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Minnesota Legislature

Office of the Revisor of Statutes

HF 42

4th Engrossment - 87th Legislature (2011 - 2012) Posted on 05/19/2011 11:27am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 4th Engrossment

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 1.29 1.30 1.31 1.32 1.33 1.34 1.35 1.36 1.37 1.38 1.39 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10
2.11 2.12
2.13 2.14 2.15 2.16 2.17 2.18
2.19
2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 2.36 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 3.36 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 4.35 4.36 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25
5.26 5.27 5.28
5.29 5.30 5.31 5.32 5.33 5.34 5.35 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 6.34 6.35 6.36 7.1 7.2 7.3
7.4 7.5 7.6 7.7
7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 7.33 7.34 7.35 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11
8.12 8.13
8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21
8.22 8.23
8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 9.33 9.34 9.35 9.36 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25
10.26 10.27 10.28 10.29 10.30
10.31 10.32 10.33 10.34 10.35 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33 11.34 11.35 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8
12.9 12.10
12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 12.33 12.34 12.35 13.1 13.2 13.3 13.4 13.5 13.6 13.7
13.8 13.9
13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30
13.31 13.32
13.33 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26 14.27 14.28 14.29 14.30 14.31 14.32 14.33 14.34 14.35 14.36 15.1 15.2
15.3 15.4
15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27
15.28 15.29
15.30 15.31 15.32 15.33 16.1 16.2 16.3 16.4 16.5 16.6 16.7
16.8 16.9
16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 16.32 16.33 17.1 17.2 17.3
17.4 17.5
17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21
17.22 17.23
17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 17.32 18.1 18.2
18.3 18.4
18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20
18.21
18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9
19.10 19.11 19.12 19.13 19.14
19.15 19.16
19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24
19.25 19.26
19.27 19.28 19.29 19.30 19.31 19.32 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 20.31 20.32 20.33 20.34 20.35 20.36
21.1 21.2 21.3
21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32 21.33 21.34 21.35 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29 22.30 22.31 22.32 22.33 22.34 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 23.34 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28
24.29 24.30 24.31
24.32 24.33 24.34 24.35 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 25.33 25.34 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 26.31 26.32 26.33 26.34 26.35 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 27.33 27.34 27.35 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9
28.10 28.11 28.12
28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24
28.25 28.26 28.27
28.28 28.29 28.30 28.31 28.32 28.33 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 29.32 29.33 29.34 29.35 30.1 30.2 30.3 30.4 30.5
30.6 30.7
30.8 30.9 30.10 30.11 30.12 30.13 30.14
30.15 30.16 30.17
30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21
31.22
31.23 31.24
31.25 31.26 31.27 31.28 31.29 31.30 31.31 31.32 31.33 32.1 32.2 32.3 32.4 32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13 32.14 32.15 32.16 32.17 32.18 32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 32.32 32.33 32.34 32.35 32.36 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 33.32 33.33
33.34 33.35
34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 34.32 34.33 34.34 34.35 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30 35.31 35.32 35.33 35.34 35.35 35.36 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30 36.31 36.32 36.33 36.34 37.1 37.2 37.3 37.4 37.5 37.6 37.7
37.8 37.9
37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19
37.20
37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31
37.32
38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30 38.31 38.32 38.33 38.34 38.35 38.36 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16
39.17 39.18
39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 39.33 39.34 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16
40.17 40.18
40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30 40.31 40.32 40.33 40.34 40.35 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22
41.23 41.24
41.25 41.26 41.27 41.28 41.29 41.30 41.31 41.32 41.33 41.34
42.1 42.2
42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32 42.33 42.34 42.35 43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16
43.17 43.18
43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32 43.33 43.34 43.35 44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31
44.32 44.33 44.34 44.35 44.36
45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12
45.13 45.14 45.15 45.16
45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 45.32 45.33 45.34 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19
46.20 46.21 46.22 46.23
46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 46.32 46.33 46.34 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8
47.9 47.10 47.11 47.12
47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26
47.27 47.28 47.29 47.30
47.31 47.32 47.33 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26
48.27 48.28
48.29 48.30
48.31 48.32
49.1 49.2
49.3 49.4 49.5
49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 49.31 49.32 49.33 49.34 50.1 50.2 50.3 50.4 50.5
50.6 50.7 50.8 50.9 50.10 50.11 50.12
50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20 50.21 50.22 50.23
50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 50.32 50.33 51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13
51.14 51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26
51.27 51.28 51.29 51.30 51.31 51.32 51.33 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17
52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 52.32 52.33 52.34 52.35 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18
53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27
53.28 53.29 53.30 53.31
53.32 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.30 54.31 54.32 54.33 54.34 54.35 54.36 55.1 55.2 55.3 55.4 55.5 55.6 55.7 55.8
55.9
55.10 55.11 55.12 55.13 55.14 55.15 55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29 55.30 55.31 55.32 55.33 55.34 56.1 56.2
56.3
56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 56.17 56.18 56.19 56.20 56.21 56.22 56.23 56.24 56.25 56.26 56.27 56.28 56.29 56.30 56.31 56.32 56.33 56.34 57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 57.31 57.32 57.33
57.34 57.35 57.36
58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13 58.14 58.15 58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30 58.31 58.32 58.33 58.34 58.35 59.1 59.2
59.3 59.4 59.5
59.6 59.7 59.8 59.9 59.10 59.11
59.12 59.13 59.14
59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26
59.27 59.28 59.29
59.30 59.31 59.32 60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17
60.18
60.19 60.20 60.21 60.22 60.23 60.24
60.25 60.26
60.27 60.28 60.29 60.30 60.31 60.32 61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14
61.15
61.16 61.17 61.18 61.19 61.20 61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29
61.30
61.31 61.32 61.33 62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10 62.11 62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26
62.27
62.28 62.29 62.30 62.31 62.32 62.33 63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9 63.10
63.11 63.12
63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 63.32 63.33 63.34 63.35 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29 64.30 64.31 64.32 64.33 64.34
64.35
65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22 65.23 65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 65.32 65.33 65.34 65.35 65.36 66.1 66.2 66.3 66.4 66.5 66.6
66.7
66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 66.32 66.33 66.34 66.35 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20
67.21 67.22 67.23
67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31 67.32
68.1 68.2 68.3
68.4 68.5 68.6 68.7 68.8
68.9
68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 68.32 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26
69.27 69.28 69.29
69.30 69.31 69.32 69.33 69.34 69.35 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18
70.19 70.20 70.21
70.22 70.23 70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 70.33 70.34 70.35 71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15
71.16 71.17 71.18
71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30 71.31 71.32 71.33 71.34 71.35 72.1 72.2 72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24
72.25 72.26 72.27
72.28 72.29 72.30 72.31 72.32 72.33 72.34 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29 73.30 73.31 73.32 73.33 73.34
74.1 74.2 74.3
74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25
74.26 74.27 74.28
74.29 74.30
74.31 74.32 74.33 75.1 75.2 75.3 75.4 75.5 75.6
75.7 75.8
75.9 75.10 75.11 75.12 75.13 75.14 75.15 75.16 75.17 75.18 75.19 75.20 75.21 75.22 75.23 75.24 75.25 75.26 75.27 75.28 75.29 75.30 75.31 75.32
75.33 75.34
76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25
76.26 76.27
76.28 76.29 76.30 76.31 76.32
76.33 76.34
77.1 77.2 77.3 77.4 77.5 77.6 77.7 77.8 77.9 77.10 77.11 77.12 77.13 77.14 77.15 77.16 77.17 77.18 77.19 77.20 77.21 77.22 77.23 77.24 77.25 77.26 77.27 77.28 77.29 77.30 77.31 77.32 77.33 77.34
77.35 77.36
78.1 78.2 78.3 78.4 78.5 78.6 78.7 78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26 78.27 78.28 78.29 78.30 78.31 78.32 78.33 78.34 78.35 78.36 79.1 79.2 79.3 79.4 79.5 79.6 79.7 79.8 79.9 79.10 79.11 79.12 79.13 79.14 79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25 79.26 79.27 79.28 79.29 79.30 79.31 79.32 79.33 79.34 79.35 79.36 80.1 80.2 80.3 80.4 80.5 80.6 80.7 80.8 80.9 80.10 80.11 80.12 80.13 80.14 80.15 80.16 80.17 80.18 80.19 80.20 80.21 80.22 80.23 80.24 80.25 80.26 80.27 80.28 80.29 80.30 80.31 80.32 80.33 80.34 80.35 81.1 81.2 81.3 81.4 81.5 81.6 81.7 81.8 81.9 81.10 81.11 81.12 81.13 81.14 81.15 81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27 81.28 81.29 81.30 81.31 81.32 81.33 81.34 81.35 82.1 82.2 82.3 82.4 82.5 82.6 82.7 82.8 82.9 82.10 82.11 82.12 82.13 82.14 82.15 82.16 82.17 82.18 82.19 82.20 82.21 82.22 82.23 82.24 82.25 82.26 82.27 82.28 82.29 82.30 82.31 82.32 82.33 82.34 82.35 82.36 83.1 83.2 83.3 83.4 83.5 83.6 83.7 83.8 83.9 83.10 83.11 83.12 83.13 83.14 83.15 83.16 83.17 83.18 83.19 83.20 83.21 83.22 83.23 83.24 83.25 83.26 83.27 83.28 83.29 83.30 83.31 83.32 83.33 83.34 83.35
84.1 84.2
84.3 84.4 84.5 84.6 84.7 84.8 84.9 84.10 84.11 84.12 84.13 84.14 84.15 84.16 84.17 84.18 84.19 84.20 84.21 84.22 84.23 84.24 84.25 84.26 84.27 84.28 84.29 84.30 84.31 84.32 84.33 84.34 84.35 85.1 85.2 85.3 85.4 85.5 85.6 85.7 85.8 85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17 85.18 85.19 85.20 85.21 85.22 85.23 85.24 85.25 85.26 85.27 85.28 85.29 85.30 85.31
85.32 85.33 85.34 85.35 85.36 86.1 86.2
86.3 86.4 86.5 86.6 86.7 86.8 86.9 86.10 86.11 86.12 86.13 86.14 86.15 86.16 86.17 86.18 86.19 86.20 86.21 86.22 86.23 86.24 86.25 86.26 86.27 86.28 86.29 86.30 86.31 86.32 86.33 86.34 86.35 87.1 87.2 87.3 87.4 87.5 87.6 87.7 87.8 87.9 87.10 87.11 87.12 87.13 87.14 87.15 87.16 87.17 87.18 87.19 87.20 87.21 87.22 87.23 87.24 87.25 87.26 87.27 87.28 87.29 87.30 87.31 87.32 87.33 87.34 87.35 87.36 88.1 88.2 88.3 88.4 88.5 88.6 88.7 88.8 88.9 88.10 88.11
88.12 88.13
88.14 88.15 88.16 88.17 88.18 88.19 88.20 88.21 88.22 88.23 88.24 88.25 88.26 88.27 88.28 88.29 88.30 88.31 88.32 88.33 88.34 88.35 89.1 89.2 89.3 89.4 89.5 89.6 89.7 89.8 89.9 89.10 89.11 89.12 89.13 89.14 89.15 89.16 89.17 89.18 89.19 89.20 89.21 89.22 89.23 89.24 89.25
89.26 89.27
89.28 89.29 89.30 89.31 89.32 89.33 89.34
90.1 90.2
90.3 90.4 90.5 90.6 90.7 90.8 90.9 90.10 90.11 90.12
90.13 90.14
90.15 90.16 90.17 90.18 90.19 90.20 90.21 90.22 90.23 90.24 90.25 90.26 90.27 90.28 90.29 90.30 90.31 90.32 91.1 91.2 91.3 91.4 91.5 91.6 91.7 91.8 91.9 91.10 91.11 91.12 91.13 91.14 91.15 91.16 91.17 91.18 91.19 91.20 91.21 91.22 91.23 91.24 91.25 91.26 91.27 91.28 91.29 91.30 91.31 91.32 91.33 91.34 91.35 91.36 92.1 92.2 92.3 92.4 92.5 92.6 92.7 92.8 92.9 92.10 92.11 92.12 92.13 92.14 92.15 92.16 92.17 92.18 92.19 92.20 92.21 92.22 92.23 92.24 92.25 92.26 92.27 92.28 92.29 92.30 92.31 92.32 92.33 92.34 92.35 92.36 93.1 93.2 93.3 93.4 93.5 93.6 93.7 93.8 93.9 93.10 93.11 93.12 93.13 93.14 93.15 93.16 93.17 93.18 93.19 93.20 93.21 93.22 93.23 93.24 93.25 93.26 93.27 93.28 93.29 93.30 93.31 93.32 93.33 93.34 93.35 94.1 94.2 94.3 94.4 94.5 94.6 94.7
94.8
94.9 94.10 94.11 94.12 94.13 94.14
94.15
94.16 94.17 94.18 94.19 94.20 94.21 94.22 94.23 94.24 94.25 94.26 94.27 94.28 94.29 94.30 94.31 94.32
94.33
95.1 95.2 95.3 95.4 95.5 95.6 95.7 95.8 95.9 95.10 95.11 95.12 95.13 95.14 95.15 95.16 95.17
95.18
95.19 95.20 95.21 95.22 95.23 95.24 95.25 95.26 95.27 95.28 95.29 95.30 95.31 95.32 95.33 95.34 95.35
96.1 96.2
96.3 96.4
96.5 96.6
96.7 96.8
96.9 96.10 96.11 96.12 96.13 96.14 96.15 96.16 96.17 96.18 96.19 96.20 96.21 96.22 96.23 96.24 96.25 96.26 96.27 96.28 96.29 96.30 96.31 96.32 96.33 97.1 97.2 97.3 97.4 97.5 97.6 97.7 97.8 97.9 97.10 97.11 97.12 97.13 97.14 97.15
97.16
97.17 97.18 97.19 97.20 97.21 97.22 97.23 97.24 97.25 97.26
97.27
97.28 97.29 97.30 97.31 97.32 98.1 98.2 98.3 98.4 98.5 98.6 98.7 98.8 98.9 98.10 98.11 98.12 98.13 98.14 98.15 98.16 98.17
98.18 98.19
98.20 98.21 98.22 98.23 98.24 98.25 98.26 98.27 98.28
98.29 98.30
98.31 98.32 98.33 99.1 99.2 99.3 99.4 99.5 99.6 99.7 99.8
99.9 99.10
99.11 99.12 99.13 99.14 99.15 99.16 99.17 99.18 99.19 99.20 99.21 99.22 99.23 99.24 99.25 99.26 99.27 99.28 99.29 99.30 99.31
99.32
100.1 100.2 100.3 100.4 100.5 100.6 100.7 100.8 100.9 100.10 100.11
100.12
100.13 100.14 100.15 100.16 100.17 100.18 100.19 100.20 100.21 100.22 100.23 100.24 100.25 100.26 100.27 100.28 100.29 100.30 100.31 100.32 100.33 100.34 101.1 101.2 101.3 101.4 101.5 101.6 101.7 101.8 101.9 101.10 101.11 101.12 101.13 101.14 101.15 101.16 101.17 101.18 101.19 101.20 101.21 101.22 101.23 101.24 101.25 101.26 101.27 101.28 101.29 101.30 101.31 101.32 101.33 101.34 101.35 101.36 102.1 102.2 102.3 102.4 102.5 102.6 102.7 102.8 102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19 102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 102.31 102.32 102.33 102.34 102.35 103.1 103.2 103.3 103.4 103.5 103.6 103.7 103.8 103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16 103.17 103.18 103.19 103.20 103.21 103.22 103.23 103.24 103.25 103.26 103.27 103.28 103.29 103.30 103.31 103.32 103.33 103.34 103.35 103.36 104.1 104.2 104.3 104.4 104.5 104.6 104.7 104.8 104.9 104.10 104.11 104.12 104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20 104.21 104.22 104.23 104.24 104.25 104.26 104.27 104.28 104.29 104.30 104.31 104.32 104.33 104.34 104.35 104.36 105.1 105.2 105.3 105.4 105.5 105.6 105.7 105.8 105.9 105.10 105.11 105.12 105.13 105.14 105.15 105.16 105.17 105.18 105.19 105.20 105.21 105.22 105.23 105.24 105.25
105.26 105.27
105.28 105.29 105.30 105.31 105.32 105.33 105.34 106.1 106.2 106.3 106.4 106.5 106.6 106.7 106.8 106.9 106.10 106.11 106.12 106.13 106.14 106.15 106.16 106.17
106.18 106.19
106.20 106.21 106.22 106.23 106.24 106.25 106.26 106.27 106.28 106.29
106.30 106.31
106.32 107.1 107.2 107.3 107.4 107.5 107.6 107.7 107.8 107.9 107.10 107.11
107.12 107.13
107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21 107.22 107.23 107.24 107.25 107.26 107.27 107.28
107.29 107.30
107.31 107.32 107.33 108.1 108.2 108.3 108.4 108.5 108.6 108.7 108.8 108.9 108.10 108.11 108.12 108.13 108.14
108.15
108.16 108.17 108.18 108.19 108.20 108.21 108.22 108.23 108.24 108.25 108.26 108.27 108.28 108.29 108.30 108.31 108.32 108.33 108.34 108.35 109.1 109.2 109.3 109.4 109.5 109.6 109.7 109.8 109.9 109.10 109.11 109.12 109.13 109.14 109.15 109.16 109.17 109.18 109.19 109.20 109.21 109.22 109.23 109.24 109.25 109.26 109.27 109.28 109.29 109.30 109.31 109.32 109.33 109.34 109.35 109.36
110.1 110.2
110.3 110.4 110.5 110.6 110.7 110.8 110.9 110.10 110.11 110.12 110.13 110.14 110.15 110.16 110.17 110.18 110.19 110.20 110.21 110.22 110.23 110.24 110.25 110.26 110.27 110.28 110.29 110.30 110.31 110.32 110.33 110.34 110.35
111.1 111.2
111.3 111.4 111.5 111.6
111.7 111.8
111.9 111.10 111.11 111.12 111.13 111.14 111.15
111.16 111.17
111.18 111.19 111.20 111.21 111.22 111.23 111.24 111.25 111.26 111.27 111.28 111.29 111.30 111.31 111.32 112.1 112.2 112.3 112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12 112.13 112.14 112.15
112.16 112.17
112.18 112.19 112.20 112.21 112.22 112.23 112.24 112.25 112.26 112.27 112.28 112.29 112.30 112.31 112.32 112.33 112.34 112.35 112.36 112.37 113.1 113.2 113.3 113.4 113.5 113.6 113.7 113.8 113.9 113.10 113.11 113.12 113.13 113.14 113.15 113.16 113.17 113.18 113.19 113.20 113.21 113.22 113.23 113.24 113.25 113.26 113.27 113.28 113.29 113.30 113.31 113.32 113.33 113.34 113.35 113.36 113.37 113.38 113.39 113.40 113.41 113.42 113.43 114.1 114.2 114.3 114.4 114.5 114.6 114.7
114.8 114.9
114.10 114.11 114.12 114.13 114.14 114.15 114.16 114.17 114.18 114.19 114.20 114.21 114.22 114.23 114.24 114.25 114.26 114.27 114.28 114.29 114.30 114.31 114.32 114.33 114.34 114.35 114.36 114.37 114.38 114.39 115.1 115.2 115.3 115.4 115.5 115.6 115.7 115.8 115.9 115.10 115.11 115.12 115.13 115.14 115.15 115.16 115.17 115.18 115.19 115.20 115.21 115.22 115.23 115.24 115.25 115.26 115.27 115.28 115.29 115.30 115.31 115.32 115.33 115.34
115.35 115.36
115.37 115.38 115.39 115.40 115.41 115.42 116.1 116.2 116.3 116.4 116.5 116.6 116.7 116.8 116.9 116.10 116.11 116.12 116.13 116.14 116.15 116.16 116.17 116.18 116.19 116.20 116.21
116.22 116.23
116.24 116.25 116.26 116.27 116.28 116.29 116.30 116.31 116.32 116.33 116.34 116.35 116.36 116.37 117.1 117.2 117.3
117.4 117.5 117.6 117.7
117.8 117.9 117.10 117.11 117.12
117.13 117.14 117.15 117.16
117.17 117.18
117.19 117.20 117.21 117.22 117.23 117.24 117.25 117.26 117.27 117.28 117.29 117.30 117.31 117.32 118.1 118.2
118.3 118.4
118.5 118.6 118.7 118.8 118.9 118.10 118.11 118.12
118.13 118.14
118.15 118.16 118.17 118.18 118.19 118.20 118.21 118.22 118.23 118.24 118.25 118.26 118.27 118.28
118.29 118.30
118.31 119.1 119.2 119.3 119.4 119.5 119.6 119.7 119.8 119.9 119.10 119.11 119.12 119.13 119.14 119.15 119.16 119.17 119.18 119.19 119.20 119.21 119.22 119.23 119.24 119.25 119.26 119.27 119.28 119.29 119.30 119.31 119.32 119.33 119.34 119.35
120.1 120.2
120.3 120.4 120.5 120.6 120.7 120.8 120.9 120.10 120.11 120.12 120.13 120.14 120.15 120.16 120.17 120.18 120.19 120.20 120.21 120.22 120.23 120.24
120.25 120.26
120.27 120.28 120.29 120.30 120.31 121.1 121.2 121.3 121.4 121.5 121.6 121.7 121.8 121.9 121.10 121.11 121.12 121.13 121.14 121.15 121.16 121.17 121.18 121.19 121.20 121.21 121.22 121.23 121.24 121.25 121.26
121.27 121.28
121.29 121.30 121.31
121.32 121.33
122.1 122.2 122.3 122.4 122.5 122.6 122.7 122.8 122.9 122.10 122.11 122.12 122.13 122.14 122.15 122.16 122.17 122.18 122.19 122.20 122.21 122.22 122.23
122.24 122.25
122.26 122.27 122.28 122.29 122.30 122.31 122.32 122.33 122.34 122.35 123.1 123.2 123.3 123.4 123.5 123.6 123.7 123.8 123.9 123.10 123.11 123.12 123.13 123.14 123.15 123.16 123.17 123.18 123.19 123.20
123.21 123.22
123.23 123.24 123.25 123.26 123.27 123.28 123.29 123.30 123.31 123.32 123.33 123.34 124.1 124.2 124.3 124.4 124.5 124.6 124.7 124.8 124.9
124.10 124.11
124.12 124.13 124.14 124.15 124.16 124.17 124.18
124.19
124.20 124.21 124.22 124.23 124.24
124.25
124.26 124.27 124.28 124.29
124.30
125.1 125.2 125.3 125.4 125.5 125.6 125.7 125.8 125.9 125.10 125.11 125.12 125.13 125.14 125.15
125.16 125.17 125.18 125.19 125.20 125.21 125.22 125.23 125.24 125.25 125.26 125.27 125.28 125.29 125.30 125.31 125.32 125.33 125.34 125.35 126.1 126.2 126.3 126.4 126.5
126.6 126.7 126.8 126.9 126.10 126.11 126.12 126.13 126.14 126.15 126.16 126.17 126.18 126.19 126.20 126.21 126.22 126.23 126.24 126.25 126.26 126.27 126.28 126.29 126.30 126.31 126.32 126.33 126.34 127.1 127.2 127.3 127.4 127.5 127.6 127.7 127.8 127.9 127.10 127.11 127.12 127.13 127.14
127.15
127.16 127.17 127.18 127.19 127.20 127.21 127.22 127.23 127.24
127.25 127.26 127.27 127.28 127.29 127.30 127.31 127.32
128.1 128.2
128.3 128.4 128.5 128.6 128.7 128.8 128.9 128.10 128.11 128.12 128.13 128.14 128.15
128.16 128.17
128.18 128.19 128.20 128.21 128.22 128.23 128.24 128.25 128.26 128.27 128.28 128.29 128.30 128.31 128.32 128.33 128.34 129.1
129.2 129.3
129.4 129.5 129.6 129.7 129.8 129.9 129.10
129.11 129.12
129.13 129.14 129.15 129.16 129.17 129.18 129.19 129.20 129.21 129.22 129.23 129.24 129.25 129.26 129.27 129.28 129.29 129.30 129.31 129.32 130.1 130.2 130.3
130.4 130.5
130.6 130.7 130.8 130.9 130.10 130.11 130.12 130.13 130.14 130.15 130.16
130.17 130.18
130.19 130.20 130.21 130.22 130.23 130.24 130.25 130.26 130.27
130.28 130.29
130.30 130.31 130.32 131.1 131.2 131.3 131.4
131.5 131.6
131.7 131.8 131.9 131.10 131.11 131.12 131.13 131.14 131.15 131.16 131.17 131.18 131.19 131.20 131.21 131.22 131.23
131.24 131.25
131.26 131.27 131.28 131.29 131.30 131.31 131.32 131.33 132.1 132.2 132.3 132.4 132.5 132.6 132.7 132.8 132.9 132.10 132.11 132.12 132.13 132.14 132.15 132.16 132.17
132.18 132.19
132.20 132.21 132.22 132.23 132.24 132.25 132.26 132.27 132.28 132.29 132.30 132.31 132.32 132.33 132.34 133.1 133.2 133.3 133.4 133.5 133.6 133.7 133.8 133.9 133.10 133.11 133.12 133.13 133.14 133.15 133.16 133.17 133.18 133.19 133.20 133.21 133.22 133.23 133.24 133.25 133.26 133.27 133.28 133.29 133.30 133.31 133.32 133.33 133.34 133.35 133.36 134.1 134.2 134.3 134.4 134.5 134.6 134.7 134.8 134.9 134.10 134.11 134.12 134.13 134.14 134.15
134.16
134.17 134.18 134.19 134.20 134.21 134.22 134.23 134.24 134.25 134.26 134.27 134.28 134.29 134.30 134.31 134.32 134.33 134.34 134.35 135.1 135.2 135.3 135.4 135.5 135.6 135.7 135.8 135.9 135.10 135.11 135.12 135.13 135.14
135.15 135.16 135.17 135.18
135.19 135.20 135.21
135.22 135.23
135.24 135.25 135.26 135.27 135.28 135.29 135.30 135.31 135.32 135.33
136.1 136.2
136.3 136.4 136.5 136.6
136.7 136.8 136.9 136.10
136.11 136.12 136.13 136.14

A bill for an act
relating to the financing of state and local government; making changes to
individual income, corporate franchise, estate, property, aids, credits, payments,
refunds, sales and use, tax increment financing, minerals, local, and other
taxes and tax-related provisions; authorizing border city development zone
powers and local taxes; extending levy limits; repealing sustainable forest
resource management incentive; authorizing grants to local governments for
cooperation and consolidation; providing a science and technology program;
conforming to changes made to the Internal Revenue Code; permitting certain
appeals; modifying provision allowing for a reciprocity agreement with state of
Wisconsin; setting the levels of the cash flow account and the budget reserve
account; suspending certain maintenance of effort requirements; requiring
studies; requiring reports; appropriating money; amending Minnesota Statutes
2010, sections 88.49, subdivisions 5, 9a; 97A.061, subdivisions 1, 3; 126C.01,
subdivision 3; 270A.03, subdivision 7; 270B.12, by adding a subdivision;
270C.13, subdivision 1; 272.02, subdivision 39, by adding a subdivision;
273.111, by adding a subdivision; 273.114, subdivision 2, as amended; 273.121,
subdivision 1; 273.13, subdivisions 23, 25, 34, by adding a subdivision;
273.1384, subdivisions 3, 4; 273.1393; 273.1398, subdivision 3; 274.01,
subdivision 1; 275.025, subdivisions 1, 3, 4; 275.70, subdivision 5; 275.71,
subdivisions 2, 4, 5; 276.04, subdivision 2; 289A.02, subdivision 7, as amended;
289A.20, subdivision 4; 289A.50, subdivision 1; 290.01, subdivisions 6, 19, as
amended, 19a, as amended, 19b, 19c, as amended, 31, as amended; 290.05,
subdivision 1; 290.06, subdivision 2c; 290.0674, subdivision 1; 290.068,
subdivision 1; 290.081; 290.091, subdivision 2; 290.191, subdivisions 2, 3;
290A.03, subdivisions 11, 13, 15, as amended; 290A.04, subdivisions 2, 2a,
4, by adding a subdivision; 291.005, subdivision 1; 291.03, subdivision 1, by
adding subdivisions; 297A.61, subdivision 3; 297A.62, by adding a subdivision;
297A.63, by adding a subdivision; 297A.668, subdivision 7, by adding a
subdivision; 297A.68, by adding a subdivision; 297A.70, subdivisions 1, 2, 3, 8;
297A.75, subdivisions 1, 2, 3; 297A.82, subdivision 4; 297A.99, subdivisions
1, 3; 298.001, by adding a subdivision; 298.01, subdivisions 3, 3a; 298.015,
subdivisions 1, 2; 298.016, subdivision 4; 298.225, subdivision 1; 298.24,
subdivision 1; 298.28, subdivision 3; 469.176, subdivisions 4c, 4m; 469.1763,
subdivision 2; 473.757, subdivision 11; 477A.011, subdivision 20, by adding
a subdivision; 477A.0124, by adding a subdivision; 477A.013, subdivisions
8, 9, by adding a subdivision; 477A.03; 477A.11, subdivision 1; 477A.12,
subdivision 1; 477A.14, subdivision 1; 477A.17; Laws 1996, chapter 471, article
2, section 29, subdivision 1, as amended; Laws 1998, chapter 389, article 8,
section 43, subdivisions 3, as amended, 4, as amended, 5, as amended; Laws
2008, chapter 366, article 7, section 19, subdivision 3; Laws 2010, chapter 389,
article 5, section 6, subdivision 1; article 7, section 22; proposing coding for
new law in Minnesota Statutes, chapters 116W; 275; 373; repealing Minnesota
Statutes 2010, sections 10A.322, subdivision 4; 13.4967, subdivisions 2, 2b;
273.1384, subdivisions 1, 6; 275.025; 275.295; 289A.60, subdivision 31; 290.06,
subdivision 23; 290C.01; 290C.02; 290C.03; 290C.04; 290C.05; 290C.055;
290C.06; 290C.07; 290C.08; 290C.09; 290C.10; 290C.11; 290C.12; 290C.13;
298.017; 298.28, subdivisions 8, 9c; 298.285; 477A.145.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

INDIVIDUAL INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES

Section 1.

Minnesota Statutes 2010, section 270B.12, is amended by adding a
subdivision to read:


new text begin Subd. 14. new text end

new text begin Wisconsin secretary of revenue; income tax reciprocity benchmark
study.
new text end

new text begin The commissioner may disclose return information to the secretary of revenue
of the state of Wisconsin for the purpose of conducting a joint individual income tax
reciprocity study.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2010, section 290.01, subdivision 19b, is amended to read:


Subd. 19b.

Subtractions from federal taxable income.

For individuals, estates,
and trusts, there shall be subtracted from federal taxable income:

(1) net interest income on obligations of any authority, commission, or
instrumentality of the United States to the extent includable in taxable income for federal
income tax purposes but exempt from state income tax under the laws of the United States;

(2) if included in federal taxable income, the amount of any overpayment of income
tax to Minnesota or to any other state, for any previous taxable year, whether the amount
is received as a refund or as a credit to another taxable year's income tax liability;

(3) the amount paid to others, less the amount used to claim the credit allowed under
section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
transportation of each qualifying child in attending an elementary or secondary school
situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
resident of this state may legally fulfill the state's compulsory attendance laws, which
is not operated for profit, and which adheres to the provisions of the Civil Rights Act
of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause,
"textbooks" includes books and other instructional materials and equipment purchased
or leased for use in elementary and secondary schools in teaching only those subjects
legally and commonly taught in public elementary and secondary schools in this state.
Equipment expenses qualifying for deduction includes expenses as defined and limited in
section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
books and materials used in the teaching of religious tenets, doctrines, or worship, the
purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
or materials for, or transportation to, extracurricular activities including sporting events,
musical or dramatic events, speech activities, driver's education, or similar programs. No
deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
the qualifying child's vehicle to provide such transportation for a qualifying child. For
purposes of the subtraction provided by this clause, "qualifying child" has the meaning
given in section 32(c)(3) of the Internal Revenue Code;

(4) income as provided under section 290.0802;

(5) to the extent included in federal adjusted gross income, income realized on
disposition of property exempt from tax under section 290.491;

(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
of the Internal Revenue Code in determining federal taxable income by an individual
who does not itemize deductions for federal income tax purposes for the taxable year, an
amount equal to 50 percent of the excess of charitable contributions over $500 allowable
as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
under the provisions of Public Law 109-1 and Public Law 111-126;

(7) 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, but not to exceed the total subnational
foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
"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;

(8) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case
of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth
of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or
subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the
positive value of any net operating loss under section 172 of the Internal Revenue Code
generated for the tax year of the addition. The resulting delayed depreciation cannot be
less than zero;

(9) job opportunity building zone income as provided under section 469.316;

(10) to the extent included in federal taxable income, the amount of compensation
paid to members of the Minnesota National Guard or other reserve components of the
United States military for active service performed in Minnesota, excluding compensation
for services performed under the Active Guard Reserve (AGR) program. For purposes of
this clause, "active service" means (i) state active service as defined in section 190.05,
subdivision 5a
, clause (1); (ii) federally funded state active service as defined in section
190.05, subdivision 5b; or (iii) federal active service as defined in section 190.05,
subdivision 5c
, but "active service" excludes service performed in accordance with section
190.08, subdivision 3;

(11) to the extent included in federal taxable income, the amount of compensation
paid to Minnesota residents who are members of the armed forces of the United States or
United Nations for active duty performed outside Minnesota under United States Code,
title 10, section 101(d); United States Code, title 32, section 101(12); or the authority of
the United Nations;

(12) an amount, not to exceed $10,000, equal to qualified expenses related to a
qualified donor's donation, while living, of one or more of the qualified donor's organs
to another person for human organ transplantation. For purposes of this clause, "organ"
means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
"human organ transplantation" means the medical procedure by which transfer of a human
organ is made from the body of one person to the body of another person; "qualified
expenses" means unreimbursed expenses for both the individual and the qualified donor
for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
may be subtracted under this clause only once; and "qualified donor" means the individual
or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
individual may claim the subtraction in this clause for each instance of organ donation for
transplantation during the taxable year in which the qualified expenses occur;

(13) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a
shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the
case of a shareholder of a corporation that is an S corporation, minus the positive value of
any net operating loss under section 172 of the Internal Revenue Code generated for the
tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
subtraction is not allowed under this clause;

(14) to the extent included in federal taxable income, compensation paid to a service
member as defined in United States Code, title 10, section 101(a)(5), for military service
as defined in the Servicemembers Civil Relief Act, Public Law 108-189, section 101(2);

(15) international economic development zone income as provided under section
469.325;

(16) to the extent included in federal taxable income, the amount of national service
educational awards received from the National Service Trust under United States Code,
title 42, sections 12601 to 12604, for service in an approved Americorps National Service
program; deleted text beginand
deleted text end

(17) to the extent included in federal taxable income, discharge of indebtedness
income resulting from reacquisition of business indebtedness included in federal taxable
income under section 108(i) of the Internal Revenue Code. This subtraction applies only
to the extent that the income was included in net income in a prior year as a result of the
addition under section 290.01, subdivision 19a, clause (16)deleted text begin.deleted text endnew text begin;
new text end

new text begin (18) to the extent not deducted in computing federal taxable income, charitable
contributions of food inventory as determined under the provisions of section 170(e)(3)(C)
of the Internal Revenue Code, determined without regard to the termination date under
section 170(e)(3)(C)(iv); and
new text end

new text begin (19) to the extent included in federal taxable income, 55 percent of compensation
received from a pension or other retirement pay from the federal government for service
in the military, as computed under United States Code, title 10, sections 1401 to 1414,
1447 to 1455, and 12733.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Clause (18) is effective for taxable years beginning after
December 31, 2010. Clause (19) is effective for taxable years beginning after December
31, 2012.
new text end

Sec. 3.

