.12 	(3) A "sale of substantially all of the assets of a trade or business" must occur as a single 
53.13 	transaction or a series of related transactions within the 12-month period beginning on the 
53.14 	date of the first sale of assets intended to qualify for the exemption provided in paragraph 
53.15 	(a), clause (5).

53.16 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
53.17 	made after December 31, 2017.

53.18 	Sec. 68. Minnesota Statutes 2018, section 297B.03, is amended to read:
53.19 	297B.03 EXEMPTIONS.
53.20 	There is specifically exempted from the provisions of this chapter and from computation 
53.21 	of the amount of tax imposed by it the following:
53.22 	(1) purchase or use, including use under a lease purchase agreement or installment sales 
53.23 	contract made pursuant to section 465.71, of any motor vehicle by the United States and its 
53.24 	agencies and instrumentalities and by any person described in and subject to the conditions 
53.25 	provided in section 297A.67, subdivision 11;
53.26 	(2) purchase or use of any motor vehicle by any person who was a resident of another 
53.27 	state or country at the time of the purchase and who subsequently becomes a resident of 
53.28 	Minnesota, provided the purchase occurred more than 60 days prior to the date such person 
53.29 	began residing in the state of Minnesota and the motor vehicle was registered in the person's 
53.30 	name in the other state or country;
53.31 	(3) purchase or use of any motor vehicle by any person making a valid election to be 
53.32 	taxed under the provisions of section 297A.90;
54.1 	(4) purchase or use of any motor vehicle previously registered in the state of Minnesota 
54.2 	when such transfer constitutes a transfer within the meaning of section 118, 331, 332, 336, 
54.3 	337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal Revenue Code, 
54.4 	as amended through December 16, 2016;
54.5 	(5) purchase or use of any vehicle owned by a resident of another state and leased to a 
54.6 	Minnesota-based private or for-hire carrier for regular use in the transportation of persons 
54.7 	or property in interstate commerce provided the vehicle is titled in the state of the owner or 
54.8 	secured party, and that state does not impose a sales tax or sales tax on motor vehicles used 
54.9 	in interstate commerce;
54.10 	(6) purchase or use of a motor vehicle by a private nonprofit or public educational 
54.11 	institution for use as an instructional aid in automotive training programs operated by the 
54.12 	institution. "Automotive training programs" includes motor vehicle body and mechanical 
54.13 	repair courses but does not include driver education programs;
54.14 	(7) purchase of a motor vehicle by an ambulance service licensed under section 144E.10
54.15 	when that vehicle is equipped and specifically intended for emergency response or for 
54.16 	providing ambulance service;
54.17 	(8) purchase of a motor vehicle by or for a public library, as defined in section 134.001, 
54.18 	subdivision 2, as a bookmobile or library delivery vehicle;
54.19 	(9) purchase of a ready-mixed concrete truck;
54.20 	(10) purchase or use of a motor vehicle by a town for use exclusively for road 
54.21 	maintenance, including snowplows and dump trucks, but not including automobiles, vans, 
54.22 	or pickup trucks;
54.23 	(11) purchase or use of a motor vehicle by a corporation, society, association, foundation, 
54.24 	or institution organized and operated exclusively for charitable, religious, or educational 
54.25 	purposes, except a public school, university, or library, but only if the vehicle is:
54.26 	(i) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a 
54.27 	passenger automobile, as defined in section 168.002, if the automobile is designed and used 
54.28 	for carrying more than nine persons including the driver; and
54.29 	(ii) intended to be used primarily to transport tangible personal property or individuals, 
54.30 	other than employees, to whom the organization provides service in performing its charitable, 
54.31 	religious, or educational purpose;
54.32 	(12) purchase of a motor vehicle for use by a transit provider exclusively to provide 
54.33 	transit service is exempt if the transit provider is either (i) receiving financial assistance or 
55.1 	reimbursement under section 174.24 or 473.384, or (ii) operating under section 174.29, 
55.2 	473.388, or 473.405;
55.3 	(13) purchase or use of a motor vehicle by a qualified business, as defined in section 
55.4 	469.310, located in a job opportunity building zone, if the motor vehicle is principally 
55.5 	garaged in the job opportunity building zone and is primarily used as part of or in direct 
55.6 	support of the person's operations carried on in the job opportunity building zone. The 
55.7 	exemption under this clause applies to sales, if the purchase was made and delivery received 
55.8 	during the duration of the job opportunity building zone. The exemption under this clause 
55.9 	also applies to any local sales and use tax;
55.10 	(14) purchase of a leased vehicle by the lessee who was a participant in a lease-to-own 
55.11 	program from a charitable organization that is:
55.12 	(i) described in section 501(c)(3) of the Internal Revenue Code; and
55.13 	(ii) licensed as a motor vehicle lessor under section 168.27, subdivision 4; and
55.14 	(15) purchase of a motor vehicle used exclusively as a mobile medical unit for the 
55.15 	provision of medical or dental services by a federally qualified health center, as defined 
55.16 	under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus Budget 
55.17 	Reconciliation Act of 1990.

55.18 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
55.19 	made after December 31, 2017.

55.20 	Sec. 69. Minnesota Statutes 2018, section 462D.06, subdivision 1, is amended to read:
55.21 		Subdivision 1.Subtraction. (a) As provided in section 290.0132, subdivision 25, an 
55.22 	account holder is allowed a subtraction from the federal taxable adjusted gross income equal 
55.23 	to interest or dividends earned on the first-time home buyer savings account during the 
55.24 	taxable year.
55.25 	(b) The subtraction under paragraph (a) is allowed each year for the taxable years 
55.26 	including and following the taxable year in which the account was established. No person 
55.27 	other than the account holder is allowed a subtraction under this section.

55.28 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
55.29 	31, 2018.

56.1 	Sec. 70. Minnesota Statutes 2018, section 462D.06, subdivision 2, is amended to read:
56.2 		Subd. 2.Addition. (a) As provided in section 290.0131, subdivision 14, an account 
56.3 	holder must add to federal taxable adjusted gross income the following amounts:
56.4 	(1) the amount in excess of the total contributions for all taxable years that is withdrawn 
56.5 	and used for other than eligible costs, or for a transfer permitted under section 462D.04, 
56.6 	subdivision 2; and
56.7 	(2) the amount remaining in the first-time home buyer savings account at the close of 
56.8 	the tenth taxable year that exceeds the total contributions to the account for all taxable years.
56.9 	(b) For an account that received a transfer under section 462D.04, subdivision 2, the 
56.10 	ten-year period under paragraph (a), clause (2), ends at the close of the earliest taxable year 
56.11 	that applies to either account under that clause.

56.12 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
56.13 	31, 2018.

56.14 	Sec. 71. Minnesota Statutes 2018, section 469.316, subdivision 1, is amended to read:
56.15 		Subdivision 1.Application. An individual, estate, or trust operating a trade or business 
56.16 	in a job opportunity building zone, and an individual, estate, or trust making a qualifying 
56.17 	investment in a qualified business operating in a job opportunity building zone qualifies for 
56.18 	the exemptions from taxes imposed under chapter 290, as provided in this section. The 
56.19 	exemptions provided under this section apply only to the extent that the income otherwise 
56.20 	would be taxable under chapter 290. Subtractions under this section from federal adjusted 
56.21 	gross income, federal taxable income, alternative minimum taxable income, or any other 
56.22 	base subject to tax are limited to the amount that otherwise would be included in the tax 
56.23 	base absent the exemption under this section. This section applies only to taxable years 
56.24 	beginning during the duration of the job opportunity building zone.

56.25 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
56.26 	31, 2018.

56.27 	Sec. 72. SPECIAL PROVISION FOR TAX YEAR 2017.
 56.28 	Notwithstanding any law to the contrary or other provision of this article, sections 40202 
56.29 	and 40203 of Public Law 115-123 shall not apply for the purpose of calculating net income 
56.30 	under Minnesota Statutes, section 290.01, subdivision 6, for taxable years beginning after 
56.31 	December 31, 2016, and before January 1, 2018.

57.1 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
57.2 	after December 31, 2016, and before January 1, 2018.

57.3 	Sec. 73. REVISOR INSTRUCTION.
 57.4 	The commissioner of revenue must promptly notify the revisor of statutes in writing of 
57.5 	the adjusted statutory year amounts for each of the statutory sections that are indexed for 
57.6 	inflation under Minnesota Statutes, section 270C.22. The revisor shall publish the updated 
57.7 	statutory amounts in the 2019 Supplement of Minnesota Statutes.

57.8 	Sec. 74. REPEALER.
 57.9 	Minnesota Statutes 2018, sections 290.0131, subdivisions 7, 11, 12, and 13; 290.0132, 
57.10 	subdivision 8; 290.0133, subdivisions 13 and 14; and 290.10, subdivision 2, are repealed.

57.11 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
57.12 	31, 2018.

57.13 	ARTICLE 2
57.14 	INDIVIDUAL INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES

57.15 	Section 1. Minnesota Statutes 2018, section 116J.8737, subdivision 1, is amended to read:
57.16 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
57.17 	the meanings given.
57.18 	(b) "Qualified small business" means a business that has been certified by the 
57.19 	commissioner under subdivision 2.
57.20 	(c) "Qualified investor" means an investor who has been certified by the commissioner 
57.21 	under subdivision 3.
57.22 	(d) "Qualified fund" means a pooled angel investment network fund that has been certified 
57.23 	by the commissioner under subdivision 4.
57.24 	(e) "Qualified investment" means a cash investment in a qualified small business of a 
57.25 	minimum of:
57.26 	(1) $10,000 in a calendar year by a qualified investor; or
57.27 	(2) $7,500 in a calendar year by a qualified investor in qualified greater Minnesota 
57.28 	businesses, or veteran-owned, minority-owned, or women-owned businesses in Minnesota; 
57.29 	or
58.1 	(2) (3) $30,000 in a calendar year by a qualified fund.
58.2 	A qualified investment must be made in exchange for common stock, a partnership or 
58.3 	membership interest, preferred stock, debt with mandatory conversion to equity, or an 
58.4 	equivalent ownership interest as determined by the commissioner.
58.5 	(f) "Family" means a family member within the meaning of the Internal Revenue Code, 
58.6 	section 267(c)(4).
58.7 	(g) "Pass-through entity" means a corporation that for the applicable taxable year is 
58.8 	treated as an S corporation or a general partnership, limited partnership, limited liability 
58.9 	partnership, trust, or limited liability company and which for the applicable taxable year is 
58.10 	not taxed as a corporation under chapter 290.
58.11 	(h) "Intern" means a student of an accredited institution of higher education, or a former 
58.12 	student who has graduated in the past six months from an accredited institution of higher 
58.13 	education, who is employed by a qualified small business in a nonpermanent position for 
58.14 	a duration of nine months or less that provides training and experience in the primary 
58.15 	business activity of the business.
58.16 	(i) "Liquidation event" means a conversion of qualified investment for cash, cash and 
58.17 	other consideration, or any other form of equity or debt interest.
58.18 	(j) "Qualified greater Minnesota business" means a qualified small business that is also 
58.19 	certified by the commissioner as a qualified greater Minnesota business under subdivision 
58.20 	2, paragraph (h).
58.21 	(k) "Minority group member" means a United States citizen who is Asian, Pacific 
58.22 	Islander, Black, Hispanic, or Native American.
58.23 	(l) "Minority-owned business" means a business for which one or more minority group 
58.24 	members:
58.25 	(1) own at least 50 percent of the business, or, in the case of a publicly owned business, 
58.26 	own at least 51 percent of the stock; and
58.27 	(2) manage the business and control the daily business operations.
58.28 	(m) "Women" means persons of the female gender.
58.29 	(n) "Women-owned business" means a business for which one or more women:
58.30 	(1) own at least 50 percent of the business, or, in the case of a publicly owned business, 
58.31 	own at least 51 percent of the stock; and
59.1 	(2) manage the business and control the daily business operations.
59.2 	(o) "Veteran" has the meaning given in section 197.447.
59.3 	(p) "Veteran-owned business" means a business for which one or more veterans:
59.4 	(1) own at least 50 percent of the business, or, in the case of a publicly owned business, 
59.5 	own at least 51 percent of the stock; and
59.6 	(2) manage the business and control the daily business operations.
59.7 	(o) (q) "Officer" means a person elected or appointed by the board of directors to manage 
59.8 	the daily operations of the qualified small business.
59.9 	(p) (r) "Principal" means a person having authority to act on behalf of the qualified small 
59.10 	business.

59.11 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
59.12 	31, 2018.

59.13 	Sec. 2. Minnesota Statutes 2018, section 116J.8737, subdivision 2, is amended to read:
59.14 		Subd. 2.Certification of qualified small businesses. (a) Businesses may apply to the 
59.15 	commissioner for certification as a qualified small business or qualified greater Minnesota 
59.16 	small business for a calendar year. The application must be in the form and be made under 
59.17 	the procedures specified by the commissioner, accompanied by an application fee of $150. 
59.18 	Application fees are deposited in the small business investment tax credit administration 
59.19 	account in the special revenue fund. The application for certification for 2010 must be made 
59.20 	available on the department's website by August 1, 2010. Applications for subsequent years'
59.21 	certification must be made available on the department's website by November 1 of the 
59.22 	preceding year.
59.23 	(b) Within 30 days of receiving an application for certification under this subdivision, 
59.24 	the commissioner must either certify the business as satisfying the conditions required of a 
59.25 	qualified small business or qualified greater Minnesota small business, request additional 
59.26 	information from the business, or reject the application for certification. If the commissioner 
59.27 	requests additional information from the business, the commissioner must either certify the 
59.28 	business or reject the application within 30 days of receiving the additional information. If 
59.29 	the commissioner neither certifies the business nor rejects the application within 30 days 
59.30 	of receiving the original application or within 30 days of receiving the additional information 
59.31 	requested, whichever is later, then the application is deemed rejected, and the commissioner 
60.1 	must refund the $150 application fee. A business that applies for certification and is rejected 
60.2 	may reapply.
60.3 	(c) To receive certification as a qualified small business, a business must satisfy all of 
60.4 	the following conditions:
60.5 	(1) the business has its headquarters in Minnesota;
60.6 	(2) at least: (i) 51 percent of the business's employees are employed in Minnesota; (ii) 
60.7 	51 percent of the business's total payroll is paid or incurred in the state; and (iii) 51 percent 
60.8 	of the total value of all contractual agreements to which the business is a party in connection 
60.9 	with its primary business activity is for services performed under contract in Minnesota, 
60.10 	unless the business obtains a waiver under paragraph (i);
60.11 	(3) the business is engaged in, or is committed to engage in, innovation in Minnesota in 
60.12 	one of the following as its primary business activity:
60.13 	(i) using proprietary technology to add value to a product, process, or service in a qualified 
60.14 	high-technology field;
60.15 	(ii) researching or developing a proprietary product, process, or service in a qualified 
60.16 	high-technology field;
60.17 	(iii) researching or developing a proprietary product, process, or service in the fields of 
60.18 	agriculture, tourism, forestry, mining, manufacturing, or transportation; or
60.19 	(iv) researching, developing, or producing a new proprietary technology for use in the 
60.20 	fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;
60.21 	(4) other than the activities specifically listed in clause (3), the business is not engaged 
60.22 	in real estate development, insurance, banking, lending, lobbying, political consulting, 
60.23 	information technology consulting, wholesale or retail trade, leisure, hospitality, 
60.24 	transportation, construction, ethanol production from corn, or professional services provided 
60.25 	by attorneys, accountants, business consultants, physicians, or health care consultants;
60.26 	(5) the business has fewer than 25 employees;
60.27 	(6) the business must pay its employees annual wages of at least 175 percent of the 
60.28 	federal poverty guideline for the year for a family of four and must pay its interns annual 
60.29 	wages of at least 175 percent of the federal minimum wage used for federally covered 
60.30 	employers, except that this requirement must be reduced proportionately for employees and 
60.31 	interns who work less than full-time, and does not apply to an executive, officer, or member 
61.1 	of the board of the business, or to any employee who owns, controls, or holds power to vote 
61.2 	more than 20 percent of the outstanding securities of the business;
61.3 	(7) the business has (i) not been in operation for more than ten years, or (ii) not been in 
61.4 	operation for more than 20 years if the business is engaged in the research, development, 
61.5 	or production of medical devices or pharmaceuticals for which United States Food and Drug 
61.6 	Administration approval is required for use in the treatment or diagnosis of a disease or 
61.7 	condition;
61.8 	(8) the business has not previously received private equity investments of more than 
61.9 	$4,000,000;
61.10 	(9) the business is not an entity disqualified under section 80A.50, paragraph (b), clause 
61.11 	(3); and
61.12 	(10) the business has not issued securities that are traded on a public exchange.
61.13 	(d) In applying the limit under paragraph (c), clause (5), the employees in all members 
61.14 	of the unitary business, as defined in section 290.17, subdivision 4, must be included.
61.15 	(e) In order for a qualified investment in a business to be eligible for tax credits:
61.16 	(1) the business must have applied for and received certification for the calendar year 
61.17 	in which the investment was made prior to the date on which the qualified investment was 
61.18 	made;
61.19 	(2) the business must not have issued securities that are traded on a public exchange;
61.20 	(3) the business must not issue securities that are traded on a public exchange within 
61.21 	180 days after the date on which the qualified investment was made; and
61.22 	(4) the business must not have a liquidation event within 180 days after the date on 
61.23 	which the qualified investment was made.
61.24 	(f) The commissioner must maintain a list of qualified small businesses and qualified 
61.25 	greater Minnesota businesses certified under this subdivision for the calendar year and make 
61.26 	the list accessible to the public on the department's website.
61.27 	(g) For purposes of this subdivision, the following terms have the meanings given:
61.28 	(1) "qualified high-technology field" includes aerospace, agricultural processing, 
61.29 	renewable energy, energy efficiency and conservation, environmental engineering, food 
61.30 	technology, cellulosic ethanol, information technology, materials science technology, 
61.31 	nanotechnology, telecommunications, biotechnology, medical device products, 
61.32 	pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar fields;
62.1 	(2) "proprietary technology" means the technical innovations that are unique and legally 
62.2 	owned or licensed by a business and includes, without limitation, those innovations that are 
62.3 	patented, patent pending, a subject of trade secrets, or copyrighted; and
62.4 	(3) "greater Minnesota" means the area of Minnesota located outside of the metropolitan 
62.5 	area as defined in section 473.121, subdivision 2.
62.6 	(h) To receive certification as a qualified greater Minnesota business, a business must 
62.7 	satisfy all of the requirements of paragraph (c) and must satisfy the following conditions:
62.8 	(1) the business has its headquarters in greater Minnesota; and
62.9 	(2) at least: (i) 51 percent of the business's employees are employed in greater Minnesota; 
62.10 	(ii) 51 percent of the business's total payroll is paid or incurred in greater Minnesota; and 
62.11 	(iii) 51 percent of the total value of all contractual agreements to which the business is a 
62.12 	party in connection with its primary business activity is for services performed under contract 
62.13 	in greater Minnesota, unless the business obtains a waiver under paragraph (i).
62.14 	(i) The commissioner must exempt a business from the requirement under paragraph 
62.15 	(c), clause (2), item (iii), if the business certifies to the commissioner that the services 
62.16 	required under a contract in connection with the primary business activity cannot be 
62.17 	performed in Minnesota if the business otherwise qualifies as a qualified small business, or 
62.18 	in greater Minnesota if the business otherwise qualifies as a qualified greater Minnesota 
62.19 	business. The business must submit the certification required under this paragraph every 
62.20 	six months from the month the exemption was granted. The exemption allowed under this 
62.21 	paragraph must be submitted in a form and manner prescribed by the commissioner.

62.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

62.23 	Sec. 3. Minnesota Statutes 2018, section 116J.8737, subdivision 3, is amended to read:
62.24 		Subd. 3.Certification of qualified investors. (a) Investors may apply to the 
62.25 	commissioner for certification as a qualified investor for a taxable year. The application 
62.26 	must be in the form and be made under the procedures specified by the commissioner, 
62.27 	accompanied by an application fee of $350. Application fees are deposited in the small 
62.28 	business investment tax credit administration account in the special revenue fund. The 
62.29 	application for certification for 2010 must be made available on the department's website 
62.30 	by August 1, 2010. Applications for subsequent years' certification must be made available 
62.31 	on the department's website by November 1 of the preceding year.
62.32 	(b) Within 30 days of receiving an application for certification under this subdivision, 
62.33 	the commissioner must either certify the investor as satisfying the conditions required of a 
63.1 	qualified investor, request additional information from the investor, or reject the application 
63.2 	for certification. If the commissioner requests additional information from the investor, the 
63.3 	commissioner must either certify the investor or reject the application within 30 days of 
63.4 	receiving the additional information. If the commissioner neither certifies the investor nor 
63.5 	rejects the application within 30 days of receiving the original application or within 30 days 
63.6 	of receiving the additional information requested, whichever is later, then the application 
63.7 	is deemed rejected, and the commissioner must refund the $350 application fee. An investor 
63.8 	who applies for certification and is rejected may reapply.
63.9 	(c) To receive certification, an investor must (1) be a natural person; and (2) certify to 
63.10 	the commissioner that the investor will only invest in a transaction that is exempt under 
63.11 	section 80A.46, clause (13) or (14), in a security exempt under section 80A.461, or in a 
63.12 	security registered under section 80A.50, paragraph (b).
63.13 	(d) In order for a qualified investment in a qualified small business to be eligible for tax 
63.14 	credits, a qualified investor who makes the investment must have applied for and received 
63.15 	certification for the calendar year prior to making the qualified investment, except in the 
63.16 	case of an investor who is not an accredited investor, within the meaning of Regulation D 
63.17 	of the Securities and Exchange Commission, Code of Federal Regulations, title 17, section 
63.18 	230.501, paragraph (a), application for certification may be made within 30 days after 
63.19 	making the qualified investment.

63.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

63.21 	Sec. 4. Minnesota Statutes 2018, section 116J.8737, subdivision 4, is amended to read:
63.22 		Subd. 4.Certification of qualified funds. (a) A pass-through entity may apply to the 
63.23 	commissioner for certification as a qualified fund for a calendar year. The application must 
63.24 	be in the form and be made under the procedures specified by the commissioner, accompanied 
63.25 	by an application fee of $1,000. Application fees are deposited in the small business 
63.26 	investment tax credit administration account in the special revenue fund. The application 
63.27 	for certification for 2010 of qualified funds must be made available on the department's 
63.28 	website by August 1, 2010. Applications for subsequent years' certification must be made 
63.29 	available by November 1 of the preceding year.
63.30 	(b) Within 30 days of receiving an application for certification under this subdivision, 
63.31 	the commissioner must either certify the fund as satisfying the conditions required of a 
63.32 	qualified fund, request additional information from the fund, or reject the application for 
63.33 	certification. If the commissioner requests additional information from the fund, the 
63.34 	commissioner must either certify the fund or reject the application within 30 days of receiving 
64.1 	the additional information. If the commissioner neither certifies the fund nor rejects the 
64.2 	application within 30 days of receiving the original application or within 30 days of receiving 
64.3 	the additional information requested, whichever is later, then the application is deemed 
64.4 	rejected, and the commissioner must refund the $1,000 application fee. A fund that applies 
64.5 	for certification and is rejected may reapply.
64.6 	(c) To receive certification, a fund must:
64.7 	(1) invest or intend to invest in qualified small businesses;
64.8 	(2) be organized as a pass-through entity; and
64.9 	(3) have at least three separate investors, of whom at least three whose investment is 
64.10 	made in the certified business and who seek a tax credit allocation satisfy the conditions in 
64.11 	subdivision 3, paragraph (c).
64.12 	(d) Investments in the fund may consist of equity investments or notes that pay interest 
64.13 	or other fixed amounts, or any combination of both.
64.14 	(e) In order for a qualified investment in a qualified small business to be eligible for tax 
64.15 	credits, a qualified fund that makes the investment must have applied for and received 
64.16 	certification for the calendar year prior to making the qualified investment.

64.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

64.18 	Sec. 5. Minnesota Statutes 2018, section 116J.8737, subdivision 5, is amended to read:
64.19 		Subd. 5.Credit allowed. (a)(1) A qualified investor or qualified fund is eligible for a 
64.20 	credit equal to 25 percent of the qualified investment in a qualified small business. 
64.21 	Investments made by a pass-through entity qualify for a credit only if the entity is a qualified 
64.22 	fund. The commissioner must not allocate more than $15,000,000 $10,000,000 in credits 
64.23 	to qualified investors or qualified funds for the taxable years beginning after December 31, 
64.24 	2013, and before January 1, 2017, and must not allocate more than $10,000,000 in credits 
64.25 	to qualified investors or qualified funds for taxable years beginning after December 31, 
64.26 	2016, and before January 1, 2018; and (2) for taxable years beginning after December 31, 
64.27 	2014, and before January 1, 2018, listed in paragraph (i). For each taxable year, 50 percent 
64.28 	must be allocated to credits for qualifying investments in qualified greater Minnesota 
64.29 	businesses and minority- or women-owned qualified small businesses in Minnesota. Any 
64.30 	portion of a taxable year's credits that is reserved for qualifying investments in greater 
64.31 	Minnesota businesses and minority- or women-owned qualified small businesses in 
64.32 	Minnesota that is not allocated by September 30 of the taxable year is available for allocation 
64.33 	to other credit applications beginning on October 1. Any portion of a taxable year's credits 
65.1 	that is not allocated by the commissioner does not cancel and may be carried forward to 
65.2 	subsequent taxable years until all credits have been allocated.
65.3 	(b) The commissioner may not allocate more than a total maximum amount in credits 
65.4 	for a taxable year to a qualified investor for the investor's cumulative qualified investments 
65.5 	as an individual qualified investor and as an investor in a qualified fund; for married couples 
65.6 	filing joint returns the maximum is $250,000, and for all other filers the maximum is 
65.7 	$125,000. The commissioner may not allocate more than a total of $1,000,000 in credits 
65.8 	over all taxable years for qualified investments in any one qualified small business.
65.9 	(c) The commissioner may not allocate a credit to a qualified investor either as an 
65.10 	individual qualified investor or as an investor in a qualified fund if, at the time the investment 
65.11 	is proposed:
65.12 	(1) the investor is an officer or principal of the qualified small business; or
65.13 	(2) the investor, either individually or in combination with one or more members of the 
65.14 	investor's family, owns, controls, or holds the power to vote 20 percent or more of the 
65.15 	outstanding securities of the qualified small business.
65.16 	A member of the family of an individual disqualified by this paragraph is not eligible for a 
65.17 	credit under this section. For a married couple filing a joint return, the limitations in this 
65.18 	paragraph apply collectively to the investor and spouse. For purposes of determining the 
65.19 	ownership interest of an investor under this paragraph, the rules under section 267(c) and 
65.20 	267(e) of the Internal Revenue Code apply.
65.21 	(d) Applications for tax credits for 2010 must be made available on the department's 
65.22 	website by September 1, 2010, and the department must begin accepting applications by 
65.23 	September 1, 2010. Applications for subsequent years must be made available by November 
65.24 	1 of the preceding year.
65.25 	(e) Qualified investors and qualified funds must apply to the commissioner for tax credits. 
65.26 	Tax credits must be allocated to qualified investors or qualified funds in the order that the 
65.27 	tax credit request applications are filed with the department. The commissioner must approve 
65.28 	or reject tax credit request applications within 15 days of receiving the application. The 
65.29 	investment specified in the application must be made within 60 days of the allocation of 
65.30 	the credits. If the investment is not made within 60 days, the credit allocation is canceled 
65.31 	and available for reallocation. A qualified investor or qualified fund that fails to invest as 
65.32 	specified in the application, within 60 days of allocation of the credits, must notify the 
65.33 	commissioner of the failure to invest within five business days of the expiration of the 
65.34 	60-day investment period.
66.1 	(f) All tax credit request applications filed with the department on the same day must 
66.2 	be treated as having been filed contemporaneously. If two or more qualified investors or 
66.3 	qualified funds file tax credit request applications on the same day, and the aggregate amount 
66.4 	of credit allocation claims exceeds the aggregate limit of credits under this section or the 
66.5 	lesser amount of credits that remain unallocated on that day, then the credits must be allocated 
66.6 	among the qualified investors or qualified funds who filed on that day on a pro rata basis 
66.7 	with respect to the amounts claimed. The pro rata allocation for any one qualified investor 
66.8 	or qualified fund is the product obtained by multiplying a fraction, the numerator of which 
66.9 	is the amount of the credit allocation claim filed on behalf of a qualified investor and the 
66.10 	denominator of which is the total of all credit allocation claims filed on behalf of all 
66.11 	applicants on that day, by the amount of credits that remain unallocated on that day for the 
66.12 	taxable year.
66.13 	(g) A qualified investor or qualified fund, or a qualified small business acting on their 
66.14 	behalf, must notify the commissioner when an investment for which credits were allocated 
66.15 	has been made, and the taxable year in which the investment was made. A qualified fund 
66.16 	must also provide the commissioner with a statement indicating the amount invested by 
66.17 	each investor in the qualified fund based on each investor's share of the assets of the qualified 
66.18 	fund at the time of the qualified investment. After receiving notification that the investment 
66.19 	was made, the commissioner must issue credit certificates for the taxable year in which the 
66.20 	investment was made to the qualified investor or, for an investment made by a qualified 
66.21 	fund, to each qualified investor who is an investor in the fund. The certificate must state 
66.22 	that the credit is subject to revocation if the qualified investor or qualified fund does not 
66.23 	hold the investment in the qualified small business for at least three years, consisting of the 
66.24 	calendar year in which the investment was made and the two following years. The three-year 
66.25 	holding period does not apply if:
66.26 	(1) the investment by the qualified investor or qualified fund becomes worthless before 
66.27 	the end of the three-year period;
66.28 	(2) 80 percent or more of the assets of the qualified small business is sold before the end 
66.29 	of the three-year period;
66.30 	(3) the qualified small business is sold before the end of the three-year period;
66.31 	(4) the qualified small business's common stock begins trading on a public exchange 
66.32 	before the end of the three-year period; or
66.33 	(5) the qualified investor dies before the end of the three-year period.
67.1 	(h) The commissioner must notify the commissioner of revenue of credit certificates 
67.2 	issued under this section.
67.3 	(i) The credit allowed under this subdivision is effective for each of the following taxable 
67.4 	years:
67.5 	(1) taxable years beginning after December 31, 2018, and before January 1, 2020; and
67.6 	(2) taxable years beginning after December 31, 2020, and before January 1, 2022.

67.7 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
67.8 	31, 2018.

67.9 	Sec. 6. Minnesota Statutes 2018, section 116J.8737, subdivision 6, is amended to read:
67.10 		Subd. 6.Annual reports. (a) By February 1 of each year each qualified small business 
67.11 	that received an investment that qualified for a credit, and each qualified investor and 
67.12 	qualified fund that made an investment that qualified for a credit, must submit an annual 
67.13 	report to the commissioner and pay a filing fee of $100 as required under this subdivision. 
67.14 	Each qualified investor and qualified fund must submit reports for three years following 
67.15 	each year in which it made an investment that qualified for a credit, and each qualified small 
67.16 	business must submit reports for five years following the year in which it received an 
67.17 	investment qualifying for a credit. Reports must be made in the form required by the 
67.18 	commissioner. All filing fees collected are deposited in the small business investment tax 
67.19 	credit administration account in the special revenue fund.
67.20 	(b) A report from a qualified small business must certify that the business satisfies the 
67.21 	following requirements:
67.22 	(1) the business has its headquarters in Minnesota;
67.23 	(2) at least 51 percent of the business's employees are employed in Minnesota, and 51 
67.24 	percent of the business's total payroll is paid or incurred in the state;
67.25 	(3) that the business is engaged in, or is committed to engage in, innovation in Minnesota 
67.26 	as defined under subdivision 2; and
67.27 	(4) that the business meets the payroll requirements in subdivision 2, paragraph (c), 
67.28 	clause (6).
67.29 	(c) Reports from qualified investors must certify that the investor remains invested in 
67.30 	the qualified small business as required by subdivision 5, paragraph (g).
68.1 	(d) Reports from qualified funds must certify that the fund remains invested in the 
68.2 	qualified small business as required by subdivision 5, paragraph (g).
68.3 	(e) A qualified small business that ceases all operations and becomes insolvent must file 
68.4 	a final annual report in the form required by the commissioner documenting its insolvency. 
68.5 	In following years the business is exempt from the annual reporting requirement, the report 
68.6 	filing fee, and the fine for failure to file a report.
68.7 	(f) A qualified small business, qualified investor, or qualified fund that fails to file an 
68.8 	annual report by February 1 as required under this subdivision is subject to a $500 $100
68.9 	fine.
68.10 	(g) A qualified investor or qualified fund that fails to file an annual report by April 1 
68.11 	may, at the commissioner's discretion, have any credit allocated and certified to the investor 
68.12 	or fund revoked and such credit must be repaid by the investor.
68.13 	(h) A qualified business that fails to file an annual report by April 1 may, at the 
68.14 	commissioner's discretion, be subject to the credit repayment provisions in subdivision 7, 
68.15 	paragraph (b).

68.16 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
68.17 	31, 2018.

68.18 	Sec. 7. Minnesota Statutes 2018, section 116J.8737, subdivision 12, is amended to read:
68.19 		Subd. 12.Sunset. This section expires for taxable years beginning after December 31, 
68.20 	2017 2021, except that reporting requirements under subdivision 6 and revocation of credits 
68.21 	under subdivision 7 remain in effect through 2019 2023 for qualified investors and qualified 
68.22 	funds, and through 2021 2025 for qualified small businesses, reporting requirements under 
68.23 	subdivision 9 remain in effect through 2022 2021, and the appropriation in subdivision 11 
68.24 	remains in effect through 2021 2025.

68.25 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
68.26 	31, 2018.

68.27 	Sec. 8. Minnesota Statutes 2018, section 256J.02, subdivision 2, is amended to read:
68.28 		Subd. 2.Use of money. State money appropriated for purposes of this section and TANF 
68.29 	block grant money must be used for:
68.30 	(1) financial assistance to or on behalf of any minor child who is a resident of this state 
68.31 	under section 256J.12;
69.1 	(2) the health care and human services training and retention program under chapter 
69.2 	116L, for costs associated with families with children with incomes below 200 percent of 
69.3 	the federal poverty guidelines;
69.4 	(3) the pathways program under section 116L.04, subdivision 1a;
69.5 	(4) welfare to work transportation authorized under Public Law 105-178;
69.6 	(5) reimbursements for the federal share of child support collections passed through to 
69.7 	the custodial parent;
69.8 	(6) reimbursements for the working family credit under section 290.0671;
69.9 	(7) program administration under this chapter;
69.10 	(8) (7) the diversionary work program under section 256J.95;
69.11 	(9) (8) the MFIP consolidated fund under section 256J.626; and
69.12 	(10) (9) the Minnesota Department of Health consolidated fund under Laws 2001, First 
69.13 	Special Session chapter 9, article 17, section 3, subdivision 2.

69.14 	EFFECTIVE DATE. This section is effective July 1, 2019.

69.15 	Sec. 9. Minnesota Statutes 2018, section 289A.31, subdivision 2, is amended to read:
69.16 		Subd. 2.Joint income tax returns. (a) If a joint income tax return is made by a husband 
69.17 	and wife, the liability for the tax is joint and several. A spouse who qualifies for relief from 
69.18 	a liability attributable to an underpayment under section 6015 subsection (b) of the Internal 
69.19 	Revenue Code, or determined by the commissioner of internal revenue for relief under 
69.20 	section 6015 subsection (f) of the Internal Revenue Code, is relieved of the state income 
69.21 	tax liability on the underpayment.
69.22 	(b) In the case of individuals who were a husband and wife prior to the dissolution of 
69.23 	their marriage or their legal separation, or prior to the death of one of the individuals, for 
69.24 	tax liabilities reported on a joint or combined return, the liability of each person is limited 
69.25 	to the proportion of the tax due on the return that equals that person's proportion of the total 
69.26 	tax due if the husband and wife filed separate returns for the taxable year. This provision 
69.27 	is effective only when the commissioner receives written notice of the marriage dissolution, 
69.28 	legal separation, or death of a spouse from the husband or wife. No refund may be claimed 
69.29 	by an ex-spouse, legally separated or widowed spouse for any taxes paid more than 60 days 
69.30 	before receipt by the commissioner of the written notice.
70.1 	(c) A request for calculation of separate liability pursuant to paragraph (b) for taxes 
70.2 	reported on a return must be made within six years after the due date of the return. For 
70.3 	calculation of separate liability for taxes assessed by the commissioner under section 289A.35
70.4 	or 289A.37, the request must be made within six years after the date of assessment. The 
70.5 	commissioner is not required to calculate separate liability pursuant to paragraph (b) if the 
70.6 	remaining unpaid liability for which recalculation is requested is $100 or less.

70.7 	EFFECTIVE DATE. This section is effective for returns first due for taxable years 
70.8 	beginning after December 31, 2018.

70.9 	Sec. 10. Minnesota Statutes 2018, section 290.01, subdivision 4a, is amended to read:
70.10 		Subd. 4a.Financial institution. (a) "Financial institution" means:
70.11 	(1) any corporation or other business entity registered (i) under state law as a bank 
70.12 	holding company; (ii) under the federal Bank Holding Company Act of 1956, as amended; 
70.13 	or (iii) as a savings and loan holding company under the federal National Housing Act, as 
70.14 	amended;
70.15 	(2) a national bank organized and existing as a national bank association pursuant to the 
70.16 	provisions of United States Code, title 12, chapter 2;
70.17 	(3) a savings association or federal savings bank as defined in United States Code, title 
70.18 	12, section 1813(b)(1);
70.19 	(4) any bank or thrift institution incorporated or organized under the laws of any state;
70.20 	(5) any corporation organized under United States Code, title 12, sections 611 to 631;
70.21 	(6) any agency or branch of a foreign depository as defined under United States Code, 
70.22 	title 12, section 3101;
70.23 	(7) any corporation or other business entity that is more than 50 percent owned, directly 
70.24 	or indirectly, by any person or business entity described in clauses (1) to (6), other than an 
70.25 	insurance company taxable under chapter 297I;
70.26 	(8) a corporation or other business entity that derives more than 50 percent of its total 
70.27 	gross income for financial accounting purposes from finance leases. For the purposes of 
70.28 	this clause, "gross income" means the average from the current tax year and immediately 
70.29 	preceding two years and excludes gross income from incidental or occasional transactions. 
70.30 	For purposes of this clause, "finance lease" means any lease transaction that is the functional 
70.31 	equivalent of an extension of credit and that transfers substantially all the benefits and risks 
70.32 	incident to the ownership of property, including any direct financing lease or leverage lease 
71.1 	that meets the criteria of Financial Accounting Standards Board Statement No. 13, accounting 
71.2 	for leases, or any other lease that is accounted for as financing by a lessor under generally 
71.3 	accepted accounting principles; or
71.4 	(9) any other person or business entity, other than an insurance company taxable under 
71.5 	chapter 297I, that derives more than 50 percent of its gross income from activities that an 
71.6 	entity described in clauses (2) to (6) or (8) is authorized to transact. For the purposes of this 
71.7 	clause, gross income does not include income from nonrecurring, extraordinary items.
71.8 	(b) The commissioner is authorized to exclude any person from the application of 
71.9 	paragraph (a), clause (9), if the person proves by clear and convincing evidence that the 
71.10 	person's income-producing activity is not in substantial competition with any person described 
71.11 	in paragraph (a), clauses (2) to (6) or (8).

71.12 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
71.13 	after December 31, 2016.

71.14 	Sec. 11. Minnesota Statutes 2018, section 290.01, is amended by adding a subdivision to 
71.15 	read:
71.16 		Subd. 5c.Disqualified captive insurance company. (a) "Captive insurance company" 
71.17 	means a company that:
71.18 	(1) is licensed as a captive insurance company under the laws of any state or foreign 
71.19 	country; or
71.20 	(2) derives less than 50 percent of its total premiums for the taxable year from sources 
71.21 	outside of the unitary business, as that term is used in section 290.17.
71.22 	(b) A captive insurance company is a "disqualified captive insurance company" if the 
71.23 	company:
71.24 	(1) pays less than 0.5 percent of its total premiums for the taxable year in tax under 
71.25 	chapter 297I or a comparable tax of another state; or
71.26 	(2) receives less than 50 percent of its gross receipts for the taxable year from premiums.
71.27 	(c) For purposes of this subdivision, "premiums" means amounts paid for arrangements 
71.28 	that constitute insurance for federal income tax purposes, but excludes return premiums, 
71.29 	premiums for reinsurance assumed from other insurance companies, and any other premiums 
71.30 	that are or would be exempt from taxation under section 297I.05 as a result of their type or 
71.31 	character, if the insurance was for business in Minnesota.

72.1 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
72.2 	after December 31, 2016.

72.3 	Sec. 12. Minnesota Statutes 2018, section 290.0132, subdivision 26, is amended to read:
72.4 		Subd. 26.Social Security benefits. (a) A portion of taxable Social Security benefits is 
72.5 	allowed as a subtraction. The subtraction equals the lesser of taxable Social Security benefits 
72.6 	or a maximum subtraction subject to the limits under paragraphs (b), (c), and (d).
72.7 	(b) For married taxpayers filing a joint return and surviving spouses, the maximum 
72.8 	subtraction equals $4,500 $5,150. The maximum subtraction is reduced by 20 percent of 
72.9 	provisional income over $77,000 $78,180. In no case is the subtraction less than zero.
72.10 	(c) For single or head-of-household taxpayers, the maximum subtraction equals $3,500
72.11 	$4,020. The maximum subtraction is reduced by 20 percent of provisional income over 
72.12 	$60,200 $61,080. In no case is the subtraction less than zero.
72.13 	(d) For married taxpayers filing separate returns, the maximum subtraction equals $2,250
72.14 	one-half the maximum subtraction for joint returns under paragraph (b). The maximum 
72.15 	subtraction is reduced by 20 percent of provisional income over $38,500 one-half the 
72.16 	threshold amount specified in paragraph (b). In no case is the subtraction less than zero.
72.17 	(e) For purposes of this subdivision, "provisional income" means modified adjusted 
72.18 	gross income as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of 
72.19 	the taxable Social Security benefits received during the taxable year, and "Social Security 
72.20 	benefits" has the meaning given in section 86(d)(1) of the Internal Revenue Code.
72.21 	(f) The commissioner shall adjust the maximum subtraction and threshold amounts in 
72.22 	paragraphs (b) to (d) by the percentage determined pursuant to the provisions of section 
72.23 	1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) of the Internal Revenue 
72.24 	Code the word "2016" shall be substituted for the word "1992." For 2018, the commissioner 
72.25 	shall then determine the percentage change from the 12 months ending on August 31, 2016, 
72.26 	to the 12 months ending on August 31, 2017, and in each subsequent year, from the 12 
72.27 	months ending on August 31, 2016, to the 12 months ending on August 31 of the year 
72.28 	preceding the taxable year. The determination of the commissioner pursuant to this 
72.29 	subdivision must not be considered a rule and is not subject to the Administrative Procedure 
72.30 	Act contained in chapter 14, including section 14.386 as provided in section 270C.22. The 
72.31 	statutory year is taxable year 2019. The maximum subtraction and threshold amounts as 
72.32 	adjusted must be rounded to the nearest $10 amount. If the amount ends in $5, the amount 
72.33 	is rounded up to the nearest $10 amount.

73.1 	EFFECTIVE DATE. (a) The amendments to paragraphs (b), (c), and (d) are effective 
73.2 	for taxable years beginning after December 31, 2018.
73.3 	(b) The amendments to paragraphs (a) and (e) are effective retroactively for taxable 
73.4 	years beginning after December 31, 2017.
73.5 	(c) The amendments to paragraph (f) are effective for adjustments beginning with taxable 
73.6 	years beginning after December 31, 2019.

73.7 	Sec. 13. Minnesota Statutes 2018, section 290.0132, is amended by adding a subdivision 
73.8 	to read:
73.9 		Subd. 29.Disallowed section 280E expenses; medical cannabis manufacturers. The 
73.10 	amount of expenses of a medical cannabis manufacturer, as defined under section 152.22, 
73.11 	subdivision 7, related to the business of medical cannabis under sections 152.21 to 152.37, 
73.12 	and not allowed for federal income tax purposes under section 280E of the Internal Revenue 
73.13 	Code is a subtraction.

73.14 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
73.15 	31, 2018.

73.16 	Sec. 14. Minnesota Statutes 2018, section 290.0134, is amended by adding a subdivision 
73.17 	to read:
73.18 		Subd. 19.Disallowed section 280E expenses; medical cannabis manufacturers. The 
73.19 	amount of expenses of a medical cannabis manufacturer, as defined under section 152.22, 
73.20 	subdivision 7, related to the business of medical cannabis under sections 152.21 to 152.37, 
73.21 	and not allowed for federal income tax purposes under section 280E of the Internal Revenue 
73.22 	Code is a subtraction.

73.23 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
73.24 	31, 2018.

73.25 	Sec. 15. Minnesota Statutes 2018, section 290.05, subdivision 1, is amended to read:
73.26 		Subdivision 1.Exempt entities. The following corporations, individuals, estates, trusts, 
73.27 	and organizations shall be exempted from taxation under this chapter, provided that every 
73.28 	such person or corporation claiming exemption under this chapter, in whole or in part, must 
73.29 	establish to the satisfaction of the commissioner the taxable status of any income or activity:
73.30 	(a) corporations, individuals, estates, and trusts engaged in the business of mining or 
73.31 	producing iron ore and mining, producing, or refining other ores, metals, and minerals, the 
74.1 	mining, production, or refining of which is subject to the occupation tax imposed by section 
74.2 	298.01; but if any such corporation, individual, estate, or trust engages in any other business 
74.3 	or activity or has income from any property not used in such business it shall be subject to 
74.4 	this tax computed on the net income from such property or such other business or activity. 
74.5 	Royalty shall not be considered as income from the business of mining or producing iron 
74.6 	ore within the meaning of this section;
74.7 	(b) the United States of America, the state of Minnesota or any political subdivision of 
74.8 	either agencies or instrumentalities, whether engaged in the discharge of governmental or 
74.9 	proprietary functions; and
74.10 	(c) any insurance company, as defined in section 290.17, subdivision 4, paragraph (j), 
74.11 	but including any insurance company licensed and domiciled in another state that grants, 
74.12 	on a reciprocal basis, exemption from retaliatory taxes other than a disqualified captive 
74.13 	insurance company.

74.14 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
74.15 	after December 31, 2016.

74.16 	Sec. 16. Minnesota Statutes 2018, section 290.06, subdivision 2c, is amended to read:
74.17 		Subd. 2c.Schedules of rates for individuals, estates, and trusts. (a) The income taxes 
74.18 	imposed by this chapter upon married individuals filing joint returns and surviving spouses 
74.19 	as defined in section 2(a) of the Internal Revenue Code must be computed by applying to 
74.20 	their taxable net income the following schedule of rates:
74.21 	(1) On the first $35,480 $38,770, 5.35 percent;
74.22 	(2) On all over $35,480 $38,770, but not over $140,960 $154,020, 7.05 6.8 percent;
74.23 	(3) On all over $140,960 $154,020, but not over $250,000 $269,010, 7.85 percent;
74.24 	(4) On all over $250,000 $269,010, 9.85 percent.
74.25 	Married individuals filing separate returns, estates, and trusts must compute their income 
74.26 	tax by applying the above rates to their taxable income, except that the income brackets 
74.27 	will be one-half of the above amounts.
74.28 	(b) The income taxes imposed by this chapter upon unmarried individuals must be 
74.29 	computed by applying to taxable net income the following schedule of rates:
74.30 	(1) On the first $24,270 $26,520, 5.35 percent;
74.31 	(2) On all over $24,270 $26,520, but not over $79,730 $87,110, 7.05 6.8 percent;
75.1 	(3) On all over $79,730 $87,110, but not over $150,000 $161,720, 7.85 percent;
75.2 	(4) On all over $150,000 $161,720, 9.85 percent.
75.3 	(c) The income taxes imposed by this chapter upon unmarried individuals qualifying as 
75.4 	a head of household as defined in section 2(b) of the Internal Revenue Code must be 
75.5 	computed by applying to taxable net income the following schedule of rates:
75.6 	(1) On the first $29,880 $32,650, 5.35 percent;
75.7 	(2) On all over $29,880 $32,650, but not over $120,070 $131,190, 7.05 6.8 percent;
75.8 	(3) On all over $120,070 $131,190, but not over $200,000 $214,980, 7.85 percent;
75.9 	(4) On all over $200,000 $214,980, 9.85 percent.
75.10 	(d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax 
75.11 	of any individual taxpayer whose taxable net income for the taxable year is less than an 
75.12 	amount determined by the commissioner must be computed in accordance with tables 
75.13 	prepared and issued by the commissioner of revenue based on income brackets of not more 
75.14 	than $100. The amount of tax for each bracket shall be computed at the rates set forth in 
75.15 	this subdivision, provided that the commissioner may disregard a fractional part of a dollar 
75.16 	unless it amounts to 50 cents or more, in which case it may be increased to $1.
75.17 	(e) An individual who is not a Minnesota resident for the entire year must compute the 
75.18 	individual's Minnesota income tax as provided in this subdivision. After the application of 
75.19 	the nonrefundable credits provided in this chapter, the tax liability must then be multiplied 
75.20 	by a fraction in which:
75.21 	(1) the numerator is the individual's Minnesota source federal adjusted gross income as 
75.22 	defined in section 62 of the Internal Revenue Code and increased by the additions required 
75.23 	under section 290.0131, subdivisions 2and, 6, 8 to 11 10, 16, and 17, and reduced by the 
75.24 	Minnesota assignable portion of the subtraction for United States government interest under 
75.25 	section 290.0132, subdivision 2, and the subtractions under section 290.0132, subdivisions 
75.26 	9, 10, 14, 15, 17, and 18, and 27, after applying the allocation and assignability provisions 
75.27 	of section 290.081, clause (a), or 290.17; and
75.28 	(2) the denominator is the individual's federal adjusted gross income as defined in section 
75.29 	62 of the Internal Revenue Code, increased by the amounts specified in section 290.0131, 
75.30 	subdivisions 2and, 6, 8 to 11 10, 16, and 17, and reduced by the amounts specified in section 
75.31 	290.0132, subdivisions 2, 9, 10, 14, 15, 17, and 18, and 27.

76.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
76.2 	31, 2018.

76.3 	Sec. 17. Minnesota Statutes 2018, section 290.0671, subdivision 1, is amended to read:
76.4 		Subdivision 1.Credit allowed. (a) An individual who is a resident of Minnesota is 
76.5 	allowed a credit against the tax imposed by this chapter equal to a percentage of earned 
76.6 	income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of the 
76.7 	Internal Revenue Code, except that:
76.8 	(1) a taxpayer with no qualifying children who has attained the age of 21, but not attained 
76.9 	age 65 before the close of the taxable year and is otherwise eligible for a credit under section 
76.10 	32 of the Internal Revenue Code may also receive a credit.; and
76.11 	(2) a taxpayer who is otherwise eligible for a credit under section 32 of the Internal 
76.12 	Revenue Code remains eligible for the credit even if the taxpayer's earned income or adjusted 
76.13 	gross income exceeds the income limitation under section 32 of the Internal Revenue Code.
76.14 	(b) For individuals with no qualifying children, the credit equals 2.10 3.9 percent of the 
76.15 	first $6,180 $7,150 of earned income. The credit is reduced by 2.01 2.0 percent of earned 
76.16 	income or adjusted gross income, whichever is greater, in excess of $8,130 the phaseout 
76.17 	threshold, but in no case is the credit less than zero.
76.18 	(c) For individuals with one qualifying child, the credit equals 9.35 percent of the first 
76.19 	$11,120$11,950 of earned income. The credit is reduced by 6.02 6.0 percent of earned 
76.20 	income or adjusted gross income, whichever is greater, in excess of $21,190 the phaseout 
76.21 	threshold, but in no case is the credit less than zero.
76.22 	(d) For individuals with two or more qualifying children, the credit equals 11 percent 
76.23 	of the first $18,240 $19,600 of earned income. The credit is reduced by 10.82 10.5 percent 
76.24 	of earned income or adjusted gross income, whichever is greater, in excess of $25,130 the 
76.25 	phaseout threshold, but in no case is the credit less than zero.
76.26 	(e) For individuals with three or more qualifying children, the credit equals 12.5 percent 
76.27 	of the first $20,000 of earned income. The credit is reduced by 10.5 percent of earned income 
76.28 	or adjusted gross income, whichever is greater, in excess of the phaseout threshold, but in 
76.29 	no case is the credit less than zero.
76.30 	(f) For a part-year resident, the credit must be allocated based on the percentage calculated 
76.31 	under section 290.06, subdivision 2c, paragraph (e).
77.1 	(f) (g) For a person who was a resident for the entire tax year and has earned income 
77.2 	not subject to tax under this chapter, including income excluded under section 290.0132, 
77.3 	subdivision 10, the credit must be allocated based on the ratio of federal adjusted gross 
77.4 	income reduced by the earned income not subject to tax under this chapter over federal 
77.5 	adjusted gross income. For purposes of this paragraph, the following clauses are not 
77.6 	considered "earned income not subject to tax under this chapter":
77.7 	(1) the subtractions for military pay under section 290.0132, subdivisions 11 and 12;
77.8 	(2) the exclusion of combat pay under section 112 of the Internal Revenue Code; and
77.9 	(3) income derived from an Indian reservation by an enrolled member of the reservation 
77.10 	while living on the reservation.
77.11 	(g) For tax years beginning after December 31, 2013, the $8,130 in paragraph (b), the 
77.12 	$21,190 in paragraph (c), and the $25,130 in paragraph (d), after being adjusted for inflation 
77.13 	under subdivision 7, are each increased by $5,000 for married taxpayers filing joint returns. 
77.14 	For tax years beginning after December 31, 2013, the commissioner shall annually adjust 
77.15 	the $5,000 by the percentage determined pursuant to the provisions of section 1(f) of the 
77.16 	Internal Revenue Code, except that in section 1(f)(3)(B), the word "2008" shall be substituted 
77.17 	for the word "1992." For 2014, the commissioner shall then determine the percent change 
77.18 	from the 12 months ending on August 31, 2008, to the 12 months ending on August 31, 
77.19 	2013, and in each subsequent year, from the 12 months ending on August 31, 2008, to the 
77.20 	12 months ending on August 31 of the year preceding the taxable year. The earned income 
77.21 	thresholds as adjusted for inflation must be rounded to the nearest $10. If the amount ends 
77.22 	in $5, the amount is rounded up to the nearest $10. The determination of the commissioner 
77.23 	under this subdivision is not a rule under the Administrative Procedure Act.
77.24 	(h) For the purposes of this section, the phaseout threshold equals:
77.25 	(1) $14,570 for married taxpayers filing joint returns with no qualifying children;
77.26 	(2) $8,730 for all other taxpayers with no qualifying children;
77.27 	(3) $28,610 for married taxpayers filing joint returns with one qualifying child;
77.28 	(4) $22,770 for all other taxpayers with one qualifying child;
77.29 	(5) $32,840 for married taxpayers filing joint returns with two qualifying children;
77.30 	(6) $27,000 for all other taxpayers with two qualifying children;
77.31 	(7) $33,140 for married taxpayers filing joint returns with three or more qualifying 
77.32 	children; and
78.1 	(8) $27,300 for all other taxpayers with three or more qualifying children.
78.2 	(i) The commissioner shall construct tables showing the amount of the credit at various 
78.3 	income levels and make them available to taxpayers. The tables shall follow the schedule 
78.4 	contained in this subdivision, except that the commissioner may graduate the transition 
78.5 	between income brackets.

78.6 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
78.7 	31, 2018.

78.8 	Sec. 18. Minnesota Statutes 2018, section 290.0671, subdivision 6, is amended to read:
78.9 		Subd. 6.Appropriation. An amount sufficient to pay the refunds required by this section 
78.10 	is appropriated to the commissioner from the general fund. This amount includes any amounts 
78.11 	appropriated to the commissioner of human services from the federal Temporary Assistance 
78.12 	for Needy Families (TANF) block grant funds for transfer to the commissioner of revenue.

78.13 	EFFECTIVE DATE. This section is effective July 1, 2019.

78.14 	Sec. 19. Minnesota Statutes 2018, section 290.0684, subdivision 2, is amended to read:
78.15 		Subd. 2.Credit allowed. (a) An individual who is a resident of Minnesota is allowed a 
78.16 	credit against the tax imposed by this chapter. The credit is not allowed to an individual 
78.17 	who is eligible to be claimed as a dependent, as defined in sections 151 and 152 of the 
78.18 	Internal Revenue Code. The credit may not exceed the liability for tax under this chapter.
78.19 	(b) The amount of the credit allowed equals 50 percent of contributions for the taxable 
78.20 	year. The maximum credit is $500, subject to the phaseout in paragraphs (c) and (d). In no 
78.21 	case is the credit less than zero.
78.22 	(c) For individual filers, the maximum credit is reduced by two percent of adjusted gross 
78.23 	income in excess of $75,000.
78.24 	(d) For married couples filing a joint return, the maximum credit is phased out as follows:
78.25 	(1) for married couples with adjusted gross income in excess of $75,000, but not more 
78.26 	than $100,000 $135,000, the maximum credit is reduced by one percent of adjusted gross 
78.27 	income in excess of $75,000 until the maximum credit amount equals $250; and
78.28 	(2) for married couples with adjusted gross income in excess of $100,000, but not more 
78.29 	than $135,000, the maximum credit is $250; and
79.1 	(3) (2) for married couples with adjusted gross income in excess of $135,000, the 
79.2 	maximum credit is $250, reduced by one percent of adjusted gross income in excess of 
79.3 	$135,000.
79.4 	(e) The income thresholds in paragraphs (c) and (d) used to calculate the maximum 
79.5 	credit must be adjusted for inflation. The commissioner shall adjust the income thresholds 
79.6 	by the percentage determined under the provisions of section 1(f) of the Internal Revenue 
79.7 	Code, except that in section 1(f)(3)(B) the word "2016" is substituted for the word "1992." 
79.8 	For 2018, the commissioner shall then determine the percent change from the 12 months 
79.9 	ending on August 31, 2016, to the 12 months ending on August 31, 2017, and in each 
79.10 	subsequent year, from the 12 months ending on August 31, 2016, to the 12 months ending 
79.11 	on August 31 of the year preceding the taxable year. The income thresholds as adjusted for 
79.12 	inflation must be rounded to the nearest $10 amount. If the amount ends in $5, the amount 
79.13 	is rounded up to the nearest $10 amount. The determination of the commissioner under this 
79.14 	subdivision is not subject to chapter 14, including section 14.386.

79.15 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
79.16 	31, 2019.

79.17 	Sec. 20. Minnesota Statutes 2018, section 290.17, subdivision 4, is amended to read:
79.18 		Subd. 4.Unitary business principle. (a) If a trade or business conducted wholly within 
79.19 	this state or partly within and partly without this state is part of a unitary business, the entire 
79.20 	income of the unitary business is subject to apportionment pursuant to section 290.191. 
79.21 	Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary business is 
79.22 	considered to be derived from any particular source and none may be allocated to a particular 
79.23 	place except as provided by the applicable apportionment formula. The provisions of this 
79.24 	subdivision do not apply to business income subject to subdivision 5, income of an insurance 
79.25 	company, or income of an investment company determined under section 290.36.
79.26 	(b) The term "unitary business" means business activities or operations which result in 
79.27 	a flow of value between them. The term may be applied within a single legal entity or 
79.28 	between multiple entities and without regard to whether each entity is a sole proprietorship, 
79.29 	a corporation, a partnership or a trust.
79.30 	(c) Unity is presumed whenever there is unity of ownership, operation, and use, evidenced 
79.31 	by centralized management or executive force, centralized purchasing, advertising, 
79.32 	accounting, or other controlled interaction, but the absence of these centralized activities 
79.33 	will not necessarily evidence a nonunitary business. Unity is also presumed when business 
80.1 	activities or operations are of mutual benefit, dependent upon or contributory to one another, 
80.2 	either individually or as a group.
80.3 	(d) Where a business operation conducted in Minnesota is owned by a business entity 
80.4 	that carries on business activity outside the state different in kind from that conducted within 
80.5 	this state, and the other business is conducted entirely outside the state, it is presumed that 
80.6 	the two business operations are unitary in nature, interrelated, connected, and interdependent 
80.7 	unless it can be shown to the contrary.
80.8 	(e) Unity of ownership does not exist when two or more corporations are involved unless 
80.9 	more than 50 percent of the voting stock of each corporation is directly or indirectly owned 
80.10 	by a common owner or by common owners, either corporate or noncorporate, or by one or 
80.11 	more of the member corporations of the group. For this purpose, the term "voting stock" 
80.12 	shall include membership interests of mutual insurance holding companies formed under 
80.13 	section 66A.40.
80.14 	(f) The net income and apportionment factors under section 290.191 or 290.20 of foreign 
80.15 	corporations and other foreign entities, but excluding a disqualified captive insurance 
80.16 	company, which are part of a unitary business shall not be included in the net income or 
80.17 	the apportionment factors of the unitary business; except that the income and apportionment 
80.18 	factors of a foreign entity, other than an entity treated as a C corporation for federal income 
80.19 	tax purposes, that are included in the federal taxable income, as defined in section 63 of the 
80.20 	Internal Revenue Code as amended through the date named in section 290.01, subdivision 
80.21 	19, of a domestic corporation, domestic entity, or individual must be included in determining 
80.22 	net income and the factors to be used in the apportionment of net income pursuant to section 
80.23 	290.191 or 290.20. A foreign corporation or other foreign entity which is not included on 
80.24 	a combined report and which is required to file a return under this chapter shall file on a 
80.25 	separate return basis.
80.26 	(g) For purposes of determining the net income of a unitary business and the factors to 
80.27 	be used in the apportionment of net income pursuant to section 290.191 or 290.20, there 
80.28 	must be included only the income and apportionment factors of domestic corporations or 
80.29 	other domestic entities that are determined to be part of the unitary business pursuant to this 
80.30 	subdivision, notwithstanding that foreign corporations or other foreign entities might be 
80.31 	included in the unitary business; except that the income and apportionment factors of a 
80.32 	foreign entity, other than an entity treated as a C corporation for federal income tax purposes, 
80.33 	that is included in the federal taxable income, as defined in section 63 of the Internal Revenue 
80.34 	Code as amended through the date named in section 290.01, subdivision 19, of a domestic 
80.35 	corporation, domestic entity, or individual must be included in determining net income and 
81.1 	the factors to be used in the apportionment of net income pursuant to section 290.191 or 
81.2 	290.20.
81.3 	(h) Each corporation or other entity, except a sole proprietorship, that is part of a unitary 
81.4 	business must file combined reports as the commissioner determines. On the reports, all 
81.5 	intercompany transactions between entities included pursuant to paragraph (g) must be 
81.6 	eliminated and the entire net income of the unitary business determined in accordance with 
81.7 	this subdivision is apportioned among the entities by using each entity's Minnesota factors 
81.8 	for apportionment purposes in the numerators of the apportionment formula and the total 
81.9 	factors for apportionment purposes of all entities included pursuant to paragraph (g) in the 
81.10 	denominators of the apportionment formula. Except as otherwise provided by paragraph 
81.11 	(f), all sales of the unitary business made within this state pursuant to section 290.191 or 
81.12 	290.20 must be included on the combined report of a corporation or other entity that is a 
81.13 	member of the unitary business and is subject to the jurisdiction of this state to impose tax 
81.14 	under this chapter.
81.15 	(i) If a corporation has been divested from a unitary business and is included in a 
81.16 	combined report for a fractional part of the common accounting period of the combined 
81.17 	report:
81.18 	(1) its income includable in the combined report is its income incurred for that part of 
81.19 	the year determined by proration or separate accounting; and
81.20 	(2) its sales, property, and payroll included in the apportionment formula must be prorated 
81.21 	or accounted for separately.
81.22 	(j) For purposes of this subdivision, "insurance company" means an insurance company, 
81.23 	as defined in section 290.01, subdivision 5b, that is:
81.24 	(1) licensed to engage in the business of insurance in Minnesota pursuant to chapter 
81.25 	60A; or
81.26 	(2) domiciled and licensed to engage in the business of insurance in another state or 
81.27 	country that imposes retaliatory taxes, fines, deposits, penalties, licenses, or fees and that 
81.28 	does not grant, on a reciprocal basis, exemption from such retaliatory taxes to insurance 
81.29 	companies or their agents domiciled in Minnesota.
81.30 	(k) For purposes of this subdivision, "retaliatory taxes" means taxes imposed on insurance 
81.31 	companies organized in another state or country that result from the fact that an insurance 
81.32 	company organized in the taxing jurisdiction and doing business in the other jurisdiction is 
81.33 	subject to taxes, fines, deposits, penalties, licenses, or fees in an amount exceeding that 
82.1 	imposed by the taxing jurisdiction upon an insurance company organized in the other state 
82.2 	or country and doing business to the same extent in the taxing jurisdiction not a disqualified 
82.3 	captive insurance company.

82.4 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
82.5 	after December 31, 2016.

82.6 	Sec. 21. Minnesota Statutes 2018, section 290.191, subdivision 5, is amended to read:
82.7 		Subd. 5.Determination of sales factor. For purposes of this section, the following rules 
82.8 	apply in determining the sales factor.
82.9 	(a) The sales factor includes all sales, gross earnings, or receipts received in the ordinary 
82.10 	course of the business, except that the following types of income are not included in the 
82.11 	sales factor:
82.12 	(1) interest;
82.13 	(2) dividends;
82.14 	(3) sales of capital assets as defined in section 1221 of the Internal Revenue Code;
82.15 	(4) sales of property used in the trade or business, except sales of leased property of a 
82.16 	type which is regularly sold as well as leased; and
82.17 	(5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue 
82.18 	Code or sales of stock.
82.19 	(b) Sales of tangible personal property are made within this state if the property is 
82.20 	received by a purchaser at a point within this state, regardless of the f.o.b. point, other 
82.21 	conditions of the sale, or the ultimate destination of the property.
82.22 	(c) Tangible personal property delivered to a common or contract carrier or foreign 
82.23 	vessel for delivery to a purchaser in another state or nation is a sale in that state or nation, 
82.24 	regardless of f.o.b. point or other conditions of the sale.
82.25 	(d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine, fermented 
82.26 	malt beverages, cigarettes, or tobacco products are sold to a purchaser who is licensed by 
82.27 	a state or political subdivision to resell this property only within the state of ultimate 
82.28 	destination, the sale is made in that state.
82.29 	(e) Sales made by or through a corporation that is qualified as a domestic international 
82.30 	sales corporation under section 992 of the Internal Revenue Code are not considered to have 
82.31 	been made within this state.
83.1 	(f) Sales, rents, royalties, and other income in connection with real property is attributed 
83.2 	to the state in which the property is located.
83.3 	(g) Receipts from the lease or rental of tangible personal property, including finance 
83.4 	leases and true leases, must be attributed to this state if the property is located in this state 
83.5 	and to other states if the property is not located in this state. Receipts from the lease or rental 
83.6 	of moving property including, but not limited to, motor vehicles, rolling stock, aircraft, 
83.7 	vessels, or mobile equipment are included in the numerator of the receipts factor to the 
83.8 	extent that the property is used in this state. The extent of the use of moving property is 
83.9 	determined as follows:
83.10 	(1) A motor vehicle is used wholly in the state in which it is registered.
83.11 	(2) The extent that rolling stock is used in this state is determined by multiplying the 
83.12 	receipts from the lease or rental of the rolling stock by a fraction, the numerator of which 
83.13 	is the miles traveled within this state by the leased or rented rolling stock and the denominator 
83.14 	of which is the total miles traveled by the leased or rented rolling stock.
83.15 	(3) The extent that an aircraft is used in this state is determined by multiplying the 
83.16 	receipts from the lease or rental of the aircraft by a fraction, the numerator of which is the 
83.17 	number of landings of the aircraft in this state and the denominator of which is the total 
83.18 	number of landings of the aircraft.
83.19 	(4) The extent that a vessel, mobile equipment, or other mobile property is used in the 
83.20 	state is determined by multiplying the receipts from the lease or rental of the property by a 
83.21 	fraction, the numerator of which is the number of days during the taxable year the property 
83.22 	was in this state and the denominator of which is the total days in the taxable year.
83.23 	(h) Royalties and other income received for the use of or for the privilege of using 
83.24 	intangible property, including patents, know-how, formulas, designs, processes, patterns, 
83.25 	copyrights, trade names, service names, franchises, licenses, contracts, customer lists, or 
83.26 	similar items, must be attributed to the state in which the property is used by the purchaser. 
83.27 	If the property is used in more than one state, the royalties or other income must be 
83.28 	apportioned to this state pro rata according to the portion of use in this state. If the portion 
83.29 	of use in this state cannot be determined, the royalties or other income must be excluded 
83.30 	from both the numerator and the denominator. Intangible property is used in this state if the 
83.31 	purchaser uses the intangible property or the rights therein in the regular course of its business 
83.32 	operations in this state, regardless of the location of the purchaser's customers.
83.33 	(i) Sales of intangible property are made within the state in which the property is used 
83.34 	by the purchaser. If the property is used in more than one state, the sales must be apportioned 
84.1 	to this state pro rata according to the portion of use in this state. If the portion of use in this 
84.2 	state cannot be determined, the sale must be excluded from both the numerator and the 
84.3 	denominator of the sales factor. Intangible property is used in this state if the purchaser used 
84.4 	the intangible property in the regular course of its business operations in this state.
84.5 	(j) Receipts from the performance of services must be attributed to the state where the 
84.6 	services are received. For the purposes of this section, receipts from the performance of 
84.7 	services provided to a corporation, partnership, or trust may only be attributed to a state 
84.8 	where it has a fixed place of doing business. If the state where the services are received is 
84.9 	not readily determinable or is a state where the corporation, partnership, or trust receiving 
84.10 	the service does not have a fixed place of doing business, the services shall be deemed to 
84.11 	be received at the location of the office of the customer from which the services were ordered 
84.12 	in the regular course of the customer's trade or business. If the ordering office cannot be 
84.13 	determined, the services shall be deemed to be received at the office of the customer to 
84.14 	which the services are billed.
84.15 	(k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts from 
84.16 	management, distribution, or administrative services performed by a person or corporation 
84.17 	or trust for a fund of a person or corporation or trust regulated under United States Code, 
84.18 	title 15, sections 80a-1 through 80a-64 chapter 2D, subchapter I, must be attributed to the 
84.19 	state where the shareholder of the fund resides. Under this paragraph, receipts for services 
84.20 	attributed to shareholders are determined on the basis of the ratio of: (1) the average of the 
84.21 	outstanding shares in the fund owned by shareholders residing within Minnesota at the 
84.22 	beginning and end of each year; and (2) the average of the total number of outstanding 
84.23 	shares in the fund at the beginning and end of each year. Residence of the shareholder, in 
84.24 	the case of an individual, is determined by the mailing address furnished by the shareholder 
84.25 	to the fund. Residence of the shareholder, when the shares are held by an insurance company 
84.26 	as a depositor for the insurance company policyholders, is the mailing address of the 
84.27 	policyholders. In the case of an insurance company holding the shares as a depositor for 
84.28 	the insurance company policyholders, if the mailing address of the policyholders cannot be 
84.29 	determined by the taxpayer, the receipts must be excluded from both the numerator and 
84.30 	denominator. Residence of other shareholders is the mailing address of the shareholder.

84.31 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
84.32 	31, 2018.

85.1 	Sec. 22. Minnesota Statutes 2018, section 290.21, subdivision 4, is amended to read:
85.2 		Subd. 4.Dividends received from another corporation. (a)(1) Eighty percent of 
85.3 	dividends received by a corporation during the taxable year from another corporation, in 
85.4 	which the recipient owns 20 percent or more of the stock, by vote and value, not including 
85.5 	stock described in section 1504(a)(4) of the Internal Revenue Code when the corporate 
85.6 	stock with respect to which dividends are paid does not constitute the stock in trade of the 
85.7 	taxpayer or would not be included in the inventory of the taxpayer, or does not constitute 
85.8 	property held by the taxpayer primarily for sale to customers in the ordinary course of the 
85.9 	taxpayer's trade or business, or when the trade or business of the taxpayer does not consist 
85.10 	principally of the holding of the stocks and the collection of the income and gains therefrom; 
85.11 	and
85.12 	(2)(i) the remaining 20 percent of dividends if the dividends received are the stock in 
85.13 	an affiliated company transferred in an overall plan of reorganization and the dividend is 
85.14 	eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as amended 
85.15 	through December 31, 1989;
85.16 	(ii) the remaining 20 percent of dividends if the dividends are received from a corporation 
85.17 	which is subject to tax under section 290.36 and which is a member of an affiliated group 
85.18 	of corporations as defined by the Internal Revenue Code and the dividend is eliminated in 
85.19 	consolidation under Treasury Department Regulation 1.1502-14(a), as amended through 
85.20 	December 31, 1989, or is deducted under an election under section 243(b) of the Internal 
85.21 	Revenue Code; or
85.22 	(iii) the remaining 20 percent of the dividends if the dividends are received from a 
85.23 	property and casualty insurer as defined under section 60A.60, subdivision 8, which is a 
85.24 	member of an affiliated group of corporations as defined by the Internal Revenue Code and 
85.25 	either: (A) the dividend is eliminated in consolidation under Treasury Regulation 
85.26 	1.1502-14(a), as amended through December 31, 1989; or (B) the dividend is deducted 
85.27 	under an election under section 243(b) of the Internal Revenue Code.
85.28 	(b) Seventy percent of dividends received by a corporation during the taxable year from 
85.29 	another corporation in which the recipient owns less than 20 percent of the stock, by vote 
85.30 	or value, not including stock described in section 1504(a)(4) of the Internal Revenue Code 
85.31 	when the corporate stock with respect to which dividends are paid does not constitute the 
85.32 	stock in trade of the taxpayer, or does not constitute property held by the taxpayer primarily 
85.33 	for sale to customers in the ordinary course of the taxpayer's trade or business, or when the 
86.1 	trade or business of the taxpayer does not consist principally of the holding of the stocks 
86.2 	and the collection of income and gain therefrom.
86.3 	(c) The dividend deduction provided in this subdivision shall be allowed only with 
86.4 	respect to dividends that are included in a corporation's Minnesota taxable net income for 
86.5 	the taxable year.
86.6 	The dividend deduction provided in this subdivision does not apply to a dividend from 
86.7 	a corporation which, for the taxable year of the corporation in which the distribution is made 
86.8 	or for the next preceding taxable year of the corporation, is a corporation exempt from tax 
86.9 	under section 501 of the Internal Revenue Code.
86.10 	The dividend deduction provided in this subdivision does not apply to a dividend received 
86.11 	from a real estate investment trust as defined in section 856 of the Internal Revenue Code.
86.12 	The dividend deduction provided in this subdivision applies to the amount of regulated 
86.13 	investment company dividends only to the extent determined under section 854(b) of the 
86.14 	Internal Revenue Code.
86.15 	The dividend deduction provided in this subdivision shall not be allowed with respect 
86.16 	to any dividend for which a deduction is not allowed under the provisions of section 246(c)
86.17 	or 246A of the Internal Revenue Code.
86.18 	(d) If dividends received by a corporation that does not have nexus with Minnesota under 
86.19 	the provisions of Public Law 86-272 are included as income on the return of an affiliated 
86.20 	corporation permitted or required to file a combined report under section 290.17, subdivision 
86.21 	4, or 290.34, subdivision 2, then for purposes of this subdivision the determination as to 
86.22 	whether the trade or business of the corporation consists principally of the holding of stocks 
86.23 	and the collection of income and gains therefrom shall be made with reference to the trade 
86.24 	or business of the affiliated corporation having a nexus with Minnesota.
86.25 	(e) The deduction provided by this subdivision does not apply if the dividends are paid 
86.26 	by a FSC as defined in section 922 of the Internal Revenue Code.
86.27 	(f) If one or more of the members of the unitary group whose income is included on the 
86.28 	combined report received a dividend, the deduction under this subdivision for each member 
86.29 	of the unitary business required to file a return under this chapter is the product of: (1) 100 
86.30 	percent of the dividends received by members of the group; (2) the percentage allowed 
86.31 	pursuant to paragraph (a) or (b); and (3) the percentage of the taxpayer's business income 
86.32 	apportionable to this state for the taxable year under section 290.191 or 290.20.

87.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
87.2 	31, 2018.

87.3 	Sec. 23. Minnesota Statutes 2018, section 291.03, subdivision 9, is amended to read:
87.4 		Subd. 9.Qualified small business property. Property satisfying all of the following 
87.5 	requirements is qualified small business property:
87.6 	(1) The value of the property was included in the federal adjusted taxable estate.
87.7 	(2) The property consists of the assets of a trade or business or shares of stock or other 
87.8 	ownership interests in a corporation or other entity engaged in a trade or business. Shares 
87.9 	of stock in a corporation or an ownership interest in another type of entity do not qualify 
87.10 	under this subdivision if the shares or ownership interests are traded on a public stock 
87.11 	exchange at any time during the three-year period ending on the decedent's date of death. 
87.12 	For purposes of this subdivision, an ownership interest includes the interest the decedent is 
87.13 	deemed to own under sections 2036, 2037, and 2038, 2040, or 2044 of the Internal Revenue 
87.14 	Code.
87.15 	(3) During the taxable year that ended before the decedent's death, the trade or business 
87.16 	must not have been a passive activity within the meaning of section 469(c) of the Internal 
87.17 	Revenue Code, and the decedent or the decedent's spouse must have materially participated 
87.18 	in the trade or business within the meaning of section 469(h) of the Internal Revenue Code, 
87.19 	excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided 
87.20 	by United States Treasury Department regulation that substitutes material participation in 
87.21 	prior taxable years for material participation in the taxable year that ended before the 
87.22 	decedent's death.
87.23 	(4) The gross annual sales of the trade or business were $10,000,000 or less for the last 
87.24 	taxable year that ended before the date of the death of the decedent.
87.25 	(5) The property does not include:
87.26 	(i) cash;
87.27 	(ii) cash equivalents;
87.28 	(iii) publicly traded securities; or
87.29 	(iv) any assets not used in the operation of the trade or business.
87.30 	(6) For property consisting of shares of stock or other ownership interests in an entity, 
87.31 	the value of items described in clause (5) must be excluded in the valuation of the decedent's 
87.32 	interest in the entity.
88.1 	(7) The decedent or the decedent's spouse continuously owned the property, or an 
88.2 	undivided or joint interest in the property, including property the decedent or the decedent's 
88.3 	spouse is deemed to own under sections 2036, 2037, and 2038, 2040, or 2044 of the Internal 
88.4 	Revenue Code, or under subdivision 1d, for the three-year period ending on the date of 
88.5 	death of the decedent. In the case of a sole proprietor, if the property replaced similar property 
88.6 	within the three-year period, the replacement property will be treated as having been owned 
88.7 	for the three-year period ending on the date of death of the decedent. For the purposes of 
88.8 	the three-year holding period under this clause, any ownership by the decedent's spouse, 
88.9 	whether the spouse predeceases or survives the decedent, is attributed to the decedent.
88.10 	(8) For three years following the date of death of the decedent, the trade or business is 
88.11 	not a passive activity within the meaning of section 469(c) of the Internal Revenue Code, 
88.12 	and a family member materially participates in the operation of the trade or business within 
88.13 	the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3) 
88.14 	of the Internal Revenue Code and any other provision provided by United States Treasury 
88.15 	Department regulation that substitutes material participation in prior taxable years for 
88.16 	material participation in the three years following the date of death of the decedent.
88.17 	(9) The estate and the qualified heir elect to treat the property as qualified small business 
88.18 	property and agree, in the form prescribed by the commissioner, to pay the recapture tax 
88.19 	under subdivision 11, if applicable.

88.20 	EFFECTIVE DATE. This section is effective retroactively for estates of decedents 
88.21 	dying after December 31, 2017.

88.22 	Sec. 24. Minnesota Statutes 2018, section 291.03, subdivision 10, is amended to read:
88.23 		Subd. 10.Qualified farm property. Property satisfying all of the following requirements 
88.24 	is qualified farm property:
88.25 	(1) The value of the property was included in the federal adjusted taxable estate.
88.26 	(2) The property consists of agricultural land and is owned by a person or entity that is 
88.27 	either not subject to or is in compliance with section 500.24.
88.28 	(3) For property taxes payable in the taxable year of the decedent's death, the property 
88.29 	is classified as class 2a property under section 273.13, subdivision 23, and is classified as 
88.30 	agricultural homestead, agricultural relative homestead, or special agricultural homestead 
88.31 	under section 273.124.
88.32 	(4) The decedent or the decedent's spouse continuously owned the property, or an 
88.33 	undivided or joint interest in the property, including property the decedent or the decedent's 
89.1 	spouse is deemed to own under sections 2036, 2037, and 2038, 2040, or 2044 of the Internal 
89.2 	Revenue Code, or under subdivision 1d, for the three-year period ending on the date of 
89.3 	death of the decedent either by ownership of the agricultural land or pursuant to holding an 
89.4 	interest in an entity that is not subject to or is in compliance with section 500.24. For the 
89.5 	purposes of the three-year holding period under this clause, any ownership by the decedent's 
89.6 	spouse, whether the spouse predeceases or survives the decedent, is attributed to the decedent.
89.7 	(5) The property is classified for property tax purposes as class 2a property under section 
89.8 	273.13, subdivision 23, for three years following the date of death of the decedent.
89.9 	(6) The estate and the qualified heir elect to treat the property as qualified farm property 
89.10 	and agree, in a form prescribed by the commissioner, to pay the recapture tax under 
89.11 	subdivision 11, if applicable.

89.12 	EFFECTIVE DATE. This section is effective retroactively for estates of decedents 
89.13 	dying after December 31, 2017.

89.14 	Sec. 25. SPECIAL WAIVER OF INCOME TAX PENALTIES FOR TAX YEARS 
89.15 	2017 AND 2018.
 89.16 	For taxable years beginning after December 31, 2016, and before January 1, 2019, no 
89.17 	addition to tax is imposed under Minnesota Statutes, sections 289A.25, subdivision 2, and 
89.18 	289A.26, subdivision 4, if the tax shown on the return for the taxable year or, if no return 
89.19 	is filed, the tax, reduced by the credits allowable, is less than $1,000. This paragraph applies 
89.20 	only to taxpayers who submit a request for a waiver of addition to tax due under Minnesota 
89.21 	Statutes, sections 289A.25, subdivision 2, and 289A.26, subdivision 4. The request for 
89.22 	waiver must attest that the underpayment of estimated tax for the taxable year is due to 
89.23 	uncertainties in tax planning resulting from the enactment of Public Laws 115-63, 115-97, 
89.24 	115-123, and 115-141. The request for waiver must be in a form and manner prescribed by 
89.25 	the commissioner of revenue.

89.26 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
89.27 	after December 31, 2016, and before January 1, 2019.

89.28 	Sec. 26. APPLICATION OF SMALL BUSINESS INVESTMENT TAX CREDIT 
89.29 	FOR TAXABLE YEAR 2019.
 89.30 	Applications for (1) certification as a qualified small business, qualified investor, or 
89.31 	qualified fund under Minnesota Statutes, section 116J.8737, subdivisions 2, 3, and 4, and 
89.32 	(2) the credit under Minnesota Statutes, section 116J.8737, subdivision 5, for taxable year 
90.1 	2019 must be made available on the Department of Employment and Economic 
90.2 	Development's website by September 1, 2019. The provisions of Minnesota Statutes, section 
90.3 	116J.8737, generally apply to the taxable year 2019 extension of the credit in sections 1 to 
90.4 	7.

90.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

90.6 	Sec. 27. REPEALER.
 90.7 	Minnesota Statutes 2018, section 290.0671, subdivision 6a, is repealed.

90.8 	EFFECTIVE DATE. This section is effective July 1, 2019.

90.9 	ARTICLE 3
90.10 	SALES AND USE TAXES

90.11 	Section 1. Minnesota Statutes 2018, section 38.27, is amended by adding a subdivision 
90.12 	to read:
90.13 		Subd. 4.Use of a portion of county fair revenues. A county agricultural society must 
90.14 	annually determine the amount of sales tax savings attributable to section 297A.70, 
90.15 	subdivision 21. If the county agricultural society owns its own fairgrounds, it must use the 
90.16 	amount equal to the sales tax savings to maintain, improve, or expand society owned 
90.17 	buildings and facilities on the fairgrounds; otherwise it must transfer this amount to the 
90.18 	owner of the fairgrounds. An owner that receives a transfer of money under this subdivision 
90.19 	must use the transferred amount to maintain, improve, and expand entity owned buildings 
90.20 	and facilities on the county fairgrounds.

90.21 	EFFECTIVE DATE. This section is effective July 1, 2019.

90.22 	Sec. 2. Minnesota Statutes 2018, section 289A.20, subdivision 4, is amended to read:
90.23 		Subd. 4.Sales and use tax. (a) The taxes imposed by chapter 297A are due and payable 
90.24 	to the commissioner monthly on or before the 20th day of the month following the month 
90.25 	in which the taxable event occurred, or following another reporting period as the 
90.26 	commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph (f) 
90.27 	or (g), except that use taxes due on an annual use tax return as provided under section 
90.28 	289A.11, subdivision 1, are payable by April 15 following the close of the calendar year.
90.29 	(b) A vendor having a liability of $250,000 or more during a fiscal year ending June 30 
90.30 	must remit the June liability for the next year in the following manner:
91.1 	(1) Two business days before June 30 of the year calendar year 2020 and 2021, the 
91.2 	vendor must remit 81.4 87.5 percent of the estimated June liability to the commissioner.
91.3 	Two business days before June 30 of calendar year 2022 and thereafter, the vendor must 
91.4 	remit 84.5 percent of the estimated June liability to the commissioner.
91.5 	(2) On or before August 20 of the year, the vendor must pay any additional amount of 
91.6 	tax not remitted in June.
91.7 	(c) A vendor having a liability of:
91.8 	(1) $10,000 or more, but less than $250,000 during a fiscal year ending June 30, 2013, 
91.9 	and fiscal years thereafter, must remit by electronic means all liabilities on returns due for 
91.10 	periods beginning in all subsequent calendar years on or before the 20th day of the month 
91.11 	following the month in which the taxable event occurred, or on or before the 20th day of 
91.12 	the month following the month in which the sale is reported under section 289A.18, 
91.13 	subdivision 4; or
91.14 	(2) $250,000 or more, during a fiscal year ending June 30, 2013, and fiscal years 
91.15 	thereafter, must remit by electronic means all liabilities in the manner provided in paragraph 
91.16 	(a) on returns due for periods beginning in the subsequent calendar year, except for 81.4 90
91.17 	percent of the estimated June liability, which is due two business days before June 30. The 
91.18 	remaining amount of the June liability is due on August 20.
91.19 	(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's religious 
91.20 	beliefs from paying electronically shall be allowed to remit the payment by mail. The filer 
91.21 	must notify the commissioner of revenue of the intent to pay by mail before doing so on a 
91.22 	form prescribed by the commissioner. No extra fee may be charged to a person making 
91.23 	payment by mail under this paragraph. The payment must be postmarked at least two business 
91.24 	days before the due date for making the payment in order to be considered paid on a timely 
91.25 	basis.

91.26 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
91.27 	30, 2019.

91.28 	Sec. 3. Minnesota Statutes 2018, section 289A.60, subdivision 15, is amended to read:
91.29 		Subd. 15.Accelerated payment of June sales tax liability; penalty for 
91.30 	underpayment. (a) For payments made after December 31, 2013 2019 and before December 
91.31 	31, 2021, if a vendor is required by law to submit an estimation of June sales tax liabilities 
91.32 	and 81.4 87.5 percent payment by a certain date, the vendor shall pay a penalty equal to ten 
91.33 	percent of the amount of actual June liability required to be paid in June less the amount 
92.1 	remitted in June. The penalty must not be imposed, however, if the amount remitted in June 
92.2 	equals the lesser of 81.4 87.5 percent of the preceding May's liability or 81.4 87.5 percent 
92.3 	of the average monthly liability for the previous calendar year.
92.4 	(b) For payments made after December 31, 2021, the penalty must not be imposed if 
92.5 	the amount remitted in June equals the lesser of 84.5 percent of the preceding May's liability 
92.6 	or 84.5 percent of the average monthly liability for the previous calendar year.

92.7 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
92.8 	30, 2019.

