Minnesota Legislature
HF 1377
1st Division Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/03/2023 01:49pm
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 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 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 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 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 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 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 8.33 8.34 8.35 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 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 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 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 13.34 13.35 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 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 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
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
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 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 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 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 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 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
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
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 27.23 27.22 27.21 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 27.33 27.34 27.35 27.36 27.37 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 28.34 28.35
28.36 28.37
28.38 28.39 28.40 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 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
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 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
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
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 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 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 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
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 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 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 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
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 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 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 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 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 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 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 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 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 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 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
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 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 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 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 60.8 60.7 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 60.33 60.34 60.35 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 61.34 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 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 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 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 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 68.33 68.34 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 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
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 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
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 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
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 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 76.35 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 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 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
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 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 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 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 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 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
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 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 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 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 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 90.33 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 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 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 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
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 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 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 99.31 100.1 100.2
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
100.18 100.19 100.20 100.21 100.22 100.23 100.24 100.25 100.26 100.27 100.28 100.29 100.30 101.1 101.2 101.3 101.4 101.5
101.6 101.7 101.8
101.9 101.10 101.11 101.12 101.13
101.14 101.15 101.16
101.17 101.18 101.19 101.20 101.21 101.22 101.23 101.24 101.25 101.26 101.27 101.28 101.29 101.30 101.31 101.32 102.1 102.2 102.3 102.4 102.5 102.6 102.7
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
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
103.16 103.17 103.18 103.19 103.20 103.21 103.22 103.23 103.24 103.25 103.26 103.27 103.28 103.29 103.30 104.1 104.2 104.3 104.4 104.5 104.6 104.7 104.8
104.9 104.10 104.11
104.12 104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20 104.21 104.22 104.23 104.24 104.25 104.26 104.27 104.28 104.29 104.30 104.31 105.1 105.2 105.3 105.4 105.5 105.6 105.7 105.8 105.9 105.10 105.11 105.12 105.13 105.14 105.15 105.16 105.17 105.18 105.19 105.20 105.21 105.22 105.23 105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 106.1 106.2 106.3 106.4 106.5 106.6
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
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
108.29 108.30 109.1 109.2 109.3 109.4 109.5 109.6 109.7 109.8 109.9 109.10 109.11 109.12 109.13 109.14 109.15 109.16 109.17 109.18 109.19 109.20 109.21 109.22
109.23 109.24 109.25
109.26 109.27 109.28 109.29 109.30 109.31 110.1 110.2 110.3 110.4 110.5 110.6 110.7 110.8 110.9 110.10 110.11 110.12 110.13 110.14
110.15
110.16 110.17
110.18 110.19 110.20 110.21 110.22 110.23 110.24 110.25 110.26 110.27 110.28 110.29 110.30 110.31 110.32 110.33 111.1 111.2 111.3 111.4 111.5 111.6 111.7 111.8 111.9 111.10 111.11 111.12 111.13 111.14 111.15 111.16 111.17 111.18 111.19 111.20 111.21 111.22 111.23 111.24 111.25 111.26 111.27 111.28
111.29 111.30 111.31 111.32 111.33 112.1 112.2 112.3 112.4 112.5 112.6 112.7 112.8
112.9 112.10
112.11 112.12 112.13 112.14 112.15 112.16 112.17 112.18 112.19
112.20
112.21 112.22 112.23 112.24 112.25 112.26 112.27 112.28 113.1 113.2 113.3 113.4 113.5 113.6 113.7 113.8 113.9 113.10 113.11 113.12 113.13 113.14 113.15 113.16 113.17 113.18 113.19 113.20 113.21 113.22 113.23
113.24
113.25 113.26 113.27 113.28 113.29 113.30 113.31 114.1 114.2 114.3 114.4 114.5 114.6 114.7 114.8 114.9 114.10 114.11 114.12 114.13 114.14 114.15 114.16 114.17 114.18 114.19 114.20 114.21 114.22 114.23 114.24 114.25 114.26 114.27 114.28 114.29 114.30 114.31 114.32 115.1 115.2 115.3 115.4 115.5 115.6 115.7 115.8 115.9 115.10 115.11 115.12 115.13 115.14 115.15 115.16 115.17 115.18 115.19 115.20 115.21 115.22 115.23 115.24 115.25 115.26 115.27 115.28 115.29 115.30
115.31
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
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
119.17 119.18 119.19 119.20 119.21 119.22 119.23 119.24 119.25 119.26 119.27 119.28 119.29 119.30 119.31 119.32 119.33 120.1 120.2 120.3 120.4 120.5 120.6 120.7 120.8 120.9 120.10 120.11 120.12 120.13 120.14 120.15
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
121.1 121.2 121.3 121.4 121.5 121.6 121.7
121.8 121.9 121.10 121.11
A bill for an act
relating to taxation; property; modifying provisions governing property taxes,
certain state aid programs, certain local taxes, tax increment financing, and various
other taxes and tax-related provisions; modifying local government aid calculation;
establishing soil and water conservation district aid; converting renter's property
tax refund into refundable individual income tax credit; establishing tourism
improvement special taxing districts; requiring reports; appropriating money;
amending Minnesota Statutes 2022, sections 10A.31, subdivisions 1, 3; 13.46,
subdivision 2; 270B.12, subdivision 8; 270B.14, subdivision 1; 270C.445,
subdivisions 2, 3; 272.01, subdivision 2; 272.02, subdivisions 24, 73, 98, by adding
a subdivision; 273.11, subdivision 12; 273.13, subdivisions 25, 34, 35; 273.1341;
273.1392; 278.01, subdivision 1; 279.03, subdivision 1a; 282.261, subdivision 2;
289A.18, subdivision 5; 289A.38, subdivision 4; 289A.56, subdivision 6; 289A.60,
subdivisions 12, 13, 28; 290A.02; 290A.03, subdivisions 3, 6, 8, 12, 13, by adding
a subdivision; 290A.04, subdivisions 1, 2, 2h, 4, 5; 290A.05; 290A.07, subdivision
2a; 290A.08; 290A.09; 290A.091; 290A.13; 290A.19; 290A.25; 290B.03,
subdivision 1; 290B.04, subdivisions 3, 4; 290B.05, subdivision 1; 297A.68,
subdivision 4; 298.015; 298.018, subdivisions 1, 1a; 298.28, subdivisions 5, 7a;
298.296, subdivision 4; 327C.02, subdivision 5; 462A.05, subdivision 24; 469.174,
subdivision 14, by adding a subdivision; 469.175, subdivision 6; 469.176,
subdivisions 3, 4; 469.1761, subdivision 1; 469.1763, subdivisions 2, 3, 4, 6;
469.1771, subdivisions 2, 2a, 3; 477A.011, subdivision 34, by adding subdivisions;
477A.0124, subdivision 2; 477A.013, subdivisions 8, 9; 477A.03, subdivisions
2a, 2b, by adding a subdivision; 477A.12, subdivisions 1, 3, by adding a
subdivision; Laws 1980, chapter 511, sections 1, subdivision 2, as amended; 2, as
amended; Laws 2006, chapter 259, article 11, section 3, as amended; Laws 2008,
chapter 366, article 5, section 26, as amended; article 7, section 17; Laws 2014,
chapter 308, article 6, section 12, subdivision 2; proposing coding for new law in
Minnesota Statutes, chapters 290; 477A; proposing coding for new law as
Minnesota Statutes, chapter 428B; repealing Minnesota Statutes 2022, sections
290A.03, subdivisions 9, 11; 290A.04, subdivision 2a; 290A.23, subdivision 1;
477A.011, subdivisions 30a, 38, 42, 45; 477A.013, subdivision 13.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
PROPERTY TAXES
Section 1.