Minnesota Statutes 2010, section 290.06, subdivision 2c, is amended to read:


Subd. 2c.

Schedules of rates for individuals, estates, and trusts.

(a) The income
taxes imposed by this chapter upon married individuals filing joint returns and surviving
spouses as defined in section 2(a) of the Internal Revenue Code must be computed by
applying to their taxable net income the following schedule of rates:

(1) On the first $25,680, 5.35 percent;

(2) On all over $25,680, but not over $102,030, 7.05 percent;

(3) On all over $102,030, 7.85 percent.

Married individuals filing separate returns, estates, and trusts must compute their
income tax by applying the above rates to their taxable income, except that the income
brackets will be one-half of the above amounts.

(b) The income taxes imposed by this chapter upon unmarried individuals must be
computed by applying to taxable net income the following schedule of rates:

(1) On the first $17,570, 5.35 percent;

(2) On all over $17,570, but not over $57,710, 7.05 percent;

(3) On all over $57,710, 7.85 percent.

(c) The income taxes imposed by this chapter upon unmarried individuals qualifying
as a head of household as defined in section 2(b) of the Internal Revenue Code must be
computed by applying to taxable net income the following schedule of rates:

(1) On the first $21,630, 5.35 percent;

(2) On all over $21,630, but not over $86,910, 7.05 percent;

(3) On all over $86,910, 7.85 percent.

(d) In lieu of a tax computed according to the rates set forth in this subdivision, the
tax of any individual taxpayer whose taxable net income for the taxable year is less than
an amount determined by the commissioner must be computed in accordance with tables
prepared and issued by the commissioner of revenue based on income brackets of not
more than $100. The amount of tax for each bracket shall be computed at the rates set
forth in this subdivision, provided that the commissioner may disregard a fractional part of
a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.

(e) An individual who is not a Minnesota resident for the entire year must compute
the individual's Minnesota income tax as provided in this subdivision. After the
application of the nonrefundable credits provided in this chapter, the tax liability must
then be multiplied by a fraction in which:

(1) the numerator is the individual's Minnesota source federal adjusted gross income
as defined in section 62 of the Internal Revenue Code and increased by the additions
required under section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12),
(13), (16), and (17), and reduced by the Minnesota assignable portion of the subtraction
for United States government interest under section 290.01, subdivision 19b, clause (1),
and the subtractions under section 290.01, subdivision 19b, clauses (8), (9), (13), (14),
(15), deleted text beginanddeleted text end (17), new text begin(18), and (19), new text endafter applying the allocation and assignability provisions of
section 290.081, clause (a), or 290.17; and

(2) the denominator is the individual's federal adjusted gross income as defined in
section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in
section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12), (13), (16), and (17),
and reduced by the amounts specified in section 290.01, subdivision 19b, clauses (1), (8),
(9), (13), (14), (15), deleted text beginanddeleted text end (17)new text begin, (18), and (19)new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2010, except that the new references to Minnesota Statutes, section 290.01,
subdivision 19b, clause (19), in paragraph (e), clauses (1) and (2), are effective for taxable
years beginning after December 31, 2012.
new text end

Sec. 4.

Minnesota Statutes 2010, section 290.0674, subdivision 1, is amended to read:


Subdivision 1.

Credit allowed.

An individual is allowed a credit against the
tax imposed by this chapter in an amount equal to 75 percent of the amount paid for
education-related expenses for a qualifying child in kindergarten through grade 12. For
purposes of this section, "education-related expenses" means:

(1) fees or tuition for instruction by an instructor under section 120A.22, subdivision
10
, clause (1), (2), (3), (4), or (5), or a member of the Minnesota Music Teachers
Association, and who is not a lineal ancestor or sibling of the dependent for instruction
outside the regular school day or school year, including tutoring, driver's education
offered as part of school curriculum, regardless of whether it is taken from a public or
private entity or summer camps, in grade or age appropriate curricula that supplement
curricula and instruction available during the regular school year, that assists a dependent
to improve knowledge of core curriculum areas or to expand knowledge and skills under
the required academic standards under section 120B.021, subdivision 1, and the elective
standard under section 120B.022, subdivision 1, clause (2), and that do not include the
teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such
tenets, doctrines, or worship;

(2) expenses for textbooks, including books and other instructional materials and
equipment purchased or leased for use in elementary and secondary schools in teaching
only those subjects legally and commonly taught in public elementary and secondary
schools in this state. "Textbooks" does not include instructional books and materials
used in the teaching of religious tenets, doctrines, or worship, the purpose of which is
to instill such tenets, doctrines, or worship, nor does it include books or materials for
extracurricular activities including sporting events, musical or dramatic events, speech
activities, driver's education, or similar programs;

(3) a maximum expense of $200 per family for personal computer hardware,
excluding single purpose processors, and educational software that assists a dependent to
improve knowledge of core curriculum areas or to expand knowledge and skills under
the required academic standards under section 120B.021, subdivision 1, and the elective
standard under section 120B.022, subdivision 1, clause (2), purchased for use in the
taxpayer's home and not used in a trade or business regardless of whether the computer is
required by the dependent's school; and

(4) the amount paid to others for new text begintuition and new text endtransportation of a qualifying child
attending an elementary or secondary school situated in Minnesota, North Dakota, South
Dakota, Iowa, or Wisconsin, wherein a resident of this state may legally fulfill the state's
compulsory attendance laws, which is not operated for profit, and which adheres to the
provisions of the Civil Rights Act of 1964 and chapter 363A.

For purposes of this section, "qualifying child" has the meaning given in section
32(c)(3) of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2012.
new text end

Sec. 5.

Minnesota Statutes 2010, section 290.068, subdivision 1, is amended to read:


Subdivision 1.

Credit allowed.

A corporation, partners in a partnership, or
shareholders in a corporation treated as an "S" corporation under section 290.9725 are
allowed a credit against the tax computed under this chapter for the taxable year equal to:

(a) ten percent of the first $2,000,000 of the excess (if any) of

(1) the qualified research expenses for the taxable year, over

(2) the base amount; and

(b) deleted text begin2.5deleted text endnew text begin 4.7new text end percent on all of such excess expenses over $2,000,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2013.
new text end

Sec. 6.

Minnesota Statutes 2010, section 290.081, is amended to read:


290.081 INCOME OF NONRESIDENTS, RECIPROCITY.

new text begin Subdivision 1. new text end

new text begin Reciprocity with other states. new text end

(a) The compensation received for
the performance of personal or professional services within this state by an individual
whose residence, place of abode, and place customarily returned to at least once a month
is in another state, shall be excluded from gross income to the extent such compensation is
subject to an income tax imposed by the state of residence; provided that such state allows
a similar exclusion of compensation received by residents of Minnesota for services
performed therein.

(b) When it is deemed to be in the best interests of the people of this state, the
commissioner may determine that the provisions of paragraph (a) shall not applynew text begin, as they
relate to all states except Wisconsin. The provisions of paragraph (a) apply with respect
to Wisconsin only for taxable years in which a reciprocity agreement with Wisconsin is
in effect as provided by this section
new text end. As long as the provisions of paragraph (a) apply
between Minnesota and Wisconsin, the provisions of paragraph (a) shall apply to any
individual who is domiciled in Wisconsin.

(c) For the purposes of paragraph (a), whenever the Wisconsin tax on Minnesota
residents which would have been paid Wisconsin without paragraph (a) exceeds the
Minnesota tax on Wisconsin residents which would have been paid Minnesota without
paragraph (a), or vice versa, then the state with the net revenue loss resulting from
paragraph (a) must be compensated by the other state as provided in the agreement under
paragraph (d). This provision shall be effective for all years beginning after December 31,
1972. The data used for computing the loss to either state shall be determined on or before
September 30 of the year following the close of the previous calendar year.

(d) Interest is payable on all amounts calculated under paragraph (c) relating to
taxable years beginning after December 31, 2000new text begin and before January 1, 2010new text end. Interest
accrues from July 1 of the taxable year.

new text begin (e) new text endThe deleted text begincommissioner of revenue is authorized to enter into agreementsdeleted text endnew text begin reciprocity
agreement
new text end with the state of Wisconsin deleted text beginspecifyingdeleted text endnew text begin must specifynew text end the compensation required
under paragraph (b), deleted text beginthedeleted text endnew text begin one or more new text end reciprocity payment due deleted text begindate,deleted text end new text begindates for the revenue
loss relating to each taxable year, with one or more estimated payment due dates in the
same fiscal year in which the revenue loss occurred, and a final payment in the following
fiscal year,
new text endconditions constituting delinquency, interest rates, and a method for computing
interest due. new text beginInterest is payable from July 1 of the taxable year on final payments made in
the following fiscal year.
new text endCalculation of compensation under the agreement must specify
if the revenue loss is determined before or after the allowance of each state's credit for
taxes paid to the other state.

deleted text begin (e)deleted text endnew text begin (f)new text end If an agreement cannot be reached as to the amount of the loss, the
commissioner of revenue and the taxing official of the state of Wisconsin shall each
appoint a member of a board of arbitration and these members shall appoint the third
member of the board. The board shall select one of its members as chair. Such board may
administer oaths, take testimony, subpoena witnesses, and require their attendance, require
the production of books, papers and documents, and hold hearings at such places as are
deemed necessary. The board shall then make a determination as to the amount to be paid
the other state which determination shall be final and conclusive.

deleted text begin (f)deleted text endnew text begin (g)new text end The commissioner may furnish copies of returns, reports, or other information
to the taxing official of the state of Wisconsin, a member of the board of arbitration, or a
consultant under joint contract with the states of Minnesota and Wisconsin for the purpose
of making a determination as to the amount to be paid the other state under the provisions
of this section. Prior to the release of any information under the provisions of this section,
the person to whom the information is to be released shall sign an agreement which
provides that the person will protect the confidentiality of the returns and information
revealed thereby to the extent that it is protected under the laws of the state of Minnesota.

new text begin (h) Any reciprocity agreement entered into under this section continues in effect
until terminated by Minnesota or Wisconsin law. The commissioner may agree to modify
the timing or method of calculating the state payments to be made under the agreement,
consistent with the requirements of paragraphs (c) and (e), but may not terminate the
agreement.
new text end

new text begin Subd. 2. new text end

new text begin New reciprocity agreement with Wisconsin. new text end

new text begin (a) The commissioner of
revenue is directed to initiate negotiations with the secretary of revenue of Wisconsin,
with the objective of entering into an income tax reciprocity agreement effective for tax
years beginning after December 31, 2011. The agreement must satisfy the conditions of
subdivision 1, with one or more estimated payment due dates and a final payment due
date specified so that the state with a net revenue loss as a result of the agreement receives
estimated payments from the other state, in the same fiscal year as that in which the net
revenue loss occurred and a final payment with interest in the following fiscal year.
new text end

new text begin (b) The commissioner may not enter into an income tax reciprocity agreement
with Wisconsin under this section until after Wisconsin has paid in full with interest the
amount due to Minnesota under the income tax reciprocity agreement in effect for taxable
years beginning before January 1, 2010.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Subdivision 2 is effective the day following final enactment.
The changes to subdivision 1 are effective for taxable years beginning after December 31
of the year of the agreement, contingent upon agreement from the state of Wisconsin to a
reciprocity arrangement in which estimated payments are made in the same fiscal year in
which a change in revenue occurs, and a final payment is made in the following fiscal year.
new text end

Sec. 7.

Minnesota Statutes 2010, section 290.091, subdivision 2, is amended to read:


Subd. 2.

Definitions.

For purposes of the tax imposed by this section, the following
terms have the meanings given:

(a) "Alternative minimum taxable income" means the sum of the following for
the taxable year:

(1) the taxpayer's federal alternative minimum taxable income as defined in section
55(b)(2) of the Internal Revenue Code;

(2) the taxpayer's itemized deductions allowed in computing federal alternative
minimum taxable income, but excluding:

(i) the charitable contribution deduction under section 170 of the Internal Revenue
Codenew text begin, including any additional subtraction for charitable contributions of food inventory
under section 290.01, subdivision 19b
new text end;

(ii) the medical expense deduction;

(iii) the casualty, theft, and disaster loss deduction; and

(iv) the impairment-related work expenses of a disabled person;

(3) for depletion allowances computed under section 613A(c) of the Internal
Revenue Code, with respect to each property (as defined in section 614 of the Internal
Revenue Code), to the extent not included in federal alternative minimum taxable income,
the excess of the deduction for depletion allowable under section 611 of the Internal
Revenue Code for the taxable year over the adjusted basis of the property at the end of the
taxable year (determined without regard to the depletion deduction for the taxable year);

(4) to the extent not included in federal alternative minimum taxable income, the
amount of the tax preference for intangible drilling cost under section 57(a)(2) of the
Internal Revenue Code determined without regard to subparagraph (E);

(5) to the extent not included in federal alternative minimum taxable income, the
amount of interest income as provided by section 290.01, subdivision 19a, clause (1); and

(6) the amount of addition required by section 290.01, subdivision 19a, clauses (7)
to (9), (12), (13), (16), and (17);

less the sum of the amounts determined under the following:

(1) interest income as defined in section 290.01, subdivision 19b, clause (1);

(2) an overpayment of state income tax as provided by section 290.01, subdivision
19b
, clause (2), to the extent included in federal alternative minimum taxable income;

(3) the amount of investment interest paid or accrued within the taxable year on
indebtedness to the extent that the amount does not exceed net investment income, as
defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include
amounts deducted in computing federal adjusted gross income; and

(4) amounts subtracted from federal taxable income as provided by section 290.01,
subdivision 19b
, clauses (6), (8) to (15), deleted text beginanddeleted text end (17)new text begin, and (19)new text end.

In the case of an estate or trust, alternative minimum taxable income must be
computed as provided in section 59(c) of the Internal Revenue Code.

(b) "Investment interest" means investment interest as defined in section 163(d)(3)
of the Internal Revenue Code.

(c) "Net minimum tax" means the minimum tax imposed by this section.

(d) "Regular tax" means the tax that would be imposed under this chapter (without
regard to this section and section 290.032), reduced by the sum of the nonrefundable
credits allowed under this chapter.

(e) "Tentative minimum tax" equals 6.4 percent of alternative minimum taxable
income after subtracting the exemption amount determined under subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2010.
new text end

Sec. 8.

Minnesota Statutes 2010, section 290.191, subdivision 2, is amended to read:


Subd. 2.

Apportionment formula of general application.

deleted text begin(a)deleted text end Except for those
trades or businesses required to use a different formula under subdivision 3 or section
290.36, and for those trades or businesses that receive permission to use some other
method under section 290.20 or under subdivision 4, a trade or business required to
apportion its net income must apportion its income to this state on the basis of the
deleted text begin percentage obtained by taking the sum of:
deleted text end

deleted text begin (1) the percent for the sales factor under paragraph (b) of thedeleted text end percentage which
the sales made within this state in connection with the trade or business during the tax
period are of the total sales wherever made in connection with the trade or business during
the tax perioddeleted text begin;deleted text endnew text begin.
new text end

deleted text begin (2) the percent for the property factor under paragraph (b) of the percentage which
the total tangible property used by the taxpayer in this state in connection with the trade or
business during the tax period is of the total tangible property, wherever located, used by
the taxpayer in connection with the trade or business during the tax period; and
deleted text end

deleted text begin (3) the percent for the payroll factor under paragraph (b) of the percentage which
the taxpayer's total payrolls paid or incurred in this state or paid in respect to labor
performed in this state in connection with the trade or business during the tax period are
of the taxpayer's total payrolls paid or incurred in connection with the trade or business
during the tax period.
deleted text end

deleted text begin (b) For purposes of paragraph (a) and subdivision 3, the following percentages apply
for the taxable years specified:
deleted text end

deleted text begin Taxable years beginning
during calendar year
deleted text end
deleted text begin Sales factor
percent
deleted text end
deleted text begin Property factor
percent
deleted text end
deleted text begin Payroll factor
percent
deleted text end
deleted text begin 2007
deleted text end
deleted text begin 78
deleted text end
deleted text begin 11
deleted text end
deleted text begin 11
deleted text end
deleted text begin 2008
deleted text end
deleted text begin 81
deleted text end
deleted text begin 9.5
deleted text end
deleted text begin 9.5
deleted text end
deleted text begin 2009
deleted text end
deleted text begin 84
deleted text end
deleted text begin 8
deleted text end
deleted text begin 8
deleted text end
deleted text begin 2010
deleted text end
deleted text begin 87
deleted text end
deleted text begin 6.5
deleted text end
deleted text begin 6.5
deleted text end
deleted text begin 2011
deleted text end
deleted text begin 90
deleted text end
deleted text begin 5
deleted text end
deleted text begin 5
deleted text end
deleted text begin 2012
deleted text end
deleted text begin 93
deleted text end
deleted text begin 3.5
deleted text end
deleted text begin 3.5
deleted text end
deleted text begin 2013
deleted text end
deleted text begin 96
deleted text end
deleted text begin 2
deleted text end
deleted text begin 2
deleted text end
deleted text begin 2014 and later calendar years
deleted text end
deleted text begin 100
deleted text end
deleted text begin 0
deleted text end
deleted text begin 0
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2011.
new text end

Sec. 9.

Minnesota Statutes 2010, section 290.191, subdivision 3, is amended to read:


Subd. 3.

Apportionment formula for financial institutions.

Except for an
investment company required to apportion its income under section 290.36, a financial
institution that is required to apportion its net income must apportion its net income to this
state on the basis of the percentage deleted text beginobtained by taking the sum of:
deleted text end

deleted text begin (1) the percent for the sales factor under subdivision 2, paragraph (b), of the
percentage
deleted text end which the receipts from within this state in connection with the trade or
business during the tax period are of the total receipts in connection with the trade or
business during the tax period, from wherever deriveddeleted text begin;deleted text endnew text begin.
new text end

deleted text begin (2) the percent for the property factor under subdivision 2, paragraph (b), of the
percentage which the sum of the total tangible property used by the taxpayer in this
state and the intangible property owned by the taxpayer and attributed to this state in
connection with the trade or business during the tax period is of the sum of the total
tangible property, wherever located, used by the taxpayer and the intangible property
owned by the taxpayer and attributed to all states in connection with the trade or business
during the tax period; and
deleted text end

deleted text begin (3) the percent for the payroll factor under subdivision 2, paragraph (b), of the
percentage which the taxpayer's total payrolls paid or incurred in this state or paid in
respect to labor performed in this state in connection with the trade or business during
the tax period are of the taxpayer's total payrolls paid or incurred in connection with
the trade or business during the tax period.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2011.
new text end

Sec. 10.

Minnesota Statutes 2010, section 291.005, subdivision 1, is amended to read:


Subdivision 1.

Scope.

Unless the context otherwise clearly requires, the following
terms used in this chapter shall have the following meanings:

(1) "Commissioner" means the commissioner of revenue or any person to whom the
commissioner has delegated functions under this chapter.

(2) "Federal gross estate" means the gross estate of a decedent as required to be
valued and otherwise determined for federal estate tax purposes under the Internal
Revenue Code.

(3) "Internal Revenue Code" means the United States Internal Revenue Code of
1986, as amended through March 18, 2010, but without regard to the provisions of
sections 501 and 901 of Public Law 107-16.

(4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as
defined by section 2011(b)(3) of the Internal Revenue Code, deleted text beginincreased bydeleted text endnew text begin plus
new text end

new text begin (i)new text end the amount of deduction for state death taxes allowed under section 2058 of
the Internal Revenue Codenew text begin; less
new text end

new text begin (ii) (A) the value of qualified small business property under section 291.03,
subdivision 9, and the value of qualified farm property under section 291.03, subdivision
10, or (B) $4,000,000, whichever is less
new text end.

(5) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
excluding therefrom any property included therein which has its situs outside Minnesota,
and (b) including therein any property omitted from the federal gross estate which is
includable therein, has its situs in Minnesota, and was not disclosed to federal taxing
authorities.

(6) "Nonresident decedent" means an individual whose domicile at the time of
death was not in Minnesota.

(7) "Personal representative" means the executor, administrator or other person
appointed by the court to administer and dispose of the property of the decedent. If there
is no executor, administrator or other person appointed, qualified, and acting within this
state, then any person in actual or constructive possession of any property having a situs in
this state which is included in the federal gross estate of the decedent shall be deemed
to be a personal representative to the extent of the property and the Minnesota estate tax
due with respect to the property.

(8) "Resident decedent" means an individual whose domicile at the time of death
was in Minnesota.

(9) "Situs of property" means, with respect to real property, the state or country in
which it is located; with respect to tangible personal property, the state or country in which
it was normally kept or located at the time of the decedent's death; and with respect to
intangible personal property, the state or country in which the decedent was domiciled
at death.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for decedents dying after December
31, 2010.
new text end

Sec. 11.

Minnesota Statutes 2010, section 291.03, subdivision 1, is amended to read:


Subdivision 1.

Tax amount.

(a) The tax imposed shall be an amount equal to the
proportion of the maximum credit for state death taxes computed under section 2011
of the Internal Revenue Code, but using Minnesota adjusted taxable estate instead of
federal adjusted taxable estate, as the Minnesota gross estate bears to the value of the
federal gross estate.

(b) The tax determined under this subdivision must not be greater than the sum of
the following amounts multiplied by a fraction, the numerator of which is the Minnesota
gross estate and the denominator of which is the federal gross estate:

(1) the rates and brackets under section 2001(c) of the Internal Revenue Code
multiplied by the sum of:

(i) the taxable estate, as defined under section 2051 of the Internal Revenue Code;
plus

(ii) adjusted taxable gifts, as defined in section 2001(b) of the Internal Revenue
Code; less

new text begin (iii) the lesser of (A) the sum of the value of qualified small business property
under subdivision 9, and the value of qualified farm property under subdivision 10,
or (B) $4,000,000; less
new text end

(2) the amount of tax allowed under section 2001(b)(2) of the Internal Revenue
Code; and less

(3) the federal credit allowed under section 2010 of the Internal Revenue Code.

(c) For purposes of this subdivision, "Internal Revenue Code" means the Internal
Revenue Code of 1986, as amended through December 31, 2000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for decedents dying after December
31, 2010.
new text end

Sec. 12.

Minnesota Statutes 2010, section 291.03, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the
meanings given in this subdivision.
new text end

new text begin (b) "Family member" means a family member as defined in section 2032A(e)(2) of
the Internal Revenue Code.
new text end

new text begin (c) "Qualified heir" means a family member who acquired qualified property from
the decedent and satisfies the requirement under subdivision 9, clause (6), or subdivision
10, clause (4), for the property.
new text end

new text begin (d) "Qualified property" means qualified small businesss property under subdivision
9 and qualified farm property under subdivision 10.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for decedents dying after December
31, 2010.
new text end

Sec. 13.

Minnesota Statutes 2010, section 291.03, is amended by adding a subdivision
to read:


new text begin Subd. 9. new text end

new text begin Qualified small business property. new text end

new text begin Property satisfying all of the following
requirements is qualified small business property:
new text end

new text begin (1) The value of the property was included in the federal adjusted taxable estate.
new text end

new text begin (2) The property consists of the assets of a trade or business or shares of stock or
other ownership interests in a corporation or other entity engaged in a trade or business.
The decedent or the decedent's spouse must have materially participated in the trade or
business within the meaning of section 469 of the Internal Revenue Code during the
taxable year that ended before the date of the decedent's death. Shares of stock in a
corporation or an ownership interest in another type of entity do not qualify under this
subdivision if the shares or ownership interests are traded on a public stock exchange at
any time during the three-year period ending on the decedent's date of death.
new text end

new text begin (3) The gross annual sales of the trade or business were $10,000,000 or less for the
last taxable year that ended before the date of the death of the decedent.
new text end

new text begin (4) The property does not consist of cash or cash equivalents. For property consisting
of shares of stock or other ownership interests in an entity, the amount of cash or cash
equivalents held by the corporation or other entity must be deducted from the value of
the property qualifying under this subdivision in proportion to the decedent's share of
ownership of the entity on the date of death.
new text end

new text begin (5) The decedent continuously owned the property for the three-year period ending
on the date of death of the decedent.
new text end

new text begin (6) A family member continuously uses the property in the operation of the trade or
business for three years following the date of death of the decedent.
new text end

new text begin (7) The estate and the qualified heir elect to treat the property as qualified small
business property and agree, in the form prescribed by the commissioner, to pay the
recapture tax under subdivision 11, if applicable.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for decedents dying after December
31, 2010.
new text end

Sec. 14.

Minnesota Statutes 2010, section 291.03, is amended by adding a subdivision
to read:


new text begin Subd. 10. new text end

new text begin Qualified farm property. new text end

new text begin Property satisfying all of the following
requirements is qualified farm property:
new text end

new text begin (1) The value of the property was included in the federal adjusted taxable estate.
new text end

new text begin (2) The property consists of a farm meeting the requirements of section 500.24,
and was classified for property tax purposes as the homestead of the decedent or the
decedent's spouse or both under section 273.124, and as class 2a property under section
273.13, subdivision 23.
new text end

new text begin (3) The decedent continuously owned the property for the three-year period ending
on the date of death of the decedent.
new text end

new text begin (4) A family member continuously uses the property in the operation of the trade or
business for three years following the date of death of the decedent.
new text end

new text begin (5) The estate and the qualified heir elect to treat the property as qualified farm
property and agree, in a form prescribed by the commissioner, to pay the recapture tax
under subdivision 11, if applicable.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for decedents dying after December
31, 2010.
new text end

Sec. 15.

Minnesota Statutes 2010, section 291.03, is amended by adding a subdivision
to read:


new text begin Subd. 11. new text end

new text begin Recapture tax. new text end

new text begin (a) If, within three years after the decedent's death and
before the death of the qualified heir, the qualified heir disposes of any interest in the
qualified property, other than by a disposition to a family member, or a family member
ceases to use the qualified property which was acquired or passed from the decedent, an
additional estate tax is imposed on the property.
new text end

new text begin (b) The amount of the additional tax equals the amount of the exclusion claimed by
the estate under subdivision 8, paragraph (d), multiplied by 16 percent.
new text end

new text begin (c) The additional tax under this subdivision is due on the day which is six months
after the date of the disposition or cessation in paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for decedents dying after December
31, 2010.
new text end

Sec. 16. new text beginINCOME TAX RECIPROCITY BENCHMARK STUDY.
new text end

new text begin (a) The Department of Revenue, in conjunction with the Wisconsin Department of
Revenue, must conduct a study to determine at least the following:
new text end

new text begin (1) the number of residents of each state who earn income from personal services in
the other state;
new text end

new text begin (2) the total amount of income earned by residents of each state who earn income
from personal services in the other state; and
new text end

new text begin (3) the change in tax revenue in each state if an income tax reciprocity arrangement
were resumed between the two states under which the taxpayers were required to pay
income taxes on the income only in their state of residence.
new text end

new text begin (b) The study must be conducted as soon as practicable, using information obtained
from each state's income tax returns for tax year 2011, and from any other source of
information the departments determine is necessary to complete the study.
new text end

new text begin (c) No later than March 1, 2013, the Department of Revenue must submit a report
containing the results of the study to the governor and to the chairs and ranking minority
members of the legislative committees having jurisdiction over taxes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 17. new text beginESTATE TAX; STUDY.
new text end

new text begin (a) The commissioner of revenue shall conduct a study of the Minnesota estate tax.
The study must include at least the following elements:
new text end

new text begin (1) evaluation of the estate tax using standard tax policy principles and methods of
analysis;
new text end

new text begin (2) consideration of the implications of recent federal estate tax changes, including
the repeal of the federal credit for state death taxes, the increase in the federal exclusion
amount, and the portability of the federal exclusion, for state estate and inheritance taxes;
new text end

new text begin (3) consideration of the advantages and disadvantages of revenue neutral alternatives
to the estate tax, such as an inheritance tax, a complementary gift tax, or imposition of
the income tax on bequests; and
new text end

new text begin (4) analysis of the available empirical evidence on the effects of the present and
alternative tax structures of a Minnesota tax on estates or inheritances on domicile and
migration decisions of residents and the implications for state revenues.
new text end

new text begin (b) In preparing the study, the commissioner shall consult with and seek advice from
the probate and estate section of the Minnesota State Bar Association.
new text end

new text begin (c) By February 1, 2012, the commissioner shall submit a report to the chairs and
ranking minority members of the house of representatives and senate committees with
jurisdiction over taxation, of the findings of the study and identification of issues for policy
makers to consider in deciding whether to revise, reform, replace, or repeal the estate tax.
new text end

Sec. 18. new text beginAPPROPRIATIONS.
new text end

new text begin $291,000 in fiscal year 2012 and $314,000 in fiscal year 2013 are appropriated from
the general fund to the commissioner of revenue for the income reciprocity benchmark
study required under section 16. The appropriation under this section is onetime and
is not added to the agency's base budget.
new text end

ARTICLE 2

FEDERAL UPDATE

Section 1.

Minnesota Statutes 2010, section 289A.02, subdivision 7, as amended by
Laws 2011, chapter 8, section 1, is amended to read:


Subd. 7.

Internal Revenue Code.

Unless specifically defined otherwise, deleted text beginfor taxable
years beginning before January 1, 2010, and after December 31, 2010,
deleted text end "Internal Revenue
Code" means the Internal Revenue Code of 1986, deleted text beginas amended through March 18, 2010;
and for taxable years beginning after December 31, 2009, and before January 1, 2011,
"Internal Revenue Code" means the Internal Revenue Code of 1986,
deleted text end as amended through
December 31, 2010.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
taxable years beginning after December 31, 2009.
new text end

Sec. 2.

Minnesota Statutes 2010, section 290.01, subdivision 19, as amended by Laws
2011, chapter 8, section 2, is amended to read:


Subd. 19.

Net income.

The term "net income" means the federal taxable income,
as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
date named in this subdivision, incorporating the federal effective dates of changes to the
Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in subdivisions 19a to 19f.

In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:

(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;

(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
Revenue Code must be applied by allowing a deduction for capital gain dividends and
exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
Revenue Code; and

(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.

The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.

The net income of a designated settlement fund as defined in section 468B(d) of
the Internal Revenue Code means the gross income as defined in section 468B(b) of the
Internal Revenue Code.

The Internal Revenue Code of 1986, as amended through deleted text beginMarch 18deleted text endnew text begin December 31new text end,
2010, shall be in effect for taxable years beginning after December 31, 1996deleted text begin, except
that for taxable years beginning after December 31, 2009, and before January 1, 2011,
"Internal Revenue Code" means the Internal Revenue Code of 1986, as amended through
December 31, 2010
deleted text end. The provisions of the act of January 22, 2010, Public Law 111-126,
to accelerate the benefits for charitable cash contributions for the relief of victims of the
Haitian earthquake, are effective at the same time it became effective for federal purposes
and apply to the subtraction under subdivision 19b, clause (6). The provisions of title II,
section 2112, of the act of September 27, 2010, Public Law 111-240, rollovers from
elective deferral plans to designated Roth accounts, are effective at the same time they
became effective for federal purposes and taxable rollovers are included in net income at
the same time they are included in gross income for federal purposes.

Except as otherwise provided, references to the Internal Revenue Code in
subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
the applicable year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
except that the changes incorporated by federal changes are effective at the same time as
the changes were effective for federal purposes.
new text end

Sec. 3.

Minnesota Statutes 2010, section 290.01, subdivision 19a, as amended by Laws
2011, chapter 8, section 3, is amended to read:


Subd. 19a.

Additions to federal taxable income.