92.9 	Sec. 4. Minnesota Statutes 2018, section 297A.66, subdivision 1, is amended to read:
92.10 		Subdivision 1.Definitions. (a) To the extent allowed by the United States Constitution 
92.11 	and the laws of the United States, the terms "retailer maintaining a place of business in this 
92.12 	state," and "marketplace provider maintaining a place of business in this state," or a similar 
92.13 	term, meansterms mean a retailer or marketplace provider:
92.14 	(1) having or maintaining within this state, directly or by a subsidiary or an affiliate, an 
92.15 	office, place of distribution, sales, storage, or sample room or place, warehouse, or other 
92.16 	place of business, including the employment of a resident of this state who works from a 
92.17 	home office in this state; or
92.18 	(2) having a representative, including, but not limited to, an affiliate, agent, salesperson, 
92.19 	canvasser, marketplace provider, solicitor, or other third party operating in this state under 
92.20 	the authority of the retailer or marketplace provider, or its subsidiary, for any purpose, 
92.21 	including the repairing, selling, delivering, installing, facilitating sales, processing sales, or 
92.22 	soliciting of orders for the retailer's or a retailer's goods or services, or the leasing of tangible 
92.23 	personal property located in this state, whether the place of business or agent, representative, 
92.24 	affiliate, salesperson, canvasser, or solicitor is located in the state permanently or temporarily, 
92.25 	or whether or not the retailer or marketplace provider, subsidiary, or affiliate is authorized 
92.26 	to do business in this state. A retailer is represented by a marketplace provider in this state 
92.27 	if the retailer makes sales in this state facilitated by a marketplace provider that maintains 
92.28 	a place of business in this state.
92.29 	(b) "Destination of a sale" means the location to which the retailer makes delivery of 
92.30 	the property sold, or causes the property to be delivered, to the purchaser of the property, 
92.31 	or to the agent or designee of the purchaser. The delivery may be made by any means, 
92.32 	including the United States Postal Service or a for-hire carrier.
93.1 	(c) (b) To the extent allowed by the United States Constitution and the laws of the United 
93.2 	States, the terms "retailer not maintaining a place of business in this state," and "marketplace 
93.3 	provider not maintaining a place of business in this state," or similar terms mean a retailer 
93.4 	or marketplace provider making or facilitating retail sales from outside this state to a 
93.5 	destination within this state and not maintaining a place of business in this state as provided 
93.6 	in paragraph (a) that engages in the regular or systematic soliciting of sales from potential 
93.7 	customers in this state by:
93.8 	(1) distribution, by mail or otherwise, of catalogs, periodicals, advertising flyers, or other 
93.9 	written solicitations of business to customers in this state;
93.10 	(2) advertisements on billboards or other outdoor advertising in this state;
93.11 	(3) advertisements in newspapers published in this state;
93.12 	(4) advertisements in trade journals or other periodicals the circulation of which is 
93.13 	primarily within this state;
93.14 	(5) advertisements in a Minnesota edition of a national or regional publication or a 
93.15 	limited regional edition in which this state is included as part of a broader regional or national 
93.16 	publication that are not placed in other geographically defined editions of the same issue 
93.17 	of the same publication;
93.18 	(6) advertisements in regional or national publications in an edition that is not by its 
93.19 	contents geographically targeted to Minnesota but is sold over the counter in Minnesota or 
93.20 	by subscription to Minnesota residents;
93.21 	(7) advertisements broadcast on a radio or television station located in Minnesota; or
93.22 	(8) any other solicitation by telephone, computer database, cable, optic, microwave, or 
93.23 	any other communication system, including but not limited to a website accessible from 
93.24 	within Minnesota.
93.25 	The location of independent vendors that provide products or services to a retailer or 
93.26 	marketplace provider in connection with a retailer or marketplace provider's solicitation of 
93.27 	customers within this state, including such products and services as creation of copy, printing, 
93.28 	distribution, and recording is not considered in determining whether the retailer or 
93.29 	marketplace provider is required to collect tax. Paragraph (b) must be construed without 
93.30 	regard to the state from which distribution of the materials originated or in which they were 
93.31 	prepared.
93.32 	(c) "Regular or systematic soliciting of sales from potential customers in this state" 
93.33 	means the retailer not maintaining a place of business in this state or marketplace provider 
94.1 	not maintaining a place of business in this state is engaged in any of the solicitations listed 
94.2 	in paragraph (b), and:
94.3 	(1) makes or facilitates 200 or more retail sales from outside this state to destinations in 
94.4 	this state during the prior 12-month period; or
94.5 	(2) makes or facilitates retail sales totaling more than $100,000 from outside this state 
94.6 	to destinations in this state during the prior 12-month period.
94.7 	(d) "Marketplace provider" means any person who facilitates a retail sale by a retailer 
94.8 	by:
94.9 	(1) listing or advertising for sale by the retailer in any forum, tangible personal property, 
94.10 	services, or digital goods that are subject to tax under this chapter; and
94.11 	(2) either directly or indirectly through agreements or arrangements with third parties 
94.12 	collecting payment from the customer and transmitting that payment to the retailer regardless 
94.13 	of whether the marketplace provider receives compensation or other consideration in 
94.14 	exchange for its services.
94.15 	(d) "Total taxable retail sales" means the gross receipts from the sale of all tangible 
94.16 	goods, services, and digital goods subject to sales and use tax under this chapter.
94.17 	(e) "Destination of a sale" means the location to which the retailer makes delivery of 
94.18 	the property sold, or causes the property to be delivered, to the purchaser of the property, 
94.19 	or to the agent or designee of the purchaser. The delivery may be made by any means, 
94.20 	including the United States Postal Service or a for-hire carrier.

94.21 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
94.22 	September 30, 2019.

94.23 	Sec. 5. Minnesota Statutes 2018, section 297A.66, subdivision 2, is amended to read:
94.24 		Subd. 2.Retailer maintaining place of business in this state Collection and remittance 
94.25 	requirements for retailers and marketplace providers. (a) Except as provided in paragraph 
94.26 	(b) (d), a retailer maintaining a place of business in this state and a retailer not maintaining 
94.27 	a place of business in this state who makes retail sales in Minnesota or to a destination in 
94.28 	Minnesota shall collect sales and use taxes and remit them to the commissioner under section 
94.29 	297A.77 for all retail sales other than those facilitated by a marketplace provider maintaining 
94.30 	a place of business in this state or a marketplace provider not maintaining a place of business 
94.31 	in this state that is required to collect and remit sales and use taxes under paragraph (b).
95.1 	(b) A retailer with total taxable retail sales to customers in this state of less than $10,000 
95.2 	in the 12-month period ending on the last day of the most recently completed calendar 
95.3 	quarter is not required to collect and remit sales tax if it is determined to be a retailer 
95.4 	maintaining a place of business in the state solely because it made sales through one or more 
95.5 	marketplace providers. The provisions of this paragraph do not apply to a retailer that is or 
95.6 	was registered to collect sales and use tax in this state. Except as provided in paragraph (d), 
95.7 	a marketplace provider maintaining a place of business in this state and a marketplace 
95.8 	provider not maintaining a place of business in this state who facilitates retail sales in 
95.9 	Minnesota or to a destination in Minnesota shall collect sales and use taxes and remit them 
95.10 	to the commissioner under section 297A.77 unless:
95.11 	(1) the retailer provides a copy of the retailer's registration to collect sales and use taxes 
95.12 	in this state to the marketplace provider; and
95.13 	(2) the marketplace provider and retailer agree that the retailer will collect and remit the 
95.14 	sales and use taxes on marketplace sales facilitated by the marketplace provider.
95.15 	(c) Nothing in paragraph (b) shall be construed to interfere with the ability of a 
95.16 	marketplace provider and a retailer to enter into an agreement regarding fulfillment of the 
95.17 	requirements of this chapter.
95.18 	(d) A retailer not maintaining a place of business in this state and a marketplace provider 
95.19 	not maintaining a place of business in this state shall:
95.20 	(1) begin collecting and remitting sales and use taxes to the commissioner on the first 
95.21 	day of a calendar month occurring no later than 60 days after the retailer or marketplace 
95.22 	provider engages in regular or systematic soliciting of sales from potential customers in this 
95.23 	state; and
95.24 	(2) continue to collect and remit sales and use taxes to the commissioner until at least 
95.25 	the last day of the 12th calendar month following the calendar month in which the retailer 
95.26 	or marketplace provider began collecting and remitting sales and use taxes under clause 
95.27 	(1).
95.28 	(e) A retailer not maintaining a place of business in this state and a marketplace provider 
95.29 	not maintaining a place of business in this state may cease collecting and remitting sales 
95.30 	and use taxes to the commissioner after the period in paragraph (d), clause (2), if the retailer 
95.31 	or marketplace provider no longer engages in regular or systematic soliciting of sales from 
95.32 	potential customers in this state.
96.1 	(f) A retailer or marketplace provider may cease collecting and remitting sales and use 
96.2 	taxes under paragraph (e) only after notifying the commissioner that the retailer or 
96.3 	marketplace provider is no longer engaged in the regular or systematic soliciting of sales 
96.4 	from potential customers in this state. The commissioner shall prescribe the content, format, 
96.5 	and manner of the notification pursuant to section 270C.30. If a retailer or marketplace 
96.6 	provider subsequently engages in regular or systematic soliciting of sales from potential 
96.7 	customers in this state, the retailer shall again comply with the requirements of paragraph 
96.8 	(d).

96.9 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
96.10 	September 30, 2019.

96.11 	Sec. 6. Minnesota Statutes 2018, section 297A.66, subdivision 3, is amended to read:
96.12 		Subd. 3.Retailer not maintaining place of business in this state Marketplace provider 
96.13 	liability. (a) To the extent allowed by the United States Constitution and in accordance with 
96.14 	the terms and conditions of federal remote seller law, a retailer making retail sales from 
96.15 	outside this state to a destination within this state and not maintaining a place of business 
96.16 	in this state shall collect sales and use taxes and remit them to the commissioner under 
96.17 	section 297A.77.
96.18 	(b) To the extent allowed by the United States Constitution and the laws of the United 
96.19 	States, a retailer making retail sales from outside this state to a destination within this state 
96.20 	and not maintaining a place of business in this state shall collect sales and use taxes and 
96.21 	remit them to the commissioner under section 297A.77, if the retailer engages in the regular 
96.22 	or systematic soliciting of sales from potential customers in this state by:
96.23 	(1) distribution, by mail or otherwise, of catalogs, periodicals, advertising flyers, or other 
96.24 	written solicitations of business to customers in this state;
96.25 	(2) display of advertisements on billboards or other outdoor advertising in this state;
96.26 	(3) advertisements in newspapers published in this state;
96.27 	(4) advertisements in trade journals or other periodicals the circulation of which is 
96.28 	primarily within this state;
96.29 	(5) advertisements in a Minnesota edition of a national or regional publication or a 
96.30 	limited regional edition in which this state is included as part of a broader regional or national 
96.31 	publication which are not placed in other geographically defined editions of the same issue 
96.32 	of the same publication;
97.1 	(6) advertisements in regional or national publications in an edition which is not by its 
97.2 	contents geographically targeted to Minnesota but which is sold over the counter in Minnesota 
97.3 	or by subscription to Minnesota residents;
97.4 	(7) advertisements broadcast on a radio or television station located in Minnesota; or
97.5 	(8) any other solicitation by telegraphy, telephone, computer database, cable, optic, 
97.6 	microwave, or other communication system.
97.7 	This paragraph must be construed without regard to the state from which distribution 
97.8 	of the materials originated or in which they were prepared.
97.9 	(c) The location within or without this state of independent vendors that provide products 
97.10 	or services to the retailer in connection with its solicitation of customers within this state, 
97.11 	including such products and services as creation of copy, printing, distribution, and recording, 
97.12 	is not considered in determining whether the retailer is required to collect tax.
97.13 	(d) A retailer not maintaining a place of business in this state is presumed, subject to 
97.14 	rebuttal, to be engaged in regular solicitation within this state if it engages in any of the 
97.15 	activities in paragraph (b) and:
97.16 	(1) makes 100 or more retail sales from outside this state to destinations in this state 
97.17 	during a period of 12 consecutive months; or
97.18 	(2) makes ten or more retail sales totaling more than $100,000 from outside this state 
97.19 	to destinations in this state during a period of 12 consecutive months.
97.20 	(a) A marketplace provider is subject to audit on the retail sales it facilitates if it is 
97.21 	required to collect sales and use taxes and remit them to the commissioner under subdivision 
97.22 	2, paragraphs (b) and (c).
97.23 	(b) A marketplace provider is not liable for failing to file, collect, and remit sales and 
97.24 	use taxes to the commissioner if the marketplace provider demonstrates that the error was 
97.25 	due to incorrect or insufficient information given to the marketplace provider by the retailer. 
97.26 	This paragraph does not apply if the marketplace provider and the marketplace retailer are 
97.27 	related as defined in subdivision 4, paragraph (b).

97.28 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
97.29 	September 30, 2019.

98.1 	Sec. 7. Minnesota Statutes 2018, section 297A.67, is amended by adding a subdivision to 
98.2 	read:
98.3 		Subd. 37.Certain herbicides. (a) Purchases of herbicides authorized for use pursuant 
98.4 	to an invasive aquatic plant management permit as defined under section 103G.615 are 
98.5 	exempt if purchased by:
98.6 	(1) a lakeshore property owner;
98.7 	(2) an association of lakeshore property owners organized under chapter 317A; or
98.8 	(3) a contractor hired by a lakeshore owner or association to provide invasive aquatic 
98.9 	plant management under the permit.
98.10 	(b) For purposes of this subdivision, "herbicides" means a substance or mixture of 
98.11 	substances intended for use as a plant regulator, defoliant, or desiccant that are:
98.12 	(1) labeled for use in water;
98.13 	(2) registered for use in this state by the Department of Agriculture under section 18B.26; 
98.14 	and
98.15 	(3) listed as one of the herbicides proposed for use on the invasive aquatic plant 
98.16 	management permit.

98.17 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
98.18 	30, 2019.

98.19 	Sec. 8. Minnesota Statutes 2018, section 297A.70, subdivision 10, is amended to read:
98.20 		Subd. 10.Nonprofit tickets or admissions. (a) Tickets or admissions to an event are 
98.21 	exempt if all the gross receipts are recorded as such, in accordance with generally accepted 
98.22 	accounting principles, on the books of one or more organizations whose primary mission 
98.23 	is to provide an opportunity for citizens of the state to participate in the creation, performance, 
98.24 	or appreciation of the arts, and provided that each organization is:
98.25 	(1) an organization described in section 501(c)(3) of the Internal Revenue Code in which 
98.26 	voluntary contributions make up at least five percent of the organization's annual revenue 
98.27 	in its most recently completed 12-month fiscal year, or in the current year if the organization 
98.28 	has not completed a 12-month fiscal year;
98.29 	(2) a municipal board that promotes cultural and arts activities; or
99.1 	(3) the University of Minnesota, a state college and university, or a private nonprofit 
99.2 	college or university provided that the event is held at a facility owned by the educational 
99.3 	institution holding the event.
99.4 	The exemption only applies if the entire proceeds, after reasonable expenses, are used solely 
99.5 	to provide opportunities for citizens of the state to participate in the creation, performance, 
99.6 	or appreciation of the arts.
99.7 	(b) Tickets or admissions to the premises of the Minnesota Zoological Garden are exempt, 
99.8 	provided that the exemption under this paragraph does not apply to tickets or admissions 
99.9 	to performances or events held on the premises unless the performance or event is sponsored 
99.10 	and conducted exclusively by the Minnesota Zoological Board or employees of the Minnesota 
99.11 	Zoological Garden.
99.12 	(c) Tickets or admissions to a performance or event on the premises of a tax-exempt 
99.13 	organization under section 501(c)(3) of the Internal Revenue Code are exempt if:
99.14 	(1) the nonprofit organization was established to preserve Minnesota's rural agricultural 
99.15 	heritage and focuses on educating the public about rural history and how farms in Minnesota 
99.16 	helped to provide food for the nation and the world;
99.17 	(2) the premises of the nonprofit organization is at least 115 acres;
99.18 	(3) the performance or event is sponsored and conducted exclusively by volunteers, 
99.19 	employees of the nonprofit organization, or members of the board of directors of the nonprofit 
99.20 	organization; and
99.21 	(4) the performance or event is consistent with the nonprofit organization's purposes 
99.22 	under section 501(c)(3) of the Internal Revenue Code.

99.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

99.24 	Sec. 9. Minnesota Statutes 2018, section 297A.70, subdivision 20, is amended to read:
99.25 		Subd. 20.Ice arenas and rinks. Sales to organizations that exist primarily for the purpose 
99.26 	of owning or operating ice arenas or rinks that are (1) part of either the Duluth Heritage 
99.27 	Sports Center or the David M. Thaler Sports Center; and (2) are used for youth and high 
99.28 	school programs, are exempt if the organization is a private, nonprofit corporation exempt 
99.29 	from federal income taxation under section 501(c)(3) of the Internal Revenue Code.

99.30 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
99.31 	30, 2019.

100.1 	Sec. 10. Minnesota Statutes 2018, section 297A.70, is amended by adding a subdivision 
100.2 	to read:
100.3 		Subd. 21.County agricultural society sales at county fairs. Sales by a county 
100.4 	agricultural society during a regularly scheduled county fair are exempt. For purposes of 
100.5 	this subdivision, sales include admissions to and parking at the county fairgrounds, 
100.6 	admissions to separately ticketed events run by the county agricultural society, and 
100.7 	concessions and other sales made by employees or volunteers of the county agricultural 
100.8 	society on the county fairgrounds. This exemption does not apply to sales or events by a 
100.9 	county agricultural society held at a time other than at the time of the regularly scheduled 
100.10 	county fair, or events not held on the county fairgrounds.

100.11 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
100.12 	30, 2019.

100.13 	Sec. 11. Minnesota Statutes 2018, section 297A.71, subdivision 50, is amended to read:
100.14 		Subd. 50.Properties destroyed by fire. (a) Building materials and supplies used in, 
100.15 	and equipment incorporated into, the construction or replacement of real property that is 
100.16 	located in Melrose affected by the fire on September 8, 2016, are exempt.
100.17 	(b) For sales and purchases made for the periods of (1) after September 30, 2016, and 
100.18 	before July 1, 2017, and (2) after December 31, 2018, and before July 1, 2019, the tax must 
100.19 	be imposed and collected as if the rate under section 297A.62, subdivision 1, applied and 
100.20 	then refunded in the manner provided in section 297A.75.

100.21 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
100.22 	made after December 31, 2018.

100.23 	Sec. 12. Minnesota Statutes 2018, section 297A.71, is amended by adding a subdivision 
100.24 	to read:
100.25 		Subd. 51.Properties destroyed by fire. (a) Building materials and supplies used or 
100.26 	consumed in, and equipment incorporated into, the construction or replacement of real 
100.27 	property affected by, and capital equipment to replace equipment destroyed in, the fire on 
100.28 	March 11, 2018, in the city of Mazeppa are exempt. The tax must be imposed and collected 
100.29 	as if the rate under section 297A.62, subdivision 1, applied and then refunded in the manner 
100.30 	provided in section 297A.75. For purposes of this subdivision, "capital equipment" includes 
100.31 	durable equipment used in a restaurant for food storage, preparation, and serving.
101.1 	(b) The exemption under this subdivision applies to sales and purchases made after 
101.2 	March 11, 2018, and before January 1, 2022.

101.3 	EFFECTIVE DATE. This section is effective retroactively from March 11, 2018.

101.4 	Sec. 13. Minnesota Statutes 2018, section 297A.71, is amended by adding a subdivision 
101.5 	to read:
101.6 		Subd. 52.Construction; certain local government facilities. (a) Materials and supplies 
101.7 	used in and equipment incorporated into the construction, reconstruction, upgrade, expansion, 
101.8 	or remodeling of the following local government owned facilities are exempt:
101.9 	(1) a new fire station, which includes firefighting, emergency management, public safety 
101.10 	training, and other public safety facilities in the city of Monticello if materials, supplies, 
101.11 	and equipment are purchased after January 31, 2019, and before January 1, 2022;
101.12 	(2) a new fire station, which includes firefighting and public safety training facilities 
101.13 	and public safety facilities, in the city of Inver Grove Heights if materials, supplies, and 
101.14 	equipment are purchased after June 30, 2018, and before January 1, 2021;
101.15 	(3) a fire station and police station, including access roads, lighting, sidewalks, and 
101.16 	utility components, on or adjacent to the property on which the fire station or police station 
101.17 	are located that are necessary for safe access to and use of those buildings, in the city of 
101.18 	Minnetonka if materials, supplies, and equipment are purchased after May 23, 2019, and 
101.19 	before January 1, 2021;
101.20 	(4) the school building in Independent School District No. 414, Minneota, if materials, 
101.21 	supplies, and equipment are purchased after January 1, 2018, and before January 1, 2021;
101.22 	(5) a fire station in the city of Mendota Heights, if materials, supplies, and equipment 
101.23 	are purchased after December 31, 2018, and before January 1, 2021; and
101.24 	(6) a Dakota County law enforcement collaboration center, also known as the Safety 
101.25 	and Mental Health Alternative Response Training (SMART) Center, if materials, supplies, 
101.26 	and equipment are purchased after June 30, 2019, and before July 1, 2021.
101.27 	(b) The tax must be imposed and collected as if the rate under section 297A.62, 
101.28 	subdivision 1, applied and then refunded in the manner provided in section 297A.75.
101.29 	(c) The total refund for the project listed in paragraph (a), clause (3), must not exceed 
101.30 	$850,000.

102.1 	EFFECTIVE DATE. This section is effective the day following final enactment and 
102.2 	applies retroactively to sales and purchases made during the time periods listed for each 
102.3 	project in paragraph (a).

102.4 	Sec. 14. Minnesota Statutes 2018, section 297A.75, subdivision 1, is amended to read:
102.5 		Subdivision 1.Tax collected. The tax on the gross receipts from the sale of the following 
102.6 	exempt items must be imposed and collected as if the sale were taxable and the rate under 
102.7 	section 297A.62, subdivision 1, applied. The exempt items include:
102.8 	(1) building materials for an agricultural processing facility exempt under section 
102.9 	297A.71, subdivision 13;
102.10 	(2) building materials for mineral production facilities exempt under section 297A.71, 
102.11 	subdivision 14;
102.12 	(3) building materials for correctional facilities under section 297A.71, subdivision 3;
102.13 	(4) building materials used in a residence for disabled veterans exempt under section 
102.14 	297A.71, subdivision 11;
102.15 	(5) elevators and building materials exempt under section 297A.71, subdivision 12;
102.16 	(6) materials and supplies for qualified low-income housing under section 297A.71, 
102.17 	subdivision 23;
102.18 	(7) materials, supplies, and equipment for municipal electric utility facilities under 
102.19 	section 297A.71, subdivision 35;
102.20 	(8) equipment and materials used for the generation, transmission, and distribution of 
102.21 	electrical energy and an aerial camera package exempt under section 297A.68, subdivision 
102.22 	37;
102.23 	(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph 
102.24 	(a), clause (10);
102.25 	(10) materials, supplies, and equipment for construction or improvement of projects and 
102.26 	facilities under section 297A.71, subdivision 40;
102.27 	(11) materials, supplies, and equipment for construction, improvement, or expansion 
102.28 	of:
102.29 	(i) an aerospace defense manufacturing facility exempt under Minnesota Statutes 2014, 
102.30 	section 297A.71, subdivision 42;
103.1 	(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision 
103.2 	45;
103.3 	(iii) a research and development facility exempt under Minnesota Statutes 2014, section 
103.4 	297A.71, subdivision 46; and
103.5 	(iv) an industrial measurement manufacturing and controls facility exempt under 
103.6 	Minnesota Statutes 2014, section 297A.71, subdivision 47;
103.7 	(12) enterprise information technology equipment and computer software for use in a 
103.8 	qualified data center exempt under section 297A.68, subdivision 42;
103.9 	(13) materials, supplies, and equipment for qualifying capital projects under section 
103.10 	297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b);
103.11 	(14) items purchased for use in providing critical access dental services exempt under 
103.12 	section 297A.70, subdivision 7, paragraph (c);
103.13 	(15) items and services purchased under a business subsidy agreement for use or 
103.14 	consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 
103.15 	44;
103.16 	(16) building materials, equipment, and supplies for constructing or replacing real 
103.17 	property exempt under section 297A.71, subdivision subdivisions 49; 50, paragraph (b); 
103.18 	and 51; and
103.19 	(17) building materials, equipment, and supplies for constructing or replacing real 
103.20 	property exempt under section 297A.71, subdivision 50, paragraph (b). qualifying capital 
103.21 	projects under section 297A.71, subdivision 52.

103.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

103.23 	Sec. 15. Minnesota Statutes 2018, section 297A.75, subdivision 2, is amended to read:
103.24 		Subd. 2.Refund; eligible persons. Upon application on forms prescribed by the 
103.25 	commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must 
103.26 	be paid to the applicant. Only the following persons may apply for the refund:
103.27 	(1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;
103.28 	(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;
103.29 	(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits 
103.30 	provided in United States Code, title 38, chapter 21;
104.1 	(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead 
104.2 	property;
104.3 	(5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;
104.4 	(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a 
104.5 	joint venture of municipal electric utilities;
104.6 	(7) for subdivision 1, clauses (8), (11), (12), and (15), the owner of the qualifying 
104.7 	business;
104.8 	(8) for subdivision 1, clauses (9), (10), and (13), and (17), the applicant must be the 
104.9 	governmental entity that owns or contracts for the project or facility; and
104.10 	(9) for subdivision 1, clause (16), the applicant must be the owner or developer of the 
104.11 	building or project; and.
104.12 	(10) for subdivision 1, clause (17), the applicant must be the owner or developer of the 
104.13 	building or project.

104.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

104.15 	Sec. 16. Minnesota Statutes 2018, section 297F.09, subdivision 10, is amended to read:
104.16 		Subd. 10.Accelerated tax payment; cigarette or tobacco products distributor. A 
104.17 	cigarette or tobacco products distributor having a liability of $250,000 or more during a 
104.18 	fiscal year ending June 30, shall remit the June liability for the next year in the following 
104.19 	manner:
104.20 	(a) Two business days before June 30 of the year calendar years 2020 and 2021, the 
104.21 	distributor shall remit the actual May liability and 81.4 87.5 percent of the estimated June 
104.22 	liability to the commissioner and file the return in the form and manner prescribed by the 
104.23 	commissioner.
104.24 	(b) On or before August 18 of the year, the distributor shall submit a return showing the 
104.25 	actual June liability and pay any additional amount of tax not remitted in June. A penalty 
104.26 	is imposed equal to ten percent of the amount of June liability required to be paid in June, 
104.27 	less the amount remitted in June. However, the penalty is not imposed if the amount remitted 
104.28 	in June equals the lesser of:
104.29 	(1) 81.4 87.5 percent of the actual June liability for the calendar year 2020 and 2021 
104.30 	June liabilities and 84.5 of the actual June liability for June 2022 and thereafter; or
105.1 	(2) 81.4 87.5 percent of the preceding May liability for the calendar year 2020 and 2021 
105.2 	June liabilities and 84.5 percent of the preceding May liability for June 2022 and thereafter.
105.3 	(c) For calendar year 2022 and thereafter, the percent of the estimated June liability the 
105.4 	vendor must remit by two business days before June 30 is 84.5 percent.

105.5 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
105.6 	30, 2019.

105.7 	Sec. 17. Minnesota Statutes 2018, section 297G.09, subdivision 9, is amended to read:
105.8 		Subd. 9.Accelerated tax payment; penalty. A person liable for tax under this chapter 
105.9 	having a liability of $250,000 or more during a fiscal year ending June 30, shall remit the 
105.10 	June liability for the next year in the following manner:
105.11 	(a) Two business days before June 30 of the year calendar years 2020 and 2021, the 
105.12 	taxpayer shall remit the actual May liability and 81.4 87.5 percent of the estimated June 
105.13 	liability to the commissioner and file the return in the form and manner prescribed by the 
105.14 	commissioner.
105.15 	(b) On or before August 18 of the year, the taxpayer shall submit a return showing the 
105.16 	actual June liability and pay any additional amount of tax not remitted in June. A penalty 
105.17 	is imposed equal to ten percent of the amount of June liability required to be paid in June 
105.18 	less the amount remitted in June. However, the penalty is not imposed if the amount remitted 
105.19 	in June equals the lesser of:
105.20 	(1) 81.4 87.5 percent of the actual June liability for the calendar year 2020 and 2021 
105.21 	June liabilities and 84.5 percent of the actual June liability for June 2022 and thereafter; or
105.22 	(2) 81.4 87.5 percent of the preceding May liability for the calendar year 2020 and 2021 
105.23 	June liabilities and 84.5 percent of the preceding May liability for June 2022 and thereafter.
105.24 	(c) For calendar year 2022 and thereafter, the percent of the estimated June liability the 
105.25 	vendor must remit by two business days before June 30 is 84.5 percent.

105.26 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
105.27 	30, 2019.

105.28 	Sec. 18. Laws 2017, First Special Session chapter 1, article 3, section 32, the effective 
105.29 	date, is amended to read:

105.30 	EFFECTIVE DATE. Paragraph (a) is effective retroactively for sales and purchases 
105.31 	made after September 30, 2016, and before January 1, 2019 2023. Paragraph (b) is effective 
106.1 	for sales and purchases made (1) after September 30, 2016, and before July 1, 2017; and 
106.2 	(2) after December 31, 2018, and before July 1, 2019.

106.3 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2019.

106.4 	Sec. 19. REPEALER.
 106.5 	Minnesota Statutes 2018, section 297A.66, subdivision 4b, is repealed.

106.6 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
106.7 	September 30, 2019.

106.8 	ARTICLE 4
106.9 	PROPERTY TAX

106.10 	Section 1. Minnesota Statutes 2018, section 103D.905, subdivision 5, is amended to read:
106.11 		Subd. 5.Construction or implementation fund. (a) A construction or implementation 
106.12 	fund consists of:
106.13 	(1) the proceeds of watershed district bonds or notes or of the sale of county bonds;
106.14 	(2) construction or implementation loans or grants from the Pollution Control Agency 
106.15 	under sections 103F.701 to 103F.755, state or from any agency of the federal government; 
106.16 	and
106.17 	(3) special assessments, storm water charges, loan repayments, and ad valorem tax levies 
106.18 	levied or to be levied to supply funds for the construction or implementation of the projects 
106.19 	of the watershed district, including reservoirs, ditches, dikes, canals, channels, storm water 
106.20 	facilities, sewage treatment facilities, wells, and other works, and the expenses incident to 
106.21 	and connected with the construction or implementation.
106.22 	(b) Construction or implementation loans or grants from the Pollution Control Agency 
106.23 	under sections 103F.701 to 103F.755, state or from an agency of the federal government 
106.24 	may be repaid from the proceeds of watershed district bonds or notes or from the collections 
106.25 	of storm water charges, loan repayments, ad valorem tax levies, or special assessments on 
106.26 	properties benefited by the project.

106.27 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2020 
106.28 	and thereafter.

107.1 	Sec. 2. Minnesota Statutes 2018, section 103D.905, subdivision 9, is amended to read:
107.2 		Subd. 9.Project tax levy. (a) In addition to other tax levies provided in this section or 
107.3 	in any other law, a watershed district may levy a tax:
107.4 	(1) to pay the costs of projects undertaken by the watershed district which that are to be
107.5 	funded, in whole or in part, with the proceeds of money appropriated by law for grants or 
107.6 	construction or implementation loans under sections 103F.701 to 103F.755 to the district;
107.7 	(2) to pay the principal of, or premium or administrative surcharge, if any, and interest 
107.8 	on, the bonds and or notes issued by the watershed district pursuant to section 103F.725 to 
107.9 	repay such loans; or
107.10 	(3) to repay the construction or implementation such loans under sections 103F.701 to 
107.11 	103F.755.
107.12 	(b) Taxes levied with respect to payment of bonds and notes shall must comply with 
107.13 	section 475.61.

107.14 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2020 
107.15 	and thereafter.

107.16 	Sec. 3. Minnesota Statutes 2018, section 138.053, is amended to read:
107.17 	138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR TOWNS.
107.18 	The governing body of any home rule charter or statutory city or town may annually 
107.19 	appropriate from its general fund an amount not to exceed 0.02418 percent of estimated 
107.20 	market value, derived from ad valorem taxes on property or other revenues, to be paid to 
107.21 	the historical society of its respective city, town, or county to be used for the promotion of 
107.22 	historical work and to aid in defraying the expenses of carrying on the historical work in 
107.23 	the city, town, or county. No city or town may appropriate any funds for the benefit of any 
107.24 	historical society unless the society is affiliated with and approved by the Minnesota 
107.25 	Historical Society.

107.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

107.27 	Sec. 4. Minnesota Statutes 2018, section 197.603, subdivision 2, is amended to read:
107.28 		Subd. 2.Records; data privacy. Pursuant to chapter 13 the county veterans service 
107.29 	officer is the responsible authority with respect to all records in the officer's custody. The 
107.30 	data on clients' applications for assistance is private data on individuals, as defined in section 
107.31 	13.02, subdivision 12. The county veterans service officer may disclose to the county or 
108.1 	local assessor private data necessary to determine a client's eligibility for the veteran with 
108.2 	a disability homestead market value exclusion under section 273.13, subdivision 34.

108.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

108.4 	Sec. 5. Minnesota Statutes 2018, section 272.02, subdivision 49, is amended to read:
108.5 		Subd. 49.Agricultural historical society property. Property is exempt from taxation 
108.6 	if it is owned by a nonprofit charitable or educational organization that qualifies for 
108.7 	exemption under section 501(c)(3) of the Internal Revenue Code and meets the following 
108.8 	criteria:
108.9 	(1) the property is primarily used for storing and exhibiting tools, equipment, and artifacts 
108.10 	useful in providing an understanding of local or regional agricultural history. Primary use 
108.11 	is determined each year based on the number of days the property is used solely for storage 
108.12 	and exhibition purposes;
108.13 	(2) the property is limited to a maximum of 20 40 acres per owner per county, but 
108.14 	includes the land and any taxable structures, fixtures, and equipment on the land;
108.15 	(3) the property is not used for a revenue-producing activity for more than ten days in 
108.16 	each calendar year; and
108.17 	(4) the property is not used for residential purposes on either a temporary or permanent 
108.18 	basis.
108.19 	For assessment year 2019 only, an exemption application under this subdivision must be 
108.20 	filed with the county assessor by July 1, 2019.

108.21 	EFFECTIVE DATE. This section is effective beginning with assessment year 2019, 
108.22 	for taxes payable in 2020, and thereafter.

108.23 	Sec. 6. Minnesota Statutes 2018, section 272.02, is amended by adding a subdivision to 
108.24 	read:
108.25 		Subd. 102.Certain property owned by an Indian tribe. (a) Property is exempt that:
108.26 	(1) is located in a city of the first class with a population of more than 380,000 as of the 
108.27 	2010 federal census;
108.28 	(2) was on January 1, 2016, and is for the current assessment, owned by a federally 
108.29 	recognized Indian tribe, or its instrumentality, that is located within the state of Minnesota; 
108.30 	and
109.1 	(3) is used exclusively as a pharmacy, as defined in section 151.01, subdivision 2.
109.2 	(b) Property that qualifies for the exemption under this subdivision is limited to parcels 
109.3 	and structures that do not exceed, in the aggregate, 4,000 square feet. Property acquired for 
109.4 	single-family housing, market-rate apartments, agriculture, or forestry does not qualify for 
109.5 	this exemption.
109.6 	For assessment year 2019 only, an exemption application under this subdivision must be 
109.7 	filed with the county assessor by July 1, 2019. The exemption created by this subdivision 
109.8 	expires with taxes payable in 2029.

109.9 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2020 
109.10 	and thereafter.

109.11 	Sec. 7. Minnesota Statutes 2018, section 272.02, is amended by adding a subdivision to 
109.12 	read:
109.13 		Subd. 103.Licensed child care facility. Property used as a licensed child care facility 
109.14 	that accepts families participating in the child care assistance program under chapter 119B, 
109.15 	and that is owned and operated by a nonprofit charitable organization that qualifies for tax 
109.16 	exemption under section 501(c)(3) of the Internal Revenue Code, is exempt. For the purposes 
109.17 	of this subdivision, "licensed child care facility" means a child care center licensed under 
109.18 	Minnesota Rules, chapter 9503, or a facility used to provide licensed family day care or 
109.19 	group family day care as defined under Minnesota Rules, chapter 9502.
109.20 	For assessment year 2019 only, an exemption application under this subdivision must be 
109.21 	filed with the county assessor by July 1, 2019.

109.22 	EFFECTIVE DATE. This section is effective beginning with assessment year 2019, 
109.23 	for taxes payable in 2020.

109.24 	Sec. 8. Minnesota Statutes 2018, section 272.115, subdivision 1, is amended to read:
109.25 		Subdivision 1.Requirement. Except as otherwise provided in subdivision 5, 6, or 7, 
109.26 	whenever any real estate is sold for a consideration in excess of $1,000 $3,000, whether by 
109.27 	warranty deed, quitclaim deed, contract for deed or any other method of sale, the grantor, 
109.28 	grantee or the legal agent of either shall file a certificate of value with the county auditor 
109.29 	in the county in which the property is located when the deed or other document is presented 
109.30 	for recording. Contract for deeds are subject to recording under section 507.235, subdivision 
109.31 	1. Value shall, in the case of any deed not a gift, be the amount of the full actual consideration 
109.32 	thereof, paid or to be paid, including the amount of any lien or liens assumed. The items 
110.1 	and value of personal property transferred with the real property must be listed and deducted 
110.2 	from the sale price. The certificate of value shall include the classification to which the 
110.3 	property belongs for the purpose of determining the fair market value of the property, and 
110.4 	shall include any proposed change in use of the property known to the person filing the 
110.5 	certificate that could change the classification of the property. The certificate shall include 
110.6 	financing terms and conditions of the sale which are necessary to determine the actual, 
110.7 	present value of the sale price for purposes of the sales ratio study. If the property is being 
110.8 	acquired as part of a like-kind exchange under section 1031 of the Internal Revenue Code 
110.9 	of 1986, as amended through December 31, 2006, that must be indicated on the certificate. 
110.10 	The commissioner of revenue shall promulgate administrative rules specifying the financing 
110.11 	terms and conditions which must be included on the certificate. The certificate of value 
110.12 	must include the Social Security number or the federal employer identification number of 
110.13 	the grantors and grantees. However, a married person who is not an owner of record and 
110.14 	who is signing a conveyance instrument along with the person's spouse solely to release 
110.15 	and convey their marital interest, if any, in the real property being conveyed is not a grantor 
110.16 	for the purpose of the preceding sentence. A statement in the deed that is substantially in 
110.17 	the following form is sufficient to allow the county auditor to accept a certificate for filing 
110.18 	without the Social Security number of the named spouse: "(Name) claims no ownership 
110.19 	interest in the real property being conveyed and is executing this instrument solely to release 
110.20 	and convey a marital interest, if any, in that real property." The identification numbers of 
110.21 	the grantors and grantees are private data on individuals or nonpublic data as defined in 
110.22 	section 13.02, subdivisions 9 and 12, but, notwithstanding that section, the private or 
110.23 	nonpublic data may be disclosed to the commissioner of revenue for purposes of tax 
110.24 	administration. The information required to be shown on the certificate of value is limited 
110.25 	to the information required as of the date of the acknowledgment on the deed or other 
110.26 	document to be recorded.

110.27 	EFFECTIVE DATE. This section is effective for certificates of value filed after 
110.28 	December 31, 2019.

110.29 	Sec. 9. Minnesota Statutes 2018, section 273.124, subdivision 3a, is amended to read:
110.30 		Subd. 3a.Manufactured home park cooperative. (a) When a manufactured home park 
110.31 	is owned by a corporation or association organized under chapter 308A or 308B, and each 
110.32 	person who owns a share or shares in the corporation or association is entitled to occupy a 
110.33 	lot within the park, the corporation or association may claim homestead treatment for the 
110.34 	park. Each lot must be designated by legal description or number, and each lot is limited to 
110.35 	not more than one-half acre of land.
111.1 	(b) The manufactured home park shall be entitled to homestead treatment if all of the 
111.2 	following criteria are met:
111.3 	(1) the occupant or the cooperative corporation or association is paying the ad valorem 
111.4 	property taxes and any special assessments levied against the land and structure either 
111.5 	directly, or indirectly through dues to the corporation or association; and
111.6 	(2) the corporation or association organized under chapter 308A or 308B is wholly 
111.7 	owned by persons having a right to occupy a lot owned by the corporation or association.
111.8 	(c) A charitable corporation, organized under the laws of Minnesota with no outstanding 
111.9 	stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) tax-exempt status, 
111.10 	qualifies for homestead treatment with respect to a manufactured home park if its members 
111.11 	hold residential participation warrants entitling them to occupy a lot in the manufactured 
111.12 	home park.
111.13 	(d) "Homestead treatment" under this subdivision means the classification rate provided 
111.14 	for class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause 
111.15 	(5), item (ii)., and the homestead market value exclusion under section 273.13, subdivision 
111.16 	35, does not apply and the property taxes assessed against the park shall not be included in 
111.17 	the determination of taxes payable for rent paid under section 290A.03.

111.18 	EFFECTIVE DATE. This section is effective beginning with claims for taxes payable 
111.19 	in 2020.

111.20 	Sec. 10. Minnesota Statutes 2018, section 273.124, subdivision 8, is amended to read:
111.21 		Subd. 8.Homestead owned by or leased to family farm corporation, joint farm 
111.22 	venture, limited liability company, or partnership. (a) Each family farm corporation; 
111.23 	each joint family farm venture; and each limited liability company or partnership which 
111.24 	operates a family farm; is entitled to class 1b under section 273.13, subdivision 22, paragraph 
111.25 	(b), or class 2a assessment for one homestead occupied by a shareholder, member, or partner 
111.26 	thereof who is residing on the land, and actively engaged in farming of the land owned by 
111.27 	the family farm corporation, joint family farm venture, limited liability company, or 
111.28 	partnership. Homestead treatment applies even if:
111.29 	(1) legal title to the property is in the name of the family farm corporation, joint family 
111.30 	farm venture, limited liability company, or partnership, and not in the name of the person 
111.31 	residing on it.; or
112.1 	(2) the family farm is operated by a family farm corporation, joint family farm venture, 
112.2 	partnership, or limited liability company other than the family farm corporation, joint family 
112.3 	farm venture, partnership, or limited liability company that owns the land, provided that:
112.4 	(i) the shareholder, member, or partner residing on and actively engaged in farming the 
112.5 	land is a shareholder, member, or partner of the family farm corporation, joint family farm 
112.6 	venture, partnership, or limited liability company that is operating the farm and;
112.7 	(ii) more than half of the shareholders, members, or partners of each family farm 
112.8 	corporation, joint family farm venture, partnership, or limited liability company are persons 
112.9 	or spouses of persons who are a qualifying relative under section 273.124, subdivision 1, 
112.10 	paragraphs (c) and (d).
112.11 	"Family farm corporation," "family farm," and "partnership operating a family farm" 
112.12 	have the meanings given in section 500.24, except that the number of allowable shareholders, 
112.13 	members, or partners under this subdivision shall not exceed 12. "Limited liability company" 
112.14 	has the meaning contained in sections 322C.0102, subdivision 12, and 500.24, subdivision 
112.15 	2, paragraphs (l) and (m). "Joint family farm venture" means a cooperative agreement among 
112.16 	two or more farm enterprises authorized to operate a family farm under section 500.24.
112.17 	(b) In addition to property specified in paragraph (a), any other residences owned by 
112.18 	family farm corporations, joint family farm ventures, limited liability companies, or 
112.19 	partnerships described in paragraph (a) which are located on agricultural land and occupied 
112.20 	as homesteads by its shareholders, members, or partners who are actively engaged in farming 
112.21 	on behalf of that corporation, joint farm venture, limited liability company, or partnership 
112.22 	must also be assessed as class 2a property or as class 1b property under section 273.13.
112.23 	(c) Agricultural property that is owned by a member, partner, or shareholder of a family 
112.24 	farm corporation or joint family farm venture, limited liability company operating a family 
112.25 	farm, or by a partnership operating a family farm and leased to the family farm corporation, 
112.26 	limited liability company, partnership, or joint farm venture, as defined in paragraph (a), is 
112.27 	eligible for classification as class 1b or class 2a under section 273.13, if the owner is actually 
112.28 	residing on the property, and is actually engaged in farming the land on behalf of that 
112.29 	corporation, joint farm venture, limited liability company, or partnership. This paragraph 
112.30 	applies without regard to any legal possession rights of the family farm corporation, joint 
112.31 	family farm venture, limited liability company, or partnership under the lease.
112.32 	(d) Nonhomestead agricultural property that is owned by a family farm corporation, 
112.33 	joint farm venture, limited liability company, or partnership; and located not farther than 
112.34 	four townships or cities, or combination thereof, from agricultural land that is owned, and 
113.1 	used for the purposes of a homestead by an individual who is a shareholder, member, or 
113.2 	partner of the corporation, venture, company, or partnership; is entitled to receive the first 
113.3 	tier homestead classification rate on any remaining market value in the first homestead class 
113.4 	tier that is in excess of the market value of the shareholder's, member's, or partner's class 2 
113.5 	agricultural homestead property, if the owner, or someone acting on the owner's behalf 
113.6 	notifies the county assessor by July 1 that the property may be eligible under this paragraph 
113.7 	for the current assessment year, for taxes payable in the following year. As used in this 
113.8 	paragraph, "agricultural property" means property classified as 2a under section 273.13, 
113.9 	along with any contiguous property classified as 2b under section 273.13, if the contiguous 
113.10 	2a and 2b properties are under the same ownership.

113.11 	EFFECTIVE DATE. This section is effective beginning with assessment year 2019.

113.12 	Sec. 11. Minnesota Statutes 2018, section 273.124, subdivision 14, is amended to read:
113.13 		Subd. 14.Agricultural homesteads; special provisions.  (a) Real estate of less than ten 
113.14 	acres that is the homestead of its owner must be classified as class 2a under section 273.13, 
113.15 	subdivision 23, paragraph (a), if:
113.16 	(1) the parcel on which the house is located is contiguous on at least two sides to (i) 
113.17 	agricultural land, (ii) land owned or administered by the United States Fish and Wildlife 
113.18 	Service, or (iii) land administered by the Department of Natural Resources on which in lieu 
113.19 	taxes are paid under sections 477A.11 to 477A.14;
113.20 	(2) its owner also owns a noncontiguous parcel of agricultural land that is at least 20 
113.21 	acres;
113.22 	(3) the noncontiguous land is located not farther than four townships or cities, or a 
113.23 	combination of townships or cities from the homestead; and
113.24 	(4) the agricultural use value of the noncontiguous land and farm buildings is equal to 
113.25 	at least 50 percent of the market value of the house, garage, and one acre of land.
113.26 	Homesteads initially classified as class 2a under the provisions of this paragraph shall 
113.27 	remain classified as class 2a, irrespective of subsequent changes in the use of adjoining 
113.28 	properties, as long as the homestead remains under the same ownership, the owner owns a 
113.29 	noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use 
113.30 	value qualifies under clause (4). Homestead classification under this paragraph is limited 
113.31 	to property that qualified under this paragraph for the 1998 assessment.
113.32 	(b)(i) Agricultural property shall be classified as the owner's homestead, to the same 
113.33 	extent as other agricultural homestead property, if all of the following criteria are met:
114.1 	(1) the agricultural property consists of at least 40 acres including undivided government 
114.2 	lots and correctional 40's;
114.3 	(2) the owner, the owner's spouse, or a grandchild, child, sibling, or parent of the owner 
114.4 	or of the owner's spouse, is actively farming the agricultural property, either on the person's 
114.5 	own behalf as an individual or on behalf of a partnership operating a family farm, family 
114.6 	farm corporation, joint family farm venture, or limited liability company of which the person 
114.7 	is a partner, shareholder, or member;
114.8 	(3) both the owner of the agricultural property and the person who is actively farming 
114.9 	the agricultural property under clause (2), are Minnesota residents;
114.10 	(4) neither the owner nor the spouse of the owner claims another agricultural homestead 
114.11 	in Minnesota; and
114.12 	(5) neither the owner nor the person actively farming the agricultural property lives 
114.13 	farther than four townships or cities, or a combination of four townships or cities, from the 
114.14 	agricultural property, except that if the owner or the owner's spouse is required to live in 
114.15 	employer-provided housing, the owner or owner's spouse, whichever is actively farming 
114.16 	the agricultural property, may live more than four townships or cities, or combination of 
114.17 	four townships or cities from the agricultural property.
114.18 	The relationship under this paragraph may be either by blood or marriage.
114.19 	(ii) Agricultural property held by a trustee under a trust is eligible for agricultural 
114.20 	homestead classification under this paragraph if the qualifications in clause (i) are met, 
114.21 	except that "owner" means the grantor of the trust.
114.22 	(iii) Property containing the residence of an owner who owns qualified property under 
114.23 	clause (i) shall be classified as part of the owner's agricultural homestead, if that property 
114.24 	is also used for noncommercial storage or drying of agricultural crops.
114.25 	(iv) (iii) As used in this paragraph, "agricultural property" means class 2a property and 
114.26 	any class 2b property that is contiguous to and under the same ownership as the class 2a 
114.27 	property.
114.28 	(c) Noncontiguous land shall be included as part of a homestead under section 273.13, 
114.29 	subdivision 23, paragraph (a), only if the homestead is classified as class 2a and the detached 
114.30 	land is located in the same township or city, or not farther than four townships or cities or 
114.31 	combination thereof from the homestead. Any taxpayer of these noncontiguous lands must 
114.32 	notify the county assessor that the noncontiguous land is part of the taxpayer's homestead, 
115.1 	and, if the homestead is located in another county, the taxpayer must also notify the assessor 
115.2 	of the other county.
115.3 	(d) Agricultural land used for purposes of a homestead and actively farmed by a person 
115.4 	holding a vested remainder interest in it must be classified as a homestead under section 
115.5 	273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a, any other 
115.6 	dwellings on the land used for purposes of a homestead by persons holding vested remainder 
115.7 	interests who are actively engaged in farming the property, and up to one acre of the land 
115.8 	surrounding each homestead and reasonably necessary for the use of the dwelling as a home, 
115.9 	must also be assessed class 2a.
115.10 	(e) Agricultural land and buildings that were class 2a homestead property under section 
115.11 	273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain classified as 
115.12 	agricultural homesteads for subsequent assessments if:
115.13 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
115.14 	homestead as a result of the April 1997 floods;
115.15 	(2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, or 
115.16 	Wilkin;
115.17 	(3) the agricultural land and buildings remain under the same ownership for the current 
115.18 	assessment year as existed for the 1997 assessment year and continue to be used for 
115.19 	agricultural purposes;
115.20 	(4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles 
115.21 	of one of the parcels of agricultural land that is owned by the taxpayer; and
115.22 	(5) the owner notifies the county assessor that the relocation was due to the 1997 floods, 
115.23 	and the owner furnishes the assessor any information deemed necessary by the assessor in 
115.24 	verifying the change in dwelling. Further notifications to the assessor are not required if the 
115.25 	property continues to meet all the requirements in this paragraph and any dwellings on the 
115.26 	agricultural land remain uninhabited.
115.27 	(f) Agricultural land and buildings that were class 2a homestead property under section 
115.28 	273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain classified 
115.29 	agricultural homesteads for subsequent assessments if:
115.30 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
115.31 	homestead as a result of damage caused by a March 29, 1998, tornado;
115.32 	(2) the property is located in the county of Blue Earth, Brown, Cottonwood, LeSueur, 
115.33 	Nicollet, Nobles, or Rice;
116.1 	(3) the agricultural land and buildings remain under the same ownership for the current 
116.2 	assessment year as existed for the 1998 assessment year;
116.3 	(4) the dwelling occupied by the owner is located in this state and is within 50 miles of 
116.4 	one of the parcels of agricultural land that is owned by the taxpayer; and
116.5 	(5) the owner notifies the county assessor that the relocation was due to a March 29, 
116.6 	1998, tornado, and the owner furnishes the assessor any information deemed necessary by 
116.7 	the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the 
116.8 	owner must notify the assessor by December 1, 1998. Further notifications to the assessor 
116.9 	are not required if the property continues to meet all the requirements in this paragraph and 
116.10 	any dwellings on the agricultural land remain uninhabited.
116.11 	(g) Agricultural property of a family farm corporation, joint family farm venture, family 
116.12 	farm limited liability company, or partnership operating a family farm as described under 
116.13 	subdivision 8 shall be classified homestead, to the same extent as other agricultural homestead 
116.14 	property, if all of the following criteria are met:
116.15 	(1) the property consists of at least 40 acres including undivided government lots and 
116.16 	correctional 40's;
116.17 	(2) a shareholder, member, or partner of that entity is actively farming the agricultural 
116.18 	property;
116.19 	(3) that shareholder, member, or partner who is actively farming the agricultural property 
116.20 	is a Minnesota resident;
116.21 	(4) neither that shareholder, member, or partner, nor the spouse of that shareholder, 
116.22 	member, or partner claims another agricultural homestead in Minnesota; and
116.23 	(5) that shareholder, member, or partner does not live farther than four townships or 
116.24 	cities, or a combination of four townships or cities, from the agricultural property.
116.25 	Homestead treatment applies under this paragraph even if:
116.26 	(i) the shareholder, member, or partner of that entity is actively farming the agricultural 
116.27 	property on the shareholder's, member's, or partner's own behalf; or
116.28 	(ii) the family farm is operated by a family farm corporation, joint family farm venture, 
116.29 	partnership, or limited liability company other than the family farm corporation, joint family 
116.30 	farm venture, partnership, or limited liability company that owns the land, provided that:
116.31 	(A) the shareholder, member, or partner of the family farm corporation, joint family 
116.32 	farm venture, partnership, or limited liability company that owns the land who is actively 
117.1 	farming the land is a shareholder, member, or partner of the family farm corporation, joint 
117.2 	family farm venture, partnership, or limited liability company that is operating the farm; 
117.3 	and
117.4 	(B) more than half of the shareholders, members, or partners of each family farm 
117.5 	corporation, joint family farm venture, partnership, or limited liability company are persons 
117.6 	or spouses of persons who are a qualifying relative under section 273.124, subdivision 1, 
117.7 	paragraphs (c) and (d).
117.8 	Homestead treatment applies under this paragraph for property leased to a family farm 
117.9 	corporation, joint farm venture, limited liability company, or partnership operating a family 
117.10 	farm if legal title to the property is in the name of an individual who is a member, shareholder, 
117.11 	or partner in the entity.
117.12 	(h) To be eligible for the special agricultural homestead under this subdivision, an initial 
117.13 	full application must be submitted to the county assessor where the property is located. 
117.14 	Owners and the persons who are actively farming the property shall be required to complete 
117.15 	only a one-page abbreviated version of the application in each subsequent year provided 
117.16 	that none of the following items have changed since the initial application:
117.17 	(1) the day-to-day operation, administration, and financial risks remain the same;
117.18 	(2) the owners and the persons actively farming the property continue to live within the 
117.19 	four townships or city criteria and are Minnesota residents;
117.20 	(3) the same operator of the agricultural property is listed with the Farm Service Agency;
117.21 	(4) a Schedule F or equivalent income tax form was filed for the most recent year;
117.22 	(5) the property's acreage is unchanged; and
117.23 	(6) none of the property's acres have been enrolled in a federal or state farm program 
117.24 	since the initial application.
117.25 	The owners and any persons who are actively farming the property must include the 
117.26 	appropriate Social Security numbers, and sign and date the application. If any of the specified 
117.27 	information has changed since the full application was filed, the owner must notify the 
117.28 	assessor, and must complete a new application to determine if the property continues to 
117.29 	qualify for the special agricultural homestead. The commissioner of revenue shall prepare 
117.30 	a standard reapplication form for use by the assessors.
118.1 	(i) Agricultural land and buildings that were class 2a homestead property under section 
118.2 	273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain classified 
118.3 	agricultural homesteads for subsequent assessments if:
118.4 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
118.5 	homestead as a result of damage caused by the August 2007 floods;
118.6 	(2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele, 
118.7 	Wabasha, or Winona;
118.8 	(3) the agricultural land and buildings remain under the same ownership for the current 
118.9 	assessment year as existed for the 2007 assessment year;
118.10 	(4) the dwelling occupied by the owner is located in this state and is within 50 miles of 
118.11 	one of the parcels of agricultural land that is owned by the taxpayer; and
118.12 	(5) the owner notifies the county assessor that the relocation was due to the August 2007 
118.13 	floods, and the owner furnishes the assessor any information deemed necessary by the 
118.14 	assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the 
118.15 	owner must notify the assessor by December 1, 2008. Further notifications to the assessor 
118.16 	are not required if the property continues to meet all the requirements in this paragraph and 
118.17 	any dwellings on the agricultural land remain uninhabited.
118.18 	(j) Agricultural land and buildings that were class 2a homestead property under section 
118.19 	273.13, subdivision 23, paragraph (a), for the 2008 assessment shall remain classified as 
118.20 	agricultural homesteads for subsequent assessments if:
118.21 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
118.22 	homestead as a result of the March 2009 floods;
118.23 	(2) the property is located in the county of Marshall;
118.24 	(3) the agricultural land and buildings remain under the same ownership for the current 
118.25 	assessment year as existed for the 2008 assessment year and continue to be used for 
118.26 	agricultural purposes;
118.27 	(4) the dwelling occupied by the owner is located in Minnesota and is within 50 miles 
118.28 	of one of the parcels of agricultural land that is owned by the taxpayer; and
118.29 	(5) the owner notifies the county assessor that the relocation was due to the 2009 floods, 
118.30 	and the owner furnishes the assessor any information deemed necessary by the assessor in 
118.31 	verifying the change in dwelling. Further notifications to the assessor are not required if the 
119.1 	property continues to meet all the requirements in this paragraph and any dwellings on the 
119.2 	agricultural land remain uninhabited.

119.3 	EFFECTIVE DATE. This section is effective beginning for property taxes payable in 
119.4 	2020.

119.5 	Sec. 12. Minnesota Statutes 2018, section 273.124, subdivision 21, is amended to read:
119.6 		Subd. 21.Trust property; homestead. Real or personal property, including agricultural 
119.7 	property, held by a trustee under a trust is eligible for classification as homestead property 
119.8 	if the property satisfies the requirements of paragraph (a), (b), (c), or (d), or (e).
119.9 	(a) The grantor or surviving spouse of the grantor of the trust occupies and uses the 
119.10 	property as a homestead.
119.11 	(b) A relative or surviving relative of the grantor who meets the requirements of 
119.12 	subdivision 1, paragraph (c), in the case of residential real estate; or subdivision 1, paragraph 
119.13 	(d), in the case of agricultural property, occupies and uses the property as a homestead.
119.14 	(c) A family farm corporation, joint farm venture, limited liability company, or partnership 
119.15 	operating a family farm in which the grantor or the grantor's surviving spouse is a 
119.16 	shareholder, member, or partner rents the property; and, either (1) a shareholder, member, 
119.17 	or partner of the corporation, joint farm venture, limited liability company, or partnership 
119.18 	occupies and uses the property as a homestead; or (2) the property is at least 40 acres, 
119.19 	including undivided government lots and correctional 40's, and a shareholder, member, or 
119.20 	partner of the tenant-entity is actively farming the property on behalf of the corporation, 
119.21 	joint farm venture, limited liability company, or partnership.
119.22 	(d) A person who has received homestead classification for property taxes payable in 
119.23 	2000 on the basis of an unqualified legal right under the terms of the trust agreement to 
119.24 	occupy the property as that person's homestead and who continues to use the property as a 
119.25 	homestead; or, a person who received the homestead classification for taxes payable in 2005 
119.26 	under paragraph (c) who does not qualify under paragraph (c) for taxes payable in 2006 or 
119.27 	thereafter but who continues to qualify under paragraph (c) as it existed for taxes payable 
119.28 	in 2005.
119.29 	(e) The qualifications under subdivision 14, paragraph (b), clause (i), are met. For 
119.30 	purposes of this paragraph, "owner" means the grantor of the trust or the surviving spouse 
119.31 	of the grantor.
119.32 	(f) For purposes of this subdivision, the following terms have the meanings given them:
120.1 	(1) "agricultural property" means the house, garage, other farm buildings and structures, 
120.2 	and agricultural land;
120.3 	(2) "agricultural land" has the meaning given in section 273.13, subdivision 23, except 
120.4 	that the phrases "owned by same person" or "under the same ownership" as used in that 
120.5 	subdivision mean and include contiguous tax parcels owned by:
120.6 	(i) an individual and a trust of which the individual, the individual's spouse, or the 
120.7 	individual's deceased spouse is the grantor; or
120.8 	(ii) different trusts of which the grantors of each trust are any combination of an 
120.9 	individual, the individual's spouse, or the individual's deceased spouse; and
120.10 	For purposes of this subdivision, (3) "grantor" is defined as means the person creating 
120.11 	or establishing a testamentary, inter Vivos, revocable or irrevocable trust by written 
120.12 	instrument or through the exercise of a power of appointment.
120.13 	(g) Noncontiguous agricultural land is included as part of a homestead under this 
120.14 	subdivision, only if the homestead is classified as class 2a, as defined in section 273.13, 
120.15 	subdivision 23, and the detached land is located in the same township or city, or not farther 
120.16 	than four townships or cities or combination thereof from the homestead. Any taxpayer of 
120.17 	these noncontiguous lands must notify the county assessor that the noncontiguous land is 
120.18 	part of the taxpayer's homestead, and, if the homestead is located in another county, the 
120.19 	taxpayer must also notify the assessor of the other county.

120.20 	EFFECTIVE DATE. This section is effective beginning for property taxes payable in 
120.21 	2020.

120.22 	Sec. 13. Minnesota Statutes 2018, section 273.124, is amended by adding a subdivision 
120.23 	to read:
120.24 		Subd. 23.Fractional homesteads. For property classified as an agricultural homestead 
120.25 	under section 273.13, subdivision 23, paragraph (a), ownership percentages for property 
120.26 	owned by tenants in common are based on deeded ownership amounts for each owner who 
120.27 	homesteads the property.

120.28 	EFFECTIVE DATE; APPLICATION. This section is effective for and must be applied 
120.29 	to agricultural homestead properties owned by tenants in common by all county assessors 
120.30 	beginning no later than assessment year 2019 and thereafter, unless the county assessor 
120.31 	determines that a county is unable to comply with this requirement, in which case the county 
120.32 	must implement this section beginning with assessment year 2020 and thereafter.

121.1 	Sec. 14. Minnesota Statutes 2018, section 273.1245, subdivision 2, is amended to read:
121.2 		Subd. 2.Disclosure. The assessor shall disclose the data described in subdivision 1 to 
121.3 	the commissioner of revenue as provided by law. The assessor shall also disclose all or 
121.4 	portions of the data described in subdivision 1 to:
121.5 	(1) the county treasurer solely for the purpose of proceeding under the Revenue Recapture 
121.6 	Act to recover personal property taxes owing.; and
121.7 	(2) the county veterans service officer for the purpose of determining a person's eligibility 
121.8 	for the veteran with a disability homestead market value exclusion under section 273.13, 
121.9 	subdivision 34.

121.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

121.11 	Sec. 15. Minnesota Statutes 2018, section 273.13, subdivision 23, is amended to read:
121.12 		Subd. 23.Class 2. (a) An agricultural homestead consists of class 2a agricultural land 
121.13 	that is homesteaded, along with any class 2b rural vacant land that is contiguous to the class 
121.14 	2a land under the same ownership. The market value of the house and garage and immediately 
121.15 	surrounding one acre of land has the same classification rates as class 1a or 1b property 
121.16 	under subdivision 22. The value of the remaining land including improvements up to the 
121.17 	first tier valuation limit of agricultural homestead property has a classification rate of 0.5 
121.18 	percent of market value. The remaining property over the first tier has a classification rate 
121.19 	of one percent of market value. For purposes of this subdivision, the "first tier valuation 
121.20 	limit of agricultural homestead property" and "first tier" means the limit certified under 
121.21 	section 273.11, subdivision 23.
121.22 	(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that 
121.23 	are agricultural land and buildings. Class 2a property has a classification rate of one percent 
121.24 	of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a 
121.25 	property must also include any property that would otherwise be classified as 2b, but is 
121.26 	interspersed with class 2a property, including but not limited to sloughs, wooded wind 
121.27 	shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement, 
121.28 	and other similar land that is impractical for the assessor to value separately from the rest 
121.29 	of the property or that is unlikely to be able to be sold separately from the rest of the property.
121.30 	An assessor may classify the part of a parcel described in this subdivision that is used 
121.31 	for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
121.32 	(c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that 
121.33 	are unplatted real estate, rural in character and not used for agricultural purposes, including 
122.1 	land used for growing trees for timber, lumber, and wood and wood products, that is not 
122.2 	improved with a structure. The presence of a minor, ancillary nonresidential structure as 
122.3 	defined by the commissioner of revenue does not disqualify the property from classification 
122.4 	under this paragraph. Any parcel of 20 acres or more improved with a structure that is not 
122.5 	a minor, ancillary nonresidential structure must be split-classified, and ten acres must be 
122.6 	assigned to the split parcel containing the structure. Class 2b property has a classification 
122.7 	rate of one percent of market value unless it is part of an agricultural homestead under 
122.8 	paragraph (a), or qualifies as class 2c under paragraph (d).
122.9 	(d) Class 2c managed forest land consists of no less than 20 and no more than 1,920 
122.10 	acres statewide per taxpayer that is being managed under a forest management plan that 
122.11 	meets the requirements of chapter 290C, but is not enrolled in the sustainable forest resource 
122.12 	management incentive program. It has a classification rate of .65 percent, provided that the 
122.13 	owner of the property must apply to the assessor in order for the property to initially qualify 
122.14 	for the reduced rate and provide the information required by the assessor to verify that the 
122.15 	property qualifies for the reduced rate. If the assessor receives the application and information 
122.16 	before May 1 in an assessment year, the property qualifies beginning with that assessment 
122.17 	year. If the assessor receives the application and information after April 30 in an assessment 
122.18 	year, the property may not qualify until the next assessment year. The commissioner of 
122.19 	natural resources must concur that the land is qualified. The commissioner of natural 
122.20 	resources shall annually provide county assessors verification information on a timely basis. 
122.21 	The presence of a minor, ancillary nonresidential structure as defined by the commissioner 
122.22 	of revenue does not disqualify the property from classification under this paragraph.
122.23 	(e) Agricultural land as used in this section means:
122.24 	(1) contiguous acreage of ten acres or more, used during the preceding year for 
122.25 	agricultural purposes; or
122.26 	(2) contiguous acreage used during the preceding year for an intensive livestock or 
122.27 	poultry confinement operation, provided that land used only for pasturing or grazing does 
122.28 	not qualify under this clause.
122.29 	"Agricultural purposes" as used in this section means the raising, cultivation, drying, or 
122.30 	storage of agricultural products for sale, or the storage of machinery or equipment used in 
122.31 	support of agricultural production by the same farm entity. For a property to be classified 
122.32 	as agricultural based only on the drying or storage of agricultural products, the products 
122.33 	being dried or stored must have been produced by the same farm entity as the entity operating 
122.34 	the drying or storage facility. "Agricultural purposes" also includes (i) enrollment in a local 
123.1 	conservation program or the Reinvest in Minnesota program under sections 103F.501 to 
123.2 	103F.535 or the federal Conservation Reserve Program as contained in Public Law 99-198 
123.3 	or a similar state or federal conservation program if the property was classified as agricultural 
123.4 	(i) (A) under this subdivision for taxes payable in 2003 because of its enrollment in a 
123.5 	qualifying program and the land remains enrolled or (ii) (B) in the year prior to its enrollment, 
123.6 	or (ii) use of land, not to exceed three acres, to provide environmental benefits such as buffer 
123.7 	strips, old growth forest restoration or retention, or retention ponds to prevent soil erosion. 
123.8 	For purposes of this section, a "local conservation program" means a program administered 
123.9 	by a town, statutory or home rule charter city, or county, including a watershed district, 
123.10 	water management organization, or soil and water conservation district, in which landowners 
123.11 	voluntarily enroll land and receive incentive payments equal to at least $50 per acre in 
123.12 	exchange for use or other restrictions placed on the land. In order for property to qualify 
123.13 	under the local conservation program provision, a taxpayer must apply to the assessor by 
123.14 	February 1 of the assessment year and must submit the information required by the assessor, 
123.15 	including but not limited to a copy of the program requirements, the specific agreement 
123.16 	between the land owner and the local agency, if applicable, and a map of the conservation 
123.17 	area. Agricultural classification shall not be based upon the market value of any residential 
123.18 	structures on the parcel or contiguous parcels under the same ownership.
123.19 	"Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous 
123.20 	portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion 
123.21 	of, a set of contiguous tax parcels under that section that are owned by the same person.
123.22 	(f) Agricultural land under this section also includes:
123.23 	(1) contiguous acreage that is less than ten acres in size and exclusively used in the 
123.24 	preceding year for raising or cultivating agricultural products; or
123.25 	(2) contiguous acreage that contains a residence and is less than 11 acres in size, if the 
123.26 	contiguous acreage exclusive of the house, garage, and surrounding one acre of land was 
123.27 	used in the preceding year for one or more of the following three uses:
123.28 	(i) for an intensive grain drying or storage operation, or for intensive machinery or 
123.29 	equipment storage activities used to support agricultural activities on other parcels of property 
123.30 	operated by the same farming entity;
123.31 	(ii) as a nursery, provided that only those acres used intensively to produce nursery stock 
123.32 	are considered agricultural land; or
123.33 	(iii) for intensive market farming; for purposes of this paragraph, "market farming" 
123.34 	means the cultivation of one or more fruits or vegetables or production of animal or other 
124.1 	agricultural products for sale to local markets by the farmer or an organization with which 
124.2 	the farmer is affiliated.
124.3 	"Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as 
124.4 	described in section 272.193, or all of a set of contiguous tax parcels under that section that 
124.5 	are owned by the same person.
124.6 	(g) Land shall be classified as agricultural even if all or a portion of the agricultural use 
124.7 	of that property is the leasing to, or use by another person for agricultural purposes.
124.8 	Classification under this subdivision is not determinative for qualifying under section 
124.9 	273.111.
124.10 	(h) The property classification under this section supersedes, for property tax purposes 
124.11 	only, any locally administered agricultural policies or land use restrictions that define 
124.12 	minimum or maximum farm acreage.
124.13 	(i) The term "agricultural products" as used in this subdivision includes production for 
124.14 	sale of:
124.15 	(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing 
124.16 	animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, bees, 
124.17 	and apiary products by the owner;
124.18 	(2) aquacultural products for sale and consumption, as defined under section 17.47, if 
124.19 	the aquaculture occurs on land zoned for agricultural use;
124.20 	(3) the commercial boarding of horses, which may include related horse training and 
124.21 	riding instruction, if the boarding is done on property that is also used for raising pasture 
124.22 	to graze horses or raising or cultivating other agricultural products as defined in clause (1);
124.23 	(4) property which is owned and operated by nonprofit organizations used for equestrian 
124.24 	activities, excluding racing;
124.25 	(5) game birds and waterfowl bred and raised (i) on a game farm licensed under section 
124.26 	97A.105, provided that the annual licensing report to the Department of Natural Resources, 
124.27 	which must be submitted annually by March 30 to the assessor, indicates that at least 500 
124.28 	birds were raised or used for breeding stock on the property during the preceding year and 
124.29 	that the owner provides a copy of the owner's most recent schedule F; or (ii) for use on a 
124.30 	shooting preserve licensed under section 97A.115;
124.31 	(6) insects primarily bred to be used as food for animals;
125.1 	(7) trees, grown for sale as a crop, including short rotation woody crops, and not sold 
125.2 	for timber, lumber, wood, or wood products; and
125.3 	(8) maple syrup taken from trees grown by a person licensed by the Minnesota 
125.4 	Department of Agriculture under chapter 28A as a food processor.
125.5 	(j) If a parcel used for agricultural purposes is also used for commercial or industrial 
125.6 	purposes, including but not limited to:
125.7 	(1) wholesale and retail sales;
125.8 	(2) processing of raw agricultural products or other goods;
125.9 	(3) warehousing or storage of processed goods; and
125.10 	(4) office facilities for the support of the activities enumerated in clauses (1), (2), and 
125.11 	(3),
125.12 	the assessor shall classify the part of the parcel used for agricultural purposes as class 1b, 
125.13 	2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use. 
125.14 	The grading, sorting, and packaging of raw agricultural products for first sale is considered 
125.15 	an agricultural purpose. A greenhouse or other building where horticultural or nursery 
125.16 	products are grown that is also used for the conduct of retail sales must be classified as 
125.17 	agricultural if it is primarily used for the growing of horticultural or nursery products from 
125.18 	seed, cuttings, or roots and occasionally as a showroom for the retail sale of those products. 
125.19 	Use of a greenhouse or building only for the display of already grown horticultural or nursery 
125.20 	products does not qualify as an agricultural purpose.
125.21 	(k) The assessor shall determine and list separately on the records the market value of 
125.22 	the homestead dwelling and the one acre of land on which that dwelling is located. If any 
125.23 	farm buildings or structures are located on this homesteaded acre of land, their market value 
125.24 	shall not be included in this separate determination.
125.25 	(l) Class 2d airport landing area consists of a landing area or public access area of a 
125.26 	privately owned public use airport. It has a classification rate of one percent of market value. 
125.27 	To qualify for classification under this paragraph, a privately owned public use airport must 
125.28 	be licensed as a public airport under section 360.018. For purposes of this paragraph, "landing 
125.29 	area" means that part of a privately owned public use airport properly cleared, regularly 
125.30 	maintained, and made available to the public for use by aircraft and includes runways, 
125.31 	taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing 
125.32 	area also includes land underlying both the primary surface and the approach surfaces that 
125.33 	comply with all of the following:
126.1 	(i) the land is properly cleared and regularly maintained for the primary purposes of the 
126.2 	landing, taking off, and taxiing of aircraft; but that portion of the land that contains facilities 
126.3 	for servicing, repair, or maintenance of aircraft is not included as a landing area;
126.4 	(ii) the land is part of the airport property; and
126.5 	(iii) the land is not used for commercial or residential purposes.
126.6 	The land contained in a landing area under this paragraph must be described and certified 
126.7 	by the commissioner of transportation. The certification is effective until it is modified, or 
126.8 	until the airport or landing area no longer meets the requirements of this paragraph. For 
126.9 	purposes of this paragraph, "public access area" means property used as an aircraft parking 
126.10 	ramp, apron, or storage hangar, or an arrival and departure building in connection with the 
126.11 	airport.
126.12 	(m) Class 2e consists of land with a commercial aggregate deposit that is not actively 
126.13 	being mined and is not otherwise classified as class 2a or 2b, provided that the land is not 
126.14 	located in a county that has elected to opt-out of the aggregate preservation program as 
126.15 	provided in section 273.1115, subdivision 6. It has a classification rate of one percent of 
126.16 	market value. To qualify for classification under this paragraph, the property must be at 
126.17 	least ten contiguous acres in size and the owner of the property must record with the county 
126.18 	recorder of the county in which the property is located an affidavit containing:
126.19 	(1) a legal description of the property;
126.20 	(2) a disclosure that the property contains a commercial aggregate deposit that is not 
126.21 	actively being mined but is present on the entire parcel enrolled;
126.22 	(3) documentation that the conditional use under the county or local zoning ordinance 
126.23 	of this property is for mining; and
126.24 	(4) documentation that a permit has been issued by the local unit of government or the 
126.25 	mining activity is allowed under local ordinance. The disclosure must include a statement 
126.26 	from a registered professional geologist, engineer, or soil scientist delineating the deposit 
126.27 	and certifying that it is a commercial aggregate deposit.
126.28 	For purposes of this section and section 273.1115, "commercial aggregate deposit" 
126.29 	means a deposit that will yield crushed stone or sand and gravel that is suitable for use as 
126.30 	a construction aggregate; and "actively mined" means the removal of top soil and overburden 
126.31 	in preparation for excavation or excavation of a commercial deposit.
126.32 	(n) When any portion of the property under this subdivision or subdivision 22 begins to 
126.33 	be actively mined, the owner must file a supplemental affidavit within 60 days from the 
127.1 	day any aggregate is removed stating the number of acres of the property that is actively 
127.2 	being mined. The acres actively being mined must be (1) valued and classified under 
127.3 	subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate 
127.4 	resource preservation property tax program under section 273.1115, if the land was enrolled 
127.5 	in that program. Copies of the original affidavit and all supplemental affidavits must be 
127.6 	filed with the county assessor, the local zoning administrator, and the Department of Natural 
127.7 	Resources, Division of Land and Minerals. A supplemental affidavit must be filed each 
127.8 	time a subsequent portion of the property is actively mined, provided that the minimum 
127.9 	acreage change is five acres, even if the actual mining activity constitutes less than five 
127.10 	acres.
127.11 	(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are not 
127.12 	rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in 
127.13 	section 14.386 concerning exempt rules do not apply.

127.14 	EFFECTIVE DATE. This section is effective for assessment year 2019 and thereafter.

127.15 	Sec. 16. Minnesota Statutes 2018, section 273.13, subdivision 34, is amended to read:
127.16 		Subd. 34.Homestead of disabled veteran or family caregiver. (a) All or a portion of 
127.17 	the market value of property owned by a veteran and serving as the veteran's homestead 
127.18 	under this section is excluded in determining the property's taxable market value if the 
127.19 	veteran has a service-connected disability of 70 percent or more as certified by the United 
127.20 	States Department of Veterans Affairs. To qualify for exclusion under this subdivision, the 
127.21 	veteran must have been honorably discharged from the United States armed forces, as 
127.22 	indicated by United States Government Form DD214 or other official military discharge 
127.23 	papers.
127.24 	(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded, 
127.25 	except as provided in clause (2); and
127.26 	(2) for a total (100 percent) and permanent disability, $300,000 of market value is 
127.27 	excluded.
127.28 	(c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), clause 
127.29 	(2), predeceases the veteran's spouse, and if upon the death of the veteran the spouse holds 
127.30 	the legal or beneficial title to the homestead and permanently resides there, the exclusion 
127.31 	shall carry over to the benefit of the veteran's spouse for the current taxes payable year and 
127.32 	for eight additional taxes payable years or until such time as the spouse remarries, or sells, 
127.33 	transfers, or otherwise disposes of the property, whichever comes first. Qualification under 
128.1 	this paragraph requires an application under paragraph (h), and a spouse must notify the 
128.2 	assessor if there is a change in the spouse's marital status, ownership of the property, or use 
128.3 	of the property as a permanent residence.
128.4 	(d) If the spouse of a member of any branch or unit of the United States armed forces 
128.5 	who dies due to a service-connected cause while serving honorably in active service, as 
128.6 	indicated on United States Government Form DD1300 or DD2064, holds the legal or 
128.7 	beneficial title to a homestead and permanently resides there, the spouse is entitled to the 
128.8 	benefit described in paragraph (b), clause (2), for eight taxes payable years, or until such 
128.9 	time as the spouse remarries or sells, transfers, or otherwise disposes of the property, 
128.10 	whichever comes first.
128.11 	(e) If a veteran meets the disability criteria of paragraph (a) but does not own property 
128.12 	classified as homestead in the state of Minnesota, then the homestead of the veteran's primary 
128.13 	family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify 
128.14 	for under paragraph (b).
128.15 	(f) In the case of an agricultural homestead, only the portion of the property consisting 
128.16 	of the house and garage and immediately surrounding one acre of land qualifies for the 
128.17 	valuation exclusion under this subdivision.
128.18 	(g) A property qualifying for a valuation exclusion under this subdivision is not eligible 
128.19 	for the market value exclusion under subdivision 35, or classification under subdivision 22, 
128.20 	paragraph (b).
128.21 	(h) To qualify for a valuation exclusion under this subdivision a property owner must 
128.22 	apply to the assessor by July 1December 15 of the first assessment year for which the 
128.23 	exclusion is sought. For an application received after July 1 December 15, the exclusion 
128.24 	shall become effective for the following assessment year. Except as provided in paragraph 
128.25 	(c), the owner of a property that has been accepted for a valuation exclusion must notify 
128.26 	the assessor if there is a change in ownership of the property or in the use of the property 
128.27 	as a homestead.
128.28 	(i) A first-time application by a qualifying spouse for the market value exclusion under 
128.29 	paragraph (d) must be made any time within two years of the death of the service member.
128.30 	(j) For purposes of this subdivision:
128.31 	(1) "active service" has the meaning given in section 190.05;
128.32 	(2) "own" means that the person's name is present as an owner on the property deed;
129.1 	(3) "primary family caregiver" means a person who is approved by the secretary of the 
129.2 	United States Department of Veterans Affairs for assistance as the primary provider of 
129.3 	personal care services for an eligible veteran under the Program of Comprehensive Assistance 
129.4 	for Family Caregivers, codified as United States Code, title 38, section 1720G; and
129.5 	(4) "veteran" has the meaning given the term in section 197.447.
129.6 	(k) If a veteran dying after December 31, 2011, did not apply for or receive the exclusion 
129.7 	under paragraph (b), clause (2), before dying, the veteran's spouse is entitled to the benefit 
129.8 	under paragraph (b), clause (2), for eight taxes payable years or until the spouse remarries 
129.9 	or sells, transfers, or otherwise disposes of the property if:
129.10 	(1) the spouse files a first-time application within two years of the death of the service 
129.11 	member or by June 1, 2019, whichever is later;
129.12 	(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the 
129.13 	homestead and permanently resides there;
129.14 	(3) the veteran met the honorable discharge requirements of paragraph (a); and
129.15 	(4) the United States Department of Veterans Affairs certifies that:
129.16 	(i) the veteran met the total (100 percent) and permanent disability requirement under 
129.17 	paragraph (b), clause (2); or
129.18 	(ii) the spouse has been awarded dependency and indemnity compensation.
129.19 	(l) The purpose of this provision of law providing a level of homestead property tax 
129.20 	relief for gravely disabled veterans, their primary family caregivers, and their surviving 
129.21 	spouses is to help ease the burdens of war for those among our state's citizens who bear 
129.22 	those burdens most heavily.
129.23 	(m) By July 1, the county veterans service officer must certify the disability rating and 
129.24 	permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.

129.25 	EFFECTIVE DATE. This section is effective beginning with assessment year 2019, 
129.26 	for taxes payable in 2020 and thereafter.

129.27 	Sec. 17. Minnesota Statutes 2018, section 273.1384, subdivision 2, is amended to read:
129.28 		Subd. 2.Agricultural homestead market value credit. Property classified as agricultural 
129.29 	homestead under section 273.13, subdivision 23, paragraph (a), is eligible for an agricultural 
129.30 	credit. The credit is computed using the property's agricultural credit market value, defined 
129.31 	for this purpose as the property's market value excluding the market value of the house, 
130.1 	garage, and immediately surrounding one acre of land. The credit is equal to 0.3 percent of 
130.2 	the first $115,000 of the property's agricultural credit market value plus 0.1 percent of the 
130.3 	property's agricultural credit market value in excess of $115,000, subject to a maximum 
130.4 	credit of $490 for a full agricultural homestead. In the case of property that is classified as 
130.5 	part homestead and part nonhomestead solely because not all the owners occupy or farm 
130.6 	the property, not all the owners have qualifying relatives occupying or farming the property, 
130.7 	or solely because not all the spouses of owners occupy the property, the credit is computed 
130.8 	on the amount of agricultural credit market value corresponding to the percentage of 
130.9 	homestead. The percentage of homestead is equal to 100 divided by the number of owners 
130.10 	of the property, or, in the case of a trust, the number of grantors of the trust that owns the 
130.11 	property, and the maximum credit equals $490 multiplied by the percentage of homestead.

130.12 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2020 
130.13 	and thereafter.

130.14 	Sec. 18. Minnesota Statutes 2018, section 273.371, subdivision 1, is amended to read:
130.15 		Subdivision 1.Report required. Every electric light, power, gas, water, express, stage, 
130.16 	transportation, and pipeline company doing business in Minnesota shall annually file with 
130.17 	the commissioner on or before March 31 a report under oath setting forth the information 
130.18 	prescribed by the commissioner to enable the commissioner to make valuations, 
130.19 	recommended valuations, and equalization required under sections 273.33, 273.35, 273.36, 
130.20 	273.37, and 273.3711. The commissioner shall prescribe the content, format, and manner 
130.21 	of the report pursuant to section 270C.30, except that for cooperative associations defined 
130.22 	in section 273.40, the information provided in the report must be aggregated to the unique 
130.23 	taxing jurisdiction level and exclude information related to property subject to the in-lieu 
130.24 	tax under section 273.41, and that a "law administered by the commissioner" includes the 
130.25 	property tax laws. If all the required information is not available on March 31, the company 
130.26 	shall file the information that is available on or before March 31, and the balance of the 
130.27 	information as soon as it becomes available. If a report is made by electronic means, the 
130.28 	taxpayer's signature is defined pursuant to section 270C.304, except that a "law administered 
130.29 	by the commissioner" includes the property tax laws. For purposes of this subdivision, 
130.30 	"unique taxing jurisdiction" means the geographic area subject to the same set of local tax 
130.31 	rates.

130.32 	EFFECTIVE DATE. This section is effective beginning with assessment year 2020 
130.33 	and thereafter.

131.1 	Sec. 19. Minnesota Statutes 2018, section 273.3711, is amended to read:
131.2 	273.3711 RECOMMENDED AND ORDERED VALUES.
131.3 	For purposes of sections 273.33, 273.35, 273.36, 273.37, 273.371, and 273.372, all 
131.4 	preliminary values not required to be listed and assessed by the commissioner of revenue 
131.5 	are recommended values. If the commissioner provides preliminary recommended values, 
131.6 	the values must be certified to the auditor of each county in which the property is located 
131.7 	on or before August 1 July 15. If the commissioner determines that the certified recommended 
131.8 	value is in error the commissioner may issue a corrected certification on or before October 
131.9 	1. The commissioner may correct errors that are merely clerical in nature until December 
131.10 	31.

131.11 	EFFECTIVE DATE. This section is effective beginning with assessment year 2019 
131.12 	and thereafter.

131.13 	Sec. 20. Minnesota Statutes 2018, section 275.025, subdivision 1, is amended to read:
131.14 		Subdivision 1.Levy amount. The state general levy is levied against 
131.15 	commercial-industrial property and seasonal residential recreational property, as defined 
131.16 	in this section. The state general levy for commercial-industrial property is $784,590,000
131.17 	$737,090,000 for taxes payable in 20182020 and thereafter. The state general levy for 
131.18 	seasonal-recreational property is $44,190,000$41,690,000 for taxes payable in 20182020 
131.19 	and thereafter. The tax under this section is not treated as a local tax rate under section 
131.20 	469.177 and is not the levy of a governmental unit under chapters 276A and 473F.
131.21 	The commissioner shall increase or decrease the preliminary or final rate for a year as 
131.22 	necessary to account for errors and tax base changes that affected a preliminary or final rate 
131.23 	for either of the two preceding years. Adjustments are allowed to the extent that the necessary 
131.24 	information is available to the commissioner at the time the rates for a year must be certified, 
131.25 	and for the following reasons:
131.26 	(1) an erroneous report of taxable value by a local official;
131.27 	(2) an erroneous calculation by the commissioner; and
131.28 	(3) an increase or decrease in taxable value for commercial-industrial or seasonal 
131.29 	residential recreational property reported on the abstracts of tax lists submitted under section 
131.30 	275.29 that was not reported on the abstracts of assessment submitted under section 270C.89 
131.31 	for the same year.
132.1 	The commissioner may, but need not, make adjustments if the total difference in the tax 
132.2 	levied for the year would be less than $100,000.

132.3 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2020.

132.4 	Sec. 21. Minnesota Statutes 2018, section 275.025, is amended by adding a subdivision 
132.5 	to read:
132.6 		Subd. 6.Natural gas pipeline. (a) The county must abate the state general levy on 
132.7 	personal property that is part of an intrastate natural gas transportation or distribution pipeline 
132.8 	system if:
132.9 	(1) construction of the pipeline system commenced after January 1, 2018; and
132.10 	(2) the pipeline system provides service to an area:
132.11 	(i) outside the seven-county metropolitan area, as defined in section 473.121, subdivision 
132.12 	4; and
132.13 	(ii) in which more than half of the households or businesses lacked access to natural gas 
132.14 	distribution systems as of January 1, 2018.
132.15 	(b) In the first year that a taxpayer seeks an abatement under this subdivision, the taxpayer 
132.16 	must file an application with the commissioner of revenue by March 1 of the assessment 
132.17 	year on a form prescribed by the commissioner.
132.18 	(c) The commissioner of revenue must notify any affected county in the first year that 
132.19 	a pipeline system becomes eligible for an abatement under this subdivision.
132.20 	(d) The abatement under this subdivision applies for a period not to exceed 12 taxable 
132.21 	years, provided that once a property no longer qualifies, it may not subsequently qualify 
132.22 	for an abatement under this subdivision.

132.23 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2021.

132.24 	Sec. 22. Minnesota Statutes 2018, section 276.131, is amended to read:
132.25 	276.131 DISTRIBUTION OF PENALTIES, INTEREST, AND COSTS.
132.26 		Subdivision 1.Distribution. Except as provided in subdivision 2, the penalties, interest, 
132.27 	and costs collected on special assessments and real and personal property taxes must be 
132.28 	distributed as follows:
132.29 	(1) all penalties and interest collected on special assessments against real or personal 
132.30 	property must be distributed to the taxing jurisdiction that levied the assessment;
133.1 	(2) 50 percent of all penalties collected on real and personal property taxes must be 
133.2 	distributed to the school districts within the county, and the remaining 50 percent must be 
133.3 	distributed to the county;
133.4 	(3) in the case of interest on taxes that have been delinquent for a period of one year or 
133.5 	less, (a) 50 percent of the interest must be distributed to the school districts within the county 
133.6 	and (b) the remaining 50 percent shall be distributed to the county;
133.7 	(4) in the case of interest on taxes that have been delinquent for a period of more than 
133.8 	one year, (a) 50 percent of the interest must be distributed to the school districts within the 
133.9 	county and (b) the remaining 50 percent must be distributed as follows: (i) the city or town 
133.10 	where the property is located shall receive a share of the amount of interest equal to the 
133.11 	proportion that the city's or town's local tax rate for the year that the interest was collected, 
133.12 	is to the sum of the city's or town's local tax rate and the county's local tax rate for the year 
133.13 	that the interest was collected and (ii) the balance must be distributed to the county; and
133.14 	(5) all costs collected by the county on special assessments and on delinquent real and 
133.15 	personal property taxes must be distributed to the county in which the property is located.
133.16 		Subd. 2.Distribution of certain production taxes. The penalties, interest, and costs 
133.17 	collected on taxes imposed under sections 272.029 and 272.0295 must be distributed to the 
133.18 	same local taxing jurisdictions and in the same percentages as provided for the revenues of 
133.19 	the original taxes imposed under sections 272.029 and 272.0295.
133.20 		Subd. 3.Distribution to school district. The distribution of all penalties and interest 
133.21 	to the school district must be in accordance with the provisions of section 127A.34.