Minnesota Statutes 2022, section 272.01, subdivision 2, is amended to read:
Subd. 2.
Exempt property used by private entity for profit.
(a) When any real or
personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is leased,
loaned, or otherwise made available and used by a private individual, association, or
corporation in connection with a business conducted for profit, there shall be imposed a
tax, for the privilege of so using or possessing such real or personal property, in the same
amount and to the same extent as though the lessee or user was the owner of such property.
(b) The tax imposed by this subdivision shall not apply to:
(1) property leased or used as a concession in or relative to the use in whole or part of
a public park, market, fairgrounds, port authority, economic development authority
established under chapter 469, municipal auditorium, municipal parking facility, municipal
museum, or municipal stadium;
(2) new text begin except as provided in paragraph (c), new text end property of an airport owned by a city, town,
county, or group thereof deleted text begin whichdeleted text end new text begin thatnew text end is:
(i) leased to or used by any person or entity including a fixed base operator; and
(ii) used as a hangar for the storage deleted text begin ordeleted text end new text begin ,new text end repairnew text begin , or manufacturenew text end of aircraft or to provide
aviation goods, services, or facilities to the airport or general public;
deleted text begin
the exception from taxation provided in this clause does not apply to:
deleted text end
deleted text begin
(i) property located at an airport owned or operated by the Metropolitan Airports
Commission or by a city of over 50,000 population according to the most recent federal
census or such a city's airport authority; or
deleted text end
deleted text begin
(ii) hangars leased by a private individual, association, or corporation in connection with
a business conducted for profit other than an aviation-related business;
deleted text end
(3) property constituting or used as a public pedestrian ramp or concourse in connection
with a public airport;
(4) new text begin except as provided in paragraph (d), new text end property constituting or used as a passenger
check-in area or ticket sale counter, boarding area, or luggage claim area in connection with
a public airport deleted text begin but not the airports owned or operated by the Metropolitan Airports
Commission or cities of over 50,000 population or an airport authority therein. Real estate
owned by a municipality in connection with the operation of a public airport and leased or
used for agricultural purposes is not exemptdeleted text end ;
(5) property leased, loaned, or otherwise made available to a private individual,
corporation, or association under a cooperative farming agreement made pursuant to section
97A.135; or
(6) property leased, loaned, or otherwise made available to a private individual,
corporation, or association under section 272.68, subdivision 4.
new text begin
(c) The exception from taxation provided in paragraph (b), clause (2), does not apply
to:
new text end
new text begin
(1) property located at an airport owned or operated by:
new text end
new text begin
(i) the Metropolitan Airports Commission; or
new text end
new text begin
(ii) a city of over 50,000 population according to the most recent federal census or such
a city's airport authority, except that, when calculating the tax imposed by this subdivision
for property taxes payable in 2024 through 2035, the net tax capacity of such property is
reduced by 50 percent if it is owned or operated by a city of over 50,000 but under 150,000
in population according to the most recent federal census or by such a city's airport authority;
or
new text end
new text begin
(2) hangars leased by a private individual, association, or corporation in connection with
a business conducted for profit other than an aviation-related business.
new text end
new text begin
(d) The exception from taxation provided in paragraph (b), clause (4), does not apply
to:
new text end
new text begin
(1) the property described in paragraph (b), clause (4), at airports that are owned or
operated by:
new text end
new text begin
(i) the Metropolitan Airports Commission; or
new text end
new text begin
(ii) a city of over 50,000 population or an airport authority therein, except that, when
calculating the tax imposed by this subdivision for property taxes payable in 2024 through
2035, the net tax capacity of such property is reduced by 50 percent if it is owned or operated
by a city of over 50,000 but under 150,000 in population according to the most recent federal
census or by such a city's airport authority; or
new text end
new text begin
(2) real estate owned by a municipality in connection with the operation of a public
airport and leased or used for agricultural purposes.
new text end
deleted text begin (c)deleted text end new text begin (e)new text end Taxes imposed by this subdivision are payable as in the case of personal property
taxes and shall be assessed to the lessees or users of real or personal property in the same
manner as taxes assessed to owners of real or personal property, except that such taxes shall
not become a lien against the property. When due, the taxes shall constitute a debt due from
the lessee or user to the state, township, city, county, and school district for which the taxes
were assessed and shall be collected in the same manner as personal property taxes. If
property subject to the tax imposed by this subdivision is leased or used jointly by two or
more persons, each lessee or user shall be jointly and severally liable for payment of the
tax.
deleted text begin (d)deleted text end new text begin (f)new text end The tax on real property of the federal government, the state or any of its political
subdivisions that is leased, loaned, or otherwise made available to a private individual,
association, or corporation and becomes taxable under this subdivision or other provision
of law must be assessed and collected as a personal property assessment. The taxes do not
become a lien against the real property.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with property taxes payable
in 2024.
new text end
Sec. 2.
Minnesota Statutes 2022, section 272.02, subdivision 24, is amended to read:
Subd. 24.
Solar energy generating systems.
Personal property consisting of solar energy
generating systems, as defined in section 272.0295, is exempt. If the real property upon
which a solar energy generating system is located is used primarily for solar energy
production subject to the production tax under section 272.0295, the real property shall be
classified as class 3a. If the real property upon which a solar energy generating system is
located is not used primarily for solar energy production subject to the production tax under
section 272.0295, the real property shall be classified without regard to the system.new text begin If real
property contains more than one solar energy generating system that cannot be combined
with the nameplate capacity of another solar energy generating system for the purposes of
the production tax under section 272.0295, but is in aggregate over one megawatt, then the
real property upon which the systems are located shall be classified as class 3a.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with property taxes payable
in 2024 and thereafter.
new text end
Sec. 3.
Minnesota Statutes 2022, section 272.02, subdivision 98, is amended to read:
Subd. 98.
Certain property owned by an Indian tribe.
(a) Property is exempt that:
(1) was classified as 3a under section 273.13, subdivision 24, for taxes payable in 2013;
(2) is located in a city of the first class with a population greater than 300,000 as of the
2010 federal census;
(3) was on January 2, 2012, and is for the current assessment owned by a federally
recognized Indian tribe, or its instrumentality, that is located within the state of Minnesota;
and
(4) is used exclusively for tribal purposes or institutions of purely public charity as
defined in subdivision 7.
(b) For purposes of this subdivision, a "tribal purpose" means a public purpose as defined
in subdivision 8 and includes noncommercial tribal government activities. Property that
qualifies for the exemption under this subdivision is limited to no more than two contiguous
parcels and structures that do not exceed in the aggregate 20,000 square feet. Property
acquired for single-family housing, market-rate apartments, agriculture, or forestry does
not qualify for this exemption. deleted text begin The exemption created bydeleted text end This subdivision expires with
taxes payable in deleted text begin 2024deleted text end new text begin 2034new text end .
new text begin
(c) Property exempt under this section is exempt from the requirements of section
272.025. Upon the written request of an assessor, all books and records relating to the
ownership or use of the property which are reasonably necessary to verify that the property
qualifies for exemption shall be made available to the assessor.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for property taxes payable in 2023 and
thereafter.
new text end
Sec. 4.
Minnesota Statutes 2022, section 272.02, is amended by adding a subdivision to
read:
new text begin Subd. 105. new text end
new text begin Elderly living facility. new text end
new text begin
An elderly living facility is exempt from taxation if
it meets all of the following requirements:
new text end
new text begin
(1) the facility is located in a city of the first class with a population of fewer than
110,000;
new text end
new text begin
(2) the facility is owned and operated by a nonprofit organization with tax exempt status
under section 501(c)(3) of the Internal Revenue Code;
new text end
new text begin
(3) construction of the facility was completed between January 1, 1963, and January 1,
1964;
new text end
new text begin
(4) the facility is an assisted living facility licensed by the state of Minnesota;
new text end
new text begin
(5) residents of the facility must be (i) at least 55 years of age, or (ii) disabled; and
new text end
new text begin
(6) at least 30 percent of the units in the facility are occupied by persons whose annual
income does not exceed 50 percent of the median family income for the area.
new text end
new text begin
For assessment year 2022 only, an exemption application under this section must be filed
with the county assessor by June 15, 2023.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with taxes payable in 2023.
new text end
Sec. 5.