For individuals, estates, and
trusts, there shall be added to federal taxable income:

(1)(i) interest income on obligations of any state other than Minnesota or a political
or governmental subdivision, municipality, or governmental agency or instrumentality
of any state other than Minnesota exempt from federal income taxes under the Internal
Revenue Code or any other federal statute; and

(ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue
Code, except:

(A) the portion of the exempt-interest dividends exempt from state taxation under
the laws of the United States; and

(B) the portion of the exempt-interest dividends derived from interest income
on obligations of the state of Minnesota or its political or governmental subdivisions,
municipalities, governmental agencies or instrumentalities, but only if the portion of the
exempt-interest dividends from such Minnesota sources paid to all shareholders represents
95 percent or more of the exempt-interest dividends, including any dividends exempt
under subitem (A), that are paid by the regulated investment company as defined in section
851(a) of the Internal Revenue Code, or the fund of the regulated investment company as
defined in section 851(g) of the Internal Revenue Code, making the payment; and

(iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal
government described in section 7871(c) of the Internal Revenue Code shall be treated as
interest income on obligations of the state in which the tribe is located;

(2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid
or accrued within the taxable year under this chapter and the amount of taxes based on
net income paid, sales and use, motor vehicle sales, or excise taxes paid to any other
state or to any province or territory of Canada, to the extent allowed as a deduction
under section 63(d) of the Internal Revenue Code, but the addition 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, disregarding the amounts allowed under
sections 63(c)(1)(C) and 63(c)(1)(E) of the Internal Revenue Code. For the purpose of
this paragraph, the disallowance of itemized deductions under section 68 of the Internal
Revenue Code of 1986, income, sales and use, motor vehicle sales, or excise taxes are
the last itemized deductions disallowed;

(3) the capital gain amount of a lump-sum distribution to which the special tax under
section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;

(4) the amount of income taxes paid or accrued within the taxable year under this
chapter and taxes based on net income paid to any other state or any province or territory
of Canada, to the extent allowed as a deduction in determining federal adjusted gross
income. For the purpose of this paragraph, income taxes do not include the taxes imposed
by sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729;

(5) the amount of expense, interest, or taxes disallowed pursuant to section 290.10
other than expenses or interest used in computing net interest income for the subtraction
allowed under subdivision 19b, clause (1);

(6) the amount of a partner's pro rata share of net income which does not flow
through to the partner because the partnership elected to pay the tax on the income under
section 6242(a)(2) of the Internal Revenue Code;

(7) 80 percent of the depreciation deduction allowed under section 168(k) of the
Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that
in the taxable year generates a deduction for depreciation under section 168(k) and the
activity generates a loss for the taxable year that the taxpayer is not allowed to claim for
the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is
limited to excess of the depreciation claimed by the activity under section 168(k) over the
amount of the loss from the activity that is not allowed in the taxable year. In succeeding
taxable years when the losses not allowed in the taxable year are allowed, the depreciation
under section 168(k) is allowed;

(8) 80 percent of the amount by which the deduction allowed by section 179 of the
Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
Revenue Code of 1986, as amended through December 31, 2003;

(9) to the extent deducted in computing federal taxable income, the amount of the
deduction allowable under section 199 of the Internal Revenue Code;

(10) new text beginfor taxable years beginning before January 1, 2013, new text endthe exclusion allowed
under section 139A of the Internal Revenue Code for federal subsidies for prescription
drug plans;

(11) the amount of expenses disallowed under section 290.10, subdivision 2;

(12) for taxable years beginning before January 1, 2010, deleted text beginand after December 31,
2010,
deleted text end the amount deducted for qualified tuition and related expenses under section 222 of
the Internal Revenue Code, to the extent deducted from gross income;

(13) for taxable years beginning before January 1, 2010, deleted text beginand after December 31,
2010,
deleted text end the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code, to the extent deducted
from gross income;

(14) the additional standard deduction for property taxes payable that is allowable
under section 63(c)(1)(C) of the Internal Revenue Code;

(15) the additional standard deduction for qualified motor vehicle sales taxes
allowable under section 63(c)(1)(E) of the Internal Revenue Code;

(16) discharge of indebtedness income resulting from reacquisition of business
indebtedness and deferred under section 108(i) of the Internal Revenue Code; deleted text beginand
deleted text end

(17) the amount of unemployment compensation exempt from tax under section
85(c) of the Internal Revenue Codedeleted text begin.deleted text endnew text begin;
new text end

new text begin (18) to the extent included in the computation of federal taxable income in taxable
years beginning after December 31, 2010, the amount of disallowed itemized deductions;
new text end

new text begin (i) The amount of disallowed itemized deductions is equal to the lesser of:
new text end

new text begin (A) three percent of the excess of the taxpayer's federal adjusted gross income
over the applicable amount; or
new text end

new text begin (B) 80 percent of the amount of the itemized deductions otherwise allowable to the
taxpayer under the Internal Revenue Code for the taxable year.
new text end

new text begin (ii) The term "applicable amount" means $100,000, or $50,000 in the case of a
married individual filing a separate return. Each dollar amount shall be increased by
an amount equal to:
new text end

new text begin (A) such dollar amount, multiplied by
new text end

new text begin (B) 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) thereof.
new text end

new text begin (iii) The term "itemized deductions" does not include:
new text end

new text begin (A) the deduction for medical expenses under section 213 of the Internal Revenue
Code;
new text end

new text begin (B) any deduction for investment interest as defined in section 163(d) of the Internal
Revenue Code; and
new text end

new text begin (C) 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;
new text end

new text begin (19) to the extent included in federal taxable income in taxable years beginning after
December 31, 2010, the amount of disallowed personal exemptions for taxpayers with
federal adjusted gross income over the threshold amount;
new text end

new text begin (i) The disallowed personal exemption amount is equal to the dollar amount of the
personal exemptions claimed by the taxpayer in the computation of federal taxable income
multiplied by the applicable percentage.
new text end

new text begin (ii) "Applicable percentage" means two percentage points for each $2,500 (or
fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable
year exceeds the threshold amount. In the case of a married individual filing a separate
return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In no
event shall the applicable percentage exceed 100 percent.
new text end

new text begin (iii) The term "threshold amount" means:
new text end

new text begin (A) $150,000 in the case of a joint return or a surviving spouse;
new text end

new text begin (B) $125,000 in the case of a head of a household;
new text end

new text begin (C) $100,000 in the case of an individual who is not married and who is not a
surviving spouse or head of a household; and
new text end

new text begin (D) $75,000 in the case of a married individual filing a separate return.
new text end

new text begin (iv) The thresholds shall be increased by an amount equal to:
new text end

new text begin (A) such dollar amount, multiplied by
new text end

new text begin (B) 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) thereof; and
new text end

new text begin (20) for taxable years beginning after December 31, 2010, the amount deducted for
employer-provided educational assistance programs under section 127 of the Internal
Revenue Code.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2010, except that the change to clause (10) is effective the day following
final enactment.
new text end

Sec. 4.

Minnesota Statutes 2010, section 290.01, subdivision 19c, as amended by Laws
2011, chapter 8, section 4, is amended to read:


Subd. 19c.

Corporations; additions to federal taxable income.

For corporations,
there shall be added to federal taxable income:

(1) the amount of any deduction taken for federal income tax purposes for income,
excise, or franchise taxes based on net income or related minimum taxes, including but not
limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota,
another state, a political subdivision of another state, the District of Columbia, or any
foreign country or possession of the United States;

(2) interest not subject to federal tax upon obligations of: the United States, its
possessions, its agencies, or its instrumentalities; the state of Minnesota or any other
state, any of its political or governmental subdivisions, any of its municipalities, or any
of its governmental agencies or instrumentalities; the District of Columbia; or Indian
tribal governments;

(3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal
Revenue Code;

(4) the amount of any net operating loss deduction taken for federal income tax
purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss
deduction under section 810 of the Internal Revenue Code;

(5) the amount of any special deductions taken for federal income tax purposes
under sections 241 to 247 and 965 of the Internal Revenue Code;

(6) losses from the business of mining, as defined in section 290.05, subdivision 1,
clause (a), that are not subject to Minnesota income tax;

(7) the amount of any capital losses deducted for federal income tax purposes under
sections 1211 and 1212 of the Internal Revenue Code;

(8) the exempt foreign trade income of a foreign sales corporation under sections
921(a) and 291 of the Internal Revenue Code;

(9) the amount of percentage depletion deducted under sections 611 through 614 and
291 of the Internal Revenue Code;

(10) for certified pollution control facilities placed in service in a taxable year
beginning before December 31, 1986, and for which amortization deductions were elected
under section 169 of the Internal Revenue Code of 1954, as amended through December
31, 1985, the amount of the amortization deduction allowed in computing federal taxable
income for those facilities;

(11) the amount of any deemed dividend from a foreign operating corporation
determined pursuant to section 290.17, subdivision 4, paragraph (g). The deemed dividend
shall be reduced by the amount of the addition to income required by clauses (20), (21),
(22), and (23);

(12) the amount of a partner's pro rata share of net income which does not flow
through to the partner because the partnership elected to pay the tax on the income under
section 6242(a)(2) of the Internal Revenue Code;

(13) the amount of net income excluded under section 114 of the Internal Revenue
Code;

(14) any increase in subpart F income, as defined in section 952(a) of the Internal
Revenue Code, for the taxable year when subpart F income is calculated without regard to
the provisions of Division C, title III, section 303(b) of Public Law 110-343;

(15) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A)
and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer
has an activity that in the taxable year generates a deduction for depreciation under
section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year
that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed
under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the
depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the
amount of the loss from the activity that is not allowed in the taxable year. In succeeding
taxable years when the losses not allowed in the taxable year are allowed, the depreciation
under section 168(k)(1)(A) and (k)(4)(A) is allowed;

(16) 80 percent of the amount by which the deduction allowed by section 179 of the
Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
Revenue Code of 1986, as amended through December 31, 2003;

(17) to the extent deducted in computing federal taxable income, the amount of the
deduction allowable under section 199 of the Internal Revenue Code;

(18) new text beginfor taxable years beginning before January 1, 2013, new text endthe exclusion allowed
under section 139A of the Internal Revenue Code for federal subsidies for prescription
drug plans;

(19) the amount of expenses disallowed under section 290.10, subdivision 2;

(20) an amount equal to the interest and intangible expenses, losses, and costs paid,
accrued, or incurred by any member of the taxpayer's unitary group to or for the benefit
of a corporation that is a member of the taxpayer's unitary business group that qualifies
as a foreign operating corporation. For purposes of this clause, intangible expenses and
costs include:

(i) expenses, losses, and costs for, or related to, the direct or indirect acquisition,
use, maintenance or management, ownership, sale, exchange, or any other disposition of
intangible property;

(ii) losses incurred, directly or indirectly, from factoring transactions or discounting
transactions;

(iii) royalty, patent, technical, and copyright fees;

(iv) licensing fees; and

(v) other similar expenses and costs.

For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent
applications, trade names, trademarks, service marks, copyrights, mask works, trade
secrets, and similar types of intangible assets.

This clause does not apply to any item of interest or intangible expenses or costs paid,
accrued, or incurred, directly or indirectly, to a foreign operating corporation with respect
to such item of income to the extent that the income to the foreign operating corporation
is income from sources without the United States as defined in subtitle A, chapter 1,
subchapter N, part 1, of the Internal Revenue Code;

(21) except as already included in the taxpayer's taxable income pursuant to clause
(20), any interest income and income generated from intangible property received or
accrued by a foreign operating corporation that is a member of the taxpayer's unitary
group. For purposes of this clause, income generated from intangible property includes:

(i) income related to the direct or indirect acquisition, use, maintenance or
management, ownership, sale, exchange, or any other disposition of intangible property;

(ii) income from factoring transactions or discounting transactions;

(iii) royalty, patent, technical, and copyright fees;

(iv) licensing fees; and

(v) other similar income.

For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent
applications, trade names, trademarks, service marks, copyrights, mask works, trade
secrets, and similar types of intangible assets.

This clause does not apply to any item of interest or intangible income received or accrued
by a foreign operating corporation with respect to such item of income to the extent that
the income is income from sources without the United States as defined in subtitle A,
chapter 1, subchapter N, part 1, of the Internal Revenue Code;

(22) the dividends attributable to the income of a foreign operating corporation that
is a member of the taxpayer's unitary group in an amount that is equal to the dividends
paid deduction of a real estate investment trust under section 561(a) of the Internal
Revenue Code for amounts paid or accrued by the real estate investment trust to the
foreign operating corporation;

(23) the income of a foreign operating corporation that is a member of the taxpayer's
unitary group in an amount that is equal to gains derived from the sale of real or personal
property located in the United States;

(24) for taxable years beginning before January 1, 2010, deleted text beginand after December 31,
2010,
deleted text end the additional amount allowed as a deduction for donation of computer technology
and equipment under section 170(e)(6) of the Internal Revenue Code, to the extent
deducted from taxable income; and

(25) discharge of indebtedness income resulting from reacquisition of business
indebtedness and deferred under section 108(i) of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin The change to clause (24) is effective for taxable years
beginning after December 31, 2010. The change to clause (18) is effective the day
following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2010, section 290.01, subdivision 31, as amended by Laws
2011, chapter 8, section 5, is amended to read:


Subd. 31.

Internal Revenue Code.

Unless specifically defined otherwise, deleted text beginfor
taxable years beginning before January 1, 2010, and after December 31, 2010,
deleted text end "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through deleted text beginMarch
18
deleted text endnew text begin December 31new text end, 2010deleted text begin; and for taxable years beginning after December 31, 2009, and
before January 1, 2011, "Internal Revenue Code" means the Internal Revenue Code of
1986, as amended through December 31, 2010
deleted text end. Internal Revenue Code also includes any
uncodified provision in federal law that relates to provisions of the Internal Revenue
Code that are incorporated into Minnesota law.new text begin When used in this chapter, the reference
to "subtitle A, chapter 1, subchapter N, part 1, of the Internal Revenue Code" is to the
Internal Revenue Code as amended through March 18, 2010.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
except the changes incorporated by federal changes are effective at the same time as the
changes were effective for federal purposes.
new text end

Sec. 6.

Minnesota Statutes 2010, section 290.06, subdivision 2c, is amended to read:


Subd. 2c.

Schedules of rates for individuals, estates, and trusts.

(a) The income
taxes imposed by this chapter upon married individuals filing joint returns and surviving
spouses as defined in section 2(a) of the Internal Revenue Code must be computed by
applying to their taxable net income the following schedule of rates:

(1) On the first $25,680, 5.35 percent;

(2) On all over $25,680, but not over $102,030, 7.05 percent;

(3) On all over $102,030, 7.85 percent.

Married individuals filing separate returns, estates, and trusts must compute their
income tax by applying the above rates to their taxable income, except that the income
brackets will be one-half of the above amounts.

(b) The income taxes imposed by this chapter upon unmarried individuals must be
computed by applying to taxable net income the following schedule of rates:

(1) On the first $17,570, 5.35 percent;

(2) On all over $17,570, but not over $57,710, 7.05 percent;

(3) On all over $57,710, 7.85 percent.

(c) The income taxes imposed by this chapter upon unmarried individuals qualifying
as a head of household as defined in section 2(b) of the Internal Revenue Code must be
computed by applying to taxable net income the following schedule of rates:

(1) On the first $21,630, 5.35 percent;

(2) On all over $21,630, but not over $86,910, 7.05 percent;

(3) On all over $86,910, 7.85 percent.

(d) In lieu of a tax computed according to the rates set forth in this subdivision, the
tax of any individual taxpayer whose taxable net income for the taxable year is less than
an amount determined by the commissioner must be computed in accordance with tables
prepared and issued by the commissioner of revenue based on income brackets of not
more than $100. The amount of tax for each bracket shall be computed at the rates set
forth in this subdivision, provided that the commissioner may disregard a fractional part of
a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.

(e) An individual who is not a Minnesota resident for the entire year must compute
the individual's Minnesota income tax as provided in this subdivision. After the
application of the nonrefundable credits provided in this chapter, the tax liability must
then be multiplied by a fraction in which:

(1) the numerator is the individual's Minnesota source federal adjusted gross income
as defined in section 62 of the Internal Revenue Code and increased by the additions
required under section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12),
(13), (16), deleted text beginanddeleted text end (17), new text beginand (20), new text endand reduced by the Minnesota assignable portion of the
subtraction for United States government interest under section 290.01, subdivision 19b,
clause (1), and the subtractions under section 290.01, subdivision 19b, clauses (8), (9),
(13), (14), (15), and (17), after applying the allocation and assignability provisions of
section 290.081, clause (a), or 290.17; and

(2) the denominator is the individual's federal adjusted gross income as defined in
section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in
section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12), (13), (16), deleted text beginanddeleted text end
(17), new text beginand (20), new text endand reduced by the amounts specified in section 290.01, subdivision 19b,
clauses (1), (8), (9), (13), (14), (15), and (17).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2010.
new text end

Sec. 7.

Minnesota Statutes 2010, section 290A.03, subdivision 15, as amended by
Laws 2011, chapter 8, section 6, is amended to read:


Subd. 15.

Internal Revenue Code.

deleted text beginFor taxable years beginning before January 1,
2010, and after December 31, 2010,
deleted text end "Internal Revenue Code" means the Internal Revenue
Code of 1986, as amended through deleted text beginMarch 18deleted text endnew text begin December 31new text end, 2010deleted text begin; and for taxable years
beginning after December 31, 2009, and before January 1, 2011, "Internal Revenue Code"
means the Internal Revenue Code of 1986, as amended through December 31, 2010
deleted text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property tax refunds based on
property taxes payable on or after December 31, 2011, and rent paid on or after December
31, 2010.
new text end

Sec. 8.

Minnesota Statutes 2010, section 291.005, subdivision 1, is amended to read:


Subdivision 1.

Scope.

Unless the context otherwise clearly requires, the following
terms used in this chapter shall have the following meanings:

(1) "Commissioner" means the commissioner of revenue or any person to whom the
commissioner has delegated functions under this chapter.

(2) "Federal gross estate" means the gross estate of a decedent as required to be
valued and otherwise determined for federal estate tax purposes under the Internal
Revenue Code.

(3) "Internal Revenue Code" means the United States Internal Revenue Code of
1986, as amended through deleted text beginMarch 18deleted text endnew text begin December 31new text end, 2010, but without regard to the
provisions of sections 501 and 901 of Public Law 107-16new text begin, as amended by Public Law
111-312, and section 301(c) of Public Law 111-312
new text end.

(4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as
defined by section 2011(b)(3) of the Internal Revenue Code, increased by the amount of
deduction for state death taxes allowed under section 2058 of the Internal Revenue Code.

(5) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
excluding therefrom any property included therein which has its situs outside Minnesota,
and (b) including therein any property omitted from the federal gross estate which is
includable therein, has its situs in Minnesota, and was not disclosed to federal taxing
authorities.

(6) "Nonresident decedent" means an individual whose domicile at the time of
death was not in Minnesota.

(7) "Personal representative" means the executor, administrator or other person
appointed by the court to administer and dispose of the property of the decedent. If there
is no executor, administrator or other person appointed, qualified, and acting within this
state, then any person in actual or constructive possession of any property having a situs in
this state which is included in the federal gross estate of the decedent shall be deemed
to be a personal representative to the extent of the property and the Minnesota estate tax
due with respect to the property.

(8) "Resident decedent" means an individual whose domicile at the time of death
was in Minnesota.

(9) "Situs of property" means, with respect to real property, the state or country in
which it is located; with respect to tangible personal property, the state or country in which
it was normally kept or located at the time of the decedent's death; and with respect to
intangible personal property, the state or country in which the decedent was domiciled
at death.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 3

SALES AND USE TAXES

Section 1.

Minnesota Statutes 2010, section 289A.20, subdivision 4, is amended to
read:


Subd. 4.

Sales and use tax.

(a) The taxes imposed by chapter 297A are due and
payable to the commissioner monthly on or before the 20th day of the month following
the month in which the taxable event occurred, or following another reporting period
as the commissioner prescribes or as allowed under section 289A.18, subdivision 4,
paragraph (f) or (g), except thatdeleted text begin:
deleted text end

deleted text begin (1)deleted text end use taxes due on an annual use tax return as provided under section 289A.11,
subdivision 1
, are payable by April 15 following the close of the calendar yeardeleted text begin; anddeleted text endnew text begin.
new text end

deleted text begin (2) except as provided in paragraph (f), for a vendor having a liability of $120,000
or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes
imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the
commissioner monthly in the following manner:
deleted text end

deleted text begin (i) On or before the 14th day of the month following the month in which the taxable
event occurred, the vendor must remit to the commissioner 90 percent of the estimated
liability for the month in which the taxable event occurred.
deleted text end

deleted text begin (ii) On or before the 20th day of the month in which the taxable event occurs, the
vendor must remit to the commissioner a prepayment for the month in which the taxable
event occurs equal to 67 percent of the liability for the previous month.
deleted text end

deleted text begin (iii) On or before the 20th day of the month following the month in which the taxable
event occurred, the vendor must pay any additional amount of tax not previously remitted
under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than
the vendor's liability for the month in which the taxable event occurred, the vendor may
take a credit against the next month's liability in a manner prescribed by the commissioner.
deleted text end

deleted text begin (iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to
continue to make payments in the same manner, as long as the vendor continues having a
liability of $120,000 or more during the most recent fiscal year ending June 30.
deleted text end

deleted text begin (v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required
payment in the first month that the vendor is required to make a payment under either item
(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make
subsequent monthly payments in the manner provided in item (ii).
deleted text end

deleted text begin (vi) For vendors making an accelerated payment under item (ii), for the first month
that the vendor is required to make the accelerated payment, on the 20th of that month, the
vendor will pay 100 percent of the liability for the previous month and a prepayment for
the first month equal to 67 percent of the liability for the previous month.
deleted text end

(b) deleted text beginNotwithstanding paragraph (a),deleted text end A vendor having a liability of $120,000 or more
during a fiscal year ending June 30 must remit the June liability for the next year in the
following manner:

(1) Two business days before June 30 of the year, the vendor must remit 90 percent
of the estimated June liability to the commissioner.

(2) On or before August 20 of the year, the vendor must pay any additional amount
of tax not remitted in June.

(c) A vendor having a liability of:

(1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30,
2009, and fiscal years thereafter, must remit by electronic means all liabilities on returns
due for periods beginning in the subsequent calendar year on or before the 20th day of
the month following the month in which the taxable event occurred, or on or before the
20th day of the month following the month in which the sale is reported under section
289A.18, subdivision 4; or

(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years
thereafter, must remit by electronic means all liabilities in the manner provided in
paragraph (a)deleted text begin, clause (2),deleted text end on returns due for periods beginning in the subsequent calendar
year, except for 90 percent of the estimated June liability, which is due two business days
before June 30. The remaining amount of the June liability is due on August 20.

(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's
religious beliefs from paying electronically shall be allowed to remit the payment by mail.
The filer must notify the commissioner of revenue of the intent to pay by mail before
doing so on a form prescribed by the commissioner. No extra fee may be charged to a
person making payment by mail under this paragraph. The payment must be postmarked
at least two business days before the due date for making the payment in order to be
considered paid on a timely basis.

deleted text begin (e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed
under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the
chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and
paid with the chapter 297A taxes, then the payment of all the liabilities on the return must
be accelerated as provided in this subdivision.
deleted text end

deleted text begin (f) At the start of the first calendar quarter at least 90 days after the cash flow
account established in section 16A.152, subdivision 1, and the budget reserve account
established in section 16A.152, subdivision 1a, reach the amounts listed in section
16A.152, subdivision 2, paragraph (a), the remittance of the accelerated payments required
under paragraph (a), clause (2), must be suspended. The commissioner of management
and budget shall notify the commissioner of revenue when the accounts have reached
the required amounts. Beginning with the suspension of paragraph (a), clause (2), for a
vendor with a liability of $120,000 or more during a fiscal year ending June 30, 2009,
and fiscal years thereafter, the taxes imposed by chapter 297A are due and payable to the
commissioner on the 20th day of the month following the month in which the taxable
event occurred. Payments of tax liabilities for taxable events occurring in June under
paragraph (b) are not changed.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes due and payable after
July 1, 2011.
new text end

Sec. 2.

Minnesota Statutes 2010, section 297A.61, subdivision 3, is amended to read:


Subd. 3.

Sale and purchase.

(a) "Sale" and "purchase" include, but are not limited
to, each of the transactions listed in this subdivision.

(b) Sale and purchase include:

(1) any transfer of title or possession, or both, of tangible personal property, whether
absolutely or conditionally, for a consideration in money or by exchange or barter; and

(2) the leasing of or the granting of a license to use or consume, for a consideration
in money or by exchange or barter, tangible personal property, other than a manufactured
home used for residential purposes for a continuous period of 30 days or more.

(c) Sale and purchase include the production, fabrication, printing, or processing of
tangible personal property for a consideration for consumers who furnish either directly or
indirectly the materials used in the production, fabrication, printing, or processing.

(d) Sale and purchase include the preparing for a consideration of food.
Notwithstanding section 297A.67, subdivision 2, taxable food includes, but is not limited
to, the following:

(1) prepared food sold by the retailer;

(2) soft drinks;

(3) candy;

(4) dietary supplements; and

(5) all food sold through vending machines.

(e) A sale and a purchase includes the furnishing for a consideration of electricity,
gas, water, or steam for use or consumption within this state.

(f) A sale and a purchase includes the transfer for a consideration of prewritten
computer software whether delivered electronically, by load and leave, or otherwise.

(g) A sale and a purchase includes the furnishing for a consideration of the following
services:

(1) the privilege of admission to places of amusement, recreational areas, or athletic
events, and the making available of amusement devices, tanning facilities, reducing
salons, steam baths, Turkish baths, health clubs, and spas or athletic facilities;

(2) lodging and related services by a hotel, rooming house, resort, campground,
motel, or trailer camp, including furnishing the guest of the facility with access to
telecommunication services, and the granting of any similar license to use real property
in a specific facility, other than the renting or leasing of it for a continuous period of
30 days or more under an enforceable written agreement that may not be terminated
without prior notice;

(3) nonresidential parking services, whether on a contractual, hourly, or other
periodic basis, except for parking at a meter;

(4) the granting of membership in a club, association, or other organization if:

(i) the club, association, or other organization makes available for the use of its
members sports and athletic facilities, without regard to whether a separate charge is
assessed for use of the facilities; and

(ii) use of the sports and athletic facility is not made available to the general public
on the same basis as it is made available to members.

Granting of membership means both onetime initiation fees and periodic membership
dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and
squash courts; basketball and volleyball facilities; running tracks; exercise equipment;
swimming pools; and other similar athletic or sports facilities;

(5) delivery of aggregate materials by a third party, excluding delivery of aggregate
material used in road construction, and delivery of concrete block by a third party if
the delivery would be subject to the sales tax if provided by the seller of the concrete
block; and

(6) services as provided in this clause:

(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
include services provided by coin operated facilities operated by the customer;

(ii) motor vehicle washing, waxing, and cleaning services, including services
provided by coin operated facilities operated by the customer, and rustproofing,
undercoating, and towing of motor vehicles;

(iii) building and residential cleaning, maintenance, and disinfecting services and
pest control and exterminating services;

(iv) detective, security, burglar, fire alarm, and armored car services; but not
including services performed within the jurisdiction they serve by off-duty licensed peace
officers as defined in section 626.84, subdivision 1, or services provided by a nonprofit
organization for monitoring and electronic surveillance of persons placed on in-home
detention pursuant to court order or under the direction of the Minnesota Department
of Corrections;

(v) pet grooming services;

(vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor
plant care; tree, bush, shrub, and stump removal, except when performed as part of a land
clearing contract as defined in section 297A.68, subdivision 40; and tree trimming for
public utility lines. Services performed under a construction contract for the installation of
shrubbery, plants, sod, trees, bushes, and similar items are not taxable;

(vii) massages, except when provided by a licensed health care facility or
professional or upon written referral from a licensed health care facility or professional for
treatment of illness, injury, or disease; and

(viii) the furnishing of lodging, board, and care services for animals in kennels and
other similar arrangements, but excluding veterinary and horse boarding services.

In applying the provisions of this chapter, the terms "tangible personal property"
and "retail sale" include taxable services listed in clause (6), items (i) to (vi) and (viii),
and the provision of these taxable services, unless specifically provided otherwise.
Services performed by an employee for an employer are not taxable. Services performed
by a partnership or association for another partnership or association are not taxable if
one of the entities owns or controls more than 80 percent of the voting power of the
equity interest in the other entity. Services performed between members of an affiliated
group of corporations are not taxable. For purposes of the preceding sentence, "affiliated
group of corporations" means those entities that would be classified as members of an
affiliated group as defined under United States Code, title 26, section 1504, disregarding
the exclusions in section 1504(b).

For purposes of clause (5), "road construction" means construction of (1) public
roads, (2) cartways, and (3) private roads in townships located outside of the seven-county
metropolitan area up to the point of the emergency response location sign.

(h) A sale and a purchase includes the furnishing for a consideration of tangible
personal property or taxable services by the United States or any of its agencies or
instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political
subdivisions.

(i) A sale and a purchase includes the furnishing for a consideration of
telecommunications services, ancillary services associated with telecommunication
services, cable television services, new text beginand new text enddirect satellite servicesdeleted text begin, and ring tonesdeleted text end.
Telecommunication services include, but are not limited to, the following services,
as defined in section 297A.669: air-to-ground radiotelephone service, mobile
telecommunication service, postpaid calling service, prepaid calling service, prepaid
wireless calling service, and private communication services. The services in this
paragraph are taxed to the extent allowed under federal law.

(j) A sale and a purchase includes the furnishing for a consideration of installation if
the installation charges would be subject to the sales tax if the installation were provided
by the seller of the item being installed.

(k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer
to a customer when (1) the vehicle is rented by the customer for a consideration, or (2)
the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section
59B.02, subdivision 11.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2011.
new text end

Sec. 3.

Minnesota Statutes 2010, section 297A.62, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Transitional period for services. new text end

new text begin When there is a change in the rate of tax
imposed by this section, the following transitional period shall apply to the retail sale of
services covering a billing period starting before and ending after the statutory effective
date of the rate change:
new text end

new text begin (1) for a rate increase, the new rate shall apply to the first billing period starting
on or after the effective date; and
new text end

new text begin (2) for a rate decrease, the new rate shall apply to bills rendered on or after the
effective date.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2010, section 297A.63, is amended by adding a subdivision
to read:


new text begin Subd. 3. new text end

new text begin Transitional period for services. new text end

new text begin When there is a change in the rate of
tax imposed by this section, the following transitional period shall apply to the taxable
services purchased for use, storage, distribution, or consumption in this state when the
service purchased covers a billing period starting before and ending after the statutory
effective date of the rate change:
new text end

new text begin (1) for a rate increase, the new rate shall apply to the first billing period starting
on or after the effective date; and
new text end

new text begin (2) for a rate decrease, the new rate shall apply to bills rendered on or after the
effective date.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2010, section 297A.668, subdivision 7, is amended to read:


Subd. 7.

new text beginAdvertising and promotional new text enddirect mail.

(a) Notwithstanding other
subdivisions of this section,new text begin the provisions in paragraphs (b) to (e) apply to the sale of
advertising and promotional direct mail. "Advertising and promotional direct mail" means
printed material that is direct mail as defined in section 297A.61, subdivision 35, the
primary purpose of which is to attract public attention to a product, person, business, or
organization, or to attempt to sell, popularize, or secure financial support for a person,
business, organization, or product. "Product" includes tangible personal property, a digital
product transferred electronically, or a service.
new text end

new text begin (b)new text end A purchaser ofnew text begin advertising and promotionalnew text end direct mail deleted text beginthat is not a holder of
a direct pay permit shall provide to the seller, in conjunction with the purchase, either a
direct mail form or
deleted text endnew text begin may provide the seller with either:
new text end

new text begin (1) a fully completed exemption certificate as described in section 297A.72
indicating that the purchaser is authorized to pay any sales or use tax due on purchases
made by the purchaser directly to the commissioner under section 297A.89;
new text end

new text begin (2) a fully completed exemption certificate claiming an exemption for direct mail; or
new text end

new text begin (3)new text end information deleted text beginto showdeleted text endnew text begin showingnew text end the jurisdictions to which thenew text begin advertising and
promotional
new text end direct mail isnew text begin to benew text end delivered to recipients.

deleted text begin (1) Upon receipt of the direct mail form,deleted text endnew text begin (c) In the absence of bad faith, if the
purchaser provides one of the exemption certificates indicated in paragraph (b), clauses (1)
and (2),
new text end the seller is relieved of all obligations to collect, pay, or remit the applicable tax
and the purchaser is obligated to pay or remit the deleted text beginapplicable tax on a direct pay basis. A
direct mail form remains in effect for all future sales of direct mail by the seller to the
purchaser until it is revoked in writing.
deleted text endnew text begin tax on any transaction involving advertising and
promotional direct mail to which the certificate applies. The purchaser shall source the
sale to the jurisdictions to which the advertising and promotional direct mail is to be
delivered to the recipients of the mail, and shall report and pay any applicable tax due.
new text end

deleted text begin (2) Upon receipt ofdeleted text endnew text begin (d) If the purchaser provides the sellernew text end information deleted text beginfrom the
purchaser
deleted text end showing the jurisdictions to which thenew text begin advertising and promotionalnew text end direct mail
isnew text begin to benew text end delivered to recipients, the seller shallnew text begin source the sale to the jurisdictions to which
the advertising and promotional direct mail is to be delivered and shall
new text end collectnew text begin and remitnew text end
thenew text begin applicablenew text end tax deleted text beginaccording to the delivery information provided by the purchaserdeleted text end. In
the absence of bad faith, the seller is relieved of any further obligation to collectnew text begin any
additional
new text end tax on deleted text beginany transaction for whichdeleted text endnew text begin the sale of advertising and promotional direct
mail where
new text end the seller has deleted text begincollected tax pursuantdeleted text endnew text begin sourced the sale accordingnew text end to the delivery
information provided by the purchaser.

deleted text begin (b)deleted text endnew text begin (e)new text end If the purchaser deleted text beginof direct maildeleted text end does not deleted text beginhave a direct pay permit and does
not
deleted text end provide the seller with deleted text begineither a direct mail form or delivery information, as required
by paragraph (a), the seller shall collect the tax according to
deleted text endnew text begin any of the items listed in
paragraph (b), the sale shall be sourced under
new text end subdivision 2, paragraph (f). Nothing in
this paragraph limits a purchaser's obligation for sales or use tax to any state to which the
direct mail is delivered.

deleted text begin (c) If a purchaser of direct mail provides the seller with documentation of direct
pay authority, the purchaser is not required to provide a direct mail form or delivery
information to the seller.
deleted text end

new text begin (f) This subdivision does not apply to printed materials that result from developing
billing information or providing any data processing service that is more than incidental
to producing the printed materials, regardless of whether advertising and promotional
direct mail is included in the same mailing.
new text end

new text begin (g) If a transaction is a bundled transaction that includes advertising and promotional
direct mail, this subdivision applies only if the primary purpose of the transaction is the sale
of products or services that meet the definition of advertising and promotional direct mail.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2011.
new text end

Sec. 6.