133.22 	EFFECTIVE DATE. This section is effective for penalties, interest, and costs collected 
133.23 	on taxes payable in 2020 and thereafter.

133.24 	Sec. 23. Minnesota Statutes 2018, section 282.01, subdivision 6, is amended to read:
133.25 		Subd. 6.Duties of commissioner after sale. (a) When any sale has been made by the 
133.26 	county auditor under sections 282.01 to 282.13, the auditor shall immediately certify to the 
133.27 	commissioner of revenue such information relating to such sale, on such forms as the 
133.28 	commissioner of revenue may prescribe as will enable the commissioner of revenue to 
133.29 	prepare an appropriate deed if the sale is for cash, or keep necessary records if the sale is 
133.30 	on terms; and not later than October 31 of each year the county auditor shall submit to the 
133.31 	commissioner of revenue a statement of all instances wherein any payment of principal, 
133.32 	interest, or current taxes on lands held under certificate, due or to be paid during the preceding 
133.33 	calendar years, are still outstanding at the time such certificate is made. When such statement 
134.1 	shows that a purchaser or the purchaser's assignee is in default, the commissioner of revenue 
134.2 	may instruct the county board of the county in which the land is located to cancel said 
134.3 	certificate of sale in the manner provided by subdivision 5, provided that upon 
134.4 	recommendation of the county board, and where the circumstances are such that the 
134.5 	commissioner of revenue after investigation is satisfied that the purchaser has made every 
134.6 	effort reasonable to make payment of both the annual installment and said taxes, and that 
134.7 	there has been no willful neglect on the part of the purchaser in meeting these obligations, 
134.8 	then the commissioner of revenue may extend the time for the payment for such period as 
134.9 	the commissioner may deem warranted, not to exceed one year. On payment in full of the 
134.10 	purchase price, appropriate conveyance in fee, in such form as may be prescribed by the 
134.11 	attorney general, shall be issued by the commissioner of revenue, which conveyance must 
134.12 	be recorded by the county and shall have the force and effect of a patent from the state 
134.13 	subject to easements and restrictions of record at the date of the tax judgment sale, including, 
134.14 	but without limitation, permits for telephone and electric power lines either by underground 
134.15 	cable or conduit or otherwise, sewer and water lines, highways, railroads, and pipe lines for 
134.16 	gas, liquids, or solids in suspension.
134.17 	(b) The commissioner of revenue shall issue an appropriate conveyance in fee when 
134.18 	approval from the county auditor is given based upon written confirmation from a licensed 
134.19 	closing agent, title insurer, or title insurance agent as specified in section 82.641. For purposes 
134.20 	of this paragraph, "written confirmation" means a written commitment or approval that the 
134.21 	funding for the conveyance is held in an escrow account available for disbursement upon 
134.22 	delivery of a conveyance. The county recorder or registrar of titles must not record or file 
134.23 	a conveyance issued under this paragraph unless the conveyance contains a certification 
134.24 	signed by the county auditor where the land is located stating that the recorder or registrar 
134.25 	of titles can accept the conveyance for recording or filing. The conveyance issued by the 
134.26 	commissioner of revenue shall not be effective as a conveyance until it is recorded. The 
134.27 	conveyance shall be issued to the county auditor where the land is located. Upon receipt of 
134.28 	the conveyance, the county auditor shall hold the conveyance until the conveyance is 
134.29 	requested from a licensed closing agent, title insurer, or title insurance agent to settle and 
134.30 	close on the conveyance. If a request for the conveyance is not made within 30 days of the 
134.31 	date the conveyance is issued by the commissioner of revenue, the county auditor shall 
134.32 	return the conveyance to the commissioner. If the conveyance is delivered to the licensed 
134.33 	closing agent, title insurer, or title insurance agent and the closing does not occur within 
134.34 	ten days of the request, the licensed closing agent, title insurer, or title insurance agent shall 
134.35 	immediately return the conveyance to the county auditor and, upon receipt, the county 
134.36 	auditor shall return the conveyance to the commissioner of revenue. The commissioner of 
135.1 	revenue shall cancel and destroy all conveyances returned by the county auditor pursuant 
135.2 	to this subdivision. The licensed closing agent, title insurer, or title insurance agent must 
135.3 	promptly record the conveyance after the closing and must deliver an attested or certified 
135.4 	copy to the county auditor and to the grantee or grantees named on the conveyance.

135.5 	EFFECTIVE DATE. This section is effective for conveyances issued by the 
135.6 	commissioner of revenue after December 31, 2019.

135.7 	Sec. 24. Minnesota Statutes 2018, section 287.21, subdivision 1, is amended to read:
135.8 		Subdivision 1.Determination of tax. (a) A tax is imposed on each deed or instrument 
135.9 	by which any real property in this state is granted, assigned, transferred, or otherwise 
135.10 	conveyed. The tax applies against the net consideration. For purposes of the tax, the 
135.11 	conversion of a corporation to a limited liability company, a limited liability company to a 
135.12 	corporation, a partnership to a limited partnership, a limited partnership to another limited 
135.13 	partnership or other entity, or a similar conversion of one entity to another does not grant, 
135.14 	assign, transfer, or convey real property.
135.15 	(b) The tax is determined in the following manner: (1) when transfers are made by 
135.16 	instruments pursuant to (i) consolidations or mergers, or (ii) designated transfers, the tax is 
135.17 	$1.65; (2) when there is no consideration or when the consideration, exclusive of the value 
135.18 	of any lien or encumbrance remaining thereon at the time of sale, is $500 $3,000 or less, 
135.19 	the tax is $1.65; or (3) when the consideration, exclusive of the value of any lien or 
135.20 	encumbrance remaining at the time of sale, exceeds $500 $3,000, the tax is .0033 of the net 
135.21 	consideration.
135.22 	(c) If, within six months from the date of a designated transfer, an ownership interest in 
135.23 	the grantee entity is transferred by an initial owner to any person or entity with the result 
135.24 	that the designated transfer would not have been a designated transfer if made to the grantee 
135.25 	entity with its subsequent ownership, then a tax is imposed at .0033 of the net consideration 
135.26 	for the designated transfer. If the subsequent transfer of ownership interests was reasonably 
135.27 	expected at the time of the designated transfer, the applicable penalty under section 287.31, 
135.28 	subdivision 1, must be paid. The deed tax imposed under this paragraph is due within 30 
135.29 	days of the subsequent transfer that caused the tax to be imposed under this paragraph. 
135.30 	Involuntary transfers of ownership shall not be considered transfers of ownership under this 
135.31 	paragraph. The commissioner may adopt rules defining the types of transfers to be considered 
135.32 	involuntary.
135.33 	(d) The tax is due at the time a taxable deed or instrument is presented for recording, 
135.34 	except as provided in paragraph (c). The commissioner may require the tax to be documented 
136.1 	in a manner prescribed by the commissioner, and may require that the documentation be 
136.2 	attached to and recorded as part of the deed or instrument. The county recorder or registrar 
136.3 	of titles shall accept the attachment for recording as part of the deed or instrument and may 
136.4 	not require, as a condition of recording a deed or instrument, evidence that a transfer is a 
136.5 	designated transfer in addition to that required by the commissioner. Such an attachment 
136.6 	shall not, however, provide actual or constructive notice of the information contained therein 
136.7 	for purposes of determining any interest in the real property. The commissioner shall 
136.8 	prescribe the manner in which the tax due under paragraph (c) is to be paid and may require 
136.9 	grantees of designated transfers to file with the commissioner subsequent statements verifying 
136.10 	that the tax provided under paragraph (c) does not apply.

136.11 	EFFECTIVE DATE. This section is effective for deeds recorded after December 31, 
136.12 	2019.

136.13 	Sec. 25. Minnesota Statutes 2018, section 290A.03, subdivision 13, is amended to read:
136.14 		Subd. 13.Property taxes payable. "Property taxes payable" means the property tax 
136.15 	exclusive of special assessments, penalties, and interest payable on a claimant's homestead 
136.16 	after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2, 
136.17 	and any other state paid property tax credits in any calendar year, and after any refund 
136.18 	claimed and allowable under section 290A.04, subdivision 2h, that is first payable in the 
136.19 	year that the property tax is payable. In the case of a claimant who makes ground lease 
136.20 	payments, "property taxes payable" includes the amount of the payments directly attributable 
136.21 	to the property taxes assessed against the parcel on which the house is located. Regardless 
136.22 	of the limitations in section 280A(c)(5) of the Internal Revenue Code, "property taxes 
136.23 	payable" must be apportioned or reduced for the use of a portion of the claimant's homestead 
136.24 	for a business purpose if the claimant deducts any business depreciation expenses for the 
136.25 	use of a portion of the homestead or deducts expenses under section 280A of the Internal 
136.26 	Revenue Code for a business operated in the claimant's homestead. For homesteads which 
136.27 	are manufactured homes as defined in section 273.125, subdivision 8, and for homesteads 
136.28 	which are including manufactured homes located in a manufactured home community owned 
136.29 	by a cooperative organized under chapter 308A or 308B, and park trailers taxed as 
136.30 	manufactured homes under section 168.012, subdivision 9, "property taxes payable" shall 
136.31 	also include 17 percent of the gross rent paid in the preceding year for the site on which the 
136.32 	homestead is located. When a homestead is owned by two or more persons as joint tenants 
136.33 	or tenants in common, such tenants shall determine between them which tenant may claim 
136.34 	the property taxes payable on the homestead. If they are unable to agree, the matter shall 
137.1 	be referred to the commissioner of revenue whose decision shall be final. Property taxes 
137.2 	are considered payable in the year prescribed by law for payment of the taxes.
137.3 	In the case of a claim relating to "property taxes payable," the claimant must have owned 
137.4 	and occupied the homestead on January 2 of the year in which the tax is payable and (i) the 
137.5 	property must have been classified as homestead property pursuant to section 273.124, on 
137.6 	or before December 15 of the assessment year to which the "property taxes payable" relate; 
137.7 	or (ii) the claimant must provide documentation from the local assessor that application for 
137.8 	homestead classification has been made on or before December 15 of the year in which the 
137.9 	"property taxes payable" were payable and that the assessor has approved the application.

137.10 	EFFECTIVE DATE. This section is effective beginning with claims for tax payable 
137.11 	in 2020.

137.12 	Sec. 26. Minnesota Statutes 2018, section 290B.04, subdivision 1, is amended to read:
137.13 		Subdivision 1.Initial application. (a) A taxpayer meeting the program qualifications 
137.14 	under section 290B.03 may apply to the commissioner of revenue for the deferral of taxes. 
137.15 	Applications are due on or before July November 1 for deferral of any of the following 
137.16 	year's property taxes. A taxpayer may apply in the year in which the taxpayer becomes 65 
137.17 	years old, provided that no deferral of property taxes will be made until the calendar year 
137.18 	after the taxpayer becomes 65 years old. The application, which shall be prescribed by the 
137.19 	commissioner of revenue, shall include the following items and any other information which 
137.20 	the commissioner deems necessary:
137.21 	(1) the name, address, and Social Security number of the owner or owners;
137.22 	(2) a copy of the property tax statement for the current payable year for the homesteaded 
137.23 	property;
137.24 	(3) the initial year of ownership and occupancy as a homestead;
137.25 	(4) the owner's household income for the previous calendar year; and
137.26 	(5) information on any mortgage loans or other amounts secured by mortgages or other 
137.27 	liens against the property, for which purpose the commissioner may require the applicant 
137.28 	to provide a copy of the mortgage note, the mortgage, or a statement of the balance owing 
137.29 	on the mortgage loan provided by the mortgage holder. The commissioner may require the 
137.30 	appropriate documents in connection with obtaining and confirming information on unpaid 
137.31 	amounts secured by other liens.
138.1 	The application must state that program participation is voluntary. The application must 
138.2 	also state that the deferred amount depends directly on the applicant's household income, 
138.3 	and that program participation includes authorization for the annual deferred amount, the 
138.4 	cumulative deferral and interest that appear on each year's notice prepared by the county 
138.5 	under subdivision 6, is public data.
138.6 	The application must state that program participants may claim the property tax refund 
138.7 	based on the full amount of property taxes eligible for the refund, including any deferred 
138.8 	amounts. The application must also state that property tax refunds will be used to offset any 
138.9 	deferral and interest under this program, and that any other amounts subject to revenue 
138.10 	recapture under section 270A.03, subdivision 7, will also be used to offset any deferral and 
138.11 	interest under this program.
138.12 	(b) As part of the initial application process, the commissioner may require the applicant 
138.13 	to obtain at the applicant's own cost and submit:
138.14 	(1) if the property is registered property under chapter 508 or 508A, a copy of the original 
138.15 	certificate of title in the possession of the county registrar of titles (sometimes referred to 
138.16 	as "condition of register"); or
138.17 	(2) if the property is abstract property, a report prepared by a licensed abstracter showing 
138.18 	the last deed and any unsatisfied mortgages, liens, judgments, and state and federal tax lien 
138.19 	notices which were recorded on or after the date of that last deed with respect to the property 
138.20 	or to the applicant.
138.21 	The certificate or report under clauses (1) and (2) need not include references to any 
138.22 	documents filed or recorded more than 40 years prior to the date of the certification or report. 
138.23 	The certification or report must be as of a date not more than 30 days prior to submission 
138.24 	of the application.
138.25 	The commissioner may also require the county recorder or county registrar of the county 
138.26 	where the property is located to provide copies of recorded documents related to the applicant 
138.27 	or the property, for which the recorder or registrar shall not charge a fee. The commissioner 
138.28 	may use any information available to determine or verify eligibility under this section. The 
138.29 	household income from the application is private data on individuals as defined in section 
138.30 	13.02, subdivision 12.

138.31 	EFFECTIVE DATE. This section is effective beginning with applications submitted 
138.32 	in 2019.

139.1 	Sec. 27. Minnesota Statutes 2018, section 473H.08, subdivision 1, is amended to read:
139.2 		Subdivision 1.Till expiration started. Agricultural preserves shall continue until either 
139.3 	the landowner or, the authority, or a state agency or governmental unit initiates expiration 
139.4 	as provided in this section.

139.5 	EFFECTIVE DATE. This section is effective the day following final enactment and 
139.6 	applies to any agricultural preserve where the previously required eight-year termination 
139.7 	period under Minnesota Statutes, section 473H.08, has not yet expired.

139.8 	Sec. 28. Minnesota Statutes 2018, section 473H.08, is amended by adding a subdivision 
139.9 	to read:
139.10 		Subd. 3a.Expiration for park and trail purposes. (a) An agricultural preserve expires 
139.11 	immediately when a state agency or other governmental unit purchases the property or 
139.12 	obtains an easement over the property for the purpose of creating or expanding a public 
139.13 	trail or public park. This subdivision applies only to the portion of the agricultural preserve 
139.14 	acquired for trail or park purposes, and any portion of the property not acquired for trail or 
139.15 	park purposes shall remain an agricultural preserve, even if the total acreage is reduced 
139.16 	below 40 acres.
139.17 	(b) The acquiring state agency or governmental unit shall give notice to the authority as 
139.18 	provided in subdivision 4. The notice must specify the portion of the property being removed 
139.19 	from the agricultural preserve and the date on which that portion expires.

139.20 	EFFECTIVE DATE. This section is effective the day following final enactment and 
139.21 	applies to any agricultural preserve where the previously required eight-year termination 
139.22 	period under Minnesota Statutes, section 473H.08, has not yet expired.

139.23 	Sec. 29. Minnesota Statutes 2018, section 473H.08, subdivision 4, is amended to read:
139.24 		Subd. 4.Notice to others. Upon receipt of the notice provided in subdivision 2 or 3a, 
139.25 	or upon notice served by the authority as provided in subdivision 3, the authority shall 
139.26 	forward the original notice to the county recorder for recording, or to the registrar of titles 
139.27 	if the land is registered, and shall notify the county auditor, county assessor, the Metropolitan 
139.28 	Council, and the county soil and water conservation district of the date of expiration. 
139.29 	Designation as an agricultural preserve and all benefits and limitations accruing through 
139.30 	sections 473H.02 to 473H.17 for the preserve shall cease on the date of expiration. The 
139.31 	restrictive covenant contained in the application shall terminate on the date of expiration.

140.1 	EFFECTIVE DATE. This section is effective the day following final enactment and 
140.2 	applies to any agricultural preserve where the previously required eight-year termination 
140.3 	period under Minnesota Statutes, section 473H.08, has not yet expired.

140.4 	Sec. 30. Minnesota Statutes 2018, section 473H.09, is amended by adding a subdivision 
140.5 	to read:
140.6 		Subd. 3.Approval of authority. Termination of an agricultural preserve earlier than 
140.7 	the date derived through the application in section 473H.08 may be requested by the owner 
140.8 	eight years after commencement of the preserve. An owner seeking termination under this 
140.9 	subdivision must provide notice to the authority exercising planning and zoning authority 
140.10 	for the land on a form provided by the commissioner of agriculture. The notice must describe 
140.11 	the property for which termination is desired and the date of termination. Termination of 
140.12 	the agricultural preserve and covenant pursuant to this subdivision shall become effective 
140.13 	only upon approval by a majority vote of the authority.

140.14 	EFFECTIVE DATE. This section is effective the day following final enactment, and 
140.15 	applies to any agricultural preserve where the previously required eight-year termination 
140.16 	period under Minnesota Statutes, section 473H.08, has not expired.

140.17 	Sec. 31. Laws 2008, chapter 366, article 5, section 33, the effective date, as amended by 
140.18 	Laws 2013, chapter 143, article 4, section 35, is amended to read:

140.19 	EFFECTIVE DATE. This section is effective for taxes levied in 2008, payable in 2009, 
140.20 	and is repealed effective for taxes levied in 2018 2023, payable in 2019 2024, and thereafter.

140.21 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2019.

140.22 	Sec. 32. Laws 2009, chapter 88, article 2, section 46, subdivision 1, as amended by Laws 
140.23 	2013, chapter 143, article 4, section 36, is amended to read:
140.24 		Subdivision 1.Agreement. The city of Cloquet and Perch Lake Township, by resolution 
140.25 	of each of their governing bodies, may establish the Cloquet Area Fire and Ambulance 
140.26 	Special Taxing District for the purpose of providing fire or ambulance services, or both, 
140.27 	throughout the district. In this section, "municipality" means home rule charter and statutory 
140.28 	cities, towns, and Indian tribes. The district may exercise all the powers relating to fire and 
140.29 	ambulance services of the municipalities that receive fire or ambulance services, or both, 
140.30 	from the district. Upon application, any other municipality may join the district with the 
140.31 	agreement of the municipalities that comprise the district at the time of its application to 
140.32 	join.

141.1 	EFFECTIVE DATE. This section is effective upon compliance by the Cloquet Area 
141.2 	Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021, 
141.3 	subdivision 3.

141.4 	Sec. 33. Laws 2009, chapter 88, article 2, section 46, subdivision 2, is amended to read:
141.5 		Subd. 2.Board. The Cloquet Area Fire and Ambulance Special Taxing District Board 
141.6 	is governed by a board made up initially of one or more elected officials of the governing 
141.7 	body of each participating municipality in the proportions set out in the establishing 
141.8 	resolution, subject to change as provided in the district's charter, if any, or in the district's 
141.9 	bylaws. Each municipality's representatives serve at the pleasure of that municipality's 
141.10 	governing body.

141.11 	EFFECTIVE DATE. This section is effective upon compliance by the Cloquet Area 
141.12 	Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021, 
141.13 	subdivision 3.

141.14 	Sec. 34. Laws 2009, chapter 88, article 2, section 46, subdivision 3, as amended by Laws 
141.15 	2013, chapter 143, article 4, section 37, is amended to read:
141.16 		Subd. 3.Tax. The district board may impose a property tax on taxable property as 
141.17 	provided in this subdivision to pay the costs of providing fire or ambulance services, or 
141.18 	both, throughout the district. The board shall annually determine the total amount of the 
141.19 	levy that is attributable to the cost of providing fire services and the cost of providing 
141.20 	ambulance services within the primary service area. For those municipalities that only 
141.21 	receive ambulance services, the costs for the provision of ambulance services shall be levied 
141.22 	against taxable property within those municipalities at a rate necessary not to exceed 0.019 
141.23 	percent of the estimated market value. For those municipalities that receive both fire and 
141.24 	ambulance services, the tax shall be imposed at a rate that does not exceed 0.2835 percent 
141.25 	of estimated market value.
141.26 	When a member municipality opts to receive fire service from the district or an additional 
141.27 	municipality becomes a member of the district, the cost of providing fire services to that 
141.28 	community shall be determined by the board and added to the maximum levy amount.
141.29 	Each county auditor of a county that contains a municipality subject to the tax under 
141.30 	this section must collect the tax and pay it to the Fire and Ambulance Special Taxing District. 
141.31 	The district may also impose other fees or charges as allowed by law for the provision of 
141.32 	fire and ambulance services.

142.1 	EFFECTIVE DATE. This section is effective upon compliance by the Cloquet Area 
142.2 	Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021, 
142.3 	subdivision 3.

142.4 	Sec. 35. Laws 2009, chapter 88, article 2, section 46, subdivision 4, is amended to read:
142.5 		Subd. 4.Public indebtedness. The district may incur debt in the manner provided for 
142.6 	in Minnesota Statutes, chapter 475, and the district is a municipality by Minnesota Statutes, 
142.7 	chapter 475, when necessary to accomplish its duties., as defined in Minnesota Statutes, 
142.8 	sections 475.51, subdivision 2, and 475.521, subdivision 1, paragraph (c), and may issue 
142.9 	certificates of indebtedness or capital notes as provided for a city under Minnesota Statutes, 
142.10 	section 412.301, when necessary to accomplish its duties. Any tax levied to pay debt of the 
142.11 	district must be levied in the amounts required and in accordance with Minnesota Statutes, 
142.12 	section 475.61. The debt service for debt, the proceeds of which financed capital costs for 
142.13 	ambulance service, must be levied against taxable property within those municipalities in 
142.14 	the primary service area. The debt service for debt, the proceeds of which financed capital 
142.15 	costs for fire service, must be levied against taxable property within those municipalities 
142.16 	receiving fire services.

142.17 	EFFECTIVE DATE. This section is effective upon compliance by the Cloquet Area 
142.18 	Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021, 
142.19 	subdivision 3.

142.20 	Sec. 36. Laws 2009, chapter 88, article 2, section 46, subdivision 5, is amended to read:
142.21 		Subd. 5.Withdrawal. Notice of intent to withdraw from participation in the district 
142.22 	may be given only in the month of January, with a minimum of twelve months notice of 
142.23 	intent to withdraw. Withdrawal becomes effective for taxes levied under subdivision 3 in 
142.24 	the year when the notice is given. A property tax levied by the district on taxable property 
142.25 	located in a withdrawing municipality to make debt service payments for obligations issued 
142.26 	by the district under subdivision 4 remains in effect until the obligations outstanding on the 
142.27 	date of withdrawal are satisfied, including any property tax levied in connection with a 
142.28 	refunding of the obligations. The district and its members may develop and agree upon 
142.29 	other continuing obligations after withdrawal of a municipality.

142.30 	EFFECTIVE DATE. This section is effective upon compliance by the Cloquet Area 
142.31 	Fire and Ambulance Special Taxing District Board with Minnesota Statutes, section 645.021, 
142.32 	subdivision 3.

143.1 	Sec. 37. Laws 2017, First Special Session chapter 1, article 10, section 4, the effective 
143.2 	date, is amended to read:

143.3 	EFFECTIVE DATE; APPLICATION. This section is effective for applications and 
143.4 	certifications made in 2018 and thereafter, except the repeal of the exclusion of land under 
143.5 	item (iii) is effective retroactively for payments due under Minnesota Statutes, section 
143.6 	290C.08, beginning for payments due to be made in 2014. In order to qualify for retroactive 
143.7 	payments, the following requirements must be met: (1) the owner of land exceeding 60,000 
143.8 	acres that is subject to a single conservation easement funded under Minnesota Statutes, 
143.9 	section 97A.056 or a comparable permanent easement conveyed to a governmental or 
143.10 	nonprofit entity, must submit an application to the commissioner of revenue, in a form and 
143.11 	manner and at a time acceptable to the commissioner, establishing that the affected property 
143.12 	and its use met the requirement of Minnesota Statutes, chapter 290C, as amended by this 
143.13 	section; (2) the owner and each county in which the land is located must certify to the 
143.14 	commissioner that no petitions challenging the market value of the property are pending 
143.15 	under Minnesota Statutes, chapter 278; and (3) the requirements of clauses (1) and (2) must 
143.16 	be satisfied by October 1, 2017. No interest accrues on payment under this section for 
143.17 	periods before November 1, 2017.

143.18 	EFFECTIVE DATE. This section is effective retroactively for certifications made in 
143.19 	2018 and thereafter.

143.20 	Sec. 38. SPECIAL REFUND PROVISION.
 143.21 	A veteran who received a disability rating of 70 percent or more in 2016 or 2017 but 
143.22 	did not receive the disabled veterans homestead exclusion under Minnesota Statutes, section 
143.23 	273.13, subdivision 34, for assessment year 2016 or 2017 may apply for a refund of taxes 
143.24 	paid in 2017 or 2018 if the veteran would have qualified for the benefit in Minnesota Statutes, 
143.25 	section 273.13, subdivision 34, paragraph (b), in one or both of those years. To qualify for 
143.26 	a refund, a property owner must apply to the assessor by December 15, 2019, and must have 
143.27 	paid all tax due in 2017 and 2018. After verifying that the applicant qualified for an exclusion 
143.28 	for taxes payable in either or both of those years, the county assessor must notify the county 
143.29 	auditor, and the auditor must recalculate the taxes on the property for taxes payable in 2017 
143.30 	and 2018 based on the exclusion the applicant was qualified for. The county treasurer must 
143.31 	then issue a refund of tax paid in 2017 and 2018 equal to the difference between the taxes 
143.32 	as initially calculated for each taxes payable year and the taxes based on the value remaining 
143.33 	after the exclusion.

144.1 	EFFECTIVE DATE. This section is effective for refund applications received in 2019, 
144.2 	for refunds of tax paid in 2017 and 2018.

144.3 	ARTICLE 5
144.4 	AIDS AND CREDITS

144.5 	Section 1. Minnesota Statutes 2018, section 126C.17, subdivision 6, is amended to read:
144.6 		Subd. 6.Referendum equalization levy. (a) A district's referendum equalization levy 
144.7 	equals the sum of the first tier referendum equalization levy, and the second tier referendum 
144.8 	equalization levy, and the third tier referendum equalization levy.
144.9 	(b) A district's first tier referendum equalization levy equals the district's first tier 
144.10 	referendum equalization revenue times the lesser of one or the ratio of the district's 
144.11 	referendum market value per resident pupil unit to $880,000 $567,000.
144.12 	(c) A district's second tier referendum equalization levy equals the district's second tier 
144.13 	referendum equalization revenue times the lesser of one or the ratio of the district's 
144.14 	referendum market value per resident pupil unit to $510,000 $290,000.
144.15 	(d) A district's third tier referendum equalization levy equals the district's third tier 
144.16 	referendum equalization revenue times the lesser of one or the ratio of the district's 
144.17 	referendum market value per resident pupil unit to $290,000.

144.18 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2021 and later.

144.19 	Sec. 2. Minnesota Statutes 2018, section 273.1387, subdivision 2, is amended to read:
144.20 		Subd. 2.Credit amount. For each qualifying property, the school building bond 
144.21 	agricultural credit is equal to 40 the credit percent of multiplied by the property's eligible 
144.22 	net tax capacity multiplied by the school debt tax rate determined under section 275.08, 
144.23 	subdivision 1b. For property taxes payable prior to 2020, the credit percent is equal to 40 
144.24 	percent. For property taxes payable in 2020, the credit percent is equal to 50 percent. For 
144.25 	property taxes payable in 2021, the credit percent is equal to 55 percent. For property taxes 
144.26 	payable in 2022, the credit percent is equal to 60 percent. For property taxes payable in 
144.27 	2023 and thereafter, the credit percent is equal to 70 percent.

144.28 	EFFECTIVE DATE. This section is effective beginning with property taxes payable 
144.29 	in 2020.

145.1 	Sec. 3. Minnesota Statutes 2018, section 469.169, is amended by adding a subdivision to 
145.2 	read:
145.3 		Subd. 21.Additional border city allocations. (a) In addition to the tax reductions 
145.4 	authorized in subdivisions 12 to 20, the commissioner shall annually allocate $750,000 for 
145.5 	tax reductions to border city enterprise zones in cities located on the western border of the 
145.6 	state. The commissioner shall allocate this amount among cities on a per capita basis. 
145.7 	Allocations made under this subdivision may be used for tax reductions under sections 
145.8 	469.171, 469.1732, and 469.1734, or for other offsets of taxes imposed on or remitted by 
145.9 	businesses located in the enterprise zone as provided by law, but only if the municipality 
145.10 	determines that the granting of the tax reduction or offset is necessary to retain a business 
145.11 	within or attract a business to the zone.
145.12 	(b) The allocations under this subdivision do not cancel or expire, but remain available 
145.13 	until used by the city.

145.14 	EFFECTIVE DATE. This section is effective July 1, 2020.

145.15 	Sec. 4. Minnesota Statutes 2018, section 469.171, subdivision 4, is amended to read:
145.16 		Subd. 4.Restriction. The tax reductions provided by this section shall not apply to (1) 
145.17 	a facility the primary purpose of which is one of the following: retail food and beverage 
145.18 	services, automobile sales or service, or the provision of recreation or entertainment, or a 
145.19 	private or commercial golf course, country club, massage parlor, tennis club, skating facility 
145.20 	including roller skating, skateboard, and ice skating, racquet sports facility, including any 
145.21 	handball or racquetball court, hot tub facility, suntan facility, or racetrack; (2) property of 
145.22 	a public utility; (3) property used in the operation of a financial institution; (4) property 
145.23 	owned by a fraternal or veterans' organization; or (5) property of a business operating under 
145.24 	a franchise agreement that requires the business to be located in the state; except that tax 
145.25 	reductions may be provided to a retail food or beverage facility or an automobile sales or 
145.26 	service facility, or a business a retail food or beverage facility operating under a franchise 
145.27 	agreement that requires the business to be located in this state except for such a franchised 
145.28 	retail food or beverage facility.

145.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

145.30 	Sec. 5. Minnesota Statutes 2018, section 477A.013, subdivision 9, is amended to read:
145.31 		Subd. 9.City aid distribution. (a) In calendar year 2018 and thereafter, if a city's 
145.32 	certified aid before any aid adjustment under subdivision 13 for the previous year is less 
146.1 	than its current unmet need, the city shall receive an aid distribution equal to the sum of (1) 
146.2 	its certified aid in the previous year before any aid adjustment under subdivision 13, (2) the 
146.3 	city formula aid under subdivision 8, and (3) its aid adjustment under subdivision 13.
146.4 	(b) For aids payable in 2020 only, no city's aid amount before any adjustment under 
146.5 	subdivision 13 may be less than its pay 2019 certified aid amount, less any aid adjustment 
146.6 	under subdivision 13 for that year. For aids payable in 20182020 and thereafter, if a city's 
146.7 	certified aid before any aid adjustment under subdivision 13 for the previous year is equal 
146.8 	to or greater than its current unmet need, the total aid for a city is equal to the greater of (1) 
146.9 	its unmet need plus any aid adjustment under subdivision 13, or (2) the amount it was 
146.10 	certified to receive in the previous year minus the sum of (i) any adjustment under subdivision 
146.11 	13 that was paid in the previous year but has expired, and (ii) the lesser of $10 multiplied 
146.12 	by its population, or five percent of its net levy in the year prior to the aid distribution. No 
146.13 	city may have a total aid amount less than $0.

146.14 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2020 
146.15 	and thereafter.

146.16 	Sec. 6. Minnesota Statutes 2018, section 477A.03, subdivision 2a, is amended to read:
146.17 		Subd. 2a.Cities. For aids payable in 2016 and 2017, the total aid paid under section 
146.18 	477A.013, subdivision 9, is $519,398,012. For aids payable in 2018 and thereafter 2019, 
146.19 	the total aid paid under section 477A.013, subdivision 9, is $534,398,012. For aids payable 
146.20 	in 2020, the total aid paid under section 477A.013, subdivision 9, is $560,398,012. For aids 
146.21 	payable in 2021 and thereafter, the total aid payable under section 477A.013, subdivision 
146.22 	9, is $564,398,012.

146.23 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2020 
146.24 	and thereafter.

146.25 	Sec. 7. Minnesota Statutes 2018, section 477A.03, subdivision 2b, is amended to read:
146.26 		Subd. 2b.Counties. (a) For aids payable in 2018 through 2024 and 2019, the total aid 
146.27 	payable under section 477A.0124, subdivision 3, is $103,795,000, of which $3,000,000 
146.28 	shall be allocated as required under Laws 2014, chapter 150, article 4, section 6. For aids 
146.29 	payable in 2020, the total aid payable under section 477A.0124, subdivision 3, is 
146.30 	$116,795,000, of which $3,000,000 shall be allocated as required under Laws 2014, chapter 
146.31 	150, article 4, section 6. For aids payable in 2021 through 2024, the total aid payable under 
146.32 	section 477A.0124, subdivision 3, is $118,795,000, of which $3,000,000 shall be allocated 
146.33 	as required under Laws 2014, chapter 150, article 4, section 6. For aids payable in 2025 and 
147.1 	thereafter, the total aid payable under section 477A.0124, subdivision 3, is $100,795,000
147.2 	$115,795,000. Each calendar year, $500,000 of this appropriation shall be retained by the 
147.3 	commissioner of revenue to make reimbursements to the commissioner of management and 
147.4 	budget for payments made under section 611.27. The reimbursements shall be to defray the 
147.5 	additional costs associated with court-ordered counsel under section 611.27. Any retained 
147.6 	amounts not used for reimbursement in a year shall be included in the next distribution of 
147.7 	county need aid that is certified to the county auditors for the purpose of property tax 
147.8 	reduction for the next taxes payable year.
147.9 	(b) For aids payable in 2018 and thereafter 2019, the total aid under section 477A.0124, 
147.10 	subdivision 4, is $130,873,444. For aids payable in 2020, the total aid under section 
147.11 	477A.0124, subdivision 4, is $143,873,444. For aids payable in 2021 and thereafter, the 
147.12 	total aid under section 477A.0124, subdivision 4, is $145,873,444. The commissioner of 
147.13 	revenue shall transfer to the commissioner of management and budget $207,000 annually 
147.14 	for the cost of preparation of local impact notes as required by section 3.987, and other local 
147.15 	government activities. The commissioner of revenue shall transfer to the commissioner of 
147.16 	education $7,000 annually for the cost of preparation of local impact notes for school districts 
147.17 	as required by section 3.987. The commissioner of revenue shall deduct the amounts 
147.18 	transferred under this paragraph from the appropriation under this paragraph. The amounts 
147.19 	transferred are appropriated to the commissioner of management and budget and the 
147.20 	commissioner of education respectively.

147.21 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2020 
147.22 	and thereafter.

147.23 	Sec. 8. Laws 2018, chapter 211, article 14, section 26, is amended to read:
147.24 	Sec. 26. CITY OF AUSTIN; ALLOCATION OF FIRE STATE AID FOR 
147.25 	FIREFIGHTERS.
 147.26 	(a) Notwithstanding any law to the contrary, the city of Austin must annually:
147.27 	(1) determine the amount of state aid required under the bylaws of the Austin Parttime 
147.28 	Firefighters Relief Association to fund the volunteer firefighters' service pensions;
147.29 	(2) transmit to the Austin Parttime Firefighters Relief Association any supplemental 
147.30 	state aid received under Minnesota Statutes, section 423A.022;
148.1 	(3) transmit to the Austin Parttime Firefighters Relief Association an amount of fire 
148.2 	state aid under Minnesota Statutes, sections 69.011 to 69.051, equal to the difference between 
148.3 	the amount determined under clause (1) and the amount transmitted under clause (2); and
148.4 	(4) transmit the remaining balance of fire state aid under Minnesota Statutes, sections 
148.5 	69.011 to 69.051, for the payment of the employer contribution requirements for firefighters 
148.6 	covered by the public employees police and fire retirement plan under Minnesota Statutes, 
148.7 	section 353.65, subdivision 3.
148.8 	(b) Notwithstanding Minnesota Statutes, section 69.031, subdivision 5, the city of Austin 
148.9 	has no liability to the relief association related to payments it made or will make to the 
148.10 	public employees police and fire retirement plan from fire state aid for 2013, 2014, 2015, 
148.11 	2016, 2017, and 2018 and subsequent years.
148.12 	(c) This section  expires July 1, 2019 Paragraphs (a) and (b) expire on the effective date 
148.13 	of general legislation permitting the allocation of fire state aid between volunteer firefighter 
148.14 	relief associations and the affiliated municipalities, independent nonprofit firefighting 
148.15 	corporations, or joint powers entities.

148.16 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
148.17 	city of Austin and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
148.18 	subdivisions 2 and 3.

148.19 	Sec. 9. AID PENALTY FORGIVENESS; CITY OF WAUBUN.
 148.20 	Notwithstanding Minnesota Statutes, section 477A.017, the city of Waubun may receive 
148.21 	its second local government aid payment and small city assistance aid payment for aids 
148.22 	payable in 2018 even though it did not file fiscal year 2017 financial reports with the state 
148.23 	auditor as required under that section, provided that the required forms are submitted to the 
148.24 	state auditor by May 31, 2019. The commissioner of revenue shall make the payments to 
148.25 	the city of Waubun by June 30, 2019. Up to $56,822 of the fiscal year 2019 appropriation 
148.26 	for local government aid in Minnesota Statutes, section 477A.03, subdivision 2, is available 
148.27 	for payment under this section. Up to $3,771 of the fiscal year 2019 appropriation for the 
148.28 	small city assistance program in Laws 2017, First Special Session chapter 3, article 1, section 
148.29 	2, subdivision 4, clause (c), is available for payment under this section.

148.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

149.1 	Sec. 10. LOCAL GOVERNMENT GRANTS.
 149.2 	(a) $4,447,400 in fiscal year 2020 only is appropriated from the general fund to the 
149.3 	commissioner of revenue for grants that shall be paid by July 15, 2019, and allocated as 
149.4 	follows:
149.5 	(1) $3,000,000 to Beltrami County to be used by the county for out-of-home placement 
149.6 	costs;
149.7 	(2) $500,000 to Mahnomen County. Of this amount, $250,000 must be used by the 
149.8 	county for the Mahnomen Health Center, and $250,000 must be paid from the county to 
149.9 	the White Earth Band of Ojibwe to reimburse the band for costs of delivering child welfare 
149.10 	services;
149.11 	(3) $500,000 to Otter Tail County to be used by the county for debt service on a building 
149.12 	located in the city of Fergus Falls and formerly leased by the state to provide residential 
149.13 	treatment services;
149.14 	(4) $275,000 to the city of Lilydale to be used by the city for infrastructure upgrades 
149.15 	and associated bond payments related to the Highway 13 construction;
149.16 	(5) $129,000 to the city of Austin to reimburse the city for calendar year 2016 state fire 
149.17 	aid and calendar year 2016 supplemental police and fire retirement aid;
149.18 	(6) $38,400 to the city of Flensburg to compensate the city for lost aid under the local 
149.19 	government aid and small cities assistance programs; and
149.20 	(7) $2,600 to the city of Mazeppa and $2,400 to Wabasha County, to be used by the city 
149.21 	and county for property tax abatements and other costs incurred by public and private entities 
149.22 	as a result of a fire in the city of Mazeppa on March 11, 2018.
149.23 	(b) $600,000 in fiscal year 2020 and $600,000 in fiscal year 2021 are appropriated from 
149.24 	the general fund to the commissioner of revenue for a grant to Wadena County that shall 
149.25 	be paid by August 1, 2019, and August 1, 2020, and used by the county for costs related to 
149.26 	providing human services.
149.27 	(c) $5,400,000 in fiscal year 2022 only is appropriated from the general fund to the 
149.28 	commissioner of revenue for a grant to the city of Virginia that shall be paid by August 1, 
149.29 	2021, and used by the city to repay loans incurred by the city for costs related to utility 
149.30 	relocation for the U.S. Highway 53 project.
149.31 	The appropriations under this section are onetime.

149.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

150.1 	Sec. 11. APPROPRIATION OF LAPSED AMOUNTS; FIRE REMEDIATION 
150.2 	GRANTS.
 150.3 	(a) $643,729 in fiscal year 2020 is appropriated from the general fund to the commissioner 
150.4 	of public safety for grants to remediate the effects of fires in the city of Melrose on September 
150.5 	8, 2016. The grants shall be paid by August 1, 2019. This appropriation represents the 
150.6 	amounts that lapsed by the terms of the appropriation in Laws 2017, First Special Session 
150.7 	chapter 1, article 4, section 31.
150.8 	(b) A grant recipient must use the money appropriated under this section for remediation 
150.9 	costs, including disaster recovery, infrastructure, reimbursement for emergency personnel 
150.10 	costs, reimbursement for equipment costs, and reimbursements for property tax abatements, 
150.11 	incurred by public or private entities as a result of the fires. This is a onetime appropriation 
150.12 	and is available until June 30, 2021.

150.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

150.14 	ARTICLE 6
150.15 	LOCAL TAXES

150.16 	Section 1. Minnesota Statutes 2018, section 297A.99, subdivision 1, is amended to read:
150.17 		Subdivision 1.Authorization; scope. (a) A political subdivision of this state may impose 
150.18 	a general sales tax (1) under section 297A.992, (2) under section 297A.993, (3) if permitted 
150.19 	by special law, or (4) if the political subdivision enacted and imposed the tax before January 
150.20 	1, 1982, and its predecessor provision.
150.21 	(b) This section governs the imposition of a general sales tax by the political subdivision. 
150.22 	The provisions of this section preempt the provisions of any special law:
150.23 	(1) enacted before June 2, 1997, or
150.24 	(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law 
150.25 	provision from this section's rules by reference.
150.26 	(c) This section does not apply to or preempt a sales tax on motor vehicles or. Beginning 
150.27 	July 1, 2019, no political subdivision may impose a special excise tax on motor vehicles
150.28 	unless it is imposed under section 297A.993.
150.29 	(d) A political subdivision may not advertise or expend funds for the promotion of a 
150.30 	referendum to support imposing a local option sales tax. and may only spend funds related 
150.31 	to imposing a local sales tax to:
151.1 	(e) Notwithstanding paragraph (d), a political subdivision may expend funds to:
151.2 	(1) conduct the referendum;
151.3 	(2) disseminate information included in the resolution adopted under subdivision 2, but 
151.4 	only if the disseminated information includes a list of specific projects and the cost of each 
151.5 	individual project;
151.6 	(3) provide notice of, and conduct public forums at which proponents and opponents on 
151.7 	the merits of the referendum are given equal time to express their opinions on the merits of 
151.8 	the referendum;
151.9 	(4) provide facts and data on the impact of the proposed local sales tax on consumer 
151.10 	purchases; and
151.11 	(5) provide facts and data related to the individual programs and projects to be funded 
151.12 	with the local sales tax.

151.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

151.14 	Sec. 2. Minnesota Statutes 2018, section 297A.99, is amended by adding a subdivision to 
151.15 	read:
151.16 		Subd. 1a.Requirements. Local sales taxes are to be used instead of traditional local 
151.17 	revenues only for construction and rehabilitation of capital projects when a clear regional 
151.18 	benefit beyond the taxing jurisdiction can be demonstrated. Use of local sales tax revenues 
151.19 	for local projects decreases the benefits to taxpayers of the deductibility of local property 
151.20 	taxes and the state assistance provided through the property tax refund system and increases 
151.21 	the fiscal inequities between similar communities.

151.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

151.23 	Sec. 3. Minnesota Statutes 2018, section 297A.99, subdivision 2, is amended to read:
151.24 		Subd. 2.Local resolution before application for authority. (a) Before the governing 
151.25 	body of a political subdivision requests legislative approval ofto impose a local sales tax 
151.26 	authorized by a special law for a local sales tax that is administered under this section, it 
151.27 	shall adopt a resolution indicating its approval of the tax. The resolution must include, at a 
151.28 	minimum,the following information on:
151.29 	(1) the proposed tax rate, how the revenues will be used,;
151.30 	(2) a detailed description of no more than five capital projects that will be funded with 
151.31 	revenue from the tax;
152.1 	(3) documentation of the regional significance of each project, including the share of 
152.2 	the economic benefit to or use of each project by persons residing, or businesses located, 
152.3 	outside of the jurisdiction;
152.4 	(4) the amount of local sales tax revenue that would be used for each project and the 
152.5 	estimated time needed to raise that amount of revenue; and
152.6 	(5) the total revenue that will be raised for all projects before the tax expires, and the 
152.7 	estimated length of time that the tax will be in effect. This subdivision applies to local laws 
152.8 	enacted after June 30, 1998 if all proposed projects are funded.
152.9 	(b) The jurisdiction seeking authority to impose a local sales tax by special law must 
152.10 	submit the resolution in paragraph (a) along with underlying documentation indicating how 
152.11 	the benefits under paragraph (a), clause (3), were determined, to the chairs and ranking 
152.12 	minority members of the legislative committees with jurisdiction over taxes no later than 
152.13 	January 31 of the year in which the jurisdiction is seeking a special law authorizing the tax.
152.14 	(c) The special legislation granting local sales tax authority is not required to allow 
152.15 	funding for all projects listed in the resolution with the revenue from the local sales tax, but 
152.16 	must not include any projects not contained in the resolution.

152.17 	EFFECTIVE DATE. This section is effective the day following final enactment and 
152.18 	applies to all local sales taxes not authorized by the legislature before July 1, 2019.

152.19 	Sec. 4. Minnesota Statutes 2018, section 297A.99, subdivision 3, is amended to read:
152.20 		Subd. 3.Legislative authority required before voter approval; requirements for 
152.21 	adoption, use, termination. (a) A political subdivision must receive legislative authority 
152.22 	to impose a local sales tax before submitting the tax for approval by voters of the political 
152.23 	subdivision. Imposition of a local sales tax is subject to approval by voters of the political 
152.24 	subdivision at a general election. The election must be conducted before at a general election 
152.25 	within the two-year period after the governing body of the political subdivision requests 
152.26 	legislative approval of has received authority to impose the tax. If the authorizing legislation 
152.27 	allows the tax to be imposed for more than one project, there must be a separate question 
152.28 	approving the use of the tax revenue for each project. Notwithstanding the authorizing 
152.29 	legislation, a project that is not approved by the voters may not be funded with the local 
152.30 	sales tax revenue and the termination date of the tax set in the authorizing legislation must 
152.31 	be reduced proportionately based on the share of that project's cost to the total costs of all 
152.32 	projects included in the authorizing legislation.
153.1 	(b) The proceeds of the tax must be dedicated exclusively to payment of the cost of a
153.2 	construction and rehabilitation costs and associated bonding costs related to the specific 
153.3 	capital improvement which is designated at least 90 days before the referendum on imposition 
153.4 	of the tax is conducted projects that were approved by the voters under paragraph (a).
153.5 	(c) The tax must terminate after the improvement designated under paragraph (b) has 
153.6 	been completed the revenues raised are sufficient to fund the projects approved by the voters 
153.7 	under paragraph (a).
153.8 	(d) After a sales tax imposed by a political subdivision has expired or been terminated, 
153.9 	the political subdivision is prohibited from imposing a local sales tax for a period of one 
153.10 	year. Notwithstanding subdivision 13, this paragraph applies to all local sales taxes in effect 
153.11 	at the time of or imposed after May 26, 1999.
153.12 	(e) Notwithstanding paragraph (a), if a political subdivision received voter approval to 
153.13 	seek authority for a local sales tax at the November 6, 2018, general election and is granted 
153.14 	authority to impose a local sales tax before January 1, 2021, the tax may be imposed without 
153.15 	an additional referendum provided that it meets the requirements of subdivision 2 and the 
153.16 	list of specific projects contained in the resolution does not conflict with the projects listed 
153.17 	in the approving referendum.
153.18 	(f) If a tax is terminated because sufficient revenues have been raised, any amount of 
153.19 	tax collected under subdivision 9, after sufficient revenues have been raised and before the 
153.20 	quarterly termination required under subdivision 12, paragraph (a), that is greater than the 
153.21 	average quarterly revenues collected over the immediately preceding 12 calendar months 
153.22 	must be retained by the commissioner for deposit in the general fund.

153.23 	EFFECTIVE DATE. (a) The amendments to paragraphs (a) to (d) and adding paragraph 
153.24 	(e) are effective the day following final enactment and apply to all local sales taxes not 
153.25 	authorized by the legislature before July 1, 2019.
153.26 	(b) The amendment adding paragraph (f) is effective the day following final enactment 
153.27 	and applies retroactively to all currently imposed local sales taxes.

153.28 	Sec. 5. Laws 1986, chapter 396, section 5, as amended by Laws 2001, First Special Session 
153.29 	chapter 5, article 12, section 87, and Laws 2012, chapter 299, article 3, section 3, is amended 
153.30 	to read:
153.31 	Sec. 5. LIQUOR, LODGING, AND RESTAURANT TAXES.
 153.32 	The city may, by resolution, levy in addition to taxes authorized by other law:
154.1 	(1) a sales tax of not more than three percent on the gross receipts on retail on-sales of 
154.2 	intoxicating liquor and fermented malt beverages when sold at licensed on-sale liquor 
154.3 	establishments located within the downtown taxing area, provided that this tax may not be 
154.4 	imposed if sales of intoxicating liquor and fermented malt beverages are exempt from 
154.5 	taxation under chapter 297A;
154.6 	(2) a sales tax of not more than three percent on the gross receipts from the furnishing 
154.7 	for consideration of lodging for a period of less than 30 days at a hotel, motel, rooming 
154.8 	house, tourist court, or trailer camp located within the city by a hotel or motel which has 
154.9 	more than 50 rooms available for lodging; the tax imposed under this clause shall be at a 
154.10 	rate that, when added to the sum of the rate of the sales tax imposed under Minnesota 
154.11 	Statutes, chapter 297A, the rate of the sales tax imposed under section 4, and the rate of any
154.12 	of all other city taxes on lodging in the city of Minneapolis, equals 13 6.5 percent; and
154.13 	(3) a sales tax of not more than three percent on the gross receipts on all sales of food 
154.14 	primarily for consumption on or off the premises by restaurants and places of refreshment 
154.15 	as defined by resolution of the city that occur within the downtown taxing area.
154.16 	The taxes authorized by this section must not be terminated before January 1, 2047. The 
154.17 	taxes shall be imposed and may be adjusted periodically by the city council such that the 
154.18 	rates imposed produce revenue sufficient, together with the tax imposed under section 4, 
154.19 	to finance the purposes described in Minnesota Statutes, section 297A.994, and section 4, 
154.20 	subdivisions 3 and 4. These taxes shall be applied, first, as provided in Minnesota Statutes, 
154.21 	section 297A.994, subdivision 3, clauses (1) to (3), and then, solely to pay, secure, maintain, 
154.22 	and fund the payment of any principal of, premium on, and interest on any bonds or any 
154.23 	other purposes in section 4, subdivision 3 or 4. The commissioner of revenue may enter 
154.24 	into appropriate agreements with the city to provide for the collection of these taxes by the 
154.25 	state on behalf of the city. These taxes shall be subject to the same interest, penalties, and 
154.26 	enforcement provisions as the taxes imposed under Minnesota Statutes, chapter 297A.

154.27 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
154.28 	September 30, 2019.

154.29 	Sec. 6. Laws 1986, chapter 462, section 31, as amended by Laws 1991, chapter 291, article 
154.30 	8, section 24, and Laws 2011, chapter 112, article 4, section 6, is amended to read:
154.31 	Sec. 31. AUTHORITY FOR TAXATION.
 154.32 	Notwithstanding Minnesota Statutes, section 477A.016, or any other law, and 
154.33 	supplemental to the tax imposed by Laws 1982, chapter 523, article 25, section 1, the city 
155.1 	of St. Paul may impose, by ordinance, a tax, at a rate not greater than three four percent, on 
155.2 	the gross receipts from the furnishing for consideration of lodging and related services at a 
155.3 	hotel, rooming house, tourist court, motel, or resort, other than the renting or leasing of 
155.4 	space for a continuous period of 30 days or more. The tax does not apply to the furnishing 
155.5 	of lodging and related services by a business having less than 50 lodging rooms. The tax 
155.6 	shall be collected by and its proceeds paid to the city. Ninety-five percent of the revenues 
155.7 	generated by this tax shall be used to fund a convention bureau to market and promote the 
155.8 	city as a tourist or convention center.

155.9 	EFFECTIVE DATE. This section is effective the first day of the calendar quarter 
155.10 	beginning at least 30 days after the governing body of the city of St. Paul and its chief 
155.11 	clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

155.12 	Sec. 7. Laws 1994, chapter 587, article 9, section 11, is amended to read:
155.13 	Sec. 11. TWO HARBORS LODGING TAX.
 155.14 	Notwithstanding Minnesota Statutes, section 477A.016, or other law, in addition to a 
155.15 	tax authorized in Minnesota Statutes, section 469.190, the city of Two Harbors may impose, 
155.16 	by ordinance, a tax of up to one percent on the gross receipts subject to the lodging tax 
155.17 	under Minnesota Statutes, section 469.190. The proceeds of the tax shall be dedicated and 
155.18 	used to provide preservation, display, and interpretation of the tug boat Edna G. The total 
155.19 	tax imposed by the city under this section, by Lake County under section 22, and under 
155.20 	Minnesota Statutes, section 469.190, shall not exceed three five percent.

155.21 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
155.22 	city of Two Harbors and its chief clerical officer comply with Minnesota Statutes, section 
155.23 	645.021, subdivisions 2 and 3.

155.24 	Sec. 8. Laws 1998, chapter 389, article 8, section 45, subdivision 1, is amended to read:
155.25 		Subdivision 1.Sales and use taxes. (a) Notwithstanding Minnesota Statutes, section 
155.26 	477A.016, or any other provision of law, ordinance, or city charter, if approved by the voters 
155.27 	of the city at the next general election held after the date of final enactment of this act, the 
155.28 	city of Two Harbors may impose by ordinance, a sales and use tax at a rate of up to one-half 
155.29 	of one percent for the purposes specified in subdivision 3, paragraph (a).
155.30 	(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, 
155.31 	sections 297A.99 and 477A.016, or any other law, ordinance, or city charter, and as approved 
155.32 	by the voters at the November 6, 2018, general election, the city of Two Harbors may, by 
156.1 	ordinance, impose an additional sales and use tax at a rate of one-half of one percent for 
156.2 	the purposes specified in subdivision 3, paragraph (b). The tax may not be imposed until 
156.3 	the city complies with the provisions of section 34.
156.4 	(c) The provisions of Minnesota Statutes, section 297A.48 297A.99, govern the 
156.5 	imposition, administration, collection, and enforcement of the tax authorized under this 
156.6 	subdivision.

156.7 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
156.8 	city of Two Harbors and its chief clerical officer comply with Minnesota Statutes, section 
156.9 	645.021, subdivisions 2 and 3.

156.10 	Sec. 9. Laws 1998, chapter 389, article 8, section 45, subdivision 3, as amended by Laws 
156.11 	2008, chapter 366, article 7, section 11, is amended to read:
156.12 		Subd. 3. Use of revenues. (a) Revenues received from the taxes authorized under 
156.13 	subdivision 1, paragraph (a), must be used for sanitary sewer separation, wastewater 
156.14 	treatment, water system improvements, and harbor refuge development projects.
156.15 	(b) Revenues from the tax authorized under subdivision 1, paragraph (b), must be used 
156.16 	by the city of Two Harbors to pay the costs of collecting and administering the tax and to 
156.17 	finance the capital and administrative costs of water and sewer infrastructure projects 
156.18 	including gravity-fed sewer mains, water mains, drain tile, service lines, street patching, 
156.19 	acquiring property, related engineering, and construction expenses.

156.20 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
156.21 	city of Two Harbors and its chief clerical officer comply with Minnesota Statutes, section 
156.22 	645.021, subdivisions 2 and 3.

156.23 	Sec. 10. Laws 1998, chapter 389, article 8, section 45, subdivision 4, is amended to read:
156.24 		Subd. 4.Bonding authority. (a) The city may issue bonds under Minnesota Statutes, 
156.25 	chapter 475, to finance the capital expenditure and improvement projects under subdivision 
156.26 	1, paragraph (a). An election to approve the bonds under Minnesota Statutes, section 475.58, 
156.27 	may be held in combination with the election to authorize imposition of the tax under 
156.28 	subdivision 1, paragraph (a). Whether to permit imposition of the tax and issuance of bonds 
156.29 	may be posed to the voters as a single question. The question must state that the sales tax 
156.30 	revenues are pledged to pay the bonds, but that the bonds are general obligations and will 
156.31 	be guaranteed by the city's property taxes.
157.1 	(b) The city may issue bonds under Minnesota Statutes, chapter 475, to pay capital and 
157.2 	administrative expenses for the projects described in subdivision 3, paragraph (b), in an 
157.3 	amount that does not exceed $30,000,000. An election to approve the bonds under Minnesota 
157.4 	Statutes, section 475.58, is not required.
157.5 	(c) The issuance of bonds under this subdivision is not subject to Minnesota Statutes, 
157.6 	section 275.60.
157.7 	(c) (d) The bonds are not included in computing any debt limitation applicable to the 
157.8 	city, and the levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and 
157.9 	interest on the bonds is not subject to any levy limitation.
157.10 	The aggregate principal amount of bonds, plus the aggregate of the taxes used directly to 
157.11 	pay eligible capital expenditures and improvements under subdivision 3, paragraph (a), may 
157.12 	not exceed $20,000,000, plus an amount equal to the costs related to issuance of the bonds.
157.13 	(d) (e) The taxes may be pledged to and used for the payment of the bonds and any bonds 
157.14 	issued to refund them, only if the bonds and any refunding bonds are general obligations 
157.15 	of the city.

157.16 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
157.17 	city of Two Harbors and its chief clerical officer comply with Minnesota Statutes, section 
157.18 	645.021, subdivisions 2 and 3.

157.19 	Sec. 11. Laws 1998, chapter 389, article 8, section 45, subdivision 5, is amended to read:
157.20 		Subd. 5.Termination of taxes. (a) The authority granted under subdivision 1, paragraph 
157.21 	(a), to the city of Two Harbors to impose sales and use taxes expires when the costs of the 
157.22 	projects described in subdivision 3, paragraph (a), have been paid.
157.23 	(b) The authority granted under subdivision 1, paragraph (b), expires at the earlier of: 
157.24 	(1) 25 years after the tax is first imposed; or (2) when the city council determines that the 
157.25 	amount of revenues received from the taxes first equals or exceeds $30,000,000, plus the 
157.26 	additional amount needed to pay the costs related to issuance of bonds under subdivision 
157.27 	4, paragraph (b), including interest on the bonds. Any funds remaining after completion of 
157.28 	the project and retirement or redemption of the bonds may be placed in the general fund of 
157.29 	the city. The taxes imposed under subdivision 1, paragraph (b), may expire at an earlier 
157.30 	time if the city so determines by ordinance.

157.31 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
157.32 	city of Two Harbors and its chief clerical officer comply with Minnesota Statutes, section 
157.33 	645.021, subdivisions 2 and 3.

158.1 	Sec. 12. Laws 2011, First Special Session chapter 7, article 4, section 10, subdivision 3, 
158.2 	is amended to read:
158.3 		Subd. 3.Use of revenues. Revenues received from taxes authorized by subdivisions 1 
158.4 	and 2 must be used by the city to pay the cost of collecting the taxes and to pay for the 
158.5 	following projects:
158.6 	(1) $4,500,000 for construction and completion of park improvement projects, including 
158.7 	St. Louis River riverfront improvements; Veteran's Park construction and improvements; 
158.8 	improvements to the Hilltop Park soccer complex and Braun Park baseball complex; capital 
158.9 	equipment and building and grounds improvements at the Pine Valley Park/Pine Valley 
158.10 	Hockey Arena/Cloquet Area Recreation Center; and development of pedestrian trails within 
158.11 	the city;
158.12 	(2) $5,800,00 for extension of utilities and the construction of all improvements associated 
158.13 	with the development of property adjacent to Highway 33 and Interstate Highway 35, 
158.14 	including payment of all debt service on bonds issued for these; and
158.15 	(3) $6,200,000 for engineering and construction of infrastructure improvements, 
158.16 	including, but not limited to, storm sewer, sanitary sewer, and water in areas identified as 
158.17 	part of the city's comprehensive land use plan.
158.18 	Authorized expenses include, but are not limited to, acquiring property and paying 
158.19 	construction expenses related to these improvements, and paying debt service on bonds or 
158.20 	other obligations issued to finance acquisition and construction of these improvements.
158.21 	Notwithstanding the revenue allocations in clauses (1) and (3), if the amount spent for the 
158.22 	improvements under clause (2) are less than the $5,800,000 allowed under that clause, the 
158.23 	total amount spent for the purposes listed in clauses (1) and (3) may be increased by the 
158.24 	difference between $5,800,000 and the amount actually spent under clause (2). However, 
158.25 	the total expenditures for projects under this subdivision may not exceed $16,500,000, 
158.26 	excluding any costs related to issuance of bonds under subdivision 4.

158.27 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
158.28 	city of Cloquet and its chief clerical officer comply with the provisions of section 645.021, 
158.29 	subdivisions 2 and 3.

158.30 	Sec. 13. CITY OF AVON; TAXES AUTHORIZED.
 158.31 		Subdivision 1.Sales and use tax; authorization. Notwithstanding Minnesota Statutes, 
158.32 	section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city 
158.33 	charter, the city of Avon, pursuant to approval by the voters at the general election on 
159.1 	November 6, 2018, may impose by ordinance a sales and use tax of up to one-half of one 
159.2 	percent for the purposes specified in subdivision 2. Except as otherwise provided in this 
159.3 	section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
159.4 	administration, collection, and enforcement of the tax authorized under this subdivision. 
159.5 	The tax may not be imposed until the city complies with the provisions of section 34.
159.6 		Subd. 2.Use of revenues. Revenues received from taxes authorized by subdivision 1 
159.7 	must be used by the city to:
159.8 	(1) pay the costs of collecting and administering the tax;
159.9 	(2) pay the capital and administrative costs of transportation improvement projects as 
159.10 	adopted in the city of Avon's street priority improvement plan; and
159.11 	(3) pay debt service on bonds issued under subdivision 3 or other obligations issued to 
159.12 	finance the improvements listed in this subdivision in the city.
159.13 		Subd. 3.Bonding authority. (a) The city may issue bonds under Minnesota Statutes, 
159.14 	chapter 475, to pay the costs of the projects authorized in subdivision 2. The aggregate 
159.15 	principal amount of bonds issued under this subdivision may not exceed $1,500,000 plus 
159.16 	an amount to be applied to the payment of the costs of issuing the bonds. The bonds may 
159.17 	be paid from or secured by any funds available to the city, including the tax authorized 
159.18 	under subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota 
159.19 	Statutes, sections 275.60 and 275.61.
159.20 	(b) The bonds are not included in computing any debt limitation applicable to the city, 
159.21 	and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest 
159.22 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
159.23 	under Minnesota Statutes, section 475.58, is not required.
159.24 		Subd. 4.Termination of taxes. (a) The tax imposed under subdivision 1 expires at the 
159.25 	earlier of: (1) December 31, 2045; or (2) when the city council determines that $1,500,000 
159.26 	has been received from the tax to pay for the cost of the projects authorized under subdivision 
159.27 	2, plus an amount sufficient to pay the costs related to issuance of the bonds authorized 
159.28 	under subdivision 3, including interest on the bonds.
159.29 	(b) Any funds remaining after payment of all such costs and retirement or redemption 
159.30 	of the bonds shall be placed in the general fund of the city. The tax imposed under subdivision 
159.31 	1 may expire at an earlier time if the city so determines by ordinance.

160.1 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
160.2 	city and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
160.3 	subdivisions 2 and 3.

160.4 	Sec. 14. CITY OF BLUE EARTH; LOCAL TAX AUTHORIZED.
 160.5 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
160.6 	section 477A.016, or any other law, ordinance, or city charter, and as approved by the voters 
160.7 	at the general election of November 6, 2018, the city of Blue Earth may impose by ordinance 
160.8 	a sales and use tax of one-half of one percent for the purposes specified in subdivision 2. 
160.9 	Except as otherwise provided in this section, the provisions of Minnesota Statutes, section 
160.10 	297A.99, govern the imposition, administration, collection, and enforcement of the tax 
160.11 	authorized under this subdivision. The tax may not be imposed until the city complies with 
160.12 	the provisions of section 34.
160.13 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
160.14 	under subdivision 1 must be used by the city of Blue Earth to pay the costs of collecting 
160.15 	and administering the tax and to finance the capital and administrative costs of constructing 
160.16 	and funding sewer plant improvements, street reconstruction projects, and recreational 
160.17 	amenities. The total that may be raised from the tax to pay for these projects is limited to 
160.18 	$5,000,000, plus the costs related to the issuance and paying debt service on bonds for these 
160.19 	projects.
160.20 		Subd. 3.Bonding authority. (a) The city of Blue Earth may issue bonds under Minnesota 
160.21 	Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in 
160.22 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
160.23 	not exceed $5,000,000, plus an amount to be applied to the payment of the costs of issuing 
160.24 	the bonds. The bonds may be paid from or secured by any funds available to the city of 
160.25 	Blue Earth, including the tax authorized under subdivision 1. The issuance of bonds under 
160.26 	this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
160.27 	(b) The bonds are not included in computing any debt limitation applicable to the city 
160.28 	of Blue Earth, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
160.29 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
160.30 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
160.31 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
160.32 	earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines 
160.33 	that $5,000,000, plus an amount sufficient to pay the costs related to issuing the bonds 
160.34 	authorized under subdivision 3, including interest on the bonds, has been received from the 
161.1 	tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining 
161.2 	after payment of all such costs and retirement or redemption of the bonds due to timing of 
161.3 	the termination under Minnesota Statutes, section 297A.99, shall be placed in the general 
161.4 	fund of the city. The tax imposed under subdivision 1 may expire at an earlier time if the 
161.5 	city so determines by ordinance.

161.6 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
161.7 	city of Blue Earth and its chief clerical officer comply with Minnesota Statutes, section 
161.8 	645.021, subdivisions 2 and 3.

161.9 	Sec. 15. CITY OF CAMBRIDGE; TAX AUTHORIZED.
 161.10 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
161.11 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
161.12 	and as approved by the voters at the November 6, 2018, general election, the city of 
161.13 	Cambridge may impose, by ordinance, a sales and use tax of one-half of one percent for 
161.14 	the purposes specified in subdivision 2. Except as otherwise provided in this section, the 
161.15 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
161.16 	collection, and enforcement of the tax authorized under this subdivision. The tax may not 
161.17 	be imposed until the city complies with the provisions of section 34 as it relates to funding 
161.18 	of the street improvements in subdivision 2, clause (2).
161.19 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
161.20 	under subdivision 1 must be used by the city of Cambridge to pay the costs of collecting 
161.21 	and administering the tax and paying for the following infrastructure projects in the city, 
161.22 	including securing and paying debt service on bonds issued to finance all or part of the 
161.23 	following projects:
161.24 	(1) $8,000,000 plus associated bonding costs for construction of a new facility to house 
161.25 	the Cambridge Public Library and the East Central Regional Library Headquarters; and
161.26 	(2) $14,000,000 plus associated bonding costs for street improvements outlined in the 
161.27 	Street Capital Improvement Program approved by the city council as of January 22, 2019, 
161.28 	and outdoor park improvements described in the park master plan as of January 22, 2019.
161.29 		Subd. 3.Bonding authority. (a) The city of Cambridge may issue bonds under Minnesota 
161.30 	Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in 
161.31 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
161.32 	not exceed: (1) $8,000,000 for the project listed in subdivision 2, clause (1), plus an amount 
161.33 	applied to the payment of costs of issuing the bonds; and (2) $14,000,000 for the projects 
162.1 	listed in subdivision 2, clause (2), plus an amount applied to the payment of costs of issuing 
162.2 	the bonds. The bonds may be paid from or secured by any funds available to the city of 
162.3 	Cambridge, including the tax authorized under subdivision 1. The issuance of bonds under 
162.4 	this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
162.5 	(b) The bonds are not included in computing any debt limitation applicable to the city. 
162.6 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
162.7 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
162.8 	under Minnesota Statutes, section 475.58, is not required.
162.9 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
162.10 	earlier of: (1) December 31, 2043; or (2) when the city council determines that the city has 
162.11 	received from this tax $22,000,000 to fund the projects listed in subdivision 2 plus an amount 
162.12 	sufficient to pay costs, including interest costs, related to the issuance of the bonds authorized 
162.13 	in subdivision 3. Any funds remaining after payment of the allowed costs due to timing of 
162.14 	the termination under Minnesota Statutes, section 297A.99, shall be placed in the city's 
162.15 	general fund. The tax imposed under subdivision 1 may expire at an earlier time if the city 
162.16 	so determines by ordinance.

162.17 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
162.18 	city of Cambridge and its chief clerical officer comply with Minnesota Statutes, section 
162.19 	645.021, subdivisions 2 and 3.

162.20 	Sec. 16. CITY OF DETROIT LAKES; LOCAL SALES AND USE TAX 
162.21 	AUTHORIZED.
 162.22 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
162.23 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
162.24 	and as approved by the voters at the November 6, 2018, general election, the city of Detroit 
162.25 	Lakes may impose, by ordinance, a sales and use tax of one-half of one percent for the 
162.26 	purposes specified in subdivision 2. Except as otherwise provided in this section, the 
162.27 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
162.28 	collection, and enforcement of the tax authorized under this subdivision.
162.29 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
162.30 	under subdivision 1 must be used by the city of Detroit Lakes to pay the costs of collecting 
162.31 	and administering the tax, and construction of a new police department facility in the city, 
162.32 	including securing and paying debt service on bonds issued to finance all or part of this 
162.33 	project. The total amount of the police department facility to be funded with the tax imposed 
162.34 	under subdivision 1 shall not exceed $6,700,000, excluding associated debt service costs.
163.1 		Subd. 3.Bonding authority. (a) The city of Detroit Lakes may issue bonds under 
163.2 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project 
163.3 	authorized in subdivision 2. The aggregate principal amount of bonds issued under this 
163.4 	subdivision may not exceed $6,700,000, plus an amount applied to the payment of costs of 
163.5 	issuing the bonds. The bonds may be paid from or secured by any funds available to the 
163.6 	city of Detroit Lakes, including the tax authorized under subdivision 1. The issuance of 
163.7 	bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 
163.8 	275.61.
163.9 	(b) The bonds are not subject to any provisions of the home rule charter of the city of 
163.10 	Detroit Lakes and are not included in computing any debt limitation applicable to the city. 
163.11 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
163.12 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
163.13 	under Minnesota Statutes, section 475.58, is not required.
163.14 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
163.15 	earlier of: (1) ten years after the tax is first imposed; or (2) when the city council determines 
163.16 	that the city has received $6,700,000 from this tax to fund the projects listed in subdivision 
163.17 	2 plus an amount sufficient to pay costs, including interest costs, related to the issuance of 
163.18 	the bonds authorized in subdivision 3. Any funds remaining after payment of the allowed 
163.19 	costs due to timing of the termination under Minnesota Statutes, section 297A.99, shall be 
163.20 	placed in the city's general fund. The tax imposed under subdivision 1 may expire at an 
163.21 	earlier time if the city so determines by ordinance.

163.22 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
163.23 	city of Detroit Lakes and its chief clerical officer comply with Minnesota Statutes, section 
163.24 	645.021, subdivisions 2 and 3.

163.25 	Sec. 17. CITY OF ELK RIVER; TAX AUTHORIZED.
 163.26 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
163.27 	section 297A.99, subdivision 1, or 477A.016, or any other law or ordinance, and as approved 
163.28 	by the voters at the November 6, 2018, general election, the city of Elk River may impose, 
163.29 	by ordinance, a sales and use tax of one-half of one percent for the purposes specified in 
163.30 	subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota 
163.31 	Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement 
163.32 	of the tax authorized under this subdivision.
163.33 		Subd. 2.Use of sales and use tax revenues. (a) The revenues derived from the tax 
163.34 	authorized under subdivision 1 must be used by the city of Elk River to:
164.1 	(1) pay the costs of collecting and administering the tax;
164.2 	(2) pay the capital and administrative costs of various recreational facility and park 
164.3 	improvements including any or all of the following: a multipurpose recreational facility 
164.4 	such as an ice arena, a community meeting and activity space, and a synthetic turf field 
164.5 	house; senior center facility improvements; Lion John Weicht Park improvements, Lions 
164.6 	Park Center space improvements, and a community picnic pavilion addition; youth athletic 
164.7 	complex improvements; Orono Park improvements; dredging Lake Orono; and citywide 
164.8 	trail connection improvements; and
164.9 	(3) secure and pay debt service on bonds issued to finance all or part of the projects 
164.10 	listed in clause (2).
164.11 	(b) The total that may be raised from the tax to pay for these projects is limited to 
164.12 	$35,000,000, plus the costs related to the issuance and paying debt service on bonds for 
164.13 	these projects.
164.14 		Subd. 3.Bonding authority. (a) The city of Elk River may issue bonds under Minnesota 
164.15 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
164.16 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
164.17 	not exceed $35,000,000, plus an amount applied to the payment of costs of issuing the 
164.18 	bonds. The bonds may be paid from or secured by any funds available to the city of Elk 
164.19 	River, including the tax authorized under subdivision 1. The issuance of bonds under this 
164.20 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
164.21 	(b) The bonds are not included in computing any debt limitation applicable to the city. 
164.22 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
164.23 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
164.24 	under Minnesota Statutes, section 475.58, is not required.
164.25 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
164.26 	earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines 
164.27 	that the city has received $35,000,000 from this tax to fund the projects listed in subdivision 
164.28 	2 plus an amount sufficient to pay costs, including interest costs, related to the issuance of 
164.29 	the bonds authorized in subdivision 3. Any funds remaining after payment of the allowed 
164.30 	costs due to timing of the termination under section 297A.99 shall be placed in the city's 
164.31 	general fund. The tax imposed under subdivision 1 may expire at an earlier time if the city 
164.32 	so determines by ordinance.

165.1 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
165.2 	city of Elk River and its chief clerical officer comply with Minnesota Statutes, section 
165.3 	645.021, subdivisions 2 and 3.

165.4 	Sec. 18. CITY OF EXCELSIOR; LOCAL SALES AND USE TAX AUTHORIZED.
 165.5 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
165.6 	section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city 
165.7 	charter, the city of Excelsior may impose, by ordinance, a sales and use tax of up to one-half 
165.8 	of one percent for the purposes specified in subdivision 2, as approved by the voters at the 
165.9 	November 4, 2014, general election. Except as otherwise provided in this section, the 
165.10 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
165.11 	collection, and enforcement of the tax authorized under this subdivision.
165.12 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
165.13 	under subdivision 1 must be used by the city of Excelsior to pay the costs of collecting and 
165.14 	administering the tax and to finance the capital and administrative costs of improvements 
165.15 	to the commons as indicated in the Commons Master Plan as adopted by the city council 
165.16 	on November 20, 2017. Authorized expenses include, but are not limited to, improvements 
165.17 	for walkability and accessibility, enhancement of beach area and facilities, prevention and 
165.18 	management of shoreline erosion, redesign of the port and band shell, improvement of 
165.19 	playground equipment, and securing and paying debt service on bonds issued under 
165.20 	subdivision 3 or other obligations issued to the improvements listed in this subdivision in 
165.21 	the city of Excelsior.
165.22 		Subd. 3.Bonding authority. (a) If the imposition of the tax is approved by the voters 
165.23 	under subdivision 1, the city of Excelsior may issue bonds under Minnesota Statutes, chapter 
165.24 	475, to finance all or a portion of the costs of the projects authorized in subdivision 2, 
165.25 	without a second vote. The aggregate principal amount of bonds issued under this subdivision 
165.26 	may not exceed $7,000,000, plus an amount to be applied to the payment of the costs of 
165.27 	issuing the bonds. The bonds may be paid from or secured by any funds available to the 
165.28 	city of Excelsior, including the tax authorized under subdivision 1. The issuance of bonds 
165.29 	under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
165.30 	(b) The bonds are not included in computing any debt limitation applicable to the city 
165.31 	of Excelsior, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
165.32 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
165.33 	the bonds under Minnesota Statutes, section 475.58, is not required.
166.1 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
166.2 	earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines 
166.3 	that $7,000,000 has been received from the tax to pay for the cost of the projects authorized 
166.4 	under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the 
166.5 	bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining 
166.6 	after payment of all such costs and retirement or redemption of the bonds shall be placed 
166.7 	in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier 
166.8 	time if the city so determines by ordinance.

166.9 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
166.10 	city of Excelsior and its chief clerical officer comply with Minnesota Statutes, section 
166.11 	645.021, subdivisions 2 and 3.

166.12 	Sec. 19. CITY OF GLENWOOD; TAX AUTHORIZED.
 166.13 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
166.14 	section 477A.016, or any other law, ordinance, or city charter, and as approved by the voters 
166.15 	at the November 6, 2018, general election, the city of Glenwood may impose, by ordinance, 
166.16 	a sales and use tax of up to one-half of one percent for the purposes specified in subdivision 
166.17 	2. Except as otherwise provided in this section, the provisions of Minnesota Statutes, section 
166.18 	297A.99, govern the imposition, administration, collection, and enforcement of the tax 
166.19 	authorized under this subdivision. The tax may not be imposed until the city complies with 
166.20 	the provisions of section 34.
166.21 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
166.22 	under subdivision 1 must be used by the city of Glenwood to pay the costs of collecting and 
166.23 	administering the tax and to finance, including securing and paying debt service on, all or 
166.24 	part of the following projects:
166.25 	(1) the capital costs of the Phases II and III improvements to 2nd Street SE as set forth 
166.26 	in the city's capital improvement plan;
166.27 	(2) the development and expansion of, and improvements to, city parks, trails, and 
166.28 	recreational facilities; and
166.29 	(3) improvements to Glenwood City Hall and police station.
166.30 		Subd. 3.Bonding authority. (a) The city of Glenwood may issue bonds under Minnesota 
166.31 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
166.32 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
166.33 	not exceed $2,800,000, plus an amount applied to the payment of costs of issuing the bonds. 
167.1 	The bonds may be paid from or secured by any funds available to the city of Glenwood, 
167.2 	including the tax authorized under subdivision 1. The issuance of bonds under this 
167.3 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
167.4 	(b) The bonds are not subject to any provisions of the home rule charter of the city of 
167.5 	Glenwood and are not included in computing any debt limitation applicable to the city. Any 
167.6 	levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest on 
167.7 	the bonds is not subject to any levy limitation. A separate election to approve the bonds 
167.8 	under Minnesota Statutes, section 475.58, is not required.
167.9 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
167.10 	earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines 
167.11 	that the city has received $2,800,000 from this tax to fund the projects listed in subdivision 
167.12 	2 plus an amount sufficient to pay costs, including interest costs, related to the issuance of 
167.13 	the bonds authorized in subdivision 3. Any funds remaining after payment of the allowed 
167.14 	costs due to timing of the termination under Minnesota Statutes, section 297A.99, shall be 
167.15 	placed in the city's general fund. The tax imposed under subdivision 1 may expire at an 
167.16 	earlier time if the city so determines by ordinance.

167.17 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
167.18 	city of Glenwood and its chief clerical officer comply with Minnesota Statutes, section 
167.19 	645.021, subdivisions 2 and 3.

167.20 	Sec. 20. CITY OF INTERNATIONAL FALLS; TAX AUTHORIZED.
 167.21 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
167.22 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
167.23 	and as approved by the voters at the November 6, 2018, general election, the city of 
167.24 	International Falls may impose, by ordinance, a sales and use tax of up to one percent for 
167.25 	the purposes specified in subdivision 2. Except as otherwise provided in this section, the 
167.26 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
167.27 	collection, and enforcement of the tax authorized under this subdivision. The tax may not 
167.28 	be imposed until the city complies with the provisions of section 34.
167.29 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
167.30 	under subdivision 1 must be used by the city of International Falls to pay the costs of 
167.31 	collecting and administering the tax, and paying for transportation and other public 
167.32 	infrastructure projects in the city, including securing and paying debt service on bonds 
167.33 	issued to finance all or part of these projects. The total amount of transportation and other 
168.1 	public infrastructure projects to be funded with the tax imposed under subdivision 1 shall 
168.2 	not exceed $30,000,000, excluding associated debt service costs.
168.3 		Subd. 3.Bonding authority. (a) The city of International Falls may issue bonds under 
168.4 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project 
168.5 	authorized in subdivision 2. The aggregate principal amount of bonds issued under this 
168.6 	subdivision may not exceed $30,000,000, plus an amount applied to the payment of costs 
168.7 	of issuing the bonds. The bonds may be paid from or secured by any funds available to the 
168.8 	city of International Falls, including the tax authorized under subdivision 1. The issuance 
168.9 	of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 
168.10 	275.61.
168.11 	(b) The bonds are not subject to any provisions of the home rule charter of the city of 
168.12 	International Falls and are not included in computing any debt limitation applicable to the 
168.13 	city. Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and 
168.14 	interest on the bonds is not subject to any levy limitation. A separate election to approve 
168.15 	the bonds under Minnesota Statutes, section 475.58, is not required.
168.16 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
168.17 	earlier of: (1) 30 years after the tax is first imposed; or (2) when the city council determines 
168.18 	that the city has received $30,000,000 from this tax to fund the projects listed in subdivision 
168.19 	2 plus an amount sufficient to pay costs, including interest costs, related to the issuance of 
168.20 	the bonds authorized in subdivision 3. Any funds remaining after payment of the allowed 
168.21 	costs due to timing of the termination under section 297A.99 shall be placed in the general 
168.22 	fund of the city. The tax imposed under subdivision 1 may expire at an earlier time if the 
168.23 	city so determines by ordinance.

168.24 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
168.25 	city of International Falls and its chief clerical officer comply with Minnesota Statutes, 
168.26 	section 645.021, subdivisions 2 and 3.

168.27 	Sec. 21. CITY OF LA CRESCENT; LOCAL LODGING TAX AUTHORIZED.
 168.28 	Notwithstanding Minnesota Statutes, section 477A.016, or other law, in addition to a 
168.29 	tax authorized in Minnesota Statutes, section 469.190, the city of La Crescent may impose 
168.30 	by ordinance a tax of up to two percent on the gross receipts subject to the lodging tax under 
168.31 	Minnesota Statutes, section 469.190. The proceeds of the tax must be used for the same 
168.32 	purposes as required under Minnesota Statutes, section 469.190. The total tax imposed 
168.33 	under this section, and under Minnesota Statutes, section 469.190, must not exceed five 
168.34 	percent.

169.1 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
169.2 	city of La Crescent and its chief clerical officer comply with Minnesota Statutes, section 
169.3 	645.021, subdivisions 2 and 3.

169.4 	Sec. 22. LAKE COUNTY; LOCAL LODGING TAX AUTHORIZED.
 169.5 		Subdivision 1.Lodging tax. (a) Notwithstanding Minnesota Statutes, section 477A.016, 
169.6 	or any other provision of law, ordinance, or city charter, the Board of Commissioners of 
169.7 	Lake County may impose, by ordinance, a tax of up to four percent on the gross receipts 
169.8 	subject to the lodging tax under Minnesota Statutes, section 469.190. This tax is in addition 
169.9 	to any tax imposed under Minnesota Statutes, section 469.190. The total tax imposed by 
169.10 	the county under this section, by the city of Two Harbors under Laws 1994, chapter 587, 
169.11 	article 9, section 11, and under Minnesota Statutes, section 469.190, must not exceed seven 
169.12 	percent.
169.13 	(b) No other city or town located in Lake County that did not impose a local lodging tax 
169.14 	under Minnesota Statutes, section 469.190, prior to May 1, 2019, may impose a tax under 
169.15 	Minnesota Statutes, section 469.190, while a tax is in effect under this section.
169.16 		Subd. 2.Allowed use of revenues. The revenues derived from the taxes imposed in 
169.17 	subdivision 1 must be used to fund a new Lake County Event and Visitors Bureau as 
169.18 	established by or contracted with the Board of Commissioners of Lake County. The Board 
169.19 	of Commissioners must use 75 percent of revenues for marketing the county and 25 percent 
169.20 	of revenues to fund and promote community events and festivals in the county. The Board 
169.21 	of Commissioners of Lake County must annually review the budget of the Lake County 
169.22 	Event and Visitors Bureau. The event and visitors bureau may not receive revenues raised 
169.23 	from the taxes imposed in subdivision 1 until the Board of Commissioners approves the 
169.24 	annual budget.

169.25 	EFFECTIVE DATE. This section is effective the day after the governing body of Lake 
169.26 	County and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
169.27 	subdivisions 2 and 3.

169.28 	Sec. 23. CITY OF NORTH MANKATO; LOCAL FOOD AND BEVERAGE TAX 
169.29 	AUTHORIZED.
 169.30 		Subdivision 1.Food and beverage tax authorized. Notwithstanding Minnesota Statutes, 
169.31 	section 477A.016, or any ordinance, city charter, or other provision of law, the city of North 
169.32 	Mankato may, by ordinance, impose a sales tax of up to one percent on the gross receipts 
169.33 	on all sales of food and beverages by a restaurant or place of refreshment, as defined by 
170.1 	resolution of the city, that are located within the city. For purposes of this section, "food 
170.2 	and beverages" includes retail on-sale of intoxicating liquor and fermented malt beverages.
170.3 		Subd. 2.Use of proceeds from tax. (a) The proceeds of any tax imposed under 
170.4 	subdivision 1 shall be used by the city to pay all or a portion of the expenses of:
170.5 	(1) operation, maintenance, and capital expenses for the Caswell Park Regional Sporting 
170.6 	Complex; and
170.7 	(2) for costs related to regional tourism events.
170.8 	(b) Authorized capital expenses include securing or paying debt service on bonds or 
170.9 	other obligations issued to finance the construction of the Caswell Park Regional Sporting 
170.10 	Complex facilities.
170.11 		Subd. 3.Collection, administration, and enforcement. If the city desires, it may enter 
170.12 	into an agreement with the commissioner of revenue to administer, collect, and enforce the 
170.13 	taxes authorized under subdivisions 1 and 2. If the commissioner agrees to collect the tax, 
170.14 	the provisions of Minnesota Statutes, section 297A.99, related to collection, administration, 
170.15 	and enforcement apply.

170.16 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
170.17 	city of North Mankato and its chief clerical officer comply with Minnesota Statutes, section 
170.18 	645.021, subdivisions 2 and 3.

170.19 	Sec. 24. CITY OF PERHAM; LOCAL SALES AND USE TAX AUTHORIZED.
 170.20 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
170.21 	section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law or ordinance, and 
170.22 	based on the approval by the voters at the November 6, 2018, election, the city of Perham 
170.23 	may impose by ordinance a sales and use tax of up to one-half of one percent for the purposes 
170.24 	specified in subdivision 2. Except as otherwise provided in this section, the provisions of 
170.25 	Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and 
170.26 	enforcement of the tax authorized under this subdivision.
170.27 		Subd. 2.Use of revenues. The revenues derived from the tax authorized under subdivision 
170.28 	1 must be used by the city of Perham to:
170.29 	(1) pay the costs of collecting and administering the tax;
170.30 	(2) finance the capital costs of site preparation, redevelopment, renovation, and 
170.31 	construction of buildings, land, and infrastructure at the site of the Perham Area Community 
170.32 	Center; and
171.1 	(3) pay debt service on bonds issued under subdivision 3 or other obligations issued to 
171.2 	the improvements listed in this subdivision in the city of Perham.
171.3 		Subd. 3.Bonding authority. (a) The city of Perham may issue bonds under Minnesota 
171.4 	Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in 
171.5 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
171.6 	not exceed $5,200,000, plus an amount to be applied to the payment of the costs of issuing 
171.7 	the bonds. The bonds may be paid from or secured by any funds available to the city of 
171.8 	Perham, including the tax authorized under subdivision 1. The issuance of bonds under this 
171.9 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
171.10 	(b) The bonds are not included in computing any debt limitation applicable to the city 
171.11 	of Perham, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
171.12 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
171.13 	the bonds under Minnesota Statutes, section 475.58, is not required.
171.14 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
171.15 	earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines 
171.16 	that $5,200,000 has been received from the tax to pay for the cost of the projects authorized 
171.17 	under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the 
171.18 	bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining 
171.19 	after payment of all such costs and retirement or redemption of the bonds shall be placed 
171.20 	in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier 
171.21 	time if the city so determines by ordinance.

171.22 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
171.23 	city of Perham and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
171.24 	subdivisions 2 and 3.