Minnesota Statutes 2022, section 273.11, subdivision 12, is amended to read:
Subd. 12.
Community land trusts.
(a) A community land trust, as defined under chapter
462A, is (i) a community-based nonprofit corporation organized under chapter 317A, which
qualifies for tax exempt status under 501(c)(3), or (ii) a "city" as defined in section 462C.02,
subdivision 6, which has received funding from the Minnesota housing finance agency for
purposes of the community land trust program. The Minnesota Housing Finance Agency
shall set the criteria for community land trusts.
(b) Before the community land trust can rent or sell a unit to an applicant, the community
land trust shall verify to the satisfaction of the administering agency or the city that the
family income of each person or family applying for a unit in the community land trust
building is within the income criteria provided in section 462A.30, subdivision 9. The
administering agency or the city shall verify to the satisfaction of the county assessor that
the occupant meets the income criteria under section 462A.30, subdivision 9. The property
tax benefits under paragraph (c) shall be granted only to property owned or rented by persons
or families within the qualifying income limits. The family income criteria and verification
is only necessary at the time of initial occupancy in the property.
(c) A unit which is owned by the occupant and used as a homestead by the occupant
qualifies for homestead treatment as class 1a under section 273.13, subdivision 22new text begin , or class
4d if the requirements of section 273.13, subdivision 25, paragraph (e), clause (2), are metnew text end .
A unit which is rented by the occupant and used as a homestead by the occupant shall be
class 4a or 4b property, under section 273.13, subdivision 25, whichever is applicable. Any
remaining portion of the property not used for residential purposes shall be classified by
the assessor in the appropriate class based upon the use of that portion of the property owned
by the community land trust. The land upon which the building is located shall be assessed
at the same classification rate as the units within the building, provided that if the building
contains some units assessed as class 1a new text begin or class 4d new text end and some units assessed as class 4a or
4b, the market value of the land will be assessed in the same proportions as the value of the
building.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2024
and thereafter.
new text end
Sec. 6.
Minnesota Statutes 2022, 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 classification rate of 1.25 percent.
(b) Class 4b includes:
(1) residential real estate containing less than four units, including property rented as a
short-term rental property for more than 14 days in the preceding year, 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.
For the purposes of this paragraph, "short-term rental property" means nonhomestead
residential real estate rented for periods of less than 30 consecutive days.
The market value of class 4b property has a classification rate of 1.25 percent.
(c) Class 4bb includes:
(1) nonhomestead residential real estate containing one unit, other than seasonal
residential recreational property;
(2) a single family dwelling, garage, and surrounding one acre of property on a
nonhomestead farm classified under subdivision 23, paragraph (b); and
(3) a condominium-type storage unit having an individual property identification number
that is not used for a commercial purpose.
Class 4bb property has the same classification 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 commercial temporary and seasonal residential occupancy for recreation purposes,
for not more 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. 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 under this
clause, either (i) the business located on the property must provide recreational activities,
at least 40 percent of the annual gross lodging receipts related to the property must be from
business conducted during 90 consecutive days, and either (A) 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 (B) at least 20 percent of the annual gross receipts must be from charges for
providing recreational activities, 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. For purposes of item
(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c
property 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. In order for a property to qualify for
classification under this clause, the owner 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 4c. 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;
(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 items (ii) and (iii), (ii) manufactured home parks as
defined in section 327.14, subdivision 3, that are described in section 273.124, subdivision
3a, and (iii) class I manufactured home parks as defined in section 327C.015, subdivision
2;
(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: (i) is located on a lake as defined under
section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) 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 item (ii). 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;
(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 property; and
(12) real and personal property devoted to noncommercial temporary and seasonal
residential occupancy for recreation purposes.
Class 4c property has a classification rate of 1.5 percent of market value, except that (i)
each parcel of noncommercial seasonal residential recreational property under clause (12)
has the same classification rates as class 4bb property, (ii) manufactured home parks assessed
under clause (5), item (i), have the same classification rate as class 4b property, the market
value of manufactured home parks assessed under clause (5), item (ii), have a classification
rate of 0.75 percent if more than 50 percent of the lots in the park are occupied by
shareholders in the cooperative corporation or association and a classification rate of one
percent if 50 percent or less of the lots are so occupied, and class I manufactured home
parks as defined in section 327C.015, subdivision 2, have a classification rate of 1.0 percent,
(iii) commercial-use seasonal residential recreational property and marina recreational land
as described in clause (11), has a classification 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 classification rate of one percent, (v) the market value
of property described in clauses (2), (6), and (10) has a classification rate of 1.25 percent,
(vi) that portion of the market value of property in clause (9) qualifying for class 4c property
has a classification rate of 1.25 percent, and (vii) property qualifying for classification under
clause (3) that is owned or operated by a congressionally chartered veterans organization
has a classification rate of one percent. The commissioner of veterans affairs must provide
a list of congressionally chartered veterans organizations to the commissioner of revenue
by June 30, 2017, and by January 1, 2018, and each year thereafter.
(e) Class 4d property deleted text begin isdeleted text end new text begin includes:
new text end
new text begin (1)new text end 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 4dnew text begin (1)new text end . The remaining portion of the building shall be classified by the assessor
based upon its use. Class 4dnew text begin (1)new text end 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 4dnew text begin (1)new text end , the market value determined by the assessor must be based on the
normal approach to value using normal unrestricted rentsdeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(2) a unit that is owned by the occupant and used as a homestead by the occupant, and
otherwise meets all the requirements for community land trust property under section 273.11,
subdivision 12, provided that by December 31 of each assessment year, the community land
trust certifies to the assessor that (i) the community land trust owns the real property on
which the unit is located, and (ii) the unit owner is a member in good standing of the
community land trust. For all units qualifying as class 4d(2), the market value determined
by the assessor must be based on the normal approach to value without regard to any
restrictions that apply because the unit is a community land trust property.
new text end
(f) The first tier of market value of class 4dnew text begin (1)new text end property has a classification rate of 0.75
percent. The remaining value of class 4dnew text begin (1)new text end property has a classification rate of 0.25 percent.
For the purposes of this paragraph, the "first tier of market value of class 4dnew text begin (1)new text end property"
means the market value of each housing unit up to the first tier limit. For the purposes of
this paragraph, all class 4d property value must be assigned to individual housing units. The
first tier limit is $100,000 for assessment years 2022 and 2023. For subsequent assessment
years, the limit is adjusted each year by the average statewide change in estimated market
value of property classified as class 4a and 4d under this section for the previous assessment
year, excluding valuation change due to new construction, rounded to the nearest $1,000,
provided, however, that the limit may never be less than $100,000. Beginning with
assessment year 2015, the commissioner of revenue must certify the limit for each assessment
year by November 1 of the previous year.new text begin Class 4d(2) property has a classification rate of
0.75 percent.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2024
and thereafter.
new text end
Sec. 7.
Minnesota Statutes 2022, section 273.13, subdivision 34, is amended to read:
Subd. 34.
Homestead of veteran with a disability or family caregiver.
(a) All or a
portion of the market value of property owned by a veteran and serving as the veteran's
homestead under this section is excluded in determining the property's taxable market value
if the veteran has a service-connected disability of 70 percent or more as certified by the
United States Department of Veterans Affairs. 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
papers.