Minnesota Statutes 2010, section 297A.668, is amended by adding a
subdivision to read:


new text begin Subd. 7a. new text end

new text begin Other direct mail. new text end

new text begin (a) Notwithstanding other subdivisions of this section,
the provisions in paragraphs (b) and (c) apply to the sale of other direct mail. "Other direct
mail" means printed material that is direct mail as defined in section 297A.61, subdivision
35, but is not advertising and promotional direct mail as described in subdivision 7,
regardless of whether advertising and promotional direct mail is included in the same
mailing. Other direct mail includes, but is not limited to:
new text end

new text begin (1) direct mail pertaining to a transaction between the purchaser and addressee,
where the mail contains personal information specific to the addressee including, but not
limited to, invoices, bills, statements of account, and payroll advices;
new text end

new text begin (2) any legally required mailings including, but not limited to, privacy notices,
tax reports, and stockholder reports; and
new text end

new text begin (3) other nonpromotional direct mail delivered to existing or former shareholders,
customers, employees, or agents including, but not limited to, newsletters and
informational pieces.
new text end

new text begin Other direct mail does not include printed materials that result from developing
billing information or providing any data processing service that is more than incidental to
producing the other direct mail.
new text end

new text begin (b) A purchaser of other direct mail may provide the seller with either a fully
completed exemption certificate as described in section 297A.72 indicating that the
purchaser is authorized to pay any sales or use tax due on purchases made by the purchaser
directly to the commissioner under section 297A.89, or a fully completed exemption
certificate claiming an exemption for direct mail. If the purchaser provides one of the
exemption certificates listed, then the seller, in the absence of bad faith, is relieved of all
obligations to collect, pay, or remit the tax on any transaction involving other direct mail
to which the certificate applies. The purchaser shall source the sale to the jurisdictions to
which the other direct mail is to be delivered to the recipients of the mail, and shall report
and pay any applicable tax due.
new text end

new text begin (c) If the purchaser does not provide the seller with a fully completed exemption
certificate claiming either exemption listed in paragraph (b), the sale shall be sourced
according to subdivision 2, paragraph (d).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2011.
new text end

Sec. 7.

Minnesota Statutes 2010, section 297A.68, is amended by adding a subdivision
to read:


new text begin Subd. 42. new text end

new text begin Resold admission tickets. new text end

new text begin (a) When a ticket reseller who purchased
a ticket from a seller who is in the business of selling tickets resells the ticket, the
ticket reseller must charge tax on the total amount for which the ticket is resold and the
following rules apply:
new text end

new text begin (1) if the ticket reseller did not use a fully completed exemption certificate to claim
the exemption from tax for resale, but instead paid tax on the original purchase, then the
ticket reseller may do one of the following:
new text end

new text begin (i) seek a refund of that tax under section 289A.50; or
new text end

new text begin (ii) pass through to the purchaser the amount of the tax the ticket reseller paid on
the original purchase, by giving the purchaser credit for the Minnesota state and local tax
paid by the ticket reseller on the ticket reseller's original purchase of the ticket. Credit
for the tax cannot exceed either the sales tax paid on the original price of the ticket or the
sales tax charged by the ticket reseller to the final purchaser;
new text end

new text begin (2) if the ticket reseller did not pay tax on the original purchase, tax is due on the full
amount of the ticket when resold, without a credit given to the final purchaser; or
new text end

new text begin (3) the ticket reseller must retain records documenting the price and tax paid by the
ticket reseller when purchasing the ticket and the price and tax collected when the ticket
reseller resells the ticket.
new text end

new text begin (b) When a ticket reseller who purchased a ticket from a seller who is not in the
business of selling tickets resells the ticket, the ticket reseller must charge tax on the total
amount for which the ticket is resold and the following rules apply:
new text end

new text begin (1) the ticket reseller may credit its purchaser an amount equal to the tax the ticket
reseller would have paid its seller, had the seller been registered to collect tax on its
sale of the ticket to the ticket reseller. Credit for the tax cannot exceed either the sales
tax paid on the original price of the ticket or the sales tax charged by the ticket reseller
to the final purchaser. It is presumed that the original purchase price of the ticket is the
face amount of the ticket;
new text end

new text begin (2) if no tax was paid on the original purchase, tax is due on the full amount of the
ticket when resold, without a credit given to the ticket reseller's purchaser; and
new text end

new text begin (3) the ticket reseller must retain records documenting the price and tax paid by the
ticket reseller when purchasing the ticket and the price and tax collected when the ticket
reseller resells the ticket.
new text end

new text begin (c) For purposes of this subdivision, "ticket reseller" means a person who:
new text end

new text begin (1) purchases admission tickets to a sporting event, theater, musical performance, or
place of public entertainment or amusement of any kind;
new text end

new text begin (2) resells admission tickets to events under clause (1); and
new text end

new text begin (3) is registered to collect tax under this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2011.
new text end

Sec. 8.

Minnesota Statutes 2010, section 297A.70, subdivision 1, is amended to read:


Subdivision 1.

Scope.

(a) To the extent provided in this section, the gross receipts
from sales of items to or by, and storage, distribution, use, or consumption of items by the
organizations new text beginor units of local government new text endlisted in this section are specifically exempted
from the taxes imposed by this chapter.

(b) Notwithstanding any law to the contrary enacted before 1992, only sales to
governments and political subdivisions listed in this section are exempt from the taxes
imposed by this chapter.

(c) "Sales" includes purchases under an installment contract or lease purchase
agreement under section 465.71.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2011.
new text end

Sec. 9.

Minnesota Statutes 2010, section 297A.70, subdivision 2, is amended to read:


Subd. 2.

Sales to government.

(a) All sales, except those listed in paragraph (b),
to the following governments and political subdivisions, or to the listed agencies or
instrumentalities of governments and political subdivisions, are exempt:

(1) the United States and its agencies and instrumentalities;

(2) school districts, the University of Minnesota, state universities, community
colleges, technical colleges, state academies, the Perpich Minnesota Center for Arts
Education, and an instrumentality of a political subdivision that is accredited as an
optional/special function school by the North Central Association of Colleges and Schools;

(3) hospitals and nursing homes owned and operated by political subdivisions of
the state of tangible personal property and taxable services used at or by hospitals and
nursing homes;

(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip
operations provided for in section 473.4051;

(5) other states or political subdivisions of other states, if the sale would be exempt
from taxation if it occurred in that state; and

(6) deleted text beginsales todeleted text end public libraries, public library systems, multicounty, multitype library
systems as defined in section 134.001, county law libraries under chapter 134A, state
agency libraries, the state library under section 480.09, and the Legislative Reference
Librarynew text begin; and
new text end

new text begin (7) townsnew text end.

(b) This exemption does not apply to the sales of the following products and services:

(1) building, construction, or reconstruction materials purchased by a contractor
or a subcontractor as a part of a lump-sum contract or similar type of contract with a
guaranteed maximum price covering both labor and materials for use in the construction,
alteration, or repair of a building or facility;

(2) construction materials purchased by tax exempt entities or their contractors to
be used in constructing buildings or facilities which will not be used principally by the
tax exempt entities;

(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11,
except for leases entered into by the United States or its agencies or instrumentalities; deleted text beginor
deleted text end

(4) lodging as defined under section 297A.61, subdivision 3, paragraph (g),
clause (2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in
section 297A.67, subdivision 2, except for lodging, prepared food, candy, soft drinks,
and alcoholic beverages purchased directly by the United States or its agencies or
instrumentalitiesnew text begin; or new text end

new text begin (5) goods or services purchased by a town that are generally provided by a private
business and the purchases would be taxable if made by a private business engaged in the
same activity
new text end.

(c) As used in this subdivision, "school districts" means public school entities and
districts of every kind and nature organized under the laws of the state of Minnesota, and
any instrumentality of a school district, as defined in section 471.59.

new text begin (d) As used in this subdivision, "goods or services generally provided by a private
business" include, but are not limited to, goods or services provided by liquor stores, gas
and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes,
and laundromats. "Goods or services generally provided by a private business" do not
include housing services, sewer and water services, wastewater treatment, ambulance and
other public safety services, correctional services, chore or homemaking services provided
to elderly or disabled individuals, or road and street maintenance or lighting.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2011.
new text end

Sec. 10.

Minnesota Statutes 2010, section 297A.70, subdivision 3, is amended to read:


Subd. 3.

Sales of certain goods and services to government.

(a) The following
sales to or use by the specified governments and political subdivisions of the state are
exempt:

(1) repair and replacement parts for emergency rescue vehicles, fire trucks, and
fire apparatus to a political subdivision;

(2) machinery and equipment, except for motor vehicles, used directly for mixed
municipal solid waste management services at a solid waste disposal facility as defined in
section 115A.03, subdivision 10;

(3) chore and homemaking services to a political subdivision of the state to be
provided to elderly or disabled individuals;

(4) telephone services to the Office of Enterprise Technology that are used to provide
telecommunications services through the enterprise technology revolving fund;

(5) firefighter personal protective equipment as defined in paragraph (b), if purchased
or authorized by and for the use of an organized fire department, fire protection district, or
fire company regularly charged with the responsibility of providing fire protection to the
state or a political subdivision;

(6) bullet-resistant body armor that provides the wearer with ballistic and trauma
protection, if purchased by a law enforcement agency of the state or a political subdivision
of the state, or a licensed peace officer, as defined in section 626.84, subdivision 1;

(7) motor vehicles purchased or leased by political subdivisions of the state if the
vehicles are exempt from registration under section 168.012, subdivision 1, paragraph (b),
exempt from taxation under section 473.448, or exempt from the motor vehicle sales tax
under section 297B.03, clause (12);

(8) equipment designed to process, dewater, and recycle biosolids for wastewater
treatment facilities of political subdivisions, and materials incidental to installation of
that equipment;

(9) deleted text beginsales to a town of gravel and of machinery, equipment, and accessories, except
motor vehicles, used exclusively for road and bridge maintenance, and leases by a town of
motor vehicles exempt from tax under section 297B.03, clause (10);
deleted text end

deleted text begin (10)deleted text end the removal of trees, bushes, or shrubs for the construction and maintenance
of roads, trails, or firebreaks when purchased by an agency of the state or a political
subdivision of the state; deleted text beginand
deleted text end

deleted text begin (11)deleted text endnew text begin (10)new text end purchases by the Metropolitan Council or the Department of Transportation
of vehicles and repair parts to equip operations provided for in section 174.90, including,
but not limited to, the Northstar Corridor Rail projectdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (11) purchases of water used directly in providing public safety services by an
organized fire department, fire protection district, or fire company regularly charged with
the responsibility of providing fire protection to the state or a political subdivision.
new text end

(b) For purposes of this subdivision, "firefighters personal protective equipment"
means helmets, including face shields, chin straps, and neck liners; bunker coats and
pants, including pant suspenders; boots; gloves; head covers or hoods; wildfire jackets;
protective coveralls; goggles; self-contained breathing apparatus; canister filter masks;
personal alert safety systems; spanner belts; optical or thermal imaging search devices;
and all safety equipment required by the Occupational Safety and Health Administration.

(c) For purchases of items listed in paragraph (a), clause (11), the tax must be
imposed and collected as if the rate under section 297A.62, subdivision 1, applied and
then refunded in the manner provided in section 297A.75.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2011, except that the new clause (11) is effective retroactively for sales and
purchases made after June 30, 2007; however, for purposes of the new clause (11),
no refunds may be made for amounts already paid on water purchased between June
30, 2007, and January 30, 2010.
new text end

Sec. 11.

Minnesota Statutes 2010, section 297A.70, subdivision 8, is amended to read:


Subd. 8.

deleted text beginRegionwidedeleted text end Public safety radio communication deleted text beginsystemdeleted text endnew text begin systemsnew text end;
products and services.

Products and services including, but not limited to, end user
equipment used for construction, ownership, operation, maintenance, and enhancement
of deleted text beginthe backbone system of the regionwidedeleted text end public safety radio communication deleted text beginsystem
established under sections 403.21 to 403.40
deleted text endnew text begin systems, including public safety radio
dispatch centers
new text end, are exempt. deleted text beginFor purposes of this subdivision, backbone system is defined
in section 403.21, subdivision 9. This subdivision is effective for purchases, sales, storage,
use, or consumption for use in the first and second phases of the system, as defined in
section 403.21, subdivisions 3, 10, and 11, that portion of the third phase of the system that
is located in the southeast district of the State Patrol and the counties of Benton, Sherburne,
Stearns, and Wright, and that portion of the system that is located in Itasca County.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
December 31, 2009. After July 1, 2013, purchasers may apply for a refund of tax paid for
qualifying purchases under this subdivision made after December 31, 2009, and before
July 1, 2013, in the manner provided in section 297A.75.
new text end

Sec. 12.

Minnesota Statutes 2010, section 297A.75, subdivision 1, is amended to read:


Subdivision 1.

Tax collected.

The tax on the gross receipts from the sale of the
following exempt items must be imposed and collected as if the sale were taxable and the
rate under section 297A.62, subdivision 1, applied. The exempt items include:

(1) capital equipment exempt under section 297A.68, subdivision 5;

(2) building materials for an agricultural processing facility exempt under section
297A.71, subdivision 13;

(3) building materials for mineral production facilities exempt under section
297A.71, subdivision 14;

(4) building materials for correctional facilities under section 297A.71, subdivision
3
;

(5) building materials used in a residence for disabled veterans exempt under section
297A.71, subdivision 11;

(6) elevators and building materials exempt under section 297A.71, subdivision 12;

(7) building materials for the Long Lake Conservation Center exempt under section
297A.71, subdivision 17;

(8) materials and supplies for qualified low-income housing under section 297A.71,
subdivision 23
;

(9) materials, supplies, and equipment for municipal electric utility facilities under
section 297A.71, subdivision 35;

(10) equipment and materials used for the generation, transmission, and distribution
of electrical energy and an aerial camera package exempt under section 297A.68,
subdivision 37;

(11) tangible personal property and taxable services and construction materials,
supplies, and equipment exempt under section 297A.68, subdivision 41;

(12) commuter rail vehicle and repair parts under section 297A.70, subdivision
3, clause (11);

(13) materials, supplies, and equipment for construction or improvement of projects
and facilities under section 297A.71, subdivision 40;

(14) materials, supplies, and equipment for construction or improvement of a meat
processing facility exempt under section 297A.71, subdivision 41; deleted text beginand
deleted text end

(15) materials, supplies, and equipment for construction, improvement, or expansion
of an aerospace defense manufacturing facility exempt under section 297A.71, subdivision
42new text begin; and
new text end

new text begin (16) products and services for a regionwide public safety radio communication
system exempt under section 297A.70, subdivision 8, purchased after December 31,
2009, and before July 1, 2013
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
December 31, 2009. After July 1, 2013, purchasers may apply for a refund of tax paid for
qualifying purchases under this subdivision made after December 31, 2009, and before
July 1, 2013, in the manner provided in section 297A.75.
new text end

Sec. 13.

Minnesota Statutes 2010, section 297A.75, subdivision 2, is amended to read:


Subd. 2.

Refund; eligible persons.

Upon application on forms prescribed by the
commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
must be paid to the applicant. Only the following persons may apply for the refund:

(1) for subdivision 1, clauses (1) to (3), the applicant must be the purchaser;

(2) for subdivision 1, clauses (4) and (7), the applicant must be the governmental
subdivision;

(3) for subdivision 1, clause (5), the applicant must be the recipient of the benefits
provided in United States Code, title 38, chapter 21;

(4) for subdivision 1, clause (6), the applicant must be the owner of the homestead
property;

(5) for subdivision 1, clause (8), the owner of the qualified low-income housing
project;

(6) for subdivision 1, clause (9), the applicant must be a municipal electric utility or
a joint venture of municipal electric utilities;

(7) for subdivision 1, clauses (10), (11), (14), and (15), the owner of the qualifying
business; and

(8) for subdivision 1, clauses (12) deleted text beginanddeleted text endnew text begin,new text end (13)new text begin, and (16)new text end, the applicant must be the
governmental entity that owns or contracts for the project or facility.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
December 31, 2009. After July 1, 2013, purchasers may apply for a refund of tax paid for
qualifying purchases under this subdivision made after December 31, 2009, and before
July 1, 2013, in the manner provided in section 297A.75.
new text end

Sec. 14.

Minnesota Statutes 2010, section 297A.75, subdivision 3, is amended to read:


Subd. 3.

Application.

(a) The application must include sufficient information
to permit the commissioner to verify the tax paid. If the tax was paid by a contractor,
subcontractor, or builder, under subdivision 1, clause (4), (5), (6), (7), (8), (9), (10), (11),
(12), (13), (14), deleted text beginordeleted text end (15)new text begin, or (16)new text end, the contractor, subcontractor, or builder must furnish to
the refund applicant a statement including the cost of the exempt items and the taxes paid
on the items unless otherwise specifically provided by this subdivision. The provisions of
sections 289A.40 and 289A.50 apply to refunds under this section.

(b) An applicant may not file more than two applications per calendar year for
refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.

(c) Total refunds for purchases of items in section 297A.71, subdivision 40, must not
exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases
of items in sections 297A.70, subdivision 3, paragraph (a), clause (11), and 297A.71,
subdivision 40, must not be filed until after June 30, 2009.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
December 31, 2009. After July 1, 2013, purchasers may apply for a refund of tax paid for
qualifying purchases under this subdivision made after December 31, 2009, and before
July 1, 2013, in the manner provided in section 297A.75.
new text end

Sec. 15.

Minnesota Statutes 2010, section 297A.82, subdivision 4, is amended to read:


Subd. 4.

Exemptions.

(a) The following transactions are exempt from the tax
imposed in this chapter to the extent provided.

(b) The purchase or use of aircraft previously registered in Minnesota by a
corporation or partnership is exempt if the transfer constitutes a transfer within the
meaning of section 351 or 721 of the Internal Revenue Code.

(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer
of an aircraft for which a commercial use permit has been issued pursuant to section
360.654 is exempt, if the aircraft is resold while the permit is in effect.

(d) Airflight equipment when sold to, or purchased, stored, used, or consumed by
airline companies, as defined in section 270.071, subdivision 4, is exempt. For purposes of
this subdivision, "airflight equipment" includes airplanes and parts necessary for the repair
and maintenance of such airflight equipment, and flight simulators, but does not include
airplanes with a gross weight of less than 30,000 pounds that are used on intermittent or
irregularly timed flights.

(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined
in section 360.511 and approved by the Federal Aviation Administration, and which the
seller delivers to a purchaser outside Minnesota or which, without intermediate use, is
shipped or transported outside Minnesota by the purchaser are exempt, but only if the
purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter
returned to a point within Minnesota, except in the course of interstate commerce or
isolated and occasional use, and will be registered in another state or country upon its
removal from Minnesota. This exemption applies even if the purchaser takes possession of
the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes
for a period not to exceed ten days prior to removing the aircraft from this state.

new text begin (f) The sale or purchase of aircraft and aircraft equipment, including parts necessary
for repair and maintenance of such airflight equipment, as defined under Federal Aviation
Regulations, Part 135, that has a maximum certified takeoff weight of 6,000 pounds or
more are exempt.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2011.
new text end

Sec. 16. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, section 289A.60, subdivision 31, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes due and payable after
July 1, 2011.
new text end

ARTICLE 4

ECONOMIC DEVELOPMENT

Section 1.

new text begin [116W.25] CITATION.
new text end

new text begin Sections 116W.26 to 116W.34 may be cited as the "Minnesota science and
technology program."
new text end

Sec. 2.

new text begin [116W.26] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin For the purposes of sections 116W.26 to 116W.34,
the terms in this section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Authority. new text end

new text begin "Authority" means the Minnesota Science and Technology
Authority established under this chapter.
new text end

new text begin Subd. 3. new text end

new text begin College or university. new text end

new text begin "College or university" means an institution of
postsecondary education, public or private, that grants undergraduate or postgraduate
academic degrees, conducts significant research or development activities in the areas of
science and technology.
new text end

new text begin Subd. 4. new text end

new text begin Commercialization. new text end

new text begin "Commercialization" means any of the full spectrum
of activities required for a new technology, product, or process to be developed from
its basic research of conceptual stage through applied research or development to the
marketplace including, without limitation, the steps leading up to and including licensure,
sales, and services.
new text end

new text begin Subd. 5. new text end

new text begin Commercialized research project. new text end

new text begin "Commercialized research project"
means research conducted within a college or university or nonprofit research institution
or by a qualified science and technology company that has shown advanced commercial
potential through license agreements, patents, or other forms of invention disclosure, and
by which a qualified science and technology company has been or is being currently
formed.
new text end

new text begin Subd. 6. new text end

new text begin Fund. new text end

new text begin "Fund" means the Minnesota science and technology fund.
new text end

new text begin Subd. 7. new text end

new text begin Nonprofit research institution. new text end

new text begin "Nonprofit research institution" means an
entity with its principle place of business in Minnesota, that qualifies under section 501(c)
of the Internal Revenue Code, and that conducts significant research or development
activities in this state in the areas of science and technology.
new text end

new text begin Subd. 8. new text end

new text begin Program. new text end

new text begin "Program" means the Minnesota science and technology
program.
new text end

new text begin Subd. 9. new text end

new text begin Qualified science and technology company. new text end

new text begin "Qualified science and
technology company" means a corporation, limited liability company, S corporation,
partnership, limited liability partnership, or sole proprietorship with fewer than 100
employees that is engaged in research, development, or production of science or
technology in this state including, without limitation, research, development, or production
directed toward developing or providing science and technology products, processes, or
services for specific commercial or public purposes.
new text end

Sec. 3.

new text begin [116W.27] MINNESOTA SCIENCE AND TECHNOLOGY FUND.
new text end

new text begin A Minnesota science and technology fund is created in the state treasury. The fund
is a direct-appropriated special revenue fund. Money of the authority must be paid to the
commissioner of management and budget as agent of the authority and the commissioner
shall not commingle the money with other money. The money in the fund must be paid out
only on warrants drawn by the commissioner of management and budget on requisition of
the executive director of the authority or designee.
new text end

Sec. 4.

new text begin [116W.28] MINNESOTA SCIENCE AND TECHNOLOGY FUND;
AUTHORIZED USES.
new text end

new text begin The Minnesota science and technology fund may be used for the following to:
new text end

new text begin (1) establish the commercialized research program authorized under section
116W.29;
new text end

new text begin (2) establish the federal research and development support program under section
116W.30;
new text end

new text begin (3) establish the industry technology and competitiveness program under section
116W.31; and
new text end

new text begin (4) carry out the powers of the authority authorized under sections 116W.04 and
116W.32 that are in support of the programs in clauses (1) to (3).
new text end

Sec. 5.

new text begin [116W.29] COMMERCIALIZED RESEARCH PROGRAM.
new text end

new text begin (a) The authority may establish a commercialized research program. The purpose of
the program is to accelerate the commercialization of science and technology products,
processes, or services from colleges or universities, nonprofit research institutions or
qualified science and technology companies that lead to an increase in science and
technology businesses and jobs. The program shall:
new text end

new text begin (1) provide science and technology gap funding of up to $250,000 per science and
technology research project to assist in the commercialization and transfer of science and
technology research projects from a college or university or nonprofit research institution
to a qualified science and technology company; and
new text end

new text begin (2) provide funding of up to $250,000 for early stage development for qualified
science and technology companies to conduct commercialized research projects.
new text end

new text begin (b) All activities under the commercialized research program must require:
new text end

new text begin (1) written criteria set by the authority for the application, award, and use of the
funds;
new text end

new text begin (2) matching funds by the participating qualified science and technology company,
college or university, or nonprofit research institution;
new text end

new text begin (3) no more than 15 percent of the funds awarded by the authority may be used
for overhead costs; and
new text end

new text begin (4) a report by the participating qualified science and technology company, college
or university, or nonprofit research institution that provides documentation of the use of
funds and outcomes of the award. The report must be submitted to the authority within
one calendar year of the date of the award.
new text end

Sec. 6.

new text begin [116W.30] FEDERAL RESEARCH AND DEVELOPMENT SUPPORT
PROGRAM.
new text end

new text begin The authority may establish a federal research and development support program.
The purpose of the program is to increase and coordinate efforts to procure federal funding
for research projects of primary benefit to qualified science and technology companies,
colleges or universities, and nonprofit research institutions. The program shall:
new text end

new text begin (1) develop and execute a strategy to identify specific federal agencies and programs
that support the growth of science and technology industries in this state; and
new text end

new text begin (2) provide grants to qualified science and technology companies:
new text end

new text begin (i) to assist in the development of federal Small Business Innovation (SBIR) or
Small Business Technology Transfer (STTR) proposals; and
new text end

new text begin (ii) to match funds received through SBIR or STTR awards. No more than
$1,500,000 may be awarded in a year for matching grants under this clause.
new text end

Sec. 7.

new text begin [116W.31] INDUSTRY INNOVATION AND COMPETITIVENESS
PROGRAM.
new text end

new text begin (a) The authority may establish an industry technology and competitiveness program.
The purpose of the program is to advance the technological capacity and competitiveness
of existing and emerging science and technology industries. The program shall:
new text end

new text begin (1) provide matching funds to programs and organizations that assist entrepreneurs
in starting and growing qualified science and technology companies including, but not
limited to, matching funds for mentoring programs, consulting and technical services,
and related activities;
new text end

new text begin (2) fund initiatives that retain engineering, science, technology, and mathematical
occupations in the state including, but not limited to, internships, mentoring, and support
of industry and professional organizations; and
new text end

new text begin (3) fund initiatives that support the growth of targeted industry clusters and the
competitiveness of existing qualified science and technology companies in developing
and marketing new products and services.
new text end

new text begin (b) All activities under the industry innovation and competitiveness program shall
require:
new text end

new text begin (i) written criteria set by the authority for the application, award, and use of the funds;
new text end

new text begin (ii) matching funds by the participating qualified science and technology company,
college or university, or nonprofit research institution; and
new text end

new text begin (iii) a report by the participating qualified science and technology company, college
or university, or nonprofit research institution providing documentation on the use of the
funds and outcomes of the award. The report must be submitted to the authority within
one calendar year from the date of the award.
new text end

Sec. 8.

new text begin [116W.32] MINNESOTA SCIENCE AND TECHNOLOGY AUTHORITY;
POWERS UNDER FUND.
new text end

new text begin Subdivision 1. new text end

new text begin General powers. new text end

new text begin The authority shall have all of the powers
necessary to carry out the purposes and provisions of sections 116W.26 to 116W.34,
including, but not limited to, those provided under section 116W.04 and the following:
new text end

new text begin (1) The authority may make awards in the forms of grants or loans, and charge and
receive a reasonable interest for the loans, or take an equity position in form of stock, a
convertible note, or other securities in consideration of an award. Interests, revenues, or
other proceeds received as a result of a transaction authorized by use of this fund shall be
deposited to the corpus of the fund and used in the same manner as the corpus of the fund.
new text end

new text begin (2) In awarding money from the fund, priority shall be given to proposals from
qualified science and technology companies that have demonstrable economic benefit to
the state in terms of the formation of a new private sector business entity, the creation of
jobs, or the attraction of federal and private funding.
new text end

new text begin (3) In awarding money from the fund, priority shall be given to proposals from
colleges or universities and nonprofit research institutions that:
new text end

new text begin (i) promote collaboration between any combination of colleges or universities,
nonprofit research institutions, and private industry;
new text end

new text begin (ii) enhance existing research superiority by attracting new research entities,
research talent, or resources to the state; and
new text end

new text begin (iii) create new research superiority that attracts significant researchers and resources
from outside the state.
new text end

new text begin (4) Subject to the limits in this clause, money within the fund may be used
for reasonable administrative expenses by the authority including staffing and direct
operational expenses, and professional fees for accounting, legal, and other technical
services required to carry out the intent of the program and administration of the fund.
Administrative expenses may not exceed five percent of the first $5,000,000 in the fund
and two percent of any amount in excess of $5,000,000.
new text end

new text begin (5) Before making an award, the authority shall enter into a written agreement with
the entity receiving the award that specifies the uses of the award.
new text end

new text begin (6) If the award recipient has not used the award received for the purposes intended,
as of the date provided in the agreement, the recipient shall repay that amount and any
interest applicable under the agreement to the authority. All repayments must be deposited
to the corpus of the fund.
new text end

new text begin Subd. 2. new text end

new text begin Rules. new text end

new text begin The authority may adopt rules to implement the programs
authorized under sections 116W.29 to 116W.31.
new text end

Sec. 9.

new text begin [116W.33] REPAYMENT.
new text end

new text begin An entity must repay all or a portion of the amount of any award, grant, loan, or
financial assistance of any type paid by the authority under sections 116W.29 to 116W.32
if the entity relocates outside the state or ceases operation in Minnesota within four years
from the date the authority provided the financial award. If the entity relocates outside of
this state or ceases operation in Minnesota within three years of the financial award, the
entity must repay 100 percent of the award. If the entity relocates or ceases operation in
Minnesota after a period of three years but before four years from the date of the financial
award, the entity must repay 75 percent of the financial award.
new text end

Sec. 10.

new text begin [116W.34] EXPIRATION.
new text end

new text begin Sections 116W.26 to 116W.33 expire on the expiration date of the authority under
section 116W.03, subdivision 7. Any unused money in the fund shall be deposited in the
general fund.
new text end

Sec. 11.

Minnesota Statutes 2010, section 469.176, subdivision 4c, is amended to read:


Subd. 4c.

Economic development districts.

(a) Revenue derived from tax
increment from an economic development district may not be used to provide
improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form
to developments consisting of buildings and ancillary facilities, if more than 15 percent
of the buildings and facilities (determined on the basis of square footage) are used for a
purpose other than:

(1) the manufacturing or production of tangible personal property, including
processing resulting in the change in condition of the property;

(2) warehousing, storage, and distribution of tangible personal property, excluding
retail sales;

(3) research and development related to the activities listed in clause (1) or (2);

(4) telemarketing if that activity is the exclusive use of the property;

(5) tourism facilities;

(6) qualified border retail facilities; or

(7) space necessary for and related to the activities listed in clauses (1) to (6).

(b) Notwithstanding the provisions of this subdivision, revenues derived from tax
increment from an economic development district may be used to provide improvements,
loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000
square feet of any separately owned commercial facility located within the municipal
jurisdiction of a small city, if the revenues derived from increments are spent only to
assist the facility directly or for administrative expenses, the assistance is necessary to
develop the facility, and all of the increments, except those for administrative expenses,
are spent only for activities within the district.

(c) A city is a small city for purposes of this subdivision if the city was a small city
in the year in which the request for certification was made and applies for the rest of
the duration of the district, regardless of whether the city qualifies or ceases to qualify
as a small city.

(d) Notwithstanding the requirements of paragraph (a) and the finding requirements
of section 469.174, subdivision 12, tax increments from an economic development district
may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or
assistance in any form to developments consisting of buildings and ancillary facilities, if
all the following conditions are met:

(1) the municipality finds that the project will create or retain jobs in this state,
including construction jobs, and that construction of the project would not have
commenced before July 1, deleted text begin2011deleted text endnew text begin 2012new text end, without the authority providing assistance under
the provisions of this paragraph;

(2) construction of the project begins no later than July 1, deleted text begin2011deleted text endnew text begin 2012new text end; deleted text beginand
deleted text end

(3) the request for certification of the district is made no later than June 30, deleted text begin2011deleted text endnew text begin
2012; and
new text end

new text begin (4) for development of housing under this paragraph, the construction must begin
before January 1, 2012
new text end.

new text begin The provisions of this paragraph may not be used to assist housing that is developed
to qualify under section 469.1761, subdivision 2 or 3, or similar requirements of other law,
if construction of the project begins later than July 1, 2011.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

Minnesota Statutes 2010, section 469.176, subdivision 4m, is amended to read:


Subd. 4m.

Temporary authority to stimulate construction.

(a) Notwithstanding
the restrictions in any other subdivision of this section or any other law to the contrary,
except the requirement to pay bonds to which the increments are pledged and the
provisions of subdivisions 4g and 4h, the authority may spend tax increments for one or
more of the following purposes:

(1) to provide improvements, loans, interest rate subsidies, or assistance in any
form to private development consisting of the construction or substantial rehabilitation
of buildings and ancillary facilities, if doing so will create or retain jobs in this state,
including construction jobs, and that the construction commences before July 1, deleted text begin2011deleted text endnew text begin
2012
new text end, and would not have commenced before that date without the assistance; or

(2) to make an equity or similar investment in a corporation, partnership, or limited
liability company that the authority determines is necessary to make construction of a
development that meets the requirements of clause (1) financially feasible.

(b) The authority may undertake actions under the authority of this subdivision only
after approval by the municipality of a written spending plan that specifically authorizes
the authority to take the actions. The municipality shall approve the spending plan only
after a public hearing after published notice in a newspaper of general circulation in
the municipality at least once, not less than ten days nor more than 30 days prior to the
date of the hearing.

(c) The authority to spend tax increments under this subdivision expires December
31, deleted text begin2011deleted text endnew text begin 2012new text end.

new text begin (d) For a development consisting of housing, the authority to spend tax increments
under this subdivision expires December 31, 2011, and construction must commence
before July 1, 2011, except the authority to spend tax increments on market rate housing
developments under this subdivision expires July 31, 2012, and construction must
commence before January 1, 2012.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 13.

Minnesota Statutes 2010, section 469.1763, subdivision 2, is amended to read:


Subd. 2.

Expenditures outside district.