171.25 	Sec. 25. CITY OF PLYMOUTH; LOCAL LODGING TAX AUTHORIZED.
 171.26 	(a) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of 
171.27 	law, ordinance, or city charter, the city council for the city of Plymouth may impose by 
171.28 	ordinance a tax of up to three percent on the gross receipts subject to the lodging tax under 
171.29 	Minnesota Statutes, section 469.190. This tax is in addition to any tax imposed under 
171.30 	Minnesota Statutes, section 469.190, and the total tax imposed under that section and this 
171.31 	provision must not exceed six percent.
171.32 	(b) Two-thirds of the revenue from the tax imposed under this section must be dedicated 
171.33 	and used for capital improvements to public recreational facilities and marketing and 
172.1 	promotion of the community, and the remaining one-third of the revenue must be used for 
172.2 	the same purposes as a tax imposed under Minnesota Statutes, section 469.190.
172.3 	(c) The tax imposed under this authority terminates at the earlier of: (1) ten years after 
172.4 	the tax is first imposed; or (2) December 31, 2030.

172.5 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
172.6 	city of Plymouth and its chief clerical officer comply with Minnesota Statutes, section 
172.7 	645.021, subdivisions 2 and 3.

172.8 	Sec. 26. CITY OF ROGERS; LOCAL TAXES AUTHORIZED.
 172.9 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
172.10 	sections 297A.99 and 477A.016, or any other law or ordinance, and as approved by the 
172.11 	voters at the general election of November 6, 2018, the city of Rogers may impose, by 
172.12 	ordinance, a sales and use tax of one-quarter of one percent for the purposes specified in 
172.13 	subdivision 3. Except as otherwise provided in this section, the provisions of Minnesota 
172.14 	Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement 
172.15 	of the taxes authorized under this subdivision.
172.16 		Subd. 2.Excise tax authorized. Notwithstanding Minnesota Statutes, section 477A.016, 
172.17 	or any other contrary provision of law, or ordinance, the city of Rogers may impose by 
172.18 	ordinance, for the purposes specified in subdivision 3, an excise tax of up to $20 per motor 
172.19 	vehicle, as defined by ordinance, purchased or acquired from any person engaged within 
172.20 	the city of Rogers in the business of selling motor vehicles at retail.
172.21 		Subd. 3.Use of sales and use tax and excise tax revenues. (a) The revenues derived 
172.22 	from the taxes authorized under subdivisions 1 and 2 must be used by the city of Rogers to 
172.23 	pay the costs of collecting and administering the taxes and the capital and administrative 
172.24 	costs of any or all of the following projects:
172.25 	(1) trail and pedestrian facilities including an I-94 pedestrian crossing, a County Road 
172.26 	144 pedestrian tunnel, and other new trails and trail connections;
172.27 	(2) aquatics facilities consisting of either or both of a splash pad and any contribution 
172.28 	toward the community portion of a school pool; and
172.29 	(3) community athletic facilities including construction of South Community park, site 
172.30 	improvements for future recreation facilities, and a multipurpose indoor turf facility.
173.1 	(b) The total that may be raised from the taxes to pay for these projects is limited to 
173.2 	$16,500,000, plus the costs related to the issuance and paying debt service on bonds for 
173.3 	these projects.
173.4 		Subd. 4.Bonding authority. (a) The city of Rogers may issue bonds under Minnesota 
173.5 	Statutes, chapter 475, pursuant to approval by the voters at the general election of November 
173.6 	6, 2018, to finance all or a portion of the costs of the projects authorized in subdivision 3. 
173.7 	The aggregate principal amount of bonds issued under this subdivision may not exceed 
173.8 	$16,500,000, minus an amount equal to any state grant authorized before October 1, 2019, 
173.9 	to fund any of the projects listed in subdivision 3, and plus an amount equal to interest on 
173.10 	and the costs of issuing the bonds. The bonds may be paid from or secured by any funds 
173.11 	available to the city of Rogers, including the taxes authorized under subdivisions 1 and 2.
173.12 	(b) The bonds are not included in computing any debt limitation applicable to the city 
173.13 	of Rogers, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
173.14 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
173.15 	the bonds under Minnesota Statutes, section 475.58, is not required.
173.16 		Subd. 5.Termination of taxes. The taxes imposed under subdivisions 1 and 2 expire 
173.17 	at the earlier of: (1) 20 years after the taxes are first imposed; or (2) when the city council 
173.18 	determines that $16,500,000, minus an amount equal to any state grant authorized before 
173.19 	October 1, 2019, to fund any of the projects listed in subdivision 3, and plus an amount 
173.20 	sufficient to pay interest on and the costs of issuing the bonds authorized under subdivision 
173.21 	4, has been received from the taxes to pay for the cost of the projects authorized under 
173.22 	subdivision 3. Any funds remaining after payment of all such costs and payment of the 
173.23 	bonds in full shall be placed in the general fund of the city. The taxes imposed under 
173.24 	subdivisions 1 and 2 may expire at an earlier time if the city so determines by ordinance.

173.25 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
173.26 	city of Rogers and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
173.27 	subdivisions 2 and 3.

173.28 	Sec. 27. CITY OF SARTELL; LOCAL TAXES AUTHORIZED.
 173.29 		Subdivision 1.Food and beverage tax authorized. Notwithstanding Minnesota Statutes, 
173.30 	section 297A.99 or 477A.016, or any ordinance or other provision of law, and if approved 
173.31 	by voters at the November 3, 2020, general election, or at a special election held before 
173.32 	November 3, 2020, the city of Sartell may, by ordinance, impose a sales tax of up to 1-1/2 
173.33 	percent on the gross receipts of all food and beverages sold by a restaurant or place of 
173.34 	refreshment, as defined by ordinance of the city, that is located within the city. For purposes 
174.1 	of this section, "food and beverages" include retail on-sale of intoxicating liquor and 
174.2 	fermented malt beverages.
174.3 		Subd. 2.Use of proceeds from authorized taxes. The proceeds of the taxes imposed 
174.4 	under subdivision 1 must be used by the city to fund capital or operational costs for new 
174.5 	and existing recreational facilities and related amenities within the city. Authorized expenses 
174.6 	include securing or paying debt service on bonds or other obligations issued to finance 
174.7 	construction and improvement projects.
174.8 		Subd. 3.Termination of taxes. The tax imposed under subdivision 1 expires five years 
174.9 	after the tax is first imposed.
174.10 		Subd. 4.Collection, administration, and enforcement. The city may enter into an 
174.11 	agreement with the commissioner of revenue to administer, collect, and enforce the taxes 
174.12 	under subdivision 1. If the commissioner agrees to collect the tax, the provisions of Minnesota 
174.13 	Statutes, sections 270C.171 and 297A.99, related to collection, administration, and 
174.14 	enforcement apply.

174.15 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
174.16 	city of Sartell and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
174.17 	subdivisions 2 and 3.

174.18 	Sec. 28. CITY OF SAUK CENTRE; TAXES AUTHORIZED.
 174.19 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
174.20 	section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city 
174.21 	charter, the city of Sauk Centre, pursuant to approval by the voters at the general election 
174.22 	on November 6, 2018, may impose by ordinance a sales and use tax of up to one-half of 
174.23 	one percent and a $20 motor vehicle excise tax for the purposes specified in subdivision 2. 
174.24 	Except as otherwise provided in this section, the provisions of Minnesota Statutes, section 
174.25 	297A.99, govern the imposition, administration, collection, and enforcement of the tax 
174.26 	authorized under this subdivision.
174.27 		Subd. 2.Use of revenues. Revenues received from taxes authorized by subdivision 1 
174.28 	must be used by the city to:
174.29 	(1) pay the costs of collecting and administering the tax;
174.30 	(2) pay the capital costs of city infrastructure improvement projects directly related to 
174.31 	the reconstruction of Trunk Highway 71; and
175.1 	(3) pay debt service on bonds issued under subdivision 3 or other obligations issued to 
175.2 	finance the improvements listed in this subdivision in the city.
175.3 		Subd. 3.Bonding authority. (a) The city may issue bonds under Minnesota Statutes, 
175.4 	chapter 475, to pay the costs of the projects authorized in subdivision 2. The aggregate 
175.5 	principal amount of bonds issued under this subdivision may not exceed $10,000,000 plus 
175.6 	an amount to be applied to the payment of the costs of issuing the bonds. The bonds may 
175.7 	be paid from or secured by any funds available to the city, including the tax authorized 
175.8 	under subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota 
175.9 	Statutes, sections 275.60 and 275.61.
175.10 	(b) The bonds are not included in computing any debt limitation applicable to the city, 
175.11 	and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest 
175.12 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
175.13 	under Minnesota Statutes, section 475.58, is not required.
175.14 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
175.15 	earlier of: (1) December 31, 2045; or (2) when the city council determines that $10,000,000 
175.16 	has been received from the tax to pay for the cost of the projects authorized under subdivision 
175.17 	2, plus an amount sufficient to pay the costs related to issuance of the bonds authorized 
175.18 	under subdivision 3, including interest on the bonds. Any funds remaining after payment 
175.19 	of all such costs and retirement or redemption of the bonds shall be placed in the general 
175.20 	fund of the city. The tax imposed under subdivision 1 may expire at an earlier time if the 
175.21 	city so determines by ordinance.

175.22 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
175.23 	city of Sauk Centre and its chief clerical officer comply with Minnesota Statutes, section 
175.24 	645.021, subdivisions 2 and 3.

175.25 	Sec. 29. CITY OF SCANLON; TAXES AUTHORIZED.
 175.26 		Subdivision 1.Sales and use tax; authorization. Notwithstanding Minnesota Statutes, 
175.27 	section 297A.99, subdivision 3, paragraph (b), or 477A.016, or any other law or ordinance, 
175.28 	the city of Scanlon, pursuant to approval by the voters at the general election on November 
175.29 	6, 2018, may impose by ordinance a sales and use tax of up to one-half of one percent for 
175.30 	the purposes specified in subdivision 2. Except as otherwise provided in this section, the 
175.31 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
175.32 	collection, and enforcement of the tax authorized under this subdivision.
176.1 		Subd. 2.Use of revenues. Revenues received from taxes authorized by subdivision 1 
176.2 	must be used by the city to:
176.3 	(1) pay the costs of collecting and administering the tax;
176.4 	(2) pay the capital and administrative costs of city street improvements and utility 
176.5 	infrastructure, including storm sewer and sanitary sewer improvements; and
176.6 	(3) pay debt service on bonds issued under subdivision 3 or other obligations issued to 
176.7 	finance the improvements listed in this subdivision in the city.
176.8 		Subd. 3.Bonding authority. (a) The city may issue bonds under Minnesota Statutes, 
176.9 	chapter 475, to pay the costs of the projects authorized in subdivision 2. The aggregate 
176.10 	principal amount of bonds issued under this subdivision may not exceed $400,000 plus an 
176.11 	amount to be applied to the payment of the costs of issuing the bonds. The bonds may be 
176.12 	paid from or secured by any funds available to the city, including the tax authorized under 
176.13 	subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota 
176.14 	Statutes, sections 275.60 and 275.61.
176.15 	(b) The bonds are not included in computing any debt limitation applicable to the city, 
176.16 	and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest 
176.17 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
176.18 	under Minnesota Statutes, section 475.58, is not required.
176.19 		Subd. 4.Termination of taxes. (a) The tax imposed under subdivision 1 expires at the 
176.20 	earlier of: (1) ten years after the tax is first imposed; or (2) when the city council determines 
176.21 	that $400,000 has been received from the tax to pay for the cost of the projects authorized 
176.22 	under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the 
176.23 	bonds authorized under subdivision 3, including interest on the bonds.
176.24 	(b) Any funds remaining after payment of all such costs and retirement or redemption 
176.25 	of the bonds shall be placed in the general fund of the city. The tax imposed under subdivision 
176.26 	1 may expire at an earlier time if the city so determines by ordinance.

176.27 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
176.28 	city of Scanlon and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
176.29 	subdivisions 2 and 3.

176.30 	Sec. 30. CITY OF VIRGINIA; LOCAL SALES AND USE TAX AUTHORIZED.
 176.31 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
176.32 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
177.1 	and as approved by the voters at the November 6, 2018, general election, the city of Virginia 
177.2 	may impose, by ordinance, a sales and use tax of up to one percent for the purposes specified 
177.3 	in subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota 
177.4 	Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement 
177.5 	of the tax authorized under this subdivision.
177.6 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
177.7 	under subdivision 1 must be used by the city of Virginia to pay the costs of collecting and 
177.8 	administering the tax, and to finance the costs of renovation, reconstruction, expansion, and 
177.9 	improvements of the Miner's Memorial recreation complex and convention center. Authorized 
177.10 	costs include engineering and construction costs and associated bond issuance costs.
177.11 		Subd. 3.Bonding authority. (a) The city of Virginia may issue bonds under Minnesota 
177.12 	Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in 
177.13 	subdivision 2.  The aggregate principal amount of bonds issued under this subdivision may 
177.14 	not exceed $30,000,000, plus an amount applied to the payment of costs of issuing the 
177.15 	bonds. The bonds may be paid from or secured by any funds available to the city of Virginia, 
177.16 	including the tax authorized under subdivision 1. The issuance of bonds under this 
177.17 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
177.18 	(b) The bonds are not subject to any provisions of the home rule charter of the city of 
177.19 	Virginia and are not included in computing any debt limitation applicable to the city. Any 
177.20 	levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest on 
177.21 	the bonds is not subject to any levy limitation. A separate election to approve the bonds 
177.22 	under Minnesota Statutes, section 475.58, is not required.
177.23 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
177.24 	earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines 
177.25 	that the city has received $30,000,000 from this tax to fund the projects listed in subdivision 
177.26 	2 plus an amount sufficient to pay costs, including interest costs, related to the issuance of 
177.27 	the bonds authorized in subdivision 3. Any funds remaining after payment of the allowed 
177.28 	costs due to timing of the termination under section 297A.99 shall be placed in the city's 
177.29 	general fund. The tax imposed under subdivision 1 may expire at an earlier time if the city 
177.30 	so determines by ordinance.

177.31 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
177.32 	city of Virginia and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
177.33 	subdivisions 2 and 3.

178.1 	Sec. 31. CITY OF WEST ST. PAUL; LOCAL TAX AUTHORIZED.
 178.2 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
178.3 	section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city 
178.4 	charter, and as approved by the voters at the general election of November 6, 2018, the city 
178.5 	of West St. Paul may impose, by ordinance, a sales and use tax of one-half of one percent 
178.6 	for the purposes specified in subdivision 2. Except as otherwise provided in this section, 
178.7 	the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
178.8 	collection, and enforcement of the tax authorized under this subdivision.
178.9 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
178.10 	under subdivision 1 must be used by the city of West St. Paul to pay the costs of collecting 
178.11 	and administering the tax and to finance the capital and administrative costs of rebuilding 
178.12 	and repair of essential transportation corridors and related ancillary roads within the city, 
178.13 	including but not limited to Annapolis Street which borders both Ramsey and Dakota County, 
178.14 	the cultural corridor of Smith Avenue, historic Dodd Road, and other essential corridors. 
178.15 	The total that may be raised from the tax to pay for these projects is limited to $28,000,000, 
178.16 	plus the costs related to the issuance and paying debt service on bonds for these projects.
178.17 		Subd. 3.Bonding authority. (a) The city of West St. Paul may issue bonds under 
178.18 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities 
178.19 	authorized in subdivision 2. The aggregate principal amount of bonds issued under this 
178.20 	subdivision may not exceed $28,000,000, plus an amount to be applied to the payment of 
178.21 	the costs of issuing the bonds. The bonds may be paid from or secured by any funds available 
178.22 	to the city of West St. Paul, including the tax authorized under subdivision 1. The issuance 
178.23 	of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 
178.24 	275.61.
178.25 	(b) The bonds are not included in computing any debt limitation applicable to the city 
178.26 	of West St. Paul, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
178.27 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
178.28 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
178.29 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
178.30 	earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines 
178.31 	that $28,000,000, plus an amount sufficient to pay the costs related to issuing the bonds 
178.32 	authorized under subdivision 3, including interest on the bonds, has been received from the 
178.33 	tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining 
178.34 	after payment of all such costs and retirement or redemption of the bonds shall be placed 
179.1 	in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier 
179.2 	time if the city so determines by ordinance.

179.3 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
179.4 	city of West St. Paul and its chief clerical officer comply with Minnesota Statutes, section 
179.5 	645.021, subdivisions 2 and 3.

179.6 	Sec. 32. CITY OF WILLMAR; TAX AUTHORIZED.
 179.7 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
179.8 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
179.9 	and as approved by the voters at the November 6, 2018, general election, the city of Willmar 
179.10 	may impose, by ordinance, a sales and use tax of up to one-half of one percent for the 
179.11 	purposes specified in subdivision 3. Except as otherwise provided in this section, the 
179.12 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
179.13 	collection, and enforcement of the tax authorized under this subdivision.
179.14 		Subd. 2.Excise tax authorized. Notwithstanding Minnesota Statutes, section 477A.016, 
179.15 	or any other contrary provision of law, ordinance, or city charter, the city of Willmar may 
179.16 	impose by ordinance, for the purposes specified in subdivision 3, an excise tax of up to $20 
179.17 	per motor vehicle, as defined by ordinance, purchased or acquired from any person engaged 
179.18 	within the city of Willmar in the business of selling motor vehicles at retail.
179.19 		Subd. 3.Use of revenues. (a) The revenues derived from the taxes authorized under 
179.20 	subdivisions 1 and 2 must be used by the city of Willmar to pay the costs of collecting and 
179.21 	administering the taxes, and to pay for the projects listed in this subdivision, including 
179.22 	securing and paying debt service on bonds issued to finance all or part of these projects. 
179.23 	The total amount of projects to be funded with the taxes imposed under subdivisions 1 and 
179.24 	2 shall not exceed $30,000,000 plus the costs related to the issuance and paying debt service 
179.25 	on bonds for these projects. The amount that may be spent on each project is limited to:
179.26 	(1) $2,000,000 for a community center replacement;
179.27 	(2) $6,000,000 for new athletic fields;
179.28 	(3) $3,000,000 for infrastructure improvements at Robins Island Regional Park;
179.29 	(4) $2,000,000 for a new playground and spectator amenities at Swansson Field Regional 
179.30 	Park;
179.31 	(5) $7,000,000 for storm water management infrastructure improvements; and
179.32 	(6) $10,000,000 for a new recreation and event center.
180.1 	(b) Notwithstanding the limits listed in paragraph (a) the city may by ordinance reallocate 
180.2 	up to ten percent of the funds designated for one or more projects listed in that paragraph 
180.3 	to other projects listed in that paragraph.
180.4 		Subd. 4.Bonding authority. (a) The city of Willmar may issue bonds under Minnesota 
180.5 	Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in 
180.6 	subdivision 3. The aggregate principal amount of bonds issued under this subdivision may 
180.7 	not exceed $30,000,000, plus an amount applied to the payment of costs of issuing the 
180.8 	bonds. The bonds may be paid from or secured by any funds available to the city of Willmar, 
180.9 	including the taxes authorized under subdivisions 1 and 2. The issuance of bonds under this 
180.10 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
180.11 	(b) The bonds are not subject to any provisions of the home rule charter of the city of 
180.12 	Willmar and are not included in computing any debt limitation applicable to the city. Any 
180.13 	levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest on 
180.14 	the bonds is not subject to any levy limitation. A separate election to approve the bonds 
180.15 	under Minnesota Statutes, section 475.58, is not required.
180.16 		Subd. 5.Termination of taxes. The taxes imposed under subdivisions 1 and 2 expire 
180.17 	at the earlier of: (1) 13 years after the taxes are first imposed; or (2) when the city council 
180.18 	determines that the city has received $30,000,000 from this tax to fund the projects listed 
180.19 	in subdivision 3 plus an amount sufficient to pay interest on and the costs of the issuance 
180.20 	of the bonds authorized in subdivision 4. Any funds remaining after payment of the allowed 
180.21 	costs due to timing of the termination under Minnesota Statutes, section 297A.99, shall be 
180.22 	placed in the city's general fund. The taxes imposed under subdivisions 1 and 2 may expire 
180.23 	at an earlier time if the city so determines by ordinance.

180.24 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
180.25 	city of Willmar and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
180.26 	subdivisions 2 and 3.

180.27 	Sec. 33. CITY OF WORTHINGTON; TAX AUTHORIZED.
 180.28 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
180.29 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
180.30 	and as approved by the voters at the November 6, 2018, general election, the city of 
180.31 	Worthington may impose, by ordinance, a sales and use tax of one-half of one percent for 
180.32 	the purposes specified in subdivision 3. Except as otherwise provided in this section, the 
180.33 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
181.1 	collection, and enforcement of the tax authorized under this subdivision. The tax under this 
181.2 	subdivision may not be imposed until the city complies with the provisions of section 34.
181.3 		Subd. 2.Use of tax revenues. (a) The revenues derived from the taxes authorized under 
181.4 	subdivision 1 must be used by the city of Worthington to pay the costs of collecting and 
181.5 	administering the tax and paying for the projects listed in this subdivision, including securing 
181.6 	and paying debt service on bonds issued to finance all or part of the following projects:
181.7 	(1) improvements to the aquatic center;
181.8 	(2) improvements to the field house;
181.9 	(3) improvements to the ice arena;
181.10 	(4) other park and recreation capital projects and improvements;
181.11 	(5) lake quality improvement; and
181.12 	(6) improvements to the 10th Street plaza.
181.13 	(b) The total amount of projects to be funded with the taxes imposed under subdivisions 
181.14 	1 and 2 shall not exceed $25,000,000 plus the costs related to the issuance of and paying 
181.15 	debt service on bonds for these projects.
181.16 		Subd. 3.Bonding authority. (a) The city of Worthington may issue bonds under 
181.17 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the projects 
181.18 	authorized in subdivision 3. The aggregate principal amount of bonds issued under this 
181.19 	subdivision may not exceed $25,000,000 plus an amount applied to the payment of costs 
181.20 	of issuing the bonds. The bonds may be paid from or secured by any funds available to the 
181.21 	city of Worthington, including the taxes authorized under subdivisions 1 and 2. The issuance 
181.22 	of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 
181.23 	275.61.
181.24 	(b) The bonds are not subject to any provisions of the home rule charter of the city of 
181.25 	Worthington and are not included in computing any debt limitation applicable to the city. 
181.26 	Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest 
181.27 	on the bonds is not subject to any levy limitation. A separate election to approve the bonds 
181.28 	under Minnesota Statutes, section 475.58, is not required.
181.29 		Subd. 4.Termination of taxes. The taxes imposed under subdivisions 1 and 2 expire 
181.30 	at the earlier of: (1) 15 years after the taxes are first imposed; or (2) when the city council 
181.31 	determines that the city has received $25,000,000 from this tax to fund the projects listed 
181.32 	in subdivision 3 plus an amount sufficient to pay interest on and the costs of the issuance 
182.1 	of the bonds authorized in subdivision 4. Any funds remaining after payment of the allowed 
182.2 	costs due to timing of the termination under Minnesota Statutes, section 297A.99, shall be 
182.3 	placed in the city's general fund. The taxes imposed under subdivisions 1 and 2 may expire 
182.4 	at an earlier time if the city so determines by ordinance.

182.5 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
182.6 	city of Worthington and its chief clerical officer comply with Minnesota Statutes, section 
182.7 	645.021, subdivisions 2 and 3.

182.8 	Sec. 34. RESOLUTION AND PUBLIC NOTICE OF SPECIFIC PROJECTS TO 
182.9 	BE FUNDED WITH A LOCAL SALES TAX.
 182.10 	(a) A city authorized to impose a local sales tax based on voter approval at the November 
182.11 	2018 general election that is subject to this provision must meet the requirements in this 
182.12 	section before imposing the tax. The city must pass a resolution at a regularly scheduled 
182.13 	city council meeting outlining each of the specific capital projects that will be funded by 
182.14 	the tax and the anticipated amount of the revenues to be raised from the tax that will be used 
182.15 	for each project. Within allowed funding areas listed in the authorized uses of the tax revenue, 
182.16 	the city must give priority to funding projects of regional significance. For purposes of this 
182.17 	section a "specific capital project" means:
182.18 	(1) a single building or structure including associated infrastructure needed to safely 
182.19 	access or use the building or structure;
182.20 	(2) improvements within a single park or named recreation area;
182.21 	(3) a contiguous trail;
182.22 	(4) a contiguous segment of roadway, or two or more contiguous segments of roadway 
182.23 	provided that all segments of the roadway are listed, and including city infrastructure beneath 
182.24 	the roadway provided the infrastructure is explicitly listed; and
182.25 	(5) a sanitary sewer, storm sewer, or water project in a contiguous geographic area served 
182.26 	by the project that is specifically described in the resolution.
182.27 	(b) The chief clerical officer of the city must file with the commissioner of revenue (1) 
182.28 	an affidavit indicating compliance with this section, and (2) a copy of the resolution, before 
182.29 	the tax may be imposed. The resolution must also be published on the city's website in a 
182.30 	manner easily accessible to the public either through a link displayed on the city's home 
182.31 	page or by publishing it directly on the city's home page. The resolution must remain on 
182.32 	the website until the tax terminates. Only projects listed in the resolution may be funded by 
182.33 	the local sales tax.
183.1 	(c) The authority to impose a local sales tax that is subject to this section expires on 
183.2 	January 1, 2021, if the city has not met the requirements of this section by the last business 
183.3 	day before December 31, 2020.

183.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

183.5 	ARTICLE 7
183.6 	TAX INCREMENT FINANCING

183.7 	Section 1. Laws 2003, chapter 127, article 10, section 31, subdivision 1, as amended by 
183.8 	Laws 2008, chapter 366, article 5, section 21, is amended to read:
183.9 		Subdivision 1. District extension. (a) The governing body of the city of Hopkins may 
183.10 	elect to extend the duration of its redevelopment tax increment financing district 2-11 by 
183.11 	up to four additional years.
183.12 	(b) Notwithstanding any law to the contrary Minnesota Statutes, section 469.1763, 
183.13 	subdivision 2, effective upon approval of this subdivision, no increments may be spent on 
183.14 	activities located outside of the area of the district, other than:
183.15 	(1) to pay administrative expenses, not to exceed ten percent of the total tax increments 
183.16 	from the district; or
183.17 	(2) to pay the costs of housing or redevelopment activities that are consistent with 
183.18 	Minnesota Statutes, section 469.176, subdivision 4j, provided that expenditures under this 
183.19 	clause may not exceed 20 percent of the total tax increments from the district.
183.20 	The total amount of increment that may be spent on activities located outside the area of 
183.21 	the district under this section shall be limited to 25 percent.

183.22 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
183.23 	city of Hopkins and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
183.24 	subdivisions 2 and 3.

183.25 	Sec. 2. Laws 2008, chapter 366, article 5, section 26, as amended by Laws 2013, chapter 
183.26 	143, article 9, section 11, is amended to read:
183.27 	Sec. 26. BLOOMINGTON TAX INCREMENT FINANCING; FIVE-YEAR RULE.
 183.28 	(a) The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that 
183.29 	activities must be undertaken within a five-year period from the date of certification of a 
183.30 	tax increment financing district, are increased to a 15-year21-year period for the Port 
184.1 	Authority of the City of Bloomington's Tax Increment Financing District No. 1-I, 
184.2 	Bloomington Central Station.
184.3 	(b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any other 
184.4 	law to the contrary, the city of Bloomington and its port authority may extend the duration 
184.5 	limits of the district for a period through December 31, 2039.
184.6 	(c) Effective for taxes payable in 2014, tax increment for the district must be computed 
184.7 	using the current local tax rate, notwithstanding the provisions of Minnesota Statutes, section 
184.8 	469.177, subdivision 1a.

184.9 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
184.10 	city of Bloomington and its chief clerical officer comply with Minnesota Statutes, section 
184.11 	645.021, subdivisions 2 and 3.

184.12 	Sec. 3. Laws 2014, chapter 308, article 6, section 8, subdivision 1, as amended by Laws 
184.13 	2017, First Special Session chapter 1, article 6, section 11, is amended to read:
184.14 		Subdivision 1.Authority to create districts. (a) The governing body of the city of 
184.15 	Edina or its development authority may establish one or more tax increment financing 
184.16 	housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries 
184.17 	exist on March 31, 2014.
184.18 	(b) The authority to request certification of districts under this section expires on 
184.19 	December 31, 2019 2021.

184.20 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
184.21 	city of Edina and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
184.22 	subdivisions 2 and 3.

184.23 	Sec. 4. CITY OF ALEXANDRIA; TIF DISTRICT NO. 50; FIVE-YEAR RULE 
184.24 	EXTENSION.
 184.25 	The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities 
184.26 	must be undertaken within a five-year period from the date of certification of a tax increment 
184.27 	financing district, is considered to be met for TIF District No. 50, administered by the city 
184.28 	of Alexandria, or its economic development authority, if the activities are undertaken prior 
184.29 	to July 16, 2023.

184.30 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
184.31 	city of Alexandria and its chief clerical officer comply with Minnesota Statutes, section 
184.32 	645.021, subdivisions 2 and 3.

185.1 	Sec. 5. CITY OF ANOKA; COMMUTER RAIL TRANSIT VILLAGE TIF 
185.2 	DISTRICT; FIVE-YEAR RULE EXTENSION.
 185.3 	The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities 
185.4 	must be undertaken within a five-year period from the date of certification of a tax increment 
185.5 	financing district, is considered to be met for the Commuter Rail Transit Village tax 
185.6 	increment financing district, administered by the city of Anoka, if the activities are undertaken 
185.7 	prior to April 7, 2023.

185.8 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
185.9 	city of Anoka and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
185.10 	subdivisions 2 and 3.

185.11 	Sec. 6. CITY OF CHAMPLIN; MISSISSIPPI CROSSINGS TIF DISTRICT; 
185.12 	FIVE-YEAR RULE EXTENSION; DURATION EXTENSION.
 185.13 		Subdivision 1.Five-year rule. The requirement of Minnesota Statutes, section 469.1763, 
185.14 	subdivision 3, that activities must be undertaken within a five-year period from the date of 
185.15 	certification of a tax increment financing district, is extended to a ten-year period for the 
185.16 	Mississippi Crossings Tax Increment Financing District administered by the city of Champlin.
185.17 		Subd. 2.Duration. Notwithstanding Minnesota Statutes, section 469.176, subdivision 
185.18 	1b, or any other law to the contrary, the city of Champlin may elect to extend the duration 
185.19 	of the Mississippi Crossings Tax Increment Financing District by five years.

185.20 	EFFECTIVE DATE. This section is effective upon compliance by the governing bodies 
185.21 	of the city of Champlin, Hennepin County, and Independent School District No. 11 
185.22 	(Anoka-Hennepin), with the requirements of Minnesota Statutes, sections 469.1782, 
185.23 	subdivision 2; and 645.021, subdivisions 2 and 3.

185.24 	Sec. 7. CITY OF DULUTH; TAX INCREMENT FINANCING DISTRICT; SPECIAL 
185.25 	RULES AUTHORIZATION.
 185.26 		Subdivision 1.Establishment. The city of Duluth or the Duluth Economic Development 
185.27 	Authority may establish, by resolution, one redevelopment tax increment financing district 
185.28 	located in the city of Duluth, St. Louis County, Minnesota, within the area bordered on the 
185.29 	northeast by Slip 3 and the Pier B Resort property line extended northwest to Interstate 35, 
185.30 	on the southeast by the Duluth Harbor, on the southwest by the Compass Minerals property 
185.31 	line extended northwest to Interstate 35, and on the northwest by Interstate 35, together 
186.1 	with adjacent roads and rights-of-way; and such property is deemed to meet the requirements 
186.2 	of Minnesota Statutes, section 469.174, subdivision 10.
186.3 		Subd. 2.Eligible expenditures. Expenditures incurred in connection with the 
186.4 	development of the property described in subdivision 1 are deemed to meet the requirements 
186.5 	of Minnesota Statutes, section 469.176, subdivision 4j. Eligible expenditures for any tax 
186.6 	increment financing district established in the area described in subdivision 1 include, 
186.7 	without limitation, seawalls and pier facings adjacent to the boundaries of such district.

186.8 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
186.9 	city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
186.10 	subdivisions 2 and 3.

186.11 	Sec. 8. CITY OF MINNEAPOLIS; UPPER HARBOR TERMINAL 
186.12 	REDEVELOPMENT TIF DISTRICT; SPECIAL RULES AUTHORIZATION.
 186.13 		Subdivision 1.Qualifying rules. Notwithstanding Minnesota Statutes, section 469.174, 
186.14 	subdivision 10, the governing body of the city of Minneapolis may establish, by resolution, 
186.15 	one or more redevelopment tax increment financing districts within that portion of the North 
186.16 	Washington Industrial Park Redevelopment Project Area as its boundaries existed on January 
186.17 	1, 2019, located north of Lowry Avenue. In each resolution, the city must find that each 
186.18 	parcel in the district was part of property that was formerly used as a municipally owned 
186.19 	intermodal barge shipping facility that can no longer be used for such purpose due to the 
186.20 	closure of the Upper St. Anthony Falls Lock under the federal Water Resources Reform 
186.21 	and Development Act of 2014. Except as provided in this section, the provisions of Minnesota 
186.22 	Statutes, sections 469.174 to 469.1794, apply to each district created under this section.
186.23 		Subd. 2.Use of increments. Minnesota Statutes, section 469.176, subdivision 4j, does 
186.24 	not apply to any district established under this section.
186.25 		Subd. 3.Pooling authority. Notwithstanding Minnesota Statutes, section 469.1763, 
186.26 	subdivision 2, the permitted percentage of increments that may be expended on activities 
186.27 	outside the district, but within the project area, is increased to 35 percent for districts 
186.28 	established under this section.
186.29 		Subd. 4.Five-year rule. The five-year rule period under Minnesota Statutes, section 
186.30 	469.1763, subdivision 3, is extended to ten years for any district established under this 
186.31 	section.

187.1 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
187.2 	city of Minneapolis and its chief clerical officer comply with Minnesota Statutes, section 
187.3 	645.021, subdivisions 2 and 3.

187.4 	Sec. 9. CITY OF ROSEVILLE; HAZARDOUS SUBSTANCE SUBDISTRICT NO. 
187.5 	17A; EXPENDITURE OF TAX INCREMENT.
 187.6 	Notwithstanding Minnesota Statutes, section 469.1763, or any other law to the contrary, 
187.7 	the city of Roseville and the Roseville Economic Development Authority may use any or 
187.8 	all increment generated from Hazardous Substance Subdistrict No. 17A for the purpose of 
187.9 	financing environmental remediation pursuant to one or more response action plans on the 
187.10 	parcels within the subdistrict as originally certified, regardless of the date of approval of 
187.11 	the response action plan by the Pollution Control Agency.

187.12 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
187.13 	city of Roseville and its chief clerical officer comply with the requirements of Minnesota 
187.14 	Statutes, section 645.021, subdivisions 2 and 3.

187.15 	ARTICLE 8
187.16 	PUBLIC FINANCE

187.17 	Section 1. Minnesota Statutes 2018, section 37.31, subdivision 1, is amended to read:
187.18 		Subdivision 1.Bonding authority. The society may issue negotiable bonds in a principal 
187.19 	amount that the society determines necessary to provide sufficient money for achieving its 
187.20 	purposes, including the payment of interest on bonds of the society, the establishment of 
187.21 	reserves to secure its bonds, the payment of fees to a third party providing credit 
187.22 	enhancement, and the payment of all other expenditures of the society incident to and 
187.23 	necessary or convenient to carry out its corporate purposes and powers. Bonds of the society 
187.24 	may be issued as bonds or notes or in any other form authorized by law. The principal 
187.25 	amount of bonds issued and outstanding under this section at any time may not exceed 
187.26 	$20,000,000 $30,000,000, excluding bonds for which refunding bonds or crossover refunding 
187.27 	bonds have been issued.

187.28 	Sec. 2. Minnesota Statutes 2018, section 103E.611, subdivision 2, is amended to read:
187.29 		Subd. 2.Interest. (a) Interest is an additional drainage lien on all property until paid. 
187.30 	The interest rate on the drainage lien principal from the date the drainage lien statement is 
187.31 	recorded must be set by the board but may not exceed the rate determined by the state court 
187.32 	administrator for judgments under section 549.09, or six percent, whichever is greater.
188.1 	(b) Before the tax lists for the year are given to the county treasurer, the auditor shall 
188.2 	compute the interest on the unpaid balance of the drainage lien at the rate set by the board. 
188.3 	The amount of interest must be computed on the entire unpaid principal from the date the 
188.4 	drainage lien was recorded to August 15 of the next calendar year, and afterwards from 
188.5 	August 15 to August 15 of each year.
188.6 	(c) Interest is due and payable after November 1 of each year the drainage lien principal 
188.7 	or interest is due and unpaid.

188.8 	Sec. 3. Minnesota Statutes 2018, section 123B.595, subdivision 5, is amended to read:
188.9 		Subd. 5.Bond authorization. (a) A school district may issue general obligation bonds 
188.10 	under this section to finance facilities plans approved by its board and the commissioner. 
188.11 	Chapter 475, except sections 475.58 and 475.59, must be complied with. The authority to 
188.12 	issue bonds under this section is in addition to any bonding authority authorized by this 
188.13 	chapter or other law. The amount of bonding authority authorized under this section must 
188.14 	be disregarded in calculating the bonding or net debt limits of this chapter, or any other law 
188.15 	other than section 475.53, subdivision 4.
188.16 	(b) At least 20 days before the earliest of solicitation of bids, the issuance of bonds, or 
188.17 	the final certification of levies under subdivision 6, the district must publish notice of the 
188.18 	intended projects, the amount of the bond issue, and the total amount of district indebtedness.
188.19 	(c) The portion of revenue under this section for bonded debt must be recognized in the 
188.20 	debt service fund.

188.21 	Sec. 4. Minnesota Statutes 2018, section 297A.993, subdivision 1, is amended to read:
188.22 		Subdivision 1.Authorization; rates. Notwithstanding section 297A.99, subdivisions 
188.23 	1, 2, 3, 5, and 13, or 477A.016, or any other law, the board of a county outside the 
188.24 	metropolitan transportation area, as defined under section 297A.992, subdivision 1, or more 
188.25 	than one county outside the metropolitan transportation area acting under a joint powers 
188.26 	agreement, may by resolution of the county board, or each of the county boards, following 
188.27 	a public hearing impose (1) a transportation sales tax at a rate of up to one-half of one percent 
188.28 	on retail sales and uses taxable under this chapter, and (2) an excise tax of $20 per motor 
188.29 	vehicle, as defined in section 297B.01, subdivision 11, purchased or acquired from any 
188.30 	person engaged in the business of selling motor vehicles at retail, occurring within the 
188.31 	jurisdiction of the taxing authority.

189.1 	Sec. 5. Minnesota Statutes 2018, section 297A.993, subdivision 2, is amended to read:
189.2 		Subd. 2.Allocation; termination. The proceeds of the taxes must be dedicated 
189.3 	exclusively to: (1) payment of the capital cost of a specific transportation project or 
189.4 	improvement; (2) payment of the costs, which may include both capital and operating costs, 
189.5 	of a specific transit project or improvement; (3) payment of the capital costs of a safe routes 
189.6 	to school program under section 174.40; or (4) payment of transit operating costs. The 
189.7 	transportation or transit project or improvement must be designated by the board of the 
189.8 	county, or more than one county acting under a joint powers agreement. Except for taxes 
189.9 	for operating costs of a transit project or improvement, or for transit operations, the taxes 
189.10 	must terminate when revenues raised are sufficient to finance the project. Nothing in this 
189.11 	subdivision prohibits the exclusive dedication of the proceeds of the taxes to payments for 
189.12 	more than one project or improvement. After a public hearing a county may, by resolution, 
189.13 	dedicate the proceeds of the tax for a new enumerated project.

189.14 	Sec. 6. Minnesota Statutes 2018, section 297A.993, is amended by adding a subdivision 
189.15 	to read:
189.16 		Subd. 4.Bonds. (a) A county may, by resolution, authorize, issue, and sell its bonds, 
189.17 	notes, or other obligations for the purposes specified in subdivision 2. The county may also, 
189.18 	by resolution, issue bonds to refund the bonds issued pursuant to this subdivision.
189.19 	(b) The bonds may be limited obligations, payable solely from or secured by taxes levied 
189.20 	under this section, and the county may also pledge its full faith, credit, and taxing power as 
189.21 	additional security for the bonds. A regional railroad authority within the county may also 
189.22 	pledge its taxing powers as additional security for the bonds.
189.23 	(c) A county may issue and sell bonds in one or more series and without an election. 
189.24 	The county may determine how the bonds shall be secured; how the bonds will bear interest, 
189.25 	and the rate or rates, or variable rate; the rank or priority; how the bonds will be executed 
189.26 	and be payable, and how they will mature; and how the bonds will be subject to any defaults, 
189.27 	redemptions, repurchases, tender options, or other terms. The county may also determine 
189.28 	how the bonds shall be sold.
189.29 	(d) The county may enter into and perform all contracts deemed necessary or desirable 
189.30 	by it to issue and secure the bonds, including an indenture of trust with a trustee located 
189.31 	within or outside of the state.
189.32 	(e) Before issuing bonds qualifying under this section, the county must publish a notice 
189.33 	of its intention to issue the bonds and the date and time of a hearing to obtain public comment 
190.1 	on the matter. The notice must be published in the official newspaper of the county or in a 
190.2 	newspaper of general circulation in the county. The notice must be published at least 14, 
190.3 	but not more than 28, days before the date of the hearing.
190.4 	(f) Any project financed with bonds issued under this section must be included in a 
190.5 	capital improvement plan as defined in section 373.40, subdivision 3. For purposes of this 
190.6 	paragraph, "project" means any project described in subdivision 2, notwithstanding section 
190.7 	373.40, subdivision 1, paragraph (b).
190.8 	(g) Except as otherwise provided in this subdivision, the bonds must be issued and sold 
190.9 	in the manner provided under chapter 475.

190.10 	Sec. 7. Minnesota Statutes 2018, section 471.831, is amended to read:
190.11 	471.831 MUNICIPALITY MAY FILE BANKRUPTCY PETITION.
190.12 		Subdivision 1.Any relief under bankruptcy code. A municipality, as defined in 
190.13 	subdivision 2, may file a petition and seek any relief available to it under United States 
190.14 	Code, title 11, as amended through December 31, 1996.
190.15 		Subd. 2.Municipality defined. In this section, "municipality" means a municipality as 
190.16 	defined in United States Code, title 11, section 101, as amended through December 31, 
190.17 	1996, but limited to a county, statutory or home rule charter city, or town; or a housing and 
190.18 	redevelopment authority, economic development authority, or rural development financing 
190.19 	authority established under chapter 469, a home rule charter, or special law.

190.20 	Sec. 8. Minnesota Statutes 2018, section 474A.02, subdivision 22b, is amended to read:
190.21 		Subd. 22b.Public facilities project. "Public facilities project" means any publicly owned 
190.22 	facility, or a facility owned by a nonprofit organization that is used for district heating or 
190.23 	cooling, whether publicly or privately owned, that is eligible to be financed with the proceeds 
190.24 	of public facilities bonds as defined under section 474A.02, subdivision 23a.

190.25 	Sec. 9. Minnesota Statutes 2018, section 475.521, subdivision 1, is amended to read:
190.26 		Subdivision 1.Definitions. For purposes of this section, the following terms have the 
190.27 	meanings given.
190.28 	(a) "Bonds" mean an obligation defined under section 475.51.
190.29 	(b) "Capital improvement" means acquisition or betterment of public lands, buildings 
190.30 	or other improvements for the purpose of a city hall, town hall, library, public safety facility, 
190.31 	and public works facility. An improvement must have an expected useful life of five years 
191.1 	or more to qualify. Capital improvement does not include light rail transit or any activity 
191.2 	related to it, or a park, road, bridge, administrative building other than a city or town hall, 
191.3 	or land for any of those facilities. For purposes of this section, "capital improvement" 
191.4 	includes expenditures for purposes described in this paragraph that have been incurred by 
191.5 	a municipality before approval of a capital improvement plan, if such expenditures are 
191.6 	included in a capital improvement plan approved on or before the date of the public hearing 
191.7 	under subdivision 2 regarding issuance of bonds for such expenditures.
191.8 	(c) "Municipality" means a home rule charter or statutory city or a town described in 
191.9 	section 368.01, subdivision 1 or 1a.

191.10 	Sec. 10. REPEALER.
 191.11 	Minnesota Statutes 2018, section 37.31, subdivision 8, is repealed.

191.12 	Sec. 11. EFFECTIVE DATE.
 191.13 	Sections 1 to 10 are effective July 1, 2019.

191.14 	ARTICLE 9
191.15 	MINNESOTACARE TAXES

191.16 	Section 1. Minnesota Statutes 2018, section 295.51, subdivision 1a, is amended to read:
191.17 		Subd. 1a.Nexus in Minnesota. (a) To the extent allowed by the United States 
191.18 	Constitution and the laws of the United States, a person who is a wholesale drug distributor 
191.19 	has nexus in Minnesota if its contacts with or presence in Minnesota is sufficient to satisfy 
191.20 	the requirements of the United States Constitution., a person subject to tax under section 
191.21 	295.52, subdivision 4, or a person who sells or repairs hearing aids and related equipment 
191.22 	or prescription eyewear is subject to the taxes imposed by this chapter if the person:
191.23 	(1) has or maintains within this state, directly or by a subsidiary or an affiliate, an office, 
191.24 	place of distribution, sales, storage, or sample room or place, warehouse, or other place of 
191.25 	business, including the employment of a resident of this state who works from a home office 
191.26 	in this state;
191.27 	(2) has a representative, including but not limited to an employee, affiliate, agent, 
191.28 	salesperson, canvasser, solicitor, independent contractor, or other third party operating in 
191.29 	this state under the person's authority or the authority of the person's subsidiary, for any 
191.30 	purpose, including the repairing, selling, delivering, installing, facilitating sales, processing 
191.31 	sales, or soliciting of orders for the person's goods or services, or the leasing of tangible 
192.1 	personal property located in this state, whether the place of business or the agent, 
192.2 	representative, affiliate, salesperson, canvasser, or solicitor is located in the state permanently 
192.3 	or temporarily, or whether or not the person, subsidiary, or affiliate is authorized to do 
192.4 	business in this state;
192.5 	(3) owns or leases real property that is located in this state; or
192.6 	(4) owns or leases tangible personal property that is present in this state, including but 
192.7 	not limited to mobile property.
192.8 	(b) To the extent allowed by the United States Constitution and the laws of the United 
192.9 	States, a person who is a wholesale drug distributor, or a person who is subject to tax under 
192.10 	section 295.52, subdivision 4, is subject to the taxes imposed by this chapter if the person:
192.11 	(1) conducts a trade or business not described in paragraph (a) and sells, delivers, or 
192.12 	distributes legend drugs from outside this state to a destination within this state by common 
192.13 	carrier or otherwise; and
192.14 	(2) meets one of the following thresholds:
192.15 	(i) makes 200 or more sales, deliveries, or distributions described in clause (1) during 
192.16 	any taxable year;
192.17 	(ii) the gross revenues of a wholesale drug distributor that sells, delivers, or distributes 
192.18 	legend drugs as described in clause (1) totals more than $100,000 during any taxable year; 
192.19 	or
192.20 	(iii) the price paid by a person who is subject to tax under section 295.52, subdivision 
192.21 	4, totals more than $100,000 for legend drugs that the person sells, delivers, or distributes 
192.22 	as described in clause (1) during any taxable year.
192.23 	(c) To the extent allowed by the United States Constitution and the laws of the United 
192.24 	States, a person who sells or repairs hearing aids and related equipment or prescription 
192.25 	eyewear is subject to the taxes imposed by this chapter if the person:
192.26 	(1) conducts a trade or business not described in paragraph (a) and:
192.27 	(i) sells, delivers, or distributes hearing aids and related equipment or prescription 
192.28 	eyewear from outside of this state to a destination within this state by common carrier or 
192.29 	otherwise; or
192.30 	(ii) repairs hearing aids and related equipment or prescription eyewear outside of this 
192.31 	state and delivers or distributes the hearing aids and related equipment or prescription 
192.32 	eyewear to a destination within this state by common carrier or otherwise; and
193.1 	(2) meets one of the following thresholds:
193.2 	(i) makes 200 or more sales, deliveries, distributions, or repairs described in clause (1) 
193.3 	during any taxable year; or
193.4 	(ii) the gross revenues of the person who sells, delivers, distributes, or repairs hearing 
193.5 	aids and related equipment or prescription eyewear described in clause (1) totals more than 
193.6 	$100,000 during any taxable year.
193.7 	(d) Once a taxpayer has established nexus with Minnesota under paragraph (b) or (c), 
193.8 	the taxpayer must continue to file an annual return and remit taxes for subsequent years. A 
193.9 	taxpayer who has established nexus under paragraph (b) or (c) is no longer required to file 
193.10 	an annual return and remit taxes if the taxpayer:
193.11 	(1) ceases to engage in the activities or no longer meets any of the applicable thresholds 
193.12 	in paragraph (b) or (c) for an entire taxable year; and
193.13 	(2) notifies the commissioner by March 15 of the following calendar year, in a manner 
193.14 	prescribed by the commissioner, that the taxpayer no longer engages in any of the activities 
193.15 	or no longer meets any of the applicable thresholds in paragraph (b) or (c).
193.16 	(e) If, after notifying the commissioner pursuant to paragraph (d), the taxpayer 
193.17 	subsequently engages in any of the activities and meets any of the applicable thresholds in 
193.18 	paragraph (b) or (c), the taxpayer shall again comply with the applicable requirements of 
193.19 	paragraphs (b) to (d).

193.20 	EFFECTIVE DATE; APPLICATION. (a) This section is effective the day following 
193.21 	final enactment.
193.22 	(b) In enacting this section, the legislature confirms that the United States Supreme Court 
193.23 	decision in South Dakota v. Wayfair, Inc. et al., Dkt. No. 17-494 (June 21, 2018); 138 S. 
193.24 	Ct. 2080 (2018), applied upon the date of that decision to provide Minnesota with jurisdiction 
193.25 	over persons described in Minnesota Statutes, section 295.51, subdivision 1a, paragraphs 
193.26 	(b) and (c), for purposes of imposing tax under Minnesota Statutes, chapter 295, to the 
193.27 	extent allowed by the United States Constitution and the laws of the United States.

193.28 	Sec. 2. Minnesota Statutes 2018, section 295.52, subdivision 1, is amended to read:
193.29 		Subdivision 1.Hospital tax. A tax is imposed on each hospital equal to two 1.8 percent 
193.30 	of its gross revenues.

193.31 	EFFECTIVE DATE. This section is effective for gross revenues received after 
193.32 	December 31, 2019.

194.1 	Sec. 3. Minnesota Statutes 2018, section 295.52, subdivision 1a, is amended to read:
194.2 		Subd. 1a.Surgical center tax. A tax is imposed on each surgical center equal to two
194.3 	1.8 percent of its gross revenues.

194.4 	EFFECTIVE DATE. This section is effective for gross revenues received after 
194.5 	December 31, 2019.

194.6 	Sec. 4. Minnesota Statutes 2018, section 295.52, subdivision 2, is amended to read:
194.7 		Subd. 2.Provider tax. A tax is imposed on each health care provider equal to two 1.8
194.8 	percent of its gross revenues.

194.9 	EFFECTIVE DATE. This section is effective for gross revenues received after 
194.10 	December 31, 2019.

194.11 	Sec. 5. Minnesota Statutes 2018, section 295.52, subdivision 3, is amended to read:
194.12 		Subd. 3.Wholesale drug distributor tax. A tax is imposed on each wholesale drug 
194.13 	distributor equal to two 1.8 percent of its gross revenues.

194.14 	EFFECTIVE DATE. This section is effective for gross revenues received after 
194.15 	December 31, 2019.

194.16 	Sec. 6. Minnesota Statutes 2018, section 295.52, subdivision 4, is amended to read:
194.17 		Subd. 4.Use tax; legend drugs. (a) A person that receives legend drugs for resale or 
194.18 	use in Minnesota, other than from a wholesale drug distributor that is subject to tax under 
194.19 	subdivision 3, is subject to a tax equal to the price paid for the legend drugs multiplied by 
194.20 	the tax percentage specified in this section 1.8 percent. Liability for the tax is incurred when 
194.21 	legend drugs are received or delivered in Minnesota by the person.
194.22 	(b) A tax imposed under this subdivision does not apply to purchases by an individual 
194.23 	for personal consumption.

194.24 	EFFECTIVE DATE. This section is effective for legend drugs received or delivered 
194.25 	in Minnesota after December 31, 2019.

194.26 	Sec. 7. Minnesota Statutes 2018, section 295.52, subdivision 8, is amended to read:
194.27 		Subd. 8.Contingent reduction in tax rate. (a) By December 1 of each year, beginning 
194.28 	in 2011, the commissioner of management and budget shall determine the projected balance 
194.29 	in the health care access fund for the biennium.
195.1 	(b) If the commissioner of management and budget determines that the projected balance 
195.2 	in the health care access fund for the biennium reflects a ratio of revenues to expenditures 
195.3 	and transfers greater than 125 percent, and if the actual cash balance in the fund is adequate, 
195.4 	as determined by the commissioner of management and budget, the commissioner, in 
195.5 	consultation with the commissioner of revenue, shall reduce the tax rates levied under 
195.6 	subdivisions 1, 1a, 2, 3, and 4, for the subsequent calendar year sufficient to reduce the 
195.7 	structural balance in the fund. The rate may be reduced to the extent that the projected 
195.8 	revenues for the biennium do not exceed 125 percent of expenditures and transfers. The 
195.9 	new rate shall be rounded to the nearest one-tenth of one percent. The rate reduction under 
195.10 	this paragraph expires at the end of each calendar year and is subject to an annual 
195.11 	redetermination by the commissioner of management and budget.
195.12 	(c) For purposes of the analysis defined in paragraph (b), the commissioner of 
195.13 	management and budget shall include projected revenues, notwithstanding the repeal of the 
195.14 	tax imposed under this section effective January 1, 2020.

195.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

195.16 	Sec. 8. Minnesota Statutes 2018, section 295.57, subdivision 3, is amended to read:
195.17 		Subd. 3.Interest on overpayments. Interest must be paid on an overpayment refunded 
195.18 	or credited to the taxpayer from the date of payment of the tax until the date the refund is 
195.19 	paid or credited. For purposes of this subdivision, the date of payment is the due date of the 
195.20 	return or the date of actual payment of the tax, whichever is later in the manner provided 
195.21 	in section 289A.56, subdivision 2.

195.22 	EFFECTIVE DATE. This section is effective for overpayments made on or after 
195.23 	January 1, 2020.

195.24 	Sec. 9. Laws 2003, First Special Session chapter 14, article 13C, section 2, subdivision 
195.25 	6, as amended by Laws 2004, chapter 272, article 2, section 4; Laws 2005, First Special 
195.26 	Session chapter 4, article 5, section 18; and Laws 2005, First Special Session chapter 4, 
195.27 	article 9, section 11, is amended to read:

195.28	Subd. 6.Basic Health Care Grants

195.29	Summary by Fund
	
195.30	General
	1,290,454,000
	1,475,996,000
	
195.31	Health Care Access
	254,121,000
	282,689,000
	
196.1 	UPDATING FEDERAL POVERTY 
196.2 	GUIDELINES. Annual updates to the federal 
196.3 	poverty guidelines are effective each July 1, 
196.4 	following publication by the United States 
196.5 	Department of Health and Human Services 
196.6 	for health care programs under Minnesota 
196.7 	Statutes, chapters 256, 256B, 256D, and 256L.
196.8 	The amounts that may be spent from this 
196.9 	appropriation for each purpose are as follows:
196.10 	(a) MinnesotaCare Grants

196.11	Health Care Access
	253,371,000
	281,939,000
	
196.12 	MINNESOTACARE FEDERAL 
196.13 	RECEIPTS. Receipts received as a result of 
196.14 	federal participation pertaining to 
196.15 	administrative costs of the Minnesota health 
196.16 	care reform waiver shall be deposited as 
196.17 	nondedicated revenue in the health care access 
196.18 	fund. Receipts received as a result of federal 
196.19 	participation pertaining to grants shall be 
196.20 	deposited in the federal fund and shall offset 
196.21 	health care access funds for payments to 
196.22 	providers.
196.23 	MINNESOTACARE FUNDING. The 
196.24 	commissioner may expend money 
196.25 	appropriated from the health care access fund 
196.26 	for MinnesotaCare in either fiscal year of the 
196.27 	biennium.
196.28 	(b) MA Basic Health Care Grants - Families 
196.29 	and Children

196.30	General
	427,769,000
	489,545,000
	
196.31 	SERVICES TO PREGNANT WOMEN.
196.32 	The commissioner shall use available federal 
196.33 	money for the State-Children's Health 
197.1 	Insurance Program for medical assistance 
197.2 	services provided to pregnant women who are 
197.3 	not otherwise eligible for federal financial 
197.4 	participation beginning in fiscal year 2003. 
197.5 	This federal money shall be deposited in the 
197.6 	federal fund and shall offset general funds for 
197.7 	payments to providers. Notwithstanding 
197.8 	section 14, this paragraph shall not expire.
197.9 	MANAGED CARE RATE INCREASE.(a) 
197.10 	Effective January 1, 2004, the commissioner 
197.11 	of human services shall increase the total 
197.12 	payments to managed care plans under 
197.13 	Minnesota Statutes, section 256B.69, by an 
197.14 	amount equal to the cost increases to the 
197.15 	managed care plans from by the elimination 
197.16 	of: (1) the exemption from the taxes imposed 
197.17 	under Minnesota Statutes, section 297I.05, 
197.18 	subdivision 5, for premiums paid by the state 
197.19 	for medical assistance, general assistance 
197.20 	medical care, and the MinnesotaCare program; 
197.21 	and (2) the exemption of gross revenues 
197.22 	subject to the taxes imposed under Minnesota 
197.23 	Statutes, sections 295.50 to 295.57, for 
197.24 	payments paid by the state for services 
197.25 	provided under medical assistance, general 
197.26 	assistance medical care, and the 
197.27 	MinnesotaCare program. Any increase based 
197.28 	on clause (2) must be reflected in provider 
197.29 	rates paid by the managed care plan unless the 
197.30 	managed care plan is a staff model health plan 
197.31 	company.
197.32 	(b) The commissioner of human services shall 
197.33 	increase by the applicable tax rate in effect 
197.34 	under Minnesota Statutes, section 295.52, the 
197.35 	fee-for-service payments under medical 
198.1 	assistance, general assistance medical care, 
198.2 	and the MinnesotaCare program for services 
198.3 	subject to the hospital, surgical center, or 
198.4 	health care provider taxes under Minnesota 
198.5 	Statutes, sections 295.50 to 295.57, effective 
198.6 	for services rendered on or after January 1, 
198.7 	2004.
198.8 	(c) The commissioner of finance shall transfer 
198.9 	from the health care access fund to the general 
198.10 	fund the following amounts in the fiscal years 
198.11 	indicated: 2004, $16,587,000; 2005, 
198.12 	$46,322,000; 2006, $49,413,000; and 2007, 
198.13 	$58,695,000.
198.14 	(d) Notwithstanding section 14, these 
198.15 	provisions shall not expire.
198.16 	(c) MA Basic Health Care Grants - Elderly 
198.17 	and Disabled

198.18	General
	610,518,000
	743,858,000
	
198.19 	DELAY MEDICAL ASSISTANCE 
198.20 	FEE-FOR-SERVICE - ACUTE CARE. The 
198.21 	following payments in fiscal year 2005 from 
198.22 	the Medicaid Management Information 
198.23 	System that would otherwise have been made 
198.24 	to providers for medical assistance and general 
198.25 	assistance medical care services shall be 
198.26 	delayed and included in the first payment in 
198.27 	fiscal year 2006:
198.28 	(1) for hospitals, the last two payments; and
198.29 	(2) for nonhospital providers, the last payment.
198.30 	This payment delay shall not include payments 
198.31 	to skilled nursing facilities, intermediate care 
198.32 	facilities for mental retardation, prepaid health 
198.33 	plans, home health agencies, personal care 
199.1 	nursing providers, and providers of only 
199.2 	waiver services. The provisions of Minnesota 
199.3 	Statutes, section 16A.124, shall not apply to 
199.4 	these delayed payments. Notwithstanding 
199.5 	section 14, this provision shall not expire.
199.6 	DEAF AND HARD-OF-HEARING 
199.7 	SERVICES. If, after making reasonable 
199.8 	efforts, the service provider for mental health 
199.9 	services to persons who are deaf or hearing 
199.10 	impaired is not able to earn $227,000 through 
199.11 	participation in medical assistance intensive 
199.12 	rehabilitation services in fiscal year 2005, the 
199.13 	commissioner shall transfer $227,000 minus 
199.14 	medical assistance earnings achieved by the 
199.15 	grantee to deaf and hard-of-hearing grants to 
199.16 	enable the provider to continue providing 
199.17 	services to eligible persons.
199.18 	(d) General Assistance Medical Care Grants

199.19	General
	239,861,000
	229,960,000
	
199.20 	(e) Health Care Grants - Other Assistance

199.21	General
	3,067,000
	3,407,000
	
199.22	Health Care Access
	750,000
	750,000
	
199.23 	MINNESOTA PRESCRIPTION DRUG 
199.24 	DEDICATED FUND. Of the general fund 
199.25 	appropriation, $284,000 in fiscal year 2005 is 
199.26 	appropriated to the commissioner for the 
199.27 	prescription drug dedicated fund established 
199.28 	under the prescription drug discount program.
199.29 	DENTAL ACCESS GRANTS 
199.30 	CARRYOVER AUTHORITY. Any unspent 
199.31 	portion of the appropriation from the health 
199.32 	care access fund in fiscal years 2002 and 2003 
199.33 	for dental access grants under Minnesota 
199.34 	Statutes, section 256B.53, shall not cancel but 
200.1 	shall be allowed to carry forward to be spent 
200.2 	in the biennium beginning July 1, 2003, for 
200.3 	these purposes.
200.4 	STOP-LOSS FUND ACCOUNT. The 
200.5 	appropriation to the purchasing alliance 
200.6 	stop-loss fund account established under 
200.7 	Minnesota Statutes, section 256.956, 
200.8 	subdivision 2, for fiscal years 2004 and 2005 
200.9 	shall only be available for claim 
200.10 	reimbursements for qualifying enrollees who 
200.11 	are members of purchasing alliances that meet 
200.12 	the requirements described under Minnesota 
200.13 	Statutes, section 256.956, subdivision 1, 
200.14 	paragraph (f), clauses (1), (2), and (3).
200.15 	(f) Prescription Drug Program

200.16	General
	9,239,000
	9,226,000
	
200.17 	PRESCRIPTION DRUG ASSISTANCE 
200.18 	PROGRAM. Of the general fund 
200.19 	appropriation, $702,000 in fiscal year 2004 
200.20 	and $887,000 in fiscal year 2005 are for the 
200.21 	commissioner to establish and administer the 
200.22 	prescription drug assistance program through 
200.23 	the Minnesota board on aging.
200.24 	REBATE REVENUE RECAPTURE. Any 
200.25 	funds received by the state from a drug 
200.26 	manufacturer due to errors in the 
200.27 	pharmaceutical pricing used by the 
200.28 	manufacturer in determining the prescription 
200.29 	drug rebate are appropriated to the 
200.30 	commissioner to augment funding of the 
200.31 	prescription drug program established in 
200.32 	Minnesota Statutes, section 256.955.

201.1 	Sec. 10. REPEALER.
 201.2 	Laws 2011, First Special Session chapter 9, article 6, section 97, subdivision 6, is repealed 
201.3 	effective the day following final enactment.

201.4 	ARTICLE 10
201.5 	DULUTH REGIONAL EXCHANGE DISTRICT

201.6 	Section 1. [16A.968] DULUTH REGIONAL EXCHANGE DISTRICT 
201.7 	APPROPRIATION BONDS.
201.8 		Subdivision 1.Definitions. (a) The definitions in this subdivision and in section 469.50 
201.9 	apply to this section.
201.10 	(b) "Appropriation bond" or "bond" means a bond, note, or other similar instrument of 
201.11 	the state payable during a biennium from one or more of the following sources:
201.12 	(1) money appropriated by law from the general fund in any biennium for debt service 
201.13 	due with respect to obligations described in subdivision 3;
201.14 	(2) proceeds of the sale of obligations described in subdivision 3;
201.15 	(3) payments received for that purpose under agreements and ancillary arrangements 
201.16 	described in subdivision 2, paragraph (d); and
201.17 	(4) investment earnings on amounts in clauses (1) to (3).
201.18 	(c) "Debt service" means the amount payable in any biennium of principal, premium, if 
201.19 	any, and interest on appropriation bonds, and the fees, charges, and expenses related to the 
201.20 	bonds.
201.21 		Subd. 2.Authorization to issue appropriation bonds. (a) Subject to the limitations of 
201.22 	this subdivision, and upon request by the governing body of the city of Duluth as provided 
201.23 	in section 469.54, subdivision 3, paragraph (f), the commissioner may sell and issue 
201.24 	appropriation bonds of the state under this section for public purposes as provided by law.
201.25 	(b) Proceeds of the appropriation bonds must be credited to a special appropriation 
201.26 	Duluth regional exchange district bond proceeds fund in the state treasury. All income from 
201.27 	investment of the bond proceeds, as estimated by the commissioner, is appropriated to the 
201.28 	commissioner for the payment of principal and interest on the appropriation bonds.
201.29 	(c) Appropriation bonds may be issued in one or more issues or series on the terms and 
201.30 	conditions the commissioner determines to be in the best interests of the state, but the term 
201.31 	on any series of appropriation bonds may not exceed 25 years. The appropriation bonds of 
202.1 	each issue and series thereof shall be dated and bear interest and may be includable in or 
202.2 	excludable from the gross income of the owners for federal income tax purposes.
202.3 	(d) At the time of or in anticipation of issuing the appropriation bonds, and at any time 
202.4 	thereafter, so long as the appropriation bonds are outstanding, the commissioner may enter 
202.5 	into agreements and ancillary arrangements relating to the appropriation bonds, including 
202.6 	but not limited to trust indentures, grant agreements, lease or use agreements, operating 
202.7 	agreements, management agreements, liquidity facilities, remarketing or dealer agreements, 
202.8 	letter of credit agreements, insurance policies, guaranty agreements, reimbursement 
202.9 	agreements, indexing agreements, or interest exchange agreements. Any payments made 
202.10 	or received according to the agreement or ancillary arrangement shall be made from or 
202.11 	deposited as provided in the agreement or ancillary arrangement. The determination of the 
202.12 	commissioner included in an interest exchange agreement that the agreement relates to an 
202.13 	appropriation bond shall be conclusive.
202.14 	(e) The commissioner may enter into written agreements or contracts relating to the 
202.15 	continuing disclosure of information necessary to comply with or facilitate the issuance of 
202.16 	appropriation bonds in accordance with federal securities laws, rules, and regulations, 
202.17 	including Securities and Exchange Commission rules and regulations in Code of Federal 
202.18 	Regulations, title 17, section 240.15c2-12. An agreement may be in the form of covenants 
202.19 	with purchasers and holders of appropriation bonds set forth in the order or resolution 
202.20 	authorizing the issuance of the appropriation bonds or a separate document authorized by 
202.21 	the order or resolution.
202.22 	(f) The appropriation bonds are not subject to chapter 16C.
202.23 		Subd. 3.Appropriation bonds authorization. (a) Appropriation bonds may be sold 
202.24 	and issued in amounts that, in the opinion of the commissioner, are necessary to provide 
202.25 	sufficient funds to the commissioner of employment and economic development under 
202.26 	subdivision 8, not to exceed $97,720,000 net of costs of issuance, for the purposes as 
202.27 	provided under this subdivision, and pay debt service including capitalized interest, costs 
202.28 	of issuance, costs of credit enhancement, or make payments under other agreements entered 
202.29 	into under subdivision 2, paragraph (d).
202.30 	(b) The bonds authorized by this subdivision are for the purposes of financing public 
202.31 	infrastructure projects authorized and approved by the city of Duluth under sections 469.50 
202.32 	to 469.54. No bonds shall be sold under this subdivision until: (1) there has been a request 
202.33 	pursuant to subdivision 2, paragraph (a); and (2) for any parking structure the requirements 
202.34 	in section 469.54, subdivisions 2 and 3, paragraph (a), have been met. Upon certification 
203.1 	of the required qualified expenditures under section 469.54, subdivision 3, paragraph (a), 
203.2 	by a medical business entity, bonds may be sold for a parking structure or structures 
203.3 	benefiting that medical business entity, notwithstanding the status of certified qualified 
203.4 	expenditures for another medical business entity.
203.5 		Subd. 4.Form; procedure. (a) Appropriation bonds may be issued in the form of bonds, 
203.6 	notes, or other similar instruments and in the manner provided in section 16A.672. In the 
203.7 	event that any provision of section 16A.672 conflicts with this section, this section shall 
203.8 	control.
203.9 	(b) Every appropriation bond shall include a conspicuous statement of the limitation 
203.10 	established in subdivision 7.
203.11 	(c) Appropriation bonds may be sold at either public or private sale upon terms as the 
203.12 	commissioner shall determine are not inconsistent with this section and may be sold at any 
203.13 	price or percentage of par value. Any bid received may be rejected.
203.14 	(d) Appropriation bonds must bear interest at a fixed or variable rate.
203.15 	(e) Notwithstanding any other law, appropriation bonds issued under this section shall 
203.16 	be fully negotiable.
203.17 		Subd. 5.Refunding bonds. The commissioner may issue appropriation bonds for the 
203.18 	purpose of refunding any appropriation bonds then outstanding, including the payment of 
203.19 	any redemption premiums on the bonds, any interest accrued or to accrue to the redemption 
203.20 	date, and costs related to the issuance and sale of the refunding bonds. The proceeds of any 
203.21 	refunding bonds may, in the discretion of the commissioner, be applied to the purchase or 
203.22 	payment at maturity of the appropriation bonds to be refunded, to the redemption of the 
203.23 	outstanding appropriation bonds on any redemption date, or to pay interest on the refunding 
203.24 	bonds and may, pending application, be placed in escrow to be applied to the purchase, 
203.25 	payment, retirement, or redemption. Any escrowed proceeds pending use may be invested 
203.26 	and reinvested in obligations that are authorized investments under section 11A.24. The 
203.27 	income earned or realized on the investment may also be applied to the payment of the 
203.28 	appropriation bonds to be refunded or interest or premiums on the refunded appropriation 
203.29 	bonds, or to pay interest on the refunding bonds. After the terms of the escrow have been 
203.30 	fully satisfied, any balance of the proceeds and any investment income may be returned to 
203.31 	the general fund or, if applicable, the special appropriation Duluth regional exchange district 
203.32 	bond proceeds fund for use in any lawful manner. All refunding bonds issued under this 
203.33 	subdivision must be prepared, executed, delivered, and secured by appropriations in the 
203.34 	same manner as the appropriation bonds to be refunded.
204.1 		Subd. 6.Appropriation bonds as legal investments. Any of the following entities may 
204.2 	legally invest any sinking funds, money, or other funds belonging to them or under their 
204.3 	control in any appropriation bonds issued under this section:
204.4 	(1) the state, the investment board, public officers, municipal corporations, political 
204.5 	subdivisions, and public bodies;
204.6 	(2) banks and bankers, savings and loan associations, credit unions, trust companies, 
204.7 	savings banks and institutions, investment companies, insurance companies, insurance 
204.8 	associations, and other persons carrying on a banking or insurance business; and
204.9 	(3) personal representatives, guardians, trustees, and other fiduciaries.
204.10 		Subd. 7.No full faith and credit; state not required to make appropriations. The 
204.11 	appropriation bonds are not public debt of the state, and the full faith, credit, and taxing 
204.12 	powers of the state are not pledged to the payment of the appropriation bonds or to any 
204.13 	payment that the state agrees to make under this section. Appropriation bonds shall not be 
204.14 	obligations paid directly, in whole or in part, from a tax of statewide application on any 
204.15 	class of property, income, transaction, or privilege. Appropriation bonds shall be payable 
204.16 	in each fiscal year only from amounts that the legislature may appropriate for debt service 
204.17 	for any fiscal year, provided that nothing in this section shall be construed to require the 
204.18 	state to appropriate money sufficient to make debt service payments with respect to the 
204.19 	appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and shall no 
204.20 	longer be outstanding on the earlier of (1) the first day of a fiscal year for which the 
204.21 	legislature shall not have appropriated amounts sufficient for debt service, or (2) the date 
204.22 	of final payment of the principal of and interest on the appropriation bonds.
204.23 		Subd. 8.Appropriation of proceeds. The proceeds of appropriation bonds issued under 
204.24 	subdivision 3 and interest credited to the special appropriation Duluth regional exchange 
204.25 	district bond proceeds fund are appropriated as follows:
204.26 	(1) to the commissioner of employment and economic development for a grant or grants 
204.27 	to the city of Duluth for public infrastructure projects as specified in subdivision 3, upon 
204.28 	other terms and conditions that the commissioner of employment and economic development 
204.29 	in the commissioner's sole discretion determines are warranted, with the agreement being 
204.30 	exempt from sections 16B.97 to 16B.991; and
204.31 	(2) to the commissioner for accrued and capitalized interest, nonsalary costs of issuance 
204.32 	of the bonds, costs of credit enhancement of the bonds, and payments under any agreements 
204.33 	entered into under subdivision 2, paragraph (d), each as permitted by state and federal law.
205.1 		Subd. 9.Appropriation for debt service and other purposes. An amount up to 
205.2 	$8,100,000 needed to pay principal and interest on appropriation bonds issued under 
205.3 	subdivision 3 is appropriated each fiscal year from the general fund to the commissioner, 
205.4 	subject to the city of Duluth's entitlement to receive appropriation support payments under 
205.5 	section 469.54, subdivision 3, and further subject to repeal, unallotment under section 
205.6 	16A.152, or cancellation, otherwise as provided in subdivision 7, for deposit into the bond 
205.7 	payments account established for this purpose in the special Duluth regional exchange 
205.8 	district bond proceeds fund. The appropriation is available beginning in fiscal year 2022 
205.9 	and through fiscal year 2055.
205.10 		Subd. 10.Waiver of immunity. The waiver of immunity by the state provided for by 
205.11 	section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any ancillary 
205.12 	contracts to which the commissioner is a party.

205.13 	Sec. 2. [469.50] DEFINITIONS.
205.14 		Subdivision 1.Application. For the purposes of sections 469.50 to 469.54, the terms 
205.15 	defined in this section have the meanings given them.
205.16 		Subd. 2.City. "City" means the city of Duluth.
205.17 		Subd. 3.Commissioner. "Commissioner" means the commissioner of employment and 
205.18 	economic development.
205.19 		Subd. 4.County. "County" means St. Louis County.
205.20 		Subd. 5.District. "District" means the regional exchange district established under 
205.21 	section 469.51.
205.22 		Subd. 6.Medical business entity west. "Medical business entity west" means a nonprofit 
205.23 	integrated health system with two hospitals located within the district.
205.24 		Subd. 7.Medical business entity east. "Medical business entity east" means a nonprofit 
205.25 	health system operating one hospital within the district.
205.26 		Subd. 8.Public infrastructure project. (a) "Public infrastructure project" means a 
205.27 	project identified in section 469.53.
205.28 	(b) A public infrastructure project is not a business subsidy under section 116J.993.

205.29 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
205.30 	city of Duluth and its chief clerical clerk officer timely comply with Minnesota Statutes, 
205.31 	section 645.021, subdivisions 2 and 3.

206.1 	Sec. 3. [469.51] REGIONAL EXCHANGE DISTRICT.
206.2 		Subdivision 1.Establishment. There is established in the city a regional exchange 
206.3 	district. The regional exchange district is bounded by: East 6th Street from North 3rd Avenue 
206.4 	East to North 7th Avenue East; North 7th Avenue East from East 6th Street to East 3rd 
206.5 	Street; East 3rd Street from North 7th Avenue East to North 12th Avenue East; North 12th 
206.6 	Avenue East from East 3rd Street straight through the Duluth Rose Garden to the Lake 
206.7 	Superior waterfront; the Lake Superior waterfront from the Duluth Rose Garden at North 
206.8 	12th Avenue East to Lake Place Park at North 3rd Avenue East; North 3rd Avenue East 
206.9 	from Lake Place Park at the Lake Superior waterfront to East 6th Street, excluding any 
206.10 	property operated as a hotel on the corner of Superior Street and North 3rd Avenue East.
206.11 		Subd. 2.Purpose; findings. The public purposes of the district are to facilitate:
206.12 	(1) repurposing vacant or underutilized private land, or unutilized property interests such 
206.13 	as air rights, for development or redevelopment and to incent significant private investment;
206.14 	(2) redeveloping vacant or underutilized private land to increase its tax-generating and 
206.15 	job-creating potential or to provide housing or meet community needs; and
206.16 	(3) development by the anchoring institutions in the community, such as health care 
206.17 	organizations and institutions of higher education, to create opportunities to improve the 
206.18 	economy of the city and greater Minnesota regions and attract and retain workforce.

206.19 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
206.20 	city of Duluth and its chief clerical clerk officer timely comply with Minnesota Statutes, 
206.21 	section 645.021, subdivisions 2 and 3.

206.22 	Sec. 4. [469.52] CITY POWERS; DUTIES.
206.23 		Subdivision 1.Port authority powers. The city may exercise the powers of a port 
206.24 	authority under sections 469.048 to 469.068 for purposes of implementing sections 469.50 
206.25 	to 469.54.
206.26 		Subd. 2.Steel products. The city must require that a public infrastructure project use 
206.27 	steel products made from iron ore mined from the taconite assistance area as defined in 
206.28 	section 273.1341 to the extent practicable. In determining whether it is practicable, the city 
206.29 	may consider the exceptions to the requirement by Public Law 111-5, section 1605.
206.30 		Subd. 3.City contracts; construction requirements. For all public infrastructure 
206.31 	projects, the city must make reasonable efforts to hire and cause the construction manager 
206.32 	and any subcontractors to employ women and members of minority communities. Goals 
207.1 	for construction contracts must be established in the manner required under the city's 
207.2 	disadvantaged business enterprises plan.
207.3 		Subd. 4.Public bidding exemption. Notwithstanding section 469.068 or any other law 
207.4 	to the contrary, the city need not require competitive bidding with respect to a parking 
207.5 	facility or other public improvements constructed in conjunction with, and directly above 
207.6 	or below, or adjacent and integrally related to, a private development within a district.
207.7 		Subd. 5.Parking structure revenue. Parking facilities or structures constructed must 
207.8 	charge market rate parking fees, except for use separately negotiated between the city and 
207.9 	a church whose parking facility is removed to accommodate construction of a parking ramp.
207.10 		Subd. 6.City utility fund contribution. The city must use the city utility fund to finance 
207.11 	improvements made within the district for sanitary sewer, storm sewer, and water systems 
207.12 	and other related utility improvements. The improvements must be approved by the city. 
207.13 	The total expenditures required under this subdivision and under Laws 1980, chapter 511, 
207.14 	section 1, subdivision 1, paragraph (d), as added by section 7, must equal at least 
207.15 	$10,000,000.

207.16 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
207.17 	city of Duluth and its chief clerical officer timely comply with Minnesota Statutes, section 
207.18 	645.021, subdivisions 2 and 3.

207.19 	Sec. 5. [469.53] REGIONAL EXCHANGE DISTRICT PUBLIC INFRASTRUCTURE 
207.20 	PROJECTS.
207.21 	(a) The following projects shall be eligible for state appropriation support payments 
207.22 	upon approval by the Duluth City Council. Costs may be reimbursed for eligible projects 
207.23 	that begin construction prior to September 30, 2020, but in no case may the total state 
207.24 	payment per project exceed the amount established in this section. Eligible projects include:
207.25 	(1) two levels of expansion to an existing medical district parking ramp and skywalk 
207.26 	replacement in an amount not to exceed $13,010,000, including any land acquisition;
207.27 	(2) a ramp with up to 1,400 new parking stalls and a skywalk to serve medical entity 
207.28 	west in an amount not to exceed $36,400,000, including any land acquisition;
207.29 	(3) extension of 6th Avenue East from 2nd Street to 1st Street in an amount not to exceed 
207.30 	$5,900,000, including any land acquisition;
207.31 	(4) demolition of existing hospital structure for site reuse, to accomplish the purposes 
207.32 	in section 469.51, subdivision 2, in an amount not to exceed $10,000,000;
208.1 	(5) roadway, utility, and site improvements and capacity upgrades to support medical 
208.2 	entity west hospital construction in an amount not to exceed $11,410,000;
208.3 	(6) district energy connections, capacity enhancement, and a pressure pump station in 
208.4 	an amount not to exceed $7,000,000; and
208.5 	(7) a ramp with up to 400 new parking stall to serve medical entity east in an amount 
208.6 	not to exceed $14,000,000.
208.7 	(b) For any public infrastructure project that will not be let by the city for which state 
208.8 	support is sought, the project must proceed and comply with any state and local contracting 
208.9 	requirements otherwise applicable to the city had the city let the project. The city shall have 
208.10 	the right to inspect, upon reasonable notice, the construction contracts and related 
208.11 	documentation for any public infrastructure project for which state support is sought.

208.12 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
208.13 	city of Duluth and its chief clerical officer timely comply with Minnesota Statutes, section 
208.14 	645.021, subdivisions 2 and 3.

208.15 	Sec. 6. [469.54] STATE VALUE CAPTURE.
208.16 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
208.17 	the meanings given them.
208.18 	(b) "Appropriation support payments" means payment from the state to the city pursuant 
208.19 	to subdivision 3.
208.20 	(c) "Construction projects" means expenditures for the constructing, furnishing, 
208.21 	commissioning, and equipping of buildings, ancillary facilities, utilities, parking, and other 
208.22 	improvements that are located within the district.
208.23 	(d) "Expenditures" means expenditures made by a private entity on construction projects, 
208.24 	including, but not limited to:
208.25 	(1) planning, predesign, and design, including architectural, engineering, project 
208.26 	management, and similar services;
208.27 	(2) legal, regulatory, and other compliance costs of the project;
208.28 	(3) land acquisition, demolition of existing improvements, and other site preparation 
208.29 	costs;
208.30 	(4) construction costs, including all materials and supplies of the project; and
208.31 	(5) equipment, furnishings, and fixtures.
209.1 	Expenditures excludes supplies and other items with a useful life of less than a year that 
209.2 	are not used or consumed in constructing improvements to real property or are otherwise 
209.3 	chargeable to capital costs.
209.4 	(e) "Qualified expenditures" means the total expenditures under paragraph (d) since 
209.5 	January 1, 2019, and certified under subdivision 2, and excludes any expenditures for which 
209.6 	reimbursement is or will be sought under section 469.53.
209.7 		Subd. 2.Certification of expenditures. By May 1 of any year, the city must certify to 
209.8 	the commissioner the amount of qualified expenditures, required under subdivision 3, 
209.9 	paragraph (a). The certification must be made in the form that the commissioner prescribes 
209.10 	and include any documentation of and supporting information regarding the qualified 
209.11 	expenditures that the commissioner requires. By September 1 of the year in which a 
209.12 	certification was submitted, the commissioner must confirm or revise the amount of the 
209.13 	qualified expenditures.
209.14 		Subd. 3.Appropriation support payments. (a) Public financing for the construction 
209.15 	of a parking structure for a medical business entity is not available until the commissioner 
209.16 	determines that the medical business entity that would benefit from the parking structure 
209.17 	to be financed has made at least $50,000,000 in qualified expenditures. The requirements 
209.18 	of this paragraph apply to each medical entity individually. Upon certification of the required 
209.19 	amount by either medical business entity, public financing for the construction of parking 
209.20 	structures benefiting that entity is available.
209.21 	(b) No appropriation support payments shall be paid before July 1, 2021. The maximum 
209.22 	appropriation support payment paid in fiscal year 2022 is $3,660,000. The maximum 
209.23 	appropriation support payment in any subsequent fiscal year is limited to no more than 
209.24 	$8,100,000, each subject to paragraph (e). The total amount of appropriation support 
209.25 	payments made under this subdivision is limited to an amount sufficient to finance 
209.26 	$97,720,000 of public infrastructure projects.
209.27 	(c) The city must use the appropriation support payments it receives under this subdivision 
209.28 	for public infrastructure projects, including the cost to finance such projects. The city must 
209.29 	maintain appropriate records to document the use of the funds under this requirement.
209.30 	(d) The commissioner must pay to the city the amount of appropriation support payments 
209.31 	determined under this section for the year by September 1.
209.32 	(e) In lieu of directly receiving the appropriation support payments, the city may elect 
209.33 	to have the state issue appropriation bonds as provided in section 16A.968 to finance up to 
209.34 	$97,720,000 of public infrastructure projects. In the event the state issues appropriation 
210.1 	bonds for these purposes, the amount of appropriation support payments in any year is 
210.2 	reduced by an amount equal to the amount needed from the general fund under section 
210.3 	16A.968, subdivision 8.
210.4 		Subd. 4.Credit for parking revenue. (a) By March 1 of the year following the year in 
210.5 	which the parking facilities or structures are constructed within the district, the city must 
210.6 	certify to the commissioner:
210.7 	(1) the total amount of revenue generated by the parking facilities and structures in the 
210.8 	preceding year; and
210.9 	(2) the total amount necessary for operational and maintenance expenses of the facilities 
210.10 	or structures in the current year.
210.11 	(b) By July 1 of each year thereafter, for a period of 25 years, the commissioner must 
210.12 	confirm or revise the amounts as reported. An amount equal to 50 percent of the amount of 
210.13 	revenue received by the city by the parking structures and facilities in the previous year that 
210.14 	is greater than the amount necessary for operational and maintenance expenses of the 
210.15 	facilities or structures in the current year must be paid by the city to the commissioner of 
210.16 	employment and economic development by September 1 for deposit into the general fund.
210.17 		Subd. 5.Prevailing wage requirement. During the construction, installation, remodeling, 
210.18 	and repairs of any public infrastructure project funded by appropriation support payments, 
210.19 	laborers and mechanics at the site must be paid the prevailing wage rate as defined in section 
210.20 	177.42, subdivision 6, and the public infrastructure project is subject to the requirements 
210.21 	of sections 177.30 and 177.41 to 177.44.
210.22 		Subd. 6.Termination. No aid may be paid under this section after fiscal year 2055.
210.23 		Subd. 7.Appropriation.  An amount sufficient to pay the appropriation support payments 
210.24 	authorized under this section to the city is appropriated to the commissioner from the general 
210.25 	fund.

210.26 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
210.27 	city of Duluth and its chief clerical officer timely comply with Minnesota Statutes, section 
210.28 	645.021, subdivisions 2 and 3.

210.29 	Sec. 7. Laws 1980, chapter 511, section 1, subdivision 1, is amended to read:
210.30 	Section 1. CITY OF DULUTH; SALES AND USE TAX.  Subdivision 1. (a) Minnesota 
210.31 	Statutes, Section 477A.01, Subdivision 18 477A.016, shall not be deemed to prohibit the 
210.32 	city of Duluth from amending its sales and use tax ordinances so as to impose a sales or
211.1 	and use tax at the rate of one percent upon any or all sales or uses which are taxed by the 
211.2 	state of Minnesota pursuant to Minnesota Statutes, Chapter 297A or 297B.
211.3 	(b) Notwithstanding Minnesota Statutes, section 477A.016, or any ordinance, city charter, 
211.4 	or other provision of law, pursuant to the approval of the voters at the election on November 
211.5 	7, 2017, the city of Duluth may impose by ordinance an additional sales and use tax of 
211.6 	one-half of one percent for the purposes specified in paragraphs (c) and (d). The provisions 
211.7 	of Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, 
211.8 	and enforcement of the taxes authorized under this paragraph. The tax may not be imposed 
211.9 	until the city complies with the provisions of article 6, section 34.
211.10 	(c) Revenues received from the tax authorized by paragraph (b) must be used to pay all 
211.11 	or part of the capital and administrative costs of street, curb, gutter, sidewalk, and bridge 
211.12 	improvements, including related lighting and signals in the city of Duluth as outlined in the 
211.13 	Duluth Street Improvement program 2017 as designated August 8, 2017.
211.14 	(d) Revenues from the tax authorized by paragraph (b) must be used to pay all or part 
211.15 	of the improvements listed in paragraph (c) that are located within the district established 
211.16 	under Minnesota Statutes, section 469.51. The total expenditures required under this 
211.17 	paragraph and under Minnesota Statutes, section 469.52, subdivision 6, must equal at least 
211.18 	$10,000,000. The allocation required under this paragraph expires ten years after the date 
211.19 	of initial imposition of the tax.
211.20 	(e) The city of Duluth, pursuant to the approval of the voters at the November 7, 2017, 
211.21 	referendum authorizing the imposition of the taxes in this section, may issue bonds under 
211.22 	Minnesota Statutes, chapter 475, to pay capital and administrative expenses for the projects 
211.23 	described in paragraphs (c) and (d), until the tax terminates as provided in paragraph (f). A 
211.24 	separate election to approve the bonds under Minnesota Statutes, section 475.58, is not 
211.25 	required.
211.26 	(f) The tax authorized under paragraph (b) terminates at the earlier of: (1) 25 years after 
211.27 	the date of initial imposition of the tax; or (2) when the city council determines that sufficient 
211.28 	funds have been raised from the tax to finance the capital and administrative costs of the 
211.29 	improvements described in paragraphs (c) and (d), plus the additional amount needed to 
211.30 	pay the costs related to issuance of bonds under paragraph (e), including interest bonds. 
211.31 	Any funds remaining after completion of the projects specified in paragraphs (c) and (d) 
211.32 	and retirement or redemption of bonds in paragraph (e) shall be placed in the general fund 
211.33 	of the city. The tax imposed under paragraph (b) may expire at an earlier time if the city so 
211.34 	determines by ordinance.