(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 veteran with a disability 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 until such time as the
spouse remarries, or sells, transfers, or otherwise disposes of the property, except as otherwise
provided in paragraph (n). Qualification under this paragraph requires an application under
paragraph (h), and a spouse must notify the assessor if there is a change in the spouse's
marital status, ownership of the property, or use of the property as a permanent residence.
(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), until such time as the spouse remarries or
sells, transfers, or otherwise disposes of the property, except as otherwise provided in
paragraph (n).
(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).
(f) 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.
(g) A property qualifying for a valuation exclusion under this subdivision is not eligible
for the market value exclusion under subdivision 35, or classification under subdivision 22,
paragraph (b).
(h) To qualify for a valuation exclusion under this subdivision a property owner must
apply to the assessor by December 31 of the first assessment year for which the exclusion
is sought. Except as provided in paragraph (c), the owner of a property that has been accepted
for a valuation exclusion must notify the assessor if there is a change in ownership of the
property or in the use of the property as a homestead.
(i) A first-time application by a qualifying spouse for the market value exclusion under
paragraph (d) must be made any time within two years of the death of the service member.
(j) For purposes of this subdivision:
(1) "active service" has the meaning given in section 190.05;
(2) "own" means that the person's name is present as an owner on the property deed;
(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
(4) "veteran" has the meaning given the term in section 197.447.
(k) If a veteran deleted text begin dying after December 31, 2011,deleted text end did not apply for or receive the exclusion
under paragraph (b), clause (2), before dying,new text begin or the exclusion under paragraph (b), clause
(2), did not exist at the time of the veterans death,new text end the veteran's spouse is entitled to the
benefit under paragraph (b), clause (2), until the spouse remarries or sells, transfers, or
otherwise disposes of the property, except as otherwise provided in paragraph (n), if:
(1) the spouse files a first-time application deleted text begin within two years of the death of the service
member or by June 1, 2019, whichever is laterdeleted text end ;
(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the
homestead and permanently resides there;
(3) the veteran met the honorable discharge requirements of paragraph (a); and
(4) the United States Department of Veterans Affairs certifies that:
(i) the veteran met the total (100 percent) and permanent disability requirement under
paragraph (b), clause (2); or
(ii) the spouse has been awarded dependency and indemnity compensation.
(l) The purpose of this provision of law providing a level of homestead property tax
relief for veterans with a disability, 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.
(m) By July 1, the county veterans service officer must certify the disability rating and
permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.
(n) A spouse who received the benefit in paragraph (c), (d), or (k) but no longer holds
the legal or beneficial title to the property may continue to receive the exclusion for a
property other than the property for which the exclusion was initially granted until the spouse
remarries or sells, transfers, or otherwise disposes of the property, provided that:
(1) the spouse applies under paragraph (h) for the continuation of the exclusion allowed
under this paragraph;
(2) the spouse holds the legal or beneficial title to the property for which the continuation
of the exclusion is sought under this paragraph, and permanently resides there;
(3) the estimated market value of the property for which the exclusion is sought under
this paragraph is less than or equal to the estimated market value of the property that first
received the exclusion, based on the value of each property on the date of the sale of the
property that first received the exclusion; and
(4) the spouse has not previously received the benefit under this paragraph for a property
other than the property for which the exclusion is sought.
new text begin
(o) If a spouse had previously qualified under paragraph (c) or (d) and the exclusion
expired prior to taxes payable in 2020, the spouse may reapply under this section for the
exclusion under paragraph (c) or (d).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2023.
new text end
Sec. 8.
Minnesota Statutes 2022, section 273.13, subdivision 35, is amended to read:
Subd. 35.
Homestead market value exclusion.
(a) Prior to determining a property's
net tax capacity under this section, property classified asnew text begin 4d(2) under subdivision 25,
paragraph (e), clause (2),new text end 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).
(b) For a homestead valued at deleted text begin $76,000deleted text end new text begin $80,300new text end or less, the exclusion is 40 percent of
market value. For a homestead valued between deleted text begin $76,000deleted text end new text begin $80,300new text end and deleted text begin $413,800deleted text end new text begin $437,100new text end ,
the exclusion is deleted text begin $30,400deleted text end new text begin $32,120new text end minus nine percent of the valuation over deleted text begin $76,000deleted text end new text begin $80,300new text end .
For a homestead valued at deleted text begin $413,800deleted text end new text begin $437,100new text end 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.
(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.
(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 begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2024 and thereafter.
new text end
Sec. 9.
Minnesota Statutes 2022, section 290A.03, subdivision 6, is amended to read:
Subd. 6.
Homestead.
"Homestead" means the dwelling occupied as the claimant's
principal residence and so much of the land surrounding it, not exceeding ten acres, as is
reasonably necessary for use of the dwelling as a home and any other property used for
purposes of a homestead as defined in section 273.13, subdivision 22, deleted text begin exceptdeleted text end new text begin or section
273.13, subdivision 25, paragraph (e), clause (2).new text end For agricultural land assessed as part of
a homestead pursuant to section 273.13, subdivision 23, "homestead" is limited to the house
and garage and immediately surrounding one acre of land. The homestead may be owned
or rented and may be a part of a multidwelling or multipurpose building and the land on
which it is built. A manufactured home, as defined in section 273.125, subdivision 8, or a
park trailer taxed as a manufactured home under section 168.012, subdivision 9, assessed
as personal property may be a dwelling for purposes of this subdivision.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for refund claims based on taxes payable
in 2025 and thereafter.
new text end
Sec. 10.
Minnesota Statutes 2022, section 290B.03, subdivision 1, is amended to read:
Subdivision 1.
Program qualifications.
The qualifications for the senior citizens'
property tax deferral program are as follows:
(1) the property must be owned and occupied as a homestead by a person 65 years of
age or older. In the case of a married couple, at least one of the spouses must be at least 65
years old at the time the first property tax deferral is granted, regardless of whether the
property is titled in the name of one spouse or both spouses, or titled in another way that
permits the property to have homestead status, and the other spouse must be at least 62 years
of age;
(2) the total household income of the qualifying homeowners, as defined in section
290A.03, subdivision 5, for the calendar year preceding the year of the initial application
may not exceed deleted text begin $60,000deleted text end new text begin $96,000new text end ;
(3) the homestead must have been owned and occupied as the homestead of at least one
of the qualifying homeowners for at least deleted text begin 15deleted text end new text begin fivenew text end years prior to the year the initial application
is filed;
(4) there are no state or federal tax liens or judgment liens on the homesteaded property;
(5) there are no mortgages or other liens on the property that secure future advances,
except for those subject to credit limits that result in compliance with clause (6); and
(6) the total unpaid balances of debts secured by mortgages and other liens on the
property, including unpaid and delinquent special assessments and interest and any delinquent
property taxes, penalties, and interest, but not including property taxes payable during the
year or debts secured by a residential PACE lien, as defined in section 216C.435, subdivision
10d, does not exceed 75 percent of the assessor's estimated market value for the year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for applications for deferral of taxes
payable in 2024 and thereafter.
new text end
Sec. 11.
Minnesota Statutes 2022, section 290B.04, subdivision 3, is amended to read:
Subd. 3.
Excess-income certification by taxpayer.
A taxpayer whose initial application
has been approved under subdivision 2 shall notify the commissioner of revenue in writing
by July 1 if the taxpayer's household income for the preceding calendar year exceeded
deleted text begin $60,000deleted text end new text begin $96,000new text end . The certification must state the homeowner's total household income for
the previous calendar year. No property taxes may be deferred under this chapter in any
year following the year in which a program participant filed or should have filed an
excess-income certification under this subdivision, unless the participant has filed a
resumption of eligibility certification as described in subdivision 4.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for applications for deferral of taxes
payable in 2024 and thereafter.
new text end
Sec. 12.