(a) For each tax increment financing
district, an amount equal to at least 75 percent of the total revenue derived from tax
increments paid by properties in the district must be expended on activities in the district
or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities
in the district or to pay, or secure payment of, debt service on credit enhanced bonds.
For districts, other than redevelopment districts for which the request for certification
was made after June 30, 1995, the in-district percentage for purposes of the preceding
sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax
increments paid by properties in the district may be expended, through a development fund
or otherwise, on activities outside of the district but within the defined geographic area of
the project except to pay, or secure payment of, debt service on credit enhanced bonds.
For districts, other than redevelopment districts for which the request for certification was
made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is
20 percent. The revenue derived from tax increments for the district that are expended on
costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before
calculating the percentages that must be expended within and without the district.

(b) In the case of a housing district, a housing project, as defined in section 469.174,
subdivision 11
, is an activity in the district.

(c) All administrative expenses are for activities outside of the district, except that
if the only expenses for activities outside of the district under this subdivision are for
the purposes described in paragraph (d), administrative expenses will be considered as
expenditures for activities in the district.

(d) The authority may elect, in the tax increment financing plan for the district,
to increase by up to ten percentage points the permitted amount of expenditures for
activities located outside the geographic area of the district under paragraph (a). As
permitted by section 469.176, subdivision 4k, the expenditures, including the permitted
expenditures under paragraph (a), need not be made within the geographic area of the
project. Expenditures that meet the requirements of this paragraph are legally permitted
expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, and 4j.
To qualify for the increase under this paragraph, the expenditures must:

(1) be used exclusively to assist housing that meets the requirement for a qualified
low-income building, as that term is used in section 42 of the Internal Revenue Code; new text beginand
new text end

(2) not exceed the qualified basis of the housing, as defined under section 42(c) of
the Internal Revenue Code, less the amount of any credit allowed under section 42 of
the Internal Revenue Code; and

(3) be used to:

(i) acquire and prepare the site of the housing;

(ii) acquire, construct, or rehabilitate the housing; or

(iii) make public improvements directly related to the housingdeleted text begin.deleted text endnew text begin; or
new text end

new text begin (4) be used to develop housing:
new text end

new text begin (i) if the market value of the housing does not exceed the lesser of:
new text end

new text begin (A) 150 percent of the average market of single-family homes in that municipality; or
new text end

new text begin (B) $200,000 for municipalities located in the metropolitan area, as defined in
section 473.121, or $125,000 for all other municipalities; and
new text end

new text begin (ii) if the expenditures are used to pay the cost of site acquisition, relocation,
demolition of existing structures, site preparation, and pollution abatement on one or
more parcels, if the parcel
new text end new text begin contains a residence containing one to four family dwelling
units that has been vacant for six or more months and
new text end new text begin is in foreclosure as defined in
section 325N.10, subdivision 7, but without regard to whether the residence is the owner's
principal residence, and only after the redemption period stated in the notice provided
under section 580.06 has expired.
new text end

(e) For a district created within a biotechnology and health sciences industry zone
as defined in section 469.330, subdivision 6, or for an existing district located within
such a zone, tax increment derived from such a district may be expended outside of the
district but within the zone only for expenditures required for the construction of public
infrastructure necessary to support the activities of the zone, land acquisition, and other
redevelopment costs as defined in section 469.176, subdivision 4j. These expenditures are
considered as expenditures for activities within the district.

new text begin (f) The authority under paragraph (d), clause (4), expires on December 31, 2016.
Increments may continue to be expended under this authority after that date, if they are
used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph
(a), if December 31, 2016, is considered to be the last date of the five-year period after
certification under that provision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for any district that is subject to the
provisions of section 469.1763, regardless of when the request for certification of the
district was made.
new text end

Sec. 14.

Laws 2010, chapter 389, article 7, section 22, is amended to read:


Sec. 22. CITY OF RAMSEY; TAX INCREMENT FINANCING DISTRICT;
SPECIAL RULES.

(a) If the city of Ramsey or an authority of the city elects upon the adoption of a tax
increment financing plan for a district, the rules under this section apply to a redevelopment
tax increment financing district established by the city or an authority of the city. The
redevelopment tax increment district includes parcels within the area bounded on the new text begineast
by Ramsey Boulevard, on the
new text endnorth by Bunker Lake Boulevard as extended west to Llama
Street, on the west by Llama Street, and on the south by a line running parallel to and
600 feet south of the southerly right-of-way for U.S. Highway 10, but including Parcels
28-32-25-43-0007 and 28-32-25-34-0002 in their entirety, and excluding the Anoka
County Regional Park property in its entirety. A parcel within this area that is included in
a tax increment financing district that was certified before the date of enactment of this act
may be included in the district created under this act if the initial district is decertified.

(b) The requirements for qualifying a redevelopment tax increment district under
Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcels located
within the district.

(c) deleted text beginIn addition to the costs permitted by deleted text endMinnesota Statutes, section 469.176,
subdivision 4j
, new text begindoes not apply to the district. new text endEligible expenditures within the district
include new text beginbut are not limited to (1) new text endthe city's share of the costs necessary to provide for
the construction of the Northstar Transit Station and related infrastructure, including
structured parking, a pedestrian overpass, and roadway improvementsnew text begin, (2) the cost of
land acquired by the city or the housing and redevelopment authority in and for the city
of Ramsey within the district prior to the establishment of the district, and (3) the cost
of public improvements installed within the tax increment financing district prior to the
establishment of the district
new text end.

(d) The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that
activities must be undertaken within a five-year period from the date of certification of a
tax increment financing district, is considered to be met for the district if the activities
were undertaken within ten years from the date of certification of the district.

(e) Except for administrative expenses, the in-district percentage for purposes of
the restriction on pooling under Minnesota Statutes, section 469.1763, subdivision 2, for
this district is 100 percent.

new text begin (f) The requirement of Minnesota Statutes, section 469.177, subdivision 4, does not
apply to Parcels 28-32-25-42-0021 and 28-32-25-41-0014, where development occurred
after enactment of Laws 2010, chapter 389, article 7, section 22, and prior to adoption of
the tax increment financing plan for the district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the governing
body of the city of Ramsey, and upon compliance by the city with Minnesota Statutes,
section 645.021, subdivision 3.
new text end

Sec. 15. new text beginCITY OF COHASSET; USE OF TAX INCREMENTS.
new text end

new text begin The authority operating tax increment financing districts No. 2-1 and No. 3-1 in
the city of Cohasset may transfer tax increments from each of those districts to the city
in an amount equal to the advances made by the city from its general fund to finance
expenditures under Minnesota Statutes, section 469.176, subdivision 4, for the benefit
of that district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
upon approval by the governing body of the city of Cohasset and compliance with
Minnesota Statutes, section 645.021, subdivision 3.
new text end

Sec. 16. new text beginCITY OF LINO LAKES; TAX INCREMENT FINANCING.
new text end

new text begin Subdivision 1. new text end

new text begin Duration of district. new text end

new text begin Notwithstanding the provisions of Minnesota
Statutes, section 469.176, subdivision 1b, the city of Lino Lakes may collect tax
increments from tax increment financing district no. 1-10 through December 31, 2023,
subject to the conditions in subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Conditions for extension. new text end

new text begin All tax increments remaining in the account
for the district after February 1, 2011, and all tax increments collected thereafter, must
be used only to pay debt service on bonds issued to finance the interchange of Anoka
County Highway 23 and marked Interstate Highway 35W, bonds issued to finance public
improvements serving the development known as Legacy at Woods Edge, and any bonds
issued to refund those bonds. Minnesota Statutes, sections 469.176, subdivision 4c, and
469.1763 do not apply to expenditures made under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance by the governing
body of the city of Lino Lakes with the requirements of Minnesota Statutes, sections
469.1782, subdivision 2, and 645.021, subdivision 3.
new text end

Sec. 17. new text beginCITY OF TAYLORS FALLS; BORDER CITY DEVELOPMENT ZONE.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin The governing body of the city of Taylors Falls may
designate all or any part of the city as a border city development zone.
new text end

new text begin Subd. 2. new text end

new text begin Application of general law. new text end

new text begin (a) Minnesota Statutes, sections 469.1731 to
469.1735, apply to the border city development zones designated under this section. The
governing body of the city may exercise the powers granted under Minnesota Statutes,
sections 469.1731 to 469.1735, including powers that apply outside of the zones.
new text end

new text begin (b) The allocation under subdivision 3 for purposes of Minnesota Statutes, section
469.1735, subdivision 2, is appropriated to the commissioner of revenue.
new text end

new text begin Subd. 3. new text end

new text begin Allocation of state tax reductions. new text end

new text begin (a) The cumulative total amount of the
state portion of the tax reductions for all years of the program under Minnesota Statutes,
sections 469.1731 to 469.1735, for the city of Taylors Falls, is limited to $100,000.
new text end

new text begin (b) This allocation may be used for tax reductions provided in Minnesota Statutes,
section 469.1732 or 469.1734, or for reimbursements under Minnesota Statutes, section
469.1735, subdivision 3, but only if the governing body of the city of Taylors Falls
determines that the tax reduction or offset is necessary to enable a business to expand
within the city or to attract a business to the city.
new text end

new text begin (c) The commissioner of revenue may waive the limit under this subdivision using
the same rules and standards provided in Minnesota Statutes, section 469.169, subdivision
12, paragraph (b).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 18. new text beginAPPROPRIATION.
new text end

new text begin Except as otherwise provided by law, $500,000 is appropriated to the Minnesota
science and technology fund for fiscal year 2012 and any unspent money carries over
to fiscal year 2013. Notwithstanding section 116W.32, subdivision 1, clause (4), up to
$107,000 of the appropriation may be used for administrative expenses of the authority.
This is a onetime appropriation and is not added to the authority's base budget.
new text end

ARTICLE 5

LOCAL TAXES

Section 1.

Minnesota Statutes 2010, section 297A.99, subdivision 1, is amended to
read:


Subdivision 1.

Authorization; scope.

(a) A political subdivision of this state may
impose a general sales tax (1) under section 297A.992, (2) under section 297A.993, (3) if
permitted by special law deleted text beginenacted prior to May 20, 2008deleted text end, or (4) if the political subdivision
enacted and imposed the tax before January 1, 1982, and its predecessor provision.

(b) This section governs the imposition of a general sales tax by the political
subdivision. The provisions of this section preempt the provisions of any special law:

(1) enacted before June 2, 1997, or

(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
provision from this section's rules by reference.

(c) This section does not apply to or preempt a sales tax on motor vehicles or a
special excise tax on motor vehicles.

deleted text begin (d) Until after May 31, 2010, a political subdivision may not advertise, promote,
expend funds, or hold a referendum to support imposing a local option sales tax unless
it is for extension of an existing tax or the tax was authorized by a special law enacted
prior to May 20, 2008.
deleted text end

new text begin (d) A political subdivision may not advertise or expend funds for the promotion of a
referendum to support imposing a local option sales tax. A political subdivision may only
expend funds to conduct the referendum.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2010, section 297A.99, subdivision 3, is amended to read:


Subd. 3.

Requirements for adoption, use, termination.

(a) Imposition of a local
sales tax is subject to approval by voters of the political subdivision at a general election.new text begin
The election must be conducted before the governing body of the political subdivision
requests legislative approval of the tax.
new text end

(b) The proceeds of the tax must be dedicated exclusively to payment of the cost of a
specific capital improvement which is designated at least 90 days before the referendum
on imposition of the tax is conducted.

(c) The tax must terminate after the improvement designated under paragraph (b)
has been completed.

(d) After a sales tax imposed by a political subdivision has expired or been
terminated, the political subdivision is prohibited from imposing a local sales tax for a
period of one year. Notwithstanding subdivision 13, this paragraph applies to all local
sales taxes in effect at the time of or imposed after May 26, 1999.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2010, section 473.757, subdivision 11, is amended to read:


Subd. 11.

Uses of tax.

(a) Revenues received from the tax imposed under
subdivision 10 may be used:

(1) to pay costs of collection;

(2) to pay or reimburse or secure the payment of any principal of, premium, or
interest on bonds issued in accordance with this act;

(3) to pay costs and make expenditures and grants described in this section, including
financing costs related to them;

(4) to maintain reserves for the foregoing purposes deemed reasonable and
appropriate by the county;

(5) to pay for operating costs of the ballpark authority other than the cost of
operating or maintaining the ballpark; and

(6) to make expenditures and grants for youth activities and amateur sports and
extension of library hours as described in subdivision 2;

and for no other purpose.

(b) Revenues from the tax designated for use under paragraph (a), clause (5), must
be deposited in the operating fund of the ballpark authority.

(c) After completion of the ballpark and public infrastructure, the tax revenues not
required for current payments of the expenditures described in paragraph (a), clauses (1) to
(6), shall be used to (i) redeem or defease the bonds and (ii) prepay or establish a fund for
payment of future obligations under grants or other commitments for future expenditures
which are permitted by this section. Upon the redemption or defeasance of the bonds and
the establishment of reserves adequate to meet such future obligations, the taxes shall
terminate and shall not be reimposed.new text begin For purposes of this subdivision, "reserves adequate
to meet such future obligations" means a reserve that does not exceed the net present value
of the county's obligation to make grants under paragraph (a), clauses (5) and (6), and to
fund the reserve for capital improvements required under section 473.759, subdivision 3,
for the 30-year period beginning on the date of the original issuance of the bonds, less
those obligations that the county has already paid.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by
Laws 2006, chapter 259, article 3, section 3, is amended to read:


Subdivision 1.

Sales tax authorized.

new text begin(a) new text endNotwithstanding Minnesota Statutes,
section 477A.016, or any other contrary provision of law, ordinance, or city charter, the
city of Hermantown may, by ordinance, impose an additional sales tax of up to one
percent on sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that
occur within the city. The proceeds of the tax imposed under this section must be used to
meet the costs of:

(1) extending a sewer interceptor line;

(2) construction of a booster pump station, reservoirs, and related improvements
to the water system; and

(3) construction of a building containing a police and fire station and an
administrative services facility.

new text begin (b) If the city imposed a sales tax of only one-half of one percent under paragraph
(a), it may increase the tax to one percent to fund the purposes under paragraph (a)
provided it is approved by the voters at a general election held before December 31, 2012.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following compliance by the
city of Hermantown with Minnesota Statutes, section 645.021, subdivision 3.
new text end

Sec. 5.

Laws 1998, chapter 389, article 8, section 43, subdivision 3, as amended by
Laws 2005, First Special Session chapter 3, article 5, section 28, is amended to read:


Subd. 3.

Use of revenues.

new text begin(a) new text endRevenues received from the taxes authorized by
subdivisions 1 and 2 must be used by the city to pay for the cost of collecting and
administering the taxes and to pay for the following projects:

(1) transportation infrastructure improvements including regional highway and
airport improvements;

(2) improvements to the civic center complex;

(3) a municipal water, sewer, and storm sewer project necessary to improve regional
ground water quality; and

(4) construction of a regional recreation and sports center and other higher education
facilities available for both community and student use.

new text begin (b) new text endThe total amount of capital expenditures or bonds for deleted text beginthesedeleted text end projectsnew text begin listed in
paragraph (a)
new text end that may be paid from the revenues raised from the taxes authorized in this
section may not exceed $111,500,000. The total amount of capital expenditures or bonds
for the project in clause (4) that may be paid from the revenues raised from the taxes
authorized in this section may not exceed $28,000,000.

new text begin (c) In addition to the projects authorized in paragraph (a) and not subject to the
amount stated in paragraph (b), the city of Rochester may, if approved by the voters at an
election under subdivision 5, paragraph (c), use the revenues received from the taxes and
bonds authorized in this section to pay the costs of or bonds for the following purposes:
new text end

new text begin (1) $17,000,000 for capital expenditures and bonds for the following Olmsted
County transportation infrastructure improvements:
new text end

new text begin (i) County State Aid Highway 34 reconstruction;
new text end

new text begin (ii) Trunk Highway 63 and County State Aid Highway 16 interchange;
new text end

new text begin (iii) phase II of the Trunk Highway 52 and County State Aid Highway 22
interchange;
new text end

new text begin (iv) widening of County State Aid Highway 22 West Circle Drive; and
new text end

new text begin (v) 60th Avenue Northwest corridor preservation;
new text end

new text begin (2) $30,000,000 for city transportation projects including:
new text end

new text begin (i) Trunk Highway 52 and 65th Street interchange;
new text end

new text begin (ii) NW transportation corridor acquisition;
new text end

new text begin (iii) Phase I of the Trunk Highway 52 and County State Aid Highway 22 interchange;
new text end

new text begin (iv) Trunk Highway 14 and Trunk Highway 63 intersection;
new text end

new text begin (v) Southeast transportation corridor acquisition;
new text end

new text begin (vi) Rochester International Airport expansion; and
new text end

new text begin (vii) a transit operations center bus facility;
new text end

new text begin (3) $14,000,000 for the University of Minnesota Rochester academic and
complementary facilities;
new text end

new text begin (4) $6,500,000 for the Rochester Community and Technical College/Winona State
University career technical education and science and math facilities;
new text end

new text begin (5) $6,000,000 for the Rochester Community and Technical College regional
recreation facilities at University Center Rochester;
new text end

new text begin (6) $20,000,000 for the Destination Medical Community Initiative;
new text end

new text begin (7) $8,000,000 for the regional public safety and 911 dispatch center facilities;
new text end

new text begin (8) $20,000,000 for a regional recreation/senior center;
new text end

new text begin (9) $10,000,000 for an economic development fund; and
new text end

new text begin (10) $8,000,000 for downtown infrastructure.
new text end

new text begin (d) No revenues from the taxes raised from the taxes authorized in subdivisions 1
and 2 may be used to fund transportation improvements related to a railroad bypass that
would divert traffic from the city of Rochester.
new text end

new text begin (e) The city shall use $5,000,000 of the money allocated to the purpose in paragraph
(c), clause (9), for grants to the cities of Byron, Chatfield, Dodge Center, Dover, Elgin,
Eyota, Kasson, Mantorville, Oronoco, Pine Island, Plainview, St. Charles, Stewartville,
Zumbrota, Spring Valley, West Concord, and Hayfield for economic development projects
that these communities would fund through their economic development authority or
housing and redevelopment authority.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Laws 1998, chapter 389, article 8, section 43, subdivision 4, as amended by
Laws 2005, First Special Session chapter 3, article 5, section 29, is amended to read:


Subd. 4.

Bonding authority.

(a) The city may issue bonds under Minnesota
Statutes, chapter 475, to finance the capital expenditure and improvement projects.
An election to approve up to $71,500,000 in bonds under Minnesota Statutes, section
475.58, may be held in combination with the election to authorize imposition of the tax
under subdivision 1. Whether to permit imposition of the tax and issuance of bonds
may be posed to the voters as a single question. The question must state that the sales
tax revenues are pledged to pay the bonds, but that the bonds are general obligations
and will be guaranteed by the city's property taxes. An election to approve up to an
additional $40,000,000 of bonds under Minnesota Statutes, section 475.58, may be held
in combination with the election to authorize extension of the tax under subdivision 5,
paragraph (b).new text begin An election to approve bonds under Minnesota Statutes, section 475.58,
in an amount not to exceed $139,500,000 plus an amount equal to the costs of issuance
of the bonds, may be held in combination with the election to authorize the extension of
the tax under subdivision 5, paragraph (c).
new text end

new text begin (b) new text endThe city deleted text beginmaydeleted text endnew text begin shallnew text end enter into an agreement with Olmsted County under which the
city and the county agree to jointly undertake and finance certain roadway infrastructure
improvements. The agreement deleted text beginmaydeleted text endnew text begin shallnew text end provide that the city will make available to the
county a portion of the sales tax revenues collected pursuant to the authority granted in
this section and the bonding authority provided in this subdivision. The county may,
pursuant to the agreement, issue its general obligation bonds in a principal amount not
exceeding the amount authorized by its agreement with the city payable primarily from
the sales tax revenues from the city under the agreement. The county's bonds must be
issued in accordance with the provisions of Minnesota Statutes, chapter 475, except that
no election is required for the issuance of the bonds and the bonds are not included in
the net debt of the county.

deleted text begin (b)deleted text endnew text begin (c)new text end The issuance of bonds under this subdivision is not subject to Minnesota
Statutes, section 275.60.

deleted text begin (c)deleted text endnew text begin (d) new text end The bonds are not included in computing any debt limitation applicable to the
city, and the levy of taxes under Minnesota Statutes, section 475.61, to pay principal of
and interest on the bonds is not subject to any levy limitation.

new text begin (e) new text endThe aggregate principal amount of bonds, plus the aggregate of the taxes used
directly to pay eligible capital expenditures and improvementsnew text begin for projects listed in
subdivision 3, paragraph (a),
new text end may not exceed $111,500,000, plus an amount equal to the
costs related to issuance of the bonds.new text begin The aggregate principal amount of bonds plus the
aggregate of the taxes used directly to pay the costs of eligible projects under subdivision
3, paragraph (c), may not exceed $139,500,000 plus an amount equal to the costs of
issuance of the bonds.
new text end

deleted text begin (d)deleted text endnew text begin (f)new text end The taxes may be pledged to and used for the payment of the bonds and
any bonds issued to refund them, only if the bonds and any refunding bonds are general
obligations of the city.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by
Laws 2005, First Special Session chapter 3, article 5, section 30, is amended to read:


Subd. 5.

Termination of taxes.

(a) The taxes imposed under subdivisions 1 and
2 expire at the later of (1) December 31, 2009, or (2) when the city council determines
that sufficient funds have been received from the taxes to finance the first $71,500,000
of capital expenditures and bonds for the projects authorized in subdivision 3, including
the amount to prepay or retire at maturity the principal, interest, and premium due on any
bonds issued for the projects under subdivision 4, unless the taxes are extended as allowed
in paragraph (b). Any funds remaining after completion of the project and retirement or
redemption of the bonds shall also be used to fund the projects under subdivision 3. The
taxes imposed under subdivisions 1 and 2 may expire at an earlier time if the city so
determines by ordinance.

(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any
other contrary provision of law, ordinance, or city charter, the city of Rochester may, by
ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009,
if approved by the voters of the city at a special election in 2005 or the general election in
2006. The question put to the voters must indicate that an affirmative vote would allow
up to an additional $40,000,000 of sales tax revenues be raised and up to $40,000,000
of bonds to be issued above the amount authorized in the June 23, 1998, referendum for
the projects specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are
extended under this paragraph, the taxes expire when the city council determines that
sufficient funds have been received from the taxes to finance the projects and to prepay
or retire at maturity the principal, interest, and premium due on any bonds issued for the
projects under subdivision 4. Any funds remaining after completion of the project and
retirement or redemption of the bonds may be placed in the general fund of the city.

new text begin (c) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any
other contrary provision of law, ordinance, or city charter, the city of Rochester may, by
ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond the date the city
council determines that sufficient funds have been received from the taxes to finance
$111,500,000 of expenditures and bonds for the projects authorized in subdivision 3,
paragraph (a), plus an amount equal to the costs of issuance of the bonds and including
the amount to prepay or retire at maturity the principal, interest, and premiums due on
any bonds issued for the projects under subdivision 4, paragraph (a), if approved by the
voters of the city at the general election in 2012. If the election to authorize the additional
$139,500,000 of bonds plus an amount equal to the costs of the issuance of the bonds is
placed on the general election ballot in 2012, the city may continue to collect the taxes
authorized in subdivisions 1 and 2 until December 31, 2012. The question put to the
voters must indicate that an affirmative vote would allow sales tax revenues be raised for
an extended period of time and an additional $139,500,000 of bonds plus an amount
equal to the costs of issuance of the bonds, to be issued above the amount authorized in
the previous elections required under paragraphs (a) and (b) for the projects and amounts
specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are extended
under this paragraph, the taxes expire when the city council determines that $139,500,000
has been received from the taxes to finance the projects plus an amount sufficient to
prepay or retire at maturity the principal, interest, and premium due on any bonds issued
for the projects under subdivision 4, including any bonds issued to refund the bonds. Any
funds remaining after completion of the projects and retirement or redemption of the
bonds may be placed in the general fund of the city.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after compliance by the
governing body of the city of Rochester with Minnesota Statutes, section 645.021,
subdivision 3.
new text end

Sec. 8.

Laws 2008, chapter 366, article 7, section 19, subdivision 3, is amended to read:


Subd. 3.

Use of revenues.

new text beginNotwithstanding Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (b),
new text endthe proceeds of the tax imposed under this section shall be
used to pay for the costs of acquisition, construction, improvement, and development of
deleted text begin adeleted text endnew text begin regional parks, bicycle trails, park land, open space, andnew text end pedestrian deleted text beginbridgedeleted text endnew text begin walkways,
as described in the city improvement plan adopted by the city council by resolution on
December 12, 2006
new text end, and land and buildings for a community and recreation center. The
total amount of revenues from the taxes in subdivisions 1 and 2 that may be used to fund
these projects is $12,000,000 plus any associated bond costs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after compliance by the
governing body of the city of Clearwater with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 9.

Laws 2010, chapter 389, article 5, section 6, subdivision 1, is amended to read:


Subdivision 1.

Authorization.

Notwithstanding Minnesota Statutes, section
297A.99, subdivisions 1, 2, and 3, or 477A.016, or any other law, ordinance, or city
charter, the city of Marshall, if imposed within deleted text begintwodeleted text endnew text begin threenew text end years of the date of final
enactment of this section, may impose any or all of the taxes described in this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10. new text beginCITY OF CLOQUET; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax. new text end

new text begin Notwithstanding Minnesota Statutes, section
297A.99, subdivision 1, 477A.016, or any other provision of law, ordinance, or city
charter, if approved by the voters pursuant to Minnesota Statutes, section 297A.99, the
city of Cloquet may impose by ordinance a sales and use tax of up to one-half of one
percent for the purposes specified in subdivision 3. Except as provided in this section, the
provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Excise tax authorized. new text end

new text begin Notwithstanding Minnesota Statutes, section
297A.99, subdivision 1, 477A.016, or any other provision of law, ordinance, or city
charter, the city of Cloquet may impose by ordinance, for the purposes specified in
subdivision 3, an excise tax of up to $20 per motor vehicle, as defined by ordinance,
purchased or acquired from any person engaged within the city in the business of selling
motor vehicles at retail.
new text end

new text begin Subd. 3. new text end

new text begin Use of revenues. new text end

new text begin Revenues received from taxes authorized by subdivisions
1 and 2 must be used by the city to pay the cost of collecting the taxes and to pay for the
following projects:
new text end

new text begin (1) $4,500,000 for construction and completion of park improvement projects,
including St. Louis River riverfront improvements; Veteran's Park construction and
improvements; improvements to the Hilltop Park soccer complex and Braun Park baseball
complex; capital equipment and building and grounds improvements at the Pine Valley
Park/Pine Valley Hockey Arena/Cloquet Area Recreation Center; and development of
pedestrian trails within the city;
new text end

new text begin (2) $5,800,00 for extension of utilities and the construction of all improvements
associated with the development of property adjacent to Highway 33 and Interstate
Highway 35, including payment of all debt service on bonds issued for these; and
new text end

new text begin (3) $6,200,000 for engineering and construction of infrastructure improvements,
including, but not limited to, storm sewer, sanitary sewer, and water in areas identified as
part of the city's comprehensive land use plan.
new text end

new text begin Authorized expenses include, but are not limited to, acquiring property and paying
construction expenses related to these improvements, and paying debt service on bonds or
other obligations issued to finance acquisition and construction of these improvements.
new text end

new text begin Subd. 4. new text end

new text begin Bonding authority. new text end

new text begin (a) The city may issue bonds under Minnesota
Statutes, chapter 475, to pay capital and administrative expenses for the improvements
described in subdivision 3 in an amount that does not exceed $16,500,000. An election to
approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin (b) The issuance of bonds under this subdivision is not subject to Minnesota Statutes,
sections 275.60 and 275.61.
new text end

new text begin (c) The debt represented by the bonds is not included in computing any debt
limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section
475.61, to pay principal of and interest on the bonds is not subject to any levy limitation.
new text end

new text begin Subd. 5. new text end

new text begin Termination of taxes. new text end

new text begin The taxes imposed under subdivisions 1 and 2
expire at the earlier of (1) 30 years, or (2) when the city council determines that the amount
of revenues received from the taxes to finance the improvements described in subdivision
3 first equals or exceeds $16,500,000, plus the additional amount needed to pay the costs
related to issuance of bonds under subdivision 4, including interest on the bonds. Any
funds remaining after completion of the project and retirement or redemption of the bonds
may be placed in the general fund of the city. The taxes imposed under subdivisions 1 and
2 may expire at an earlier time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text beginThis section is effective the day after the governing body of
the city of Cloquet and its chief clerical officer timely comply with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
new text end

Sec. 11. new text beginCITY OF FERGUS FALLS; SALES AND USE TAX AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax. new text end

new text begin Notwithstanding Minnesota Statutes, section
297A.99, subdivision 1, or 477A.016, or any other provision of law, ordinance, or city
charter, as approved by the voters at the November 2, 2010 general election, the city
of Fergus Falls may impose by ordinance a sales and use tax of up to one-half of one
percent for the purposes specified in subdivision 2. Except as provided in this section, the
provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Use of revenues. new text end

new text begin Revenues received from taxes authorized by subdivision
1 must be used by the city of Fergus Falls to pay the cost of collecting the tax and to pay for
all or part of the costs of the acquisition and betterment of a regional community ice arena
facility. Authorized expenses include, but are not limited to, acquiring property, predesign,
design, and paying construction, furnishing, and equipment costs related to the facility and
paying debt service on bonds or other obligations issued by the Fergus Falls Port Authority
to finance the facility. The amount of revenues from the tax imposed under subdivision 1
that may be used to finance the facility and any associated costs is limited to $6,600,000.
new text end

new text begin Subd. 3. new text end

new text begin Termination of taxes. new text end

new text begin The tax imposed under this section expires when
the Fergus Falls City Council determines that sufficient funds have been received from
the taxes to finance the facility and to prepay or retire at maturity the principal, interest,
and premium due on any bonds, including refunding bonds, issued by the Fergus Falls
Port Authority for the facility. Any funds remaining after completion of the facility and
retirement or redemption of the bonds may be placed in the general fund of the city of
Fergus Falls. The tax imposed under subdivision 1 may expire at an earlier time if the
city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body
of the city of Fergus Falls and its chief clerical officer timely comply with Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 12. new text beginCITY OF HUTCHINSON; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax. new text end

new text begin Notwithstanding Minnesota Statutes, section
477A.016, or any other provision of law, ordinance, or city charter, as approved by
the voters at a referendum held at the 2010 general election, the city of Hutchinson
may impose by ordinance a sales and use tax of up to one-half of one percent for the
purposes specified in subdivision 3. Except as otherwise provided in this section,
Minnesota Statutes, section 297A.99, governs the imposition, administration, collection,
and enforcement of the tax authorized under this subdivision. Minnesota Statutes, section
297A.99, subdivision 1, paragraph (d), does not apply to this section.
new text end

new text begin Subd. 2. new text end

new text begin Excise tax authorized. new text end

new text begin Notwithstanding Minnesota Statutes, section
477A.016, or any other provision of law, ordinance, or city charter, the city of Hutchinson
may impose by ordinance, for the purposes specified in subdivision 3, an excise tax of up
to $20 per motor vehicle, as defined by ordinance, purchased or acquired from any person
engaged within the city in the business of selling motor vehicles at retail.
new text end

new text begin Subd. 3. new text end

new text begin Use of revenues. new text end

new text begin Revenues received from the taxes authorized by this
section must be used to pay the cost of collecting and administering the tax and to finance
the costs of constructing the water treatment facility and renovating the wastewater
treatment facility in the city of Hutchinson. Authorized costs include, but are not limited
to, construction and engineering costs of the projects and associated bond costs.
new text end

new text begin Subd. 4. new text end

new text begin Termination of tax. new text end

new text begin The taxes authorized under subdivisions 1 and 2
terminate at the earlier of: (1) 18 years after the date of initial imposition of the tax; or
(2) when the Hutchinson City Council determines that the amount of revenues raised is
sufficient to pay for the projects under subdivision 3, plus the amount needed to finance
the capital and administrative costs for the projects specified in subdivision 3, and to repay
or retire at maturity the principal, interest, and premium due on any bonds issued for the
projects. Any funds remaining after completion of the projects specified in subdivision
3 and retirement or redemption of the associated bonds may be placed in the general
fund of the city. The taxes imposed under subdivisions 1 and 2 may expire at an earlier
time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after compliance by the
governing body of the city of Hutchinson with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 13. new text beginCITY OF LANESBORO; SALES AND USE TAX AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorized. new text end

new text begin Notwithstanding Minnesota Statutes,
sections 297A.99, subdivision 1, and 477A.016, or any other provision of law, ordinance,
or city charter, as approved by the voters at the November 2, 2010, general election, the
city of Lanesboro may impose by ordinance a sales and use tax of up to one-half of one
percent for the purposes specified in subdivision 2. Except as provided in this section,
the provisions of Minnesota Statutes, section 297A.99, govern the imposition of the tax
authorized under this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Use of revenues. new text end

new text begin Revenues received from the tax authorized under
subdivision 1 must be used by the city of Lanesboro to pay the costs of collecting the tax
and to pay for all or a part of the improvements to city streets and utility systems, and the
betterment of city municipal buildings consisting of (i) street and utility improvements to
Calhoun Avenue, Fillmore Avenue, Kenilworth Avenue, Pleasant Street, Kirkwood Street,
Auburn Avenue, and Zenith Street, and street light replacement on State Highways 250
and 16; (ii) improvements to utility systems consisting of wastewater treatment facility
improvements and electric utility improvements to the Lanesboro High Hazard Dam; and
(iii) improvements to the Lanesboro community center, library, and city hall, including
paying debt service on bonds or other obligations issued to fund these projects under
subdivision 3. The total amount of revenues from the taxes in subdivision 1 that may be
used to fund these projects is $800,000 plus any associated bond costs.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin The city of Lanesboro may issue bonds under
Minnesota Statutes, chapter 475, to pay capital and administrative expenses related to the
projects authorized in subdivision 2. An election to approve the bonds under Minnesota
Statutes, section 475.58, is not required. The issuance of bonds under this subdivision
is not subject to Minnesota Statutes, sections 275.60 and 275.61. The bonds are not
included in computing any debt limitation applicable to the city and the levy of taxes
under Minnesota Statutes, section 475.61, to pay principal and interest on the bonds is
not subject to any levy limitation.
new text end

new text begin The aggregate principal amount of the bonds plus the aggregate of the taxes used
directly to pay costs of the projects listed in subdivision 2 may not exceed $800,000, plus
an amount equal to the costs related to issuance of the bonds and capitalized interest.
new text end

new text begin The taxes authorized in subdivision 1 may be pledged and used for payments of
the bonds and bonds issued to refund them, only if the bonds and any refunding bonds
are general obligations of the city.
new text end

new text begin Subd. 4. new text end

new text begin Termination of tax. new text end

new text begin The tax imposed under subdivision 1 expires when
the Lanesboro City Council determines that sufficient funds have been raised from the
taxes to finance the projects authorized under subdivision 2 and to prepay or retire at
maturity the principal, interest, and premium due on any bonds issued under subdivision 3.
Any funds remaining after completion of the project and retirement or redemption of the
bonds may be placed in the general fund of the city. The tax imposed under subdivision 1
may expire at an earlier time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
the city of Lanesboro and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 14. new text beginCITY OF MARSHALL; SALES AND USE TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin Notwithstanding Minnesota Statutes, section
297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city charter,
the city of Marshall, if approved by the voters at a general election held within two
years of the date of final enactment of this section, may impose the tax authorized under
subdivision 2. Two separate ballot questions must be presented to the voters, one for each
of the two facility projects named in subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Sales and use tax authorized. new text end

new text begin The city of Marshall may impose by
ordinance a sales and use tax of up to one-half of one percent for the purposes specified in
subdivision 3. The provisions of Minnesota Statutes, section 297A.99, except subdivisions
1 and 2, govern the imposition, administration, collection, and enforcement of the tax
authorized under this subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax
authorized under subdivision 2 must be used by the city of Marshall to pay the costs of
collecting and administering the sales and use tax and to pay all or part of the costs of the
new and existing facilities of the Minnesota Emergency Response and Industry Training
Center and all or part of the costs of the new facilities of the Southwest Minnesota
Regional Amateur Sports Center. Authorized expenses include, but are not limited to,
acquiring property, predesign, design, and paying construction, furnishing, and equipment
costs related to these facilities and paying debt service on bonds or other obligations issued
by the city of Marshall under subdivision 4 to finance the capital costs of these facilities.
new text end

new text begin Subd. 4. new text end

new text begin Bonds. new text end

new text begin (a) If the imposition of a sales and use tax is approved by the voters,
the city of Marshall may issue bonds under Minnesota Statutes, chapter 475, to finance all
or a portion of the costs of the facilities authorized in subdivision 3, and may issue bonds
to refund bonds previously issued. The aggregate principal amount of bonds issued under
this subdivision may not exceed $17,290,000, plus an amount to be applied to the payment
of the costs of issuing the bonds. The bonds may be paid from or secured by any funds
available to the city of Marshall, including the tax authorized under subdivision 2.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the
city of Marshall, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal and interest on the bonds, is not subject to any levy limitation. A separate
election to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 5. new text end

new text begin Termination of taxes. new text end

new text begin The tax imposed under subdivision 2 expires at the
earlier of (1) 15 years after the tax is first imposed, or (2) when the city council determines
that the amount of revenues received from the tax to pay for the capital and administrative
costs of the facilities under subdivision 3 first equals or exceeds the amount authorized to
be spent for the facilities plus the additional amount needed to pay the costs related to
issuance of the bonds under subdivision 4, including interest on the bonds. Any funds
remaining after payment of all such costs and retirement or redemption of the bonds shall
be placed in the general fund of the city. The tax imposed under subdivision 2 may expire
at an earlier time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after compliance by the
governing body of the city of Marshall with Minnesota Statutes, section 645.021,
subdivision 3.
new text end