212.1 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
212.2 	city of Duluth and its chief clerical officer timely comply with Minnesota Statutes, section 
212.3 	645.021, subdivisions 2 and 3.

212.4 	ARTICLE 11
212.5 	MISCELLANEOUS

212.6 	Section 1. [270B.162] DISCLOSURE; MINIMUM WAGE STUDY.
212.7 	(a) The commissioner may disclose return information to the Federal Reserve Bank of 
212.8 	Minneapolis to be used only for the purpose of conducting and publishing economic research 
212.9 	studies regarding the impact of minimum wage ordinances adopted by Minneapolis, St. 
212.10 	Paul, and other Minnesota cities.
212.11 	(b) For purposes of this section, the scope of the return information disclosed is limited 
212.12 	to return information for returns filed under chapter 290 and does not include a name, 
212.13 	address, Social Security number, taxpayer identification number, or a federal employer 
212.14 	identification number.
212.15 	(c) The commissioner may enter into a data-sharing agreement only if the agreement 
212.16 	includes the following:
212.17 	(1) the rationale, purpose, and legal authority for the data sharing;
212.18 	(2) a description of the data that may be shared;
212.19 	(3) procedures governing the use of the data;
212.20 	(4) procedures for transmitting the data;
212.21 	(5) procedures for ensuring the security of the data, including protecting the data from 
212.22 	unauthorized access or use;
212.23 	(6) prohibitions on duplication and redisclosure of the data;
212.24 	(7) a requirement that access to the data be limited to persons whose work assignment 
212.25 	requires access to the data;
212.26 	(8) a requirement that published studies must not include the identity of a taxpayer or 
212.27 	any data where the identity of a taxpayer could be associated with any of the data derived 
212.28 	from the taxpayer's return;
212.29 	(9) procedures for retention and destruction of data shared and created, including 
212.30 	requirements that all data must be destroyed following the final publication of any research 
213.1 	studies and that the Federal Reserve Bank of Minneapolis must provide the commissioner 
213.2 	with a certificate of destruction;
213.3 	(10) a requirement that the Federal Reserve Bank of Minneapolis maintain a data audit 
213.4 	trail that records all instances of access and all actions in which data are entered, updated, 
213.5 	or disseminated and identify all persons with access to the data;
213.6 	(11) procedures for arranging and providing for an independent annual audit to verify 
213.7 	the Federal Reserve Bank of Minneapolis's compliance with the data-sharing agreement, 
213.8 	including a requirement that the results of each independent annual audit be submitted to 
213.9 	the chairs and ranking minority members of the legislative committees with jurisdiction 
213.10 	over civil law and data practices by June 30 each year; and
213.11 	(12) a requirement that the results of the minimum wage study be submitted to the chairs 
213.12 	and ranking minority members of the legislative committees with jurisdiction over jobs.
213.13 	(d) The results of an audit are public to the extent the data are not otherwise classified 
213.14 	by law.
213.15 	(e) The commissioner's authority to disclose return information under this section expires 
213.16 	on December 31, 2033.

213.17 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
213.18 	that the first independent annual audit report, as specified in paragraph (c), clause (11), is 
213.19 	not due until June 30, 2020.

213.20 	Sec. 2. Minnesota Statutes 2018, section 270C.57, is amended to read:
213.21 	270C.57 SUCCESSOR LIABILITY OF BUSINESSES.
213.22 		Subdivision 1.Definitions. (a) The following terms used in this section have the following 
213.23 	meanings.
213.24 	(b) "Successor" means a person who directly or indirectly purchases, acquires, is gifted, 
213.25 	or succeeds to the business or stock of goods of any person quitting, selling, or otherwise 
213.26 	disposing of a business or stock of goods. Successor does not include a personal 
213.27 	representative or beneficiary of an estate, a trustee in bankruptcy, a debtor in possession, a 
213.28 	receiver, a secured party, a mortgagee, an assignee of rents, or any other lienholder.
213.29 	(c) "Person" means an individual, partnership, corporation, sole proprietorship, joint 
213.30 	venture, limited liability company, or any other type of business entity or association.
214.1 	(d) "Withhold" means setting aside money or dealing with the payment of consideration 
214.2 	in a manner that denies a transferring business the benefit of the transfer in an amount equal 
214.3 	to the sales and withholding tax liability of the transferring business.
214.4 	(e) "Purchase price" means the consideration paid or to be paid for the transfer by the 
214.5 	successor to the transferring business, and includes amounts paid for tangible property or 
214.6 	intangibles such as leases, licenses, or goodwill. Purchase price also includes debts assumed 
214.7 	or forgiven by the successor, or real or personal property conveyed or to be conveyed by 
214.8 	the successor to the transferring business.
214.9 	(f) "Arm's-length transaction" means a transfer for adequate consideration between 
214.10 	independent parties both acting in their own best interests. If the parties are related to each 
214.11 	other, a rebuttable presumption arises that the transaction is not at arm's length.
214.12 	(g) "Transfer" means every mode, direct or indirect, absolute or conditional, voluntary 
214.13 	or involuntary, of disposing of or parting with a business or an interest in a business, or a 
214.14 	stock of goods, whether by gift or for consideration. Transfer includes a change in the type 
214.15 	of business entity or the name of the business, where one business is discontinued and a 
214.16 	new one started. Transfer also includes the acquisition by a new corporation of the assets 
214.17 	of a prior business in exchange for the stock of the new corporation. Transfer does not 
214.18 	include an assignment for the benefit of creditors, foreclosure or enforcement of a mortgage, 
214.19 	assignment of rents, security interest or lien, sale or disposition in a bankruptcy proceeding, 
214.20 	or sale or disposition by a receiver.
214.21 	(h) "Transfer in bulk" means a transfer, other than in the ordinary course of the transferor's 
214.22 	trade or business, of more than one-half of all the property of a business at all locations 
214.23 	combined, as measured by the value of the property at the time of the transfer.
214.24 	(i) For purposes of this section, "tax" means sales, withholding, and any tax imposed by 
214.25 	chapter 296A.
214.26 		Subd. 2.Bulk transfers; liability of successor; lien. (a) Whenever a business transfers 
214.27 	in bulk to a successor the business assets, and an enforceable lien for unpaid sales and 
214.28 	withholding taxes has been filed against the business by the commissioner under section 
214.29 	270C.63, at least 20 days before taking possession of the assets or paying the purchase price, 
214.30 	the successor shall notify the commissioner of the transfer and the terms and conditions 
214.31 	related to it. The notice must include the tax identification number of the transferring 
214.32 	business. If an agreement to transfer has been entered into, this notice requirement only 
214.33 	applies: (1) if a lien described under this paragraph has been filed prior to the date of the 
214.34 	agreement; or (2) if the date of the transfer is more than 30 days after the date of the 
215.1 	agreement, and a lien described under this paragraph is filed at least 30 days prior to the 
215.2 	date of transfer.
215.3 	(b) If the successor fails to give the notice required in paragraph (a), the successor is 
215.4 	liable for any unpaid sales and withholding taxes, interest, and penalties due from the 
215.5 	transferring business to the extent of the purchase price. If the successor provides the notice 
215.6 	required in paragraph (a) and, within 20 days after receipt of the notice, the commissioner 
215.7 	notifies the successor that tax liabilities exist in addition to those included on the lien or 
215.8 	there are sales and withholding tax returns due but not filed, the successor is, in addition to 
215.9 	being liable for the amounts included on the lien, liable for all other uncontested sales and 
215.10 	withholding taxes, interest, and penalties as stated in the commissioner's notice from the 
215.11 	transferring business to the extent of the purchase price if the successor pays the purchase 
215.12 	price or takes possession of the assets without withholding and remitting the liability to the 
215.13 	commissioner. The successor is liable whether the purchase price is paid or the assets are 
215.14 	transferred prior to or after notification from the commissioner. The commissioner may 
215.15 	also notify the successor that there are no sales or withholding tax liabilities or tax returns 
215.16 	due from the transferring business other than the liabilities included on the lien, and of the 
215.17 	current balance due to satisfy the lien.
215.18 	(c) If, based upon the information available, the commissioner determines that a transfer 
215.19 	was not at arm's length or was a gift, the successor's liability under this section equals the 
215.20 	value of the assets transferred. For purposes of imposing the liability, the value of the 
215.21 	property transferred is presumed, subject to rebuttal, to equal the unpaid sales and withholding
215.22 	taxes, interest, and penalties of the transferring business.
215.23 	(d) In the case of a gift resulting in successor liability under this section, return of the 
215.24 	gifted property by the donee to the donor releases the donee's successor liability.
215.25 	(e) A successor who complies with the requirements of paragraphs (a) and (b) is not 
215.26 	liable for any assessments of sales and withholding taxes of the transferring business made 
215.27 	after the commissioner provides notice to the successor under paragraph (b), except for 
215.28 	taxes assessed on returns filed to comply with the notice. If the commissioner fails to provide 
215.29 	the notice and the 20-day period expires, the successor is not liable for any sales and 
215.30 	withholding taxes of the transferring business other than those included on the lien.
215.31 		Subd. 3.Assessment; abatement; review. The commissioner may assess liability against 
215.32 	a successor business under this section within the time prescribed for collecting the 
215.33 	underlying sales and withholding taxes, interest, and penalties. The assessment is presumed 
215.34 	to be valid, and the burden is upon the successor to show it is incorrect or invalid. An order 
216.1 	assessing successor liability is reviewable administratively under section 270C.35 and is 
216.2 	appealable to Tax Court under chapter 271. The commissioner may abate an assessment if 
216.3 	the successor's failure to give the notice required under this section is due to reasonable 
216.4 	cause. The procedural and appeal provisions under section 270C.34 apply to abatement 
216.5 	requests under this subdivision. Collection remedies available against the transferring 
216.6 	business are available against the successor from the date of assessment of successor liability.
216.7 		Subd. 4.Disclosure. Notification by the commissioner to the successor under subdivision 
216.8 	2, paragraph (b), that the transferring business owes sales and withholding taxes, interest, 
216.9 	and penalties or has returns that are due, or that there are no outstanding liabilities or returns 
216.10 	other than the liabilities included on the lien, or of the current balance due to satisfy the 
216.11 	lien, is not a disclosure violation under chapter 270B.

216.12 	EFFECTIVE DATE. This section is effective for all transfers in bulk that take place 
216.13 	after July 31, 2019.

216.14 	Sec. 3. Minnesota Statutes 2018, section 296A.03, subdivision 2, is amended to read:
216.15 		Subd. 2.Qualifications. (a) A distributor's license shall be issued to any responsible 
216.16 	person who applies and qualifies as a distributor.
216.17 	(b) Upon application to the commissioner, the commissioner must issue a distributor's 
216.18 	license to any person who:
216.19 	(1) receives petroleum products in this state for bulk storage and subsequent distribution 
216.20 	by tank truck;
216.21 	(2) produces, manufactures, or refines petroleum products in this state;
216.22 	(3) holds an unrevoked license as a distributor as of July 1, 1994;
216.23 	(4) (3) imports petroleum products into this state via boat, barge, or pipeline for storage 
216.24 	and subsequent delivery at or further transportation from boat, barge, or pipeline terminals 
216.25 	in this state; or
216.26 	(5) (4) holds a license and performs a function under the motor fuel tax law of an 
216.27 	adjoining state equivalent to that of a distributor under this chapter, who desires to ship or 
216.28 	deliver petroleum products from that state to persons in this state not licensed as distributors 
216.29 	in this state and who agrees to assume with respect to all petroleum products so shipped or 
216.30 	delivered the liabilities of a distributor receiving petroleum products in this state; provided, 
216.31 	however, that any such license shall be issued only for the purpose of permitting such person 
216.32 	to receive in this state the petroleum products so shipped or delivered. Except as herein 
217.1 	provided, all persons licensed as distributors under this clause shall have the same rights 
217.2 	and privileges and be subject to the same duties, requirements, and penalties as other licensed 
217.3 	distributors.
217.4 	(c) The commissioner shall not issue or renew a license to a person otherwise eligible 
217.5 	under this subdivision if the person:
217.6 	(1) has unpaid tax due under this chapter;
217.7 	(2) has unfiled tax returns or reports due under this chapter;
217.8 	(3) has had a license issued pursuant to chapter 296A revoked within the last five years; 
217.9 	or
217.10 	(4) has had an equivalent license issued by another state or Canadian province revoked 
217.11 	within the last five years for failure to pay a tax or file a tax return or report.

217.12 	EFFECTIVE DATE. This section is effective for all licenses with an effective date 
217.13 	after June 30, 2019.

217.14 	Sec. 4. Minnesota Statutes 2018, section 296A.04, is amended by adding a subdivision to 
217.15 	read:
217.16 		Subd. 1a.Issuance and renewal of license. The provisions of section 296A.03, 
217.17 	subdivision 2, paragraph (c), apply to special fuel dealers.

217.18 	EFFECTIVE DATE. This section is effective for all licenses with an effective date 
217.19 	after June 30, 2019.

217.20 	Sec. 5. Minnesota Statutes 2018, section 296A.05, is amended by adding a subdivision to 
217.21 	read:
217.22 		Subd. 1a.Issuance and renewal of license. The provisions of section 296A.03, 
217.23 	subdivision 2, paragraph (c), apply to bulk purchasers.

217.24 	EFFECTIVE DATE. This section is effective for all licenses with an effective date 
217.25 	after June 30, 2019.

217.26 	Sec. 6. Minnesota Statutes 2018, section 296A.06, is amended to read:
217.27 	296A.06 REVOCATION OF LICENSE, PERMIT, OR CERTIFICATE; 
217.28 	SUSPENSION OF LICENSE.
217.29 		Subd. 1.Revocation of license, permit, or certificate. If any person fails to comply 
217.30 	with this chapter or the rules adopted under this chapter, without reasonable cause, the 
218.1 	commissioner may give the person 30 days' notice in writing, specifying the violations, and 
218.2 	stating that based upon such violations the commissioner intends to revoke the person's 
218.3 	license, permit, or certificate. The notice shall also advise the person of the person's right 
218.4 	to contest the revocation under this section and the general procedures for a contested case 
218.5 	hearing under chapter 14. The notice may be served personally or by mail in the manner 
218.6 	prescribed for service of an order of assessment. A license, permit, or certificate is revoked 
218.7 	when the commissioner serves a notice of revocation upon the person after 30 days have 
218.8 	passed following the date of the notice of intent to revoke without the person requesting a 
218.9 	hearing. If a hearing is timely requested and held, the license, permit, or certificate is revoked 
218.10 	after the commissioner serves an order of revocation under section 14.62, subdivision 1.
218.11 		Subd. 2.Suspension of license. (a) Notwithstanding subdivision 1, the license of a 
218.12 	distributor, fuel dealer, or bulk purchaser that has not filed a tax return or report or paid a 
218.13 	delinquent tax or fee within five days after notice and demand by the commissioner is 
218.14 	suspended. The suspension remains in effect until the demanded tax return or report has 
218.15 	been filed and the tax and fees shown on that return or report have been paid. If the 
218.16 	commissioner determines that the failure to file or failure to pay is due to reasonable cause, 
218.17 	then a license must not be suspended, or if suspended, must be reinstated.
218.18 	(b) A licensee whose license is suspended under this subdivision may request a contested 
218.19 	case hearing under chapter 14. Any such hearing must be held within 20 days of the issuance 
218.20 	of the notice and demand issued under paragraph (a), unless the parties agree to a later 
218.21 	hearing date. The administrative law judge's report must be issued within 20 days after the 
218.22 	close of the hearing record, unless the parties agree to a later report issuance date. The 
218.23 	commissioner must issue a final decision within 30 days after receipt of the report of the 
218.24 	administrative law judge and subsequent exceptions and argument under section 14.61. The 
218.25 	suspension imposed under paragraph (a) remains in effect during any contest case hearing 
218.26 	process requested pursuant to this paragraph.

218.27 	EFFECTIVE DATE. This section is effective July 1, 2019.

218.28 	Sec. 7. Minnesota Statutes 2018, section 297F.08, subdivision 8, is amended to read:
218.29 		Subd. 8.Sale of stamps. The commissioner may sell stamps on a credit basis under 
218.30 	conditions prescribed by the commissioner. The commissioner shall sell the stamps at a 
218.31 	price which includes the tax after giving effect to the discount provided in subdivision 7. 
218.32 	The commissioner shall recover the actual costs of the stamps from the distributor. The 
218.33 	commissioner shall annually establish the maximum amount of stamps that may be purchased 
218.34 	each month.

219.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

219.2 	Sec. 8. Minnesota Statutes 2018, section 297F.08, subdivision 9, is amended to read:
219.3 		Subd. 9.Tax stamping machines. The commissioner shall require any person licensed 
219.4 	as a distributor to stamp packages with a tax stamping machine, approved by the 
219.5 	commissioner, which shall be provided by the distributor. The commissioner shall also 
219.6 	supervise and check the operation of the machines and shall provide for the payment of the 
219.7 	tax on any package so stamped, subject to the discount provided in subdivision 7. If the 
219.8 	commissioner finds that a stamping machine is not affixing a legible stamp on the package, 
219.9 	the commissioner may order the distributor to immediately cease the stamping process until 
219.10 	the machine is functioning properly.

219.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

219.12 	Sec. 9. Minnesota Statutes 2018, section 298.225, subdivision 1, is amended to read:
219.13 		Subdivision 1.Guaranteed distribution. (a) Except as provided under paragraph (c), 
219.14 	the distribution of the taconite production tax as provided in section 298.28, subdivisions 
219.15 	3 to 5, 6, paragraph (b), 7, and 8, shall equal the lesser of the following amounts:
219.16 	(1) the amount distributed pursuant to this section and section 298.28, with respect to 
219.17 	1983 production if the production for the year prior to the distribution year is no less than 
219.18 	42,000,000 taxable tons. If the production is less than 42,000,000 taxable tons, the amount 
219.19 	of the distributions shall be reduced proportionately at the rate of two percent for each 
219.20 	1,000,000 tons, or part of 1,000,000 tons by which the production is less than 42,000,000 
219.21 	tons; or
219.22 	(2)(i) for the distributions made pursuant to section 298.28, subdivisions 4, paragraphs 
219.23 	(b) and (c), and 6, paragraph (c), 31.2 percent of the amount distributed pursuant to this 
219.24 	section and section 298.28, with respect to 1983 production;
219.25 	(ii) for the distributions made pursuant to section 298.28, subdivision 5, paragraphs (b) 
219.26 	and (d), 75 percent of the amount distributed pursuant to this section and section 298.28, 
219.27 	with respect to 1983 production provided that the aid guarantee for distributions under 
219.28 	section 298.28, subdivision 5, paragraph (b), shall be reduced by five cents per taxable ton 
219.29 	for production years 2014 and thereafter.
219.30 	(b) The distribution of the taconite production tax as provided in section 298.28, 
219.31 	subdivision 2, shall equal the following amount:
220.1 	(1) if the production for the year prior to the distribution year is at least 42,000,000 
220.2 	taxable tons, the amount distributed pursuant to this section and section 298.28 with respect 
220.3 	to 1999 production; or
220.4 	(2) if the production for the year prior to the distribution year is less than 42,000,000 
220.5 	taxable tons, the amount distributed pursuant to this section and section 298.28 with respect 
220.6 	to 1999 production, reduced proportionately at the rate of two percent for each 1,000,000 
220.7 	tons or part of 1,000,000 tons by which the production is less than 42,000,000 tons.
220.8 	(c) The distribution of the taconite production tax under section 298.28, subdivision 3, 
220.9 	paragraph (a), must equal the amount distributed under 298.28, with respect to 1983 
220.10 	production.

220.11 	EFFECTIVE DATE. This section is effective for distributions in 2020 and thereafter.

220.12 	Sec. 10. Minnesota Statutes 2018, section 298.28, subdivision 3, is amended to read:
220.13 		Subd. 3.Cities; towns. (a) 12.5 cents per taxable ton, less any amount distributed under 
220.14 	subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid account 
220.15 	to be distributed as provided in section 298.282. The amount allocated to the taconite 
220.16 	municipal aid account must be annually increased in the same proportion as the increase in 
220.17 	the implicit price deflator as provided in section 298.24, subdivision 1.
220.18 	(b) An amount must be allocated to towns or cities that is annually certified by the county 
220.19 	auditor of a county containing a taconite tax relief area as defined in section 273.134, 
220.20 	paragraph (b), within which there is (1) an organized township if, as of January 2, 1982, 
220.21 	more than 75 percent of the assessed valuation of the township consists of iron ore or (2) a 
220.22 	city if, as of January 2, 1980, more than 75 percent of the assessed valuation of the city 
220.23 	consists of iron ore.
220.24 	(c) The amount allocated under paragraph (b) will be the portion of a township's or city's 
220.25 	certified levy equal to the proportion of (1) the difference between 50 percent of January 
220.26 	2, 1982, assessed value in the case of a township and 50 percent of the January 2, 1980, 
220.27 	assessed value in the case of a city and its current assessed value to (2) the sum of its current 
220.28 	assessed value plus the difference determined in (1), provided that the amount distributed 
220.29 	shall not exceed $55 per capita in the case of a township or $75 per capita in the case of a 
220.30 	city. For purposes of this limitation, population will be determined according to the 1980 
220.31 	decennial census conducted by the United States Bureau of the Census. If the current assessed 
220.32 	value of the township exceeds 50 percent of the township's January 2, 1982, assessed value, 
220.33 	or if the current assessed value of the city exceeds 50 percent of the city's January 2, 1980, 
221.1 	assessed value, this paragraph shall not apply. For purposes of this paragraph, "assessed 
221.2 	value," when used in reference to years other than 1980 or 1982, means the appropriate net 
221.3 	tax capacities multiplied by 10.2.
221.4 	(d) In addition to other distributions under this subdivision, three cents per taxable ton 
221.5 	for distributions in 2009 must be allocated for distribution to towns that are entirely located 
221.6 	within the taconite tax relief area defined in section 273.134, paragraph (b). For distribution 
221.7 	in 2010 through 2014 and for distribution in 2018 and subsequent years, the three-cent 
221.8 	amount must be annually increased in the same proportion as the increase in the implicit 
221.9 	price deflator as provided in section 298.24, subdivision 1. The amount available under this 
221.10 	paragraph will be distributed to eligible towns on a per capita basis, provided that no town 
221.11 	may receive more than $50,000 in any year under this paragraph. Any amount of the 
221.12 	distribution that exceeds the $50,000 limitation for a town under this paragraph must be 
221.13 	redistributed on a per capita basis among the other eligible towns, to whose distributions 
221.14 	do not exceed $50,000.

221.15 	EFFECTIVE DATE. This section is effective for distributions in 2020 and thereafter.

221.16 	Sec. 11. Minnesota Statutes 2018, section 298.28, subdivision 11, is amended to read:
221.17 		Subd. 11.Remainder. (a) The proceeds of the tax imposed by section 298.24 which 
221.18 	remain after the distributions and payments in subdivisions 2 to 10a, as certified by the 
221.19 	commissioner of revenue, and paragraphs (b), (c), and (d) have been made, together with 
221.20 	interest earned on all money distributed under this section prior to distribution, shall be 
221.21 	divided between the taconite environmental protection fund created in section 298.223 and 
221.22 	the Douglas J. Johnson economic protection trust fund created in section 298.292 as follows: 
221.23 	Two-thirds to the taconite environmental protection fund and one-third to the Douglas J. 
221.24 	Johnson economic protection trust fund. The proceeds shall be placed in the respective 
221.25 	special accounts.
221.26 	(b) There shall be distributed to each city, town, and county the amount that it received 
221.27 	under Minnesota Statutes 1978, section 294.26, in calendar year 1977; provided, however, 
221.28 	that (1) the amount distributed in 1981 to the unorganized territory number 2 of Lake County 
221.29 	and the town of Beaver Bay based on the between-terminal trackage of Erie Mining Company 
221.30 	will be distributed in 1982 and subsequent years to the unorganized territory number 2 of 
221.31 	Lake County and the towns of Beaver Bay and Stony River based on the miles of track of 
221.32 	Erie Mining Company in each taxing district; and (2) a city located within six miles of five 
221.33 	other cities qualifying for a distribution under section 298.282 shall receive a distribution 
221.34 	equal to $5,000 under this paragraph in calendar year 2020 and subsequent years. The 
222.1 	distribution to all other cites and towns receiving a distribution under this paragraph shall 
222.2 	be reduced by the ratio that $5,000 bears to the total aid distribution received by all cities 
222.3 	and towns under this paragraph.
222.4 	(c) There shall be distributed to the Iron Range resources and rehabilitation account the 
222.5 	amounts it received in 1977 under Minnesota Statutes 1978, section 298.22. The amount 
222.6 	distributed under this paragraph shall be expended within or for the benefit of the taconite 
222.7 	assistance area defined in section 273.1341.
222.8 	(d) There shall be distributed to each school district 62 percent of the amount that it 
222.9 	received under Minnesota Statutes 1978, section 294.26, in calendar year 1977.

222.10 	EFFECTIVE DATE. This section is effective for aid distributions in 2020 and 
222.11 	subsequent years.

222.12 	Sec. 12. Minnesota Statutes 2018, section 298.282, subdivision 1, is amended to read:
222.13 		Subdivision 1.Distribution of taconite municipal aid account. The amount deposited 
222.14 	with the county as provided in section 298.28, subdivision 3, must be distributed as provided 
222.15 	by this section among: (1) the municipalities comprisinglocated within a taconite assistance 
222.16 	area under section 273.1341 that meet the criteria of section 273.1341, clause (1) or (2); (2) 
222.17 	a township that contains a state park consisting primarily of an underground iron ore mine; 
222.18 	and (3) a city located within five miles of that state park; and (4) Breitung Township in St. 
222.19 	Louis County, each being referred to in this section as a qualifying municipality. The 
222.20 	distribution to Breitung Township under this subdivision shall be $15,000 annually.

222.21 	EFFECTIVE DATE. This section is effective beginning with distributions in 2020.

222.22 	Sec. 13. Minnesota Statutes 2018, section 353.27, subdivision 3c, is amended to read:
222.23 		Subd. 3c.Former MERF members; member and employer contributions. (a) For 
222.24 	the period July 1, 2015 2019, through December 31, 2031, the member contributions for 
222.25 	former members of the Minneapolis Employees Retirement Fund and by the former 
222.26 	Minneapolis Employees Retirement Fund-covered employing units are governed by this 
222.27 	subdivision.
222.28 	(b) The member contribution for a public employee who was a member of the former 
222.29 	Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75 percent of the salary of 
222.30 	the employee.
223.1 	(c) The employer regular contribution with respect to a public employee who was a 
223.2 	member of the former Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75 
223.3 	percent of the salary of the employee.
223.4 	(d) The annual employer supplemental contribution is the employing unit's share of 
223.5 	$31,000,000. For calendar years 2017 and 2018, the employer supplemental contribution 
223.6 	is the employing unit's share of $21,000,000.
223.7 	(e) Each employing unit's share under paragraph (d) is the amount determined from an 
223.8 	allocation between each employing unit in the portion equal to the unit's employer 
223.9 	supplemental contribution paid or payable under Minnesota Statutes 2012, section 353.50, 
223.10 	during calendar year 2014.
223.11 	(f) The employer supplemental contribution amount under paragraph (d) for calendar 
223.12 	year 2015 2019 must be invoiced by the executive director of the Public Employees 
223.13 	Retirement Association by July 1, 2015. The calendar year 2015 payment is payable in a 
223.14 	single amount on or before September 30, 2015 2019. For subsequent calendar years, the 
223.15 	employer supplemental contribution under paragraph (d) must be invoiced on January 31 
223.16 	of each year and. The employer supplemental contribution is payable in two parts, with the 
223.17 	first half payable on or before July 31 and with the second half payable on or before 
223.18 	December 15. Late payments are payable with interest, compounded annually, at the 
223.19 	applicable rate or rates specified in section 356.59, subdivision 3, per month for each month 
223.20 	or portion of a month that has elapsed after the due date.
223.21 	(g) The employer supplemental contribution under paragraph (d) terminates on December 
223.22 	31, 2031.

223.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

223.24 	Sec. 14. Minnesota Statutes 2018, section 353.505, is amended to read:
223.25 	353.505 STATE CONTRIBUTIONS; FORMER MERF DIVISION.
223.26 	(a) On September 15, 2019, and annually thereafter, the state shall pay to the general 
223.27 	employees retirement plan of the Public Employees Retirement Association, with respect 
223.28 	to the former MERF division, $6,000,000 $16,000,000.
223.29 	(b) On September 15, 2017, and September 15, 2018, the state shall pay to the general 
223.30 	employees retirement plan of the Public Employees Retirement Association, with respect 
223.31 	to the former MERF division, $16,000,000.
223.32 	(c) (b) State contributions under this section end on September 15, 2031.
224.1 	(c) The commissioner of management and budget shall pay the contribution specified 
224.2 	in this section. The amount required is appropriated annually from the general fund to the 
224.3 	commissioner of management and budget.

224.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

224.5 	Sec. 15. Laws 2009, chapter 122, section 3, subdivision 1, is amended to read:
224.6 		Subdivision 1.Establishment. Any two or more of the following municipalities in St. 
224.7 	Louis County may establish, by resolution of their respective governing bodies, the Central 
224.8 	Iron Range Sanitary Sewer District: the cities of Buhl, Chisholm, and Kinney, and the towns
224.9 	town of Balkan and Great Scott. Instead of adopting a resolution, a municipality may hold 
224.10 	a referendum on the question of whether to join the district at a general or special election. 
224.11 	After a municipality has adopted a resolution or held a referendum in which the voters 
224.12 	approved joining the district, the municipality must provide notice to the chief clerical 
224.13 	officer of other municipalities listed. The district is established when the first two 
224.14 	municipalities have notified the other municipalities. Other municipalities may join without 
224.15 	the consent of the member municipalities within 60 days after the district is established. If 
224.16 	the district is established, it also includes the territory occupied by the Minnesota Discovery 
224.17 	Center, formerly Ironworld. The sewer district is under the control and management of the 
224.18 	Central Iron Range Sanitary Sewer Board. The district is established as a public corporation 
224.19 	and political subdivision of the state with perpetual succession and all the rights, powers, 
224.20 	privileges, immunities, and duties granted to or imposed upon a municipal corporation, as 
224.21 	provided in this act.

224.22 	EFFECTIVE DATE; LOCAL APPROVAL. This section is effective the day after 
224.23 	the governing body and chief clerical officer of each municipality that is part of the Central 
224.24 	Iron Range Sanitary Sewer District timely complete their compliance with Minnesota 
224.25 	Statutes, section 645.021, subdivisions 2 and 3.

224.26 	Sec. 16. Laws 2009, chapter 122, section 3, subdivision 2, is amended to read:
224.27 		Subd. 2.Members and selection. The board is composed of members selected as 
224.28 	provided in this subdivision. The town board of each township that joins the district shall 
224.29 	appoint one residentmember to the sewer board. The city council of each city that joins the 
224.30 	district shall appoint members to the sewer board as follows: three members for the city of 
224.31 	Chisholm, two members for the city of Buhl, and one member for the city of Kinney. One 
224.32 	member must be selected by the Iron Range Resources and Rehabilitation Board (IRRRB) 
224.33 	on behalf of Ironworld the Minnesota Discovery Center. Each member of the sewer board:
225.1 	(1) must be a resident of the municipality the member represents, except the member 
225.2 	appointed by the IRRRB;
225.3 	(2) may be a member of the governing body of the municipality appointing the member; 
225.4 	and
225.5 	(3) has one vote.
225.6 	The first terms are as follows: one-third of the members for one year, one-third for two 
225.7 	years, and the remainder for three years, fixed by lot at the district's first meeting; thereafter, 
225.8 	all terms are for three years.

225.9 	EFFECTIVE DATE; LOCAL APPROVAL. This section is effective retroactively 
225.10 	from December 27, 2003, and all appointments of sewer board members made since such 
225.11 	date are ratified and confirmed, the day after the governing body and chief clerical officer 
225.12 	of each municipality that is part of the Central Iron Range Sanitary Sewer District comply 
225.13 	with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

225.14 	Sec. 17. BUDGET RESERVE REDUCTION.
 225.15 	On July 1, 2021, the balance of the budget reserve account established in Minnesota 
225.16 	Statutes, section 16A.152, subdivision 1a, is reduced by $491,369,000.

225.17 	Sec. 18. APPROPRIATION; TAXPAYER ASSISTANCE GRANTS.
 225.18 	(a) $200,000 in fiscal year 2020 and $200,000 in fiscal year 2021 are appropriated from 
225.19 	the general fund to the commissioner of revenue to make grants to one or more nonprofit 
225.20 	organizations, qualifying under section 501(c)(3) of the Internal Revenue Code of 1986, to 
225.21 	coordinate, facilitate, encourage, and aid in the provision of taxpayer assistance services. 
225.22 	These amounts are in addition to any other amounts appropriated by law. Of the amount 
225.23 	appropriated, up to five percent may be used for the administration of the taxpayer assistance 
225.24 	grants program.
225.25 	(b) For purposes of this section, "taxpayer assistance services" means accounting and 
225.26 	tax preparation services provided by volunteers to low-income, elderly, and disadvantaged 
225.27 	Minnesota residents to help them file federal and state income tax returns and Minnesota 
225.28 	property tax refund claims and to provide personal representation before the Department 
225.29 	of Revenue and Internal Revenue Service.

225.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

226.1 	Sec. 19. APPROPRIATION.
 226.2 	$3,000,000 in fiscal year 2020 and $3,000,000 in fiscal year 2021 are appropriated to 
226.3 	the commissioner of revenue to administer this act.

226.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

226.5 	Sec. 20. REPEALER.
 226.6 	(a) Minnesota Statutes 2018, section 297F.08, subdivision 5, is repealed.
226.7 	(b) Minnesota Statutes 2018, sections 296A.03, subdivision 5; 296A.04, subdivision 2; 
226.8 	and 296A.05, subdivision 2, and Minnesota Rules, part 8125.0410, subpart 1, are repealed.

226.9 	EFFECTIVE DATE. Paragraph (a) is effective the day following final enactment. 
226.10 	Paragraph (b) is effective for all licenses with an effective date after June 30, 2019.

226.11 	ARTICLE 12
226.12 	DEPARTMENT OF REVENUE INDIVIDUAL INCOME AND CORPORATE 
226.13 	FRANCHISE TAXES; POLICY CHANGES

226.14 	Section 1. Minnesota Statutes 2018, section 290.0137, is amended to read:
226.15 	290.0137 ACCELERATED RECOGNITION OF CERTAIN INSTALLMENT 
226.16 	SALE GAINS.
226.17 	(a) In the case of a nonresident individual or a person who becomes a nonresident 
226.18 	individual during the tax year, taxable net income shall include the allocable amount realized 
226.19 	upon a sale of the assets of, or any interest in, an S corporation or partnership that operated 
226.20 	in Minnesota during the year of sale, including any income or gain to be recognized in future 
226.21 	years pursuant to an installment sale method of reporting under the Internal Revenue Code.
226.22 	(1) For the purposes of this paragraph, an individual who becomes a nonresident of 
226.23 	Minnesota in any year after an installment sale is required to recognize the full amount of 
226.24 	any income or gain described in this paragraph on the individual's final Minnesota resident 
226.25 	tax return to the extent that such income has not been recognized in a prior year.
226.26 	(2) For the purposes of this section, "realized" has the meaning given in section 1001(b) 
226.27 	of the Internal Revenue Code.
226.28 	(3) For the purposes of this section, "installment sale" means any installment sale under 
226.29 	section 453 of the Internal Revenue Code and any other sale that is reported utilizing a 
226.30 	method of accounting authorized under subchapter E of the Internal Revenue Code that 
226.31 	allows taxpayers to delay reporting or recognizing a realized gain until a future year.
227.1 	(4) For the purposes of this section, "allocable amount" means the full amount to be 
227.2 	apportioned to Minnesota under section 290.191 or 290.20, or the full amount to be assigned 
227.3 	to Minnesota under section 290.17.
227.4 	(b) Notwithstanding paragraph (a), nonresident taxpayers may elect to defer recognizing 
227.5 	unrecognized installment sale gains by making an election under this paragraph. The election 
227.6 	must be filed on a form to be determined or prescribed by the commissioner and must be 
227.7 	filed by the due date of the individual income tax return, including any extension. Electing 
227.8 	taxpayers must make an irrevocable agreement to:
227.9 	(1) file Minnesota tax returns in all subsequent years when gains from the installment 
227.10 	sales are recognized and reported to the Internal Revenue Service;
227.11 	(2) allocate gains to the state of Minnesota as though the gains were realized in the year 
227.12 	of sale under section 290.17, 290.191, or 290.20; and
227.13 	(3) include all relevant federal tax documents reporting the installment sale with 
227.14 	subsequent Minnesota tax returns.
227.15 	(c) Income or gain recognized for Minnesota purposes pursuant to paragraph (a) must 
227.16 	be excluded from taxable net income in any future year that the taxpayer files a Minnesota 
227.17 	tax return to the extent that the income or gain has already been subject to tax pursuant to 
227.18 	paragraph (a).

227.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

227.20 	Sec. 2. Minnesota Statutes 2018, section 290.06, subdivision 2c, is amended to read:
227.21 		Subd. 2c.Schedules of rates for individuals, estates, and trusts. (a) The income taxes 
227.22 	imposed by this chapter upon married individuals filing joint returns and surviving spouses 
227.23 	as defined in section 2(a) of the Internal Revenue Code must be computed by applying to 
227.24 	their taxable net income the following schedule of rates:
227.25 	(1) On the first $35,480, 5.35 percent;
227.26 	(2) On all over $35,480, but not over $140,960, 7.05 percent;
227.27 	(3) On all over $140,960, but not over $250,000, 7.85 percent;
227.28 	(4) On all over $250,000, 9.85 percent.
227.29 	Married individuals filing separate returns, estates, and trusts must compute their income 
227.30 	tax by applying the above rates to their taxable income, except that the income brackets 
227.31 	will be one-half of the above amounts after the adjustment required in subdivision 2d.
228.1 	(b) The income taxes imposed by this chapter upon unmarried individuals must be 
228.2 	computed by applying to taxable net income the following schedule of rates:
228.3 	(1) On the first $24,270, 5.35 percent;
228.4 	(2) On all over $24,270, but not over $79,730, 7.05 percent;
228.5 	(3) On all over $79,730, but not over $150,000, 7.85 percent;
228.6 	(4) On all over $150,000, 9.85 percent.
228.7 	(c) The income taxes imposed by this chapter upon unmarried individuals qualifying as 
228.8 	a head of household as defined in section 2(b) of the Internal Revenue Code must be 
228.9 	computed by applying to taxable net income the following schedule of rates:
228.10 	(1) On the first $29,880, 5.35 percent;
228.11 	(2) On all over $29,880, but not over $120,070, 7.05 percent;
228.12 	(3) On all over $120,070, but not over $200,000, 7.85 percent;
228.13 	(4) On all over $200,000, 9.85 percent.
228.14 	(d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax 
228.15 	of any individual taxpayer whose taxable net income for the taxable year is less than an 
228.16 	amount determined by the commissioner must be computed in accordance with tables 
228.17 	prepared and issued by the commissioner of revenue based on income brackets of not more 
228.18 	than $100. The amount of tax for each bracket shall be computed at the rates set forth in 
228.19 	this subdivision, provided that the commissioner may disregard a fractional part of a dollar 
228.20 	unless it amounts to 50 cents or more, in which case it may be increased to $1.
228.21 	(e) An individual who is not a Minnesota resident for the entire year must compute the 
228.22 	individual's Minnesota income tax as provided in this subdivision. After the application of 
228.23 	the nonrefundable credits provided in this chapter, the tax liability must then be multiplied 
228.24 	by a fraction in which:
228.25 	(1) the numerator is the individual's Minnesota source federal adjusted gross income as 
228.26 	defined in section 62 of the Internal Revenue Code and increased by:
228.27 	(i) the additions required under section sections290.0131, subdivisions 2 and 6 to 11,
228.28 	and 290.0137, paragraph (a); and reduced by
228.29 	(ii) the Minnesota assignable portion of the subtraction for United States government 
228.30 	interest under section 290.0132, subdivision 2, and the subtractions under section sections
229.1 	290.0132, subdivisions 9, 10, 14, 15, 17, and 18, and 290.0137, paragraph (c), after applying 
229.2 	the allocation and assignability provisions of section 290.081, clause (a), or 290.17; and
229.3 	(2) the denominator is the individual's federal adjusted gross income as defined in section 
229.4 	62 of the Internal Revenue Code, increased by:
229.5 	(i) the amounts specified in section additions required under sections290.0131, 
229.6 	subdivisions 2 and 6 to 11, and 290.0137, paragraph (a); and reduced by
229.7 	(ii) the amounts specified in section subtractions under sections290.0132, subdivisions 
229.8 	2, 9, 10, 14, 15, 17, and 18, and 290.0137, paragraph (c).

229.9 	EFFECTIVE DATE. The amendment to paragraph (a) is effective for taxable years 
229.10 	beginning after December 31, 2018. The amendment to paragraph (e) is effective the day 
229.11 	following final enactment.

229.12 	Sec. 3. Minnesota Statutes 2018, section 290.06, subdivision 2d, is amended to read:
229.13 		Subd. 2d.Inflation adjustment of brackets. (a) For taxable years beginning after 
229.14 	December 31, 2013, the minimum and maximum dollar amounts for each rate bracket for 
229.15 	which a tax is imposed in subdivision 2c shall be adjusted for inflation by the percentage 
229.16 	determined under paragraph (b). For the purpose of making the adjustment as provided in 
229.17 	this subdivision all of the rate brackets provided in subdivision 2c shall be the rate brackets 
229.18 	as they existed for taxable years beginning after December 31, 2012, and before January 1, 
229.19 	2014. The rate applicable to any rate bracket must not be changed. The dollar amounts 
229.20 	setting forth the tax shall be adjusted to reflect the changes in the rate brackets. The rate 
229.21 	brackets as adjusted must be rounded to the nearest $10 amount. If the rate bracket ends in 
229.22 	$5, it must be rounded up to the nearest $10 amount.
229.23 	(b) The commissioner shall adjust the rate brackets and by the percentage determined 
229.24 	pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in section 
229.25 	1(f)(3)(B) the word "2012" shall be substituted for the word "1992." For 2014, the 
229.26 	commissioner shall then determine the percent change from the 12 months ending on August 
229.27 	31, 2012, to the 12 months ending on August 31, 2013, and in each subsequent year, from 
229.28 	the 12 months ending on August 31, 2012, to the 12 months ending on August 31 of the 
229.29 	year preceding the taxable year. The commissioner shall determine the rate bracket for 
229.30 	married filing separate returns after this adjustment is done. The rate bracket for married 
229.31 	filing separate must be one-half of the rate bracket for married filing joint. The determination 
229.32 	of the commissioner pursuant to this subdivision shall not be considered a "rule" and shall 
229.33 	not be subject to the Administrative Procedure Act contained in chapter 14.
230.1 	No later than December 15 of each year, the commissioner shall announce the specific 
230.2 	percentage that will be used to adjust the tax rate brackets.

230.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
230.4 	31, 2018.

230.5 	ARTICLE 13
230.6 	DEPARTMENT OF REVENUE INDIVIDUAL INCOME AND CORPORATE 
230.7 	FRANCHISE TAXES; TECHNICAL CHANGES

230.8 	Section 1. Minnesota Statutes 2018, section 289A.38, subdivision 7, is amended to read:
230.9 		Subd. 7.Federal tax changes. (a) If the amount of income, items of tax preference, 
230.10 	deductions, or credits for any year of a taxpayer, or the wages paid by a taxpayer for any 
230.11 	period, as reported to the Internal Revenue Service is changed or corrected by the 
230.12 	commissioner of Internal Revenue or other officer of the United States or other competent 
230.13 	authority, or where a renegotiation of a contract or subcontract with the United States results 
230.14 	in a change in income, items of tax preference, deductions, credits, or withholding tax, or, 
230.15 	in the case of estate tax, where there are adjustments to the taxable estate, the taxpayer shall 
230.16 	report the change or correction or renegotiation results in writing to the commissioner. The 
230.17 	report must be submitted within 180 days after the final determination and must be in the 
230.18 	form of either an amended Minnesota estate, withholding tax, corporate franchise tax, or 
230.19 	income tax return conceding the accuracy of the federal determination or a letter detailing 
230.20 	how the federal determination is incorrect or does not change the Minnesota tax. An amended 
230.21 	Minnesota income tax return must be accompanied by an amended property tax refund 
230.22 	return, if necessary. A taxpayer filing an amended federal tax return must also file a copy 
230.23 	of the amended return with the commissioner of revenue within 180 days after filing the 
230.24 	amended return.
230.25 	(b) For the purposes of paragraph (a), a change or correction includes any case where a 
230.26 	taxpayer reaches a closing agreement or compromise with the Internal Revenue Service 
230.27 	under section 7121 or 7122 of the Internal Revenue Code.

230.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

230.29 	Sec. 2. Minnesota Statutes 2018, section 290.92, subdivision 28, is amended to read:
230.30 		Subd. 28.Payments to horse racing license holders. Effective with payments made 
230.31 	after April 1, 1988, any holder of a license issued by the Minnesota Racing Commission 
230.32 	who makes a payment for personal or professional services to a holder of a class C license 
230.33 	issued by the commission, except an amount paid as a purse, shall deduct from the payment 
231.1 	and withhold 6.25 percent of the amount as Minnesota withholding tax when the amount 
231.2 	paid to that individual by the same person during the calendar year exceeds $600. For 
231.3 	purposes of the provisions of this section, a payment to any person which is subject to 
231.4 	withholding under this subdivision must be treated as if the payment was a wage paid by 
231.5 	an employer to an employee. Every individual who is to receive a payment which is subject 
231.6 	to withholding under this subdivision shall furnish the license holder with a statement, made 
231.7 	under the penalties of perjury, containing the name, address, and Social Security account 
231.8 	number of the person receiving the payment. No withholding is required if the individual 
231.9 	presents a signed certificate from the individual's employer which states that the individual 
231.10 	is an employee of that employer. A nonresident individual who holds a class C license must 
231.11 	be treated as an athlete for purposes of applying the provisions of subdivision 4a and section 
231.12 	290.17, subdivision 2(1)(b)(ii)(a)(2)(ii).

231.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

231.14 	Sec. 3. Minnesota Statutes 2018, section 462D.03, subdivision 2, is amended to read:
231.15 		Subd. 2.Designation of qualified beneficiary. (a) The account holder must designate 
231.16 	a first-time home buyer as the qualified beneficiary of the account by April 15 of the year
231.17 	in a form and manner prescribed by the commissioner following the taxable year in which 
231.18 	the account was established. The account holder may be the qualified beneficiary. The 
231.19 	account holder may change the designated qualified beneficiary at any time, but no more 
231.20 	than one qualified beneficiary may be designated for an account at any one time. For purposes 
231.21 	of the one beneficiary restriction, a married couple qualifies as one beneficiary. Changing 
231.22 	the designated qualified beneficiary of an account does not affect computation of the ten-year 
231.23 	period under section 462D.06, subdivision 2.
231.24 	(b) The commissioner shall establish a process for account holders to notify the state 
231.25 	that permits recording of the account, the account holder or holders, any transfers under 
231.26 	section 462D.04, subdivision 2, and the designated qualified beneficiary for each account. 
231.27 	This may be done upon filing the account holder's income tax return or in any other way 
231.28 	the commissioner determines to be appropriate.

231.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

232.1 	ARTICLE 14
232.2 	DEPARTMENT OF REVENUE; SALES AND USE TAXES; TECHNICAL CHANGES

232.3 	Section 1. Minnesota Statutes 2018, section 297A.68, subdivision 17, is amended to read:
232.4 		Subd. 17.Ships used in interstate commerce; other vessels. Repair, replacement, and 
232.5 	rebuilding parts and materials, and lubricants, for the following are exempt:
232.6 	(1) ships or vessels used or to be used principally in interstate or foreign commerce are 
232.7 	exempt.; and
232.8 	(2) vessels with a gross registered tonnage of at least 3,000 tons are exempt.

232.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

232.10 	Sec. 2. Minnesota Statutes 2018, section 297A.68, subdivision 42, is amended to read:
232.11 		Subd. 42.Qualified data centers. (a) Purchases of enterprise information technology 
232.12 	equipment and computer software for use in a qualified data center, or a qualified refurbished 
232.13 	data center, are exempt, except that computer software maintenance agreements are exempt 
232.14 	for purchases made after June 30, 2013. The tax on purchases exempt under this paragraph 
232.15 	must be imposed and collected as if the rate under section 297A.62, subdivision 1, applied, 
232.16 	and then refunded after June 30, 2013, in the manner provided in section 297A.75. This 
232.17 	exemption includes enterprise information technology equipment and computer software 
232.18 	purchased to replace or upgrade enterprise information technology equipment and computer 
232.19 	software in a qualified data center, or a qualified refurbished data center.
232.20 	(b) Electricity used or consumed in the operation of a qualified data center or qualified 
232.21 	refurbished data center is exempt.
232.22 	(c) For purposes of this subdivision, "qualified data center" means a facility in Minnesota:
232.23 	(1) that is comprised of one or more buildings that consist in the aggregate of at least 
232.24 	25,000 square feet, and that are located on a single parcel or on contiguous parcels, where 
232.25 	the total cost of construction or refurbishment, investment in enterprise information 
232.26 	technology equipment, and computer software is at least $30,000,000 within a 48-month 
232.27 	period. The 48-month period begins no sooner than July 1, 2012, except that costs for 
232.28 	computer software maintenance agreements purchased before July 1, 2013, are not included 
232.29 	in determining if the $30,000,000 threshold has been met;
232.30 	(2) that is constructed or substantially refurbished after June 30, 2012, where 
232.31 	"substantially refurbished" means that at least 25,000 square feet have been rebuilt or 
232.32 	modified, including:
233.1 	(i) installation of enterprise information technology equipment; environmental control, 
233.2 	computer software, and energy efficiency improvements; and
233.3 	(ii) building improvements; and
233.4 	(3) that is used to house enterprise information technology equipment, where the facility 
233.5 	has the following characteristics:
233.6 	(i) uninterruptible power supplies, generator backup power, or both;
233.7 	(ii) sophisticated fire suppression and prevention systems; and
233.8 	(iii) enhanced security. A facility will be considered to have enhanced security if it has 
233.9 	restricted access to the facility to selected personnel; permanent security guards; video 
233.10 	camera surveillance; an electronic system requiring pass codes, keycards, or biometric scans, 
233.11 	such as hand scans and retinal or fingerprint recognition; or similar security features.
233.12 	In determining whether the facility has the required square footage, the square footage 
233.13 	of the following spaces shall be included if the spaces support the operation of enterprise 
233.14 	information technology equipment: office space, meeting space, and mechanical and other 
233.15 	support facilities. For purposes of this subdivision, "computer software" includes, but is not 
233.16 	limited to, software utilized or loaded at a qualified data center or qualified refurbished data 
233.17 	center, including maintenance, licensing, and software customization.
233.18 	(d) For purposes of this subdivision, a "qualified refurbished data center" means an 
233.19 	existing facility that qualifies as a data center under paragraph (c), clauses (2) and (3), but 
233.20 	that is comprised of one or more buildings that consist in the aggregate of at least 25,000 
233.21 	square feet, and that are located on a single parcel or contiguous parcels, where the total 
233.22 	cost of construction or refurbishment, investment in enterprise information technology 
233.23 	equipment, and computer software is at least $50,000,000 within a 24-month period.
233.24 	(e) For purposes of this subdivision, "enterprise information technology equipment" 
233.25 	means computers and equipment supporting computing, networking, or data storage, 
233.26 	including servers and routers. It includes, but is not limited to: cooling systems, cooling 
233.27 	towers, and other temperature control infrastructure; power infrastructure for transformation, 
233.28 	distribution, or management of electricity used for the maintenance and operation of a 
233.29 	qualified data center or qualified refurbished data center, including but not limited to exterior 
233.30 	dedicated business-owned substations, backup power generation systems, battery systems, 
233.31 	and related infrastructure; and racking systems, cabling, and trays, which are necessary for 
233.32 	the maintenance and operation of the qualified data center or qualified refurbished data 
233.33 	center.
234.1 	(f) A qualified data center or qualified refurbished data center may claim the exemptions 
234.2 	in this subdivision for purchases made either within 20 years of the date of its first purchase 
234.3 	qualifying for the exemption under paragraph (a), or by June 30, 2042, whichever is earlier.
234.4 	(g) The purpose of this exemption is to create jobs in the construction and data center 
234.5 	industries.
234.6 	(h) This subdivision is effective for sales and purchases made before July 1, 2042.
234.7 	(i) The commissioner of employment and economic development must certify to the 
234.8 	commissioner of revenue, in a format approved by the commissioner of revenue, when a 
234.9 	qualified data center has met the requirements under paragraph (c) or a qualified refurbished 
234.10 	data center has met the requirements under paragraph (d). The certification must provide 
234.11 	the following information regarding each qualified data center or qualified refurbished data 
234.12 	center:
234.13 	(1) the total square footage amount;
234.14 	(2) the total amount of construction or refurbishment costs and the total amount of 
234.15 	qualifying investments in enterprise information technology equipment and computer 
234.16 	software; and
234.17 	(3) the beginning and ending of the applicable period under either paragraph (c) or (d) 
234.18 	in which the qualifying expenditures and purchases under clause (2) were made, but in no 
234.19 	case shall the period begin before July 1, 2012; and
234.20 	(4) the date upon which the qualified data center first met the requirements under 
234.21 	paragraph (c) or a qualified refurbished data center first met the requirements under paragraph 
234.22 	(d).
234.23 	(j) Any refund for sales tax paid on qualifying purchases under this subdivision must 
234.24 	not be issued unless the commissioner of revenue has received the certification required 
234.25 	under paragraph (i) either from issued by the commissioner of employment and economic 
234.26 	development or the qualified data center or qualified refurbished data center claiming the 
234.27 	refund; and.
234.28 	(k) The commissioner of employment and economic development must annually notify 
234.29 	the commissioner of revenue of the qualified data centers that are projected to meet the 
234.30 	requirements under paragraph (c) and the qualified refurbished data centers that are projected 
234.31 	to meet the requirements under paragraph (d) in each of the next four years. The notification 
234.32 	must provide the information required under paragraph (i), clauses (1) to (3) (4), for each 
234.33 	qualified data center or qualified refurbished data center.

235.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

235.2 	Sec. 3. Minnesota Statutes 2018, section 297A.68, subdivision 44, is amended to read:
235.3 		Subd. 44.Greater Minnesota business expansions. (a) Purchases and use of tangible 
235.4 	personal property or taxable services by a qualified business, as defined in section 116J.8738,
235.5 	are exempt if:
235.6 	(1) the commissioner of employment and economic development certifies to the 
235.7 	commissioner of revenue, in a format approved by the commissioner of revenue, that the 
235.8 	qualified business meets the requirements under section 116J.8738;
235.9 	(2) the business subsidy agreement provides that the exemption under this subdivision 
235.10 	applies;
235.11 	(2) (3) the property or services are primarily used or consumed at the facility in greater 
235.12 	Minnesota identified in the business subsidy agreement; and
235.13 	(3) (4) the purchase was made and delivery received during the duration of the 
235.14 	certification of the business as a qualified business under section 116J.8738 business subsidy 
235.15 	agreement.
235.16 	(b) Purchase and use of construction materials and supplies used or consumed in, and 
235.17 	equipment incorporated into, the construction of improvements to real property in greater 
235.18 	Minnesota are exempt if the improvements after completion of construction are to be used 
235.19 	in the conduct of the trade or business of the qualified business, as defined in section 
235.20 	116J.8738 and the commissioner of employment and economic development certifies to 
235.21 	the commissioner of revenue, in a format approved by the commissioner of revenue, that 
235.22 	the qualified business meets the requirements under section 116J.8738. This exemption 
235.23 	applies regardless of whether the purchases are made by the business or a contractor.
235.24 	(c) The exemptions under this subdivision apply to a local sales and use tax.
235.25 	(d) The tax on purchases imposed under this subdivision must be imposed and collected 
235.26 	as if the rate under section 297A.62 applied, and then refunded in the manner provided in 
235.27 	section 297A.75. The total amount refunded for a facility over the certification period is 
235.28 	limited to the amount listed in the business subsidy agreement. No more than $7,000,000 
235.29 	may be refunded in a fiscal year for all purchases under this subdivision. Refunds must be 
235.30 	allocated on a first-come, first-served basis. If more than $7,000,000 of eligible claims are 
235.31 	made in a fiscal year, claims by qualified businesses carry over to the next fiscal year, and 
235.32 	the commissioner of revenue must first allocate refunds to qualified businesses eligible for 
235.33 	a refund in the preceding fiscal year. Any portion of the balance of funds allocated for 
236.1 	refunds under this paragraph does not cancel and shall be carried forward to and available 
236.2 	for refunds in subsequent fiscal years. Notwithstanding section 297A.75, subdivision 4, for 
236.3 	an eligible refund claim that carries over to a subsequent fiscal year, the interest on the 
236.4 	amount carried over must be paid on the refund no sooner than from 90 days after July 1 
236.5 	of the fiscal year in which funds are available for the eligible claim.

236.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

236.7 	Sec. 4. Minnesota Statutes 2018, section 297A.71, subdivision 45, is amended to read:
236.8 		Subd. 45.Biopharmaceutical manufacturing facility. (a) Materials and supplies used 
236.9 	or consumed in, capital equipment incorporated into, and privately owned infrastructure in 
236.10 	support of the construction, improvement, or expansion of a biopharmaceutical manufacturing 
236.11 	facility in the state are exempt if the commissioner of employment and economic 
236.12 	development certifies to the commissioner of revenue that the following criteria are met:
236.13 	(1) the facility is used for the manufacturing of biologics;
236.14 	(2) the total capital investment made at the facility exceeds $50,000,000; and
236.15 	(3) the facility creates and maintains at least 190 full-time equivalent positions at the 
236.16 	facility. These positions must be new jobs in Minnesota and not the result of relocating jobs 
236.17 	that currently exist in Minnesota.
236.18 	(b) The tax must be imposed and collected as if the rate under section 297A.62 applied, 
236.19 	and refunded in the manner provided in section 297A.75.
236.20 	(c) To be eligible for a refund, the owner of the biopharmaceutical manufacturing facility 
236.21 	must:
236.22 	(1) initially apply to the Department commissioner of employment and economic 
236.23 	development for certification no later than one year from the final completion date of 
236.24 	construction, improvement, or expansion of the facility; and
236.25 	(2) for each year that the owner of the biopharmaceutical manufacturing facility applies 
236.26 	for a refund, the owner commissioner of revenue must have received written certification 
236.27 	from the Department commissioner of employment and economic development that the 
236.28 	facility has met the criteria of paragraph (a).
236.29 	(d) The refund is to be paid annually at a rate of 25 percent of the total allowable refund 
236.30 	payable to date, with the commissioner making annual payments of the remaining refund 
236.31 	until all of the refund has been paid.
237.1 	(e) For purposes of this subdivision, "biopharmaceutical" and "biologics" are 
237.2 	interchangeable and mean medical drugs or medicinal preparations produced using 
237.3 	technology that uses biological systems, living organisms, or derivatives of living organisms 
237.4 	to make or modify products or processes for specific use. The medical drugs or medicinal 
237.5 	preparations include but are not limited to proteins, antibodies, nucleic acids, and vaccines.

237.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

237.7 	Sec. 5. Minnesota Statutes 2018, section 297A.77, is amended by adding a subdivision to 
237.8 	read:
237.9 		Subd. 5.Records must be kept. Every person liable for any tax imposed by this chapter, 
237.10 	or for the collection thereof, shall keep such records, render such statements, make such 
237.11 	returns, and comply with such rules, as the commissioner may from time to time prescribe.

237.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

237.13 	ARTICLE 15
237.14 	DEPARTMENT OF REVENUE; TOBACCO TAXES; TECHNICAL CHANGES

237.15 	Section 1. Minnesota Statutes 2018, section 297F.01, subdivision 19, is amended to read:
237.16 		Subd. 19.Tobacco products. (a) "Tobacco products" means any product containing, 
237.17 	made, or derived from tobacco that is intended for human consumption, whether chewed, 
237.18 	smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, or 
237.19 	any component, part, or accessory of a tobacco product, including, but not limited to, cigars; 
237.20 	cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other smoking 
237.21 	tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing 
237.22 	tobacco; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds 
237.23 	and forms of tobacco; but does not include cigarettes as defined in this section. Tobacco 
237.24 	products includes nicotine solution products. Tobacco products excludes any tobacco product 
237.25 	that has been approved by the United States Food and Drug Administration for sale as a 
237.26 	tobacco cessation product, as a tobacco dependence product, or for other medical purposes, 
237.27 	and is being marketed and sold solely for such an approved purpose.
237.28 	(b) Except for the imposition of tax under section 297F.05, subdivisions 3 and 4, tobacco 
237.29 	products includes a premium cigar, as defined in subdivision 13a.

237.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

238.1 	Sec. 2. Minnesota Statutes 2018, section 297F.01, is amended by adding a subdivision to 
238.2 	read:
238.3 		Subd. 22b.Nicotine solution products. (a) "Nicotine solution products" means any 
238.4 	cartridge, bottle, or other package that contains nicotine made or derived from tobacco, that 
238.5 	is in a solution that is consumed, or meant to be consumed, through the use of a heating 
238.6 	element, power source, electronic circuit, or other electronic, chemical, or mechanical means 
238.7 	that produces vapor or aerosol. This paragraph expires December 31, 2019.
238.8 	(b) Beginning January 1, 2020, "nicotine solution products" means any cartridge, bottle, 
238.9 	or other package that contains nicotine, including nicotine made or derived from tobacco 
238.10 	or sources other than tobacco, that is in a solution that is consumed, or meant to be consumed, 
238.11 	through the use of a heating element, power source, electronic circuit, or other electronic, 
238.12 	chemical, or mechanical means that produces vapor or aerosol.
238.13 	(c) Nicotine solution products includes any electronic cigarette, electronic cigar, electronic 
238.14 	cigarillo, electronic pipe, or similar product or device, and any batteries, heating elements, 
238.15 	or other components, parts, or accessories sold with and meant to be used in the consumption 
238.16 	of a solution containing nicotine.

238.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

238.18 	Sec. 3. Minnesota Statutes 2018, section 297F.01, subdivision 23, is amended to read:
238.19 		Subd. 23.Wholesale sales price. (a) "Wholesale sales price" means the price at which 
238.20 	a distributor purchases a tobacco product.
238.21 	(b) When a distributor sells a cartridge, bottle, or other package of a solution containing 
238.22 	nicotine that is part of a kit that also includes a product, device, component, part, or accessory 
238.23 	described in subdivision 22b:
238.24 	(1) the wholesale sales price is the price at which the distributor purchases the kit; except 
238.25 	that
238.26 	(2) if the distributor also separately sells the same package of solution containing nicotine 
238.27 	that is sold with the kit and can isolate the cost of the package of solution containing nicotine, 
238.28 	then the wholesale sales price includes only the price at which the distributor separately 
238.29 	purchases the package of the solution containing nicotine and any taxes, charges, and costs 
238.30 	listed in paragraph (c).
238.31 	(c) Wholesale sales price includes the applicable federal excise tax, freight charges, or 
238.32 	packaging costs, regardless of whether they were included in the purchase price.

239.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

239.2 	ARTICLE 16
239.3 	MINNESOTACARE; TECHNICAL CHANGES

239.4 	Section 1. Minnesota Statutes 2018, section 295.50, is amended by adding a subdivision 
239.5 	to read:
239.6 		Subd. 2b.Emergency medical reasons. "Emergency medical reasons" means a public 
239.7 	health emergency declaration pursuant to United States Code, title 42, section 247d; a 
239.8 	national security or peacetime emergency declared by the governor pursuant to section 
239.9 	12.31; or a situation involving an action by the commissioner of health pursuant to section 
239.10 	144.4197, 144.4198, or 151.37, subdivisions 2, paragraph (b), and 10, except that, for 
239.11 	purposes of this subdivision, a drug shortage not caused by a public health emergency shall 
239.12 	not constitute an emergency medical reason.

239.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

239.14 	Sec. 2. Minnesota Statutes 2018, section 295.50, subdivision 3, is amended to read:
239.15 		Subd. 3.Gross revenues. "Gross revenues" are total amounts received in money or 
239.16 	otherwise by:
239.17 	(1) a hospital for patient services;
239.18 	(2) a surgical center for patient services;
239.19 	(3) a health care provider, other than a staff model health carrier plan company, for 
239.20 	patient services;
239.21 	(4) a wholesale drug distributor for sale or distribution of legend drugs that are delivered 
239.22 	in Minnesota by the wholesale drug distributor, by common carrier, or by mail, unless the 
239.23 	legend drugs are delivered to another wholesale drug distributor who sells legend drugs 
239.24 	exclusively at wholesale. Legend drugs do not include nutritional products as defined in 
239.25 	Minnesota Rules, part 9505.0325, and blood and blood components; and
239.26 	(5) a staff model health plan company as gross premiums for enrollees, co-payments, 
239.27 	deductibles, coinsurance, and fees for patient services.

239.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

239.29 	Sec. 3. Minnesota Statutes 2018, section 295.50, subdivision 4, is amended to read:
239.30 		Subd. 4.Health care provider. (a) "Health care provider" means:
240.1 	(1) a person whose health care occupation is regulated or required to be regulated by 
240.2 	the state of Minnesota furnishing any or all of the following goods or services directly to a 
240.3 	patient or consumer: medical, surgical, optical, visual, dental, hearing, nursing services, 
240.4 	drugs, laboratory, diagnostic or therapeutic services;
240.5 	(2) a person who provides goods and services not listed in clause (1) that qualify for 
240.6 	reimbursement under the medical assistance program provided under chapter 256B;
240.7 	(3) a staff model health plan company;
240.8 	(4) an ambulance service required to be licensed; or
240.9 	(5) a person who sells or repairs hearing aids and related equipment or prescription 
240.10 	eyewear.; or
240.11 	(6) a person providing patient services, who does not otherwise meet the definition of 
240.12 	health care provider and is not specifically excluded in clause (b), who employs or contracts 
240.13 	with a health care provider as defined in clauses (1) to (5) to perform, supervise, otherwise 
240.14 	oversee, or consult with regarding patient services.
240.15 	(b) Health care provider does not include:
240.16 	(1) hospitals; medical supplies distributors, except as specified under paragraph (a), 
240.17 	clause (5); nursing homes licensed under chapter 144A or licensed in any other jurisdiction; 
240.18 	wholesale drug distributors; pharmacies; surgical centers; bus and taxicab transportation, 
240.19 	or any other providers of transportation services other than ambulance services required to 
240.20 	be licensed; supervised living facilities for persons with developmental disabilities, licensed 
240.21 	under Minnesota Rules, parts 4665.0100 to 4665.9900; housing with services establishments 
240.22 	required to be registered under chapter 144D; board and lodging establishments providing 
240.23 	only custodial services that are licensed under chapter 157 and registered under section 
240.24 	157.17 to provide supportive services or health supervision services; adult foster homes as 
240.25 	defined in Minnesota Rules, part 9555.5105; day training and habilitation services for adults 
240.26 	with developmental disabilities as defined in section 252.41, subdivision 3; boarding care 
240.27 	homes, as defined in Minnesota Rules, part 4655.0100; and adult day care centers as defined 
240.28 	in Minnesota Rules, part 9555.9600;
240.29 	(2) home health agencies as defined in Minnesota Rules, part 9505.0175, subpart 15; a 
240.30 	person providing personal care services and supervision of personal care services as defined 
240.31 	in Minnesota Rules, part 9505.0335; a person providing home care nursing services as 
240.32 	defined in Minnesota Rules, part 9505.0360; and home care providers required to be licensed 
240.33 	under chapter 144A for home care services provided under chapter 144A;
241.1 	(3) a person who employs health care providers solely for the purpose of providing 
241.2 	patient services to its employees;
241.3 	(4) an educational institution that employs health care providers solely for the purpose 
241.4 	of providing patient services to its students if the institution does not receive fee for service 
241.5 	payments or payments for extended coverage; and
241.6 	(5) a person who receives all payments for patient services from health care providers, 
241.7 	surgical centers, or hospitals for goods and services that are taxable to the paying health 
241.8 	care providers, surgical centers, or hospitals, as provided under section 295.53, subdivision 
241.9 	1, paragraph (b), clause (3) or (4), or from a source of funds that is exempt from tax under 
241.10 	this chapter.

241.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

241.12 	Sec. 4. Minnesota Statutes 2018, section 295.50, is amended by adding a subdivision to 
241.13 	read:
241.14 		Subd. 7a.Manufacturer. "Manufacturer" has the meaning provided in section 151.01, 
241.15 	subdivision 14a.

241.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

241.17 	Sec. 5. Minnesota Statutes 2018, section 295.50, subdivision 9b, is amended to read:
241.18 		Subd. 9b.Patient services. (a) "Patient services" means inpatient and outpatient services 
241.19 	and other goods and services provided by hospitals, surgical centers, or health care providers. 
241.20 	They include the following health care goods and services provided to a patient or consumer:
241.21 	(1) bed and board;
241.22 	(2) nursing services and other related services;
241.23 	(3) use of hospitals, surgical centers, or health care provider facilities;
241.24 	(4) medical social services;
241.25 	(5) drugs, biologicals, supplies, appliances, and equipment;
241.26 	(6) other diagnostic or therapeutic items or services;
241.27 	(7) medical or surgical services;
241.28 	(8) items and services furnished to ambulatory patients not requiring emergency care; 
241.29 	and
242.1 	(9) emergency services.
242.2 	(b) "Patient services" does not include:
242.3 	(1) services provided to nursing homes licensed under chapter 144A;
242.4 	(2) examinations for purposes of utilization reviews, insurance claims or eligibility, 
242.5 	litigation, and employment, including reviews of medical records for those purposes;
242.6 	(3) services provided to and by community residential mental health facilities licensed 
242.7 	under Minnesota Rules, parts 9520.0500 to 9520.0670, and to and by residential treatment 
242.8 	programs for children with severe emotional disturbance licensed or certified under chapter 
242.9 	245A;
242.10 	(4) services provided to and by community support programs and family community 
242.11 	support programs approved under Minnesota Rules, parts 9535.1700 to 9535.1760, or 
242.12 	certified as mental health rehabilitative services under chapter 256B; under the following 
242.13 	programs: day treatment services as defined in section 245.462, subdivision 8; assertive 
242.14 	community treatment as described in section 256B.0622; adult rehabilitative mental health 
242.15 	services as described in section 256B.0623; adult crisis response services as described in 
242.16 	section 256B.0624; children's therapeutic services and supports as described in section 
242.17 	256B.0943; and children's mental health crisis response services as described in section 
242.18 	256B.0944;
242.19 	(5) services provided to and by community mental health centers as defined in section 
242.20 	245.62, subdivision 2;
242.21 	(6) services provided to and by assisted living programs and congregate housing 
242.22 	programs;
242.23 	(7) hospice care services;
242.24 	(8) home and community-based waivered services under sections 256B.0915, 256B.49, 
242.25 	and 256B.501;
242.26 	(9) targeted case management services under sections 256B.0621; 256B.0625, 
242.27 	subdivisions 20, 20a, 33, and 44; and 256B.094; and
242.28 	(10) services provided to the following: supervised living facilities for persons with 
242.29 	developmental disabilities licensed under Minnesota Rules, parts 4665.0100 to 4665.9900; 
242.30 	housing with services establishments required to be registered under chapter 144D; board 
242.31 	and lodging establishments providing only custodial services that are licensed under chapter 
242.32 	157 and registered under section 157.17 to provide supportive services or health supervision 
243.1 	services; adult foster homes as defined in Minnesota Rules, part 9555.5105; day training 
243.2 	and habilitation services for adults with developmental disabilities as defined in section 
243.3 	252.41, subdivision 3; boarding care homes as defined in Minnesota Rules, part 4655.0100; 
243.4 	adult day care services as defined in section 245A.02, subdivision 2a; and home health 
243.5 	agencies as defined in Minnesota Rules, part 9505.0175, subpart 15, or licensed under 
243.6 	chapter 144A.

243.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

243.8 	Sec. 6. Minnesota Statutes 2018, section 295.50, is amended by adding a subdivision to 
243.9 	read:
243.10 		Subd. 10c.Pharmacy benefits manager. "Pharmacy benefits manager" means an entity 
243.11 	that performs pharmacy benefits management.

243.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

243.13 	Sec. 7. Minnesota Statutes 2018, section 295.50, is amended by adding a subdivision to 
243.14 	read:
243.15 		Subd. 13a.Third-party purchaser of health care services. "Third-party purchaser of 
243.16 	health care services" includes but is not limited to a health carrier or community integrated 
243.17 	service network that pays for health care services on behalf of patients or that reimburses, 
243.18 	indemnifies, compensates, or otherwise insures patients for health care services.

243.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

243.20 	Sec. 8. Minnesota Statutes 2018, section 295.50, subdivision 14, is amended to read:
243.21 		Subd. 14.Wholesale drug distributor. "Wholesale drug distributor" means a wholesale 
243.22 	drug distributor required to be licensed under sections 151.42 to 151.51. any person engaged 
243.23 	in wholesale drug distribution including but not limited to manufacturers; repackagers; 
243.24 	own-label distributors; jobbers; brokers; warehouses, including manufacturers' and 
243.25 	distributors' warehouses, chain drug warehouses, and wholesale drug warehouses; 
243.26 	independent wholesale drug traders; and pharmacies that conduct wholesale drug distribution. 
243.27 	A wholesale drug distributor does not include a common carrier or individual hired primarily 
243.28 	to transport legend drugs.

243.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

244.1 	Sec. 9. Minnesota Statutes 2018, section 295.50, subdivision 15, is amended to read:
244.2 		Subd. 15.Legend drug. "Legend drug" means a drug that is required by federal law to 
244.3 	bear one of the following statements: "Caution: Federal law prohibits dispensing without 
244.4 	prescription" or "Rx only." Legend drugs do not include nutritional products as defined in 
244.5 	Minnesota Rules, part 9505.0325, subpart 1, and blood and blood components.

244.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

244.7 	Sec. 10. Minnesota Statutes 2018, section 295.50, is amended by adding a subdivision to 
244.8 	read:
244.9 		Subd. 16.Wholesale drug distribution. "Wholesale drug distribution" means the sale 
244.10 	or distribution of legend drugs to a person other than a consumer or patient, but does not 
244.11 	include:
244.12 	(1) a sale between a division, subsidiary, parent, affiliated, or related company under 
244.13 	the common ownership and control of a corporate entity;
244.14 	(2) the purchase or other acquisition, by a hospital or other health care entity that is a 
244.15 	member of a group purchasing organization, of a legend drug for its own use from the 
244.16 	organization or from other hospitals or health care entities that are members of such 
244.17 	organizations;
244.18 	(3) the sale, purchase, or trade of a legend drug by a charitable organization described 
244.19 	in section 501(c)(3) of the Internal Revenue Code of 1986, as amended through December 
244.20 	31, 1988, to a nonprofit affiliate of the organization to the extent otherwise permitted by 
244.21 	law;
244.22 	(4) the sale, purchase, or trade of a legend drug among hospitals or other health care 
244.23 	entities that are under common control;
244.24 	(5) the sale, purchase, or trade of a legend drug for emergency medical reasons;
244.25 	(6) the transfer of legend drugs by a retail pharmacy to another retail pharmacy to alleviate 
244.26 	a temporary shortage; or
244.27 	(7) the distribution of legend drug samples by manufacturer representatives.

244.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

245.1 	Sec. 11. Minnesota Statutes 2018, section 295.53, subdivision 1, is amended to read:
245.2 		Subdivision 1.Exclusions and Exemptions. (a) The following payments are excluded 
245.3 	from the gross revenues subject to the hospital, surgical center, or health care provider taxes 
245.4 	under sections 295.50 to 295.59:
245.5 	(1) payments received for services provided under the Medicare program, including 
245.6 	payments received from the government, and organizations governed by sections 1833 and 
245.7 	1876 of title XVIII of the federal Social Security Act, United States Code, title 42, section 
245.8 	1395, and enrollee deductibles, coinsurance, and co-payments, whether paid by the Medicare 
245.9 	enrollee or by a Medicare supplemental coverage as defined in section 62A.011, subdivision 
245.10 	3, clause (10), or by Medicaid payments under title XIX of the federal Social Security Act. 
245.11 	Payments for services not covered by Medicare are taxable;
245.12 	(2) payments received for home health care services;
245.13 	(3) payments received from hospitals or surgical centers for goods and services on which 
245.14 	liability for tax is imposed under section 295.52 or the source of funds for the payment is 
245.15 	exempt under clause (1), (7), (10), or (14);
245.16 	(4) payments received from health care providers for goods and services on which 
245.17 	liability for tax is imposed under this chapter or the source of funds for the payment is 
245.18 	exempt under clause (1), (7), (10), or (14);
245.19 	(5) amounts paid for legend drugs, other than nutritional products and blood and blood 
245.20 	components, to a wholesale drug distributor who is subject to tax under section 295.52, 
245.21 	subdivision 3, reduced by reimbursements received for legend drugs otherwise exempt 
245.22 	under this chapter;
245.23 	(6) (1) payments received by a health care provider or the wholly owned subsidiary of 
245.24 	a health care provider for care provided outside Minnesota;
245.25 	(7) payments received from the chemical dependency fund under chapter 254B;
245.26 	(8) payments received in the nature of charitable donations that are not designated for 
245.27 	providing patient services to a specific individual or group;
245.28 	(9) payments received for providing patient services incurred through a formal program 
245.29 	of health care research conducted in conformity with federal regulations governing research 
245.30 	on human subjects. Payments received from patients or from other persons paying on behalf 
245.31 	of the patients are subject to tax;
246.1 	(10) payments received from any governmental agency for services benefiting the public, 
246.2 	not including payments made by the government in its capacity as an employer or insurer 
246.3 	or payments made by the government for services provided under the MinnesotaCare 
246.4 	program or the medical assistance program governed by title XIX of the federal Social 
246.5 	Security Act, United States Code, title 42, sections 1396 to 1396v;
246.6 	(11) (2) government payments received by the commissioner of human services for 
246.7 	state-operated services;
246.8 	(12) (3) payments received by a health care provider for hearing aids and related 
246.9 	equipment or prescription eyewear delivered outside of Minnesota; and
246.10 	(13) (4) payments received by an educational institution from student tuition, student 
246.11 	activity fees, health care service fees, government appropriations, donations, or grants, and 
246.12 	for services identified in and provided under an individualized education program as defined 
246.13 	in section 256B.0625 or Code of Federal Regulations, chapter 34, section 300.340(a). Fee 
246.14 	for service payments and payments for extended coverage are taxable;.
246.15 	(14) payments received under the federal Employees Health Benefits Act, United States 
246.16 	Code, title 5, section 8909(f), as amended by the Omnibus Reconciliation Act of 1990. 
246.17 	Enrollee deductibles, coinsurance, and co-payments are subject to tax; and
246.18 	(15) payments received under the federal Tricare program, Code of Federal Regulations, 
246.19 	title 32, section 199.17(a)(7). Enrollee deductibles, coinsurance, and co-payments are subject 
246.20 	to tax.
246.21 	(b) The following payments are exempted from the gross revenues subject to hospital, 
246.22 	surgical center, or health care provider taxes under sections 295.50 to 295.59:
246.23 	(1) payments received for services provided under the Medicare program, including 
246.24 	payments received from the government and organizations governed by sections 1833, 
246.25 	1853, and 1876 of title XVIII of the federal Social Security Act, United States Code, title 
246.26 	42, section 1395; and enrollee deductibles, co-insurance, and co-payments, whether paid 
246.27 	by the Medicare enrollee, by Medicare supplemental coverage as described in section 
246.28 	62A.011, subdivision 3, clause (10), or by Medicaid payments under title XIX of the federal 
246.29 	Social Security Act. Payments for services not covered by Medicare are taxable;
246.30 	(2) payments received for home health care services;
246.31 	(3) payments received from hospitals or surgical centers for goods and services on which 
246.32 	liability for tax is imposed under section 295.52 or the source of funds for the payment is 
246.33 	exempt under clauses (1), (6), (9), (10), or (11);
247.1 	(4) payments received from the health care providers for goods and services on which 
247.2 	liability for tax is imposed under this chapter or the source of funds for the payment is 
247.3 	exempt under clause (1), (6), (9), (10), or (11);
247.4 	(5) amounts paid for legend drugs to a wholesale drug distributor who is subject to tax 
247.5 	under section 295.52, subdivision 3, reduced by reimbursement received for legend drugs 
247.6 	otherwise exempt under this chapter;
247.7 	(6) payments received from the chemical dependency fund under chapter 254B;
247.8 	(7) payments received in the nature of charitable donations that are not designated for 
247.9 	providing patient services to a specific individual or group;
247.10 	(8) payments received for providing patient services incurred through a formal program 
247.11 	of health care research conducted in conformity with federal regulations governing research 
247.12 	on human subjects. Payments received from patients or from other persons paying on behalf 
247.13 	of the patients are subject to tax;
247.14 	(9) payments received from any governmental agency for services benefiting the public, 
247.15 	not including payments made by the government in its capacity as an employer or insurer 
247.16 	or payments made by the government for services provided under the MinnesotaCare 
247.17 	program or the medical assistance program governed by title XIX of the federal Social 
247.18 	Security Act, United States Code, title 42, section 1396 to 1396v;
247.19 	(10) payments received under the federal Employees Health Benefits Act, United States 
247.20 	Code, title 5, section 8909(f), as amended by the Omnibus Reconciliation Act of 1990. 
247.21 	Enrollee deductibles, co-insurance, and co-payments are subject to tax;
247.22 	(11) payments received under the federal Tricare program, Code of Federal Regulations, 
247.23 	title 32, section 199.17(a)(7). Enrollee deductibles, co-insurance, and co-payments are 
247.24 	subject to tax; and
247.25 	(12) supplemental or enhanced payments authorized under section 256B.196 or 256B.197.
247.26 	(b)(c) Payments received by wholesale drug distributors for legend drugs sold directly 
247.27 	to veterinarians or veterinary bulk purchasing organizations are excluded from the gross 
247.28 	revenues subject to the wholesale drug distributor tax under sections 295.50 to 295.59.
247.29 	(c) Supplemental or enhanced payments authorized under section 256B.19, subdivision 
247.30 	1c, 256B.196, or 256B.197 are excluded from gross revenues subject to the tax under sections 
247.31 	295.50 to 295.59.

247.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

248.1 	Sec. 12. Minnesota Statutes 2018, section 295.57, subdivision 5, is amended to read:
248.2 		Subd. 5.Exemption for amounts paid for legend drugs. If a hospital, surgical center, 
248.3 	or health care provider cannot determine the actual cost or reimbursement of legend drugs 
248.4 	under the exemption provided in section 295.53, subdivision 1, paragraph (a) (b), clause 
248.5 	(5), the following method must be used:
248.6 	A hospital, surgical center, or health care provider must determine the amount paid for 
248.7 	legend drugs used during the month or quarter and multiply that amount by a ratio, the 
248.8 	numerator of which is the total amount received for taxable patient services, and the 
248.9 	denominator of which is the total amount received for all patient services, including amounts 
248.10 	exempt under section 295.53, subdivision 1, paragraph (b). The result represents the allowable 
248.11 	exemption for the monthly or quarterly cost of drugs.

248.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

248.13 	Sec. 13. Minnesota Statutes 2018, section 295.582, subdivision 1, is amended to read:
248.14 		Subdivision 1.Tax expense transfer. (a) A hospital, surgical center, or health care 
248.15 	provider that is subject to a tax under section 295.52, or a pharmacy that has paid additional 
248.16 	expense transferred under this section by a wholesale drug distributor, may transfer additional 
248.17 	expense generated by section 295.52 obligations on to all third-party contracts for the 
248.18 	purchase of health care services on behalf of a patient or consumer. Nothing shall prohibit 
248.19 	a pharmacy from transferring the additional expense generated under section 295.52 to a 
248.20 	pharmacy benefits manager. The additional expense transferred to the third-party purchaser 
248.21 	or a pharmacy benefits manager must not exceed the tax percentage specified in section 
248.22 	295.52 multiplied against the gross revenues received under the third-party contract, and 
248.23 	the tax percentage specified in section 295.52 multiplied against co-payments and deductibles 
248.24 	paid by the individual patient or consumer. The expense must not be generated on revenues 
248.25 	derived from payments that are excluded from the tax under section 295.53. All third-party 
248.26 	purchasers of health care services including, but not limited to, third-party purchasers 
248.27 	regulated under chapter 60A, 62A, 62C, 62D, 62H, 62N, 64B, 65A, 65B, 79, or 79A, or 
248.28 	under section 471.61 or 471.617, and pharmacy benefits managers must pay the transferred 
248.29 	expense in addition to any payments due under existing contracts with the hospital, surgical 
248.30 	center, pharmacy, or health care provider, to the extent allowed under federal law. A 
248.31 	third-party purchaser of health care services includes, but is not limited to, a health carrier 
248.32 	or community integrated service network that pays for health care services on behalf of 
248.33 	patients or that reimburses, indemnifies, compensates, or otherwise insures patients for 
248.34 	health care services. For purposes of this section, a pharmacy benefits manager means an 
249.1 	entity that performs pharmacy benefits management. A third-party purchaser or pharmacy 
249.2 	benefits manager shall comply with this section regardless of whether the third-party 
249.3 	purchaser or pharmacy benefits manager is a for-profit, not-for-profit, or nonprofit entity. 
249.4 	A wholesale drug distributor may transfer additional expense generated by section 295.52
249.5 	obligations to entities that purchase from the wholesaler, and the entities must pay the 
249.6 	additional expense. Nothing in this section limits the ability of a hospital, surgical center, 
249.7 	pharmacy, wholesale drug distributor, or health care provider to recover all or part of the 
249.8 	section 295.52 obligation by other methods, including increasing fees or charges.
249.9 	(a) The tax expense generated by section 295.52 may be transferred as follows:
249.10 	(1) a hospital, surgical center, or health care provider subject to the tax under section 
249.11 	295.52 may transfer the tax expense to all third-party contracts for the purchase of health 
249.12 	care services on behalf of a patient or consumer;
249.13 	(2) a wholesale drug distributor subject to the tax under section 295.52 may transfer the 
249.14 	tax expense to entities that purchase legend drugs from the wholesale drug distributor; and
249.15 	(3) a pharmacy that has paid the tax expense transferred by a wholesale drug distributor 
249.16 	may transfer the tax expense to all third-party contracts for the purchase of health care 
249.17 	services on behalf of a patient or consumer. Nothing shall prohibit a pharmacy from 
249.18 	transferring the tax expense generated under section 295.52 to a pharmacy benefits manager.
249.19 	(b) The transfer of the tax expense under paragraph (a) must comply with the following:
249.20 	(1) the tax expense transferred to the third-party purchaser or a pharmacy benefits 
249.21 	manager must not exceed the tax percentage specified in section 295.52 multiplied against:
249.22 	(i) gross revenues received under the third-party contract; and
249.23 	(ii) co-payments and deductibles paid by the individual patient or consumer; and
249.24 	(2) the tax expense must not be generated on revenues derived from payments that are 
249.25 	excluded or exempted from the tax under section 295.53.
249.26 	(c) Payment of the transferred tax expense is required as follows:
249.27 	(1) all third-party purchasers of health care services, including but not limited to 
249.28 	third-party purchasers regulated under chapter 60A, 62A, 62C, 62D, 62H, 62N, 64B, 65A, 
249.29 	65B, 79, or 79A, or under section 471.61 or 471.617, and pharmacy benefits managers must 
249.30 	pay the transferred expense. This is in addition to any payments due under existing contracts 
249.31 	with the hospital, surgical center, pharmacy, or health care provider, to the extent allowed 
249.32 	under federal law; and
250.1 	(2) all entities that purchase legend drugs from a wholesale drug distributor must pay 
250.2 	the transferred expense.
250.3 	(d) A third-party purchaser or pharmacy benefits manager must comply with this section 
250.4 	regardless of whether the third-party purchaser or pharmacy benefits manager is a for-profit, 
250.5 	not-for-profit, or nonprofit entity.
250.6 	(e) Nothing in this section limits the ability of a hospital, surgical center, health care 
250.7 	provider, pharmacy, or wholesale drug distributor to recover all or part of the section 295.52 
250.8 	obligation by other methods, including increasing fees or charges.
250.9 	(b)(f) Any hospital, surgical center, or health care provider subject to a tax under section 
250.10 	295.52 or a pharmacy that has paid the additional expense transferred under this section by 
250.11 	a wholesale drug distributor may file a complaint with the commissioner responsible for 
250.12 	regulating the third-party purchaser if at any time the third-party purchaser fails to comply 
250.13 	with paragraph (a) this section.
250.14 	(c) (g) If the commissioner responsible for regulating the third-party purchaser finds at 
250.15 	any time that the third-party purchaser has not complied with paragraph (a) this section, the 
250.16 	commissioner may take enforcement action against a third-party purchaser which is subject 
250.17 	to the commissioner's regulatory jurisdiction and which does not allow a hospital, surgical 
250.18 	center, pharmacy, or provider to pass-through the tax expense. The commissioner may by 
250.19 	order fine or censure the third-party purchaser or revoke or suspend the certificate of authority 
250.20 	or license of the third-party purchaser to do business in this state if the commissioner finds 
250.21 	that the third-party purchaser has not complied with this section. The third-party purchaser 
250.22 	may appeal the commissioner's order through a contested case hearing in accordance with 
250.23 	chapter 14.