Minnesota Statutes 2022, section 290B.04, subdivision 4, is amended to read:
Subd. 4.
Resumption of eligibility certification by taxpayer.
A taxpayer who has
previously filed an excess-income certification under subdivision 3 may resume program
participation if the taxpayer's household income for a subsequent year is deleted text begin $60,000deleted text end new text begin $96,000new text end
or less. If the taxpayer chooses to resume program participation, the taxpayer must notify
the commissioner of revenue in writing by July 1 of the year following a calendar year in
which the taxpayer's household income is deleted text begin $60,000deleted text end new text begin $96,000new text end or less. The certification must
state the taxpayer's total household income for the previous calendar year. Once a taxpayer
resumes participation in the program under this subdivision, participation will continue until
the taxpayer files a subsequent excess-income certification under subdivision 3 or until
participation is terminated under section 290B.08, subdivision 1.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for applications for deferral of taxes
payable in 2024 and thereafter.
new text end
Sec. 13.
Minnesota Statutes 2022, section 290B.05, subdivision 1, is amended to read:
Subdivision 1.
Determination by commissioner.
The commissioner shall determine
each qualifying homeowner's "annual maximum property tax amount" following approval
of the homeowner's initial application and following the receipt of a resumption of eligibility
certification. The "annual maximum property tax amount" equals three percent of the
homeowner's total household income for the year preceding either the initial application or
the resumption of eligibility certification, whichever is applicable. Following approval of
the initial application, the commissioner shall determine the qualifying homeowner's
"maximum allowable deferral." No tax may be deferred relative to the appropriate assessment
year for any homeowner whose total household income for the previous year exceeds
deleted text begin $60,000deleted text end new text begin $96,000new text end . No tax shall be deferred in any year in which the homeowner does not
meet the program qualifications in section 290B.03. The maximum allowable total deferral
is equal to 75 percent of the assessor's estimated market value for the year, less the balance
of any mortgage loans and other amounts secured by liens against the property at the time
of application, including any unpaid and delinquent special assessments and interest and
any delinquent property taxes, penalties, and interest, but not including property taxes
payable during the year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for applications for deferral of taxes
payable in 2024 and thereafter.
new text end
Sec. 14. new text begin NORTHWEST MINNESOTA MULTI-COUNTY HOUSING AND
REDEVELOPMENT AUTHORITY; LEVY AUTHORITY.
new text end
new text begin
Notwithstanding any law to the contrary, Laws 2008, chapter 366, article 5, section 33,
the effective date, as amended by Laws 2013, chapter 143, article 4, section 35, and Laws
2019, First Special Session chapter 6, article 4, section 31, is effective for taxes levied in
2008, payable in 2009, and is repealed effective for taxes levied in 2033, payable in 2034,
and thereafter.
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
Northwest Minnesota Multi-County Housing and Redevelopment Authority and its chief
clerical officer comply with the requirements of Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
ARTICLE 2
MINERALS TAXES
Section 1.
Minnesota Statutes 2022, section 272.02, subdivision 73, is amended to read:
Subd. 73.
Property subject to taconite production tax or deleted text begin netdeleted text end new text begin grossnew text end proceeds tax.
(a)
Real and personal property described in section 298.25 is exempt to the extent the tax on
taconite and iron sulphides under section 298.24 is described in section 298.25 as being in
lieu of other taxes on such property. This exemption applies for taxes payable in each year
that the tax under section 298.24 is payable with respect to such property.
(b) Deposits of mineral, metal, or energy resources the mining of which is subject to
taxation new text begin or the minimum payment new text end under section 298.015 are exempt.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2023.
new text end
Sec. 2.
Minnesota Statutes 2022, section 273.1341, is amended to read:
273.1341 TACONITE ASSISTANCE AREA.
A "taconite assistance area" means the geographic area that falls within the boundaries
of a school district that contains:
(1) a municipality in which the assessed valuation of unmined iron ore on May 1, 1941,
was not less than 40 percent of the assessed valuation of all real property; deleted text begin or
deleted text end
(2) a municipality in which on January 1, 1977, or the applicable assessment date, there
is a taconite concentrating plant or where taconite is mined or quarried or where there is
located an electric generating plant which qualifies as a taconite facilitydeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(3) a municipality:
new text end
new text begin
(i) that is located in a county that contains a school district described in clause (1) or
(2); and
new text end
new text begin
(ii) where active mining of materials subject to the tax under section 298.015, subdivision
1, is occurring.
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, 2022.
new text end
Sec. 3.
Minnesota Statutes 2022, section 297A.68, subdivision 4, is amended to read:
Subd. 4.
Taconite, other ores, metals, or minerals; production materials.
Mill liners,
grinding rods, and grinding balls that are substantially consumed in the production of taconite
or other ores, metals, or minerals are exempt when sold to or stored, used, or consumed by
persons taxed under the in-lieu or deleted text begin netdeleted text end new text begin grossnew text end proceeds provisions of chapter 298.
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 2022, section 298.015, is amended to read:
298.015 deleted text begin NETdeleted text end new text begin GROSSnew text end PROCEEDS TAX ON MINING.
Subdivision 1.
Tax imposed.
A person engaged in the business of mining shall pay to
the state of Minnesota for distribution as provided in section 298.018 a deleted text begin netdeleted text end new text begin grossnew text end proceeds
tax equal to deleted text begin twodeleted text end new text begin 0.4new text end percent of the deleted text begin netdeleted text end new text begin grossnew text end proceeds from mining in Minnesota. The tax
applies to all ores, metals, and minerals mined, extracted, produced, or refined within the
state of Minnesota except for sand, silica sand, gravel, building stone, crushed rock,
limestone, granite, dimension granite, dimension stone, horticultural peat, clay, soil, iron
ore, and taconite concentrates. The tax is in addition to all other taxes provided for by law.
Subd. 2.
deleted text begin Netdeleted text end new text begin Grossnew text end proceeds.
For purposes of this section, the term "deleted text begin netdeleted text end new text begin grossnew text end proceeds"
means the gross proceeds from mining, as defined in section 298.016deleted text begin , less the deductions
for purposes of determining taxable income under section 298.01, subdivision 3b, applied
to the mining, production, processing, beneficiation, smelting, or refining of metal or mineral
products. No other credits or deductions shall apply to this taxdeleted text end .
new text begin Subd. 3. new text end
new text begin Minimum payment. new text end
new text begin
A person who has obtained all required permits to mine
all ores and metals, except for sand, silica sand, gravel, building stone, crushed rock,
limestone, granite, dimension granite, dimension stone, horticultural peat, clay, soil, iron
ore, and iron concentrates, is annually subject to the minimum payment under this
subdivision, unless the tax imposed on the individual under subdivision 1 in a given year
is greater than zero. The annual minimum payment under this subdivision is $2,000,000.
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, 2022.
new text end
Sec. 5.
Minnesota Statutes 2022, section 298.018, subdivision 1, is amended to read:
Subdivision 1.