Sec. 15. new text beginCITY OF MEDFORD; SALES AND USE TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorized. new text end

new text begin Notwithstanding Minnesota Statutes,
sections 297A.99, subdivision 1, and 477A.016, or any other provision of law, ordinance,
or city charter, if approved by the voters pursuant to Minnesota Statutes, section 297A.99,
at the next general election, the city of Medford may impose by ordinance a sales and use
tax of one-half of one percent for the purposes specified in subdivision 2. Except as
otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99,
govern the imposition, administration, collection, and enforcement of the tax authorized
under this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Use of revenues. new text end

new text begin The proceeds of the tax imposed under this section must
be used by the city of Medford to pay the costs of collecting and administering the tax
and to repay loans received from the Minnesota Public Facilities Authority since 2007
that were used to finance $4,200,000 of improvements to the city's water and wastewater
systems.
new text end

new text begin Subd. 3. new text end

new text begin Termination of taxes. new text end

new text begin The tax imposed under this section expires at the
earlier of (1) 20 years after the date the taxes are first imposed, or (2) when the Medford
City Council determines that the amount of revenues received from the tax equals or
exceeds the sum of loans made to the city by the Minnesota Public Facilities Authority
as described in subdivision 2, including interest on the loans. Any funds remaining
after completion of the repayment of the loans may be placed in the general fund of the
city. The tax imposed under subdivision 1 may expire at an earlier time if the city so
determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after compliance by the
governing body of the city of Medford with Minnesota Statutes, section 645.021,
subdivision 3.
new text end

ARTICLE 6

PROPERTY TAXES

Section 1.

Minnesota Statutes 2010, section 126C.01, subdivision 3, is amended to read:


Subd. 3.

Referendum market value.

"Referendum market value" means the market
value of all taxable property, excluding property classified as class 2, deleted text beginnoncommercial
4c(1), or
deleted text end 4c(4)new text begin, or 4c(12)new text end under section 273.13. The portion of class 2a property consisting
of the house, garage, and surrounding one acre of land of an agricultural homestead is
included in referendum market value. Any class of property, or any portion of a class of
property, that is included in the definition of referendum market value and that has a class
rate of less than one percent under section 273.13 shall have a referendum market value
equal to its net tax capacity multiplied by 100.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2012 and
thereafter.
new text end

Sec. 2.

Minnesota Statutes 2010, section 272.02, subdivision 39, is amended to read:


Subd. 39.

Economic development; public purpose.

The holding of property by a
political subdivision of the state for later resale for economic development purposes shall
be considered a public purpose in accordance with subdivision 8 for a period not to exceed
deleted text begin eightdeleted text endnew text begin tennew text end years, except that for property located in a city of 5,000 population or under that
is located outside of the metropolitan area as defined in section 473.121, subdivision 2, the
period must not exceed 15 years.

The holding of property by a political subdivision of the state for later resale (1)
which is purchased or held for housing purposes, or (2) which meets the conditions
described in section 469.174, subdivision 10, shall be considered a public purpose in
accordance with subdivision 8.

The governing body of the political subdivision which acquires property which is
subject to this subdivision shall after the purchase of the property certify to the city or
county assessor whether the property is held for economic development purposes or
housing purposes, or whether it meets the conditions of section 469.174, subdivision 10.
If the property is acquired for economic development purposes and buildings or other
improvements are constructed after acquisition of the property, and if more than one-half
of the floor space of the buildings or improvements which is available for lease to or use
by a private individual, corporation, or other entity is leased to or otherwise used by
a private individual, corporation, or other entity the provisions of this subdivision shall
not apply to the property. This subdivision shall not create an exemption from section
272.01, subdivision 2; 272.68; 273.19; or 469.040, subdivision 3; or other provision of
law providing for the taxation of or for payments in lieu of taxes for publicly held property
which is leased, loaned, or otherwise made available and used by a private person.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2011, payable
in 2012, and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2010, section 272.02, is amended by adding a subdivision
to read:


new text begin Subd. 95. new text end

new text begin Electric generation facility; personal property. new text end

new text begin (a) Notwithstanding
subdivision 9, clause (a), and section 453.54, subdivision 20, attached machinery and other
personal property that is part of a multiple reciprocating engine electric generation facility
that adds more than 20 and less than 30 megawatts of installed capacity at a site where
there is presently more than ten megawatts and fewer than 15 megawatts of installed
capacity and that meets the requirements of this subdivision is exempt from taxation and
from payments in lieu of taxation. At the time of construction, the facility must:
new text end

new text begin (1) be designed to utilize natural gas as a primary fuel;
new text end

new text begin (2) be owned and operated by a municipal power agency as defined in section
453.52, subdivision 8;
new text end

new text begin (3) be located within one mile of an existing natural gas pipeline;
new text end

new text begin (4) be designed to have black start capability and to furnish emergency backup
power service to the city in which it is located;
new text end

new text begin (5) satisfy a resource deficiency identified in an approved integrated resource plan
filed under section 216B.2422; and
new text end

new text begin (6) have received, by resolution, the approval of the governing bodies of the city
and county in which it is located for the exemption of personal property provided by
this subdivision.
new text end

new text begin (b) Construction of the facility must be commenced after December 31, 2011, and
before January 1, 2015. Property eligible for this exemption does not include (i) electric
transmission lines and interconnections or gas pipelines and interconnections appurtenant
to the property or the facility; or (ii) property located on the site on the enactment date
of this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessments in 2012, taxes
payable in 2013, and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2010, section 273.111, is amended by adding a subdivision
to read:


new text begin Subd. 17. new text end

new text begin Appeal. new text end

new text begin If an assessor denies an application for valuation under this
section, the applicant may appeal the decision to the local board of appeal and equalization
as provided under section 274.01, subdivision 1, paragraph (h).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for appeals denied after June 30,
2011.
new text end

Sec. 5.

Minnesota Statutes 2010, section 273.121, subdivision 1, is amended to read:


Subdivision 1.

Notice.

Any county assessor or city assessor having the powers of a
county assessor, valuing or classifying taxable real property shall in each year notify those
persons whose property is to be included on the assessment roll that year if the person's
address is known to the assessor, otherwise the occupant of the property. The notice shall
be in writing and shall be sent by ordinary mail at least ten days before the meeting of
the local board of appeal and equalization under section 274.01 or the review process
established under section 274.13, subdivision 1c. Upon written request by the owner of the
property, the assessor may send the notice in electronic form or by electronic mail instead
of on paper or by ordinary mail. It shall contain: (1) the market value for the current and
prior assessment, (2) deleted text beginthe limited market value under section 273.11, subdivision 1a, for
the current and prior assessment, (3)
deleted text end the qualifying amount of any improvements under
section 273.11, subdivision 16, for the current assessment, deleted text begin(4)deleted text endnew text begin (3)new text end the market value subject
to taxation after subtracting the amount of any qualifying improvements for the current
assessment, deleted text begin(5)deleted text endnew text begin (4)new text end the classification of the property for the current and prior assessment,
deleted text begin (6) a note that if the property is homestead and at least 45 years old, improvements made
to the property may be eligible for a valuation exclusion under section 273.11, subdivision
16
, (7)
deleted text endnew text begin (5)new text end the assessor's office address, and deleted text begin(8)deleted text endnew text begin (6)new text end the dates, places, and times set for the
meetings of the local board of appeal and equalization, the review process established
under section 274.13, subdivision 1c, and the county board of appeal and equalization. new text beginIf
the classification of the property has changed between the current and prior assessments, a
specific note to that effect shall be prominently listed on the statement.
new text endThe commissioner
of revenue shall specify the form of the notice. The assessor shall attach to the assessment
roll a statement that the notices required by this section have been mailed. Any assessor
who is not provided sufficient funds from the assessor's governing body to provide such
notices, may make application to the commissioner of revenue to finance such notices.
The commissioner of revenue shall conduct an investigation and, if satisfied that the
assessor does not have the necessary funds, issue a certification to the commissioner
of management and budget of the amount necessary to provide such notices. The
commissioner of management and budget shall issue a warrant for such amount and shall
deduct such amount from any state payment to such county or municipality. The necessary
funds to make such payments are hereby appropriated. Failure to receive the notice shall in
no way affect the validity of the assessment, the resulting tax, the procedures of any board
of review or equalization, or the enforcement of delinquent taxes by statutory means.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for notifications for taxes payable in
2013 and thereafter.
new text end

Sec. 6.

Minnesota Statutes 2010, section 273.13, subdivision 25, is amended to read:


Subd. 25.

Class 4.

(a) Class 4a is residential real estate containing four or more
units and used or held for use by the owner or by the tenants or lessees of the owner
as a residence for rental periods of 30 days or more, excluding property qualifying for
class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other
than hospitals exempt under section 272.02, and contiguous property used for hospital
purposes, without regard to whether the property has been platted or subdivided. The
market value of class 4a property has a class rate of 1.25 percent.

(b) Class 4b includes:

(1) residential real estate containing less than four units that does not qualify as class
4bb, other than seasonal residential recreational property;

(2) manufactured homes not classified under any other provision;

(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead
farm classified under subdivision 23, paragraph (b) containing two or three units; and

(4) unimproved property that is classified residential as determined under subdivision
33.

The market value of class 4b property has a class rate of 1.25 percent.

(c) Class 4bb includes:

(1) nonhomestead residential real estate containing one unit, other than seasonal
residential recreational property; and

(2) a single family dwelling, garage, and surrounding one acre of property on a
nonhomestead farm classified under subdivision 23, paragraph (b).

Class 4bb property has the same class rates as class 1a property under subdivision 22.

Property that has been classified as seasonal residential recreational property at
any time during which it has been owned by the current owner or spouse of the current
owner does not qualify for class 4bb.

(d) Class 4c property includes:

(1) except as provided in subdivision 22, paragraph (c), real and personal property
devoted to new text begincommercial new text endtemporary and seasonal residential occupancy for recreation
purposes, deleted text beginincluding real and personal property devoted to temporary and seasonal
residential occupancy for recreation purposes and not devoted to commercial purposes
deleted text end for
new text begin not new text endmore than 250 days in the year preceding the year of assessment. For purposes of this
clause, property is devoted to a commercial purpose on a specific day if any portion of the
property is used for residential occupancy, and a fee is charged for residential occupancy.
Class 4c property under this clause must contain three or more rental units. A "rental unit"
is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site
equipped with water and electrical hookups for recreational vehicles. deleted text beginClass 4c property
under this clause must provide recreational activities such as renting ice fishing houses,
boats and motors, snowmobiles, downhill or cross-country ski equipment; provide marina
services, launch services, or guide services; or sell bait and fishing tackle.
deleted text end A camping pad
offered for rent by a property that otherwise qualifies for class 4c under this clause is also
class 4c under this clause regardless of the term of the rental agreement, as long as the use
of the camping pad does not exceed 250 days. In order for a property to be classified deleted text beginas
class 4c, seasonal residential recreational for commercial purposes
deleted text end under this clause, new text begineither
(i) the business located on the property must provide recreational activities,
new text endat least 40
percent of the annual gross lodging receipts related to the property must be from business
conducted during 90 consecutive daysnew text begin, new text end and either deleted text begin(i)deleted text endnew text begin (A)new text end at least 60 percent of all paid
bookings by lodging guests during the year must be for periods of at least two consecutive
nights; or deleted text begin(ii)deleted text endnew text begin (B)new text end at least 20 percent of the annual gross receipts must be from charges
for deleted text beginrental of fish houses, boats and motors, snowmobiles, downhill or cross-country ski
equipment, or charges for marina services, launch services, and guide services, or the sale
of bait and fishing tackle
deleted text endnew text begin providing recreational activitiesnew text endnew text begin, or (ii) the business must contain
20 or fewer rental units, and must be located in a township or a city with a population of
2,500 or less located outside the metropolitan area, as defined under section 473.121,
subdivision 2, that contains a portion of a state trail administered by the Department of
Natural Resources
new text end. For purposes of deleted text beginthis determinationdeleted text endnew text begin item (i)(A)new text end, a paid booking of
five or more nights shall be counted as two bookings. Class 4c property deleted text beginclassified under
this clause
deleted text end also includes commercial use real property used exclusively for recreational
purposes in conjunction with other class 4c property classified under this clause and
devoted to temporary and seasonal residential occupancy for recreational purposes, up to a
total of two acres, provided the property is not devoted to commercial recreational use for
more than 250 days in the year preceding the year of assessment and is located within two
miles of the class 4c property with which it is used. deleted text beginOwners of real and personal property
devoted to temporary and seasonal residential occupancy for recreation purposes and all
or a portion of which was devoted to commercial purposes for not more than 250 days in
the year preceding the year of assessment desiring classification as class 4c,
deleted text endnew text begin In order for a
property to qualify for classification under this clause, the owner
new text end must submit a declaration
to the assessor designating the cabins or units occupied for 250 days or less in the year
preceding the year of assessment by January 15 of the assessment year. Those cabins or
units and a proportionate share of the land on which they are located must be designated
class 4c under this clause as otherwise provided. The remainder of the cabins or units and
a proportionate share of the land on which they are located will be designated as class 3a.
The owner of property desiring designation as class 4c property under this clause must
provide guest registers or other records demonstrating that the units for which class 4c
designation is sought were not occupied for more than 250 days in the year preceding the
assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar,
(3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility
operated on a commercial basis not directly related to temporary and seasonal residential
occupancy for recreation purposes does not qualify for class 4cnew text begin. For the purposes of this
paragraph, "recreational activities" means renting ice fishing houses, boats and motors,
snowmobiles, downhill or cross-country ski equipment; providing marina services, launch
services, or guide services; or selling bait and fishing tackle
new text end;

(2) qualified property used as a golf course if:

(i) it is open to the public on a daily fee basis. It may charge membership fees or
dues, but a membership fee may not be required in order to use the property for golfing,
and its green fees for golfing must be comparable to green fees typically charged by
municipal courses; and

(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).

A structure used as a clubhouse, restaurant, or place of refreshment in conjunction
with the golf course is classified as class 3a property;

(3) real property up to a maximum of three acres of land owned and used by a
nonprofit community service oriented organization and not used for residential purposes
on either a temporary or permanent basis, provided that:

(i) the property is not used for a revenue-producing activity for more than six days
in the calendar year preceding the year of assessment; or

(ii) the organization makes annual charitable contributions and donations at least
equal to the property's previous year's property taxes and the property is allowed to be
used for public and community meetings or events for no charge, as appropriate to the
size of the facility.

For purposes of this clause,

(A) "charitable contributions and donations" has the same meaning as lawful
gambling purposes under section 349.12, subdivision 25, excluding those purposes
relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;

(B) "property taxes" excludes the state general tax;

(C) a "nonprofit community service oriented organization" means any corporation,
society, association, foundation, or institution organized and operated exclusively for
charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
Revenue Code; and

(D) "revenue-producing activities" shall include but not be limited to property or that
portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
insurance business, or office or other space leased or rented to a lessee who conducts a
for-profit enterprise on the premises.

Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The use
of the property for social events open exclusively to members and their guests for periods
of less than 24 hours, when an admission is not charged nor any revenues are received by
the organization shall not be considered a revenue-producing activity.

The organization shall maintain records of its charitable contributions and donations
and of public meetings and events held on the property and make them available upon
request any time to the assessor to ensure eligibility. An organization meeting the
requirement under item (ii) must file an application by May 1 with the assessor for
eligibility for the current year's assessment. The commissioner shall prescribe a uniform
application form and instructions;

(4) postsecondary student housing of not more than one acre of land that is owned by
a nonprofit corporation organized under chapter 317A and is used exclusively by a student
cooperative, sorority, or fraternity for on-campus housing or housing located within two
miles of the border of a college campus;

(5) (i) manufactured home parks as defined in section 327.14, subdivision 3,
excluding manufactured home parks described in section 273.124, subdivision 3a, and (ii)
manufactured home parks as defined in section 327.14, subdivision 3, that are described in
section 273.124, subdivision 3a;

(6) real property that is actively and exclusively devoted to indoor fitness, health,
social, recreational, and related uses, is owned and operated by a not-for-profit corporation,
and is located within the metropolitan area as defined in section 473.121, subdivision 2;

(7) a leased or privately owned noncommercial aircraft storage hangar not exempt
under section 272.01, subdivision 2, and the land on which it is located, provided that:

(i) the land is on an airport owned or operated by a city, town, county, Metropolitan
Airports Commission, or group thereof; and

(ii) the land lease, or any ordinance or signed agreement restricting the use of the
leased premise, prohibits commercial activity performed at the hangar.

If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must
be filed by the new owner with the assessor of the county where the property is located
within 60 days of the sale;

(8) a privately owned noncommercial aircraft storage hangar not exempt under
section 272.01, subdivision 2, and the land on which it is located, provided that:

(i) the land abuts a public airport; and

(ii) the owner of the aircraft storage hangar provides the assessor with a signed
agreement restricting the use of the premises, prohibiting commercial use or activity
performed at the hangar; and

(9) residential real estate, a portion of which is used by the owner for homestead
purposes, and that is also a place of lodging, if all of the following criteria are met:

(i) rooms are provided for rent to transient guests that generally stay for periods
of 14 or fewer days;

(ii) meals are provided to persons who rent rooms, the cost of which is incorporated
in the basic room rate;

(iii) meals are not provided to the general public except for special events on fewer
than seven days in the calendar year preceding the year of the assessment; and

(iv) the owner is the operator of the property.

The market value subject to the 4c classification under this clause is limited to five rental
units. Any rental units on the property in excess of five, must be valued and assessed as
class 3a. The portion of the property used for purposes of a homestead by the owner must
be classified as class 1a property under subdivision 22;

(10) real property up to a maximum of three acres and operated as a restaurant
as defined under section 157.15, subdivision 12, provided it: (A) is located on a lake
as defined under section 103G.005, subdivision 15, paragraph (a), clause (3); and (B)
is either devoted to commercial purposes for not more than 250 consecutive days, or
receives at least 60 percent of its annual gross receipts from business conducted during
four consecutive months. Gross receipts from the sale of alcoholic beverages must be
included in determining the property's qualification under subitem (B). The property's
primary business must be as a restaurant and not as a bar. Gross receipts from gift shop
sales located on the premises must be excluded. Owners of real property desiring 4c
classification under this clause must submit an annual declaration to the assessor by
February 1 of the current assessment year, based on the property's relevant information for
the preceding assessment year; deleted text beginand
deleted text end

(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used
as a marina, as defined in section 86A.20, subdivision 5, which is made accessible to
the public and devoted to recreational use for marina services. The marina owner must
annually provide evidence to the assessor that it provides services, including lake or river
access to the public by means of an access ramp or other facility that is either located on
the property of the marina or at a publicly owned site that abuts the property of the marina.
No more than 800 feet of lakeshore may be included in this classification. Buildings used
in conjunction with a marina for marina services, including but not limited to buildings
used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing
tackle, are classified as class 3a propertynew text begin; and
new text end

new text begin (12) real and personal property devoted to noncommercial temporary and seasonal
residential occupancy for recreation purposes
new text end.

Class 4c property has a class rate of 1.5 percent of market value, except that (i)
each parcel of new text beginnoncommercial new text endseasonal residential recreational property deleted text beginnot used for
commercial purposes
deleted text endnew text begin under clause (12) new text end has the same class rates as class 4bb property, (ii)
manufactured home parks assessed under clause (5), item (i), have the same class rate
as class 4b property, and the market value of manufactured home parks assessed under
clause (5), item (ii), has the same class rate as class 4d property if more than 50 percent
of the lots in the park are occupied by shareholders in the cooperative corporation or
association and a class rate of one percent if 50 percent or less of the lots are so occupied,
(iii) commercial-use seasonal residential recreational property and marina recreational
land as described in clause (11), has a class rate of one percent for the first $500,000 of
market value, and 1.25 percent for the remaining market value, (iv) the market value of
property described in clause (4) has a class rate of one percent, (v) the market value of
property described in clauses (2), (6), and (10) has a class rate of 1.25 percent, and (vi)
that portion of the market value of property in clause (9) qualifying for class 4c property
has a class rate of 1.25 percent.

(e) Class 4d property is qualifying low-income rental housing certified to the assessor
by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion
of the units in the building qualify as low-income rental housing units as certified under
section 273.128, subdivision 3, only the proportion of qualifying units to the total number
of units in the building qualify for class 4d. The remaining portion of the building shall be
classified by the assessor based upon its use. Class 4d also includes the same proportion of
land as the qualifying low-income rental housing units are to the total units in the building.
For all properties qualifying as class 4d, the market value determined by the assessor must
be based on the normal approach to value using normal unrestricted rents.

Class 4d property has a class rate of 0.75 percent.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2012 and
thereafter.
new text end

Sec. 7.

Minnesota Statutes 2010, section 273.13, subdivision 34, is amended to read:


Subd. 34.

Homestead of disabled veterannew text begin or family caregivernew text end.

(a) All or a portion
of the market value of property owned by a veteran deleted text beginor by the veteran and thedeleted text end new text beginand serving
as the
new text endveteran's deleted text beginspouse qualifying fordeleted text end homestead deleted text beginclassification under subdivision 22 or
23
deleted text endnew text begin under this sectionnew text end is excluded in determining the property's taxable market value if
deleted text begin it serves asdeleted text end the deleted text beginhomestead of a militarydeleted text end veterandeleted text begin, as defined in section 197.447, whodeleted text end has
a service-connected disability of 70 percent or morenew text begin as certified by the United States
Department of Veterans Affairs
new text end. To qualify for exclusion under this subdivision, the
veteran must have been honorably discharged from the United States armed forces, as
indicated by United States Government Form DD214 or other official military discharge
papersdeleted text begin, and must be certified by the United States Veterans Administration as having a
service-connected disability
deleted text end.

(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is
excluded, except as provided in clause (2); and

(2) for a total (100 percent) and permanent disability, $300,000 of market value is
excluded.

(c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the
spouse holds the legal or beneficial title to the homestead and permanently resides there,
the exclusion shall carry over to the benefit of the veteran's spouse for deleted text beginone additional
assessment year
deleted text endnew text begin the current taxes payable year and for five additional taxes payable yearsnew text end
or until such time as the spousenew text begin remarries, ornew text end sells, transfers, or otherwise disposes of the
property, whichever comes first.new text begin Qualification under this paragraph requires an annual
application under paragraph (h).
new text end

new text begin (d) If the spouse of a member of any branch or unit of the United States armed
forces who dies due to a service-connected cause while serving honorably in active
service, as indicated on United States Government Form DD1300 or DD2064, holds
the legal or beneficial title to a homestead and permanently resides there, the spouse is
entitled to the benefit described in paragraph (b), clause (2), for five taxes payable years,
or until such time as the spouse remarries or sells, transfers, or otherwise disposes of the
property, whichever comes first.
new text end

new text begin (e) If a veteran meets the disability criteria of paragraph (a) but does not own
property classified as homestead in the state of Minnesota, then the homestead of the
veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran
would otherwise qualify for under paragraph (b).
new text end

deleted text begin (d)deleted text endnew text begin (f)new text end In the case of an agricultural homestead, only the portion of the property
consisting of the house and garage and immediately surrounding one acre of land qualifies
for the valuation exclusion under this subdivision.

deleted text begin (e)deleted text endnew text begin (g)new text end A property qualifying for a valuation exclusion under this subdivision is not
eligible for the deleted text begincredit under section 273.1384, subdivision 1deleted text endnew text begin market value exclusion under
subdivision 35
new text end, or classification under subdivision 22, paragraph (b).

deleted text begin (f)deleted text endnew text begin (h)new text end To qualify for a valuation exclusion under this subdivision a property owner
must apply to the assessor by July 1 of each assessment year, except that an annual
reapplication is not required once a property has been accepted for a valuation exclusion
under new text beginparagraph (a) and qualifies for the benefit described in new text endparagraph (b), clause (2), and
the property continues to qualify until there is a change in ownership.new text begin For an application
received after July 1 of any calendar year, the exclusion shall become effective for the
following assessment year.
new text end

new text begin (i) A first-time application by a qualifying spouse for the market value exclusion
under paragraph (d) may be made any time within two years of the death of the service
member.
new text end

new text begin (j) For purposes of this subdivision:
new text end

new text begin (1) "active service" has the meaning given in section 190.05;
new text end

new text begin (2) "own" means that the person's name is present as an owner on the property deed;
new text end

new text begin (3) "primary family caregiver" means a person who is approved by the secretary of
the United States Department of Veterans Affairs for assistance as the primary provider
of personal care services for an eligible veteran under the Program of Comprehensive
Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G;
and
new text end

new text begin (4) "veteran" has the meaning given the term in section 197.447.
new text end

new text begin (k) The purpose of this provision of law providing a level of homestead property tax
relief for gravely disabled veterans, their primary family caregivers, and their surviving
spouses is to help ease the burdens of war for those among our state's citizens who bear
those burdens most heavily.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin (a) This section is effective for taxes payable in 2012 and
thereafter, and applies to homesteads that initially qualified for the exclusion for taxes
payable in 2009 and thereafter.
new text end

new text begin (b) A qualifier under paragraph (c) that would have been eligible for a market value
exclusion under this section for taxes payable in 2011, if the change under this section had
been effective for that year, shall be eligible to receive the benefit of the exclusion for the
remaining number of total taxes payable years provided under paragraph (c).
new text end

Sec. 8.

Minnesota Statutes 2010, section 274.01, subdivision 1, is amended to read:


Subdivision 1.

Ordinary board; meetings, deadlines, grievances.

(a) The town
board of a town, or the council or other governing body of a city, is the board of appeal
and equalization except (1) in cities whose charters provide for a board of equalization or
(2) in any city or town that has transferred its local board of review power and duties to
the county board as provided in subdivision 3. The county assessor shall fix a day and
time when the board or the board of equalization shall meet in the assessment districts
of the county. Notwithstanding any law or city charter to the contrary, a city board of
equalization shall be referred to as a board of appeal and equalization. On or before
February 15 of each year the assessor shall give written notice of the time to the city or
town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings
must be held between April 1 and May 31 each yearnew text begin, provided that the board may review
appeals of denials of green acres treatment as provided in paragraph (h) at any time
new text end.
The clerk shall give published and posted notice of the meeting at least ten days before
the date of the meeting.

The board shall meet at the office of the clerk to review the assessment and
classification of property in the town or city. No changes in valuation or classification
which are intended to correct errors in judgment by the county assessor may be made by
the county assessor after the board has adjourned in those cities or towns that hold a
local board of review; however, corrections of errors that are merely clerical in nature or
changes that extend homestead treatment to property are permitted after adjournment until
the tax extension date for that assessment year. The changes must be fully documented and
maintained in the assessor's office and must be available for review by any person. A copy
of the changes made during this period in those cities or towns that hold a local board of
review must be sent to the county board no later than December 31 of the assessment year.

(b) The board shall determine whether the taxable property in the town or city has
been properly placed on the list and properly valued by the assessor. If real or personal
property has been omitted, the board shall place it on the list with its market value, and
correct the assessment so that each tract or lot of real property, and each article, parcel,
or class of personal property, is entered on the assessment list at its market value. No
assessment of the property of any person may be raised unless the person has been
duly notified of the intent of the board to do so. On application of any person feeling
aggrieved, the board shall review the assessment or classification, or both, and correct
it as appears just. The board may not make an individual market value adjustment or
classification change that would benefit the property if the owner or other person having
control over the property has refused the assessor access to inspect the property and the
interior of any buildings or structures as provided in section 273.20. A board member
shall not participate in any actions of the board which result in market value adjustments
or classification changes to property owned by the board member, the spouse, parent,
stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew,
or niece of a board member, or property in which a board member has a financial interest.
The relationship may be by blood or marriage.

(c) A local board may reduce assessments upon petition of the taxpayer but the total
reductions must not reduce the aggregate assessment made by the county assessor by more
than one percent. If the total reductions would lower the aggregate assessments made by
the county assessor by more than one percent, none of the adjustments may be made. The
assessor shall correct any clerical errors or double assessments discovered by the board
without regard to the one percent limitation.

(d) A local board does not have authority to grant an exemption or to order property
removed from the tax rolls.

(e) A majority of the members may act at the meeting, and adjourn from day to day
until they finish hearing the cases presented. The assessor shall attend, with the assessment
books and papers, and take part in the proceedings, but must not vote. The county assessor,
or an assistant delegated by the county assessor shall attend the meetings. The board shall
list separately, on a form appended to the assessment book, all omitted property added
to the list by the board and all items of property increased or decreased, with the market
value of each item of property, added or changed by the board, placed opposite the item.
The county assessor shall enter all changes made by the board in the assessment book.

(f) Except as provided in subdivision 3, if a person fails to appear in person, by
counsel, or by written communication before the board after being duly notified of the
board's intent to raise the assessment of the property, or if a person feeling aggrieved by an
assessment or classification fails to apply for a review of the assessment or classification,
the person may not appear before the county board of appeal and equalization for a review
of the assessment or classification. This paragraph does not apply if an assessment was
made after the local board meeting, as provided in section 273.01, or if the person can
establish not having received notice of market value at least five days before the local
board meeting.

(g) The local board must complete its work and adjourn within 20 days from the
time of convening stated in the notice of the clerk, unless a longer period is approved by
the commissioner of revenue. No action taken after that date is valid. All complaints
about an assessment or classification made after the meeting of the board must be heard
and determined by the county board of equalization. A nonresident may, at any time,
before the meeting of the board file written objections to an assessment or classification
with the county assessor. The objections must be presented to the board at its meeting by
the county assessor for its consideration.

new text begin (h) The local board may, but is not required to, review appeals from property owners
of denials by assessors of applications for valuation under section 273.111. If it intends
to exercise the authority provided in this paragraph, the board must pass a resolution
stating that it will do so, and must then review all such appeals until it passes a subsequent
resolution stating that it will not review such appeals.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for appeals denied after June 30,
2011.
new text end

Sec. 9.

Minnesota Statutes 2010, section 275.025, subdivision 1, is amended to read:


Subdivision 1.

Levy amount.