250.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

250.25 	ARTICLE 17
250.26 	DEPARTMENT OF REVENUE; PROPERTY TAX; POLICY

250.27 	Section 1. Minnesota Statutes 2018, section 162.145, subdivision 3, is amended to read:
250.28 		Subd. 3.Administration. (a) Subject to funds made available by law, the commissioner 
250.29 	shall allocate all funds as provided in subdivision 4 and shall notify, by June 1, certify to
250.30 	the commissioner of revenue the amounts to be paid.
250.31 	(b) Following notification certification from the commissioner of transportation, the 
250.32 	commissioner of revenue shall distribute the specified funds to cities in the same manner 
251.1 	as local government aid under chapter 477A. An appropriation to the commissioner of 
251.2 	transportation under this section is available to the commissioner of revenue for the purposes 
251.3 	specified in this paragraph.
251.4 	(c) Notwithstanding other law to the contrary, in order to receive distributions under 
251.5 	this section, a city must conform to the standards in section 477A.017, subdivision 2. A city 
251.6 	that receives funds under this section must make and preserve records necessary to show 
251.7 	that the funds are spent in compliance with subdivision 4.

251.8 	EFFECTIVE DATE. This section is effective for aids payable in 2019 and thereafter.

251.9 	Sec. 2. Minnesota Statutes 2018, section 273.124, subdivision 13, is amended to read:
251.10 		Subd. 13.Homestead application. (a) A person who meets the homestead requirements 
251.11 	under subdivision 1 must file a homestead application with the county assessor to initially 
251.12 	obtain homestead classification.
251.13 	(b) The commissioner shall prescribe the content, format, and manner of the homestead 
251.14 	application required to be filed under this chapter pursuant to section 270C.30. The 
251.15 	application must clearly inform the taxpayer that this application must be signed by all 
251.16 	owners who occupy the property or by the qualifying relative and returned to the county 
251.17 	assessor in order for the property to receive homestead treatment.
251.18 	(c) Every property owner applying for homestead classification must furnish to the 
251.19 	county assessor the Social Security number of each occupant who is listed as an owner of 
251.20 	the property on the deed of record, the name and address of each owner who does not occupy 
251.21 	the property, and the name and Social Security number of each owner's the spouse of each 
251.22 	occupying owner. The application must be signed by each owner who occupies the property 
251.23 	and by each owner's spouse who occupies the property, or, in the case of property that 
251.24 	qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
251.25 	If a property owner occupies a homestead, the property owner's spouse may not claim 
251.26 	another property as a homestead unless the property owner and the property owner's spouse 
251.27 	file with the assessor an affidavit or other proof required by the assessor stating that the 
251.28 	property qualifies as a homestead under subdivision 1, paragraph (e).
251.29 	Owners or spouses occupying residences owned by their spouses and previously occupied 
251.30 	with the other spouse, either of whom fail to include the other spouse's name and Social 
251.31 	Security number on the homestead application or provide the affidavits or other proof 
251.32 	requested, will be deemed to have elected to receive only partial homestead treatment of 
251.33 	their residence. The remainder of the residence will be classified as nonhomestead residential. 
252.1 	When an owner or spouse's name and Social Security number appear on homestead 
252.2 	applications for two separate residences and only one application is signed, the owner or 
252.3 	spouse will be deemed to have elected to homestead the residence for which the application 
252.4 	was signed.
252.5 	(d) If residential real estate is occupied and used for purposes of a homestead by a relative 
252.6 	of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for 
252.7 	the property to receive homestead status, a homestead application must be filed with the 
252.8 	assessor. The Social Security number of each relative occupying the property and the name 
252.9 	and Social Security number of the spouse of a relative occupying the property shall be 
252.10 	required on the homestead application filed under this subdivision. If a different relative of 
252.11 	the owner subsequently occupies the property, the owner of the property must notify the 
252.12 	assessor within 30 days of the change in occupancy. The Social Security number of a relative 
252.13 	occupying the property or the spouse of a relative occupying the property is private data on 
252.14 	individuals as defined by section 13.02, subdivision 12, but may be disclosed to the 
252.15 	commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture 
252.16 	Act to recover personal property taxes owing, to the county treasurer.
252.17 	(e) The homestead application shall also notify the property owners that if the property 
252.18 	is granted homestead status for any assessment year, that same property shall remain 
252.19 	classified as homestead until the property is sold or transferred to another person, or the 
252.20 	owners, the spouse of the owner, or the relatives no longer use the property as their 
252.21 	homestead. Upon the sale or transfer of the homestead property, a certificate of value must 
252.22 	be timely filed with the county auditor as provided under section 272.115. Failure to notify 
252.23 	the assessor within 30 days that the property has been sold, transferred, or that the owner, 
252.24 	the spouse of the owner, or the relative is no longer occupying the property as a homestead, 
252.25 	shall result in the penalty provided under this subdivision and the property will lose its 
252.26 	current homestead status.
252.27 	(f) If a homestead application has not been filed with the county by December 15, the 
252.28 	assessor shall classify the property as nonhomestead for the current assessment year for 
252.29 	taxes payable in the following year, provided that the owner may be entitled to receive the 
252.30 	homestead classification by proper application under section 375.192.

252.31 	EFFECTIVE DATE. This section is effective for applications for homestead filed in 
252.32 	2020 and thereafter.

253.1 	ARTICLE 18
253.2 	DEPARTMENT OF REVENUE; PROPERTY TAXES; TECHNICAL

253.3 	Section 1. Minnesota Statutes 2018, section 270C.85, subdivision 2, is amended to read:
253.4 		Subd. 2.Powers and duties. The commissioner shall have and exercise the following 
253.5 	powers and duties in administering the property tax laws.:
253.6 	(a) (1) confer with, advise, and give the necessary instructions and directions to local 
253.7 	assessors and local boards of review throughout the state as to their duties under the laws 
253.8 	of the state.;
253.9 	(b) (2) direct proceedings, actions, and prosecutions to be instituted to enforce the laws 
253.10 	relating to the liability and punishment of public officers and officers and agents of 
253.11 	corporations for failure or negligence to comply with the provisions of the property tax 
253.12 	laws, and cause complaints to be made against local assessors, members of boards of 
253.13 	equalization, members of boards of review, or any other assessing or taxing officer, to the 
253.14 	proper authority, for their removal from office for misconduct or negligence of duty.;
253.15 	(c) (3) require county attorneys to assist in the commencement of prosecutions in actions 
253.16 	or proceedings for removal, forfeiture, and punishment, for violation of the property tax 
253.17 	laws in their respective districts or counties.;
253.18 	(d) (4) require town, city, county, and other public officers to report and certify 
253.19 	information, at the parcel level or in the aggregate, as to the assessment and taxation of real 
253.20 	and personal property, and such other information as may be needful in the work of the 
253.21 	commissioner, in such form as the commissioner may prescribe. The commissioner shall 
253.22 	prescribe the content, format, manner, and time of filing of all required reports and 
253.23 	certifications;
253.24 	(e) (5) transmit to the governor, on or before the third Monday in December of each 
253.25 	even-numbered year, and to each member of the legislature, on or before November 15 of 
253.26 	each even-numbered year, the report of the department for the preceding years, showing all 
253.27 	the taxable property subject to the property tax laws and the value of the same, in tabulated 
253.28 	form.;
253.29 	(f) (6) inquire into the methods of assessment and taxation and ascertain whether the 
253.30 	assessors faithfully discharge their duties.; and
253.31 	(g) (7) assist local assessors in determining the estimated market value of industrial 
253.32 	special-use property. For purposes of this paragraph clause, "industrial special-use property" 
253.33 	means property that:
254.1 	(1)(i) is designed and equipped for a particular type of industry;
254.2 	(2)(ii) is not easily adapted to some other use due to the unique nature of the facilities;
254.3 	(3)(iii) has facilities totaling at least 75,000 square feet in size; and
254.4 	(4)(iv) has a total estimated market value of $10,000,000 or greater based on the 
254.5 	assessor's preliminary determination.

254.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

254.7 	Sec. 2. Minnesota Statutes 2018, section 270C.89, subdivision 1, is amended to read:
254.8 		Subdivision 1.Initial report. Each county assessor shall file by April 1 with the 
254.9 	commissioner a copy of the abstract preliminary assessment information that the 
254.10 	commissioner may require under section 270C.85, subdivision 2, clause (4), that will be 
254.11 	acted upon by the local and county boards of review. The abstract must list the real and 
254.12 	personal property in the county itemized by assessment districts. The assessor of each county 
254.13 	in the state shall file with the commissioner, within ten working days following final action 
254.14 	of the local board of review or equalization and within five days following final action of 
254.15 	the county board of equalization, any changes made by the local or county board. The 
254.16 	information must be filed in the manner prescribed by the commissioner.

254.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

254.18 	Sec. 3. Minnesota Statutes 2018, section 270C.89, subdivision 2, is amended to read:
254.19 		Subd. 2.Final report. The final abstract of assessments assessment information after 
254.20 	adjustments by the State Board of Equalization and inclusion of any omitted property shall 
254.21 	be submitted reported to the commissioner on or before September 1 of each calendar year
254.22 	under section 270C.85, subdivision 2, clause (4). The final abstract must separately report 
254.23 	the captured tax capacity of tax increment financing districts under section 469.177, 
254.24 	subdivision 2, the areawide net tax capacity contribution values determined under sections 
254.25 	276A.05, subdivision 1, and 473F.07, subdivision 1, and the value subject to the power line 
254.26 	credit under section 273.42.

254.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

255.1 	Sec. 4. Minnesota Statutes 2018, section 270C.91, is amended to read:
255.2 	270C.91 RECORD OF PROCEEDINGS CHANGING NET TAX CAPACITY; 
255.3 	DUTIES OF COUNTY AUDITOR.
255.4 	A record of all proceedings of the commissioner affecting any change in the net tax 
255.5 	capacity of any property, as revised by the State Board of Equalization, shall be kept by the 
255.6 	commissioner and a copy thereof, duly certified, shall be mailed each year to the auditor of 
255.7 	each county wherein such property is situated, on or before June 30 or 30 days after 
255.8 	submission of the abstract required by section 270C.89, whichever is later. This record shall 
255.9 	specify the amounts or amount, or both, added to or deducted from the net tax capacity of 
255.10 	the real property of each of the several towns and cities, and of the real property not in towns 
255.11 	or cities, also the percent or amount of both, added to or deducted from the several classes 
255.12 	of personal property in each of the towns and cities, and also the amount added to or deducted 
255.13 	from the assessment of any person. The county auditor shall add to or deduct from such 
255.14 	tract or lot, or portion thereof, of any real property in the county the required percent or 
255.15 	amount, or both, on the net tax capacity thereof as it stood after equalized by the county 
255.16 	board, adding in each case a fractional sum of 50 cents or more, and deducting in each case 
255.17 	any fractional sum of less than 50 cents, so that no net tax capacity of any separate tract or 
255.18 	lot shall contain any fraction of a dollar; and add to, or deduct from, the several classes of 
255.19 	personal property in the county the required percent or amount, or both, on the net tax 
255.20 	capacity thereof as it stood after equalized by the county board, adding or deducting in 
255.21 	manner aforesaid any fractional sum so that no net tax capacity of any separate class of 
255.22 	personal property shall contain a fraction of a dollar, and add to or deduct from assessment 
255.23 	of any person, as they stood after equalization by the county board, the required amounts 
255.24 	to agree with the assessments as returned by the commissioner.

255.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

255.26 	Sec. 5. Minnesota Statutes 2018, section 273.061, subdivision 9, is amended to read:
255.27 		Subd. 9.Additional general duties. Additional duties of the county assessor shall be
255.28 	are as follows:
255.29 	(1) to make all assessments, based upon the appraised values reported by the local 
255.30 	assessors or assistants and the county assessor's own knowledge of the value of the property 
255.31 	assessed;
255.32 	(2) to personally view and determine the value of any property which that because of 
255.33 	its type or character may be difficult for the local assessor to appraise;
256.1 	(3) to make all changes ordered by the local boards of review, relative to the net tax 
256.2 	capacity of the property of any individual, firm or corporation after notice has been given 
256.3 	and hearings held as provided by law;
256.4 	(4) to enter all assessments in the assessment books, furnished by the county auditor, 
256.5 	with each book and the tabular statements for each book in correct balance;
256.6 	(5) to prepare all assessment cards, charts, maps and any other forms prescribed by the 
256.7 	commissioner of revenue;
256.8 	(6) to attend the meeting of the county board of equalization; to investigate and report 
256.9 	on any assessment ordered by said board; to enter all changes made by said board in the 
256.10 	assessment books and prepare the abstract of assessments for the commissioner of revenue
256.11 	information reported to the commissioner under section 270C.85, subdivision 2, clause (4); 
256.12 	to enter all changes made by the State Board of Equalization in the assessment books; to 
256.13 	deduct all exemptions authorized by law from each assessment and certify to the county 
256.14 	auditor the taxable value of each parcel of land, as described and listed in the assessment 
256.15 	books by the county auditor, and the taxable value of the personal property of each person, 
256.16 	firm, or corporation assessed;
256.17 	(7) to investigate and make recommendations relative to all applications for the abatement 
256.18 	of taxes or applications for the reduction of the net tax capacity of any property; and
256.19 	(8) to perform all other duties relating to the assessment of property for the purpose of 
256.20 	taxation which may be required by the commissioner of revenue.

256.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

256.22 	Sec. 6. Minnesota Statutes 2018, section 273.0755, is amended to read:
256.23 	273.0755 TRAINING AND EDUCATION OF PROPERTY TAX PERSONNEL.
256.24 	(a) Beginning with the four-year period starting on July 1, 2000, every person licensed 
256.25 	by the state Board of Assessors at the Accredited Minnesota Assessor level or higher, shall 
256.26 	successfully complete a weeklong Minnesota laws course sponsored by the Department of 
256.27 	Revenue at least once in every four-year period. An assessor need not attend the course if 
256.28 	they successfully pass the test for the course.
256.29 	(b) The commissioner of revenue may require that each county, and each city for which 
256.30 	the city assessor performs the duties of county assessor, have (i) (1) a person on the assessor's 
256.31 	staff who is certified by the Department of Revenue in sales ratio calculations, (ii) (2) an 
256.32 	officer or employee who is certified by the Department of Revenue in tax calculations, and 
257.1 	(iii) (3) an officer or employee who is certified by the Department of Revenue in the proper 
257.2 	preparation of abstracts of assessment. The commissioner of revenue may require that each 
257.3 	county have an officer or employee who is certified by the Department of Revenue in the 
257.4 	proper preparation of abstracts of tax lists information reported to the commissioner under 
257.5 	section 270C.85, subdivision 2, clause (4). Certifications under this paragraph expire after 
257.6 	four years.
257.7 	(c) Beginning with the four-year educational licensing period starting on July 1, 2004, 
257.8 	every Minnesota assessor licensed by the State Board of Assessors must attend and participate 
257.9 	in a seminar that focuses on ethics, professional conduct and the need for standardized 
257.10 	assessment practices developed and presented by the commissioner of revenue. This 
257.11 	requirement must be met at least once in every subsequent four-year period. This requirement 
257.12 	applies to all assessors licensed for one year or more in the four-year period.
257.13 	(d) When the commissioner of revenue determines that an individual or board that 
257.14 	performs functions related to property tax administration has performed those functions in 
257.15 	a manner that is not uniform or equitable, the commissioner may require that the individual 
257.16 	or members of the board complete supplemental training. The commissioner may not require 
257.17 	that an individual complete more than 32 hours of supplemental training pursuant to this 
257.18 	paragraph. If the individual is required to complete supplemental training due to that 
257.19 	individual's membership on a local or county board of appeal and equalization, the 
257.20 	commissioner may not require that the individual complete more than two hours of 
257.21 	supplemental training.

257.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

257.23 	Sec. 7. Minnesota Statutes 2018, section 273.113, subdivision 3, is amended to read:
257.24 		Subd. 3.Reimbursement for lost revenue. The county auditor shall certify to the 
257.25 	commissioner of revenue, as part of the abstracts of tax lists required to be filed with the 
257.26 	commissioner under section 275.29 270C.85, subdivision 2, clause (4), the amount of tax 
257.27 	lost to the county from the property tax credit under subdivision 2. Any prior year adjustments 
257.28 	must also be certified in the abstracts of tax lists. The commissioner of revenue shall review 
257.29 	the certifications to determine their accuracy. The commissioner may make the changes in 
257.30 	the certification that are considered necessary or return a certification to the county auditor 
257.31 	for corrections. The commissioner shall reimburse each taxing district, other than school 
257.32 	districts, for the taxes lost. The payments must be made at the time provided in section 
257.33 	473H.10 for payment to taxing jurisdictions in the same proportion that the ad valorem tax 
257.34 	is distributed. Reimbursements to school districts must be made as provided in section 
258.1 	273.1392. The amount necessary to make the reimbursements under this section is annually 
258.2 	appropriated from the general fund to the commissioner of revenue.

258.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

258.4 	Sec. 8. Minnesota Statutes 2018, section 273.119, subdivision 2, is amended to read:
258.5 		Subd. 2.Reimbursement for lost revenue. The county may transfer money from the 
258.6 	county conservation account created in section 40A.152 to the county revenue fund to 
258.7 	reimburse the fund for the cost of the property tax credit. The county auditor shall certify 
258.8 	to the commissioner of revenue, as part of the abstracts of tax lists required to be filed with 
258.9 	the commissioner under section 275.29 270C.85, subdivision 2, clause (4), the amount of 
258.10 	tax lost to the county from the property tax credit under subdivision 1 and the extent that 
258.11 	the tax lost exceeds funds available in the county conservation account. Any prior year 
258.12 	adjustments must also be certified in the abstracts of tax lists. The commissioner of revenue 
258.13 	shall review the certifications to determine their accuracy. The commissioner may make 
258.14 	the changes in the certification that are considered necessary or return a certification to the 
258.15 	county auditor for corrections. The commissioner shall reimburse each taxing district, other 
258.16 	than school districts, from the Minnesota conservation fund under section 40A.151 for the 
258.17 	taxes lost in excess of the county account. The payments must be made at the time provided 
258.18 	in section 473H.10, subdivision 3, for payment to taxing jurisdictions in the same proportion 
258.19 	that the ad valorem tax is distributed.

258.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

258.21 	Sec. 9. Minnesota Statutes 2018, section 273.1231, subdivision 3, is amended to read:
258.22 		Subd. 3.Disaster or emergency area.  (a) "Disaster or emergency area" means a 
258.23 	geographic area for which:
258.24 	(1)(i) the president of the United States, the secretary of agriculture, or the administrator 
258.25 	of the Small Business Administration has determined that a disaster exists pursuant to federal 
258.26 	law, or
258.27 	(ii) a local emergency has been declared pursuant to section 12.29; and
258.28 	(2) an application by the local unit of government requesting property tax relief under 
258.29 	this section has been received by the governor and approved by the executive council.
258.30 	(b) The executive council must not approve an application unless:
258.31 	(1) a completed disaster survey is included; and
259.1 	(2) within the boundaries of the applicant, (i) the average damage for the buildings that 
259.2 	are damaged is at least $5,000, and (ii) either at least 25 taxable buildings were damaged, 
259.3 	or the total dollar amount of damage to all taxable buildings equals or exceeds one percent 
259.4 	of the total taxable market value of buildings for the applicant as reported to the commissioner 
259.5 	of revenue under section 270C.89, subdivision 2 270C.85, subdivision 2, clause (4), for the 
259.6 	assessment in the year prior to the year of the damage.

259.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

259.8 	Sec. 10. Minnesota Statutes 2018, section 273.136, subdivision 2, is amended to read:
259.9 		Subd. 2.Reduction amounts submitted to county. The commissioner of revenue shall 
259.10 	determine, not later than April 1 of each year, the amount of reduction resulting from section 
259.11 	273.135 in each county containing a tax relief area as defined by section 273.134, paragraph 
259.12 	(b), basing determinations on a review of abstracts of tax lists submitted by the county 
259.13 	auditors pursuant to section 275.29 information reported to the commissioner under section 
259.14 	270C.85, subdivision 2, clause (4). The commissioner may make changes in the abstracts 
259.15 	of tax lists as deemed necessary. The commissioner of revenue, after such review, shall 
259.16 	submit to the St. Louis County auditor, on or before April 15, the amount of the first half 
259.17 	payment payable hereunder and on or before September 15 the amount of the second half 
259.18 	payment.

259.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

259.20 	Sec. 11. Minnesota Statutes 2018, section 273.1384, subdivision 3, is amended to read:
259.21 		Subd. 3.Credit reimbursements. The county auditor shall determine the tax reductions 
259.22 	allowed under subdivision 2 within the county for each taxes payable year and shall certify 
259.23 	that amount to the commissioner of revenue as a part of the abstracts of tax lists submitted 
259.24 	by the county auditors under section 275.29 under section 270C.85, subdivision 2, clause 
259.25 	(4). Any prior year adjustments shall also be certified on the abstracts of tax lists. The 
259.26 	commissioner shall review the certifications for accuracy, and may make such changes as 
259.27 	are deemed necessary, or return the certification to the county auditor for correction. The 
259.28 	credit under this section must be used to proportionately reduce the net tax capacity-based 
259.29 	property tax payable to each local taxing jurisdiction as provided in section 273.1393.

259.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

260.1 	Sec. 12. Minnesota Statutes 2018, section 273.1387, subdivision 3, is amended to read:
260.2 		Subd. 3.Credit reimbursements. The county auditor shall determine the tax reductions 
260.3 	allowed under this section within the county for each taxes payable year and shall certify 
260.4 	that amount to the commissioner of revenue as a part of the abstracts of tax lists submitted 
260.5 	under section 275.29 under section 270C.85, subdivision 2, clause (4). Any prior year 
260.6 	adjustments shall also be certified on the abstracts of tax lists. The commissioner shall 
260.7 	review the certifications for accuracy, and may make such changes as are deemed necessary, 
260.8 	or return the certification to the county auditor for correction. The credit under this section 
260.9 	must be used to reduce the school district net tax capacity-based property tax as provided 
260.10 	in section 273.1393.

260.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

260.12 	Sec. 13. Minnesota Statutes 2018, section 273.18, is amended to read:
260.13 	273.18 LISTING, VALUATION, AND ASSESSMENT OF EXEMPT PROPERTY 
260.14 	BY COUNTY AUDITORS.
260.15 	(a) In every sixth year after the year 2010, the county auditor shall enter the description 
260.16 	of each tract of real property exempt by law from taxation, with the name of the owner, and 
260.17 	the assessor shall value and assess the same in the same manner that other real property is 
260.18 	valued and assessed, and shall designate in each case the purpose for which the property is 
260.19 	used.
260.20 	(b) For purposes of the apportionment of fire state aid under section 69.021, subdivision 
260.21 	7, The county auditor shall include on the abstract of assessment of exempt real property 
260.22 	filed under this section in the exempt property information that the commissioner may 
260.23 	require under section 270C.85, subdivision 2, clause (4), the total number of acres of all 
260.24 	natural resources lands for which in lieu payments are made under sections 477A.11 to 
260.25 	477A.14. The assessor shall estimate its market value, provided that if the assessor is not 
260.26 	able to estimate the market value of the land on a per parcel basis, the assessor shall furnish 
260.27 	the commissioner of revenue with an estimate of the average value per acre of this land 
260.28 	within the county.

260.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

261.1 	Sec. 14. Minnesota Statutes 2018, section 274.14, is amended to read:
261.2 	274.14 LENGTH OF SESSION; RECORD.
261.3 	The board must meet after the second Friday in June on at least one meeting day and 
261.4 	may meet for up to ten consecutive meeting days. The actual meeting dates must be contained 
261.5 	on the valuation notices mailed to each property owner in the county as provided in section 
261.6 	273.121. For this purpose, "meeting days" is defined as any day of the week excluding 
261.7 	Sunday. At the board's discretion, "meeting days" may include Saturday. No action taken 
261.8 	by the county board of review after June 30 is valid, except for corrections permitted in 
261.9 	sections 273.01 and 274.01. The county auditor shall keep an accurate record of the 
261.10 	proceedings and orders of the board. The record must be published like other proceedings 
261.11 	of county commissioners. A copy of the published record must be sent to the commissioner 
261.12 	of revenue, with the abstract of assessment required by section 274.16 within five days 
261.13 	following final action of the county board of equalization.
261.14 	For counties that conduct either regular board of review meetings or open book meetings, 
261.15 	at least one of the meeting days must include a meeting that does not end before 7:00 p.m. 
261.16 	For counties that require taxpayer appointments for the board of review, appointments must 
261.17 	include some available times that extend until at least 7:00 p.m. The county may have a 
261.18 	Saturday meeting in lieu of, or in addition to, the extended meeting times under this 
261.19 	paragraph.

261.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

261.21 	Sec. 15. Minnesota Statutes 2018, section 274.16, is amended to read:
261.22 	274.16 CORRECTED LISTS, ABSTRACTS.
261.23 	The county assessor or, in Ramsey County, the official designated by the board of county 
261.24 	commissioners shall calculate the changes of the assessment lists determined by the county 
261.25 	board of equalization, and make corrections accordingly, in the real or personal lists, or 
261.26 	both, and shall make duplicate abstracts duplicates of them. One must be filed in the assessor's 
261.27 	office, and one must be forwarded to the commissioner of revenue as provided in section 
261.28 	270C.89.

261.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

261.30 	Sec. 16. Minnesota Statutes 2018, section 275.025, subdivision 1, is amended to read:
261.31 		Subdivision 1.Levy amount. The state general levy is levied against 
261.32 	commercial-industrial property and seasonal residential recreational property, as defined 
262.1 	in this section. The state general levy for commercial-industrial property is $784,590,000 
262.2 	for taxes payable in 2018 and thereafter. The state general levy for seasonal-recreational 
262.3 	property is $44,190,000 for taxes payable in 2018 and thereafter. The tax under this section 
262.4 	is not treated as a local tax rate under section 469.177 and is not the levy of a governmental 
262.5 	unit under chapters 276A and 473F.
262.6 	The commissioner shall increase or decrease the preliminary or final rate for a year as 
262.7 	necessary to account for errors and tax base changes that affected a preliminary or final rate 
262.8 	for either of the two preceding years. Adjustments are allowed to the extent that the necessary 
262.9 	information is available to the commissioner at the time the rates for a year must be certified, 
262.10 	and for the following reasons:
262.11 	(1) an erroneous report of taxable value by a local official;
262.12 	(2) an erroneous calculation by the commissioner; and
262.13 	(3) an increase or decrease in taxable value for commercial-industrial or seasonal 
262.14 	residential recreational property reported on the abstracts of tax lists submitted under section 
262.15 	275.29 that was not reported on the abstracts of assessment submitted under section 270C.89
262.16 	to the commissioner under section 270C.85, subdivision 2, clause (4), for the same year.
262.17 	The commissioner may, but need not, make adjustments if the total difference in the tax 
262.18 	levied for the year would be less than $100,000.

262.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

262.20 	Sec. 17. Minnesota Statutes 2018, section 290B.09, subdivision 1, is amended to read:
262.21 		Subdivision 1.Determination; payment. The county auditor shall determine the total 
262.22 	current year's deferred amount of property tax under this chapter in the county, and submit
262.23 	report those amounts as part of the abstracts of tax lists submitted by the county auditors 
262.24 	under section 275.29 to the commissioner under section 270C.85, subdivision 2, clause (4). 
262.25 	The commissioner may make changes in the abstracts of tax lists as deemed necessary. The 
262.26 	commissioner of revenue, after such review, shall pay the deferred amount of property tax 
262.27 	to each county treasurer on or before August 31.
262.28 	The county treasurer shall distribute as part of the October settlement the funds received 
262.29 	as if they had been collected as a part of the property tax.

262.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

263.1 	Sec. 18. Minnesota Statutes 2018, section 469.177, subdivision 1, is amended to read:
263.2 		Subdivision 1.Original net tax capacity. (a) Upon or after adoption of a tax increment 
263.3 	financing plan, the auditor of any county in which the district is situated shall, upon request 
263.4 	of the authority, certify the original net tax capacity of the tax increment financing district 
263.5 	and that portion of the district overlying any subdistrict as described in the tax increment 
263.6 	financing plan and shall certify in each year thereafter the amount by which the original net 
263.7 	tax capacity has increased or decreased as a result of a change in tax exempt status of 
263.8 	property within the district and any subdistrict, reduction or enlargement of the district or 
263.9 	changes pursuant to subdivision 4. The auditor shall certify the amount within 30 days after 
263.10 	receipt of the request and sufficient information to identify the parcels included in the district. 
263.11 	The certification relates to the taxes payable year as provided in subdivision 6.
263.12 	(b) If the classification under section 273.13 of property located in a district changes to 
263.13 	a classification that has a different assessment ratio, the original net tax capacity of that 
263.14 	property must be redetermined at the time when its use is changed as if the property had 
263.15 	originally been classified in the same class in which it is classified after its use is changed.
263.16 	(c) The amount to be added to the original net tax capacity of the district as a result of 
263.17 	previously tax exempt real property within the district becoming taxable equals the net tax 
263.18 	capacity of the real property as most recently assessed pursuant to section 273.18 information 
263.19 	reported to the commissioner under section 270C.85, subdivision 2, clause (4), or, if that 
263.20 	assessment was made more than one year prior to the date of title transfer rendering the 
263.21 	property taxable, the net tax capacity assessed by the assessor at the time of the transfer. If 
263.22 	improvements are made to tax exempt property after the municipality approves the district 
263.23 	and before the parcel becomes taxable, the assessor shall, at the request of the authority, 
263.24 	separately assess the estimated market value of the improvements. If the property becomes 
263.25 	taxable, the county auditor shall add to original net tax capacity, the net tax capacity of the 
263.26 	parcel, excluding the separately assessed improvements. If substantial taxable improvements 
263.27 	were made to a parcel after certification of the district and if the property later becomes tax 
263.28 	exempt, in whole or part, as a result of the authority acquiring the property through 
263.29 	foreclosure or exercise of remedies under a lease or other revenue agreement or as a result 
263.30 	of tax forfeiture, the amount to be added to the original net tax capacity of the district as a 
263.31 	result of the property again becoming taxable is the amount of the parcel's value that was 
263.32 	included in original net tax capacity when the parcel was first certified. The amount to be 
263.33 	added to the original net tax capacity of the district as a result of enlargements equals the 
263.34 	net tax capacity of the added real property as most recently certified by the commissioner 
264.1 	of revenue as of the date of modification of the tax increment financing plan pursuant to 
264.2 	section 469.175, subdivision 4.
264.3 	(d) If the net tax capacity of a property increases because the property no longer qualifies 
264.4 	under the Minnesota Agricultural Property Tax Law, section 273.111; the Minnesota Open 
264.5 	Space Property Tax Law, section 273.112; or the Metropolitan Agricultural Preserves Act, 
264.6 	chapter 473H, the Rural Preserve Property Tax Program under section 273.114, or because 
264.7 	platted, unimproved property is improved or market value is increased after approval of the 
264.8 	plat under section 273.11, subdivision 14a or 14b, the increase in net tax capacity must be 
264.9 	added to the original net tax capacity. If the net tax capacity of a property increases because 
264.10 	the property no longer qualifies for the homestead market value exclusion under section 
264.11 	273.13, subdivision 35, the increase in net tax capacity must be added to original net tax 
264.12 	capacity if the original construction of the affected home was completed before the date the 
264.13 	assessor certified the original net tax capacity of the district.
264.14 	(e) The amount to be subtracted from the original net tax capacity of the district as a 
264.15 	result of previously taxable real property within the district becoming tax exempt or 
264.16 	qualifying in whole or part for an exclusion from taxable market value, or a reduction in 
264.17 	the geographic area of the district, shall be the amount of original net tax capacity initially 
264.18 	attributed to the property becoming tax exempt, being excluded from taxable market value, 
264.19 	or being removed from the district. If the net tax capacity of property located within the tax 
264.20 	increment financing district is reduced by reason of a court-ordered abatement, stipulation 
264.21 	agreement, voluntary abatement made by the assessor or auditor or by order of the 
264.22 	commissioner of revenue, the reduction shall be applied to the original net tax capacity of 
264.23 	the district when the property upon which the abatement is made has not been improved 
264.24 	since the date of certification of the district and to the captured net tax capacity of the district 
264.25 	in each year thereafter when the abatement relates to improvements made after the date of 
264.26 	certification. The county auditor may specify reasonable form and content of the request 
264.27 	for certification of the authority and any modification thereof pursuant to section 469.175, 
264.28 	subdivision 4.
264.29 	(f) If a parcel of property contained a substandard building or improvements described 
264.30 	in section 469.174, subdivision 10, paragraph (e), that were demolished or removed and if 
264.31 	the authority elects to treat the parcel as occupied by a substandard building under section 
264.32 	469.174, subdivision 10, paragraph (b), or by improvements under section 469.174, 
264.33 	subdivision 10, paragraph (e), the auditor shall certify the original net tax capacity of the 
264.34 	parcel using the greater of (1) the current net tax capacity of the parcel, or (2) the estimated 
265.1 	market value of the parcel for the year in which the building or other improvements were 
265.2 	demolished or removed, but applying the classification rates for the current year.
265.3 	(g) For a redevelopment district qualifying under section 469.174, subdivision 10, 
265.4 	paragraph (a), clause (4), as a qualified disaster area, the auditor shall certify the value of 
265.5 	the land as the original tax capacity for any parcel in the district that contains a building 
265.6 	that suffered substantial damage as a result of the disaster or emergency.

265.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

265.8 	Sec. 19.  REPEALER.
 265.9 	Minnesota Statutes 2018, section 275.29, is repealed.

265.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

265.11 	ARTICLE 19
265.12 	FIRE STATE AID; TECHNICAL CHANGES

265.13 	Section 1. [477B.01] DEFINITIONS.
265.14 		Subdivision 1.Scope. Unless the language or context clearly indicates that a different 
265.15 	meaning is intended, the following words and terms, for the purposes of this chapter and 
265.16 	chapters 423A and 424A, have the meanings given to them.
265.17 		Subd. 2.Commissioner. "Commissioner" means the commissioner of revenue.
265.18 		Subd. 3.Company or insurance company. "Company" or "insurance company" has 
265.19 	the meaning given in section 60A.02, subdivision 4.
265.20 		Subd. 4.Estimated market value. "Estimated market value" has the meaning given in 
265.21 	section 272.03, subdivision 14.
265.22 		Subd. 5.Fire department. "Fire department" includes a municipal fire department and 
265.23 	an independent nonprofit firefighting corporation.
265.24 		Subd. 6.Fire department service area. "Fire department service area" means the area 
265.25 	serviced by a qualifying fire department that meets the requirements of section 477B.02.
265.26 		Subd. 7.Independent nonprofit firefighting corporation. "Independent nonprofit 
265.27 	firefighting corporation" means an independent nonprofit firefighting corporation that meets 
265.28 	the criteria in section 424A.094, subdivision 1, paragraph (a).
265.29 		Subd. 8.Minnesota Fire Premium Report. "Minnesota Fire Premium Report" means 
265.30 	a form for reporting by insurance companies of (1) gross direct fire, lightning, sprinkler 
266.1 	leakage, and extended coverage premiums received upon risks located or to be performed 
266.2 	in this state less return premiums and dividends, and (2) other facts that the commissioner 
266.3 	may require.
266.4 		Subd. 9.Municipal clerk. "Municipal clerk" means the person elected or appointed to 
266.5 	the position of municipal clerk or, if there is no such person, the chief financial official, the 
266.6 	chief administrative official, or the person primarily responsible for managing the finances 
266.7 	of a municipality.
266.8 		Subd. 10.Municipality. (a) "Municipality" means:
266.9 	(1) a home rule charter or statutory city;
266.10 	(2) an organized town;
266.11 	(3) a park district subject to chapter 398;
266.12 	(4) the University of Minnesota; and
266.13 	(5) an American Indian tribal government entity located within a federally recognized 
266.14 	American Indian reservation.
266.15 	(b) This subdivision only applies to chapter 477B.
266.16 		Subd. 11.Secretary. "Secretary" means the secretary of an independent nonprofit 
266.17 	firefighting corporation that has a subsidiary incorporated firefighters' relief association or 
266.18 	whose firefighters participate in the voluntary statewide volunteer firefighter retirement 
266.19 	plan.
266.20 		Subd. 12.Voluntary statewide volunteer firefighter retirement plan. "Voluntary 
266.21 	statewide volunteer firefighter retirement plan" means the retirement plan established under 
266.22 	chapter 353G.

266.23 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

266.24 	Sec. 2. [477B.02] QUALIFYING FOR FIRE STATE AID.
266.25 		Subdivision 1.Qualifications for fire state aid. A municipality or independent nonprofit 
266.26 	firefighting corporation qualifies to receive fire state aid if all the requirements of this section 
266.27 	are met.
266.28 		Subd. 2.Establishment of fire department. (a) An independent nonprofit firefighting 
266.29 	corporation must be created under the nonprofit corporation act of this state operating for 
266.30 	the exclusive purpose of firefighting, or the governing body of a municipality must officially 
266.31 	establish a fire department.
267.1 	(b) The fire department must have provided firefighting services for at least one calendar 
267.2 	year.
267.3 		Subd. 3.Personnel and benefits requirements. (a) A fire department must have a 
267.4 	minimum of ten paid or volunteer firefighters, including a fire chief and assistant fire chief.
267.5 	(b) The fire department must have regular scheduled meetings and frequent drills that 
267.6 	include instructions in firefighting tactics and in the use, care, and operation of all fire 
267.7 	apparatus and equipment.
267.8 	(c) The fire department must have a separate subsidiary incorporated firefighters' relief 
267.9 	association that provides retirement benefits or must participate in the voluntary statewide 
267.10 	volunteer firefighter retirement plan; or if the municipality solely employs full-time 
267.11 	firefighters as defined in section 299N.03, subdivision 5, retirement coverage must be 
267.12 	provided by the public employees police and fire retirement plan.
267.13 	(d) Notwithstanding paragraph (c), a municipality without a relief association as described 
267.14 	under section 424A.08, paragraph (a), may still qualify to receive fire state aid if all other 
267.15 	requirements of this section are met.
267.16 		Subd. 4.Equipment requirements. The fire department must have all of the following 
267.17 	equipment, or the equivalent as determined by the state fire marshal, by December 31 of 
267.18 	the year preceding the certification required in subdivision 8:
267.19 	(1) a motorized fire truck equipped with:
267.20 	(i) a motorized pump;
267.21 	(ii) a 250-gallon or larger water tank;
267.22 	(iii) 300 feet of one inch or larger fire hose in two lines with combination spray and 
267.23 	straight stream nozzles;
267.24 	(iv) five-gallon hand pumps - tank extinguisher or equivalent;
267.25 	(v) a dry chemical extinguisher or equivalent;
267.26 	(vi) ladders;
267.27 	(vii) extension ladders;
267.28 	(viii) pike poles;
267.29 	(ix) crowbars;
267.30 	(x) axes;
268.1 	(xi) lanterns; and
268.2 	(xii) fire coats, helmets, and boots;
268.3 	(2) the items in clause (1) suitably housed in a building of good construction with facilities 
268.4 	for care of hoses and equipment;
268.5 	(3) a reliable and adequate method of receiving fire alarms by telephone or with electric 
268.6 	siren and suitable means of sounding an alarm; and
268.7 	(4) if response is to be provided outside the corporate limits of the municipality where 
268.8 	the fire department is located, another piece of motorized apparatus to make the response.
268.9 		Subd. 5.Fire service contract or agreement; apportionment agreement filing 
268.10 	requirement. (a) Every municipality or independent nonprofit firefighting corporation must 
268.11 	file a copy of any duly executed and valid fire service contract or agreement with the 
268.12 	commissioner.
268.13 	(b) If more than one fire department provides service to a municipality, the fire 
268.14 	departments furnishing service must enter into an agreement apportioning among themselves 
268.15 	the percentage of the population and the percentage of the estimated market value of each 
268.16 	shared service fire department service area. The agreement must be in writing and must be 
268.17 	filed with the commissioner.
268.18 		Subd. 6.Compliance with rules. The fire department must meet all other requirements 
268.19 	that the commissioner establishes by rule.
268.20 		Subd. 7.Financial reporting requirements. The financial reporting requirements of 
268.21 	section 424A.014 must be satisfied.
268.22 		Subd. 8.PERA certification to commissioner. On or before February 1 each year, if 
268.23 	retirement coverage for a fire department is provided by the voluntary statewide volunteer 
268.24 	firefighter retirement plan, the executive director of the Public Employees Retirement 
268.25 	Association must certify the existence of retirement coverage.
268.26 		Subd. 9.Fire department certification to commissioner. On or before March 15 of 
268.27 	each year, the municipal clerk or the secretary, and the fire chief, must jointly certify to the 
268.28 	commissioner that the fire department exists and meets the qualification requirements of 
268.29 	this section. The certification must be on a form prescribed by the commissioner and must 
268.30 	include all other information that the commissioner requires.
268.31 		Subd. 10.Penalty for failure to file certification. (a) If the certification under 
268.32 	subdivision 9 is not filed with the commissioner on or before March 15, the commissioner 
269.1 	must notify the municipal clerk or the secretary that a penalty equal to a portion or all of 
269.2 	the current year aid will apply if the certification is not received within ten days of the 
269.3 	postmark date of the notification.
269.4 	(b) The penalty for failure to file the certification under subdivision 9 is equal to the 
269.5 	amount of fire state aid determined for the municipality or the independent nonprofit 
269.6 	firefighting corporation for the current year, multiplied by five percent for each week or 
269.7 	fraction of a week that the certification is late. The penalty must be computed beginning 
269.8 	ten days after the postmark date of the commissioner's notification. Aid amounts forfeited 
269.9 	as a result of the penalty revert to the state general fund. Failure to receive the certification 
269.10 	form is not a defense for a failure to file.
269.11 		Subd. 11.Determination by commissioner. The commissioner must determine which 
269.12 	municipalities and independent nonprofit firefighting corporations are qualified to receive 
269.13 	fire state aid directly or are qualified to receive the benefit of fire state aid paid to the 
269.14 	voluntary statewide volunteer firefighter retirement plan based on compliance with the 
269.15 	requirements of this section and the financial compliance report required under section 
269.16 	6.495, subdivision 3, if applicable. The commissioner may take into account any other 
269.17 	relevant information that comes to the attention of the commissioner when making the 
269.18 	determination.

269.19 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

269.20 	Sec. 3. [477B.03] CALCULATION OF FIRE STATE AID; APPEAL.
269.21 		Subdivision 1.Certification and calculation of fire state aid. (a) On or before October 
269.22 	l, the commissioner must calculate the amount of fire state aid that each municipality or 
269.23 	independent nonprofit firefighting corporation is to receive.
269.24 	(b) The commissioner must calculate an initial fire state aid allocation amount for each 
269.25 	municipality or independent nonprofit firefighting corporation under subdivision 4 and, if 
269.26 	applicable, a minimum fire state aid allocation amount for each municipality or independent 
269.27 	nonprofit firefighting corporation under subdivision 5. The municipality or independent 
269.28 	nonprofit firefighting corporation must be apportioned the greater of the amounts calculated 
269.29 	under subdivisions 4 and 5.
269.30 		Subd. 2.Apportionment of fire state aid. (a) The amount of fire state aid available for 
269.31 	apportionment, before the addition of the minimum fire state aid allocation amount under 
269.32 	subdivision 5, is equal to 107 percent of the amount of premium taxes paid to the state upon 
269.33 	the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the 
270.1 	commissioner by companies or insurance companies on the Minnesota Fire Premium Report. 
270.2 	This amount must be reduced by the amount required to pay the state auditor's costs and 
270.3 	expenses of the audits or exams of the firefighters' relief associations.
270.4 	(b) The total amount available for apportionment must not be less than two percent of 
270.5 	the premiums less return premiums reported to the commissioner by companies or insurance 
270.6 	companies on the Minnesota Fire Premium Report after subtracting the following amounts:
270.7 	(1) the amount required to pay the state auditor's costs and expenses of the audits or 
270.8 	exams of the firefighters' relief associations; and
270.9 	(2) one percent of the premiums reported by township mutual insurance companies and 
270.10 	mutual property and casualty companies with total assets of $5,000,000 or less.
270.11 	(c) The commissioner must apportion the fire state aid to each municipality or independent 
270.12 	nonprofit firefighting corporation qualified under section 477B.02 relative to the premiums 
270.13 	reported on the Minnesota Fire Premium Reports filed under this chapter.
270.14 	(d) The commissioner must calculate the percentage of increase or decrease reflected in 
270.15 	the apportionment over or under the previous year's available state aid using the same 
270.16 	premiums as a basis for comparison.
270.17 		Subd. 3.Population and estimated market value. (a) Official statewide federal census 
270.18 	figures must be used in calculations requiring the use of population figures under this chapter. 
270.19 	Increases or decreases in population disclosed by reason of any special census must not be 
270.20 	taken into consideration.
270.21 	(b) The latest available estimated market value property figures must be used in 
270.22 	calculations requiring the use of estimated market value property figures under this chapter.
270.23 		Subd. 4.Initial fire state aid allocation amount. (a) The initial fire state aid allocation 
270.24 	amount is the amount available for apportionment as fire state aid under subdivision 2, 
270.25 	without the inclusion of any additional funding amount to support a minimum fire state aid 
270.26 	amount under section 423A.02, subdivision 3. The initial fire state aid allocation amount 
270.27 	is allocated one-half in proportion to the population for each fire department service area 
270.28 	and one-half in proportion to the estimated market value of each fire department service 
270.29 	area, including (1) the estimated market value of tax-exempt property, and (2) the estimated 
270.30 	market value of natural resources lands receiving in lieu payments under sections 477A.11 
270.31 	to 477A.14 and 477A.17. The estimated market value of minerals is excluded.
270.32 	(b) In the case of a municipality or independent nonprofit firefighting corporation 
270.33 	furnishing fire protection to other municipalities as evidenced by valid fire service contracts 
271.1 	filed with the commissioner under section 477B.02, subdivision 5, the distribution must be 
271.2 	adjusted proportionately to take into consideration the crossover fire protection service. 
271.3 	Necessary adjustments must be made to subsequent apportionments.
271.4 	(c) In the case of municipalities or independent nonprofit firefighting corporations 
271.5 	qualifying for aid, the commissioner must calculate the state aid for the municipality or 
271.6 	independent nonprofit firefighting corporation on the basis of the population and the estimated 
271.7 	market value of the area furnished fire protection service by the fire department as evidenced 
271.8 	by fire service agreements filed with the commissioner under section 477B.02, subdivision 
271.9 	5.
271.10 	(d) In the case of more than one fire department furnishing contracted fire service to a 
271.11 	municipality, the population and estimated market value in the apportionment agreement 
271.12 	filed with the commissioner under section 477B.02, subdivision 5, must be used in calculating 
271.13 	the state aid.
271.14 		Subd. 5.Minimum fire state aid allocation amount. (a) The minimum fire state aid 
271.15 	allocation amount is the amount derived from any additional funding amount to support a 
271.16 	minimum fire state aid amount under section 423A.02, subdivision 3. The minimum fire 
271.17 	state aid allocation amount is allocated to municipalities or independent nonprofit firefighting 
271.18 	corporations with volunteer firefighters' relief associations or covered by the voluntary 
271.19 	statewide volunteer firefighter retirement plan. The amount is based on the number of active 
271.20 	volunteer firefighters who are (1) members of the relief association as reported to the Office 
271.21 	of the State Auditor in a specific annual financial reporting year as specified in paragraphs 
271.22 	(b) to (d), or (2) covered by the voluntary statewide volunteer firefighter retirement plan as 
271.23 	specified in paragraph (e).
271.24 	(b) For relief associations established in calendar year 1993 or a prior year, the number 
271.25 	of active volunteer firefighters equals the number of active volunteer firefighters who were 
271.26 	members of the relief association as reported in the annual financial reporting for calendar 
271.27 	year 1993, but not to exceed 30 active volunteer firefighters.
271.28 	(c) For relief associations established in calendar year 1994 through calendar year 1999, 
271.29 	the number of active volunteer firefighters equals the number of active volunteer firefighters 
271.30 	who were members of the relief association as reported in the annual financial reporting for 
271.31 	calendar year 1998 to the Office of the State Auditor, but not to exceed 30 active volunteer 
271.32 	firefighters.
271.33 	(d) For relief associations established after calendar year 1999, the number of active 
271.34 	volunteer firefighters equals the number of active volunteer firefighters who are members 
272.1 	of the relief association as reported in the first annual financial reporting submitted to the 
272.2 	Office of the State Auditor, but not to exceed 20 active volunteer firefighters.
272.3 	(e) If a relief association is terminated as a result of providing retirement coverage for 
272.4 	volunteer firefighters by the voluntary statewide volunteer firefighter retirement plan under 
272.5 	chapter 353G, the number of active volunteer firefighters equals the number of active 
272.6 	volunteer firefighters of the municipality or independent nonprofit firefighting corporation 
272.7 	covered by the statewide plan as certified by the executive director of the Public Employees 
272.8 	Retirement Association to the commissioner and the state auditor, but not to exceed 30 
272.9 	active firefighters.
272.10 		Subd. 6.Corrective aid adjustments. Any adjustments needed to correct prior 
272.11 	misallocations must be made to subsequent fire state aid apportionments.
272.12 		Subd. 7.Appeal. A municipality, an independent nonprofit firefighting corporation, a 
272.13 	fire relief association, or the voluntary statewide volunteer firefighter retirement plan may 
272.14 	object to the amount of fire state aid apportioned to it by filing a written request with the 
272.15 	commissioner to review and adjust the apportionment of funds within the state. The decision 
272.16 	of the commissioner is subject to appeal, review, and adjustment by the district court in the 
272.17 	county in which the applicable municipality or independent nonprofit firefighting corporation 
272.18 	is located or by the Ramsey County District Court with respect to the voluntary statewide 
272.19 	volunteer firefighter retirement plan.

272.20 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

272.21 	Sec. 4. [477B.04] APPROPRIATION, PAYMENT, AND ADMINISTRATION.
272.22 		Subdivision 1.Payments. (a) The commissioner must make payments to the Public 
272.23 	Employees Retirement Association for deposit in the voluntary statewide volunteer firefighter 
272.24 	retirement fund on behalf of a municipality or independent nonprofit firefighting corporation 
272.25 	that is a member of the voluntary statewide volunteer firefighter retirement plan under 
272.26 	chapter 353G, or directly to a municipality or county designated by an independent nonprofit 
272.27 	firefighting corporation. The payment is equal to the amount of fire state aid apportioned 
272.28 	to the applicable fire state aid recipient under section 477B.03.
272.29 	(b) Fire state aid is payable on October 1 annually. The amount of state aid due and not 
272.30 	paid by October 1 accrues interest payable to the recipient at the rate of one percent for each 
272.31 	month or part of a month that the amount remains unpaid after October 1.
272.32 	(c) The interest under paragraph (b) does not apply when payment has not been made 
272.33 	by October 1 due to noncompliance with sections 424A.014 and 477B.02, subdivision 7.
273.1 		Subd. 2.Appropriation. The amount necessary to make the payments under this section 
273.2 	and section 477B.03 is annually appropriated to the commissioner from the general fund.
273.3 		Subd. 3.Deposit of state aid. (a) If the municipality or the independent nonprofit 
273.4 	firefighting corporation is covered by the voluntary statewide volunteer firefighter retirement 
273.5 	plan under chapter 353G, the executive director of the Public Employees Retirement 
273.6 	Association must credit the fire state aid against future municipal contribution requirements 
273.7 	under section 353G.08 and must notify the municipality or the independent nonprofit 
273.8 	firefighting corporation of the fire state aid so credited at least annually.
273.9 	(b) If the municipality or the independent nonprofit firefighting corporation is not covered 
273.10 	by the voluntary statewide volunteer firefighter retirement plan, the treasurer of the 
273.11 	municipality must, within 30 days after receipt, transmit the fire state aid to the treasurer 
273.12 	of the duly incorporated firefighters' relief association if there is one organized and the 
273.13 	association has filed a financial report with the municipality pursuant to section 424A.014, 
273.14 	subdivision 1 or 2, whichever applies. If the relief association has not filed a financial report 
273.15 	with the municipality, the treasurer of the municipality must delay transmission of the fire 
273.16 	state aid to the relief association until the complete financial report is filed.
273.17 	(c) The treasurer of the municipality must deposit the fire state aid money in the municipal 
273.18 	treasury if (1) the municipality or independent nonprofit firefighting corporation is not 
273.19 	covered by the voluntary statewide volunteer firefighter retirement plan, (2) there is no 
273.20 	relief association organized, (3) the association has dissolved, or (4) the association has 
273.21 	been removed as trustees of state aid. The money may be disbursed from the municipal 
273.22 	treasury only for the purposes and in the manner set forth in section 424A.08 or for the 
273.23 	payment of the employer contribution requirement with respect to firefighters covered by 
273.24 	the public employees police and fire retirement plan under section 353.65, subdivision 3.

273.25 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

273.26 	Sec. 5. [477B.05] SHORTFALL FROM GENERAL FUND.
273.27 	(a) If the annual funding requirements of fire relief associations or consolidation accounts 
273.28 	under sections 424A.091 to 424A.095 or Laws 2013, chapter 111, article 5, sections 31 to 
273.29 	42, exceed all applicable revenue sources of a given year, including the insurance premium 
273.30 	taxes funding fire state aid under this chapter as set under section 297I.05, subdivisions 2, 
273.31 	3, and 4, the shortfall in the annual funding requirements must be paid from the general 
273.32 	fund to the extent appropriated by the legislature.
274.1 	(b) Nothing in this section relieves any municipality from its obligation to a relief 
274.2 	association or consolidation account under law.

274.3 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

274.4 	Sec. 6. PURPOSE.
 274.5 	It is the intent of the legislature to make Minnesota's fire and police state aid laws more 
274.6 	understandable by separating and recodifying disparate administration and compliance 
274.7 	provisions currently contained in chapter 69 of Minnesota Statutes. Due to the complexity 
274.8 	of the recodification, prior provisions are repealed on the effective date of the new provisions.

274.9 	EFFECTIVE DATE. This section is effective July 1, 2019.

274.10 	Sec. 7.  REPEALER.
 274.11 	Minnesota Statutes 2018, sections 69.011, subdivisions 1, 2, 2b, 2c, 3, and 4; 69.021, 
274.12 	subdivisions 1, 2, 3, 4, 5, 7, 7a, 8, 9, 10, and 11; 69.031, subdivisions 1, 3, and 5; and 69.041,
274.13 	are repealed.

274.14 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

274.15 	ARTICLE 20
274.16 	POLICE STATE AID; TECHNICAL CHANGES

274.17 	Section 1. [477C.01] DEFINITIONS.
274.18 		Subdivision 1.Scope. Unless the language or context clearly indicates that a different 
274.19 	meaning is intended, the following words and terms, for the purposes of this chapter and 
274.20 	chapter 423A have the meanings given to them.
274.21 		Subd. 2.Commissioner. "Commissioner" means the commissioner of revenue.
274.22 		Subd. 3.Company or insurance company. "Company" or "insurance company" has 
274.23 	the meaning given in section 60A.02, subdivision 4.
274.24 		Subd. 4.Minnesota Aid to Police Premium Report. "Minnesota Aid to Police Premium 
274.25 	Report" means a form for reporting the total gross premiums, less return premiums and 
274.26 	dividends, on all direct business received by an insurance company in this state during the 
274.27 	preceding calendar year, with reference to insurance written for perils contained in auto 
274.28 	insurance coverages as reported to the National Association of Insurance Commissioners 
274.29 	and the commissioner of commerce.
275.1 		Subd. 5.Municipal clerk, municipal clerk-treasurer, or county auditor. "Municipal 
275.2 	clerk," "municipal clerk-treasurer," or "county auditor" means:
275.3 	(1) the person elected or appointed to the position of municipal clerk, municipal 
275.4 	clerk-treasurer, or county auditor or, if there is no such person, the chief financial official 
275.5 	or the person primarily responsible for managing the finances of a municipality;
275.6 	(2) for a park district, the secretary of the board of park district commissioners;
275.7 	(3) for the University of Minnesota, the official designated by the Board of Regents;
275.8 	(4) for the Metropolitan Airports Commission, the person designated by the commission;
275.9 	(5) for the Departments of Natural Resources and Public Safety, the respective 
275.10 	commissioner of the agency; and
275.11 	(6) for a tribal police department that exercises state arrest powers under section 626.90, 
275.12 	626.91, 626.92, or 626.93, the person designated by the applicable American Indian tribal 
275.13 	government.
275.14 		Subd. 6.Municipality. (a) "Municipality" means:
275.15 	(1) a home rule charter or statutory city;
275.16 	(2) an organized town;
275.17 	(3) a county;
275.18 	(4) a park district subject to chapter 398;
275.19 	(5) the University of Minnesota;
275.20 	(6) an American Indian tribal government with a tribal police department that exercises 
275.21 	state arrest powers under section 626.90, 626.91, 626.92, or 626.93;
275.22 	(7) the Metropolitan Airports Commission; and
275.23 	(8) the Departments of Natural Resources and Public Safety with respect to peace officers 
275.24 	covered under chapter 352B.
275.25 	(b) This subdivision only applies to chapter 477C.
275.26 		Subd. 7.Peace officer. "Peace officer" means any person:
275.27 	(1) whose primary source of income derived from wages is from direct employment by 
275.28 	a municipality as a law enforcement officer on a full-time basis of not less than 30 hours 
275.29 	per week;
276.1 	(2) who has been employed for a minimum of six months before December 31 preceding 
276.2 	the date of the current year's certification under section 477C.02, subdivision 1;
276.3 	(3) who is sworn to enforce the general criminal laws of the state and local ordinances;
276.4 	(4) who is licensed by the Peace Officers Standards and Training Board and is authorized 
276.5 	to arrest with a warrant; and
276.6 	(5) who is a member of the State Patrol retirement plan or the public employees police 
276.7 	and fire fund.

276.8 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

276.9 	Sec. 2. [477C.02] QUALIFYING FOR POLICE STATE AID.
276.10 		Subdivision 1.Certification to commissioner. (a) A certification made under this 
276.11 	section must be filed with the commissioner on a form prescribed by the commissioner and 
276.12 	must include all other facts that the commissioner requires.
276.13 	(b) Except as provided in subdivision 2, on or before March 15 annually, the municipal 
276.14 	clerk, municipal clerk-treasurer, or county auditor of each municipality employing one or 
276.15 	more peace officers must certify to the commissioner the number of peace officers employed 
276.16 	during the previous calendar year. No peace officer may be included in the certification by 
276.17 	more than one municipality for the same month.
276.18 	(c) Credit for peace officers employed less than a full year must be apportioned. Each 
276.19 	full month of employment of a qualifying officer during the calendar year entitles the 
276.20 	employing municipality to credit for 1/12 of the payment for employment of a peace officer 
276.21 	for the entire year. For purposes of this chapter, employment of a peace officer begins when 
276.22 	the peace officer is entered on the payroll of the employing municipality.
276.23 		Subd. 2.Departments of Natural Resources and Public Safety. On or before March 
276.24 	15 annually, the commissioner of natural resources must certify the number of peace officers 
276.25 	employed by the Enforcement Division and the commissioner of public safety must certify 
276.26 	the number of peace officers employed by the Bureau of Criminal Apprehension, the 
276.27 	Gambling Enforcement Division, and the State Patrol Division. The certification must be 
276.28 	on the form described in subdivision 1, paragraph (a). Peace officers certified under this 
276.29 	subdivision must be included in the total certifications under subdivision 1.
276.30 		Subd. 3.Ineligibility of certain peace officers. A peace officer employed by the 
276.31 	University of Minnesota who is required by the Board of Regents to be a member of the 
277.1 	University of Minnesota faculty retirement plan is not eligible to be included in any police 
277.2 	state aid certification under this section.
277.3 		Subd. 4.Penalty for failure to file certification. (a) If a certification under subdivision 
277.4 	1 or 2 is not filed with the commissioner on or before March 15, the commissioner must 
277.5 	notify the municipal clerk, municipal clerk-treasurer, or county auditor that a penalty equal 
277.6 	to a portion or all of its current year aid will apply if the certification is not received within 
277.7 	ten days.
277.8 	(b) The penalty for failure to file the certification under subdivision 1 or 2 is equal to 
277.9 	the amount of police state aid determined for the municipality for the current year, multiplied 
277.10 	by five percent for each week or fraction of a week that the certification is late. The penalty 
277.11 	must be computed beginning ten days after the postmark date of the commissioner's 
277.12 	notification as required under this subdivision. All aid amounts forfeited as a result of the 
277.13 	penalty revert to the state general fund. Failure to receive the certification form may not be 
277.14 	used as a defense for a failure to file.
277.15 		Subd. 5.Determination by commissioner. The commissioner must determine which 
277.16 	municipalities are qualified to receive police state aid based on compliance with the 
277.17 	requirements of this section. The commissioner may take into account any other relevant 
277.18 	information that comes to the attention of the commissioner when making the determination.

277.19 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

277.20 	Sec. 3. [477C.03] CALCULATION OF POLICE STATE AID; APPEAL.
277.21 		Subdivision 1.Certification and calculation of police state aid. (a) On or before 
277.22 	October 1, the commissioner must calculate the amount of police state aid that each 
277.23 	municipality is to receive.
277.24 	(b) The commissioner must calculate an excess police state aid amount for each 
277.25 	municipality under subdivision 3 and must reduce the apportionment amount for each 
277.26 	municipality based on the calculation.
277.27 		Subd. 2.Apportionment of police state aid. (a) The total amount available for 
277.28 	apportionment as police state aid is equal to 104 percent of the amount of premium taxes 
277.29 	paid to the state on the premiums reported to the commissioner by companies or insurance 
277.30 	companies on the Minnesota Aid to Police Premium Report. The total amount for 
277.31 	apportionment for the police state aid program must not be less than two percent of the 
277.32 	amount of premiums reported to the commissioner by companies or insurance companies 
277.33 	on the Minnesota Aid to Police Premium Report.
278.1 	(b) The commissioner must calculate the percentage of increase or decrease reflected in 
278.2 	the apportionment over or under the previous year's available state aid using the same 
278.3 	premiums as a basis for comparison.
278.4 	(c) In addition to the amount for apportionment of police state aid under paragraph (a), 
278.5 	each year $100,000 must be apportioned for police state aid. An amount sufficient to pay 
278.6 	this increase is annually appropriated from the general fund.
278.7 	(d) The commissioner must apportion police state aid to all municipalities in proportion 
278.8 	to the relationship that the total number of peace officers employed by that municipality for 
278.9 	the prior calendar year and the proportional or fractional number who were employed less 
278.10 	than a calendar year as credited under section 477C.02, subdivision 1, paragraph (c), bears 
278.11 	to the total number of peace officers employed by all municipalities subject to any reduction 
278.12 	under subdivision 3.
278.13 	(e) Any necessary additional adjustments must be made to subsequent police state aid 
278.14 	apportionments.
278.15 		Subd. 3.Apportionment reduction; excess police state aid. (a) The commissioner 
278.16 	must reduce the apportionment of police state aid under this section for eligible municipalities 
278.17 	by the amount of any excess police state aid calculated under this subdivision.
278.18 	(b) The commissioner must calculate the amount of excess police state aid for each 
278.19 	municipality as follows:
278.20 	(1) for municipalities in which police retirement coverage is provided wholly by the 
278.21 	public employees police and fire fund and all peace officers are members of the plan governed 
278.22 	by sections 353.63 to 353.657, the excess police state aid amount equals the amount of 
278.23 	police state aid apportioned under subdivision 2 that exceeds the employer's total prior 
278.24 	calendar year obligation as defined in paragraph (c), as certified by the executive director 
278.25 	of the Public Employees Retirement Association;
278.26 	(2) for the Metropolitan Airports Commission, the excess police state aid amount equals 
278.27 	the amount of apportioned police aid calculated under subdivision 2 that exceeds the 
278.28 	commission's total prior calendar year obligation as defined in paragraph (c), as certified 
278.29 	by the executive director of the Public Employees Retirement Association; and
278.30 	(3) for the Departments of Natural Resources and Public Safety, the excess police state 
278.31 	aid amount equals the amount of apportioned police aid calculated under subdivision 2 that 
278.32 	exceeds the employer's total prior calendar year obligation under section 352B.02, subdivision 
279.1 	1c, for plan members who are peace officers, as certified by the executive director of the 
279.2 	Minnesota State Retirement System.
279.3 	(c) The municipality's total prior calendar year obligation with respect to the public 
279.4 	employees police and fire plan under paragraph (b), clause (1), is the total prior calendar 
279.5 	year obligation under section 353.65, subdivision 3, for police officers as defined in section 
279.6 	353.64, subdivisions 1, la, and 2, and the actual total prior calendar year obligation under 
279.7 	section 353.65, subdivision 3, for firefighters, as defined in section 353.64, subdivisions 1, 
279.8 	la, and 2, but not to exceed for those firefighters the applicable following employer calendar 
279.9 	year amount:

279.10		Municipality
	Maximum Amount
		
279.11		Albert Lea
	$54,157.01
		
279.12		Anoka
	10,399.31
		
279.13		Apple Valley
	5,442.44
		
279.14		Austin
	49,864.73
		
279.15		Bemidji
	27,671.38
		
279.16		Brooklyn Center
	6,605.92
		
279.17		Brooklyn Park
	24,002.26
		
279.18		Burnsville
	15,956.00
		
279.19		Cloquet
	4,260.49
		
279.20		Coon Rapids
	39,920.00
		
279.21		Cottage Grove
	8,588.48
		
279.22		Crystal
	5,855.00
		
279.23		East Grand Forks
	51,009.88
		
279.24		Edina
	32,251.00
		
279.25		Elk River
	5,216.55
		
279.26		Ely
	13,584.16
		
279.27		Eveleth
	16,288.27
		
279.28		Fergus Falls
	6,742.00
		
279.29		Fridley
	33,420.64
		
279.30		Golden Valley
	11,744.61
		
279.31		Hastings
	16,561.00
		
279.32		Hopkins
	4,324.23
		
279.33		International Falls
	14,400.69
		
279.34		Lakeville
	782.35
		
279.35		Lino Lakes
	5,324.00
		
279.36		Little Falls
	7,889.41
		
279.37		Maple Grove
	6,707.54
		
280.1		Maplewood
	8,476.69
		
280.2		Minnetonka
	10,403.00
		
280.3		Montevideo
	1,307.66
		
280.4		Moorhead
	68,069.26
		
280.5		New Hope
	6,739.72
		
280.6		North St. Paul
	4,241.14
		
280.7		Northfield
	770.63
		
280.8		Owatonna
	37,292.67
		
280.9		Plymouth
	6,754.71
		
280.10		Red Wing
	3,504.01
		
280.11		Richfield
	53,757.96
		
280.12		Rosemount
	1,712.55
		
280.13		Roseville
	9,854.51
		
280.14		St. Anthony
	33,055.00
		
280.15		St. Louis Park
	53,643.11
		
280.16		Thief River Falls
	28,365.04
		
280.17		Virginia
	31,164.46
		
280.18		Waseca
	11,135.17
		
280.19		West St. Paul
	15,707.20
		
280.20		White Bear Lake
	6,521.04
		
280.21		Woodbury
	3,613.00
		
280.22		any other municipality
	0.00
		
280.23 	(d) The total amount of excess police state aid must be deposited in the excess police 
280.24 	state aid account in the general fund, and administered and distributed as provided in 
280.25 	subdivision 4.
280.26 		Subd. 4.Excess police state aid holding account. (a) The excess police state aid holding 
280.27 	account is established in the general fund. The excess police state aid holding account is 
280.28 	administered by the commissioner.
280.29 	(b) Excess police state aid determined under subdivision 3 must be deposited annually 
280.30 	in the excess police state aid holding account.
280.31 	(c) From the balance in the excess police state aid holding account, $900,000 must be 
280.32 	canceled annually to the general fund.
280.33 	(d) On October 1 annually, one-half of the balance of the excess police state aid holding 
280.34 	account remaining after the deduction under paragraph (c) is appropriated for additional 
280.35 	amortization aid under section 423A.02, subdivision 1b.
281.1 	(e) The remaining balance in the excess police state aid holding account, after the 
281.2 	deductions under paragraphs (c) and (d), must be canceled annually to the general fund.
281.3 		Subd. 5.Appeal. A municipality may object to the amount of police state aid apportioned 
281.4 	to it by filing a written request with the commissioner to review and adjust the apportionment 
281.5 	of funds to the municipality. The decision of the commissioner is subject to appeal, review, 
281.6 	and adjustment by the district court in the county in which the applicable municipality is 
281.7 	located or by the Ramsey County District Court with respect to the Departments of Natural 
281.8 	Resources or Public Safety.

281.9 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

281.10 	Sec. 4. [477C.04] APPROPRIATION, PAYMENT, AND ADMINISTRATION.
281.11 		Subdivision 1.Payments. (a) The commissioner must make payments to the municipality 
281.12 	equal to the amount of police state aid apportioned to the applicable state aid recipient under 
281.13 	section 477C.03.
281.14 	(b) Police state aid is payable on October 1 annually. The amount of state aid due and 
281.15 	not paid by October 1 accrues interest payable to the recipient at the rate of one percent for 
281.16 	each month or part of a month that the amount remains unpaid after October 1.
281.17 		Subd. 2.Appropriation. (a) The amount necessary to make the payments under this 
281.18 	section and section 477C.03 is annually appropriated to the commissioner from the general 
281.19 	fund.
281.20 	(b) The police state aid apportioned to the Departments of Public Safety and Natural 
281.21 	Resources under section 477C.03 is allocated to the commissioner of management and 
281.22 	budget for transfer to the funds and accounts from which the salaries of peace officers 
281.23 	certified under section 477C.02, subdivision 2, are paid. On or before October l, the 
281.24 	commissioner of revenue must certify to the commissioners of public safety, natural 
281.25 	resources, and management and budget the amounts to be transferred from the appropriation 
281.26 	for police state aid. The commissioners of public safety and natural resources must certify 
281.27 	to the commissioner of management and budget the amounts to be credited to each of the 
281.28 	funds and accounts from which the peace officers employed by their respective departments 
281.29 	are paid.
281.30 		Subd. 3.Deposit of state aid. (a) For a municipality in which police retirement coverage 
281.31 	is provided by the public employees police and fire fund and all peace officers are members 
281.32 	of the fund, including municipalities covered by section 353.665, the total state aid must 
282.1 	be applied toward the municipality's employer contribution to the public employees police 
282.2 	and fire fund under sections 353.65, subdivision 3, and 353.665, subdivision 8.
282.3 	(b) The county treasurer, upon receipt of the police state aid for the county, must apply 
282.4 	the total state aid toward the county's employer contribution to the public employees police 
282.5 	and fire fund under section 353.65, subdivision 3.
282.6 	(c) The designated Metropolitan Airports Commission official, upon receipt of the police 
282.7 	state aid for the Metropolitan Airports Commission, must apply the total police state aid 
282.8 	toward the commission's employer contribution for peace officers to the public employees 
282.9 	police and fire plan under section 353.65, subdivision 3.
282.10 	(d) The commissioners of public safety and natural resources must allocate the police 
282.11 	state aid first for employer contributions funded from the general fund and then for employer 
282.12 	contributions funded from other funds. For peace officers employed by the Departments of 
282.13 	Natural Resources or Public Safety whose salaries are paid from the general fund, the 
282.14 	amounts transferred from the appropriation for police state aid must be canceled to the 
282.15 	general fund.

282.16 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

282.17 	ARTICLE 21
282.18 	FIRE AND POLICE STATE AID; MISCELLANEOUS TECHNICAL CHANGES

282.19 	Section 1. [297I.26] FIRE AND POLICE PREMIUM REPORTS.
282.20 		Subdivision 1.Filing reports. (a) Each company must file with the commissioner the 
282.21 	reports defined in sections 477B.01, subdivision 8, and 477C.01, subdivision 4, signed by 
282.22 	the authorized representative of the company, on or before March 1 annually. The fire and 
282.23 	extended coverage portion of multiperil package premiums and all other combination 
282.24 	premiums must be determined by applying percentages determined by the commissioner 
282.25 	or by rating bureaus recognized by the commissioner. The commissioner shall prescribe 
282.26 	the content, form, and manner of the reports.
282.27 	(b) The commissioner must notify each company that fails to timely file the report 
282.28 	required under paragraph (a). The notice must demand that the company file the report 
282.29 	within 30 days. Where good cause exists, the commissioner may extend the period for filing 
282.30 	the report as long as a request for extension is filed by the company before the expiration 
282.31 	of the 30-day period.
283.1 		Subd. 2.Penalties. (a) A company that fails to file the report on or before the due date 
283.2 	in subdivision 1 is liable for a penalty equal to $25 for each seven days, or fraction thereof, 
283.3 	that the report is delinquent, but not to exceed $200.
283.4 	(b) Any person whose duty it is to file the report and who fails or refuses to file within 
283.5 	30 days after the postmark of the notice in subdivision 1 must be fined an amount of no 
283.6 	more than $1,000.
283.7 	(c) Any company that knowingly makes and files an inaccurate or false report is liable 
283.8 	for a fine in an amount not less than $25 nor more than $1,000, as determined by the 
283.9 	commissioner, and the commissioner of commerce may revoke the company's certificate 
283.10 	of authority.

283.11 	EFFECTIVE DATE. This section is effective for reports filed after December 31, 2019.

283.12 	Sec. 2. [424A.014] FINANCIAL REPORT; BOND; EXAMINATION.
283.13 		Subdivision 1.Financial report and audit. (a) The board of the Bloomington Fire 
283.14 	Department Relief Association and each volunteer firefighters relief association with assets 
283.15 	of at least $500,000 or liabilities of at least $500,000 in the prior year or in any previous 
283.16 	year, according to the applicable actuarial valuation or according to the financial report if 
283.17 	no valuation is required, must prepare a financial report covering the special and general 
283.18 	funds of the relief association for the preceding fiscal year, file the financial report, and 
283.19 	submit financial statements.
283.20 	(b) The financial report must contain financial statements and disclosures that present 
283.21 	the true financial condition of the relief association and the results of relief association 
283.22 	operations in conformity with generally accepted accounting principles and in compliance 
283.23 	with the regulatory, financing, and funding provisions of this chapter and any other applicable 
283.24 	laws. The financial report must be countersigned by:
283.25 	(1) the municipal clerk or clerk-treasurer of the municipality in which the relief 
283.26 	association is located if the relief association is a firefighters' relief association that is directly 
283.27 	associated with a municipal fire department;
283.28 	(2) the municipal clerk or clerk-treasurer of the largest municipality in population that 
283.29 	contracts with the independent nonprofit firefighting corporation if the volunteer firefighter 
283.30 	relief association is a subsidiary of an independent nonprofit firefighting corporation, and 
283.31 	by the secretary of the independent nonprofit firefighting corporation; or
284.1 	(3) the chief financial official of the county in which the volunteer firefighter relief 
284.2 	association is located or primarily located if the relief association is associated with a fire 
284.3 	department that is not located in or associated with an organized municipality.
284.4 	(c) The financial report must be retained in the office of the Bloomington Fire Department 
284.5 	Relief Association or the volunteer firefighter relief association for public inspection and 
284.6 	must be filed with the governing body of the government subdivision in which the associated 
284.7 	fire department is located after the close of the fiscal year. One copy of the financial report 
284.8 	must be furnished to the state auditor after the close of the fiscal year.
284.9 	(d) Audited financial statements must be attested to by a certified public accountant or 
284.10 	by the state auditor and must be filed with the state auditor on or before June 30 after the 
284.11 	close of the fiscal year. The state auditor may accept this report in lieu of the report required 
284.12 	in paragraph (c).
284.13 		Subd. 2.Financial statement. (a) The board of each volunteer firefighter relief 
284.14 	association that is not required to file a financial report and audit under subdivision 1 must 
284.15 	prepare a detailed statement of the financial affairs for the preceding fiscal year of the relief 
284.16 	association's special and general funds in the style and form prescribed by the state auditor. 
284.17 	The detailed statement must show:
284.18 	(1) the sources and amounts of all money received;
284.19 	(2) all disbursements, accounts payable, and accounts receivable;
284.20 	(3) the amount of money remaining in the treasury;
284.21 	(4) total assets, including a listing of all investments;
284.22 	(5) the accrued liabilities; and
284.23 	(6) all other items necessary to show accurately the revenues and expenditures and 
284.24 	financial position of the relief association.
284.25 	(b) The detailed financial statement of the special and general funds required under 
284.26 	paragraph (a) must be certified by a certified public accountant or by the state auditor in 
284.27 	accordance with agreed-upon procedures and forms prescribed by the state auditor. The 
284.28 	accountant must have at least five years of public accounting, auditing, or similar experience 
284.29 	and must not be an active, inactive, or retired member of the relief association or the fire 
284.30 	department.
284.31 	(c) The detailed financial statement required under paragraph (a) must be countersigned 
284.32 	by:
285.1 	(1) the municipal clerk or clerk-treasurer of the municipality;
285.2 	(2) where applicable, the municipal clerk or clerk-treasurer of the largest municipality 
285.3 	in population that contracts with the independent nonprofit firefighting corporation if the 
285.4 	relief association is a subsidiary of an independent nonprofit firefighting corporation, and 
285.5 	by the secretary of the independent nonprofit firefighting corporation; or
285.6 	(3) the chief financial official of the county in which the volunteer firefighter relief 
285.7 	association is located or primarily located if the relief association is associated with a fire 
285.8 	department that is not located in or associated with an organized municipality.
285.9 	(d) The volunteer firefighters relief association board must submit a copy of the detailed 
285.10 	financial statement required under paragraph (a) that has been certified by the governing 
285.11 	body of the municipality to the state auditor on or before March 31 after the close of the 
285.12 	fiscal year.
285.13 	(e) A certified public accountant or auditor who performs the agreed-upon procedures 
285.14 	under paragraph (b) is subject to the reporting requirement of section 6.67.
285.15 		Subd. 3.Qualification. The state auditor may, upon a demonstration by a relief 
285.16 	association of hardship or an inability to conform, extend the deadline for reports under 
285.17 	subdivision 1 or 2, but not beyond November 30 following the due date. If the reports are 
285.18 	not received by November 30, the municipality or relief association forfeits its current year 
285.19 	state aid, and, until the state auditor receives the required information, the relief association 
285.20 	or municipality is ineligible to receive any future state aid. A municipality or relief association 
285.21 	does not qualify initially to receive, or be entitled subsequently to retain, fire state aid and 
285.22 	police and firefighter retirement supplemental state aid payable under chapter 477B and 
285.23 	section 423A.022 if the financial reporting requirement or the applicable requirements of 
285.24 	this chapter or any other statute or special law have not been complied with or are not 
285.25 	fulfilled.
285.26 		Subd. 4.Treasurer bond. (a) The treasurer of the Bloomington Fire Department Relief 
285.27 	Association may not enter upon duties without having given the association a bond in a 
285.28 	reasonable amount acceptable to the municipality for the faithful discharge of duties 
285.29 	according to law.
285.30 	(b) No treasurer of a relief association governed by sections 424A.091 to 424A.096 may 
285.31 	enter upon the duties of the office until the treasurer has given the association a good and 
285.32 	sufficient bond in an amount equal to at least ten percent of the assets of the relief association; 
285.33 	however, the amount of the bond need not exceed $500,000.
286.1 		Subd. 5.Report by certain municipalities; exceptions. (a) The chief administrative 
286.2 	officer of each municipality that has a fire department but does not have a relief association 
286.3 	governed by sections 424A.091 to 424A.095 or Laws 2014, chapter 275, article 2, section 
286.4 	23, and that is not exempted under paragraph (b) or (c) must annually prepare a detailed 
286.5 	financial report of the receipts and disbursements by the municipality for fire protection 
286.6 	service during the preceding calendar year on a form prescribed by the state auditor. The 
286.7 	financial report must contain any information that the state auditor deems necessary to 
286.8 	disclose the sources of receipts and the purpose of disbursements for fire protection service. 
286.9 	The financial report must be signed by the municipal clerk or clerk-treasurer with the state 
286.10 	auditor on or before July 1 annually. The municipality does not qualify initially to receive, 
286.11 	and is not entitled subsequently to retain, any fire state aid and police and firefighter 
286.12 	retirement supplemental state aid payable under chapter 477B and section 423A.022 if the 
286.13 	financial reporting requirement or the applicable requirements of any other statute or special 
286.14 	law have not been complied with or are not fulfilled.
286.15 	(b) Each municipality that has a fire department and provides retirement coverage to its 
286.16 	firefighters through the voluntary statewide volunteer firefighter retirement plan under 
286.17 	chapter 353G qualifies to have fire state aid transmitted to and retained in the statewide 
286.18 	volunteer firefighter retirement fund without filing a detailed financial report if the executive 
286.19 	director of the Public Employees Retirement Association certifies compliance by the 
286.20 	municipality with the requirements of sections 353G.04 and 353G.08, subdivision 1, 
286.21 	paragraph (e), and certifies conformity by the applicable fire chief with the requirements 
286.22 	of section 353G.07.
286.23 	(c) Each municipality qualifies to receive fire state aid under chapter 477B without filing 
286.24 	a financial report under paragraph (a) if the municipality:
286.25 	(1) has a fire department;
286.26 	(2) does not have a volunteer firefighters relief association directly associated with its 
286.27 	fire department;
286.28 	(3) does not participate in the statewide volunteer firefighter retirement plan under 
286.29 	chapter 353G;
286.30 	(4) provides retirement coverage to its firefighters through the public employees police 
286.31 	and fire retirement plan under sections 353.63 to 353.68; and
286.32 	(5) is certified by the executive director of the Public Employees Retirement Association 
286.33 	to the state auditor to have had an employer contribution under section 353.65, subdivision 
287.1 	3, for its firefighters for the immediately prior calendar year equal to or greater than its fire 
287.2 	state aid for the immediately prior calendar year.
287.3 		Subd. 6.Notification by commissioner of revenue and state auditor. (a) The state 
287.4 	auditor, in performing an audit or examination, must notify the Legislative Commission on 
287.5 	Pensions and Retirement if the audit or examination reveals malfeasance, misfeasance, or 
287.6 	nonfeasance in office by relief association officials or municipal officials.
287.7 	(b) The commissioner of revenue must notify the Legislative Commission on Pensions 
287.8 	and Retirement if the state auditor has not filed the required financial compliance reports 
287.9 	by July 1.

287.10 	EFFECTIVE DATE. This section is effective July 1, 2019.

287.11 	Sec. 3. Minnesota Statutes 2018, section 424A.05, is amended by adding a subdivision to 
287.12 	read:
287.13 		Subd. 3b.Authorized administrative expenses from special fund. (a) Notwithstanding 
287.14 	any provision of law to the contrary, the payment of the following necessary, reasonable, 
287.15 	and direct expenses of maintaining, protecting, and administering the special fund, when 
287.16 	provided for in the bylaws of the association and approved by the board of trustees, 
287.17 	constitutes authorized administrative expenses of a volunteer firefighters relief association 
287.18 	organized under any law of the state or the Bloomington Fire Department Relief Association:
287.19 	(1) office expenses, including but not limited to rent, utilities, equipment, supplies, 
287.20 	postage, periodical subscriptions, furniture, fixtures, and salaries of administrative personnel;
287.21 	(2) salaries of the officers of the association or their designees, and salaries of the 
287.22 	members of the board of trustees of the association if the salary amounts are approved by 
287.23 	the governing body of the entity that is responsible for meeting any minimum obligation 
287.24 	under section 424A.092 or 424A.093 or Laws 2013, chapter 111, article 5, sections 31 to 
287.25 	42, and the itemized expenses of relief association officers and board members that are 
287.26 	incurred as a result of fulfilling their responsibilities as administrators of the special fund;
287.27 	(3) tuition, registration fees, organizational dues, and other authorized expenses of the 
287.28 	officers or members of the board of trustees incurred in attending educational conferences, 
287.29 	seminars, or classes relating to the administration of the relief association;
287.30 	(4) audit and audit-related services, accounting and accounting-related services, and 
287.31 	actuarial, medical, legal, and investment and performance evaluation expenses;
288.1 	(5) filing and application fees payable by the relief association to federal or other 
288.2 	government entities;
288.3 	(6) reimbursement to the officers and members of the board of trustees or their designees, 
288.4 	for reasonable and necessary expenses actually paid and incurred in the performance of 
288.5 	their duties as officers or members of the board; and
288.6 	(7) premiums on fiduciary liability insurance and official bonds for the officers, members 
288.7 	of the board of trustees, and employees of the relief association.
288.8 	(b) All other expenses of the relief association must be paid from the general fund of 
288.9 	the association if one exists. If a relief association has only one fund, that fund is the special 
288.10 	fund for purposes of this subdivision. If a relief association has a special fund and a general 
288.11 	fund, the payment of any expense of the relief association that is directly related to the 
288.12 	purposes for which both funds were established must be apportioned between the two funds 
288.13 	on the basis of the benefits derived by each fund.

288.14 	EFFECTIVE DATE. This section is effective July 1, 2019.

288.15 	Sec. 4.  REPEALER.
 288.16 	(a) Minnesota Statutes 2018, sections 69.051, subdivisions 1, 1a, 1b, 2, 3, and 4; and 
288.17 	69.80, are repealed.
288.18 	(b) Minnesota Statutes 2018, sections 69.33; and 297I.25, subdivision 2, are repealed.

288.19 	EFFECTIVE DATE. Paragraph (a) is effective July 1, 2019. Paragraph (b) is effective 
288.20 	for reports filed after December 31, 2019.

288.21 	ARTICLE 22
288.22 	FIRE AND POLICE STATE AID; CONFORMING CHANGES

288.23 	Section 1. Minnesota Statutes 2018, section 6.495, subdivision 3, is amended to read:
288.24 		Subd. 3.Report to commissioner of revenue. The state auditor shall file with the 
288.25 	commissioner of revenue a financial compliance report certifying for each relief association:
288.26 	(1) the completion of the annual financial report required under section 69.051 424A.014
288.27 	and the auditing or certification of those financial reports under subdivision 1; and
288.28 	(2) the receipt of any actuarial valuations required under section 424A.093 or Laws 
288.29 	2013, chapter 111, article 5, sections 31 to 42.

288.30 	EFFECTIVE DATE. This section is effective July 1, 2019.

289.1 	Sec. 2. Minnesota Statutes 2018, section 144E.42, subdivision 2, is amended to read:
289.2 		Subd. 2.Trust account. (a) There is established in the general fund the Cooper/Sams 
289.3 	volunteer ambulance trust account and the Cooper/Sams volunteer ambulance award and 
289.4 	account.
289.5 	(b) The trust account must be credited with:
289.6 	(1) general fund appropriations for that purpose;
289.7 	(2) transfers from the Cooper/Sams volunteer ambulance award and account; and
289.8 	(3) investment earnings on those accumulated proceeds. The assets and income of the 
289.9 	trust account must be held and managed by the commissioner of management and budget 
289.10 	and the State Board of Investment for the benefit of the state of Minnesota and its general 
289.11 	creditors.
289.12 	(c) The Cooper/Sams volunteer ambulance account must be credited with transfers from 
289.13 	the excess police state-aid holding account established in section 69.021, subdivision 11
289.14 	477C.03, subdivision 4, any per-year-of-service allocation under section 144E.45, subdivision 
289.15 	2, paragraph (c), that was not made for an individual, and investment earnings on those 
289.16 	accumulated proceeds. The Cooper/Sams volunteer ambulance account must be managed 
289.17 	by the commissioner of management and budget and the State Board of Investment. From 
289.18 	the Cooper/Sams volunteer ambulance account to the trust account there must be transferred 
289.19 	to the Cooper/Sams volunteer ambulance trust account, as the Cooper/Sams volunteer 
289.20 	ambulance account balance permits, the following amounts:
289.21 	(1) an amount equal to any general fund appropriation to the Cooper/Sams volunteer 
289.22 	ambulance trust account for that fiscal year; and
289.23 	(2) an amount equal to the percentage of the remaining balance in the account after the 
289.24 	deduction of the amount under clause (1), as specified for the applicable fiscal year:

289.25	Fiscal year
	Percentage
	
289.26		1995
	20
		
289.27		1996
	40
		
289.28		1997
	50
		
289.29		1998
	60
		
289.30		1999
	70
		
289.31		2000
	80
		
289.32		2001
	90
		
289.33		2002 and thereafter
	100

290.1 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

290.2 	Sec. 3. Minnesota Statutes 2018, section 297I.20, subdivision 3, is amended to read:
290.3 		Subd. 3.Historic structure rehabilitation credit. An insurance company may claim 
290.4 	a credit against the premiums tax imposed under this chapter equal to the amount of the 
290.5 	credit certificate issued to it, or to a person who has assigned the credit to the insurance 
290.6 	company, under section 290.0681. If the amount of the credit exceeds the liability for tax 
290.7 	under this chapter, the commissioner shall refund the excess to the insurance company. An 
290.8 	amount sufficient to pay the refunds under this section is appropriated to the commissioner 
290.9 	from the general fund. This credit does not affect the calculation of police and fire state aid 
290.10 	under section 69.021 477B.03 and police state aid under section 477C.03.