Within taconite assistance area.
new text begin (a) new text end The proceeds of the tax paid under
sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the
taconite assistance area defined in section 273.1341, shall be allocated as follows:
(1) new text begin except as provided under paragraph (b), new text end five percent to the city or town within which
the minerals or energy resources are mined or extracted, or within which the concentrate
was produced. If the mining and concentration, or different steps in either process, are
carried on in more than one taxing district, the commissioner shall apportion equitably the
proceeds among the cities and towns by attributing 50 percent of the proceeds of the tax to
the operation of mining or extraction, and the remainder to the concentrating plant and to
the processes of concentration, and with respect to each thereof giving due consideration
to the relative extent of the respective operations performed in each taxing district;
(2) ten percent to the taconite municipal aid account to be distributed as provided in
section 298.282, subdivisions 1 and 2, on the dates provided under this section;
(3) ten percent to the school district within which the minerals or energy resources are
mined or extracted, or within which the concentrate was produced. If the mining and
concentration, or different steps in either process, are carried on in more than one school
district, distribution among the school districts must be based on the apportionment formula
prescribed in clause (1);
(4) 20 percent to a group of school districts comprised of those school districts wherein
the mineral or energy resource was mined or extracted or in which there is a qualifying
municipality as defined by section 273.134, paragraph (b), in direct proportion to school
district indexes as follows: for each school district, its pupil units determined under section
126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted
net tax capacity per pupil unit for school districts receiving aid under this clause as calculated
pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution
to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that
portion of the distribution which its index bears to the sum of the indices for all school
districts that receive the distributions;
(5) deleted text begin 20deleted text end new text begin tennew text end percent to the county within which the minerals or energy resources are mined
or extracted, or within which the concentrate was produced. If the mining and concentration,
or different steps in either process, are carried on in more than one county, distribution
among the counties must be based on the apportionment formula prescribed in clause (1),
provided that any county receiving distributions under this clause shall pay one percent of
its proceeds to the Range Association of Municipalities and Schools;
(6) deleted text begin 20deleted text end new text begin fivenew text end percent to St. Louis County acting as the counties' fiscal agent to be distributed
as provided in sections 273.134 to 273.136;
(7) deleted text begin fivedeleted text end new text begin 20new text end percent to the commissioner of Iron Range resources and rehabilitation for
the purposes of section 298.22;
(8) three percent to the Douglas J. Johnson economic protection trust fund; deleted text begin and
deleted text end
(9) seven percent to the taconite environmental protection funddeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(10) ten percent to the commissioner of Iron Range resources and rehabilitation for
capital improvements to Giants Ridge Recreation Area.
new text end
new text begin
(b) If the materials or energy resources are mined, extracted, or concentrated in School
District No. 2711, Mesabi East, then the amount under paragraph (a), clause (1), must instead
be distributed pursuant to this paragraph. The cities of Aurora, Babbitt, Ely, and Hoyt Lakes
must each receive 20 percent of the amount. The city of Biwabik and Embarrass Township
must each receive ten percent of the amount.
new text end
new text begin
(c) For the first five years that distributions are made under this subdivision, ten percent
of the total proceeds distributed in each year must first be distributed pursuant to this
paragraph. The remaining 90 percent of the total proceeds distributed in each of those years
must be distributed as outlined in paragraph (a). Of the amount available under this paragraph,
the cities of Aurora, Babbitt, Ely, and Hoyt Lakes must each receive 20 percent. Of the
amount available under this paragraph, the city of Biwabik and Embarrass Township must
each receive ten percent.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for distributions beginning after December
31, 2022.
new text end
Sec. 6.
Minnesota Statutes 2022, section 298.018, subdivision 1a, is amended to read:
Subd. 1a.
Distribution date.
The proceeds of the tax allocated under subdivision 1 shall
be distributed on December 15 each year. Any payment of proceeds received after December
15 shall be distributed on the next deleted text begin netdeleted text end new text begin grossnew text end proceeds tax distribution date.
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 2022, section 298.28, subdivision 5, is amended to read:
Subd. 5.
Counties.
(a) 21.05 cents per taxable ton deleted text begin for distributions in 2015 through 2023,
and 26.05 cents per taxable ton for distributions beginning in 2024,deleted text end is allocated to counties
to be distributed, based upon certification by the commissioner of revenue, under paragraphs
(b) to (d).
(b) 10.525 cents per taxable ton shall be distributed to the county in which the taconite
is mined or quarried or in which the concentrate is produced, less any amount which is to
be distributed pursuant to paragraph (c). The apportionment formula prescribed in subdivision
2 is the basis for the distribution.
(c) 1.0 cent per taxable ton of the tax distributed to the counties under paragraph (b)
shall be paid to a county that received a distribution under this section in 2000 because there
was located in the county an electric power plant owned by and providing the primary source
of power for a taxpayer mining and concentrating taconite in a different county.
(d) 10.525 cents per taxable ton deleted text begin for distributions in 2015 through 2023, and 15.525 cents
per taxable ton for distributions beginning in 2024,deleted text end shall be paid to the county from which
the taconite was mined, quarried or concentrated to be deposited in the county road and
bridge fund. If the mining, quarrying and concentrating, or separate steps in any of those
processes are carried on in more than one county, the commissioner shall follow the
apportionment formula prescribed in subdivision 2.
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 2022, section 298.28, subdivision 7a, is amended to read:
Subd. 7a.
Iron Range school consolidation and cooperatively operated school
account.
(a) The following amounts must be allocated to the commissioner of Iron Range
resources and rehabilitation to be deposited in the Iron Range school consolidation and
cooperatively operated school account that is hereby created:
(1)deleted text begin (i)deleted text end for distributionsnew text begin beginningnew text end in 2015 deleted text begin through 2023deleted text end , ten cents per taxable ton of the
tax imposed under section 298.24; deleted text begin and
deleted text end
deleted text begin
(ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed
under section 298.24;
deleted text end
(2) the amount as determined under section 298.17, paragraph (b), clause (3); and
(3) any other amount as provided by law.
(b) Expenditures from this account may be approved as ongoing annual expenditures
and shall be made only to provide disbursements to assist school districts with the payment
of bonds that were issued for qualified school projects, or for any other school disbursement
as approved by the commissioner of Iron Range resources and rehabilitation after consultation
with the Iron Range Resources and Rehabilitation Board. For purposes of this section,
"qualified school projects" means school projects within the taconite assistance area as
defined in section 273.1341, that were (1) approved, by referendum, after April 3, 2006;
and (2) approved by the commissioner of education pursuant to section 123B.71.
(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for
bonds issued under section 123A.482, subdivision 9, must be increased each year to offset
any reduction in debt service equalization aid that the school district qualifies for in that
year, under section 123B.53, subdivision 6, compared with the amount the school district
qualified for in fiscal year 2018.
(d) No expenditure under this section shall be made unless approved by the commissioner
of Iron Range resources and rehabilitation after consultation with the Iron Range Resources
and Rehabilitation Board.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 9.
Minnesota Statutes 2022, section 298.296, subdivision 4, is amended to read:
Subd. 4.
Temporary loan authority.
(a) After consultation with the advisory board,
the commissioner may use up to $7,500,000 from the corpus of the trust for loans, loan
guarantees, grants, or equity investments as provided in this subdivision. The money would
be available for loans for construction and equipping of facilities constituting (1) a value
added iron products plant, which may be either a new plant or a facility incorporated into
an existing plant that produces iron upgraded to a minimum of 75 percent iron content or
any iron alloy with a total minimum metallic content of 90 percent; or (2) a new mine or
minerals processing plant for any mineral subject to the deleted text begin netdeleted text end new text begin grossnew text end proceeds tax imposed
under section 298.015. A loan or loan guarantee under this paragraph may not exceed
$5,000,000 for any facility.
(b) Additionally, the commissioner, after consultation with the advisory board, may use
up to $5,500,000 from the corpus of the trust for additional grants, loans, loan guarantees,
or equity investments for the purposes set forth in paragraph (a).
(c) The commissioner, after consultation with the advisory board, may require that the
fund receive an equity percentage in any project to which it contributes under 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 begin TRANSFER 2023 DISTRIBUTION ONLY.
new text end
new text begin
The fund established under Minnesota Statutes, section 298.28, subdivision 7, shall
receive the excess balance remaining in the fund established under Minnesota Statutes,
section 298.28, subdivision 6, after the distribution of amounts required under Minnesota
Statutes, section 298.28, subdivision 6, for the 2023 distribution. The transfer amount under
this section must not exceed $6,000,000 and must be made within ten days of the August
2023 payment.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies only to the 2023 distribution.
new text end
ARTICLE 3
PROPERTY TAX AIDS, CREDITS, AND REFUNDS
Section 1.