The state general levy is levied against
commercial-industrial property and seasonal residential recreational property, as defined
in this section. The state general levy base amount new text beginfor commercial-industrial property
new text endis deleted text begin$592,000,000deleted text endnew text begin $739,000,000new text end for taxes payable in deleted text begin2002deleted text endnew text begin 2012. The state general
levy base amount for seasonal recreational property is $40,600,000 for taxes payable
in 2012
new text end. For taxes payable in deleted text beginsubsequent yearsdeleted text endnew text begin 2013new text end, deleted text beginthedeleted text endnew text begin eachnew text end levy base amount
is increased deleted text begineach yeardeleted text end by multiplying the levy base amount for deleted text beginthe prior yeardeleted text endnew text begin taxes
payable in 2012
new text end by the sum of one plus the rate of increase, if any, in the implicit
price deflator for government consumption expenditures and gross investment for
state and local governments prepared by the Bureau of Economic Analysts of the
United States Department of Commerce for the 12-month period ending March 31
deleted text begin of the year prior to the year the taxes are payabledeleted text endnew text begin, 2012.new text endnew text begin For taxes payable in 2014
and 2015, the state general levy is $743,000,000 for commercial-industrial property
and $40,500,000 for seasonal residential recreational property. For taxes payable in
2016, the state general levy is $668,700,000 for commercial-industrial property and
$36,450,000 for seasonal residential recreational property. For taxes payable in 2017, the
state general levy is $594,400,000 for commercial-industrial property and $32,400,000
for seasonal residential recreational property. For taxes payable in 2018, the state
general levy is $520,100,000 for commercial-industrial property and $28,350,000
for seasonal residential recreational property. For taxes payable in 2019, the state
general levy is $445,800,000 for commercial-industrial property and $24,300,000
for seasonal residential recreational property. For taxes payable in 2020, the state
general levy is $371,500,000 for commercial-industrial property and $20,250,000
for seasonal residential recreational property. For taxes payable in 2021, the state
general levy is $297,200,000 for commercial-industrial property and $16,200,000 for
seasonal residential recreational property. For taxes payable in 2022, the state general
levy is $222,900,000 for commercial-industrial property and $12,150,000 for seasonal
residential recreational property. For taxes payable in 2023, the state general levy is
$148,600,000 for commercial-industrial property and $8,100,000 for seasonal residential
recreational property. For taxes payable in 2024, the state general levy is $74,300,000
for commercial-industrial property and $4,050,000 for seasonal residential recreational
property
new text end. The tax under this section is not treated as a local tax rate under section 469.177
and is not the levy of a governmental unit under chapters 276A and 473F.

The commissioner shall increase or decrease the preliminary or final rate for a year
as necessary to account for errors and tax base changes that affected a preliminary or final
rate for either of the two preceding years. Adjustments are allowed to the extent that the
necessary information is available to the commissioner at the time the rates for a year must
be certified, and for the following reasons:

(1) an erroneous report of taxable value by a local official;

(2) an erroneous calculation by the commissioner; and

(3) an increase or decrease in taxable value for commercial-industrial or seasonal
residential recreational property reported on the abstracts of tax lists submitted under
section 275.29 that was not reported on the abstracts of assessment submitted under
section 270C.89 for the same year.

The commissioner may, but need not, make adjustments if the total difference in the tax
levied for the year would be less than $100,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2012 and
thereafter.
new text end

Sec. 10.

Minnesota Statutes 2010, section 275.025, subdivision 3, is amended to read:


Subd. 3.

Seasonal residential recreational tax capacity.

For the purposes of this
section, "seasonal residential recreational tax capacity" means the tax capacity of tier III
of class 1c under section 273.13, subdivision 22, and all class 4c(1) deleted text beginanddeleted text endnew text begin,new text end 4c(3)(ii)new text begin, and
4c(12)
new text end property under section 273.13, subdivision 25, except that the first $76,000 of
market value of each noncommercial class deleted text begin4c(1)deleted text endnew text begin 4c(12)new text end property has a tax capacity for this
purpose equal to 40 percent of its tax capacity under section 273.13.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2012 and
thereafter.
new text end

Sec. 11.

Minnesota Statutes 2010, section 275.025, subdivision 4, is amended to read:


Subd. 4.

Apportionment and levy of state general tax.

deleted text beginNinety-five percent ofdeleted text end The
state general tax must be levied by applying a uniform rate to all commercial-industrial tax
capacity and deleted text beginfive percent of the state general tax must be levied by applyingdeleted text end a uniform
rate to all seasonal residential recreational tax capacity. On or before October 1 each
year, the commissioner of revenue shall certify the preliminary state general levy rates to
each county auditor that must be used to prepare the notices of proposed property taxes
for taxes payable in the following year. By January 1 of each year, the commissioner
shall certify the final state general levy deleted text beginratedeleted text endnew text begin ratesnew text end to each county auditor that shall be
used in spreading taxes.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2012 and
thereafter.
new text end

Sec. 12.

Minnesota Statutes 2010, section 275.70, subdivision 5, is amended to read:


Subd. 5.

Special levies.

"Special levies" means those portions of ad valorem taxes
levied by a local governmental unit for the following purposes or in the following manner:

(1) to pay the costs of the principal and interest on bonded indebtedness or to
reimburse for the amount of liquor store revenues used to pay the principal and interest
due on municipal liquor store bonds in the year preceding the year for which the levy
limit is calculated;

(2) to pay the costs of principal and interest on certificates of indebtedness issued for
any corporate purpose except for the following:

(i) tax anticipation or aid anticipation certificates of indebtedness;

(ii) certificates of indebtedness issued under sections 298.28 and 298.282;

(iii) certificates of indebtedness used to fund current expenses or to pay the costs of
extraordinary expenditures that result from a public emergency; or

(iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an
insufficiency in other revenue sources, provided that nothing in this subdivision limits the
special levy authorized under section 475.755;

(3) to provide for the bonded indebtedness portion of payments made to another
political subdivision of the state of Minnesota;

(4) to fund payments made to the Minnesota State Armory Building Commission
under section 193.145, subdivision 2, to retire the principal and interest on armory
construction bonds;

(5) property taxes approved by voters which are levied against the referendum
market value as provided under section 275.61;

(6) to fund matching requirements needed to qualify for federal or state grants or
programs to the extent that either (i) the matching requirement exceeds the matching
requirement in calendar year 2001, or (ii) it is a new matching requirement that did not
exist prior to 2002;

(7) to pay the expenses reasonably and necessarily incurred in preparing for or
repairing the effects of natural disaster including the occurrence or threat of widespread
or severe damage, injury, or loss of life or property resulting from natural causes, in
accordance with standards formulated by the Emergency Services Division of the state
Department of Public Safety, as allowed by the commissioner of revenue under section
275.74, subdivision 2;

(8) pay amounts required to correct an error in the levy certified to the county
auditor by a city or county in a levy year, but only to the extent that when added to the
preceding year's levy it is not in excess of an applicable statutory, special law or charter
limitation, or the limitation imposed on the governmental subdivision by sections 275.70
to 275.74 in the preceding levy year;

(9) to pay an abatement under section 469.1815;

(10) to pay any costs attributable to increases in the employer contribution rates
under chapter 353, or locally administered pension plans, that are effective after June
30, 2001;

(11) to pay the operating or maintenance costs of a county jail as authorized in
section 641.01 or 641.262, or of a correctional facility as defined in section 241.021,
subdivision 1
, paragraph (f), to the extent that the county can demonstrate to the
commissioner of revenue that the amount has been included in the county budget as
a direct result of a rule, minimum requirement, minimum standard, or directive of the
Department of Corrections, or to pay the operating or maintenance costs of a regional jail
as authorized in section 641.262. For purposes of this clause, a district court order is
not a rule, minimum requirement, minimum standard, or directive of the Department of
Corrections. If the county utilizes this special levy, except to pay operating or maintenance
costs of a new regional jail facility under sections 641.262 to 641.264 which will not
replace an existing jail facility, any amount levied by the county in the previous levy year
for the purposes specified under this clause and included in the county's previous year's
levy limitation computed under section 275.71, shall be deducted from the levy limit
base under section 275.71, subdivision 2, when determining the county's current year
levy limitation. The county shall provide the necessary information to the commissioner
of revenue for making this determination;

(12) to pay for operation of a lake improvement district, as authorized under section
103B.555. If the county utilizes this special levy, any amount levied by the county in the
previous levy year for the purposes specified under this clause and included in the county's
previous year's levy limitation computed under section 275.71 shall be deducted from
the levy limit base under section 275.71, subdivision 2, when determining the county's
current year levy limitation. The county shall provide the necessary information to the
commissioner of revenue for making this determination;

(13) to repay a state or federal loan used to fund the direct or indirect required
spending by the local government due to a state or federal transportation project or other
state or federal capital project. This authority may only be used if the project is not a
local government initiative;

(14) to pay for court administration costs as required under section 273.1398,
subdivision 4b
, less the (i) county's share of transferred fines and fees collected by the
district courts in the county for calendar year 2001 and (ii) the aid amount certified to be
paid to the county in 2004 under section 273.1398, subdivision 4c; however, for taxes
levied to pay for these costs in the year in which the court financing is transferred to the
state, the amount under this clause is limited to the amount of aid the county is certified to
receive under section 273.1398, subdivision 4a;

(15) to fund a police or firefighters relief association as required under section 69.77
to the extent that the required amount exceeds the amount levied for this purpose in 2001;

(16) for purposes of a storm sewer improvement district under section 444.20;

(17) to pay for the maintenance and support of a city or county society for the
prevention of cruelty to animals under section 343.11, but not to exceed in any year
$4,800 or the sum of $1 per capita based on the county's or city's population as of the most
recent federal census, whichever is greater. If the city or county uses this special levy, any
amount levied by the city or county in the previous levy year for the purposes specified
in this clause and included in the city's or county's previous year's levy limit computed
under section 275.71, must be deducted from the levy limit base under section 275.71,
subdivision 2
, in determining the city's or county's current year levy limit;

(18) for counties, to pay for the increase in their share of health and human service
costs caused by reductions in federal health and human services grants effective after
September 30, 2007;

(19) for a city, for the costs reasonably and necessarily incurred for securing,
maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by
the commissioner of revenue under section 275.74, subdivision 2. A city must have either
(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in
the city or in a zip code area of the city that is at least 50 percent higher than the average
foreclosure rate in the metropolitan area, as defined in section 473.121, subdivision 2,
to use this special levy. For purposes of this paragraph, "foreclosure rate" means the
number of foreclosures, as indicated by sheriff sales records, divided by the number of
households in the city in 2007;

(20) for a city, for the unreimbursed costs of redeployed traffic-control agents and
lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified
to the Federal Highway Administration;

(21) to pay costs attributable to wages and benefits for sheriff, police, and fire
personnel. If a local governmental unit did not use this special levy in the previous year its
levy limit base under section 275.71 shall be reduced by the amount equal to the amount it
levied for the purposes specified in this clause in the previous year;

(22) an amount equal to any reductions in the certified aids or credit reimbursements
payable under sections 477A.011 to 477A.014, and section 273.1384, due to unallotment
under section 16A.152 or reductions under another provision of law. The amount of the
levy allowed under this clause for each year is limited to the amount unallotted or reduced
from the aids and credit reimbursements certified for payment in the year following the
calendar year in which the tax levy is certified unless the unallotment or reduction amount
is not known by September 1 of the levy certification year, and the local government has
not adjusted its levy under section 275.065, subdivision 6, or 275.07, subdivision 6, in
which case that unallotment or reduction amount may be levied in the following year;

(23) to pay for the difference between one-half of the costs of confining sex offenders
undergoing the civil commitment process and any state payments for this purpose pursuant
to section 253B.185, subdivision 5;

(24) for a county to pay the costs of the first year of maintaining and operating a new
facility or new expansion, either of which contains courts, corrections, dispatch, criminal
investigation labs, or other public safety facilities and for which all or a portion of the
funding for the site acquisition, building design, site preparation, construction, and related
equipment was issued or authorized prior to the imposition of levy limits in 2008. The
levy limit base shall then be increased by an amount equal to the new facility's first full
year's operating costs as described in this clause; deleted text beginand
deleted text end

(25) for the estimated amount of reduction to market value credit reimbursements
under section 273.1384 for credits payable in the year in which the levy is payabledeleted text begin.deleted text endnew text begin, except
for a reduction due to the repeal of section 273.1384, subdivision 1; and
new text end

new text begin (26) for the reduction in the county share of payments to the county under sections
97A.061 and 477A.11 to 477A.17 between payments certified in calendar year 2011 and
the estimated amount of the county share in the year in which the levy is payable provided
the reduction is at least one percent of the county's total payable 2011 certified levy.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2011 and 2012.
new text end

Sec. 13.

Minnesota Statutes 2010, section 275.71, subdivision 2, is amended to read:


Subd. 2.

Levy limit base.

(a) The levy limit base for a local governmental unit for
taxes levied in 2008 is its levy aid base from the previous year, subject to any adjustments
under section 275.72. For taxes levied in 2009 deleted text beginand 2010deleted text endnew text begin through 2012new text end, the levy limit base
for a local governmental unit is its adjusted levy limit base in the previous year, subject
to any adjustments under section 275.72.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2011 and 2012.
new text end

Sec. 14.

Minnesota Statutes 2010, section 275.71, subdivision 4, is amended to read:


Subd. 4.

Adjusted levy limit base.

new text begin(a) new text end For taxes levied in 2008 through deleted text begin2010deleted text endnew text begin 2012new text end,
the adjusted levy limit base is equal to the levy limit base computed under subdivision 2
or section 275.72, multiplied by:

(1) one plus the percentage growth in the implicit price deflator, but the percentage
shall not be less than zero or exceed 3.9 percent;

(2) one plus a percentage equal to 50 percent of the percentage increase in the number
of households, if any, for the most recent 12-month period for which data is available; and

(3) one plus a percentage equal to 50 percent of the percentage increase in the
taxable market value of the jurisdiction due to new construction of class 3 property, as
defined in section 273.13, subdivision 4, except for state-assessed utility and railroad
property, for the most recent year for which data is available.

new text begin (b) If a city decertifies a tax increment finance district in the year in which the levy is
set, the base amount determined under paragraph (a) is increased by an amount equal to
the city's current year tax rate multiplied by the retained captured value for the district for
the year prior to the year in which the levy is set, as reported on the TIF supplement to
the abstract of tax lists.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2011 and 2012.
new text end

Sec. 15.

Minnesota Statutes 2010, section 275.71, subdivision 5, is amended to read:


Subd. 5.

Property tax levy limit.

(a) For taxes levied in 2008 through deleted text begin2010deleted text endnew text begin 2012new text end,
the property tax levy limit for a local governmental unit is equal to its adjusted levy limit
base determined under subdivision 4 plus any additional levy authorized under section
275.73, which is levied against net tax capacity, reduced by the sum of (i) the total amount
of aids and reimbursements that the local governmental unit is certified to receive under
sections 477A.011 to 477A.014, (ii) taconite aids under sections 298.28 and 298.282
including any aid which was required to be placed in a special fund for expenditure in
the next succeeding year, (iii) estimated payments to the local governmental unit under
section 272.029, adjusted for any error in estimation in the preceding year, and (iv) aids
under section 477A.16.

(b) If an aid, payment, or other amount used in paragraph (a) to reduce a local
government unit's levy limit is reduced by an unallotment under section 16A.152, the
amount of the aid, payment, or other amount prior to the unallotment is used in the
computations in paragraph (a). In order for a local government unit to levy outside of its
limit to offset the reduction in revenues attributable to an unallotment, it must do so under,
and to the extent authorized by, a special levy authorization.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2011 and 2012.
new text end

Sec. 16.

new text begin [275.761] MAINTENANCE OF EFFORT REQUIREMENTS
SUSPENDED.
new text end

new text begin (a) Notwithstanding any law to the contrary and except as provided in paragraphs
(b) and (c), all maintenance of effort requirements for counties, including but not limited
to those under sections 116L.872, 134.34, 245.4835, 245.4932, 245.714, 256F.10, and
256F.13, are suspended.
new text end

new text begin (b) This section does not permit a county to suspend compliance with maintenance
of effort requirements to the extent that the suspension would:
new text end

new text begin (1) require the state to expend additional money or incur additional costs; or
new text end

new text begin (2) cause a reduction in the receipt by the state or the county of federal funds.
new text end

new text begin (c) The commissioner of management and budget may determine the maintenance
of effort requirements that are not permitted, in whole or in part, to be suspended under
paragraph (b). The commissioner shall publish these determinations on the department's
Web site and no county may suspend compliance with a maintenance of effort requirement
that the commissioner determines is not subject to suspension.
new text end

new text begin (d) Notwithstanding any law to the contrary, all statutory and home rule charter cities
are exempt from the maintenance of effort requirements under section 134.34.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for maintenance of effort
requirements in calendar years 2012 and 2013.
new text end

Sec. 17. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, section 275.025, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2024, payable
in 2025, and thereafter.
new text end

ARTICLE 7

AIDS, CREDITS, PAYMENTS, AND REFUNDS

Section 1.

Minnesota Statutes 2010, section 88.49, subdivision 5, is amended to read:


Subd. 5.

Cancellation.

Upon the failure of the owner faithfully to fulfill and
perform such contract or any provision thereof, or any requirement of sections 88.47 to
88.53, or any rule adopted by the commissioner thereunder, the commissioner may cancel
the contract in the manner herein provided. The commissioner shall give to the owner, in
the manner prescribed in section 88.48, subdivision 4, 60 days' notice of a hearing thereon
at which the owner may appear and show cause, if any, why the contract should not be
canceled. The commissioner shall thereupon determine whether the contract should be
canceled and make an order to that effect. Notice of the commissioner's determination
and the making of the order shall be given to the owner in the manner provided in section
88.48, subdivision 4. On determining that the contract should be canceled and no appeal
therefrom be taken, the commissioner shall send notice thereof to the auditor of the county
and to the town clerk of the town affected and file with the recorder a certified copy of the
order, who shall forthwith note the cancellation upon the record thereof, and thereupon the
land therein described shall cease to be an auxiliary forest and, together with the timber
thereon, become liable to all taxes and assessments that otherwise would have been levied
against it had it never been an auxiliary forest from the time of the making of the contract,
any provisions of the statutes of limitation to the contrary notwithstanding, less the amount
of taxes paid under the provisions of section 88.51, subdivision 1, together with interest on
such taxes and assessments at six percent per annum, but without penalties.

The commissioner may in like manner and with like effect cancel the contract upon
written application of the owner.

deleted text begin The commissioner shall cancel any contract if the owner has made successful
application under sections 290C.01 to 290C.11, the Sustainable Forest Incentive Act, and
has paid to the county treasurer the difference between the amount which would have been
paid had the land under contract been subject to the Minnesota Tree Growth Tax Law and
the Sustainable Forest Incentive Act from the date of the recording of the contract and
the amount actually paid under section 88.51, subdivisions 1 and 2. This tax difference
must be calculated based on the years the lands would have been taxed under the Tree
Growth Tax Law and the Sustainable Forest Incentive Act. The sustainable forest tax
difference is net of the incentive payment of section 290C.07. If the amount which would
have been paid, had the land under contract been under the Minnesota Tree Growth Tax
Law and the Sustainable Forest Incentive Act from the date of the filing of the contract,
is less than the amount actually paid under the contract, the cancellation shall be made
without further payment by the owner.
deleted text end

When the execution of any contract creating an auxiliary forest shall have been
procured through fraud or deception practiced upon the county board or the commissioner
or any other person or body representing the state, it may be canceled upon suit brought by
the attorney general at the direction of the commissioner. This cancellation shall have the
same effect as the cancellation of a contract by the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2010, section 88.49, subdivision 9a, is amended to read:


Subd. 9a.

Land trades with governmental units.

Notwithstanding subdivisions
6 and 9, or section 88.491, subdivision 2, if an owner trades land under auxiliary forest
contract for land owned by a governmental unit and the owner agrees to use the land
received in trade from the governmental unit for the production of forest products, upon
resolution of the county board, no taxes and assessments shall be levied against the land
traded, except that any current or delinquent annual taxes or yield taxes due on that land
while it was under the auxiliary forest provision must be paid prior to the land exchange.
deleted text begin The land received from the governmental unit in the land trade automatically qualifies for
inclusion in the Sustainable Forest Incentive Act.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2010, section 97A.061, subdivision 1, is amended to read:


Subdivision 1.

Applicability; amount.

(a) The commissioner shall annually make a
payment to each county having public hunting areas and game refuges. Money to make
the payments is annually appropriated for that purpose from the general fund. Except as
provided in paragraph (b), this section does not apply to state trust fund land and other
state land not purchased for game refuge or public hunting purposes. Except as provided
in paragraph (b), the payment shall be the greatest of:

(1) deleted text begin35deleted text endnew text begin 30.8new text end percent of the gross receipts from all special use permits and leases of
land acquired for public hunting and game refuges;

(2) deleted text begin50deleted text endnew text begin 44new text end cents per acre on land purchased actually used for public hunting or game
refuges; or

(3) deleted text beginthree-fourths of onedeleted text end new text begin.66 new text endpercent of the appraised value of purchased land actually
used for public hunting and game refuges.

(b) The payment shall be 50 percent of the dollar amount deleted text beginadjusted for inflationdeleted text end as
determined under section 477A.12, subdivision 1, paragraph (a), clause (1), multiplied
by the number of acres of land in the county that are owned by another state agency for
military purposes and designated as a game refuge under section 97A.085.

(c) The payment must be reduced by the amount paid under subdivision 3 for
croplands managed for wild geese.

(d) The appraised value is the purchase price for five years after acquisition.
The appraised value shall be determined by the county assessor every five years after
acquisition.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year
2011 and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2010, section 97A.061, subdivision 3, is amended to read:


Subd. 3.

Goose management croplands.

(a) The commissioner shall make a
payment on July 1 of each year to each county where the state owns more than 1,000 acres
of crop land, for wild goose management purposes. The payment shall be equal tonew text begin 88
percent of
new text end the taxes assessed on comparable, privately owned, adjacent land. Money to
make the payments is annually appropriated for that purpose from the general fund. The
county treasurer shall allocate and distribute the payment as provided in subdivision 2.

(b) The land used for goose management under this subdivision is exempt from
taxation as provided in sections 272.01 and 273.19.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year
2011 and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2010, section 126C.01, subdivision 3, is amended to read:


Subd. 3.

Referendum market value.

"Referendum market value" means the market
value of all taxable property, excluding property classified as class 2, noncommercial
4c(1), or 4c(4) under section 273.13. The portion of class 2a property consisting of the
house, garage, and surrounding one acre of land of an agricultural homestead is included
in referendum market value. new text beginFor the purposes of this subdivision, in the case of class 1a,
1b, or 2a property, "market value" means the value prior to the exclusion under section
273.13, subdivision 35.
new text endAny class of property, or any portion of a class of property, that
is included in the definition of referendum market value and that has a class rate of less
than one percent under section 273.13 shall have a referendum market value equal to its
deleted text begin net tax capacitydeleted text endnew text begin market value times its class rate,new text end multiplied by 100.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2012 and
thereafter.
new text end

Sec. 6.

Minnesota Statutes 2010, section 270A.03, subdivision 7, is amended to read:


Subd. 7.

Refund.

"Refund" means an individual income tax refund deleted text beginor political
contribution refund
deleted text end, pursuant to chapter 290, or a property tax credit or refund, pursuant to
chapter 290Adeleted text begin, or a sustainable forest tax payment to a claimant under chapter 290Cdeleted text end.

For purposes of this chapter, lottery prizes, as set forth in section 349A.08,
subdivision 8
, and amounts granted to persons by the legislature on the recommendation
of the joint senate-house of representatives Subcommittee on Claims shall be treated
as refunds.

In the case of a joint property tax refund payable to spouses under chapter 290A,
the refund shall be considered as belonging to each spouse in the proportion of the total
refund that equals each spouse's proportion of the total income determined under section
290A.03, subdivision 3. In the case of a joint income tax refund under chapter 289A, the
refund shall be considered as belonging to each spouse in the proportion of the total
refund that equals each spouse's proportion of the total taxable income determined under
section 290.01, subdivision 29. The commissioner shall remit the entire refund to the
claimant agency, which shall, upon the request of the spouse who does not owe the debt,
determine the amount of the refund belonging to that spouse and refund the amount to
that spouse. For court fines, fees, and surcharges and court-ordered restitution under
section 611A.04, subdivision 2, the notice provided by the commissioner of revenue under
section 270A.07, subdivision 2, paragraph (b), serves as the appropriate legal notice
to the spouse who does not owe the debt.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

Minnesota Statutes 2010, section 273.114, subdivision 2, as amended by Laws
2011, chapter 13, section 2, is amended to read:


Subd. 2.

Requirements.

Class 2b property that had been properly enrolled under
section 273.111 for taxes payable in 2008, or that is part of an agricultural homestead
under section 273.13, subdivision 23, paragraph (a), at least a portion of which is enrolled
under section 273.111, is entitled to valuation and tax deferment under this section if:

(1) the property is contiguous to class 2a property enrolled under section 273.111
under the same ownership;

(2) there are no delinquent property taxes on the land; and

(3) the property is not also enrolled for valuation and deferment under section
273.111 or 273.112, or chapter deleted text begin290C ordeleted text end 473H.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Minnesota Statutes 2010, section 273.13, subdivision 23, is amended to read:


Subd. 23.

Class 2.

(a) An agricultural homestead consists of class 2a agricultural
land that is homesteaded, along with any class 2b rural vacant land that is contiguous to
the class 2a land under the same ownership. The market value of the house and garage
and immediately surrounding one acre of land has the same class rates as class 1a or 1b
property under subdivision 22. The value of the remaining land including improvements
up to the first tier valuation limit of agricultural homestead property has a net class rate
of 0.5 percent of market value. The remaining property over the first tier has a class rate
of one percent of market value. For purposes of this subdivision, the "first tier valuation
limit of agricultural homestead property" and "first tier" means the limit certified under
section 273.11, subdivision 23.

(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that
are agricultural land and buildings. Class 2a property has a net class rate of one percent of
market value, unless it is part of an agricultural homestead under paragraph (a). Class
2a property must also include any property that would otherwise be classified as 2b,
but is interspersed with class 2a property, including but not limited to sloughs, wooded
wind shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback
requirement, and other similar land that is impractical for the assessor to value separately
from the rest of the property or that is unlikely to be able to be sold separately from
the rest of the property.

An assessor may classify the part of a parcel described in this subdivision that is used
for agricultural purposes as class 2a and the remainder in the class appropriate to its use.

(c) Class 2b rural vacant land consists of parcels of property, or portions thereof,
that are unplatted real estate, rural in character and not used for agricultural purposes,
including land used for growing trees for timber, lumber, and wood and wood products,
that is not improved with a structure. The presence of a minor, ancillary nonresidential
structure as defined by the commissioner of revenue does not disqualify the property from
classification under this paragraph. Any parcel of 20 acres or more improved with a
structure that is not a minor, ancillary nonresidential structure must be split-classified, and
ten acres must be assigned to the split parcel containing the structure. Class 2b property
has a net class rate of one percent of market value unless it is part of an agricultural
homestead under paragraph (a), or qualifies as class 2c under paragraph (d).

(d) Class 2c managed forest land consists of no less than 20 and no more than
1,920 acres statewide per taxpayer that is being managed under a forest management
plan deleted text beginthat meets the requirements of chapter 290C, but is not enrolled in the sustainable
forest resource management incentive program
deleted text end. It has a class rate of .65 percent,
provided that the owner of the property must apply to the assessor in order for the
property to initially qualify for the reduced rate and provide the information required
by the assessor to verify that the property qualifies for the reduced rate. If the assessor
receives the application and information before May 1 in an assessment year, the property
qualifies beginning with that assessment year. If the assessor receives the application
and information after April 30 in an assessment year, the property may not qualify until
the next assessment year. The commissioner of natural resources must concur that the
land is qualified. The commissioner of natural resources shall annually provide county
assessors verification information on a timely basis. The presence of a minor, ancillary
nonresidential structure as defined by the commissioner of revenue does not disqualify
the property from classification under this paragraph.new text begin For purposes of this paragraph,
a "forest management plan" means a written document providing a framework for
site-specific healthy, productive, and sustainable forest resources. A forest management
plan must include at least the following: (i) forest management goals for the land; (ii) a
reliable field inventory of the individual forest cover types, their age, and density; (iii) a
description of the soil type and quality; (iv) an aerial photo and/or map of the vegetation
and other natural features of the land clearly indicating the boundaries of the land and of
the forest land; (v) the proposed future conditions of the land; (vi) prescriptions to meet
proposed future conditions of the land; (vii) a recommended timetable for implementing
the prescribed activities; and (viii) a legal description of the land encompassing the
parcels included in the plan. All management activities prescribed in a plan must be in
accordance with the recommended timber harvesting and forest management guidelines.
The commissioner of natural resources shall provide a framework for plan content and
updating and revising plans.
new text end

(e) Agricultural land as used in this section means contiguous acreage of ten
acres or more, used during the preceding year for agricultural purposes. "Agricultural
purposes" as used in this section means the raising, cultivation, drying, or storage of
agricultural products for sale, or the storage of machinery or equipment used in support
of agricultural production by the same farm entity. For a property to be classified as
agricultural based only on the drying or storage of agricultural products, the products
being dried or stored must have been produced by the same farm entity as the entity
operating the drying or storage facility. "Agricultural purposes" also includes enrollment
in the Reinvest in Minnesota program under sections 103F.501 to 103F.535 or the federal
Conservation Reserve Program as contained in Public Law 99-198 or a similar state
or federal conservation program if the property was classified as agricultural (i) under
this subdivision for the assessment year 2002 or (ii) in the year prior to its enrollment.
Agricultural classification shall not be based upon the market value of any residential
structures on the parcel or contiguous parcels under the same ownership.

(f) Real estate of less than ten acres, which is exclusively or intensively used for
raising or cultivating agricultural products, shall be considered as agricultural land. To
qualify under this paragraph, property that includes a residential structure must be used
intensively for one of the following purposes:

(i) for drying or storage of grain or storage of machinery or equipment used to
support agricultural activities on other parcels of property operated by the same farming
entity;

(ii) as a nursery, provided that only those acres used to produce nursery stock are
considered agricultural land;

(iii) for livestock or poultry confinement, provided that land that is used only for
pasturing and grazing does not qualify; or

(iv) for market farming; for purposes of this paragraph, "market farming" means the
cultivation of one or more fruits or vegetables or production of animal or other agricultural
products for sale to local markets by the farmer or an organization with which the farmer
is affiliated.

(g) Land shall be classified as agricultural even if all or a portion of the agricultural
use of that property is the leasing to, or use by another person for agricultural purposes.

Classification under this subdivision is not determinative for qualifying under
section 273.111.

(h) The property classification under this section supersedes, for property tax
purposes only, any locally administered agricultural policies or land use restrictions that
define minimum or maximum farm acreage.

(i) The term "agricultural products" as used in this subdivision includes production
for sale of:

(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains,
bees, and apiary products by the owner;

(2) fish bred for sale and consumption if the fish breeding occurs on land zoned
for agricultural use;

(3) the commercial boarding of horses, which may include related horse training and
riding instruction, if the boarding is done on property that is also used for raising pasture
to graze horses or raising or cultivating other agricultural products as defined in clause (1);

(4) property which is owned and operated by nonprofit organizations used for
equestrian activities, excluding racing;

(5) game birds and waterfowl bred and raised for use on a shooting preserve licensed
under section 97A.115;

(6) insects primarily bred to be used as food for animals;

(7) trees, grown for sale as a crop, including short rotation woody crops, and not
sold for timber, lumber, wood, or wood products; and

(8) maple syrup taken from trees grown by a person licensed by the Minnesota
Department of Agriculture under chapter 28A as a food processor.

(j) If a parcel used for agricultural purposes is also used for commercial or industrial
purposes, including but not limited to:

(1) wholesale and retail sales;

(2) processing of raw agricultural products or other goods;

(3) warehousing or storage of processed goods; and

(4) office facilities for the support of the activities enumerated in clauses (1), (2),
and (3),

the assessor shall classify the part of the parcel used for agricultural purposes as class
1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its
use. The grading, sorting, and packaging of raw agricultural products for first sale is
considered an agricultural purpose. A greenhouse or other building where horticultural
or nursery products are grown that is also used for the conduct of retail sales must be
classified as agricultural if it is primarily used for the growing of horticultural or nursery
products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of
those products. Use of a greenhouse or building only for the display of already grown
horticultural or nursery products does not qualify as an agricultural purpose.

(k) The assessor shall determine and list separately on the records the market value
of the homestead dwelling and the one acre of land on which that dwelling is located. If
any farm buildings or structures are located on this homesteaded acre of land, their market
value shall not be included in this separate determination.

(l) Class 2d airport landing area consists of a landing area or public access area of
a privately owned public use airport. It has a class rate of one percent of market value.
To qualify for classification under this paragraph, a privately owned public use airport
must be licensed as a public airport under section 360.018. For purposes of this paragraph,
"landing area" means that part of a privately owned public use airport properly cleared,
regularly maintained, and made available to the public for use by aircraft and includes
runways, taxiways, aprons, and sites upon which are situated landing or navigational aids.
A landing area also includes land underlying both the primary surface and the approach
surfaces that comply with all of the following:

(i) the land is properly cleared and regularly maintained for the primary purposes of
the landing, taking off, and taxiing of aircraft; but that portion of the land that contains
facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;

(ii) the land is part of the airport property; and

(iii) the land is not used for commercial or residential purposes.

The land contained in a landing area under this paragraph must be described and certified
by the commissioner of transportation. The certification is effective until it is modified,
or until the airport or landing area no longer meets the requirements of this paragraph.
For purposes of this paragraph, "public access area" means property used as an aircraft
parking ramp, apron, or storage hangar, or an arrival and departure building in connection
with the airport.