290.11 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

290.12 	Sec. 4. Minnesota Statutes 2018, section 353G.01, subdivision 9, is amended to read:
290.13 		Subd. 9.Municipality. "Municipality" means a governmental entity specified in section 
290.14 	69.011, subdivision 1, paragraph (b), clauses (1), (2), and (5) 477B.01, subdivision 10, a 
290.15 	city or township that has entered into a contract with an independent nonprofit firefighting 
290.16 	corporation, or a city or township that has entered into a contract with a joint powers entity 
290.17 	established under section 471.59.

290.18 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

290.19 	Sec. 5. Minnesota Statutes 2018, section 353G.05, subdivision 2, is amended to read:
290.20 		Subd. 2.Election of coverage; lump sum. (a) The process for electing coverage of 
290.21 	volunteer firefighters by the lump-sum retirement division is initiated by a request to the 
290.22 	executive director for a cost analysis of the prospective retirement coverage under the 
290.23 	lump-sum retirement division.
290.24 	(b) If the volunteer firefighters are currently covered by a lump-sum volunteer firefighter 
290.25 	relief association or a defined contribution volunteer firefighter relief association governed 
290.26 	by chapter 424A, the cost analysis of the prospective retirement coverage must be requested 
290.27 	jointly by the secretary of the volunteer firefighter relief association, following approval of 
290.28 	the request by the board of the volunteer firefighter relief association, and the chief 
290.29 	administrative officer of the entity associated with the relief association, following approval 
290.30 	of the request by the governing body of the entity associated with the relief association. If 
290.31 	the relief association is associated with more than one entity, the chief administrative officer 
290.32 	of each associated entity must execute the request. If the volunteer firefighters are not 
291.1 	currently covered by a volunteer firefighter relief association, the cost analysis of the 
291.2 	prospective retirement coverage must be requested by the chief administrative officer of 
291.3 	the entity operating the fire department. The request must be made in writing and must be 
291.4 	made on a form prescribed by the executive director.
291.5 	(c) The cost analysis of the prospective retirement coverage by the lump-sum retirement 
291.6 	division of the statewide retirement plan must be based on the service pension amount under 
291.7 	section 353G.11 closest to the service pension amount provided by the volunteer firefighter 
291.8 	relief association if the relief association is a lump-sum defined benefit plan, or the amount 
291.9 	equal to 95 percent of the most current average account balance per relief association member 
291.10 	if the relief association is a defined contribution plan, or to the lowest service pension amount 
291.11 	under section 353G.11 if there is no volunteer firefighter relief association, rounded up, and 
291.12 	any other service pension amount designated by the requester or requesters. The cost analysis 
291.13 	must be prepared using a mathematical procedure certified as accurate by an approved 
291.14 	actuary retained by the Public Employees Retirement Association.
291.15 	(d) If a cost analysis is requested and a volunteer firefighters' firefighters relief association 
291.16 	exists that has filed the information required under section 69.051 424A.014 in a timely 
291.17 	fashion, upon request by the executive director, the state auditor shall provide the most 
291.18 	recent data available on the financial condition of the volunteer firefighter relief association, 
291.19 	the most recent firefighter demographic data available, and a copy of the current relief 
291.20 	association bylaws. If a cost analysis is requested, but no volunteer firefighter relief 
291.21 	association exists, the chief administrative officer of the entity operating the fire department 
291.22 	shall provide the demographic information on the volunteer firefighters serving as members 
291.23 	of the fire department requested by the executive director.

291.24 	EFFECTIVE DATE. This section is effective July 1, 2019.

291.25 	Sec. 6. Minnesota Statutes 2018, section 353G.08, subdivision 1, is amended to read:
291.26 		Subdivision 1.Annual funding requirements; lump-sum retirement division. (a) 
291.27 	Annually, the executive director shall determine the funding requirements of each account 
291.28 	in the lump-sum retirement division of the voluntary statewide volunteer firefighter retirement 
291.29 	plan on or before August 1. The funding requirements computed under this subdivision 
291.30 	must be determined using a mathematical procedure developed and certified as accurate by 
291.31 	the approved actuary retained by the Public Employees Retirement Association and must 
291.32 	be based on present value factors using a six percent interest rate, without any decrement 
291.33 	assumptions. The funding requirements must be certified to the entity or entities associated 
291.34 	with the fire department whose active firefighters are covered by the retirement plan.
292.1 	(b) The overall funding balance of each lump-sum account for the current calendar year 
292.2 	must be determined in the following manner:
292.3 	(1) The total accrued liability for all active and deferred members of the account as of 
292.4 	December 31 of the current year must be calculated based on the good time service credit 
292.5 	of active and deferred members as of that date.
292.6 	(2) The total present assets of the account projected to December 31 of the current year, 
292.7 	including receipts by and disbursements from the account anticipated to occur on or before 
292.8 	December 31, must be calculated. To the extent possible, the market value of assets must 
292.9 	be utilized in making this calculation.
292.10 	(3) The amount of the total present assets calculated under clause (2) must be subtracted 
292.11 	from the amount of the total accrued liability calculated under clause (1). If the amount of 
292.12 	total present assets exceeds the amount of the total accrued liability, then the account is 
292.13 	considered to have a surplus over full funding. If the amount of the total present assets is 
292.14 	less than the amount of the total accrued liability, then the account is considered to have a 
292.15 	deficit from full funding. If the amount of total present assets is equal to the amount of the 
292.16 	total accrued liability, then the special fund is considered to be fully funded.
292.17 	(c) The financial requirements of each lump-sum account for the following calendar 
292.18 	year must be determined in the following manner:
292.19 	(1) The total accrued liability for all active and deferred members of the account as of 
292.20 	December 31 of the calendar year next following the current calendar year must be calculated 
292.21 	based on the good time service used in the calculation under paragraph (b), clause (1), 
292.22 	increased by one year.
292.23 	(2) The increase in the total accrued liability of the account for the following calendar 
292.24 	year over the total accrued liability of the account for the current year must be calculated.
292.25 	(3) The amount of administrative expenses of the account must be calculated by 
292.26 	multiplying the per-person dollar amount of the administrative expenses for the most recent 
292.27 	prior calendar year by the number of active and deferred firefighters reported to PERA on 
292.28 	the most recent good time service credit certification form for each account.
292.29 	(4) If the account is fully funded, the financial requirement of the account for the 
292.30 	following calendar year is the total of the amounts calculated under clauses (2) and (3).
292.31 	(5) If the account has a deficit from full funding, the financial requirement of the account 
292.32 	for the following calendar year is the total of the amounts calculated under clauses (2) and 
293.1 	(3) plus an amount equal to one-tenth of the amount of the deficit from full funding of the 
293.2 	account.
293.3 	(6) If the account has a surplus over full funding, the financial requirement of the account 
293.4 	for the following calendar year is the financial requirement of the account calculated as 
293.5 	though the account was fully funded under clause (4) and, if the account has also had a 
293.6 	surplus over full funding during the prior two years, additionally reduced by an amount 
293.7 	equal to one-tenth of the amount of the surplus over full funding of the account.
293.8 	(d) The required contribution of the entity or entities associated with the fire department 
293.9 	whose active firefighters are covered by the lump-sum retirement division is the annual 
293.10 	financial requirements of the lump-sum account of the retirement plan under paragraph (c) 
293.11 	reduced by the amount of any fire state aid payable under sections 69.011 to 69.051 chapter 
293.12 	477B or police and firefighter retirement supplemental state aid payable under section 
293.13 	423A.022 that is reasonably anticipated to be received by the retirement plan attributable 
293.14 	to the entity or entities during the following calendar year, and an amount of interest on the 
293.15 	assets projected to be received during the following calendar year calculated at the rate of 
293.16 	six percent per annum. The required contribution must be allocated between the entities if 
293.17 	more than one entity is involved. A reasonable amount of anticipated fire state aid is an 
293.18 	amount that does not exceed the fire state aid actually received in the prior year multiplied 
293.19 	by the factor 1.035.
293.20 	(e) The required contribution calculated in paragraph (d) must be paid to the retirement 
293.21 	plan on or before December 31 of the year for which it was calculated. If the contribution 
293.22 	is not received by the retirement plan by December 31, it is payable with interest at an 
293.23 	annual compound rate of six percent from the date due until the date payment is received 
293.24 	by the retirement plan. If the entity does not pay the full amount of the required contribution, 
293.25 	the executive director shall collect the unpaid amount under section 353.28, subdivision 6.

293.26 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

293.27 	Sec. 7. Minnesota Statutes 2018, section 353G.08, subdivision 1a, is amended to read:
293.28 		Subd. 1a.Annual funding requirements; monthly benefit retirement division. (a) 
293.29 	Annually, the executive director shall determine the funding requirements of each monthly 
293.30 	benefit account in the voluntary statewide volunteer firefighter retirement plan on or before 
293.31 	August 1.
293.32 	(b) The executive director must determine the funding requirements of a monthly benefit 
293.33 	account under this subdivision from:
294.1 	(1) the most recent actuarial valuation normal cost, administrative expense, including 
294.2 	the cost of a regular actuarial valuation, and amortization results for the account determined 
294.3 	by the approved actuary retained by the retirement association under sections 356.215 and 
294.4 	356.216; and
294.5 	(2) the standards for actuarial work, utilizing a six percent interest rate actuarial 
294.6 	assumption and other actuarial assumptions approved under section 356.215, subdivision 
294.7 	18:
294.8 	(i) with that portion of any unfunded actuarial accrued liability attributable to a benefit 
294.9 	increase to be amortized over a period of 20 years from the date of the benefit change;
294.10 	(ii) with that portion of any unfunded actuarial accrued liability attributable to an 
294.11 	assumption change or an actuarial method change to be amortized over a period of 20 years 
294.12 	from the date of the assumption or method change;
294.13 	(iii) with that portion of any unfunded actuarial accrued liability attributable to an 
294.14 	investment loss to be amortized over a period of ten years from the date of investment loss; 
294.15 	and
294.16 	(iv) with the balance of any net unfunded actuarial accrued liability to be amortized over 
294.17 	a period of five years from the date of the actuarial valuation.
294.18 	(c) The required contributions of the entity or entities associated with the fire department 
294.19 	whose active firefighters are covered by the monthly benefit retirement division are the 
294.20 	annual financial requirements of the monthly benefit account of the retirement plan under 
294.21 	paragraph (b) reduced by the amount of any fire state aid payable under sections 69.011 to 
294.22 	69.051 chapter 477B, or any police and firefighter retirement supplemental state aid payable 
294.23 	under section 423A.022, that is reasonably anticipated to be received by the retirement plan 
294.24 	attributable to the entity or entities during the following calendar year. The required 
294.25 	contribution must be allocated between the entities if more than one entity is involved. A 
294.26 	reasonable amount of anticipated fire state aid is an amount that does not exceed the fire 
294.27 	state aid actually received in the prior year multiplied by the factor 1.035.
294.28 	(d) The required contribution calculated in paragraph (c) must be paid to the retirement 
294.29 	plan on or before December 31 of the year for which it was calculated. If the contribution 
294.30 	is not received by the retirement plan by December 31, it is payable with interest at an 
294.31 	annual compound rate of six percent from the date due until the date payment is received 
294.32 	by the retirement plan. If the entity does not pay the full amount of the required contribution, 
294.33 	the executive director shall collect the unpaid amount under section 353.28, subdivision 6.

295.1 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

295.2 	Sec. 8. Minnesota Statutes 2018, section 353G.17, subdivision 2, is amended to read:
295.3 		Subd. 2.Approval by the relief association. (a) Before a transfer of records, assets, 
295.4 	and liabilities from the retirement plan to a relief association may occur, the board of trustees 
295.5 	of the relief association shall adopt resolutions as follows:
295.6 	(1) approving and accepting the transfer of records, assets, and liabilities from the 
295.7 	retirement plan; and
295.8 	(2) amending the bylaws of the relief association as necessary to add the firefighters 
295.9 	whose benefits are being transferred from the retirement plan and to provide that each benefit 
295.10 	being transferred retains vesting, distribution, and other rights to which the firefighter, for 
295.11 	whom the benefit is being transferred, is entitled under the terms of the retirement plan to 
295.12 	the date of the transfer.
295.13 	The board of trustees shall file a copy of the resolutions with the executive director.
295.14 	(b) The board of trustees of the relief association shall file with the state auditor the 
295.15 	following:
295.16 	(1) a copy of the resolutions required under paragraph (a);
295.17 	(2) a copy of the bylaws of the relief association and any bylaw amendments;
295.18 	(3) a copy of the relief association's investment policy;
295.19 	(4) a statement that a board of trustees has been duly elected and each trustee's name, 
295.20 	address, telephone number, and e-mail address, if any;
295.21 	(5) a copy of the most recent annual financial, investment, and plan administration report 
295.22 	filed under section 69.051 424A.014, unless the due date for the first report has not yet 
295.23 	occurred; and
295.24 	(6) a copy of the documentation indicating that a special fund has been established with 
295.25 	a financial institution to receive a transfer of assets from the retirement plan.
295.26 	(c) Upon receipt of the information and documents required under paragraph (b), the 
295.27 	state auditor shall issue to the relief association and the executive director written 
295.28 	confirmation of receipt of all required information and documents.

295.29 	EFFECTIVE DATE. This section is effective July 1, 2019.

296.1 	Sec. 9. Minnesota Statutes 2018, section 356.20, subdivision 4a, is amended to read:
296.2 		Subd. 4a.Financial report for police or firefighters relief association. For any police 
296.3 	or firefighter's firefighters relief association referred to in subdivision 2, clause (10) or (11), 
296.4 	a financial report that is duly filed and that meets the requirements of section 69.051
296.5 	424A.014 is deemed to have met the requirements of subdivision 4.

296.6 	EFFECTIVE DATE. This section is effective July 1, 2019.

296.7 	Sec. 10. Minnesota Statutes 2018, section 356.219, subdivision 8, is amended to read:
296.8 		Subd. 8.Timing of reports. (a) For the Bloomington Fire Department Relief Association 
296.9 	and the volunteer firefighter relief associations, the information required under this section 
296.10 	must be submitted by the due date for reports required under section 69.051, subdivision 1
296.11 	or 1a 424A.014, subdivision 1 or 2, as applicable. If a relief association satisfies the definition 
296.12 	of a fully invested plan under subdivision 1, paragraph (b), for the calendar year covered 
296.13 	by the report required under section 69.051, subdivision 1 or 1a 424A.014, subdivision 1 
296.14 	or 2, as applicable, the chief administrative officer of the covered pension plan shall certify 
296.15 	that compliance on a form prescribed by the state auditor. The state auditor shall transmit 
296.16 	annually to the State Board of Investment a list or lists of covered pension plans which 
296.17 	submitted certifications in order to facilitate reporting by the State Board of Investment 
296.18 	under paragraph (c).
296.19 	(b) For the St. Paul Teachers Retirement Fund Association and the University of 
296.20 	Minnesota faculty supplemental retirement plan, the information required under this section 
296.21 	must be submitted to the state auditor by June 1 of each year.
296.22 	(c) The State Board of Investment, on behalf of pension funds specified in subdivision 
296.23 	1, paragraph (c), shall report information required under this section by September 1 of each 
296.24 	year.

296.25 	EFFECTIVE DATE. This section is effective July 1, 2019.

296.26 	Sec. 11. Minnesota Statutes 2018, section 423A.02, subdivision 1b, is amended to read:
296.27 		Subd. 1b.Additional amortization state aid. (a) Annually, the commissioner shall 
296.28 	allocate the additional amortization state aid, if any, including any state aid in excess of the 
296.29 	limitation in subdivision 4, on the following basis:
296.30 	(1) 47.1 percent to the city of Minneapolis to defray the employer costs associated with 
296.31 	police and firefighter retirement coverage;
297.1 	(2) 25.8 percent as additional funding to support the minimum fire state aid for volunteer 
297.2 	firefighter relief associations under section 69.021, subdivision 7, paragraph (d) 477B.03, 
297.3 	subdivision 5;
297.4 	(3) 12.9 percent to the city of Duluth to defray employer costs associated with police 
297.5 	and firefighter retirement coverage;
297.6 	(4) 12.9 percent to the St. Paul Teachers Retirement Fund Association if the investment 
297.7 	performance requirement of paragraph (c) is met; and
297.8 	(5) 1.3 percent to the city of Virginia to defray the employer contribution under section 
297.9 	353.665, subdivision 8, paragraph (d).
297.10 	If there is no additional employer contribution under section 353.665, subdivision 8, 
297.11 	paragraph (b), certified under subdivision 1, paragraph (d), clause (2), with respect to the 
297.12 	former Minneapolis Police Relief Association and the former Minneapolis Fire Department 
297.13 	Relief Association, the commissioner shall allocate that 47.1 percent of the aid as follows: 
297.14 	49 percent to the Teachers Retirement Association, 21 percent to the St. Paul Teachers 
297.15 	Retirement Fund Association, and 30 percent as additional funding to support minimum 
297.16 	fire state aid for volunteer firefighter relief associations under section 69.021, subdivision 
297.17 	7, paragraph (d) 477B.03, subdivision 5. If there is no employer contribution by the city of 
297.18 	Virginia under section 353.665, subdivision 8, paragraph (d), for the former Virginia Fire 
297.19 	Department Relief Association certified on or before June 30 by the executive director of 
297.20 	the Public Employees Retirement Association, the commissioner shall allocate that 1.3 
297.21 	percent of the aid as follows: 49 percent to the Teachers Retirement Association, 21 percent 
297.22 	to the St. Paul Teachers Retirement Fund Association, and 30 percent as additional funding 
297.23 	to support minimum fire state aid for volunteer firefighter relief associations under section 
297.24 	69.021, subdivision 7, paragraph (d) 477B.03, subdivision 5.
297.25 	(b) The allocation must be made by the commissioner of revenue on October 1 annually.
297.26 	(c) With respect to the St. Paul Teachers Retirement Fund Association, annually, if the 
297.27 	teacher's association five-year average time-weighted rate of investment return does not 
297.28 	equal or exceed the performance of a composite portfolio assumed passively managed 
297.29 	(indexed) invested ten percent in cash equivalents, 60 percent in bonds and similar debt 
297.30 	securities, and 30 percent in domestic stock calculated using the formula under section 
297.31 	11A.04, clause (11), the aid allocation to the retirement fund under this section ceases until 
297.32 	the five-year annual rate of investment return equals or exceeds the performance of that 
297.33 	composite portfolio.
298.1 	(d) The amounts required under this subdivision are the amounts annually appropriated 
298.2 	to the commissioner of revenue under section 69.021, subdivision 11 477B.03, subdivision 
298.3 	5, paragraph (d), if any, and the aid amounts in excess of the limitation in subdivision 4.

298.4 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

298.5 	Sec. 12. Minnesota Statutes 2018, section 423A.02, subdivision 3, is amended to read:
298.6 		Subd. 3.Reallocation of amortization state aid. (a) Seventy percent of the difference 
298.7 	between $5,720,000 and the current year amortization aid distributed under subdivision 1 
298.8 	that is not distributed for any reason to a municipality must be distributed by the 
298.9 	commissioner of revenue according to this paragraph. The commissioner shall distribute 
298.10 	60 percent of the amounts derived under this paragraph to the Teachers Retirement 
298.11 	Association, and 40 percent to the St. Paul Teachers Retirement Fund Association to fund 
298.12 	the unfunded actuarial accrued liabilities of the respective funds. These payments must be 
298.13 	made on July 15 each fiscal year. If the St. Paul Teachers Retirement Fund Association or 
298.14 	the Teachers Retirement Association satisfies subdivision 5, eligibility for its portion of this 
298.15 	aid ceases. Amounts remaining in the undistributed balance account at the end of the 
298.16 	biennium if aid eligibility ceases cancel to the general fund.
298.17 	(b) In order to receive amortization aid under paragraph (a), before June 30 annually 
298.18 	Independent School District No. 625, St. Paul, must make an additional contribution of 
298.19 	$800,000 each year to the St. Paul Teachers Retirement Fund Association.
298.20 	(c) Thirty percent of the difference between $5,720,000 and the current year amortization 
298.21 	aid under subdivision 1 that is not distributed for any reason to a municipality must be 
298.22 	distributed under section 69.021, subdivision 7, paragraph (d) 477B.03, subdivision 5, as 
298.23 	additional funding to support a minimum fire state aid amount for volunteer firefighter relief 
298.24 	associations.

298.25 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

298.26 	Sec. 13. Minnesota Statutes 2018, section 423A.022, subdivision 2, is amended to read:
298.27 		Subd. 2.Allocation. (a) Of the total amount appropriated as supplemental state aid:
298.28 	(1) 58.064 percent must be paid to the executive director of the Public Employees 
298.29 	Retirement Association for deposit in the public employees police and fire retirement fund 
298.30 	established by section 353.65, subdivision 1;
298.31 	(2) 35.484 percent must be paid to municipalities other than municipalities solely 
298.32 	employing firefighters with retirement coverage provided by the public employees police 
299.1 	and fire retirement plan which qualified to receive fire state aid in that calendar year, allocated 
299.2 	in proportion to the most recent amount of fire state aid paid under section 69.021, 
299.3 	subdivision 7 477B.04, for the municipality bears to the most recent total fire state aid for 
299.4 	all municipalities other than the municipalities solely employing firefighters with retirement 
299.5 	coverage provided by the public employees police and fire retirement plan paid under section 
299.6 	69.021, subdivision 7 477B.04, with the allocated amount for fire departments participating 
299.7 	in the voluntary statewide lump-sum volunteer firefighter retirement plan paid to the 
299.8 	executive director of the Public Employees Retirement Association for deposit in the fund 
299.9 	established by section 353G.02, subdivision 3, and credited to the respective account and 
299.10 	with the balance paid to the treasurer of each municipality for transmittal within 30 days of 
299.11 	receipt to the treasurer of the applicable volunteer firefighter relief association for deposit 
299.12 	in its special fund; and
299.13 	(3) 6.452 percent must be paid to the executive director of the Minnesota State Retirement 
299.14 	System for deposit in the state patrol retirement fund.
299.15 	(b) For purposes of this section, the term "municipalities" includes independent nonprofit 
299.16 	firefighting corporations that participate in the voluntary statewide lump-sum volunteer 
299.17 	firefighter retirement plan under chapter 353G or with subsidiary volunteer firefighter relief 
299.18 	associations operating under chapter 424A.

299.19 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

299.20 	Sec. 14. Minnesota Statutes 2018, section 423A.022, subdivision 4, is amended to read:
299.21 		Subd. 4.Payments; conditions prerequisite. (a) The payments under this section must 
299.22 	be made on October 1 each year, with interest at one percent for each month, or portion of 
299.23 	a month, that the amount remains unpaid after October 1. Any necessary adjustments must 
299.24 	be made to subsequent payments.
299.25 	(b) The provisions of sections 69.011 to 69.051 chapter 477B and section 424A.014 that 
299.26 	prevent municipalities and relief associations from being eligible for, or receiving fire state 
299.27 	aid under sections 69.011 to 69.051 chapter 477B and section 424A.014 until the applicable 
299.28 	financial reporting requirements have been complied with, apply to the amounts payable to 
299.29 	municipalities and relief associations under this section.

299.30 	EFFECTIVE DATE. This section is effective July 1, 2019, except the references to 
299.31 	Minnesota Statutes, chapter 477B, are effective for aids payable in 2020 and thereafter.

300.1 	Sec. 15. Minnesota Statutes 2018, section 424A.016, subdivision 2, is amended to read:
300.2 		Subd. 2.Defined contribution service pension eligibility. (a) A relief association, 
300.3 	when its articles of incorporation or bylaws so provide, may pay out of the assets of its 
300.4 	special fund a defined contribution service pension to each of its members who:
300.5 	(1) separates from active service with the fire department;
300.6 	(2) reaches age 50;
300.7 	(3) completes at least five years of active service as an active member of the fire 
300.8 	department to which the relief association is associated;
300.9 	(4) completes at least five years of active membership with the relief association before 
300.10 	separation from active service; and
300.11 	(5) complies with any additional conditions as to age, service, and membership that are 
300.12 	prescribed by the bylaws of the relief association.
300.13 	(b) In the case of a member who has completed at least five years of active service as 
300.14 	an active member of the fire department to which the relief association is associated on the 
300.15 	date that the relief association is established and incorporated, the requirement that the 
300.16 	member complete at least five years of active membership with the relief association before 
300.17 	separation from active service may be waived by the board of trustees of the relief association 
300.18 	if the member completes at least five years of inactive membership with the relief association 
300.19 	before the date of the payment of the service pension. During the period of inactive 
300.20 	membership, the member is not entitled to receive any disability benefit coverage, is not 
300.21 	entitled to receive additional individual account allocation of fire state aid or municipal 
300.22 	contribution towards a service pension, and is considered to have the status of a person 
300.23 	entitled to a deferred service pension.
300.24 	(c) The service pension earned by a volunteer under this chapter and the articles of 
300.25 	incorporation and bylaws of the relief association may be paid whether or not the municipality 
300.26 	or independent nonprofit firefighting corporation to which the relief association is associated 
300.27 	qualifies for the receipt of fire state aid under chapter 69 477B.

300.28 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

300.29 	Sec. 16. Minnesota Statutes 2018, section 424A.016, subdivision 4, is amended to read:
300.30 		Subd. 4.Individual accounts. (a) An individual account must be established for each 
300.31 	firefighter who is a member of the relief association.
300.32 	(b) To each individual active member account must be credited an equal share of:
301.1 	(1) any amounts of fire state aid and police and firefighter retirement supplemental state 
301.2 	aid received by the relief association;
301.3 	(2) any amounts of municipal contributions to the relief association raised from levies 
301.4 	on real estate or from other available municipal revenue sources exclusive of fire state aid; 
301.5 	and
301.6 	(3) any amounts equal to the share of the assets of the special fund to the credit of:
301.7 	(i) any former member who terminated active service with the fire department to which 
301.8 	the relief association is associated before meeting the minimum service requirement provided 
301.9 	for in subdivision 2, paragraph (b), and has not returned to active service with the fire 
301.10 	department for a period no shorter than five years; or
301.11 	(ii) any retired member who retired before obtaining a full nonforfeitable interest in the 
301.12 	amounts credited to the individual member account under subdivision 2, paragraph (b), and 
301.13 	any applicable provision of the bylaws of the relief association. In addition, any investment 
301.14 	return on the assets of the special fund must be credited in proportion to the share of the 
301.15 	assets of the special fund to the credit of each individual active member account. 
301.16 	Administrative expenses of the relief association payable from the special fund may be 
301.17 	deducted from individual accounts in a manner specified in the bylaws of the relief 
301.18 	association.
301.19 	(c) If the bylaws so permit and as the bylaws define, the relief association may credit 
301.20 	any investment return on the assets of the special fund to the accounts of inactive members.
301.21 	(d) Amounts to be credited to individual accounts must be allocated uniformly for all 
301.22 	years of active service and allocations must be made for all years of service, except for caps 
301.23 	on service credit if so provided in the bylaws of the relief association. Amounts forfeited 
301.24 	under paragraph (b), clause (3), before a resumption of active service and membership under 
301.25 	section 424A.01, subdivision 6, remain forfeited and may not be reinstated upon the 
301.26 	resumption of active service and membership. The allocation method may utilize monthly 
301.27 	proration for fractional years of service, as the bylaws or articles of incorporation of the 
301.28 	relief association so provide. The bylaws or articles of incorporation may define a "month," 
301.29 	but the definition must require a calendar month to have at least 16 days of active service. 
301.30 	If the bylaws or articles of incorporation do not define a "month," a "month" is a completed 
301.31 	calendar month of active service measured from the member's date of entry to the same date 
301.32 	in the subsequent month.
301.33 	(e) At the time of retirement under subdivision 2 and any applicable provision of the 
301.34 	bylaws of the relief association, a retiring member is entitled to that portion of the assets of 
302.1 	the special fund to the credit of the member in the individual member account which is 
302.2 	nonforfeitable under subdivision 3 and any applicable provision of the bylaws of the relief 
302.3 	association based on the number of years of service to the credit of the retiring member.
302.4 	(f) Annually, the secretary of the relief association shall certify the individual account 
302.5 	allocations to the state auditor at the same time that the annual financial statement or financial 
302.6 	report and audit of the relief association, whichever applies, is due under section 69.051
302.7 	424A.014.

302.8 	EFFECTIVE DATE. This section is effective July 1, 2019.

302.9 	Sec. 17. Minnesota Statutes 2018, section 424A.02, subdivision 1, is amended to read:
302.10 		Subdivision 1.Authorization. (a) A defined benefit relief association, when its articles 
302.11 	of incorporation or bylaws so provide, may pay out of the assets of its special fund a defined 
302.12 	benefit service pension to each of its members who: (1) separates from active service with 
302.13 	the fire department; (2) reaches age 50; (3) completes at least five years of active service 
302.14 	as an active member of the fire department to which the relief association is associated; (4) 
302.15 	completes at least five years of active membership with the relief association before 
302.16 	separation from active service; and (5) complies with any additional conditions as to age, 
302.17 	service, and membership that are prescribed by the bylaws of the relief association. A service 
302.18 	pension computed under this section may be prorated monthly for fractional years of service 
302.19 	as the bylaws or articles of incorporation of the relief association so provide. The bylaws 
302.20 	or articles of incorporation may define a "month," but the definition must require a calendar 
302.21 	month to have at least 16 days of active service. If the bylaws or articles of incorporation 
302.22 	do not define a "month," a "month" is a completed calendar month of active service measured 
302.23 	from the member's date of entry to the same date in the subsequent month. The service 
302.24 	pension earned by a volunteer firefighter under this chapter and the articles of incorporation 
302.25 	and bylaws of the volunteer firefighters relief association may be paid whether or not the 
302.26 	municipality or independent nonprofit firefighting corporation to which the relief association 
302.27 	is associated qualifies for the receipt of fire state aid under chapter 69 477B.
302.28 	(b) In the case of a member who has completed at least five years of active service as 
302.29 	an active member of the fire department to which the relief association is associated on the 
302.30 	date that the relief association is established and incorporated, the requirement that the 
302.31 	member complete at least five years of active membership with the relief association before 
302.32 	separation from active service may be waived by the board of trustees of the relief association 
302.33 	if the member completes at least five years of inactive membership with the relief association 
302.34 	before the date of the payment of the service pension. During the period of inactive 
303.1 	membership, the member is not entitled to receive disability benefit coverage, is not entitled 
303.2 	to receive additional service credit towards computation of a service pension, and is 
303.3 	considered to have the status of a person entitled to a deferred service pension under 
303.4 	subdivision 7.
303.5 	(c) No municipality, independent nonprofit firefighting corporation, or joint powers 
303.6 	entity may delegate the power to take final action in setting a service pension or ancillary 
303.7 	benefit amount or level to the board of trustees of the relief association or to approve in 
303.8 	advance a service pension or ancillary benefit amount or level equal to the maximum amount 
303.9 	or level that this chapter would allow rather than a specific dollar amount or level.

303.10 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

303.11 	Sec. 18. Minnesota Statutes 2018, section 424A.02, subdivision 3a, is amended to read:
303.12 		Subd. 3a.Penalty for paying pension greater than applicable maximum. (a) If a 
303.13 	defined benefit relief association pays a service pension greater than the maximum service 
303.14 	pension associated with the applicable average amount of available financing per active 
303.15 	covered firefighter under the table in subdivision 3, paragraph (c) or (d), whichever applies, 
303.16 	the maximum service pension under subdivision 3, paragraph (f), or the applicable maximum 
303.17 	service pension amount specified in subdivision 3, paragraph (g), whichever is less, the 
303.18 	state auditor shall:
303.19 	(1) disqualify the municipality or the independent nonprofit firefighting corporation 
303.20 	associated with the relief association from receiving fire state aid by making the appropriate 
303.21 	notification to the municipality and the commissioner of revenue, with the disqualification 
303.22 	applicable for the next apportionment and payment of fire state aid; and
303.23 	(2) order the treasurer of the applicable relief association to recover the amount of the 
303.24 	overpaid service pension or pensions from any retired firefighter who received an 
303.25 	overpayment.
303.26 	(b) Fire state aid amounts from disqualified municipalities for the period of 
303.27 	disqualifications under paragraph (a), clause (1), must be credited to the amount of fire 
303.28 	insurance premium tax proceeds available for the next subsequent fire state aid 
303.29 	apportionment.
303.30 	(c) The amount of any overpaid service pension recovered under paragraph (a), clause 
303.31 	(2), must be credited to the amount of fire insurance premium tax proceeds available for 
303.32 	the next subsequent fire state aid apportionment.
304.1 	(d) The determination of the state auditor that a relief association has paid a service 
304.2 	pension greater than the applicable maximum must be made on the basis of the information 
304.3 	filed by the relief association and the municipality with the state auditor under sections 
304.4 	69.011, subdivision 2, and 69.051, subdivision 1 or 1a, whichever applies, this chapter and 
304.5 	any other relevant information that comes to the attention of the state auditor. The 
304.6 	determination of the state auditor is final. An aggrieved municipality, relief association, or 
304.7 	person may appeal the determination under section 480A.06.
304.8 	(e) The state auditor may certify, upon learning that a relief association overpaid a service 
304.9 	pension based on an error in the maximum service pension calculation, the municipality or 
304.10 	independent nonprofit firefighting corporation associated with the relief association for fire 
304.11 	state aid if (1) there is evidence that the error occurred in good faith, and (2) the relief 
304.12 	association has initiated recovery of any overpayment amount. Notwithstanding paragraph 
304.13 	(c), all overpayments recovered under this paragraph must be credited to the relief 
304.14 	association's special fund.

304.15 	EFFECTIVE DATE. This section is effective July 1, 2019.

304.16 	Sec. 19. Minnesota Statutes 2018, section 424A.02, subdivision 10, is amended to read:
304.17 		Subd. 10.Local approval of bylaw amendments; filing requirements. (a) Each defined 
304.18 	benefit relief association to which this section applies must file a revised copy of its governing 
304.19 	bylaws with the state auditor upon the adoption of any amendment to its governing bylaws 
304.20 	by the relief association or upon the approval of any amendment to its governing bylaws 
304.21 	granted by the governing body of each municipality served by the fire department to which 
304.22 	the relief association is directly associated. Failure of the relief association to file a copy of 
304.23 	the bylaws or any bylaw amendments with the state auditor disqualifies the municipality 
304.24 	from the distribution of any future fire state aid until this filing requirement has been 
304.25 	completed.
304.26 	(b) If the special fund of the relief association does not have a surplus over full funding 
304.27 	under section 424A.092, subdivision 3, paragraph (c), clause (5), or 424A.093, subdivision 
304.28 	4, and if the municipality is required to provide financial support to the special fund of the 
304.29 	relief association under section 424A.092 or 424A.093, no bylaw amendment which would 
304.30 	affect the amount of, the manner of payment of, or the conditions for qualification for service 
304.31 	pensions or ancillary benefits or disbursements other than administrative expenses authorized 
304.32 	under section 69.80 424A.05, subdivision 3b, payable from the special fund of the relief 
304.33 	association is effective until it has been ratified as required under section 424A.092, 
304.34 	subdivision 6, or 424A.093, subdivision 6. If the special fund of the relief association has 
305.1 	a surplus over full funding under section 424A.092, subdivision 3, or 424A.093, subdivision 
305.2 	4, and if the municipality is not required to provide financial support to the special fund 
305.3 	under this section, the relief association may adopt or amend without municipal ratification 
305.4 	its articles of incorporation or bylaws which increase or otherwise affect the service pensions 
305.5 	or ancillary benefits payable from the special fund if authorized under section 424A.092, 
305.6 	subdivision 6, or 424A.093, subdivision 6.
305.7 	(c) If the relief association pays only a lump-sum pension, the financial requirements 
305.8 	are to be determined by the board of trustees following the preparation of an estimate of 
305.9 	the expected increase in the accrued liability and annual accruing liability of the relief 
305.10 	association attributable to the change. If the relief association pays a monthly benefit service 
305.11 	pension, the financial requirements are to be determined by the board of trustees following 
305.12 	either an updated actuarial valuation including the proposed change or an estimate of the 
305.13 	expected actuarial impact of the proposed change prepared by the actuary of the relief 
305.14 	association. If a relief association adopts or amends its articles of incorporation or bylaws 
305.15 	without municipal ratification under this subdivision, and, subsequent to the amendment or 
305.16 	adoption, the financial requirements of the special fund under this section are such so as to 
305.17 	require financial support from the municipality, the provision which was implemented 
305.18 	without municipal ratification is no longer effective without municipal ratification, and any 
305.19 	service pensions or ancillary benefits payable after that date must be paid only in accordance 
305.20 	with the articles of incorporation or bylaws as amended or adopted with municipal 
305.21 	ratification.

305.22 	EFFECTIVE DATE. This section is effective July 1, 2019.

305.23 	Sec. 20. Minnesota Statutes 2018, section 424A.03, subdivision 2, is amended to read:
305.24 		Subd. 2.Penalties for violations. A municipality which has a fire department associated 
305.25 	with a relief association which violates the provisions of subdivision 1 is directly associated 
305.26 	or which contracts with an independent nonprofit firefighting corporation associated with 
305.27 	a relief association which violates the provisions of subdivision 1 is a subsidiary may not 
305.28 	be included in the apportionment of fire state aid to the applicable county auditor and police 
305.29 	and firefighter retirement supplemental state aid payable under section 69.021, subdivision 
305.30 	6, chapter 477B and section 423A.022 and may not be included in the apportionment of 
305.31 	fire state aid by the county auditor to the various municipalities under section 69.021, 
305.32 	subdivision 7 477B.03.

305.33 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

306.1 	Sec. 21. Minnesota Statutes 2018, section 424A.05, subdivision 2, is amended to read:
306.2 		Subd. 2.Special fund assets and revenues. The special fund must be credited with all 
306.3 	fire state aid and police and firefighter retirement supplemental state aid received under 
306.4 	sections 69.011 to 69.051 chapter 477B and section 423A.022, all taxes levied by or other 
306.5 	revenues received from the municipality under sections 424A.091 to 424A.096 or any 
306.6 	applicable special law requiring municipal support for the relief association, any funds or 
306.7 	property donated, given, granted or devised by any person which is specified for use for the 
306.8 	support of the special fund and any interest or investment return earned upon the assets of 
306.9 	the special fund. The treasurer of the relief association is the custodian of the assets of the 
306.10 	special fund and must be the recipient on behalf of the special fund of all revenues payable 
306.11 	to the special fund. The treasurer shall maintain adequate records documenting any 
306.12 	transaction involving the assets or the revenues of the special fund. These records and the 
306.13 	bylaws of the relief association are public and must be open for inspection by any member 
306.14 	of the relief association, any officer or employee of the state or of the municipality, or any 
306.15 	member of the public, at reasonable times and places.

306.16 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

306.17 	Sec. 22. Minnesota Statutes 2018, section 424A.05, subdivision 3, is amended to read:
306.18 		Subd. 3.Authorized disbursements from special fund. (a) Disbursements from the 
306.19 	special fund may not be made for any purpose other than one of the following:
306.20 	(1) for the payment of service pensions to retired members of the relief association if 
306.21 	authorized and paid under law and the bylaws governing the relief association;
306.22 	(2) for the purchase of an annuity for the applicable person under section 424A.015, 
306.23 	subdivision 3, for the transfer of service pension or benefit amounts to the applicable person's 
306.24 	individual retirement account under section 424A.015, subdivision 4, or to the applicable 
306.25 	person's account in the Minnesota deferred compensation plan under section 424A.015, 
306.26 	subdivision 5;
306.27 	(3) for the payment of temporary or permanent disability benefits to disabled members 
306.28 	of the relief association if authorized and paid under law and specified in amount in the 
306.29 	bylaws governing the relief association;
306.30 	(4) for the payment of survivor benefits or for the payment of a death benefit to the estate 
306.31 	of the deceased active or deferred firefighter, if authorized and paid under law and specified 
306.32 	in amount in the bylaws governing the relief association;
307.1 	(5) for the payment of the fees, dues and assessments to the Minnesota State Fire 
307.2 	Department Association and to the Minnesota State Fire Chiefs Association in order to 
307.3 	entitle relief association members to membership in and the benefits of these associations 
307.4 	or organizations;
307.5 	(6) for the payment of insurance premiums to the state Volunteer Firefighters Benefit 
307.6 	Association, or an insurance company licensed by the state of Minnesota offering casualty 
307.7 	insurance, in order to entitle relief association members to membership in and the benefits 
307.8 	of the association or organization; and
307.9 	(7) for the payment of administrative expenses of the relief association as authorized 
307.10 	under section 69.80 subdivision 3b.
307.11 	(b) Checks or authorizations for electronic fund transfers for disbursements authorized 
307.12 	by this section must be signed by the relief association treasurer and at least one other elected 
307.13 	trustee who has been designated by the board of trustees to sign the checks or authorizations. 
307.14 	A relief association may make disbursements authorized by this subdivision by electronic 
307.15 	fund transfers only if the specific method of payment and internal control policies and 
307.16 	procedures regarding the method are approved by the board of trustees.

307.17 	EFFECTIVE DATE. This section is effective July 1, 2019.

307.18 	Sec. 23. Minnesota Statutes 2018, section 424A.07, is amended to read:
307.19 	424A.07 NONPROFIT FIREFIGHTING CORPORATIONS; ESTABLISHMENT 
307.20 	OF RELIEF ASSOCIATIONS.
307.21 	Before paying any service pensions or retirement benefits under section 424A.02 or 
307.22 	before becoming entitled to receive any amounts of fire state aid upon transmittal from a 
307.23 	contracting municipality under section 69.031, subdivision 5 477B.04, subdivision 3, an 
307.24 	independent nonprofit firefighting corporation shall establish a volunteer firefighters relief 
307.25 	association governed by this chapter.

307.26 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

307.27 	Sec. 24. Minnesota Statutes 2018, section 424A.091, subdivision 3, is amended to read:
307.28 		Subd. 3.Remedy for noncompliance; determination. (a) A municipality in which 
307.29 	there exists a firefighters relief association as specified in subdivision 1 which does not 
307.30 	comply with the applicable provisions of sections 424A.091 to 424A.096 or the provisions 
307.31 	of any applicable special law relating to the funding or financing of the association does 
307.32 	not qualify initially to receive, and is not entitled subsequently to retain, fire state aid under 
308.1 	sections 69.011 to 69.051 chapter 477B until the reason for the disqualification specified 
308.2 	by the state auditor is remedied, whereupon the municipality or relief association, if otherwise 
308.3 	qualified, is entitled to again receive fire state aid for the year occurring immediately 
308.4 	subsequent to the year in which the disqualification is remedied.
308.5 	(b) The state auditor shall determine if a municipality to which a firefighters' relief 
308.6 	association is directly associated or a firefighters relief association fails to comply with the 
308.7 	provisions of sections 424A.091 to 424A.096 or the funding or financing provisions of any 
308.8 	applicable special law based upon the information contained in the annual financial report 
308.9 	of the firefighters relief association required under section 69.051 424A.014, the actuarial 
308.10 	valuation of the relief association, if applicable, the relief association officers' financial 
308.11 	requirements of the relief association and minimum municipal obligation determination 
308.12 	documentation under section 424A.092, subdivisions 3 and 4; 424A.093, subdivisions 4 
308.13 	and 5; or 424A.094, subdivision 2, if requested to be filed by the state auditor, the applicable 
308.14 	municipal or independent nonprofit firefighting corporation budget, if requested to be filed 
308.15 	by the state auditor, and any other relevant documents or reports obtained by the state 
308.16 	auditor.
308.17 	(c) The municipality or independent nonprofit firefighting corporation and the associated 
308.18 	relief association are not eligible to receive or to retain fire state aid if:
308.19 	(1) the relief association fails to prepare or to file the financial report or financial 
308.20 	statement under section 69.051 424A.014;
308.21 	(2) the relief association treasurer is not bonded in the manner and in the amount required 
308.22 	by section 69.051, subdivision 2 424A.014, subdivision 4;
308.23 	(3) the relief association officers fail to determine or improperly determine the accrued 
308.24 	liability and the annual accruing liability of the relief association under section 424A.092, 
308.25 	subdivisions 2, 2a, and 3, paragraph (c), clause (2), if applicable;
308.26 	(4) if applicable, the relief association officers fail to obtain and file a required actuarial 
308.27 	valuation or the officers file an actuarial valuation that does not contain the special fund 
308.28 	actuarial liability calculated under the entry age normal actuarial cost method, the special 
308.29 	fund current assets, the special fund unfunded actuarial accrued liability, the special fund 
308.30 	normal cost under the entry age normal actuarial cost method, the amortization requirement 
308.31 	for the special fund unfunded actuarial accrued liability by the applicable target date, a 
308.32 	summary of the applicable benefit plan, a summary of the membership of the relief 
308.33 	association, a summary of the actuarial assumptions used in preparing the valuation, and a 
309.1 	signed statement by the actuary attesting to its results and certifying to the qualifications of 
309.2 	the actuary as an approved actuary under section 356.215, subdivision 1, paragraph (c);
309.3 	(5) the municipality failed to provide a municipal contribution, or the independent 
309.4 	nonprofit firefighting corporation failed to provide a corporate contribution, in the amount 
309.5 	equal to the minimum municipal obligation if the relief association is governed under section 
309.6 	424A.092, or the amount necessary, when added to the fire state aid actually received in 
309.7 	the plan year in question, to at least equal in total the calculated annual financial requirements 
309.8 	of the special fund of the relief association if the relief association is governed under section 
309.9 	424A.093, and, if the municipal or corporate contribution is deficient, the municipality 
309.10 	failed to include the minimum municipal obligation certified under section 424A.092, 
309.11 	subdivision 3, or 424A.093, subdivision 5, in its budget and tax levy or the independent 
309.12 	nonprofit firefighting corporation failed to include the minimum corporate obligation certified 
309.13 	under section 424A.094, subdivision 2, in the corporate budget;
309.14 	(6) the defined benefit relief association did not receive municipal ratification for the 
309.15 	most recent plan amendment when municipal ratification was required under section 424A.02, 
309.16 	subdivision 10; 424A.092, subdivision 6; or 424A.093, subdivision 6;
309.17 	(7) the relief association invested special fund assets in an investment security that is 
309.18 	not authorized under section 424A.095;
309.19 	(8) the relief association had an administrative expense that is not authorized under 
309.20 	section 69.80 or424A.05, subdivision 3 or 3b, or the municipality had an expenditure that 
309.21 	is not authorized under section 424A.08;
309.22 	(9) the relief association officers fail to provide a complete and accurate public pension 
309.23 	plan investment portfolio and performance disclosure under section 356.219;
309.24 	(10) the relief association fails to obtain the acknowledgment from a broker of the 
309.25 	statement of investment restrictions under section 356A.06, subdivision 8b;
309.26 	(11) the relief association officers permitted to occur a prohibited transaction under 
309.27 	section 356A.06, subdivision 9, or 424A.04, subdivision 2a, or failed to undertake correction 
309.28 	of a prohibited transaction that did occur; or
309.29 	(12) the relief association pays a defined benefit service pension in an amount that is in 
309.30 	excess of the applicable service pension maximum under section 424A.02, subdivision 3.

309.31 	EFFECTIVE DATE. This section is effective July 1, 2019, except the reference to 
309.32 	Minnesota Statutes, chapter 477B, is effective for aids payable in 2020 and thereafter.

310.1 	Sec. 25. Minnesota Statutes 2018, section 424A.092, subdivision 3, is amended to read:
310.2 		Subd. 3.Financial requirements of relief association; minimum obligation of 
310.3 	municipality. (a) During the month of July, the officers of the relief association shall 
310.4 	determine the overall funding balance of the special fund for the current calendar year, the 
310.5 	financial requirements of the special fund for the following calendar year and the minimum 
310.6 	obligation of the municipality with respect to the special fund for the following calendar 
310.7 	year in accordance with the requirements of this subdivision.
310.8 	(b) The overall funding balance of the special fund for the current calendar year must 
310.9 	be determined in the following manner:
310.10 	(1) The total accrued liability of the special fund for all active and deferred members of 
310.11 	the relief association as of December 31 of the current year must be calculated under 
310.12 	subdivisions 2 and 2a, if applicable.
310.13 	(2) The total present assets of the special fund projected to December 31 of the current 
310.14 	year, including receipts by and disbursements from the special fund anticipated to occur on 
310.15 	or before December 31, must be calculated. To the extent possible, for those assets for which 
310.16 	a market value is readily ascertainable, the current market value as of the date of the 
310.17 	calculation for those assets must be utilized in making this calculation. For any asset for 
310.18 	which no market value is readily ascertainable, the cost value or the book value, whichever 
310.19 	is applicable, must be utilized in making this calculation.
310.20 	(3) The amount of the total present assets of the special fund calculated under clause (2) 
310.21 	must be subtracted from the amount of the total accrued liability of the special fund calculated 
310.22 	under clause (1). If the amount of total present assets exceeds the amount of the total accrued 
310.23 	liability, then the special fund is considered to have a surplus over full funding. If the amount 
310.24 	of the total present assets is less than the amount of the total accrued liability, then the 
310.25 	special fund is considered to have a deficit from full funding. If the amount of total present 
310.26 	assets is equal to the amount of the total accrued liability, then the special fund is considered 
310.27 	to be fully funded.
310.28 	(c) The financial requirements of the special fund for the following calendar year must 
310.29 	be determined in the following manner:
310.30 	(1) The total accrued liability of the special fund for all active and deferred members of 
310.31 	the relief association as of December 31 of the calendar year next following the current 
310.32 	calendar year must be calculated under subdivisions 2 and 2a, if applicable.
311.1 	(2) The increase in the total accrued liability of the special fund for the following calendar 
311.2 	year over the total accrued liability of the special fund for the current year must be calculated.
311.3 	(3) The amount of anticipated future administrative expenses of the special fund must 
311.4 	be calculated by multiplying the dollar amount of the administrative expenses of the special 
311.5 	fund for the most recent prior calendar year by the factor of 1.035.
311.6 	(4) If the special fund is fully funded, the financial requirements of the special fund for 
311.7 	the following calendar year are the total of the amounts calculated under clauses (2) and 
311.8 	(3).
311.9 	(5) If the special fund has a deficit from full funding, the financial requirements of the 
311.10 	special fund for the following calendar year are the financial requirements of the special 
311.11 	fund calculated as though the special fund were fully funded under clause (4) plus an amount 
311.12 	equal to one-tenth of the original amount of the deficit from full funding of the special fund 
311.13 	as determined under clause (2) resulting either from an increase in the amount of the service 
311.14 	pension occurring in the last ten years or from a net annual investment loss occurring during 
311.15 	the last ten years until each increase in the deficit from full funding is fully retired. The 
311.16 	annual amortization contribution under this clause may not exceed the amount of the deficit 
311.17 	from full funding.
311.18 	(6) If the special fund has a surplus over full funding, the financial requirements of the 
311.19 	special fund for the following calendar year are the financial requirements of the special 
311.20 	fund calculated as though the special fund were fully funded under clause (4) reduced by 
311.21 	an amount equal to one-tenth of the amount of the surplus over full funding of the special 
311.22 	fund.
311.23 	(d) The minimum obligation of the municipality with respect to the special fund is the 
311.24 	financial requirements of the special fund reduced by the amount of any fire state aid and 
311.25 	police and firefighter retirement supplemental state aid payable under sections 69.011 to 
311.26 	69.051chapter 477B and section 423A.022 reasonably anticipated to be received by the 
311.27 	municipality for transmittal to the special fund during the following calendar year, an amount 
311.28 	of interest on the assets of the special fund projected to the beginning of the following 
311.29 	calendar year calculated at the rate of five percent per annum, and the amount of any 
311.30 	contributions to the special fund required by the relief association bylaws from the active 
311.31 	members of the relief association reasonably anticipated to be received during the following 
311.32 	calendar year. A reasonable amount of anticipated fire state aid is an amount that does not 
311.33 	exceed the fire state aid actually received in the prior year multiplied by the factor 1.035.

311.34 	EFFECTIVE DATE. This section is effective for aids payable in 2020 and thereafter.

312.1 	Sec. 26. Minnesota Statutes 2018, section 424A.092, subdivision 4, is amended to read:
312.2 		Subd. 4.Certification of financial requirements and minimum municipal obligation; 
312.3 	levy. (a) The officers of the relief association shall certify the financial requirements of the 
312.4 	special fund of the relief association and the minimum obligation of the municipality with 
312.5 	respect to the special fund of the relief association as determined under subdivision 3 on or 
312.6 	before August 1 of each year. The certification must be made to the entity that is responsible 
312.7 	for satisfying the minimum obligation with respect to the special fund of the relief association. 
312.8 	If the responsible entity is a joint powers entity, the certification must be made in the manner 
312.9 	specified in the joint powers agreement, or if the joint powers agreement is silent on this 
312.10 	point, the certification must be made to the chair of the joint powers board.
312.11 	(b) The financial requirements of the relief association and the minimum municipal 
312.12 	obligation must be included in the financial report or financial statement under section 
312.13 	69.051 424A.014. The schedule forms related to the determination of the financial 
312.14 	requirements must be filed with the state auditor by March 31, annually, if the relief 
312.15 	association is required to file a financial statement under section 69.051, subdivision 1a
312.16 	424A.014, subdivision 2, or by June 30, annually, if the relief association is required to file 
312.17 	a financial report and audit under section 69.051, subdivision 1 424A.014, subdivision 1.
312.18 	(c) The municipality shall provide for at least the minimum obligation of the municipality 
312.19 	with respect to the special fund of the relief association by tax levy or from any other source 
312.20 	of public revenue.
312.21 	(d) The municipality may levy taxes for the payment of the minimum municipal obligation 
312.22 	without any limitation as to rate or amount and irrespective of any limitations imposed by 
312.23 	other provisions of law upon the rate or amount of taxation until the balance of the special 
312.24 	fund or any fund of the relief association has attained a specified level. In addition, any 
312.25 	taxes levied under this section must not cause the amount or rate of any other taxes levied 
312.26 	in that year or to be levied in a subsequent year by the municipality which are subject to a 
312.27 	limitation as to rate or amount to be reduced.
312.28 	(e) If the municipality does not include the full amount of the minimum municipal 
312.29 	obligations in its levy for any year, the officers of the relief association shall certify that 
312.30 	amount to the county auditor, who shall spread a levy in the amount of the certified minimum 
312.31 	municipal obligation on the taxable property of the municipality.
312.32 	(f) If the state auditor determines that a municipal contribution actually made in a plan 
312.33 	year was insufficient under section 424A.091, subdivision 3, paragraph (c), clause (5), the 
312.34 	state auditor may request a copy of the certifications under this subdivision from the relief 
313.1 	association or from the city. The relief association or the city, whichever applies, must 
313.2 	provide the certifications within 14 days of the date of the request from the state auditor.

313.3 	EFFECTIVE DATE. This section is effective July 1, 2019.

313.4 	Sec. 27. Minnesota Statutes 2018, section 424A.093, subdivision 5, is amended to read:
313.5 		Subd. 5.Minimum municipal obligation. (a) The officers of the relief association shall 
313.6 	determine the minimum obligation of the municipality with respect to the special fund of 
313.7 	the relief association for the following calendar year on or before August 1 of each year in 
313.8 	accordance with the requirements of this subdivision.
313.9 	(b) The minimum obligation of the municipality with respect to the special fund is an 
313.10 	amount equal to the financial requirements of the special fund of the relief association 
313.11 	determined under subdivision 4, reduced by the estimated amount of any fire state aid and 
313.12 	police and firefighter retirement supplemental state aid payable under sections 69.011 to 
313.13 	69.051 chapter 477B and section 423A.022 reasonably anticipated to be received by the 
313.14 	municipality for transmittal to the special fund of the relief association during the following 
313.15 	year and the amount of any anticipated contributions to the special fund required by the 
313.16 	relief association bylaws from the active members of the relief association reasonably 
313.17 	anticipated to be received during the following calendar year. A reasonable amount of 
313.18 	anticipated fire state aid is an amount that does not exceed the fire state aid actually received 
313.19 	in the prior year multiplied by the factor 1.035.
313.20 	(c) The officers of the relief association shall certify the financial requirements of the 
313.21 	special fund of the relief association and the minimum obligation of the municipality with 
313.22 	respect to the special fund of the relief association as determined under subdivision 4 and 
313.23 	this subdivision by August 1 of each year. The certification must be made to the entity that 
313.24 	is responsible for satisfying the minimum obligation with respect to the special fund of the 
313.25 	relief association. If the responsible entity is a joint powers entity, the certification must be 
313.26 	made in the manner specified in the joint powers agreement, or if the joint powers agreement 
313.27 	is silent on this point, the certification must be made to the chair of the joint powers board.
313.28 	(d) The financial requirements of the relief association and the minimum municipal 
313.29 	obligation must be included in the financial report or financial statement under section 
313.30 	69.051 424A.014.
313.31 	(e) The municipality shall provide for at least the minimum obligation of the municipality 
313.32 	with respect to the special fund of the relief association by tax levy or from any other source 
313.33 	of public revenue. The municipality may levy taxes for the payment of the minimum 
314.1 	municipal obligation without any limitation as to rate or amount and irrespective of any 
314.2 	limitations imposed by other provisions of law or charter upon the rate or amount of taxation 
314.3 	until the balance of the special fund or any fund of the relief association has attained a 
314.4 	specified level. In addition, any taxes levied under this section must not cause the amount 
314.5 	or rate of any other taxes levied in that year or to be levied in a subsequent year by the 
314.6 	municipality which are subject to a limitation as to rate or amount to be reduced.
314.7 	(f) If the municipality does not include the full amount of the minimum municipal 
314.8 	obligation in its levy for any year, the officers of the relief association shall certify that 
314.9 	amount to the county auditor, who shall spread a levy in the amount of the minimum 
314.10 	municipal obligation on the taxable property of the municipality.
314.11 	(g) If the state auditor determines that a municipal contribution actually made in a plan 
314.12 	year was insufficient under section 424A.091, subdivision 3, paragraph (c), clause (5), the 
314.13 	state auditor may request from the relief association or from the city a copy of the 
314.14 	certifications under this subdivision. The relief association or the city, whichever applies, 
314.15 	must provide the certifications within 14 days of the date of the request from the state auditor.

314.16 	EFFECTIVE DATE. This section is effective July 1, 2019, except the reference to 
314.17 	Minnesota Statutes, chapter 477B, is effective for aids payable in 2020 and thereafter.

314.18 	Sec. 28. Minnesota Statutes 2018, section 424B.09, is amended to read:
314.19 	424B.09 ADMINISTRATIVE EXPENSES.
314.20 	The payment of authorized administrative expenses of the subsequent volunteer 
314.21 	firefighters relief association must be from the special fund of the subsequent volunteer 
314.22 	firefighters relief association in accordance with section 69.80 424A.05, subdivision 3b, 
314.23 	and as provided for in the bylaws of the subsequent volunteer firefighters relief association 
314.24 	and approved by the board of trustees of the subsequent volunteer firefighters relief 
314.25 	association. The payment of any other expenses of the subsequent volunteer firefighters 
314.26 	relief association must be from the general fund of the subsequent volunteer firefighters 
314.27 	relief association in accordance with section 69.80 424A.05, subdivision 3b, and as provided 
314.28 	for in the bylaws of the subsequent volunteer firefighters relief association and approved 
314.29 	by the board of trustees of the subsequent volunteer firefighters relief association.

314.30 	EFFECTIVE DATE. This section is effective July 1, 2019.

314.31 	Sec. 29.  REPEALER.
 314.32 	Minnesota Statutes 2018, section 69.022, is repealed.

315.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

315.2 	ARTICLE 23
315.3 	DEPARTMENT OF REVENUE; MISCELLANEOUS; POLICY CHANGES

315.4 	Section 1. Minnesota Statutes 2018, section 270B.08, subdivision 2, is amended to read:
315.5 		Subd. 2.Revocation or cancellation. When a taxpayer's sales tax permit has been 
315.6 	revoked or canceled under section 270C.722 or 297A.84, the commissioner may disclose
315.7 	to any person data identifying the holder of the revoked or canceled permit, stating the basis 
315.8 	for the revocation or cancellation, the date of the revocation or cancellation, and stating 
315.9 	whether the if a revoked or canceled permit has been reinstated, the date upon which the 
315.10 	permit was reinstated.

315.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

315.12 	Sec. 2. Minnesota Statutes 2018, section 297A.84, is amended to read:
315.13 	297A.84 PERMITS ISSUED AND NOT ISSUED; CANCELLATION.
315.14 		Subdivision 1.Definitions. (a) The following definitions apply for the purposes of this 
315.15 	section.
315.16 	(b) "Applicant" means an individual, corporation, or partnership. Applicant also includes 
315.17 	any officer of a corporation or member of a partnership.
315.18 	(c) "Delinquent sales tax" means tax not paid by the date the tax was due and payable 
315.19 	under section 289A.20, subdivision 4, or an assessment not paid if the applicant has been 
315.20 	issued an order assessing sales and use tax under section 270C.33, subdivision 4.
315.21 		Subd. 2.Permits issued. Except as provided in subdivision 3, the commissioner shall
315.22 	must issue a permit to each applicant who has complied with section 297A.83, and with 
315.23 	section 297A.92 if security is required. A person is considered to have a permit if the person 
315.24 	has a Minnesota tax identification number issued by the commissioner that is currently 
315.25 	active for taxes imposed by this chapter. A permit is valid until canceled or revoked. It is 
315.26 	not assignable and is valid only for the person in whose name it is granted and for the 
315.27 	transaction of business at the places designated on the permit.
315.28 		Subd. 3.Permits not issued. (a) Except as provided in paragraph (b), the commissioner 
315.29 	must not issue a permit to an applicant if the applicant is liable for delinquent sales tax.
315.30 	(b) The commissioner must issue a permit to an applicant if an appeal period of an order 
315.31 	assessing sales tax under section 270C.33, subdivision 5, has not ended. The commissioner 
316.1 	may cancel a permit issued under this paragraph in the manner provided in subdivision 4 
316.2 	if the applicant owes delinquent sales tax after the appeal period has ended.
316.3 		Subd. 4.Nonconforming permits; cancellation; reissue. (a) If the commissioner issues 
316.4 	a permit that does not conform with the requirements of this section or applicable rules, the 
316.5 	commissioner may cancel the permit upon notice to the permit holder. The notice must be 
316.6 	served by first class and certified mail at the permit holder's last known address. The 
316.7 	cancellation is effective immediately.
316.8 	(b) If a permit holder shows that a canceled permit was issued in conformance with the 
316.9 	requirements of this section and applicable rules, the commissioner must reissue the permit.

316.10 	EFFECTIVE DATE. This section is effective for permit applications filed after 
316.11 	December 31, 2019.

316.12 	Sec. 3. Minnesota Statutes 2018, section 297A.85, is amended to read:
316.13 	297A.85 CANCELLATION OF PERMITS.
316.14 	The commissioner may cancel a permit if one of the following conditions occurs:
316.15 	(1) the permit holder has not filed a sales or use tax return for at least one year;
316.16 	(2) the permit holder has not reported any sales or use tax liability on the permit holder's 
316.17 	returns for at least two years;
316.18 	(3) the permit holder requests cancellation of the permit; or
316.19 	(4) the permit is subject to cancellation pursuant to under section 270C.722, subdivision 
316.20 	2, paragraph (a).; or
316.21 	(5) the permit is subject to cancellation under section 297A.84.

316.22 	EFFECTIVE DATE. This section is effective for permit applications filed after 
316.23 	December 31, 2019.

316.24 	Sec. 4.  REPEALER.
 316.25 	Minnesota Statutes 2018, section 270C.131, is repealed.

316.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

317.1 	ARTICLE 24
317.2 	DEPARTMENT OF REVENUE; MISCELLANEOUS; TECHNICAL CHANGES

317.3 	Section 1. Minnesota Statutes 2018, section 272.02, subdivision 27, is amended to read:
317.4 		Subd. 27.Superior National Forest; recreational property for use by disabled
317.5 	veterans with a disability. Real and personal property is exempt if it is located in the 
317.6 	Superior National Forest, and owned or leased and operated by a nonprofit organization 
317.7 	that is exempt from federal income taxation under section 501(c)(3) of the Internal Revenue 
317.8 	Code and primarily used to provide recreational opportunities for disabled veterans with a 
317.9 	disability and their families.

317.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

317.11 	Sec. 2. Minnesota Statutes 2018, section 272.02, subdivision 81, is amended to read:
317.12 		Subd. 81.Certain recreational property for disabled veterans with a disability. Real 
317.13 	and personal property is exempt if it is located in a county in the metropolitan area with a 
317.14 	population of less than 500,000 according to the 2000 federal census, and owned or leased 
317.15 	and operated by a nonprofit organization, and primarily used to provide recreational 
317.16 	opportunities for disabled veterans with a disability and their families.

317.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

317.18 	Sec. 3. Minnesota Statutes 2018, section 273.032, is amended to read:
317.19 	273.032 MARKET VALUE DEFINITION.
317.20 	(a) Unless otherwise provided, for the purpose of determining any property tax levy 
317.21 	limitation based on market value or any limit on net debt, the issuance of bonds, certificates 
317.22 	of indebtedness, or capital notes based on market value, any qualification to receive state 
317.23 	aid based on market value, or any state aid amount based on market value, the terms "market 
317.24 	value," "estimated market value," and "market valuation," whether equalized or unequalized, 
317.25 	mean the estimated market value of taxable property within the local unit of government 
317.26 	before any of the following or similar adjustments for:
317.27 	(1) the market value exclusions under:
317.28 	(i) section 273.11, subdivisions 14a and 14c (vacant platted land);
317.29 	(ii) section 273.11, subdivision 16 (certain improvements to homestead property);
317.30 	(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business properties);
318.1 	(iv) section 273.11, subdivision 21 (homestead property damaged by mold);
318.2 	(v) section 273.13, subdivision 34 (homestead of a disabled veteran with a disability or 
318.3 	family caregiver); or
318.4 	(vi) section 273.13, subdivision 35 (homestead market value exclusion); or
318.5 	(2) the deferment of value under:
318.6 	(i) the Minnesota Agricultural Property Tax Law, section 273.111;
318.7 	(ii) the Aggregate Resource Preservation Law, section 273.1115;
318.8 	(iii) the Minnesota Open Space Property Tax Law, section 273.112;
318.9 	(iv) the rural preserves property tax program, section 273.114; or
318.10 	(v) the Metropolitan Agricultural Preserves Act, section 473H.10; or
318.11 	(3) the adjustments to tax capacity for:
318.12 	(i) tax increment financing under sections 469.174 to 469.1794;
318.13 	(ii) fiscal disparities under chapter 276A or 473F; or
318.14 	(iii) powerline credit under section 273.425.
318.15 	(b) Estimated market value under paragraph (a) also includes the market value of 
318.16 	tax-exempt property if the applicable law specifically provides that the limitation, 
318.17 	qualification, or aid calculation includes tax-exempt property.
318.18 	(c) Unless otherwise provided, "market value," "estimated market value," and "market 
318.19 	valuation" for purposes of property tax levy limitations and calculation of state aid, refer 
318.20 	to the estimated market value for the previous assessment year and for purposes of limits 
318.21 	on net debt, the issuance of bonds, certificates of indebtedness, or capital notes refer to the 
318.22 	estimated market value as last finally equalized.
318.23 	(d) For purposes of a provision of a home rule charter or of any special law that is not 
318.24 	codified in the statutes and that imposes a levy limitation based on market value or any limit 
318.25 	on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market 
318.26 	value, the terms "market value," "taxable market value," and "market valuation," whether 
318.27 	equalized or unequalized, mean "estimated market value" as defined in paragraph (a).

318.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

319.1 	Sec. 4. Minnesota Statutes 2018, section 273.13, subdivision 22, is amended to read:
319.2 		Subd. 22.Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and 
319.3 	(c), real estate which is residential and used for homestead purposes is class 1a. In the case 
319.4 	of a duplex or triplex in which one of the units is used for homestead purposes, the entire 
319.5 	property is deemed to be used for homestead purposes. The market value of class 1a property 
319.6 	must be determined based upon the value of the house, garage, and land.
319.7 	The first $500,000 of market value of class 1a property has a net classification rate of 
319.8 	one percent of its market value; and the market value of class 1a property that exceeds 
319.9 	$500,000 has a classification rate of 1.25 percent of its market value.
319.10 	(b) Class 1b property includes homestead real estate or homestead manufactured homes 
319.11 	used for the purposes of a homestead by:
319.12 	(1) any person who is blind as defined in section 256D.35, or the blind person who is 
319.13 	blind and the blind person's spouse of the person who is blind;
319.14 	(2) any person who is permanently and totally disabled or by the disabled person with 
319.15 	a disability and the disabled person's spouse of the person with a disability; or
319.16 	(3) the surviving spouse of a veteran who was permanently and totally disabled veteran
319.17 	homesteading a property classified under this paragraph for taxes payable in 2008.
319.18 	Property is classified and assessed under clause (2) only if the government agency or 
319.19 	income-providing source certifies, upon the request of the homestead occupant, that the 
319.20 	homestead occupant satisfies the disability requirements of this paragraph, and that the 
319.21 	property is not eligible for the valuation exclusion under subdivision 34.
319.22 	Property is classified and assessed under paragraph (b) only if the commissioner of 
319.23 	revenue or the county assessor certifies that the homestead occupant satisfies the requirements 
319.24 	of this paragraph.
319.25 	Permanently and totally disabled for the purpose of this subdivision means a condition 
319.26 	which is permanent in nature and totally incapacitates the person from working at an 
319.27 	occupation which brings the person an income. The first $50,000 market value of class 1b 
319.28 	property has a net classification rate of .45 percent of its market value. The remaining market 
319.29 	value of class 1b property is classified as class 1a or class 2a property, whichever is 
319.30 	appropriate.
319.31 	(c) Class 1c property is commercial use real and personal property that abuts public 
319.32 	water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by 
319.33 	the Department of Natural Resources, and is devoted to temporary and seasonal residential 
320.1 	occupancy for recreational purposes but not devoted to commercial purposes for more than 
320.2 	250 days in the year preceding the year of assessment, and that includes a portion used as 
320.3 	a homestead by the owner, which includes a dwelling occupied as a homestead by a 
320.4 	shareholder of a corporation that owns the resort, a partner in a partnership that owns the 
320.5 	resort, or a member of a limited liability company that owns the resort even if the title to 
320.6 	the homestead is held by the corporation, partnership, or limited liability company. For 
320.7 	purposes of this paragraph, property is devoted to a commercial purpose on a specific day 
320.8 	if any portion of the property, excluding the portion used exclusively as a homestead, is 
320.9 	used for residential occupancy and a fee is charged for residential occupancy. Class 1c 
320.10 	property must contain three or more rental units. A "rental unit" is defined as a cabin, 
320.11 	condominium, townhouse, sleeping room, or individual camping site equipped with water 
320.12 	and electrical hookups for recreational vehicles. Class 1c property must provide recreational 
320.13 	activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill 
320.14 	or cross-country ski equipment; provide marina services, launch services, or guide services; 
320.15 	or sell bait and fishing tackle. Any unit in which the right to use the property is transferred 
320.16 	to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies 
320.17 	for class 1c even though it may remain available for rent. A camping pad offered for rent 
320.18 	by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of 
320.19 	the rental agreement, as long as the use of the camping pad does not exceed 250 days. If 
320.20 	the same owner owns two separate parcels that are located in the same township, and one 
320.21 	of those properties is classified as a class 1c property and the other would be eligible to be 
320.22 	classified as a class 1c property if it was used as the homestead of the owner, both properties 
320.23 	will be assessed as a single class 1c property; for purposes of this sentence, properties are 
320.24 	deemed to be owned by the same owner if each of them is owned by a limited liability 
320.25 	company, and both limited liability companies have the same membership. The portion of 
320.26 	the property used as a homestead is class 1a property under paragraph (a). The remainder 
320.27 	of the property is classified as follows: the first $600,000 of market value is tier I, the next 
320.28 	$1,700,000 of market value is tier II, and any remaining market value is tier III. The 
320.29 	classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25 
320.30 	percent. Owners of real and personal property devoted to temporary and seasonal residential 
320.31 	occupancy for recreation purposes in which all or a portion of the property was devoted to 
320.32 	commercial purposes for not more than 250 days in the year preceding the year of assessment 
320.33 	desiring classification as class 1c, must submit a declaration to the assessor designating the 
320.34 	cabins or units occupied for 250 days or less in the year preceding the year of assessment 
320.35 	by January 15 of the assessment year. Those cabins or units and a proportionate share of 
320.36 	the land on which they are located must be designated as class 1c as otherwise provided. 
321.1 	The remainder of the cabins or units and a proportionate share of the land on which they 
321.2 	are located must be designated as class 3a commercial. The owner of property desiring 
321.3 	designation as class 1c property must provide guest registers or other records demonstrating 
321.4 	that the units for which class 1c designation is sought were not occupied for more than 250 
321.5 	days in the year preceding the assessment if so requested. The portion of a property operated 
321.6 	as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) 
321.7 	other nonresidential facility operated on a commercial basis not directly related to temporary 
321.8 	and seasonal residential occupancy for recreation purposes does not qualify for class 1c.
321.9 	(d) Class 1d property includes structures that meet all of the following criteria:
321.10 	(1) the structure is located on property that is classified as agricultural property under 
321.11 	section 273.13, subdivision 23;
321.12 	(2) the structure is occupied exclusively by seasonal farm workers during the time when 
321.13 	they work on that farm, and the occupants are not charged rent for the privilege of occupying 
321.14 	the property, provided that use of the structure for storage of farm equipment and produce 
321.15 	does not disqualify the property from classification under this paragraph;
321.16 	(3) the structure meets all applicable health and safety requirements for the appropriate 
321.17 	season; and
321.18 	(4) the structure is not salable as residential property because it does not comply with 
321.19 	local ordinances relating to location in relation to streets or roads.
321.20 	The market value of class 1d property has the same classification rates as class 1a property 
321.21 	under paragraph (a).

321.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

321.23 	Sec. 5. Minnesota Statutes 2018, section 273.13, subdivision 34, is amended to read:
321.24 		Subd. 34.Homestead of disabled veteran with a disability or family caregiver. (a) 
321.25 	All or a portion of the market value of property owned by a veteran and serving as the 
321.26 	veteran's homestead under this section is excluded in determining the property's taxable 
321.27 	market value if the veteran has a service-connected disability of 70 percent or more as 
321.28 	certified by the United States Department of Veterans Affairs. To qualify for exclusion 
321.29 	under this subdivision, the veteran must have been honorably discharged from the United 
321.30 	States armed forces, as indicated by United States Government Form DD214 or other official 
321.31 	military discharge papers.
322.1 	(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded, 
322.2 	except as provided in clause (2); and
322.3 	(2) for a total (100 percent) and permanent disability, $300,000 of market value is 
322.4 	excluded.
322.5 	(c) If a disabled veteran with a disability qualifying for a valuation exclusion under 
322.6 	paragraph (b), clause (2), predeceases the veteran's spouse, and if upon the death of the 
322.7 	veteran the spouse holds the legal or beneficial title to the homestead and permanently 
322.8 	resides there, the exclusion shall carry over to the benefit of the veteran's spouse for the 
322.9 	current taxes payable year and for eight additional taxes payable years or until such time 
322.10 	as the spouse remarries, or sells, transfers, or otherwise disposes of the property, whichever 
322.11 	comes first. Qualification under this paragraph requires an application under paragraph (h), 
322.12 	and a spouse must notify the assessor if there is a change in the spouse's marital status, 
322.13 	ownership of the property, or use of the property as a permanent residence.
322.14 	(d) If the spouse of a member of any branch or unit of the United States armed forces 
322.15 	who dies due to a service-connected cause while serving honorably in active service, as 
322.16 	indicated on United States Government Form DD1300 or DD2064, holds the legal or 
322.17 	beneficial title to a homestead and permanently resides there, the spouse is entitled to the 
322.18 	benefit described in paragraph (b), clause (2), for eight taxes payable years, or until such 
322.19 	time as the spouse remarries or sells, transfers, or otherwise disposes of the property, 
322.20 	whichever comes first.
322.21 	(e) If a veteran meets the disability criteria of paragraph (a) but does not own property 
322.22 	classified as homestead in the state of Minnesota, then the homestead of the veteran's primary 
322.23 	family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify 
322.24 	for under paragraph (b).
322.25 	(f) In the case of an agricultural homestead, only the portion of the property consisting 
322.26 	of the house and garage and immediately surrounding one acre of land qualifies for the 
322.27 	valuation exclusion under this subdivision.
322.28 	(g) A property qualifying for a valuation exclusion under this subdivision is not eligible 
322.29 	for the market value exclusion under subdivision 35, or classification under subdivision 22, 
322.30 	paragraph (b).
322.31 	(h) To qualify for a valuation exclusion under this subdivision a property owner must 
322.32 	apply to the assessor by July 1 of the first assessment year for which the exclusion is sought. 
322.33 	For an application received after July 1, the exclusion shall become effective for the following 
322.34 	assessment year. Except as provided in paragraph (c), the owner of a property that has been 
323.1 	accepted for a valuation exclusion must notify the assessor if there is a change in ownership 
323.2 	of the property or in the use of the property as a homestead.
323.3 	(i) A first-time application by a qualifying spouse for the market value exclusion under 
323.4 	paragraph (d) must be made any time within two years of the death of the service member.
323.5 	(j) For purposes of this subdivision:
323.6 	(1) "active service" has the meaning given in section 190.05;
323.7 	(2) "own" means that the person's name is present as an owner on the property deed;
323.8 	(3) "primary family caregiver" means a person who is approved by the secretary of the 
323.9 	United States Department of Veterans Affairs for assistance as the primary provider of 
323.10 	personal care services for an eligible veteran under the Program of Comprehensive Assistance 
323.11 	for Family Caregivers, codified as United States Code, title 38, section 1720G; and
323.12 	(4) "veteran" has the meaning given the term in section 197.447.
323.13 	(k) If a veteran dying after December 31, 2011, did not apply for or receive the exclusion 
323.14 	under paragraph (b), clause (2), before dying, the veteran's spouse is entitled to the benefit 
323.15 	under paragraph (b), clause (2), for eight taxes payable years or until the spouse remarries 
323.16 	or sells, transfers, or otherwise disposes of the property if:
323.17 	(1) the spouse files a first-time application within two years of the death of the service 
323.18 	member or by June 1, 2019, whichever is later;
323.19 	(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the 
323.20 	homestead and permanently resides there;
323.21 	(3) the veteran met the honorable discharge requirements of paragraph (a); and
323.22 	(4) the United States Department of Veterans Affairs certifies that:
323.23 	(i) the veteran met the total (100 percent) and permanent disability requirement under 
323.24 	paragraph (b), clause (2); or
323.25 	(ii) the spouse has been awarded dependency and indemnity compensation.
323.26 	(l) The purpose of this provision of law providing a level of homestead property tax 
323.27 	relief for gravely disabled veterans with a disability, their primary family caregivers, and 
323.28 	their surviving spouses is to help ease the burdens of war for those among our state's citizens 
323.29 	who bear those burdens most heavily.
323.30 	(m) By July 1, the county veterans service officer must certify the disability rating and 
323.31 	permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.

324.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

324.2 	Sec. 6. Minnesota Statutes 2018, section 289A.08, subdivision 6, is amended to read:
324.3 		Subd. 6.Returns of married persons. A husband and wife Individuals who are married 
324.4 	to each other must file a joint Minnesota income tax return if they filed a joint federal income 
324.5 	tax return. If the husband and wife spouses have elected to file separate federal income tax 
324.6 	returns, they must file separate Minnesota income tax returns. This election to file a joint 
324.7 	or separate return must be changed if they change their election for federal purposes. In the 
324.8 	event taxpayers desire to change their election, the change must be done in the manner and 
324.9 	on the form prescribed by the commissioner.
324.10 	The determination of whether an individual is married shall be made under the provisions 
324.11 	of section 7703 of the Internal Revenue Code.

324.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

324.13 	Sec. 7. Minnesota Statutes 2018, section 289A.25, subdivision 1, is amended to read:
324.14 		Subdivision 1.Requirements to pay. An individual, trust, S corporation, or partnership 
324.15 	must, when prescribed in subdivision 3, paragraph (b), make payments of estimated tax. 
324.16 	For individuals, the term "estimated tax" means the amount the taxpayer estimates is the 
324.17 	sum of the taxes imposed by chapter 290 for the taxable year. For trusts, S corporations, 
324.18 	and partnerships, the term estimated tax means the amount the taxpayer estimates is the 
324.19 	sum of the taxes for the taxable year imposed by chapter 290 and the composite income tax 
324.20 	imposed by section 289A.08, subdivision 7. If the individual is an infant or incompetent 
324.21 	person, the payments must be made by the individual's guardian. If joint payments on 
324.22 	estimated tax are made but a joint return is not made for the taxable year, the estimated tax 
324.23 	for that year may be treated as the estimated tax of either the husband or the wife spouse or 
324.24 	may be divided between them.

324.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

324.26 	Sec. 8. Minnesota Statutes 2018, section 289A.31, subdivision 2, is amended to read:
324.27 		Subd. 2.Joint income tax returns. (a) If a joint income tax return is made by a husband 
324.28 	and wife spouses, the liability for the tax is joint and several. A spouse who qualifies for 
324.29 	relief from a liability attributable to an underpayment under section 6015(b) of the Internal 
324.30 	Revenue Code is relieved of the state income tax liability on the underpayment.
325.1 	(b) In the case of individuals who were a husband and wife married as determined in 
325.2 	section 7703 of the Internal Revenue Code prior to the dissolution of their marriage or their 
325.3 	legal separation, or prior to the death of one of the individuals, for tax liabilities reported 
325.4 	on a joint or combined return, the liability of each person is limited to the proportion of the 
325.5 	tax due on the return that equals that person's proportion of the total tax due if the husband 
325.6 	and wife each spouse filed separate returns for the taxable year. This provision is effective 
325.7 	only when the commissioner receives written notice of the marriage dissolution, legal 
325.8 	separation, or death of a spouse from the husband or wife surviving spouse. No refund may 
325.9 	be claimed by an ex-spouse, legally separated or widowed spouse for any taxes paid more 
325.10 	than 60 days before receipt by the commissioner of the written notice.
325.11 	(c) A request for calculation of separate liability pursuant to paragraph (b) for taxes 
325.12 	reported on a return must be made within six years after the due date of the return. For 
325.13 	calculation of separate liability for taxes assessed by the commissioner under section 289A.35
325.14 	or 289A.37, the request must be made within six years after the date of assessment. The 
325.15 	commissioner is not required to calculate separate liability if the remaining unpaid liability 
325.16 	for which recalculation is requested is $100 or less.

325.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

325.18 	Sec. 9. Minnesota Statutes 2018, section 289A.37, subdivision 6, is amended to read:
325.19 		Subd. 6.Order of assessment if joint income tax return. If a joint income tax return 
325.20 	is filed by a husband and wife spouses, an order of assessment may be a single joint notice. 
325.21 	If the commissioner has been notified by either spouse that that spouse's address has changed 
325.22 	and if that spouse requests it, then, instead of the single joint notice mailed to the last known 
325.23 	address of the husband and wife spouses, a duplicate or original of the joint notice must be 
325.24 	sent to the requesting spouse at the address designated by the requesting spouse. The other 
325.25 	joint notice must be mailed to the other spouse at that spouse's last known address. An 
325.26 	assessment is not invalid for failure to send it to a spouse if the spouse actually receives the 
325.27 	notice in the same period as if it had been mailed to that spouse at the correct address or if 
325.28 	the spouse has failed to provide an address to the commissioner other than the last known 
325.29 	address.

325.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

325.31 	Sec. 10. Minnesota Statutes 2018, section 290.0802, subdivision 2, is amended to read:
325.32 		Subd. 2.Subtraction. (a) A qualified individual is allowed a subtraction from federal 
325.33 	taxable income of the individual's subtraction base amount. The excess of the subtraction 
326.1 	base amount over the taxable net income computed without regard to the subtraction for 
326.2 	the elderly or disabled a person with a disability under section 290.0132, subdivision 5, 
326.3 	may be used to reduce the amount of a lump sum distribution subject to tax under section 
326.4 	290.032.
326.5 	(b)(1) The initial subtraction base amount equals
326.6 	(i) $12,000 for a married taxpayer filing a joint return if a spouse is a qualified individual,
326.7 	(ii) $9,600 for a single taxpayer, and
326.8 	(iii) $6,000 for a married taxpayer filing a separate federal return.
326.9 	(2) The qualified individual's initial subtraction base amount, then, must be reduced by 
326.10 	the sum of nontaxable retirement and disability benefits and one-half of the amount of 
326.11 	adjusted gross income in excess of the following thresholds:
326.12 	(i) $18,000 for a married taxpayer filing a joint return if both spouses are qualified 
326.13 	individuals,
326.14 	(ii) $14,500 for a single taxpayer or for a married couple filing a joint return if only one 
326.15 	spouse is a qualified individual, and
326.16 	(iii) $9,000 for a married taxpayer filing a separate federal return.
326.17 	(3) In the case of a qualified individual who is under the age of 65, the maximum amount 
326.18 	of the subtraction base may not exceed the taxpayer's disability income.
326.19 	(4) The resulting amount is the subtraction base amount.

326.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

326.21 	Sec. 11. Minnesota Statutes 2018, section 290.0802, subdivision 3, is amended to read:
326.22 		Subd. 3.Restrictions; married couples. Except in the case of a husband and wife
326.23 	spouses who live apart at all times during the taxable year, if the taxpayer is married at the 
326.24 	close of the taxable year, the subtraction under subdivision 2 is allowable only if the taxpayers 
326.25 	file joint federal and state income tax returns for the taxable year.

326.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

326.27 	Sec. 12. Minnesota Statutes 2018, section 290.091, subdivision 2, is amended to read:
326.28 		Subd. 2.Definitions. For purposes of the tax imposed by this section, the following 
326.29 	terms have the meanings given.
327.1 	(a) "Alternative minimum taxable income" means the sum of the following for the taxable 
327.2 	year:
327.3 	(1) the taxpayer's federal alternative minimum taxable income as defined in section 
327.4 	55(b)(2) of the Internal Revenue Code;
327.5 	(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum 
327.6 	taxable income, but excluding:
327.7 	(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
327.8 	(ii) the medical expense deduction;
327.9 	(iii) the casualty, theft, and disaster loss deduction; and
327.10 	(iv) the impairment-related work expenses of a disabled person with a disability;
327.11 	(3) for depletion allowances computed under section 613A(c) of the Internal Revenue 
327.12 	Code, with respect to each property (as defined in section 614 of the Internal Revenue Code), 
327.13 	to the extent not included in federal alternative minimum taxable income, the excess of the 
327.14 	deduction for depletion allowable under section 611 of the Internal Revenue Code for the 
327.15 	taxable year over the adjusted basis of the property at the end of the taxable year (determined 
327.16 	without regard to the depletion deduction for the taxable year);
327.17 	(4) to the extent not included in federal alternative minimum taxable income, the amount 
327.18 	of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue 
327.19 	Code determined without regard to subparagraph (E);
327.20 	(5) to the extent not included in federal alternative minimum taxable income, the amount 
327.21 	of interest income as provided by section 290.0131, subdivision 2; and
327.22 	(6) the amount of addition required by section 290.0131, subdivisions 9 to 11;
327.23 	less the sum of the amounts determined under the following:
327.24 	(i) interest income as defined in section 290.0132, subdivision 2;
327.25 	(ii) an overpayment of state income tax as provided by section 290.0132, subdivision 
327.26 	3, to the extent included in federal alternative minimum taxable income;
327.27 	(iii) the amount of investment interest paid or accrued within the taxable year on 
327.28 	indebtedness to the extent that the amount does not exceed net investment income, as defined 
327.29 	in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted 
327.30 	in computing federal adjusted gross income;
328.1 	(iv) amounts subtracted from federal taxable income as provided by section 290.0132, 
328.2 	subdivisions 7, 9 to 15, 17, 21, 24, and 26; and
328.3 	(v) the amount of the net operating loss allowed under section 290.095, subdivision 11, 
328.4 	paragraph (c).
328.5 	In the case of an estate or trust, alternative minimum taxable income must be computed 
328.6 	as provided in section 59(c) of the Internal Revenue Code.
328.7 	(b) "Investment interest" means investment interest as defined in section 163(d)(3) of 
328.8 	the Internal Revenue Code.
328.9 	(c) "Net minimum tax" means the minimum tax imposed by this section.
328.10 	(d) "Regular tax" means the tax that would be imposed under this chapter (without regard 
328.11 	to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed 
328.12 	under this chapter.
328.13 	(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income 
328.14 	after subtracting the exemption amount determined under subdivision 3.