Minnesota Statutes 2022, section 273.1392, is amended to read:
273.1392 PAYMENT; SCHOOL DISTRICTS.
The amounts of bovine tuberculosis credit reimbursements under section 273.113;
conservation tax credits under section 273.119; disaster or emergency reimbursement under
sections 273.1231 to 273.1235; agricultural credits under sections 273.1384 and 273.1387;
aids and credits under section 273.1398; enterprise zone property credit payments under
section 469.171; deleted text begin anddeleted text end metropolitan agricultural preserve reduction under section 473H.10new text begin ;
and electric generation transition aid under section 477A.25new text end for school districts, shall be
certified to the Department of Education by the Department of Revenue. The amounts so
certified shall be paid according to section 127A.45, subdivisions 9, 10, and 13.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2024.
new text end
Sec. 2.
Minnesota Statutes 2022, section 290A.04, subdivision 2, is amended to read:
Subd. 2.
Homeowners; homestead credit refund.
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.
| Household Income |
Percent of Income |
Percent Paid by Claimant |
Maximum State Refund |
|
|
deleted text begin
$0 to 1,739 deleted text end new text begin $0 to 2,079 new text end |
1.0 percent |
deleted text begin
15 percent deleted text end new text begin 10 percent new text end |
$ |
deleted text begin
2,770 deleted text end new text begin 3,310 new text end |
|
deleted text begin
1,740 to 3,459 deleted text end new text begin 2,080 to 4,139 new text end |
1.1 percent |
deleted text begin
15 percent deleted text end new text begin 10 percent new text end |
$ |
deleted text begin
2,770 deleted text end new text begin 3,310 new text end |
|
deleted text begin
3,460 to 5,239 deleted text end new text begin 4,140 to 6,269 new text end |
1.2 percent |
deleted text begin
15 percent deleted text end new text begin 10 percent new text end |
$ |
deleted text begin
2,770 deleted text end new text begin 3,310 new text end |
|
deleted text begin
5,240 to 6,989 deleted text end new text begin 6,270 to 8,369 new text end |
1.3 percent |
deleted text begin
20 percent deleted text end new text begin 15 percent new text end |
$ |
deleted text begin
2,770 deleted text end new text begin 3,310 new text end |
|
deleted text begin
6,990 to 8,719 deleted text end new text begin 8,370 to 10,439 new text end |
1.4 percent |
deleted text begin
20 percent deleted text end new text begin 15 percent new text end |
$ |
deleted text begin
2,770 deleted text end new text begin 3,310 new text end |
|
deleted text begin
8,720 to 12,219 deleted text end new text begin 10,440 to 14,619 new text end |
1.5 percent |
deleted text begin
20 percent deleted text end new text begin 15 percent new text end |
$ |
deleted text begin
2,770 deleted text end new text begin 3,310 new text end |
|
deleted text begin
12,220 to 13,949 deleted text end new text begin 14,620 to 16,689 new text end |
1.6 percent |
deleted text begin
20 percent deleted text end new text begin 15 percent new text end |
$ |
deleted text begin
2,770 deleted text end new text begin 3,310 new text end |
|
deleted text begin
13,950 to 15,709 deleted text end new text begin 16,690 to 18,799 new text end |
1.7 percent |
deleted text begin
20 percent deleted text end new text begin 15 percent new text end |
$ |
deleted text begin
2,770 deleted text end new text begin 3,310 new text end |
|
deleted text begin
15,710 to 17,449 deleted text end new text begin 18,800 to 20,879 new text end |
1.8 percent |
deleted text begin
20 percent deleted text end new text begin 15 percent new text end |
$ |
deleted text begin
2,770 deleted text end new text begin 3,310 new text end |
|
deleted text begin
17,450 to 19,179 deleted text end new text begin 20,880 to 22,949 new text end |
1.9 percent |
deleted text begin
25 percent deleted text end new text begin 20 percent new text end |
$ |
deleted text begin
2,770 deleted text end new text begin 3,310 new text end |
|
deleted text begin
19,180 to 24,429 deleted text end new text begin 22,950 to 29,239 new text end |
2.0 percent |
deleted text begin
25 percent deleted text end new text begin 20 percent new text end |
$ |
deleted text begin
2,770 deleted text end new text begin 3,310 new text end |
|
deleted text begin
24,430 to 26,169 deleted text end new text begin 29,240 to 31,319 new text end |
2.0 percent |
deleted text begin
30 percent deleted text end new text begin 25 percent new text end |
$ |
deleted text begin
2,770 deleted text end new text begin 3,310 new text end |
|
deleted text begin
26,170 to 29,669 deleted text end new text begin 31,320 to 35,509 new text end |
2.0 percent |
deleted text begin
30 percent deleted text end new text begin 25 percent new text end |
$ |
deleted text begin
2,770 deleted text end new text begin 3,310 new text end |
|
deleted text begin
29,670 to 41,859 deleted text end new text begin 35,510 to 50,099 new text end |
2.0 percent |
deleted text begin
35 percent deleted text end new text begin 30 percent new text end |
$ |
deleted text begin
2,770 deleted text end new text begin 3,310 new text end |
|
deleted text begin
41,860 to 61,049 deleted text end new text begin 50,100 to 73,059 new text end |
2.0 percent |
deleted text begin
35 percent deleted text end new text begin 30 percent new text end |
$ |
deleted text begin
2,240 deleted text end new text begin 2,680 new text end |
|
deleted text begin
61,050 to 69,769 deleted text end new text begin 73,060 to 83,499 new text end |
2.0 percent |
deleted text begin
40 percent deleted text end new text begin 35 percent new text end |
$ |
deleted text begin
1,960 deleted text end new text begin 2,350 new text end |
|
deleted text begin
69,770 to 78,499 deleted text end new text begin 83,500 to 93,939 new text end |
2.1 percent |
deleted text begin
40 percent deleted text end new text begin 35 percent new text end |
$ |
deleted text begin
1,620 deleted text end new text begin 1,940 new text end |
|
deleted text begin
78,500 to 87,219 deleted text end new text begin 93,940 to 104,379 new text end |
2.2 percent |
deleted text begin
40 percent deleted text end new text begin 35 percent new text end |
$ |
deleted text begin
1,450 deleted text end new text begin 1,740 new text end |
|
deleted text begin
87,220 to 95,939 deleted text end new text begin 104,380 to 114,819 new text end |
2.3 percent |
deleted text begin
40 percent deleted text end new text begin 35 percent new text end |
$ |
deleted text begin
1,270 deleted text end new text begin 1,520 new text end |
|
deleted text begin
95,940 to 101,179 deleted text end new text begin 114,820 to 121,089 new text end |
2.4 percent |
deleted text begin
45 percent deleted text end new text begin 40 percent new text end |
$ |
deleted text begin
1,070 deleted text end new text begin 1,280 new text end |
|
deleted text begin
101,180 to 104,689 deleted text end new text begin 121,090 to 125,289 new text end |
2.5 percent |
deleted text begin
45 percent deleted text end new text begin 40 percent new text end |
$ |
deleted text begin
890 deleted text end new text begin 1,070 new text end |
|
deleted text begin
104,690 to 108,919 deleted text end new text begin 125,290 to 130,349 new text end |
2.5 percent |
deleted text begin
50 percent deleted text end new text begin 45 percent new text end |
$ |
deleted text begin
730 deleted text end new text begin 870 new text end |
|
deleted text begin
108,920 to 113,149 deleted text end new text begin 130,350 to 135,409 new text end |
2.5 percent |
deleted text begin
50 percent deleted text end new text begin 45 percent new text end |
$ |
deleted text begin
540 deleted text end new text begin 650 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 $113,150deleted text end new text begin
$135,410new text end or more.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on property taxes payable
in 2024 and following years.
new text end
Sec. 3.