(m) Class 2e consists of land with a commercial aggregate deposit that is not actively
being mined and is not otherwise classified as class 2a or 2b, provided that the land is not
located in a county that has elected to opt-out of the aggregate preservation program as
provided in section 273.1115, subdivision 6. It has a class rate of one percent of market
value. To qualify for classification under this paragraph, the property must be at least
ten contiguous acres in size and the owner of the property must record with the county
recorder of the county in which the property is located an affidavit containing:

(1) a legal description of the property;

(2) a disclosure that the property contains a commercial aggregate deposit that is not
actively being mined but is present on the entire parcel enrolled;

(3) documentation that the conditional use under the county or local zoning
ordinance of this property is for mining; and

(4) documentation that a permit has been issued by the local unit of government
or the mining activity is allowed under local ordinance. The disclosure must include a
statement from a registered professional geologist, engineer, or soil scientist delineating
the deposit and certifying that it is a commercial aggregate deposit.

For purposes of this section and section 273.1115, "commercial aggregate deposit"
means a deposit that will yield crushed stone or sand and gravel that is suitable for use
as a construction aggregate; and "actively mined" means the removal of top soil and
overburden in preparation for excavation or excavation of a commercial deposit.

(n) When any portion of the property under this subdivision or subdivision 22 begins
to be actively mined, the owner must file a supplemental affidavit within 60 days from
the day any aggregate is removed stating the number of acres of the property that is
actively being mined. The acres actively being mined must be (1) valued and classified
under subdivision 24 in the next subsequent assessment year, and (2) removed from the
aggregate resource preservation property tax program under section 273.1115, if the
land was enrolled in that program. Copies of the original affidavit and all supplemental
affidavits must be filed with the county assessor, the local zoning administrator, and the
Department of Natural Resources, Division of Land and Minerals. A supplemental
affidavit must be filed each time a subsequent portion of the property is actively mined,
provided that the minimum acreage change is five acres, even if the actual mining activity
constitutes less than five acres.

(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are
not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions
in section 14.386 concerning exempt rules do not apply.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2011, payable
in 2012, and thereafter.
new text end

Sec. 9.

Minnesota Statutes 2010, section 273.13, is amended by adding a subdivision
to read:


new text begin Subd. 35. new text end

new text begin Homestead market value exclusion. new text end

new text begin (a) Prior to determining a property's
net tax capacity under this section, property classified as class 1a or 1b under subdivision
22, and the portion of property classified as class 2a under subdivision 23 consisting of
the house, garage, and surrounding one acre of land, shall be eligible for a market value
exclusion as determined under paragraph (b).
new text end

new text begin (b) For a homestead valued at $76,000 or less, the exclusion is 40 percent of market
value. For a homestead valued between $76,000 and $413,800, the exclusion is $30,400
minus nine percent of the valuation over $76,000. For a homestead valued at $413,800 or
more, there is no valuation exclusion. The valuation exclusion shall be rounded to the
nearest whole dollar, and may not be less than zero.
new text end

new text begin (c) Any valuation exclusions or adjustments under section 273.11 shall be applied
prior to determining the amount of the valuation exclusion under this subdivision.
new text end

new text begin (d) In the case of a property that is classified as part homestead and part
nonhomestead, (i) the exclusion shall apply only to the homestead portion of the property,
but (ii) if a portion of a property is classified as nonhomestead solely because not all
the owners occupy the property, not all the owners have qualifying relatives occupying
the property, or solely because not all the spouses of owners occupy the property, the
exclusion amount shall be initially computed as if that nonhomestead portion were also in
the homestead class and then prorated to the owner-occupant's percentage of ownership.
For the purpose of this section, when an owner-occupant's spouse does not occupy the
property, the percentage of ownership for the owner-occupant spouse is one-half of the
couple's ownership percentage.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2012 and
thereafter.
new text end

Sec. 10.

Minnesota Statutes 2010, section 273.1384, subdivision 3, is amended to read:


Subd. 3.

Credit reimbursements.

The county auditor shall determine the tax
reductions allowed under deleted text beginthis sectiondeleted text endnew text begin subdivision 2new text end within the county for each taxes
payable year and shall certify that amount to the commissioner of revenue as a part of the
abstracts of tax lists submitted by the county auditors under section 275.29. Any prior
year adjustments shall also be certified on the abstracts of tax lists. The commissioner
shall review the certifications for accuracy, and may make such changes as are deemed
necessary, or return the certification to the county auditor for correction. The deleted text begincreditsdeleted text endnew text begin
credit
new text end under this section must be used to proportionately reduce the net tax capacity-based
property tax payable to each local taxing jurisdiction as provided in section 273.1393.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2012 and
thereafter.
new text end

Sec. 11.

Minnesota Statutes 2010, section 273.1384, subdivision 4, is amended to read:


Subd. 4.

Payment.

(a) The commissioner of revenue shall reimburse each local
taxing jurisdiction, other than school districts, for the tax reductions granted under deleted text beginthis
section
deleted text endnew text begin subdivision 2new text end in two equal installments on October 31 and December 26 of the
taxes payable year for which the reductions are granted, including in each payment
the prior year adjustments certified on the abstracts for that taxes payable year. The
reimbursements related to tax increments shall be issued in one installment each year on
December 26.

(b) The commissioner of revenue shall certify the total of the tax reductions granted
under deleted text beginthis sectiondeleted text endnew text begin subdivision 2new text end for each taxes payable year within each school district to
the commissioner of the Department of Education and the commissioner of education shall
pay the reimbursement amounts to each school district as provided in section 273.1392.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2012 and
thereafter.
new text end

Sec. 12.

Minnesota Statutes 2010, section 273.1393, is amended to read:


273.1393 COMPUTATION OF NET PROPERTY TAXES.

Notwithstanding any other provisions to the contrary, "net" property taxes are
determined by subtracting the credits in the order listed from the gross tax:

(1) disaster credit as provided in sections 273.1231 to 273.1235;

(2) powerline credit as provided in section 273.42;

(3) agricultural preserves credit as provided in section 473H.10;

(4) enterprise zone credit as provided in section 469.171;

(5) disparity reduction credit;

(6) conservation tax credit as provided in section 273.119;

(7) deleted text beginhomestead anddeleted text end agricultural deleted text begincreditsdeleted text endnew text begin creditnew text end as provided in section 273.1384;

(8) taconite homestead credit as provided in section 273.135;

(9) supplemental homestead credit as provided in section 273.1391; and

(10) the bovine tuberculosis zone credit, as provided in section 273.113.

The combination of all property tax credits must not exceed the gross tax amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2012 and
thereafter.
new text end

Sec. 13.

Minnesota Statutes 2010, section 273.1398, subdivision 3, is amended to read:


Subd. 3.

Disparity reduction aid.

The amount of disparity aid certified new text beginin 2012 and
subsequent years
new text endfor each deleted text begintaxingdeleted text endnew text begin schoolnew text end district within each unique taxing jurisdiction
deleted text begin for taxes payable in the prior year shall be multiplied by the ratio of (1) the jurisdiction's
tax capacity using the class rates for taxes payable in the year for which aid is being
computed, to (2) its tax capacity using the class rates for taxes payable in the year prior to
that for which aid is being computed, both based upon market values for taxes payable in
the year prior to that for which aid is being computed. If the commissioner determines
that insufficient information is available to reasonably and timely calculate the numerator
in this ratio for the first taxes payable year that a class rate change or new class rate is
effective, the commissioner shall omit the effects of that class rate change or new class
rate when calculating this ratio for aid payable in that taxes payable year. For aid payable
in the year following a year for which such omission was made, the commissioner shall
use in the denominator for the class that was changed or created, the tax capacity for taxes
payable two years prior to that in which the aid is payable, based on market values for
taxes payable in the year prior to that for which aid is being computed
deleted text endnew text begin is equal to the
amount certified for aid payable in 2011
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aid payable in 2012 and thereafter.
new text end

Sec. 14.

Minnesota Statutes 2010, section 276.04, subdivision 2, is amended to read:


Subd. 2.

Contents of tax statements.

(a) The treasurer shall provide for the
printing of the tax statements. The commissioner of revenue shall prescribe the form of
the property tax statement and its contents. The tax statement must not state or imply
that property tax credits are paid by the state of Minnesota. The statement must contain
a tabulated statement of the dollar amount due to each taxing authority and the amount
of the state tax from the parcel of real property for which a particular tax statement is
prepared. The dollar amounts attributable to the county, the state tax, the voter approved
school tax, the other local school tax, the township or municipality, and the total of
the metropolitan special taxing districts as defined in section 275.065, subdivision 3,
paragraph (i), must be separately stated. The amounts due all other special taxing districts,
if any, may be aggregated except that any levies made by the regional rail authorities in the
county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
398A shall be listed on a separate line directly under the appropriate county's levy. If the
county levy under this paragraph includes an amount for a lake improvement district as
defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
must be separately stated from the remaining county levy amount. In the case of Ramsey
County, if the county levy under this paragraph includes an amount for public library
service under section 134.07, the amount attributable for that purpose may be separated
from the remaining county levy amount. The amount of the tax on homesteads qualifying
under the senior citizens' property tax deferral program under chapter 290B is the total
amount of property tax before subtraction of the deferred property tax amount. The
amount of the tax on contamination value imposed under sections 270.91 to 270.98, if any,
must also be separately stated. The dollar amounts, including the dollar amount of any
special assessments, may be rounded to the nearest even whole dollar. For purposes of this
section whole odd-numbered dollars may be adjusted to the next higher even-numbered
dollar. The amount of market value excluded under section 273.11, subdivision 16, if any,
must also be listed on the tax statement.

(b) The property tax statements for manufactured homes and sectional structures
taxed as personal property shall contain the same information that is required on the
tax statements for real property.

(c) Real and personal property tax statements must contain the following information
in the order given in this paragraph. The information must contain the current year tax
information in the right column with the corresponding information for the previous year
in a column on the left:

(1) the property's estimated market value under section 273.11, subdivision 1;

new text begin (2) the property's homestead market value exclusion under section 273.13,
subdivision 35;
new text end

deleted text begin (2)deleted text endnew text begin (3)new text end the property's taxable market value after reductions under deleted text beginsectiondeleted text endnew text begin sectionsnew text end
273.11, subdivisions 1a and 16new text begin, and 273.13, subdivision 35new text end;

deleted text begin (3)deleted text endnew text begin (4)new text end the property's gross tax, before credits;

deleted text begin (4)deleted text endnew text begin (5)new text end for homestead deleted text beginresidential anddeleted text end agricultural properties, the deleted text begincreditsdeleted text endnew text begin credit new text end under
section 273.1384;

deleted text begin (5)deleted text endnew text begin (6)new text end any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of
credit received under section 273.135 must be separately stated and identified as "taconite
tax relief"; and

deleted text begin (6)deleted text endnew text begin (7)new text end the net tax payable in the manner required in paragraph (a).

(d) If the county uses envelopes for mailing property tax statements and if the county
agrees, a taxing district may include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget deliberations for the current
year, and encouraging taxpayers to attend the hearings. If the county allows notices to
be included in the envelope containing the property tax statement, and if more than
one taxing district relative to a given property decides to include a notice with the tax
statement, the county treasurer or auditor must coordinate the process and may combine
the information on a single announcement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2012 and
thereafter.
new text end

Sec. 15.

Minnesota Statutes 2010, section 289A.50, subdivision 1, is amended to read:


Subdivision 1.

General right to refund.

(a) Subject to the requirements of this
section and section 289A.40, a taxpayer who has paid a tax in excess of the taxes lawfully
due and who files a written claim for refund will be refunded or credited the overpayment
of the tax determined by the commissioner to be erroneously paid.

(b) The claim must specify the name of the taxpayer, the date when and the period
for which the tax was paid, the kind of tax paid, the amount of the tax that the taxpayer
claims was erroneously paid, the grounds on which a refund is claimed, and other
information relative to the payment and in the form required by the commissioner. An
income tax, estate tax, or corporate franchise tax return, or amended return claiming an
overpayment constitutes a claim for refund.

(c) When, in the course of an examination, and within the time for requesting a
refund, the commissioner determines that there has been an overpayment of tax, the
commissioner shall refund or credit the overpayment to the taxpayer and no demand
is necessary. If the overpayment exceeds $1, the amount of the overpayment must
be refunded to the taxpayer. If the amount of the overpayment is less than $1, the
commissioner is not required to refund. In these situations, the commissioner does not
have to make written findings or serve notice by mail to the taxpayer.

(d) If the amount allowable as a credit for withholding, estimated taxes, or dependent
care exceeds the tax against which the credit is allowable, the amount of the excess is
considered an overpayment. deleted text beginThe refund allowed by section 290.06, subdivision 23, is also
considered an overpayment.
deleted text end The requirements of section 270C.33 do not apply to the
refunding of such an overpayment shown on the original return filed by a taxpayer.

(e) If the entertainment tax withheld at the source exceeds by $1 or more the taxes,
penalties, and interest reported in the return of the entertainment entity or imposed by
section 290.9201, the excess must be refunded to the entertainment entity. If the excess is
less than $1, the commissioner need not refund that amount.

(f) If the surety deposit required for a construction contract exceeds the liability of
the out-of-state contractor, the commissioner shall refund the difference to the contractor.

(g) An action of the commissioner in refunding the amount of the overpayment does
not constitute a determination of the correctness of the return of the taxpayer.

(h) There is appropriated from the general fund to the commissioner of revenue the
amount necessary to pay refunds allowed under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refund claims based on
contributions made after June 30, 2011.
new text end

Sec. 16.

Minnesota Statutes 2010, section 290.01, subdivision 6, is amended to read:


Subd. 6.

Taxpayer.

The term "taxpayer" means any person or corporation subject to
a tax imposed by this chapter. deleted text beginFor purposes of section 290.06, subdivision 23, the term
"taxpayer" means an individual eligible to vote in Minnesota under section 201.014.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refund claims based on
contributions made after June 30, 2011.
new text end

Sec. 17.

Minnesota Statutes 2010, section 290A.03, subdivision 11, is amended to read:


Subd. 11.

Rent constituting property taxes.

"Rent constituting property taxes"
means deleted text begin19deleted text endnew text begin 15new text end percent of the gross rent actually paid in cash, or its equivalent, or the portion
of rent paid in lieu of property taxes, in any calendar year by a claimant for the right
of occupancy of the claimant's Minnesota homestead in the calendar year, and which
rent constitutes the basis, in the succeeding calendar year of a claim for relief under this
chapter by the claimant.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims based on rent paid in
2010 and thereafter.
new text end

Sec. 18.

Minnesota Statutes 2010, section 290A.03, subdivision 13, is amended to read:


Subd. 13.

Property taxes payable.

"Property taxes payable" means the property tax
exclusive of special assessments, penalties, and interest payable on a claimant's homestead
after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2,
and any other state paid property tax credits in any calendar year, and after any refund
claimed and allowable under section 290A.04, subdivision 2h, that is first payable in
the year that the property tax is payable. In the case of a claimant who makes ground
lease payments, "property taxes payable" includes the amount of the payments directly
attributable to the property taxes assessed against the parcel on which the house is located.
No apportionment or reduction of the "property taxes payable" shall be required for the
use of a portion of the claimant's homestead for a business purpose if the claimant does not
deduct any business depreciation expenses for the use of a portion of the homestead in the
determination of federal adjusted gross income. For homesteads which are manufactured
homes as defined in section 273.125, subdivision 8, and for homesteads which are park
trailers taxed as manufactured homes under section 168.012, subdivision 9, "property
taxes payable" shall also include deleted text begin19deleted text endnew text begin 15new text end percent of the gross rent paid in the preceding
year for the site on which the homestead is located. When a homestead is owned by
two or more persons as joint tenants or tenants in common, such tenants shall determine
between them which tenant may claim the property taxes payable on the homestead. If
they are unable to agree, the matter shall be referred to the commissioner of revenue
whose decision shall be final. Property taxes are considered payable in the year prescribed
by law for payment of the taxes.

In the case of a claim relating to "property taxes payable," the claimant must have
owned and occupied the homestead on January 2 of the year in which the tax is payable
and (i) the property must have been classified as homestead property pursuant to section
273.124, on or before December 15 of the assessment year to which the "property taxes
payable" relate; or (ii) the claimant must provide documentation from the local assessor
that application for homestead classification has been made on or before December 15
of the year in which the "property taxes payable" were payable and that the assessor has
approved the application.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims based on rent paid in
2010 and following years.
new text end

Sec. 19.

Minnesota Statutes 2010, section 290A.04, subdivision 2, is amended to read:


Subd. 2.

Homeowners.

A claimant whose property taxes payable are in excess
of the percentage of the household income stated below shall pay an amount equal to
the percent of income shown for the appropriate household income level along with the
percent to be paid by the claimant of the remaining amount of property taxes payable.
The state refund equals the amount of property taxes payable that remain, up to the state
refund amount shown below.

deleted text begin Household Income
deleted text end
deleted text begin Percent of Income
deleted text end
deleted text begin Percent Paid by
Claimant
deleted text end
deleted text begin Maximum
State
Refund
deleted text end
deleted text begin $0 to 1,189
deleted text end
deleted text begin 1.0 percent
deleted text end
deleted text begin 15 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,850
deleted text end
deleted text begin 1,190 to 2,379
deleted text end
deleted text begin 1.1 percent
deleted text end
deleted text begin 15 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,850
deleted text end
deleted text begin 2,380 to 3,589
deleted text end
deleted text begin 1.2 percent
deleted text end
deleted text begin 15 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,800
deleted text end
deleted text begin 3,590 to 4,789
deleted text end
deleted text begin 1.3 percent
deleted text end
deleted text begin 20 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,800
deleted text end
deleted text begin 4,790 to 5,979
deleted text end
deleted text begin 1.4 percent
deleted text end
deleted text begin 20 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,730
deleted text end
deleted text begin 5,980 to 8,369
deleted text end
deleted text begin 1.5 percent
deleted text end
deleted text begin 20 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,730
deleted text end
deleted text begin 8,370 to 9,559
deleted text end
deleted text begin 1.6 percent
deleted text end
deleted text begin 25 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,670
deleted text end
deleted text begin 9,560 to 10,759
deleted text end
deleted text begin 1.7 percent
deleted text end
deleted text begin 25 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,670
deleted text end
deleted text begin 10,760 to 11,949
deleted text end
deleted text begin 1.8 percent
deleted text end
deleted text begin 25 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,610
deleted text end
deleted text begin 11,950 to 13,139
deleted text end
deleted text begin 1.9 percent
deleted text end
deleted text begin 30 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,610
deleted text end
deleted text begin 13,140 to 14,349
deleted text end
deleted text begin 2.0 percent
deleted text end
deleted text begin 30 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,540
deleted text end
deleted text begin 14,350 to 16,739
deleted text end
deleted text begin 2.1 percent
deleted text end
deleted text begin 30 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,540
deleted text end
deleted text begin 16,740 to 17,929
deleted text end
deleted text begin 2.2 percent
deleted text end
deleted text begin 35 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,480
deleted text end
deleted text begin 17,930 to 19,119
deleted text end
deleted text begin 2.3 percent
deleted text end
deleted text begin 35 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,480
deleted text end
deleted text begin 19,120 to 20,319
deleted text end
deleted text begin 2.4 percent
deleted text end
deleted text begin 35 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,420
deleted text end
deleted text begin 20,320 to 25,099
deleted text end
deleted text begin 2.5 percent
deleted text end
deleted text begin 40 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,420
deleted text end
deleted text begin 25,100 to 28,679
deleted text end
deleted text begin 2.6 percent
deleted text end
deleted text begin 40 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,360
deleted text end
deleted text begin 28,680 to 35,849
deleted text end
deleted text begin 2.7 percent
deleted text end
deleted text begin 40 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,360
deleted text end
deleted text begin 35,850 to 41,819
deleted text end
deleted text begin 2.8 percent
deleted text end
deleted text begin 45 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,240
deleted text end
deleted text begin 41,820 to 47,799
deleted text end
deleted text begin 3.0 percent
deleted text end
deleted text begin 45 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,240
deleted text end
deleted text begin 47,800 to 53,779
deleted text end
deleted text begin 3.2 percent
deleted text end
deleted text begin 45 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,110
deleted text end
deleted text begin 53,780 to 59,749
deleted text end
deleted text begin 3.5 percent
deleted text end
deleted text begin 50 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 990
deleted text end
deleted text begin 59,750 to 65,729
deleted text end
deleted text begin 3.5 percent
deleted text end
deleted text begin 50 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 870
deleted text end
deleted text begin 65,730 to 69,319
deleted text end
deleted text begin 3.5 percent
deleted text end
deleted text begin 50 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 740
deleted text end
deleted text begin 69,320 to 71,719
deleted text end
deleted text begin 3.5 percent
deleted text end
deleted text begin 50 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 610
deleted text end
deleted text begin 71,720 to 74,619
deleted text end
deleted text begin 3.5 percent
deleted text end
deleted text begin 50 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 500
deleted text end
deleted text begin 74,620 to 77,519
deleted text end
deleted text begin 3.5 percent
deleted text end
deleted text begin 50 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 370
deleted text end
new text begin Household Income
new text end
new text begin Percent of Income
new text end
new text begin Percent Paid by
Claimant
new text end
new text begin Maximum
State
Refund
new text end
new text begin $0 to 1,549
new text end
new text begin 1.0 percent
new text end
new text begin 15 percent
new text end
new text begin $
new text end
new text begin 2,460
new text end
new text begin 1,550 to 3,089
new text end
new text begin 1.1 percent
new text end
new text begin 15 percent
new text end
new text begin $
new text end
new text begin 2,460
new text end
new text begin 3,090 to 4,669
new text end
new text begin 1.2 percent
new text end
new text begin 15 percent
new text end
new text begin $
new text end
new text begin 2,460
new text end
new text begin 4,670 to 6,229
new text end
new text begin 1.3 percent
new text end
new text begin 20 percent
new text end
new text begin $
new text end
new text begin 2,460
new text end
new text begin 6,230 to 7,769
new text end
new text begin 1.4 percent
new text end
new text begin 20 percent
new text end
new text begin $
new text end
new text begin 2,460
new text end
new text begin 7,770 to 10,879
new text end
new text begin 1.5 percent
new text end
new text begin 20 percent
new text end
new text begin $
new text end
new text begin 2,460
new text end
new text begin 10,880 to 12,429
new text end
new text begin 1.6 percent
new text end
new text begin 20 percent
new text end
new text begin $
new text end
new text begin 2,460
new text end
new text begin 12,430 to 13,989
new text end
new text begin 1.7 percent
new text end
new text begin 20 percent
new text end
new text begin $
new text end
new text begin 2,460
new text end
new text begin 13,990 to 15,539
new text end
new text begin 1.8 percent
new text end
new text begin 20 percent
new text end
new text begin $
new text end
new text begin 2,460
new text end
new text begin 15,540 to 17,079
new text end
new text begin 1.9 percent
new text end
new text begin 25 percent
new text end
new text begin $
new text end
new text begin 2,460
new text end
new text begin 17,080 to 18,659
new text end
new text begin 2.0 percent
new text end
new text begin 25 percent
new text end
new text begin $
new text end
new text begin 2,460
new text end
new text begin 18,660 to 21,759
new text end
new text begin 2.1 percent
new text end
new text begin 25 percent
new text end
new text begin $
new text end
new text begin 2,460
new text end
new text begin 21,760 to 23,309
new text end
new text begin 2.2 percent
new text end
new text begin 30 percent
new text end
new text begin $
new text end
new text begin 2,460
new text end
new text begin 23,310 to 24,859
new text end
new text begin 2.3 percent
new text end
new text begin 30 percent
new text end
new text begin $
new text end
new text begin 2,460
new text end
new text begin 24,860 to 26,419
new text end
new text begin 2.4 percent
new text end
new text begin 30 percent
new text end
new text begin $
new text end
new text begin 2,460
new text end
new text begin 26,420 to 32,629
new text end
new text begin 2.5 percent
new text end
new text begin 35 percent
new text end
new text begin $
new text end
new text begin 2,460
new text end
new text begin 32,630 to 37,279
new text end
new text begin 2.6 percent
new text end
new text begin 35 percent
new text end
new text begin $
new text end
new text begin 2,460
new text end
new text begin 37,280 to 46,609
new text end
new text begin 2.7 percent
new text end
new text begin 35 percent
new text end
new text begin $
new text end
new text begin 2,000
new text end
new text begin 46,610 to 54,369
new text end
new text begin 2.8 percent
new text end
new text begin 35 percent
new text end
new text begin $
new text end
new text begin 2,000
new text end
new text begin 54,370 to 62,139
new text end
new text begin 2.8 percent
new text end
new text begin 40 percent
new text end
new text begin $
new text end
new text begin 1,750
new text end
new text begin 62,140 to 69,909
new text end
new text begin 3.0 percent
new text end
new text begin 40 percent
new text end
new text begin $
new text end
new text begin 1,440
new text end
new text begin 69,910 to 77,679
new text end
new text begin 3.0 percent
new text end
new text begin 40 percent
new text end
new text begin $
new text end
new text begin 1,290
new text end
new text begin 77,680 to 85,449
new text end
new text begin 3.0 percent
new text end
new text begin 40 percent
new text end
new text begin $
new text end
new text begin 1,130
new text end
new text begin 85,450 to 90,119
new text end
new text begin 3.5 percent
new text end
new text begin 45 percent
new text end
new text begin $
new text end
new text begin 960
new text end
new text begin 90,120 to 93,239
new text end
new text begin 3.5 percent
new text end
new text begin 45 percent
new text end
new text begin $
new text end
new text begin 790
new text end
new text begin 93,240 to 97,009
new text end
new text begin 3.5 percent
new text end
new text begin 50 percent
new text end
new text begin $
new text end
new text begin 650
new text end
new text begin 97,010 to 100,779
new text end
new text begin 3.5 percent
new text end
new text begin 50 percent
new text end
new text begin $
new text end
new text begin 480
new text end

The payment made to a claimant shall be the amount of the state refund calculated
under this subdivision. No payment is allowed if the claimant's household income is
deleted text begin $77,520deleted text endnew text begin $100,780new text end or more.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with refunds based on
taxes payable in 2012.
new text end

Sec. 20.

Minnesota Statutes 2010, section 290A.04, subdivision 2a, is amended to read:


Subd. 2a.

Rentersnew text begin; senior or disablednew text end.

A claimant whose rent constituting property
taxes exceeds the percentage of the household income stated below must pay an amount
equal to the percent of income shown for the appropriate household income level along
with the percent to be paid by the claimant of the remaining amount of rent constituting
property taxes. The state refund equals the amount of rent constituting property taxes that
remain, up to the maximum state refund amount shown below.new text begin This subdivision applies
only if the claimant or claimant's spouse was disabled or attained the age of 65 on or
before December 31 of the year for which the rent was paid.
new text end

Household Income
Percent of Income
Percent Paid by
Claimant
Maximum
State
Refund
$deleted text begin0 to 3,589deleted text endnew text begin 4,599
new text end
1.0 percent
5 percent
$
deleted text begin 1,190
deleted text end new text begin 1,520
new text end
deleted text begin 3,590 to 4,779
deleted text end new text begin 4,600 to 6,119
new text end
1.0 percent
10 percent
$
deleted text begin 1,190
deleted text end new text begin 1,520
new text end
deleted text begin 4,780 to 5,969
deleted text end new text begin 6,120 to 7,639
new text end
1.1 percent
10 percent
$
deleted text begin 1,190
deleted text end new text begin 1,520
new text end
deleted text begin 5,970 to 8,369
deleted text end new text begin 7,640 to 10,719
new text end
1.2 percent
10 percent
$
deleted text begin 1,190
deleted text end new text begin 1,520
new text end
deleted text begin 8,370 to 10,759
deleted text end new text begin 10,720 to 13,779
new text end
1.3 percent
15 percent
$
deleted text begin 1,190
deleted text end new text begin 1,520
new text end
deleted text begin 10,760 to 11,949
deleted text end new text begin 13,780 to 15,299
new text end
1.4 percent
15 percent
$
deleted text begin 1,190
deleted text end new text begin 1,520
new text end
deleted text begin 11,950 to 13,139
deleted text end new text begin 15,300 to 16,819
new text end
1.4 percent
20 percent
$
deleted text begin 1,190
deleted text end new text begin 1,520
new text end
deleted text begin 13,140 to 15,539
deleted text end new text begin 16,820 to 19,899
new text end
1.5 percent
20 percent
$
deleted text begin 1,190
deleted text end new text begin 1,520
new text end
deleted text begin 15,540 to 16,729
deleted text end new text begin 19,900 to 21,419
new text end
1.6 percent
20 percent
$
deleted text begin 1,190
deleted text end new text begin 1,520
new text end
deleted text begin 16,730 to 17,919
deleted text end new text begin 21,420 to 22,939
new text end
1.7 percent
25 percent
$
deleted text begin 1,190
deleted text end new text begin 1,520
new text end
deleted text begin 17,920 to 20,319
deleted text end new text begin 22,940 to 26,009
new text end
1.8 percent
25 percent
$
deleted text begin 1,190
deleted text end new text begin 1,520
new text end
deleted text begin 20,320 to 21,509
deleted text end new text begin 26,010 to 27,539
new text end
1.9 percent
30 percent
$
deleted text begin 1,190
deleted text end new text begin 1,500
new text end
deleted text begin 21,510 to 22,699
deleted text end new text begin 27,540 to 29,059
new text end
2.0 percent
30 percent
$
deleted text begin 1,190
deleted text end new text begin 1,400
new text end
deleted text begin 22,700 to 23,899
deleted text end new text begin 29,060 to 30,599
new text end
2.2 percent
30 percent
$
deleted text begin 1,190
deleted text end new text begin 1,300
new text end
deleted text begin 23,900 to 25,089
deleted text end new text begin 30,600 to 32,119
new text end
2.4 percent
30 percent
$
deleted text begin 1,190
deleted text end new text begin 1,200
new text end
deleted text begin 25,090 to 26,289
deleted text end new text begin 32,120 to 33,659
new text end
2.6 percent
35 percent
$
deleted text begin 1,190
deleted text end new text begin 1,000
new text end
deleted text begin 26,290 to 27,489
deleted text end new text begin 33,660 to 35,189
new text end
2.7 percent
35 percent
$
deleted text begin 1,190
deleted text end new text begin 1,000
new text end
deleted text begin 27,490 to 28,679
deleted text end new text begin 35,190 to 36,719
new text end
2.8 percent
35 percent
$
deleted text begin 1,190
deleted text end new text begin 750
new text end
deleted text begin 28,680 to 29,869
deleted text end new text begin 36,720 to 38,239
new text end
2.9 percent
40 percent
$
deleted text begin 1,190
deleted text end new text begin 500
new text end
deleted text begin 29,870 to 31,079
deleted text end new text begin 38,240 to 39,999
new text end
3.0 percent
40 percent
$
deleted text begin 1,190
deleted text end new text begin 250
new text end
deleted text begin 31,080 to 32,269
deleted text end
deleted text begin 3.1 percent
deleted text end
deleted text begin 40 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,190
deleted text end
deleted text begin 32,270 to 33,459
deleted text end
deleted text begin 3.2 percent
deleted text end
deleted text begin 40 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,190
deleted text end
deleted text begin 33,460 to 34,649
deleted text end
deleted text begin 3.3 percent
deleted text end
deleted text begin 45 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 1,080
deleted text end
deleted text begin 34,650 to 35,849
deleted text end
deleted text begin 3.4 percent
deleted text end
deleted text begin 45 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 960
deleted text end
deleted text begin 35,850 to 37,049
deleted text end
deleted text begin 3.5 percent
deleted text end
deleted text begin 45 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 830
deleted text end
deleted text begin 37,050 to 38,239
deleted text end
deleted text begin 3.5 percent
deleted text end
deleted text begin 50 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 720
deleted text end
deleted text begin 38,240 to 39,439
deleted text end
deleted text begin 3.5 percent
deleted text end
deleted text begin 50 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 600
deleted text end
deleted text begin 38,440 to 40,629
deleted text end
deleted text begin 3.5 percent
deleted text end
deleted text begin 50 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 360
deleted text end
deleted text begin 40,630 to 41,819
deleted text end
deleted text begin 3.5 percent
deleted text end
deleted text begin 50 percent
deleted text end
deleted text begin $
deleted text end
deleted text begin 120
deleted text end

The payment made to a claimant is the amount of the state refund calculated under
this subdivision. No payment is allowed if the claimant's household income is deleted text begin$41,820deleted text endnew text begin
$40,000
new text end or more.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims based on rent paid in
2010 and following years.
new text end

Sec. 21.

Minnesota Statutes 2010, section 290A.04, is amended by adding a
subdivision to read:


new text begin Subd. 2k. new text end

new text begin Renters; nonsenior nondisabled. new text end

new text begin A claimant whose rent constituting
property taxes exceeds the percentage of the household income stated below must pay
an amount equal to the percent of income shown for the appropriate household income
level along with the percent to be paid by the claimant of the remaining amount of rent
constituting property taxes. The state refund equals the amount of rent constituting
property taxes that remain, up to the maximum state refund amount shown below. This
subdivision applies only if the claimant or claimant's spouse is not eligible for a refund
under subdivision 2a.
new text end

new text begin Household Income
new text end
new text begin Percent of Income
new text end
new text begin Percent Paid by
Claimant
new text end
new text begin Maximum
State
Refund
new text end
new text begin $0 to 4,599
new text end
new text begin 1.0 percent
new text end
new text begin 15 percent
new text end
new text begin $
new text end
new text begin 1,000
new text end
new text begin 4,600 to 6,119
new text end
new text begin 1.0 percent
new text end
new text begin 15 percent
new text end
new text begin $
new text end
new text begin 1,000
new text end
new text begin 6,120 to 7,639
new text end
new text begin 1.1 percent
new text end
new text begin 20 percent
new text end
new text begin $
new text end
new text begin 1,000
new text end
new text begin 7,640 to 10,719
new text end
new text begin 1.2 percent
new text end
new text begin 20 percent
new text end
new text begin $
new text end
new text begin 900
new text end
new text begin 10,720 to 13,779
new text end
new text begin 1.3 percent
new text end
new text begin 25 percent
new text end
new text begin $
new text end
new text begin 800
new text end
new text begin 13,780 to 15,299
new text end
new text begin 1.4 percent
new text end
new text begin 25 percent
new text end
new text begin $
new text end
new text begin 800
new text end
new text begin 15,300 to 16,819
new text end
new text begin 1.4 percent
new text en