328.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

328.16 	Sec. 13. Minnesota Statutes 2018, section 290A.03, subdivision 3, is amended to read:
328.17 		Subd. 3.Income. (a) "Income" means the sum of the following:
328.18 	(1) federal adjusted gross income as defined in the Internal Revenue Code; and
328.19 	(2) the sum of the following amounts to the extent not included in clause (1):
328.20 	(i) all nontaxable income;
328.21 	(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, 
328.22 	paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss 
328.23 	carryover allowed under section 469(b) of the Internal Revenue Code;
328.24 	(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a 
328.25 	solvent individual excluded from gross income under section 108(g) of the Internal Revenue 
328.26 	Code;
328.27 	(iv) cash public assistance and relief;
328.28 	(v) any pension or annuity (including railroad retirement benefits, all payments received 
328.29 	under the federal Social Security Act, Supplemental Security Income, and veterans benefits), 
328.30 	which was not exclusively funded by the claimant or spouse, or which was funded exclusively 
329.1 	by the claimant or spouse and which funding payments were excluded from federal adjusted 
329.2 	gross income in the years when the payments were made;
329.3 	(vi) interest received from the federal or a state government or any instrumentality or 
329.4 	political subdivision thereof;
329.5 	(vii) workers' compensation;
329.6 	(viii) nontaxable strike benefits;
329.7 	(ix) the gross amounts of payments received in the nature of disability income or sick 
329.8 	pay as a result of accident, sickness, or other disability, whether funded through insurance 
329.9 	or otherwise;
329.10 	(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 
329.11 	1986, as amended through December 31, 1995;
329.12 	(xi) contributions made by the claimant to an individual retirement account, including 
329.13 	a qualified voluntary employee contribution; simplified employee pension plan; 
329.14 	self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of 
329.15 	the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal 
329.16 	Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for 
329.17 	the claimant and spouse;
329.18 	(xii) to the extent not included in federal adjusted gross income, distributions received 
329.19 	by the claimant or spouse from a traditional or Roth style retirement account or plan;
329.20 	(xiii) nontaxable scholarship or fellowship grants;
329.21 	(xiv) the amount of deduction allowed under section 199 of the Internal Revenue Code;
329.22 	(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue 
329.23 	Code;
329.24 	(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue 
329.25 	Code; and
329.26 	(xvii) the amount deducted for certain expenses of elementary and secondary school 
329.27 	teachers under section 62(a)(2)(D) of the Internal Revenue Code.
329.28 	In the case of an individual who files an income tax return on a fiscal year basis, the 
329.29 	term "federal adjusted gross income" shall mean federal adjusted gross income reflected in 
329.30 	the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced 
329.31 	by the amount of a net operating loss carryback or carryforward or a capital loss carryback 
329.32 	or carryforward allowed for the year.
330.1 	(b) "Income" does not include:
330.2 	(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
330.3 	(2) amounts of any pension or annuity which was exclusively funded by the claimant 
330.4 	or spouse and which funding payments were not excluded from federal adjusted gross 
330.5 	income in the years when the payments were made;
330.6 	(3) to the extent included in federal adjusted gross income, amounts contributed by the 
330.7 	claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed 
330.8 	the retirement base amount reduced by the amount of contributions excluded from federal 
330.9 	adjusted gross income, but not less than zero;
330.10 	(4) surplus food or other relief in kind supplied by a governmental agency;
330.11 	(5) relief granted under this chapter;
330.12 	(6) child support payments received under a temporary or final decree of dissolution or 
330.13 	legal separation; or
330.14 	(7) restitution payments received by eligible individuals and excludable interest as 
330.15 	defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, 
330.16 	Public Law 107-16.
330.17 	(c) The sum of the following amounts may be subtracted from income:
330.18 	(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
330.19 	(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
330.20 	(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
330.21 	(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
330.22 	(5) for the claimant's fifth dependent, the exemption amount; and
330.23 	(6) if the claimant or claimant's spouse was disabled had a disability or attained the age 
330.24 	of 65 on or before December 31 of the year for which the taxes were levied or rent paid, 
330.25 	the exemption amount.
330.26 	(d) For purposes of this subdivision, the "exemption amount" means the exemption 
330.27 	amount under section 151(d) of the Internal Revenue Code for the taxable year for which 
330.28 	the income is reported; "retirement base amount" means the deductible amount for the 
330.29 	taxable year for the claimant and spouse under section 219(b)(5)(A) of the Internal Revenue 
330.30 	Code, adjusted for inflation as provided in section 219(b)(5)(C) of the Internal Revenue 
330.31 	Code, without regard to whether the claimant or spouse claimed a deduction; and "traditional 
331.1 	or Roth style retirement account or plan" means retirement plans under sections 401, 403, 
331.2 	408, 408A, and 457 of the Internal Revenue Code.

331.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

331.4 	Sec. 14. Minnesota Statutes 2018, section 290A.03, subdivision 4, is amended to read:
331.5 		Subd. 4.Household. "Household" means a claimant and an individual related to the 
331.6 	claimant as husband or wife the claimant's spouse who are domiciled in the same homestead.

331.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

331.8 	Sec. 15. Minnesota Statutes 2018, section 290A.03, subdivision 8, is amended to read:
331.9 		Subd. 8.Claimant. (a) "Claimant" means a person, other than a dependent, as defined 
331.10 	under sections 151 and 152 of the Internal Revenue Code disregarding section 152(b)(3) 
331.11 	of the Internal Revenue Code, who filed a claim authorized by this chapter and who was a 
331.12 	resident of this state as provided in chapter 290 during the calendar year for which the claim 
331.13 	for relief was filed.
331.14 	(b) In the case of a claim relating to rent constituting property taxes, the claimant shall 
331.15 	have resided in a rented or leased unit on which ad valorem taxes or payments made in lieu 
331.16 	of ad valorem taxes, including payments of special assessments imposed in lieu of ad valorem 
331.17 	taxes, are payable at some time during the calendar year covered by the claim.
331.18 	(c) "Claimant" shall not include a resident of a nursing home, intermediate care facility, 
331.19 	long-term residential facility, or a facility that accepts housing support payments whose 
331.20 	rent constituting property taxes is paid pursuant to the Supplemental Security Income 
331.21 	program under title XVI of the Social Security Act, the Minnesota supplemental aid program 
331.22 	under sections 256D.35 to 256D.54, the medical assistance program pursuant to title XIX 
331.23 	of the Social Security Act, or the housing support program under chapter 256I.
331.24 	If only a portion of the rent constituting property taxes is paid by these programs, the 
331.25 	resident shall be a claimant for purposes of this chapter, but the refund calculated pursuant 
331.26 	to section 290A.04 shall be multiplied by a fraction, the numerator of which is income as 
331.27 	defined in subdivision 3, paragraphs (a) and (b), reduced by the total amount of income 
331.28 	from the above sources other than vendor payments under the medical assistance program 
331.29 	and the denominator of which is income as defined in subdivision 3, paragraphs (a) and (b), 
331.30 	plus vendor payments under the medical assistance program, to determine the allowable 
331.31 	refund pursuant to this chapter.
332.1 	(d) Notwithstanding paragraph (c), if the claimant was a resident of the nursing home, 
332.2 	intermediate care facility, long-term residential facility, or facility for which the rent was 
332.3 	paid for the claimant by the housing support program for only a portion of the calendar year 
332.4 	covered by the claim, the claimant may compute rent constituting property taxes by 
332.5 	disregarding the rent constituting property taxes from the nursing home or facility and use 
332.6 	only that amount of rent constituting property taxes or property taxes payable relating to 
332.7 	that portion of the year when the claimant was not in the facility. The claimant's household 
332.8 	income is the income for the entire calendar year covered by the claim.
332.9 	(e) In the case of a claim for rent constituting property taxes of a part-year Minnesota 
332.10 	resident, the income and rental reflected in this computation shall be for the period of 
332.11 	Minnesota residency only. Any rental expenses paid which may be reflected in arriving at 
332.12 	federal adjusted gross income cannot be utilized for this computation. When two individuals 
332.13 	of a household are able to meet the qualifications for a claimant, they may determine among 
332.14 	them as to who the claimant shall be. If they are unable to agree, the matter shall be referred 
332.15 	to the commissioner of revenue whose decision shall be final. If a homestead property owner 
332.16 	was a part-year Minnesota resident, the income reflected in the computation made pursuant 
332.17 	to section 290A.04 shall be for the entire calendar year, including income not assignable to 
332.18 	Minnesota.
332.19 	(f) If a homestead is occupied by two or more renters, who are not husband and wife
332.20 	married to each other, the rent shall be deemed to be paid equally by each, and separate 
332.21 	claims shall be filed by each. The income of each shall be each renter's household income 
332.22 	for purposes of computing the amount of credit to be allowed.

332.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

332.24 	Sec. 16. Minnesota Statutes 2018, section 290A.05, is amended to read:
332.25 	290A.05 COMBINED HOUSEHOLD INCOME.
332.26 	If a person occupies a homestead with another person or persons not related to the person 
332.27 	as husband and wife the person's spouse, excluding dependents, roomers or boarders on 
332.28 	contract, and has property tax payable with respect to the homestead, the household income 
332.29 	of the claimant or claimants for the purpose of computing the refund allowed by section 
332.30 	290A.04 shall include the total income received by the other persons residing in the 
332.31 	homestead. For purposes of this section, "dependent" includes a parent of the claimant or 
332.32 	spouse who lives in the claimant's homestead and does not have an ownership interest in 
332.33 	the homestead. If a person occupies a homestead with another person or persons not related
333.1 	to the person as husband and wife the person's spouse or as dependents, the property tax 
333.2 	payable or rent constituting property tax shall be reduced as follows.
333.3 	If the other person or persons are residing at the homestead under rental or lease 
333.4 	agreement, the amount of property tax payable or rent constituting property tax shall be that 
333.5 	portion not covered by the rental agreement.

333.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

333.7 	Sec. 17. Minnesota Statutes 2018, section 290A.08, is amended to read:
333.8 	290A.08 ONE CLAIMANT PER HOUSEHOLD.
333.9 	Only one claimant per household per year is entitled to relief under this chapter. Payment 
333.10 	of the claim for relief may be made payable to the husband and wife spouses as one claimant. 
333.11 	The commissioner, upon written request, may issue separate checks, to the husband and 
333.12 	wife spouses for one-half of the relief provided the original check has not been issued or 
333.13 	has been returned. Individuals related as husband and wife spouses who were married during 
333.14 	the year may elect to file a joint claim which shall include each spouse's income, rent 
333.15 	constituting property taxes, and property taxes payable. Husbands and wives Spouses who 
333.16 	were married for the entire year and were domiciled in the same household for the entire 
333.17 	year must file a joint claim. The maximum dollar amount allowable for a joint claim shall 
333.18 	not exceed the amount that one person could receive.

333.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

333.20 	Sec. 18. Minnesota Statutes 2018, section 290A.09, is amended to read:
333.21 	290A.09 PROOF OF CLAIM.
333.22 	Every claimant shall supply to the commissioner of revenue, in support of the claim, 
333.23 	proof of eligibility under this chapter, including but not limited to amount of rent paid or 
333.24 	property taxes accrued, name and address of owner or managing agent of property rented, 
333.25 	changes in homestead, household membership, household income, size and nature of property 
333.26 	claimed as a homestead.
333.27 	Disabled Persons with a disability filing claims shall submit proof of disability in the 
333.28 	form and manner as the commissioner may prescribe. The department may require 
333.29 	examination and certification by the claimant's physician or by a physician designated by 
333.30 	the commissioner. The cost of any examination shall be borne by the claimant, unless the 
333.31 	examination proves the disability, in which case the cost of the examination shall be borne 
333.32 	by the commissioner.
334.1 	A determination of disability of a claimant by the Social Security Administration under 
334.2 	Title II or Title XVI of the Social Security Act shall constitute presumptive proof of disability.

334.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

334.4 	Sec. 19. Minnesota Statutes 2018, section 297A.61, subdivision 18, is amended to read:
334.5 		Subd. 18.Disabled Person with a disability. "Disabled Person with a disability" means 
334.6 	an individual who has a permanent and total disability as defined in section 273.13, 
334.7 	subdivision 22.

334.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

334.9 	Sec. 20. Minnesota Statutes 2018, section 297A.67, subdivision 6, is amended to read:
334.10 		Subd. 6.Other exempt meals. (a) Prepared food, candy, and soft drinks purchased for 
334.11 	and served exclusively to individuals who are 60 years of age or over and their spouses or 
334.12 	to disabled persons with a disability and their spouses by governmental agencies, nonprofit 
334.13 	organizations, or churches, or pursuant to any program funded in whole or in part through 
334.14 	United States Code, title 42, sections 3001 through 3045, wherever delivered, prepared, or 
334.15 	served, are exempt. Taxable food sold through vending machines is not exempt.
334.16 	(b) Prepared food, candy, and soft drinks purchased for and served exclusively to children 
334.17 	who are less than 14 years of age or disabled children with a disability who are less than 
334.18 	16 years of age and who are attending a child care or early childhood education program, 
334.19 	are exempt if they are:
334.20 	(1) purchased by a nonprofit child care facility that is exempt under section 297A.70, 
334.21 	subdivision 4, and that primarily serves families with income of 250 percent or less of 
334.22 	federal poverty guidelines; and
334.23 	(2) prepared at the site of the child care facility.

334.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

334.25 	Sec. 21. Minnesota Statutes 2018, section 297A.67, subdivision 12, is amended to read:
334.26 		Subd. 12.Parts and accessories used to make a motor vehicle disabled accessible
334.27 	to a person with a disability. Parts, accessories, and labor charges that are used solely to 
334.28 	modify a motor vehicle to make it disabled accessible to persons with a disability are exempt.

334.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

335.1 	Sec. 22. Minnesota Statutes 2018, section 297A.70, subdivision 3, is amended to read:
335.2 		Subd. 3.Sales of certain goods and services to government. (a) The following sales 
335.3 	to or use by the specified governments and political subdivisions of the state are exempt:
335.4 	(1) repair and replacement parts for emergency rescue vehicles, fire trucks, and fire 
335.5 	apparatus to a political subdivision;
335.6 	(2) machinery and equipment, except for motor vehicles, used directly for mixed 
335.7 	municipal solid waste management services at a solid waste disposal facility as defined in 
335.8 	section 115A.03, subdivision 10;
335.9 	(3) chore and homemaking services to a political subdivision of the state to be provided 
335.10 	to elderly individuals or disabled individuals persons with a disability;
335.11 	(4) telephone services to the Office of MN.IT Services that are used to provide 
335.12 	telecommunications services through the MN.IT services revolving fund;
335.13 	(5) firefighter personal protective equipment as defined in paragraph (b), if purchased 
335.14 	or authorized by and for the use of an organized fire department, fire protection district, or 
335.15 	fire company regularly charged with the responsibility of providing fire protection to the 
335.16 	state or a political subdivision;
335.17 	(6) bullet-resistant body armor that provides the wearer with ballistic and trauma 
335.18 	protection, if purchased by a law enforcement agency of the state or a political subdivision 
335.19 	of the state, or a licensed peace officer, as defined in section 626.84, subdivision 1;
335.20 	(7) motor vehicles purchased or leased by political subdivisions of the state if the vehicles 
335.21 	are exempt from registration under section 168.012, subdivision 1, paragraph (b), exempt 
335.22 	from taxation under section 473.448, or exempt from the motor vehicle sales tax under 
335.23 	section 297B.03, clause (12);
335.24 	(8) equipment designed to process, dewater, and recycle biosolids for wastewater 
335.25 	treatment facilities of political subdivisions, and materials incidental to installation of that 
335.26 	equipment;
335.27 	(9) the removal of trees, bushes, or shrubs for the construction and maintenance of roads, 
335.28 	trails, or firebreaks when purchased by an agency of the state or a political subdivision of 
335.29 	the state;
335.30 	(10) purchases by the Metropolitan Council or the Department of Transportation of 
335.31 	vehicles and repair parts to equip operations provided for in section 174.90, including, but 
335.32 	not limited to, the Northstar Corridor Rail project; and
336.1 	(11) purchases of water used directly in providing public safety services by an organized 
336.2 	fire department, fire protection district, or fire company regularly charged with the 
336.3 	responsibility of providing fire protection to the state or a political subdivision.
336.4 	(b) For purposes of this subdivision, "firefighters personal protective equipment" means 
336.5 	helmets, including face shields, chin straps, and neck liners; bunker coats and pants, including 
336.6 	pant suspenders; boots; gloves; head covers or hoods; wildfire jackets; protective coveralls; 
336.7 	goggles; self-contained breathing apparatus; canister filter masks; personal alert safety 
336.8 	systems; spanner belts; optical or thermal imaging search devices; and all safety equipment 
336.9 	required by the Occupational Safety and Health Administration.
336.10 	(c) For purchases of items listed in paragraph (a), clause (10), the tax must be imposed 
336.11 	and collected as if the rate under section 297A.62, subdivision 1, applied and then refunded 
336.12 	in the manner provided in section 297A.75.

336.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

336.14 	Sec. 23. Minnesota Statutes 2018, section 297A.70, subdivision 4, is amended to read:
336.15 		Subd. 4.Sales to nonprofit groups. (a) All sales, except those listed in paragraph (b), 
336.16 	to the following "nonprofit organizations" are exempt:
336.17 	(1) a corporation, society, association, foundation, or institution organized and operated 
336.18 	exclusively for charitable, religious, or educational purposes if the item purchased is used 
336.19 	in the performance of charitable, religious, or educational functions;
336.20 	(2) any senior citizen group or association of groups that:
336.21 	(i) in general limits membership to persons who are either age 55 or older, or physically 
336.22 	disabled persons with a physical disability;
336.23 	(ii) is organized and operated exclusively for pleasure, recreation, and other nonprofit 
336.24 	purposes, not including housing, no part of the net earnings of which inures to the benefit 
336.25 	of any private shareholders; and
336.26 	(iii) is an exempt organization under section 501(c) of the Internal Revenue Code; and
336.27 	(3) an organization that qualifies for an exemption for memberships under subdivision 
336.28 	12 if the item is purchased and used in the performance of the organization's mission.
336.29 	For purposes of this subdivision, charitable purpose includes the maintenance of a cemetery 
336.30 	owned by a religious organization.
336.31 	(b) This exemption does not apply to the following sales:
337.1 	(1) building, construction, or reconstruction materials purchased by a contractor or a 
337.2 	subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed 
337.3 	maximum price covering both labor and materials for use in the construction, alteration, or 
337.4 	repair of a building or facility;
337.5 	(2) construction materials purchased by tax-exempt entities or their contractors to be 
337.6 	used in constructing buildings or facilities that will not be used principally by the tax-exempt 
337.7 	entities;
337.8 	(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2), 
337.9 	and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 297A.67, 
337.10 	subdivision 2, except wine purchased by an established religious organization for sacramental 
337.11 	purposes or as allowed under subdivision 9a; and
337.12 	(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except as 
337.13 	provided in paragraph (c).
337.14 	(c) This exemption applies to the leasing of a motor vehicle as defined in section 297B.01, 
337.15 	subdivision 11, only if the vehicle is:
337.16 	(1) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a 
337.17 	passenger automobile, as defined in section 168.002, if the automobile is designed and used 
337.18 	for carrying more than nine persons including the driver; and
337.19 	(2) intended to be used primarily to transport tangible personal property or individuals, 
337.20 	other than employees, to whom the organization provides service in performing its charitable, 
337.21 	religious, or educational purpose.
337.22 	(d) A limited liability company also qualifies for exemption under this subdivision if 
337.23 	(1) it consists of a sole member that would qualify for the exemption, and (2) the items 
337.24 	purchased qualify for the exemption.

337.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

337.26 	Sec. 24. Minnesota Statutes 2018, section 297A.70, subdivision 16, is amended to read:
337.27 		Subd. 16.Camp fees. Fees to camps or other recreation facilities are exempt for:
337.28 	(1) services primarily for children, adults accompanying children, or persons with 
337.29 	disabilities a disability; or
337.30 	(2) educational or religious activities;
338.1 	and if the camp or facilities are owned and operated by an exempt organization under section 
338.2 	501(c)(3) of the Internal Revenue Code.

338.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

338.4 	Sec. 25. Minnesota Statutes 2018, section 297A.71, subdivision 22, is amended to read:
338.5 		Subd. 22.Materials used to make residential property disabled accessible to persons 
338.6 	with a disability. Building materials and equipment sold to, or stored, used, or consumed 
338.7 	by, a nonprofit organization are exempt if:
338.8 	(1) the materials and equipment are used or incorporated into modifying an existing 
338.9 	residential structure to make it disabled accessible to persons with a disability; and
338.10 	(2) the materials and equipment used in the modification would qualify for an exemption 
338.11 	under either subdivision 11 or 12 if made by the current owner of the residence.
338.12 	For purposes of this subdivision, "nonprofit organization" means any nonprofit 
338.13 	corporation, society, association, foundation, or institution organized and operated exclusively 
338.14 	for charitable, religious, educational, or civic purposes; or a veterans' group exempt from 
338.15 	federal taxation under section 501(c), clause (19), of the Internal Revenue Code.

338.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

338.17 	Sec. 26. Minnesota Statutes 2018, section 297A.75, subdivision 1, is amended to read:
338.18 		Subdivision 1.Tax collected. The tax on the gross receipts from the sale of the following 
338.19 	exempt items must be imposed and collected as if the sale were taxable and the rate under 
338.20 	section 297A.62, subdivision 1, applied. The exempt items include:
338.21 	(1) building materials for an agricultural processing facility exempt under section 
338.22 	297A.71, subdivision 13;
338.23 	(2) building materials for mineral production facilities exempt under section 297A.71, 
338.24 	subdivision 14;
338.25 	(3) building materials for correctional facilities under section 297A.71, subdivision 3;
338.26 	(4) building materials used in a residence for disabled veterans with a disability exempt 
338.27 	under section 297A.71, subdivision 11;
338.28 	(5) elevators and building materials exempt under section 297A.71, subdivision 12;
338.29 	(6) materials and supplies for qualified low-income housing under section 297A.71, 
338.30 	subdivision 23;
339.1 	(7) materials, supplies, and equipment for municipal electric utility facilities under 
339.2 	section 297A.71, subdivision 35;
339.3 	(8) equipment and materials used for the generation, transmission, and distribution of 
339.4 	electrical energy and an aerial camera package exempt under section 297A.68, subdivision 
339.5 	37;
339.6 	(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph 
339.7 	(a), clause (10);
339.8 	(10) materials, supplies, and equipment for construction or improvement of projects and 
339.9 	facilities under section 297A.71, subdivision 40;
339.10 	(11) materials, supplies, and equipment for construction, improvement, or expansion 
339.11 	of:
339.12 	(i) an aerospace defense manufacturing facility exempt under Minnesota Statutes 2014, 
339.13 	section 297A.71, subdivision 42;
339.14 	(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision 
339.15 	45;
339.16 	(iii) a research and development facility exempt under Minnesota Statutes 2014, section 
339.17 	297A.71, subdivision 46; and
339.18 	(iv) an industrial measurement manufacturing and controls facility exempt under 
339.19 	Minnesota Statutes 2014, section 297A.71, subdivision 47;
339.20 	(12) enterprise information technology equipment and computer software for use in a 
339.21 	qualified data center exempt under section 297A.68, subdivision 42;
339.22 	(13) materials, supplies, and equipment for qualifying capital projects under section 
339.23 	297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b);
339.24 	(14) items purchased for use in providing critical access dental services exempt under 
339.25 	section 297A.70, subdivision 7, paragraph (c);
339.26 	(15) items and services purchased under a business subsidy agreement for use or 
339.27 	consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 
339.28 	44;
339.29 	(16) building materials, equipment, and supplies for constructing or replacing real 
339.30 	property exempt under section 297A.71, subdivision 49; and
340.1 	(17) building materials, equipment, and supplies for constructing or replacing real 
340.2 	property exempt under section 297A.71, subdivision 50, paragraph (b).

340.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

340.4 	Sec. 27. Minnesota Statutes 2018, section 297B.01, subdivision 14, is amended to read:
340.5 		Subd. 14.Purchase price.  (a) "Purchase price" means the total consideration valued in 
340.6 	money for a sale, whether paid in money or otherwise. The purchase price excludes the 
340.7 	amount of a manufacturer's rebate paid or payable to the purchaser. If a motor vehicle is 
340.8 	taken in trade as a credit or as part payment on a motor vehicle taxable under this chapter, 
340.9 	the credit or trade-in value allowed by the person selling the motor vehicle shall be deducted 
340.10 	from the total selling price to establish the purchase price of the vehicle being sold and the 
340.11 	trade-in allowance allowed by the seller shall constitute the purchase price of the motor 
340.12 	vehicle accepted as a trade-in. The purchase price in those instances where the motor vehicle 
340.13 	is acquired by gift or by any other transfer for a nominal or no monetary consideration shall 
340.14 	also include the average value of similar motor vehicles, established by standards and guides 
340.15 	as determined by the motor vehicle registrar. The purchase price in those instances where 
340.16 	a motor vehicle is manufactured by a person who registers it under the laws of this state 
340.17 	shall mean the manufactured cost of such motor vehicle and manufactured cost shall mean 
340.18 	the amount expended for materials, labor, and other properly allocable costs of manufacture, 
340.19 	except that in the absence of actual expenditures for the manufacture of a part or all of the 
340.20 	motor vehicle, manufactured costs shall mean the reasonable value of the completed motor 
340.21 	vehicle.
340.22 	(b) The term "purchase price" shall not include the portion of the value of a motor vehicle 
340.23 	due solely to modifications necessary to make the motor vehicle disability accessible to 
340.24 	persons with a disability.
340.25 	(c) The term "purchase price" shall not include the transfer of a motor vehicle by way 
340.26 	of gift between a husband and wife spouses or parent and child, or to a nonprofit organization 
340.27 	as provided under subdivision 16, paragraph (c), clause (6), nor shall it include the transfer 
340.28 	of a motor vehicle by a guardian to a ward when there is no monetary consideration and the 
340.29 	title to such vehicle was registered in the name of the guardian, as guardian, only because 
340.30 	the ward was a minor.
340.31 	(d) The term "purchase price" shall not include the transfer of a motor vehicle as a gift 
340.32 	between a foster parent and foster child. For purposes of this subdivision, a foster relationship 
340.33 	exists, regardless of the age of the child, if (1) a foster parent's home is or was licensed as 
341.1 	a foster family home under Minnesota Rules, parts 2960.3000 to 2960.3340, and (2) the 
341.2 	county verifies that the child was a state ward or in permanent foster care.
341.3 	(e) There shall not be included in "purchase price" the amount of any tax imposed by 
341.4 	the United States upon or with respect to retail sales whether imposed upon the retailer or 
341.5 	the consumer.

341.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

341.7 	Sec. 28. Minnesota Statutes 2018, section 297B.01, subdivision 16, is amended to read:
341.8 		Subd. 16.Sale, sells, selling, purchase, purchased, or acquired. (a) "Sale," "sells," 
341.9 	"selling," "purchase," "purchased," or "acquired" means any transfer of title of any motor 
341.10 	vehicle, whether absolutely or conditionally, for a consideration in money or by exchange 
341.11 	or barter for any purpose other than resale in the regular course of business.
341.12 	(b) Any motor vehicle utilized by the owner only by leasing such vehicle to others or 
341.13 	by holding it in an effort to so lease it, and which is put to no other use by the owner other 
341.14 	than resale after such lease or effort to lease, shall be considered property purchased for 
341.15 	resale.
341.16 	(c) The terms also shall include any transfer of title or ownership of a motor vehicle by 
341.17 	other means, for or without consideration, except that these terms shall not include:
341.18 	(1) the acquisition of a motor vehicle by inheritance from or by bequest of, or 
341.19 	transfer-on-death of title by, a decedent who owned it;
341.20 	(2) the transfer of a motor vehicle which was previously licensed in the names of two 
341.21 	or more joint tenants and subsequently transferred without monetary consideration to one 
341.22 	or more of the joint tenants;
341.23 	(3) the transfer of a motor vehicle by way of gift from a limited used vehicle dealer 
341.24 	licensed under section 168.27, subdivision 4a, to an individual, when the transfer is with 
341.25 	no monetary or other consideration or expectation of consideration and the parties to the 
341.26 	transfer submit an affidavit to that effect at the time the title transfer is recorded;
341.27 	(4) the transfer of a motor vehicle by gift between:
341.28 	(i) spouses;
341.29 	(ii) parents and a child; or
341.30 	(iii) grandparents and a grandchild;
342.1 	(5) the voluntary or involuntary transfer of a motor vehicle between a husband and wife
342.2 	spouses in a divorce proceeding; or
342.3 	(6) the transfer of a motor vehicle by way of a gift to an organization that is exempt from 
342.4 	federal income taxation under section 501(c)(3) of the Internal Revenue Code when the 
342.5 	motor vehicle will be used exclusively for religious, charitable, or educational purposes.

342.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

342.7 	Sec. 29. Minnesota Statutes 2018, section 298.018, subdivision 1, is amended to read:
342.8 		Subdivision 1.Within taconite assistance area. The proceeds of the tax paid under 
342.9 	sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the 
342.10 	taconite assistance area defined in section 273.1341, shall be allocated as follows:
342.11 	(1) five percent to the city or town within which the minerals or energy resources are 
342.12 	mined or extracted, or within which the concentrate was produced. If the mining and 
342.13 	concentration, or different steps in either process, are carried on in more than one taxing 
342.14 	district, the commissioner shall apportion equitably the proceeds among the cities and towns 
342.15 	by attributing 50 percent of the proceeds of the tax to the operation of mining or extraction, 
342.16 	and the remainder to the concentrating plant and to the processes of concentration, and with 
342.17 	respect to each thereof giving due consideration to the relative extent of the respective 
342.18 	operations performed in each taxing district;
342.19 	(2) ten percent to the taconite municipal aid account to be distributed as provided in 
342.20 	section 298.282, subdivisions 1 and 2, on the dates provided under this section;
342.21 	(3) ten percent to the school district within which the minerals or energy resources are 
342.22 	mined or extracted, or within which the concentrate was produced. If the mining and 
342.23 	concentration, or different steps in either process, are carried on in more than one school 
342.24 	district, distribution among the school districts must be based on the apportionment formula 
342.25 	prescribed in clause (1);
342.26 	(4) 20 percent to a group of school districts comprised of those school districts wherein 
342.27 	the mineral or energy resource was mined or extracted or in which there is a qualifying 
342.28 	municipality as defined by section 273.134, paragraph (b), in direct proportion to school 
342.29 	district indexes as follows: for each school district, its pupil units determined under section 
342.30 	126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted 
342.31 	net tax capacity per pupil unit for school districts receiving aid under this clause as calculated 
342.32 	pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution 
342.33 	to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that 
343.1 	portion of the distribution which its index bears to the sum of the indices for all school 
343.2 	districts that receive the distributions;
343.3 	(5) 20 percent to the county within which the minerals or energy resources are mined 
343.4 	or extracted, or within which the concentrate was produced. If the mining and concentration, 
343.5 	or different steps in either process, are carried on in more than one county, distribution 
343.6 	among the counties must be based on the apportionment formula prescribed in clause (1), 
343.7 	provided that any county receiving distributions under this clause shall pay one percent of 
343.8 	its proceeds to the Range Association of Municipalities and Schools;
343.9 	(6) 20 percent to St. Louis County acting as the counties' fiscal agent to be distributed 
343.10 	as provided in sections 273.134 to 273.136;
343.11 	(7) five percent to the commissioner of Iron Range resources and rehabilitation for the 
343.12 	purposes of section 298.22;
343.13 	(8) three percent to the Douglas J. Johnson economic protection trust fund; and
343.14 	(9) seven percent to the taconite environmental protection fund.
343.15 	The proceeds of the tax shall be distributed on July 15 each year.

343.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

343.17 	Sec. 30. Minnesota Statutes 2018, section 298.018, is amended by adding a subdivision 
343.18 	to read:
343.19 		Subd. 1a.Distribution date. The proceeds of the tax allocated under subdivision 1 shall 
343.20 	be distributed on December 15 each year. Any payment of proceeds received after December 
343.21 	15 shall be distributed on the next net proceeds tax distribution date.

343.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

343.23 	Sec. 31. Minnesota Statutes 2018, section 298.282, subdivision 1, is amended to read:
343.24 		Subdivision 1.Distribution of taconite municipal aid account. (a) The amount 
343.25 	deposited with the county as provided in section 298.28, subdivision 3, must be distributed 
343.26 	as provided by this section among: (1) the municipalities comprising a taconite assistance 
343.27 	area under section 273.1341; (2) a township that contains a state park consisting primarily 
343.28 	of an underground iron ore mine; and (3) a city located within five miles of that state park, 
343.29 	each being referred to in this section as a qualifying municipality.
343.30 	(b) The amount deposited in the state general fund as provided in section 298.018, 
343.31 	subdivision 1, must be distributed in the same manner as provided under paragraph (a) 
344.1 	except that subdivisions 3, 4, and 5 do not apply, and the distributions shall be made on the 
344.2 	dates provided under section 298.018, subdivision 1a.

344.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

344.4 	Sec. 32. Laws 2017, First Special Session chapter 1, article 8, section 3, the effective date, 
344.5 	is amended to read:

344.6 	EFFECTIVE DATE. This section is effective for (1) petitions and appeals filed after 
344.7 	June 30, 2017, for which notices of entry of order are mailed before July 1, 2019, and (2) 
344.8 	notices of entry of order mailed after June 30, 2019.

344.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

APPENDIX 

Repealed Minnesota Statutes: 19-5224 

37.31 ISSUANCE OF BONDS.Subd. 8.Expiration. 
The authority to issue bonds, other than bonds to refund outstanding bonds, under this section expires July 1, 2025. 

69.011 QUALIFYING FOR STATE AID.Subdivision 1.Definitions. 
Unless the language or context clearly indicates that a different meaning is intended, the following words and terms, for the purposes of this chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them: 

(a) "Commissioner" means the commissioner of revenue. 

(b) "Municipality" means: 

(1) a home rule charter or statutory city; 

(2) an organized town; 

(3) a park district subject to chapter 398; 

(4) the University of Minnesota; 

(5) for purposes of the fire state aid program only, an American Indian tribal government entity located within a federally recognized American Indian reservation; 

(6) for purposes of the police state aid program only, an American Indian tribal government with a tribal police department which exercises state arrest powers under section 626.90, 626.91, 626.92, or 626.93; 

(7) for purposes of the police state aid program only, the Metropolitan Airports Commission; and 

(8) for purposes of the police state aid program only, the Department of Natural Resources and the Department of Public Safety with respect to peace officers covered under chapter 352B. 

(c) "Minnesota Firetown Premium Report" means a form prescribed by the commissioner containing space for reporting by insurers of fire, lightning, sprinkler leakage and extended coverage premiums received upon risks located or to be performed in this state less return premiums and dividends. 

(d) "Firetown" means the area serviced by any municipality having a qualified fire department or a qualified incorporated fire department having a subsidiary volunteer firefighters' relief association. 

(e) "Estimated market value" means latest available estimated market value of all property in a taxing jurisdiction, whether the property is subject to taxation, or exempt from ad valorem taxation obtained from information which appears on abstracts filed with the commissioner of revenue or equalized by the State Board of Equalization. 

(f) "Minnesota Aid to Police Premium Report" means a form prescribed by the commissioner for reporting by each fire and casualty insurer of all premiums received upon direct business received by it in this state, or by its agents for it, in cash or otherwise, during the preceding calendar year, with reference to insurance written for insuring against the perils contained in auto insurance coverages as reported in the Minnesota business schedule of the annual financial statement which each insurer is required to file with the commissioner in accordance with the governing laws or rules less return premiums and dividends. 

(g) "Peace officer" means any person: 

(1) whose primary source of income derived from wages is from direct employment by a municipality or county as a law enforcement officer on a full-time basis of not less than 30 hours per week; 

(2) who has been employed for a minimum of six months prior to December 31 preceding the date of the current year's certification under subdivision 2, paragraph (b); 

(3) who is sworn to enforce the general criminal laws of the state and local ordinances; 

(4) who is licensed by the Peace Officers Standards and Training Board and is authorized to arrest with a warrant; and 

(5) who is a member of the State Patrol retirement plan or the public employees police and fire fund. 

(h) "Full-time equivalent number of peace officers providing contract service" means the integral or fractional number of peace officers which would be necessary to provide the contract service if all peace officers providing service were employed on a full-time basis as defined by the employing unit and the municipality receiving the contract service. 

(i) "Retirement benefits other than a service pension" means any disbursement authorized under section 424A.05, subdivision 3, clauses (3) and (4). 

(j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means: 

(1) for the police state aid program: 

(i) the person who was elected or appointed to the specified position or, in the absence of the person, another person who is designated by the applicable governing body; 

(ii) in a park district, the secretary of the board of park district commissioners; 

(iii) in the case of the University of Minnesota, the official designated by the Board of Regents; 

(iv) for the Metropolitan Airports Commission, the person designated by the commission; 

(v) for the Department of Natural Resources or the Department of Public Safety, the respective commissioner; 

(vi) for a tribal police department which exercises state arrest powers under section 626.90, 626.91, 626.92, or 626.93, the person designated by the applicable American Indian tribal government; and 

(2) for the fire state aid program and fire relief association financial reports, the person who was elected or appointed to the specified position, or, for governmental entities other than counties, if the governing body of the governmental entity designates the position to perform the function, the chief financial official of the governmental entity or the chief administrative official of the governmental entity. 

(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the retirement plan established by chapter 353G. 

Subd. 2.Qualification for fire or police state aid. 
(a) Unless retirement coverage is provided by the voluntary statewide lump-sum volunteer firefighter retirement plan, in order to qualify to receive fire state aid, on or before March 15 annually, in conjunction with the financial report required pursuant to section 69.051, the clerk of each municipality having a duly organized fire department as provided in subdivision 4, or the secretary of each independent nonprofit firefighting corporation having a subsidiary incorporated firefighters' relief association, whichever is applicable, and the fire chief, shall jointly certify the existence of the municipal fire department or of the independent nonprofit firefighting corporation, whichever is applicable, which meets the minimum qualification requirements set forth in this subdivision, and the fire personnel and equipment of the municipal fire department or the independent nonprofit firefighting corporation as of the preceding December 31. 

(b) Where retirement coverage is provided by the voluntary statewide lump-sum volunteer firefighter retirement plan, in order to qualify to receive fire state aid, on or before March 15, annually, the executive director of the Public Employees Retirement Association shall certify the existence of that coverage for each municipality and the municipal clerk or independent nonprofit firefighting corporation secretary, whichever applies, and the applicable fire chief shall certify the fire personnel and fire department equipment as of the preceding December 31. 

(c) Except as provided in subdivision 2b, on or before March 15 annually, in order to qualify to receive police state aid, the clerk of each municipality and the auditor of each county employing one or more peace officers as defined in subdivision 1, paragraph (g), shall certify the number of such peace officers to the commissioner on forms prescribed by the commissioner. Credit for officers employed less than a full year must be apportioned. Each full month of employment of a qualifying officer during the calendar year entitles the employing municipality or county to credit for 1/12 of the payment for employment of a peace officer for the entire year. For purposes of sections 69.011 to 69.051, employment of a peace officer commences when the peace officer is entered on the payroll of the respective municipal police department or county sheriff's department. No peace officer may be included in the certification of the number of peace officers by more than one employing unit for the same month. 

(d) A certification made under this subdivision must be filed with the commissioner, must be made on a form prescribed by the commissioner, and must include any other facts that the commissioner requires. 

Subd. 2b.Departments of Natural Resources and Public Safety. 
(a) On or before each March 15, the commissioner of natural resources shall certify the number of peace officers as defined in subdivision 1, clause (g), employed by the Enforcement Division and the commissioner of public safety shall certify the number of peace officers as defined in subdivision 1, clause (g), employed by the Bureau of Criminal Apprehension, the Gambling Enforcement Division, and the State Patrol Division. 

(b) The certification must be on a form prescribed by the commissioner. Peace officers certified under this paragraph must be included in the total certifications under subdivision 2. 

Subd. 2c.Ineligibility of certain police officers. 
A police officer employed by the University of Minnesota who is required by the Board of Regents to be a member of the University of Minnesota faculty retirement plan is not eligible to be included in any police state-aid certification under this section. 

Subd. 3.Failure to file certificate deemed waiver. 
(a) If a certification required by this section is not filed with the commissioner by the due date prescribed by this section, the commissioner shall notify the county, the municipality, or the nonprofit firefighting corporation that a portion or all of its current year aid will be forfeited if the certification is not received within ten days. 

(b) The amount of aid forfeited is equal to the amount of state police aid or state fire aid determined for the county, the municipality, or the nonprofit firefighting corporation for the current year, multiplied by five percent for each week or fraction of a week that this certification is late. The penalty must be computed beginning ten days after the postmark date of the commissioner's notification as required under this subdivision. All forfeited aid amounts revert to the general fund in the state treasury. Failure to receive the certificate form may not be used as a defense for a failure to file. 

Subd. 4.Qualification for fire state aid. 
(a) A municipality in this state qualifies to receive fire state aid if it meets the general requirements of paragraph (b) and if it meets the specific requirements of paragraph (c). 

(b) Minimum qualifications for fire state aid include the following: 

(1) having for more than one year an organized fire department and officially established by the governing body of the municipality or an independent nonprofit firefighting corporation created under the nonprofit corporation act of this state and operating exclusively for firefighting purposes and providing retirement and relief benefits to its members; and 

(2) having a separate subsidiary incorporated firefighter's relief association providing retirement and relief benefits, or participating in the voluntary statewide lump-sum volunteer firefighter retirement plan or, if a paid fire department, having retirement coverage by the public employees police and fire retirement plan. 

(c) Minimum requirements for fire state aid also include the following or their equivalent as determined by the state fire marshal: 

(1) having ten paid or volunteer firefighters including a fire chief and assistant fire chief; 

(2) having regular scheduled meetings and frequent drills including instructions in firefighting tactics and in the use, care, and operation of all fire apparatus and equipment; 

(3) having a motorized fire truck equipped with a motorized pump, 250 gallon or larger water tank, 300 feet of one inch or larger fire hose in two lines with combination spray and straight stream nozzles, five-gallon hand pumps--tank extinguisher or equivalent, dry chemical extinguisher or equivalent, ladders, extension ladders, pike poles, crow bars, axes, lanterns, fire coats, helmets, and boots; 

(4) having apparatus suitably housed in a building of good construction with facilities for care of hose and equipment; 

(5) having a reliable and adequate method of receiving fire alarms by telephone or with electric siren and suitable means of sounding an alarm; 

(6) if response is to be provided outside the corporate limits of the municipality wherein the fire department is located, having another piece of motorized apparatus to make the response; and 

(7) meeting other requirements that the commissioner establishes by rule. 

69.021 REPORTING PREMIUMS; CALCULATION OF AID.Subdivision 1.Minnesota Firetown Premium Report and Minnesota Aid to Police Premium Report. 
The commissioner shall, at the time of mailing tax forms, send blank copies of the Minnesota Firetown Premium Report and when applicable the Minnesota Aid to Police Premium Report to each insurer, including township and farmers mutual insurance companies licensed to write insurance as described in section 69.011, subdivision 1, clauses (c) and (f) in this state. These reports must contain space for the insurers name, address, gross premiums less return premiums, dividends, net premiums, certification and other facts that the commissioner may require. 

Subd. 2.Report of premiums. 
(a) Each insurer, including township and farmers mutual insurers where applicable, shall return to the commissioner the reports described in subdivision 1 certified by its secretary and president or chief financial officer. 

(b) The Minnesota Firetown Premium Report must contain a true and accurate statement of the total premium for all gross direct fire, lightning, sprinkler leakage, and extended coverage insurance of all domestic mutual insurers and the total premiums for all gross direct fire, lightning, sprinkler leakage and extended coverage insurance of all other insurers, less return premiums and dividends received by them on that business written or done during the preceding calendar year upon property located within the state or brought into the state for temporary use. The fire and extended coverage portion of multiperil and multiple peril package premiums and all other combination premiums must be determined by applying percentages determined by the commissioner or by rating bureaus recognized by the commissioner. 

(c) The Minnesota Aid to Police Premium Report must contain a true and accurate statement of the total premiums, less return premiums and dividends, on all direct business received by such insurer in this state, or by its agents for it, in cash or otherwise, during the preceding calendar year, with reference to insurance written for perils described in section 69.011, subdivision 1, clause (f). 

Subd. 3.Penalty for fraudulent, incorrect, incomplete returns and late filing of report. 
(a) When it appears to the commissioner that any insurer has made an incomplete or inaccurate report, the commissioner shall return the report and demand that a complete and accurate report be filed. If the insurer fails to file a report on or before March 1, annually, the insurer is liable and shall pay $25 for each seven days, or fraction thereof, that the report is delinquent, but not to exceed $200. If the insurer fails to file a corrected report within 30 days after demand, the insurer is liable for the penalties provided in paragraph (b) or (c) for knowingly filing an inaccurate or false report. 

(b) Any insurer which knowingly makes and files an inaccurate or false report is liable to a fine in an amount of not less than $25 nor more than $1,000, as determined by the commissioner, and additionally the commissioner of commerce may revoke the insurer's certificate of authority. 

(c) Any person whose duty it is to make the report who fails or refuses to make it within 30 days after notification by the commissioner shall be fined an amount of not more than $1,000. 

(d) Failure of the insurer to receive a reporting form does not excuse the insurer from filing the report. 

Subd. 4.Determination of qualified state aid recipients; certification to commissioner of management and budget. 
(a) The commissioner shall determine which municipalities and independent nonprofit firefighting corporations are qualified to receive fire state aid directly or are qualified to receive the benefit of fire state aid paid to the voluntary statewide lump-sum volunteer firefighter retirement plan and which municipalities and counties are qualified to receive police state aid. 

(b) The commissioner shall determine qualification for state aid upon receipt of: 

(1) the fire department personnel and equipment certification or the police department and qualified peace officers certificate, whichever applies, required under section 69.011; 

(2) the financial compliance report required under section 6.495, subdivision 3, if applicable; and 

(3) any other relevant information which comes to the attention of the commissioner. 

(c) Upon completion of the determination, on or before October 1, the commissioner shall calculate the amount of: 

(1) the police state aid which each county or municipality is to receive under subdivisions 5, 6, 7a, and 10; and 

(2) the fire state aid which each municipality or nonprofit firefighting corporation is to receive under subdivisions 5 and 7. 

(d) The commissioner shall certify to the commissioner of management and budget the name of each county or municipality, and the amount of state aid which each county or municipality is to receive, in the case of police state aid. The commissioner shall certify to the commissioner of management and budget the name of each municipality or independent nonprofit firefighting corporation and the amount of state aid which each municipality or independent nonprofit firefighting corporation is to receive directly or the amount of state aid which the voluntary statewide lump-sum volunteer firefighter retirement plan is qualified to receive on behalf of the municipality or corporation, in the case of fire state aid. 

Subd. 5.Calculation of state aid. 
(a) The amount of fire state aid available for apportionment, before the addition of the minimum fire state aid allocation amount under subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state upon the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the commissioner by insurers on the Minnesota Firetown Premium Report. This amount must be reduced by the amount required to pay the state auditor's costs and expenses of the audits or exams of the firefighters relief associations. 

The total amount for apportionment in respect to fire state aid must not be less than two percent of the premiums reported to the commissioner by insurers on the Minnesota Firetown Premium Report after subtracting the following amounts: 

(1) the amount required to pay the state auditor's costs and expenses of the audits or exams of the firefighters relief associations; and 

(2) one percent of the premiums reported by township mutual insurance companies and mutual property and casualty companies with total assets of $5,000,000 or less. 

(b) The total amount for apportionment as police state aid is equal to 104 percent of the amount of premium taxes paid to the state on the premiums reported to the commissioner by insurers on the Minnesota Aid to Police Premium Report. The total amount for apportionment in respect to the police state aid program must not be less than two percent of the amount of premiums reported to the commissioner by insurers on the Minnesota Aid to Police Premium Report. 

(c) The commissioner shall calculate the percentage of increase or decrease reflected in the apportionment over or under the previous year's available state aid using the same premiums as a basis for comparison. 

(d) In addition to the amount for apportionment of police state aid under paragraph (b), each year $100,000 must be apportioned for police state aid. An amount sufficient to pay this increase is annually appropriated from the general fund. 

Subd. 7.Apportionment of fire state aid to municipalities and relief associations. 
(a) The commissioner shall apportion the fire state aid relative to the premiums reported on the Minnesota Firetown Premium Reports filed under this chapter to each municipality and/or firefighters relief association qualified under section 69.011, subdivision 4. 

(b) The commissioner shall calculate an initial fire state aid allocation amount for each municipality or fire department under paragraph (c) and, if applicable, a minimum fire state aid allocation amount for each municipality or fire department under paragraph (d). The municipality or fire department must be apportioned the larger fire state aid amount. 

(c) The initial fire state aid allocation amount is the amount available for apportionment as fire state aid under subdivision 5, without the inclusion of any additional funding amount to support a minimum fire state aid amount under section 423A.02, subdivision 3, allocated one-half in proportion to the population as shown in the last official statewide federal census for each fire town and one-half in proportion to the estimated market value of each fire town, including (1) the estimated market value of tax-exempt property and (2) the estimated market value of natural resources lands receiving in lieu payments under sections 477A.11 to 477A.14, but excluding the estimated market value of minerals. In the case of incorporated or municipal fire departments furnishing fire protection to other cities, towns, or townships as evidenced by valid fire service contracts filed with the commissioner, the distribution must be adjusted proportionately to take into consideration the crossover fire protection service. Necessary adjustments must be made to subsequent apportionments. In the case of municipalities or independent fire departments qualifying for the aid, the commissioner shall calculate the state aid for the municipality or relief association on the basis of the population and the estimated market value of the area furnished fire protection service by the fire department as evidenced by duly executed and valid fire service agreements filed with the commissioner. If one or more fire departments are furnishing contracted fire service to a city, town, or township, only the population and estimated market value of the area served by each fire department may be considered in calculating the state aid and the fire departments furnishing service shall enter into an agreement apportioning among themselves the percent of the population and the percent of the estimated market value of each shared service area. The agreement must be in writing and must be filed with the commissioner. 

(d) The minimum fire state aid allocation amount is the amount in addition to the initial fire state allocation amount that is derived from any additional funding amount to support a minimum fire state aid amount under section 423A.02, subdivision 3, and allocated to municipalities with volunteer firefighters relief associations or covered by the voluntary statewide lump-sum volunteer firefighter retirement plan based on the number of active volunteer firefighters who are members of the relief association as reported in the annual financial reporting for the calendar year 1993 to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or fire departments with volunteer firefighters relief associations receive in total at least a minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of 30 firefighters. If a relief association is established after calendar year 1993 and before calendar year 2000, the number of active volunteer firefighters who are members of the relief association as reported in the annual financial reporting for calendar year 1998 to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, shall be used in this determination. If a relief association is established after calendar year 1999, the number of active volunteer firefighters who are members of the relief association as reported in the first annual financial reporting submitted to the Office of the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this determination. If a relief association is terminated as a result of providing retirement coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, the number of active volunteer firefighters of the municipality covered by the statewide plan as certified by the executive director of the Public Employees Retirement Association to the commissioner and the state auditor, but not to exceed 30 active firefighters, must be used in this determination. 

(e) Unless the firefighters of the applicable fire department are members of the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must be paid to the treasurer of the municipality where the fire department is located and the treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit the aid to the relief association if the relief association has filed a financial report with the treasurer of the municipality and has met all other statutory provisions pertaining to the aid apportionment. If the firefighters of the applicable fire department are members of the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must be paid to the executive director of the Public Employees Retirement Association and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund. 

(f) The commissioner may make rules to permit the administration of the provisions of this section. 

(g) Any adjustments needed to correct prior misallocations must be made to subsequent fire state aid apportionments. 

Subd. 7a.Apportionment of police state aid. 
(a) Subject to the reduction provided for under subdivision 10, the commissioner shall apportion the police state aid to each municipality, to each county, and to the Departments of Natural Resources and Public Safety in the following manner: 

(1) for all municipalities maintaining police departments, counties, the Department of Natural Resources, and the Department of Public Safety, the police state aid must be distributed in proportion to the relationship that the total number of peace officers, as determined under section 69.011, subdivision 1, paragraph (g), and subdivision 2, paragraph (b), employed by that employing unit for 12 calendar months and the proportional or fractional number who were employed less than 12 months bears to the total number of peace officers employed by all municipalities, counties, the Departments of Natural Resources and Public Safety, subject to any reduction under subdivision 10; 

(2) for each municipality which contracts with the county for police service, a proportionate amount of the state aid distributed to the county based on the full-time equivalent number of peace officers providing contract service to that municipality must be credited against the municipality's contract obligation; and 

(3) for each municipality which contracts with another municipality for police service, a proportionate amount of the state aid distributed to the municipality providing contract service based on the full-time equivalent number of peace officers providing contract service to that municipality on a full-time equivalent basis must be credited against the contract obligation of the municipality receiving contract service. 

(b) Any necessary additional adjustments must be made to subsequent police state aid apportionments. 

Subd. 8.Population and estimated market value. 
(a) In computations relating to fire state aid requiring the use of population figures, only official statewide federal census figures may be used. Increases or decreases in population disclosed by reason of any special census must not be taken into consideration. 

(b) In calculations relating to fire state aid requiring the use of estimated market value property figures, only the latest available estimated market value property figures may be used. 

Subd. 9.Appeal. 
(a) In the event that a municipality, a county, a fire relief association, the Department of Natural Resources, the Department of Public Safety, or the voluntary statewide lump-sum volunteer firefighter retirement plan, feels itself to be aggrieved, it may request the commissioner to review and adjust the apportionment of funds within the county in the case of police state aid, or within the state in the case of fire state aid. 

(b) The decision of the commissioner is subject to appeal, review, and adjustment by the district court in the county in which the applicable municipality or fire department is located or by the Ramsey County District Court with respect to the Department of Natural Resources, the Department of Public Safety, or the voluntary statewide lump-sum volunteer firefighter retirement plan. 

Subd. 10.Reduction in police state aid apportionment. 
(a) The commissioner of revenue shall reduce the apportionment of police state aid under subdivisions 5, paragraph (b), 6, and 7a, for eligible employer units by the amount of any excess police state aid. 

(b) "Excess police state aid" is: 

(1) for counties and for municipalities in which police retirement coverage is provided wholly by the public employees police and fire fund and all police officers are members of the plan governed by sections 353.63 to 353.657, the amount in excess of the employer's total prior calendar year obligation as defined in paragraph (c), as certified by the executive director of the Public Employees Retirement Association; 

(2) for the Metropolitan Airports Commission, the amount in excess of the commission's total prior calendar year obligation as defined in paragraph (c), as certified by the executive director of the Public Employees Retirement Association; and 

(3) for the Department of Natural Resources and for the Department of Public Safety, the amount in excess of the employer's total prior calendar year obligation under section 352B.02, subdivision 1c, for plan members who are peace officers under section 69.011, subdivision 1, paragraph (g), as certified by the executive director of the Minnesota State Retirement System. 

(c) The employer's total prior calendar year obligation with respect to the public employees police and fire plan under paragraph (b), clause (1), is the total prior calendar year obligation under section 353.65, subdivision 3, for police officers as defined in section 353.64, subdivisions 1, 1a, and 2, and the actual total prior calendar year obligation under section 353.65, subdivision 3, for firefighters, as defined in section 353.64, subdivisions 1, 1a, and 2, but not to exceed for those firefighters the applicable following employer calendar year amount: 

		Municipality	Maximum Amount		
		Albert Lea	$54,157.01		
		Anoka	10,399.31		
		Apple Valley	5,442.44		
		Austin	49,864.73		
		Bemidji	27,671.38		
		Brooklyn Center	6,605.92		
		Brooklyn Park	24,002.26		
		Burnsville	15,956.00		
		Cloquet	4,260.49		
		Coon Rapids	39,920.00		
		Cottage Grove	8,588.48		
		Crystal	5,855.00		
		East Grand Forks	51,009.88		
		Edina	32,251.00		
		Elk River	5,216.55		
		Ely	13,584.16		
		Eveleth	16,288.27		
		Fergus Falls	6,742.00		
		Fridley	33,420.64		
		Golden Valley	11,744.61		
		Hastings	16,561.00		
		Hopkins	4,324.23		
		International Falls	14,400.69		
		Lakeville	782.35		
		Lino Lakes	5,324.00		
		Little Falls	7,889.41		
		Maple Grove	6,707.54		
		Maplewood	8,476.69		
		Minnetonka	10,403.00		
		Montevideo	1,307.66		
		Moorhead	68,069.26		
		New Hope	6,739.72		
		North St. Paul	4,241.14		
		Northfield	770.63		
		Owatonna	37,292.67		
		Plymouth	6,754.71		
		Red Wing	3,504.01		
		Richfield	53,757.96		
		Rosemount	1,712.55		
		Roseville	9,854.51		
		St. Anthony	33,055.00		
		St. Louis Park	53,643.11		
		Thief River Falls	28,365.04		
		Virginia	31,164.46		
		Waseca	11,135.17		
		West St. Paul	15,707.20		
		White Bear Lake	6,521.04		
		Woodbury	3,613.00		
		any other municipality	0.00		

(d) The total amount of excess police state aid must be deposited in the excess police state-aid account in the general fund, administered and distributed as provided in subdivision 11. 

Subd. 11.Excess police state-aid holding account. 
(a) The excess police state-aid holding account is established in the general fund. The excess police state-aid holding account must be administered by the commissioner. 

(b) Excess police state aid determined according to subdivision 10, must be deposited annually in the excess police state-aid holding account. 

(c) From the balance in the excess police state-aid holding account, $900,000 must be canceled annually to the general fund. 

(d) On October 1 of each year, one-half of the balance of the excess police state-aid holding account remaining after the deduction under paragraph (c) is appropriated for additional amortization aid under section 423A.02, subdivision 1b. 

(e) Annually, the remaining balance in the excess police state-aid holding account, after the deductions under paragraphs (c) and (d) cancels to the general fund. 

69.022 VOLUNTEER RETENTION STIPEND AID PILOT.Subdivision 1.Definitions. 
(a) For purposes of this section, the following terms have the meanings given them. 

(b) "Commissioner," unless otherwise specified, means the commissioner of public safety. 

(c) "Emergency medical services provider" means a licensee as defined under section 144E.001, subdivision 8. 

(d) "Independent nonprofit firefighting corporation" has the same meaning as used in chapter 424A. 

(e) "Municipality" has the meaning given in section 69.011, but only if the municipality uses one or more qualified volunteers to provide service. 

(f) "Qualified entity" means an emergency medical services provider, independent nonprofit firefighting corporation, or municipality. 

(g) "Qualified volunteer" means one of the following types of volunteers who has provided service, for the entire prior calendar year, to one or more qualified entities: 

(1) a volunteer firefighter as defined in section 299N.03, subdivision 7; 

(2) a volunteer ambulance attendant as defined in section 144E.001, subdivision 15; or 

(3) an emergency medical responder as defined in section 144E.001, subdivision 6, who provides emergency medical services as a volunteer. 

(h) "Pilot area" means the following groups of counties: 

(1) southern Minnesota, consisting of the counties of Faribault, Fillmore, Freeborn, Houston, and Watonwan; 

(2) west central Minnesota, consisting of the counties of Chippewa, Kandiyohi, Redwood, and Renville; 

(3) central Minnesota, consisting of the counties of Morrison and Todd; and 

(4) north central Minnesota, consisting of the counties of Beltrami, Clearwater, and Mahnomen. 

Subd. 2.Certification. 
By June 1 of the calendar year following the year in which the qualified volunteer provided service, the commissioner shall certify to the commissioner of revenue each qualified volunteer's name and the qualified entity for which the qualified volunteer provided service, but the commissioner must remove duplicate listings of qualified volunteers who provided service to more than one qualified entity so that each qualified volunteer is listed only once. The commissioner shall also certify to the commissioner of revenue the total amount of aid to be paid to each qualified entity under subdivision 3. For qualified entities that are not municipalities, the commissioner must indicate the municipality to which the aid is to be paid, as designated by the qualified entity. 

Subd. 3.Aid payment and calculation. 
The commissioner of revenue shall pay aid to qualified entities located in the pilot area to provide funds for the qualified entities to pay annual volunteer retention stipends to qualified volunteers who provide services to the qualified entities. A qualified entity is located in the pilot area if it is a municipality located in whole or in part in the pilot area, or if it is an emergency medical services provider or independent nonprofit firefighting corporation with its main office located in the pilot area. The amount of the aid equals $500 multiplied by the number of qualified volunteers. For purposes of calculating this aid, each individual providing volunteer service, regardless of the different types of service provided, is one qualified volunteer. The commissioner of revenue shall pay the aid to qualified entities by July 15 of the calendar year following the year in which the qualified volunteer provided service. If a qualified entity is not a municipality, the commissioner shall pay the aid to the treasurer of the municipality designated by the qualified entity. The treasurer of the municipality shall, within 30 days of receipt of the aid, transmit the aid to the qualified entity. 

Subd. 4.Application. 
Each year each qualified entity in the pilot area may apply to the commissioner for aid under this section. The application must be made at the time and in the form prescribed by the commissioner and must provide sufficient information to permit the commissioner to determine the applicant's entitlement to aid under this section. 

Subd. 5.Payment of stipends. 
A qualified entity receiving state aid under this section must pay the aid as retention stipends of $500 to qualified volunteers no later than September 15 of the year in which the aid was received. 

Subd. 6.Report. 
No later than January 15, 2018, the commissioner must report to the chairs and ranking minority members of the legislative committees having jurisdiction over public safety and taxes in the senate and the house of representatives, in compliance with sections 3.195 and 3.197, on aid paid under this section. The report must include: 

(1) for each county in the pilot area, a listing of the qualified entities that received aid in each of the three years of the pilot; 

(2) the amount of aid paid to each qualified entity that received aid in each of the three years of the pilot; and 

(3) for each qualified entity that received aid, the number of qualified volunteers who were paid stipends in each of the three years of the pilot, and the number of qualified volunteers in the year preceding the pilot. 

The report must also provide information on the number of qualified volunteers providing service to qualified entities in comparison counties in each of the three years of the pilot and in the year preceding the pilot, and must summarize changes in the number of qualified volunteers during the year preceding the pilot and during the three years of the pilot both within the pilot area and in the comparison counties. For purposes of this subdivision, "comparison counties" means counties designated by the commissioner to include at least half of the counties that border each group of counties in the pilot area, as specified in subdivision 1. Qualified entities in comparison counties must provide information to the commissioner necessary to the report in this subdivision in the form and manner required by the commissioner. 

Subd. 7.Appropriation. 
An amount sufficient to pay the state aid under this section is appropriated from the general fund to the commissioner of revenue. 

Subd. 8.Sunset. 
This section expires for aid payable after calendar year 2017, except that the reporting requirement in subdivision 6 remains in effect through 2018. 

69.031 COMMISSIONER OF MANAGEMENT AND BUDGET; WARRANT, APPROPRIATION, PAYMENT AND ADMINISTRATION.Subdivision 1.Commissioner's warrant. 
(a) The commissioner of management and budget shall issue to the Public Employees Retirement Association on behalf of a municipality or independent nonprofit firefighting corporation that is a member of the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, to the Department of Natural Resources, the Department of Public Safety, or the county, municipality, or independent nonprofit firefighting corporation certified to the commissioner of management and budget by the commissioner a warrant for an amount equal to the amount of fire state aid or police state aid, whichever applies, certified for the applicable state aid recipient by the commissioner under section 69.021. 

(b) Fire state aid and police state aid is payable on October 1 annually. The amount of state aid due and not paid by October 1 accrues interest payable to the state aid recipient at the rate of one percent for each month or part of a month that the amount remains unpaid after October 1. 

Subd. 3.Appropriations. 
There is hereby appropriated annually from the state general fund to the commissioner of revenue amounts sufficient to make the police state aid payments and the fire state aid payments specified in this section and section 69.021. 

Subd. 5.Deposit of state aid. 
(a) If the municipality or the independent nonprofit firefighting corporation is covered by the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, the executive director shall credit the fire state aid against future municipal contribution requirements under section 353G.08 and shall notify the municipality or independent nonprofit firefighting corporation of the fire state aid so credited at least annually. If the municipality or the independent nonprofit firefighting corporation is not covered by the voluntary statewide lump-sum volunteer firefighter retirement plan, the municipal treasurer shall, within 30 days after receipt, transmit the fire state aid to the treasurer of the duly incorporated firefighters' relief association if there is one organized and the association has filed a financial report with the municipality. If the relief association has not filed a financial report with the municipality, the municipal treasurer shall delay transmission of the fire state aid to the relief association until the complete financial report is filed. If the municipality or independent nonprofit firefighting corporation is not covered by the voluntary statewide lump-sum volunteer firefighter retirement plan, if there is no relief association organized, or if the association has dissolved or has been removed as trustees of state aid, then the treasurer of the municipality shall deposit the money in the municipal treasury and the money may be disbursed only for the purposes and in the manner set forth in section 424A.08 or for the payment of the employer contribution requirement with respect to firefighters covered by the public employees police and fire retirement plan under section 353.65, subdivision 3. 

(b) For a municipality in which police retirement coverage is provided by the public employees police and fire fund and all peace officers are members of the fund, including municipalities covered by section 353.665, the total state aid must be applied toward the municipality's employer contribution to the public employees police and fire fund under sections 353.65, subdivision 3, and 353.665, subdivision 8. 

(c) The county treasurer, upon receipt of the police state aid for the county, shall apply the total state aid toward the county's employer contribution to the public employees police and fire fund under section 353.65, subdivision 3. 

(d) The designated Metropolitan Airports Commission official, upon receipt of the police state aid for the Metropolitan Airports Commission, shall apply the total police state aid toward the commission's employer contribution for police officers to the public employees police and fire plan under section 353.65, subdivision 3. 

(e) The police state aid apportioned to the Departments of Public Safety and Natural Resources under section 69.021, subdivision 7a, is appropriated to the commissioner of management and budget for transfer to the funds and accounts from which the salaries of peace officers certified under section 69.011, subdivision 2b, are paid. The commissioner of revenue shall certify to the commissioners of public safety, natural resources, and management and budget the amounts to be transferred from the appropriation for police state aid. The commissioners of public safety and natural resources shall certify to the commissioner of management and budget the amounts to be credited to each of the funds and accounts from which the peace officers employed by their respective departments are paid. Each commissioner shall allocate the police state aid first for employer contributions for employees funded from the general fund and then for employer contributions for employees funded from other funds. For peace officers whose salaries are paid from the general fund, the amounts transferred from the appropriation for police state aid must be canceled to the general fund. 

69.041 SHORTFALL FROM GENERAL FUND.
(a) If the annual funding requirements of fire or police relief associations or consolidation accounts under sections 424A.091 to 424A.095, or Laws 2013, chapter 111, article 5, sections 31 to 42, exceed all applicable revenue sources of a given year, including the insurance premium taxes funding the applicable fire or police state aid as set under section 297I.05, subdivisions 2, 3, and 4, the shortfall in the annual funding requirements must be paid from the general fund to the extent appropriated by the legislature. 

(b) Nothing in this section may be deemed to relieve any municipality from its obligation to a relief association or consolidation account under law. 

69.051 FINANCIAL REPORT, BOND, EXAMINATION.Subdivision 1.Financial report and audit. 
(a) The board of the Bloomington Fire Department Relief Association and each volunteer firefighters relief association as defined in section 424A.001, subdivision 4, with assets of at least $500,000 or liabilities of at least $500,000 in the prior year or in any previous year, according to the applicable actuarial valuation or according to the financial report if no valuation is required, shall prepare a financial report covering the special and general funds of the relief association for the preceding fiscal year, file the financial report, and submit financial statements. 

(b) The financial report must contain financial statements and disclosures which present the true financial condition of the relief association and the results of relief association operations in conformity with generally accepted accounting principles and in compliance with the regulatory, financing and funding provisions of this chapter and any other applicable laws. The financial report must be countersigned by: 

(1) the municipal clerk or clerk-treasurer of the municipality in which the relief association is located if the relief association is a firefighters relief association which is directly associated with a municipal fire department; or 

(2) by the municipal clerk or clerk-treasurer of the largest municipality in population which contracts with the independent nonprofit firefighting corporation if the volunteer firefighter relief association is a subsidiary of an independent nonprofit firefighting corporation and by the secretary of the independent nonprofit firefighting corporation; or 

(3) by the chief financial official of the county in which the volunteer firefighter relief association is located or primarily located if the relief association is associated with a fire department that is not located in or associated with an organized municipality. 

(c) The financial report must be retained in its office for public inspection and must be filed with the governing body of the government subdivision in which the associated fire department is located after the close of the fiscal year. One copy of the financial report must be furnished to the state auditor after the close of the fiscal year. 

(d) Audited financial statements must be attested to by a certified public accountant or by the state auditor and must be filed with the state auditor within 180 days after the close of the fiscal year. The state auditor may accept this report in lieu of the report required in paragraph (c). 

Subd. 1a.Financial statement. 
(a) The board of each volunteer firefighter relief association, as defined in section 424A.001, subdivision 4, that is not required to file a financial report and audit under subdivision 1 must prepare a detailed statement of the financial affairs for the preceding fiscal year of the relief association's special and general funds in the style and form prescribed by the state auditor. The detailed statement must show: 

(1) the sources and amounts of all money received; 

(2) all disbursements, accounts payable and accounts receivable; 

(3) the amount of money remaining in the treasury; 

(4) total assets, including a listing of all investments; 

(5) the accrued liabilities; and 

(6) all other items necessary to show accurately the revenues and expenditures and financial position of the relief association. 

(b) The detailed financial statement of the special and general funds required under paragraph (a) must be certified by a certified public accountant or by the state auditor in accordance with agreed-upon procedures and forms prescribed by the state auditor. The accountant must have at least five years of public accounting, auditing, or similar experience, and must not be an active, inactive, or retired member of the relief association or the fire department. 

(c) The detailed financial statement required under paragraph (a) must be countersigned by: 

(1) the municipal clerk or clerk-treasurer of the municipality; or 

(2) where applicable, by the municipal clerk or clerk-treasurer of the largest municipality in population which contracts with the independent nonprofit firefighting corporation if the relief association is a subsidiary of an independent nonprofit firefighting corporation and by the secretary of the independent nonprofit firefighting corporation; or 

(3) by the chief financial official of the county in which the volunteer firefighter relief association is located or primarily located if the relief association is associated with a fire department that is not located in or associated with an organized municipality. 

(d) The volunteer firefighters' relief association board must file the detailed financial statement required under paragraph (a) in the relief association office for public inspection and present it to the governing body of the municipality within 45 days after the close of the fiscal year, and must submit a copy of the certified detailed financial statement to the state auditor within 90 days of the close of the fiscal year. 

(e) A certified public accountant or auditor who performs the agreed-upon procedures under paragraph (b) is subject to the reporting requirements of section 6.67. 

Subd. 1b.Qualification. 
The state auditor may, upon a demonstration by a relief association of hardship or an inability to conform, extend the deadline for reports under subdivisions 1 or 1a, but not beyond November 30th following the due date. If the reports are not received by November 30th, the municipality or relief association forfeits its current year state aid, and, until the state auditor receives the required information, the relief association or municipality is ineligible to receive any future state aid. A municipality or firefighters' relief association does not qualify initially to receive, or be entitled subsequently to retain, state aid under this chapter if the financial reporting requirement or the applicable requirements of this chapter or any other statute or special law have not been complied with or are not fulfilled. 

Subd. 2.Treasurers bond. 
(a) The treasurer of the Bloomington Fire Department Relief Association may not enter upon duties without having given the association a bond in a reasonable amount acceptable to the municipality for the faithful discharge of duties according to law. 

(b) No treasurer of a relief association governed by sections 424A.091 to 424A.096  may enter upon the duties of the office until the treasurer has given the association a good and sufficient bond in an amount equal to at least ten percent of the assets of the relief association; however, the amount of the bond need not exceed $500,000. 

Subd. 3.Report by certain municipalities; exceptions. 
(a) The chief administrative officer of each municipality which has an organized fire department but which does not have a firefighters' relief association governed by sections 424A.091 to 424A.095 or Laws 2014, chapter 275, article 2, section 23, and which is not exempted under paragraph (b) or (c) shall annually prepare a detailed financial report of the receipts and disbursements by the municipality for fire protection service during the preceding calendar year on a form prescribed by the state auditor. The financial report must contain any information which the state auditor deems necessary to disclose the sources of receipts and the purpose of disbursements for fire protection service. The financial report must be signed by the municipal clerk or clerk-treasurer of the municipality. The financial report must be filed by the municipal clerk or clerk-treasurer with the state auditor on or before July 1 annually. The municipality does not qualify initially to receive, and is not entitled subsequently to retain, state aid under this chapter if the financial reporting requirement or the applicable requirements of this chapter or any other statute or special law have not been complied with or are not fulfilled. 

(b) Each municipality that has an organized fire department and provides retirement coverage to its firefighters through the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G qualifies to have fire state aid transmitted to and retained in the statewide lump-sum volunteer firefighter retirement fund without filing a detailed financial report if the executive director of the Public Employees Retirement Association certifies compliance by the municipality with the requirements of sections 353G.04 and 353G.08, paragraph (e), and certifies conformity by the applicable fire chief with the requirements of section 353G.07. 

(c) Each municipality qualifies to receive fire state aid under this chapter without filing a financial report under paragraph (a) if the municipality: 

(1) has an organized fire department; 

(2) does not have a volunteer firefighters relief association directly associated with its fire department; 

(3) does not participate in the statewide lump-sum volunteer firefighter retirement plan under chapter 353G; 

(4) provides retirement coverage to its firefighters through the public employees police and fire retirement plan under sections 353.63 to 353.68; and 

(5) is certified by the executive director of the Public Employees Retirement Association to the state auditor to have had an employer contribution under section 353.65, subdivision 3, for its firefighters for the immediately prior calendar year equal to or greater than its fire state aid for the immediately prior calendar year. 

Subd. 4.Notification by commissioner and state auditor. 
(a) The state auditor, in performing an audit or examination, shall notify the Legislative Commission on Pensions and Retirement if the audit or examination reveals malfeasance, misfeasance, or nonfeasance in office by relief association officials or municipal officials. 

(b) The commissioner shall notify the Legislative Commission on Pensions and Retirement if the state auditor has not filed the required financial compliance reports by July 1. 

69.33 REPORT; AMOUNT OF PREMIUMS RECEIVED BY INSURANCE COMPANIES.
For purposes of the first class city fire insurance premium tax surcharge aid program under section 297I.10, the commissioner shall enclose in the annual statement blank that is sent to all fire insurance companies doing business in this state a blank form containing the names of all cities of the first class and require these companies, at the time of making their annual statements to the commissioner, to state on these blanks the amount of premiums received by them upon properties insured within the corporate limits of the cities named thereon during the year ending December 31st last past. Thereafter, before July first each year, the commissioner shall certify to the commissioner of management and budget the information thus obtained, together with the amount of the tax for the benefit of the pension plans covering firefighters in cities of the first class paid in such year by these companies upon these insurance premiums. 

69.80 AUTHORIZED ADMINISTRATIVE EXPENSES.
(a) Notwithstanding any provision of law to the contrary, the payment of the following necessary, reasonable and direct expenses of maintaining, protecting and administering the special fund, when provided for in the bylaws of the association and approved by the board of trustees, constitutes authorized administrative expenses of a volunteer firefighters' relief association organized under any law of this state or the Bloomington Fire Department Relief Association: 

(1) office expense, including, but not limited to, rent, utilities, equipment, supplies, postage, periodical subscriptions, furniture, fixtures, and salaries of administrative personnel; 

(2) salaries of the officers of the association, or their designees, and salaries of the members of the board of trustees of the association if the salary amounts are approved by the governing body of the entity that is responsible for meeting any minimum obligation under section 424A.092 or 424A.093, or Laws 2013, chapter 111, article 5, sections 31 to 42, and the itemized expenses of relief association officers and board members that are incurred as a result of fulfilling their responsibilities as administrators of the special fund; 

(3) tuition, registration fees, organizational dues, and other authorized expenses of the officers or members of the board of trustees incurred in attending educational conferences, seminars, or classes relating to the administration of the relief association; 

(4) audit and audit-related services, accounting and accounting-related services, and actuarial, medical, legal, and investment and performance evaluation expenses; 

(5) filing and application fees payable by the relief association to federal or other governmental entities; 

(6) reimbursement to the officers and members of the board of trustees, or their designees, for reasonable and necessary expenses actually paid and incurred in the performance of their duties as officers or members of the board; and 

(7) premiums on fiduciary liability insurance and official bonds for the officers, members of the board of trustees, and employees of the relief association. 

(b) Any other expenses of the relief association must be paid from the general fund of the association, if one exists. If a relief association has only one fund, that fund is the special fund for purposes of this section. If a relief association has a special fund and a general fund, and any expense of the relief association that is directly related to the purposes for which both funds were established, the payment of that expense must be apportioned between the two funds on the basis of the benefits derived by each fund. 

270C.131 EXPLORE MINNESOTA TOURISM TAX REPORT.
Within 30 days of the end of each quarter, the Department of Revenue shall provide Explore Minnesota Tourism with a quarterly report of comparisons of quarterly sales taxes collected under the Standard Industrial Classification System, or equivalent codes in the North America Industry Classification System, in the following areas: 

(1) SIC 70, lodging; 

(2) SIC 79, amusement and recreation; and 

(3) SIC 58, eating and drinking. 

275.29 ABSTRACTS TO COMMISSIONER OF REVENUE.
Not later than March 31, in each year, the county auditor shall make and transmit to the commissioner of revenue, in such form as may be prescribed by the commissioner of revenue, complete abstracts of the tax lists of the county, showing the number of acres of land assessed; its value, including the structures thereon; the value of town and city lots, including structures; the total value of all taxable personal property in the several assessment districts; the aggregate amount of all taxable property in the county, and the total amount of taxes levied therein for state, county, town, and all other purposes for that year. 

290.0131 INDIVIDUALS; ADDITIONS TO FEDERAL TAXABLE INCOME.Subd. 7.Fines, fees, and penalties. 
The amount of expenses disallowed under section 290.10, subdivision 2, is an addition. 

Subd. 11.Income attributable to domestic production activities. 
The amount of the deduction allowable under section 199 of the Internal Revenue Code is an addition. 

Subd. 12.Disallowed itemized deductions. 
(a) The amount of disallowed itemized deductions is an addition. The amount of disallowed itemized deductions, plus the addition required under subdivision 3, may not be more than the amount by which the itemized deductions, as allowed under section 63(d) of the Internal Revenue Code, exceeds the amount of the standard deduction as defined in section 63(c) of the Internal Revenue Code. 

(b) The amount of disallowed itemized deductions is equal to the lesser of: 

(1) three percent of the excess of the taxpayer's federal adjusted gross income over the applicable amount; or 

(2) 80 percent of the amount of the itemized deductions otherwise allowable to the taxpayer under the Internal Revenue Code for the taxable year. 

(c) "Applicable amount" means $100,000, or $50,000 for a married individual filing a separate return. Each dollar amount is increased by an amount equal to: 

(1) that dollar amount, multiplied by 

(2) the cost-of-living adjustment determined under section 1(f)(3) of the Internal Revenue Code for the calendar year in which the taxable year begins, by substituting "calendar year 1990" for "calendar year 1992" in subparagraph (B) of section 1(f)(3). 

(d) "Itemized deductions" excludes: 

(1) the deduction for medical expenses under section 213 of the Internal Revenue Code; 

(2) any deduction for investment interest as defined in section 163(d) of the Internal Revenue Code; and 

(3) the deduction under section 165(a) of the Internal Revenue Code for casualty or theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue Code or for losses described in section 165(d) of the Internal Revenue Code. 

Subd. 13.Disallowed personal exemption amount. 
(a) The amount of disallowed personal exemptions for taxpayers with federal adjusted gross income over the threshold amount is an addition. 

(b) The disallowed personal exemption amount is equal to the number of personal exemptions allowed under section 151(b) and (c) of the Internal Revenue Code multiplied by the dollar amount for personal exemptions under section 151(d)(1) and (2) of the Internal Revenue Code, as adjusted for inflation by section 151(d)(4) of the Internal Revenue Code, and by the applicable percentage. 

(c) For a married individual filing a separate return, "applicable percentage" means two percentage points for each $1,250, or fraction of that amount, by which the taxpayer's federal adjusted gross income for the taxable year exceeds the threshold amount. For all other filers, applicable percentage means two percentage points for each $2,500, or fraction of that amount, by which the taxpayer's federal adjusted gross income for the taxable year exceeds the threshold amount. The applicable percentage must not exceed 100 percent. 

(d) "Threshold amount" means: 

(1) $150,000 for a joint return or a surviving spouse; 

(2) $125,000 for a head of a household; 

(3) $100,000 for an individual who is not married and who is not a surviving spouse or head of a household; and 

(4) $75,000 for a married individual filing a separate return. 

(e) The thresholds must be increased by an amount equal to: 

(1) the threshold dollar amount, multiplied by 

(2) the cost-of-living adjustment determined under section 1(f)(3) of the Internal Revenue Code for the calendar year in which the taxable year begins, by substituting "calendar year 1990" for "calendar year 1992" in subparagraph (B) of section 1(f)(3). 

290.0132 INDIVIDUALS; SUBTRACTIONS FROM FEDERAL TAXABLE INCOME.Subd. 8.Subnational foreign taxes. 
(a) For individuals who are allowed a federal foreign tax credit for taxes that do not qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover of subnational foreign taxes for the taxable year is a subtraction, but not to exceed the total subnational foreign taxes reported in claiming the foreign tax credit. 

(b) For purposes of this subdivision, "federal foreign tax credit" means the credit allowed under section 27 of the Internal Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed under section 904(c) of the Internal Revenue Code minus national level foreign taxes to the extent they exceed the federal foreign tax credit. 

290.0133 CORPORATIONS; ADDITIONS TO FEDERAL TAXABLE INCOME.Subd. 13.Income attributable to domestic production activities. 
The amount of the deduction allowable under section 199 of the Internal Revenue Code is an addition. 

Subd. 14.Fines, fees, and penalties. 
The amount of expenses disallowed under section 290.10, subdivision 2, is an addition. 

290.0671 MINNESOTA WORKING FAMILY CREDIT.Subd. 6a.TANF appropriation for working family credit expansion. 
(a) On an annual basis the commissioner of revenue, with the assistance of the commissioner of human services, shall calculate the value of the refundable portion of the Minnesota Working Family Credit provided under this section that qualifies for payment with funds from the federal Temporary Assistance for Needy Families (TANF) block grant. Of this total amount, the commissioner of revenue shall estimate the portion entailed by the expansion of the credit rates provided in Laws 2000, chapter 490, article 4, section 17, for individuals with qualifying children over the rates provided in Laws 1999, chapter 243, article 2, section 12. 

(b) An amount sufficient to pay the refunds entailed by the expansion of the credit rates provided in Laws 2000, chapter 490, article 4, section 17, for individuals with qualifying children over the rates provided in Laws 1999, chapter 243, article 2, section 12, as estimated in paragraph (a), is appropriated to the commissioner of human services from the federal Temporary Assistance for Needy Families (TANF) block grant funds, for transfer to the commissioner of revenue for deposit in the general fund. 

290.10 NONDEDUCTIBLE ITEMS.Subd. 2.Fines, fees, and penalties. 
(a) Except as provided in this subdivision, no deduction from taxable income for a trade or business expense under section 162(a) of the Internal Revenue Code shall be allowed for any amount paid or incurred, whether by suit, agreement, or otherwise, to, or at the direction of, a government or entity described in paragraph (d) in relation to the violation of any law or the investigation or inquiry by such government or entity into the potential violation of any law. 

(b) Exception for amounts constituting restitution or paid to come into compliance with the law. Paragraph (a) does not apply to any amount which: 

(1) the taxpayer establishes: 

(i) constitutes restitution, including remediation of property for damage or harm caused by or which may be caused by the violation of any law or the potential violation of any law; or 

(ii) is paid to come into compliance with any law which was violated or involved in the investigation or inquiry; and 

(2) is identified as restitution or as an amount paid to come into compliance with the law, as the case may be, in the court order or settlement agreement. 

This paragraph does not apply to any amount paid or incurred as reimbursement to the government or entity for the costs of any investigation or litigation. 

(c) Paragraph (a) does not apply to any amount paid or incurred by order of a court in a suit in which no government or entity described in paragraph (d) is a party. 

(d) An entity is described in this paragraph if it is: 

(1) a nongovernmental entity which exercises self-regulatory powers, including imposing sanctions, in connection with a qualified board or exchange, as defined in section 1256(g)(7) of the Internal Revenue Code; or 

(2) to the extent provided in federal regulations, a nongovernmental entity which exercises self-regulatory powers, including imposing sanctions, as part of performing an essential governmental function. 

(e) Paragraph (a) does not apply to any amount paid or incurred as taxes due. 

296A.03 DISTRIBUTOR'S LICENSE.Subd. 5.Form of application; bond. 
(a) A written application shall be made in the form and manner prescribed by the commissioner. 

(b) The commissioner shall also require the applicant or licensee to deposit with the commissioner of management and budget securities of the United States government or the state of Minnesota or to execute and file a bond, with a corporate surety approved by the commissioner, to the state of Minnesota in an amount to be determined by the commissioner and in a form to be fixed by the commissioner and approved by the attorney general, and which shall be conditioned for the payment when due of all excise taxes, fees, penalties, and accrued interest arising in the ordinary course of business or by reason of any delinquent money which may be due the state. The bond shall cover all places of business within the state where petroleum products are received by the licensee. The applicant or licensee shall designate and maintain an agent in this state upon whom service may be made for all purposes of this section. 

(c) An initial applicant for a distributor's license shall furnish a bond in a minimum sum of $3,000 for the first year. 

(d) The commissioner, on reaching the opinion that the bond given by a licensee is inadequate in amount to fully protect the state, shall require an additional bond in such amount as the commissioner deems sufficient. 

(e) A licensee who desires to be exempt from depositing securities or furnishing such bond shall furnish to the commissioner an itemized financial statement showing the assets and the liabilities of the applicant. If it appears to the commissioner, from the financial statement or otherwise, that the applicant is financially responsible, then the commissioner may exempt the applicant from depositing such securities or furnishing such bond until the commissioner otherwise orders. 

(f) When the surety upon any bond issued under the provisions of this chapter have fulfilled the conditions of such bond and compensated the state for any loss occasioned by any act or omission of any licensee under this chapter, such surety shall be subrogated to all the rights of the state in connection with the transaction where such loss occurred. 

296A.04 SPECIAL FUEL DEALER'S LICENSE; REQUIREMENTS.Subd. 2.Bond. 
The provisions of section 296A.03, subdivision 5, paragraphs (b), (d), (e), and (f), relating to bonds apply to special fuel dealers. 

296A.05 BULK PURCHASER'S LICENSE; REQUIREMENTS.Subd. 2.Bond. 
The provisions of section 296A.03, subdivision 5, paragraphs (b), (d), (e), and (f), relating to bonds apply to bulk purchasers. 

297A.66 JURISDICTION TO REQUIRE COLLECTION AND REMITTANCE OF TAX BY RETAILER.Subd. 4b.Collection and remittance requirements for marketplace providers and marketplace retailers. 
(a) A marketplace provider shall collect sales and use taxes and remit them to the commissioner under section 297A.77 for all facilitated sales for a retailer, and is subject to audit on the retail sales it facilitates unless either: 

(1) the retailer provides a copy of the retailer's registration to collect sales and use tax in this state to the marketplace provider before the marketplace provider facilitates a sale; or 

(2) upon inquiry by the marketplace provider or its agent, the commissioner discloses that the retailer is registered to collect sales and use taxes in this state. 

(b) Nothing in this subdivision shall be construed to interfere with the ability of a marketplace provider and a retailer to enter into an agreement regarding fulfillment of the requirements of this chapter. 

(c) A marketplace provider is not liable under this subdivision for failure to file and collect and remit sales and use taxes if the marketplace provider demonstrates that the error was due to incorrect or insufficient information given to the marketplace provider by the retailer. This paragraph does not apply if the marketplace provider and the marketplace retailer are related as defined in subdivision 4, paragraph (b). 

297F.08 CIGARETTE STAMPS.Subd. 5.Deposit of proceeds. 
The commissioner shall use the amounts appropriated by law to purchase stamps for resale. The commissioner shall charge the purchasers for the costs of the stamps along with the tax value plus shipping costs. The costs recovered along with shipping costs must be deposited into the general fund. 

297I.25 INFORMATION RETURNS.Subd. 2.Firetown and police premium reports. 
To the extent required by section 69.021, each insurer shall file with the commissioner a Minnesota firetown premium report and Minnesota aid to police premium report. 

Repealed Minnesota Session Laws: 19-5224 

Laws 2011, First Special Session chapter 9, article 6, section 97, subdivision 6
Sec. 97.  REPEALER. Subd. 6.MinnesotaCare provider taxes. Minnesota Statutes 2010, sections 13.4967, subdivision 3; 295.50, subdivisions 1, 1a, 2, 2a, 3, 4, 6, 6a, 7, 9b, 9c, 10a, 10b, 12b, 13, 14, and 15; 295.51, subdivisions 1 and 1a; 295.52, subdivisions 1, 1a, 2, 3, 4, 4a, 5, 6, and 7; 295.53, subdivisions 1, 2, 3, and 4a; 295.54; 295.55; 295.56; 295.57; 295.58; 295.581; 295.582; and 295.59, are repealed effective for gross revenues received after December 31, 2019.8125.0410DISTRIBUTOR'S LICENSES. Subpart 1.Exemption from depositing securities or filing a bond.  
The commissioner will determine which distributor license applicants are financially responsible and, as a result, qualify for the statutory exemption from depositing securities or filing a bond, by taking into consideration all relevant factors. Those factors include the following: 

A.
 whether the applicant's financial statement reflects that the applicant's current assets are at least equal to its current liabilities and that the applicant's net worth is at least three times its average quarterly motor fuel tax liability; 

B.
 whether the applicant has failed to file or has been delinquent in filing any motor fuel tax returns; 

C.
 whether the applicant has ever failed to pay its motor fuel tax liability, paid it late, or paid with a check that was later returned by the bank unpaid; and 

D.
 any other evidence of the financial responsibility of the applicant.