Minnesota Statutes 2022, section 290A.04, subdivision 4, is amended to read:
Subd. 4.
Inflation adjustment.
The commissioner shall annually adjust the dollar
amounts of the income thresholds and the maximum refunds under subdivisions 2 and 2a
as provided in section 270C.22. new text begin The statutory year for subdivision 2 is 2023. new text end The statutory
year new text begin for subdivision 2a new text end is 2018.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on property taxes payable
in 2025 and thereafter.
new text end
Sec. 4.
Minnesota Statutes 2022, section 477A.011, is amended by adding a subdivision
to read:
new text begin Subd. 3b. new text end
new text begin Population age 65 and over. new text end
new text begin
"Population age 65 and over" means the
population age 65 and over established as of July 15 in an aid calculation year by the most
recent federal census, by a special census conducted under contract with the United States
Bureau of the Census, by a population estimate made by the Metropolitan Council, or by a
population estimate of the state demographer made pursuant to section 4A.02, whichever
is the most recent as to the stated date of the count or estimate for the preceding calendar
year and which has been certified to the commissioner of revenue on or before July 15 of
the aid calculation year. A revision to an estimate or count is effective for these purposes
only if certified to the commissioner on or before July 15 of the aid calculation year. Clerical
errors in the certification or use of estimates and counts established as of July 15 in the aid
calculation year are subject to correction within the time periods allowed under section
477A.014.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2024
and thereafter.
new text end
Sec. 5.
Minnesota Statutes 2022, section 477A.011, is amended by adding a subdivision
to read:
new text begin Subd. 3c. new text end
new text begin Transformed population. new text end
new text begin
"Transformed population" means the logarithm to
the base 10 of the population.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2024
and thereafter.
new text end
Sec. 6.
Minnesota Statutes 2022, section 477A.011, subdivision 34, is amended to read:
Subd. 34.
City revenue need.
(a) For a city with a population equal to or greater than
10,000, "city revenue need" is 1.15 times the sum of (1) deleted text begin 4.59deleted text end new text begin 8.572new text end times the pre-1940
housing percentage; plus (2) deleted text begin 0.622 times the percent of housing built between 1940 and
1970deleted text end new text begin 11.494 times the city age indexnew text end ; plus (3) deleted text begin 169.415 times the jobs per capitadeleted text end new text begin 5.719 times
the commercial industrial utility percentagenew text end ; plus (4) deleted text begin the sparsity adjustmentdeleted text end new text begin 9.484 times
peak population declinenew text end ; plus (5) deleted text begin 307.664deleted text end new text begin 293.056new text end .
(b) For a city with a population equal to or greater than 2,500 and less than 10,000, "city
revenue need" is 1.15 times the sum of (1) deleted text begin 572.62deleted text end new text begin 497.308new text end ; plus (2) deleted text begin 5.026deleted text end new text begin 6.667new text end times the
pre-1940 housing percentage; deleted text begin minusdeleted text end new text begin plusnew text end (3) deleted text begin 53.768 times household sizedeleted text end new text begin 9.215 times the
commercial industrial utility percentagenew text end ; plus (4) deleted text begin 14.022deleted text end new text begin 16.081new text end times peak population
declinedeleted text begin ; plus (5) the sparsity adjustmentdeleted text end .
(c) For a city with a population less than 2,500, "city revenue need" is the sum of (1)
deleted text begin 410deleted text end new text begin 196.487new text end ; plus (2) deleted text begin 0.367deleted text end new text begin 220.877new text end times the city's new text begin transformed new text end population deleted text begin over 100; plus
(3) the sparsity adjustment. The city revenue need for a city under this paragraph shall not
exceed 630 plus the city's sparsity adjustmentdeleted text end .
(d) For a city with a population of at least 2,500 but less than 3,000, the "city revenue
need" equals (1) the transition factor times the city's revenue need calculated in paragraph
(b); plus (2) deleted text begin 630deleted text end new text begin the city's revenue need calculated under the formula in paragraph (c)new text end times
the difference between one and the transition factor. For a city with a population of at least
10,000 but less than 11,000, the "city revenue need" equals (1) the transition factor times
the city's revenue need calculated in paragraph (a); plus (2) the city's revenue need calculated
under the formula in paragraph (b) times the difference between one and the transition
factor. For purposes of the first sentence of this paragraph "transition factor" is 0.2 percent
times the amount that the city's population exceeds the minimum threshold. For purposes
of the second sentence of this paragraph, "transition factor" is 0.1 percent times the amount
that the city's population exceeds the minimum threshold.
(e) The city revenue need cannot be less than zero.
(f) For calendar year deleted text begin 2015deleted text end new text begin 2024new text end and subsequent years, the city revenue need for a city,
as determined in paragraphs (a) to (e), is multiplied by the ratio of the annual implicit price
deflator for government consumption expenditures and gross investment for state and local
governments as prepared by the United States Department of Commerce, for the most
recently available year to the deleted text begin 2013deleted text end new text begin 2022new text end implicit price deflator for state and local government
purchases.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2024
and thereafter.
new text end
Sec. 7.
Minnesota Statutes 2022, section 477A.011, is amended by adding a subdivision
to read:
new text begin Subd. 46. new text end
new text begin City age index. new text end
new text begin
"City age index" means 100 times the ratio of (1) the population
age 65 and over within the city, to (2) the population of the city.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2024
and thereafter.
new text end
Sec. 8.
Minnesota Statutes 2022, section 477A.011, is amended by adding a subdivision
to read:
new text begin Subd. 47. new text end
new text begin Commercial industrial utility percentage. new text end
new text begin
The "commercial industrial utility
percentage" for a city is 100 times the ratio of (1) the sum of the estimated market values
of all real and personal property in the city classified as class 3 under section 273.13,
subdivision 24, to (2) the total market value of all taxable real and personal property in the
city. The market values are the amounts computed before any adjustments for fiscal
disparities under section 276A.06 or 473F.08. The market values used for this subdivision
are not equalized.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2024
and thereafter.
new text end
Sec. 9.
Minnesota Statutes 2022, section 477A.0124, subdivision 2, is amended to read:
Subd. 2.
Definitions.
(a) For the purposes of this section, the following terms have the
meanings given them.
(b) "County program aid" means the sum of "county need aid," "county tax base
equalization aid," and "county transition aid."
(c) "Age-adjusted population" means a county's population multiplied by the county age
index.
(d) "County age index" means the percentage of the population age 65 and over within
the county divided by the percentage of the population age 65 and over within the state,
except that the age index for any county may not be greater than 1.8 nor less than 0.8.
(e) "Population age 65 and over" deleted text begin means the population age 65 and over established as
of July 15 in an aid calculation year by the most recent federal census, by a special census
conducted under contract with the United States Bureau of the Census, by a population
estimate made by the Metropolitan Council, or by a population estimate of the state
demographer made pursuant to section 4A.02, whichever is the most recent as to the stated
date of the count or estimate for the preceding calendar year and which has been certified
to the commissioner of revenue on or before July 15 of the aid calculation year. A revision
to an estimate or count is effective for these purposes only if certified to the commissioner
on or before July 15 of the aid calculation year. Clerical errors in the certification or use of
estimates and counts established as of July 15 in the aid calculation year are subject to
correction within the time periods allowed under section 477A.014deleted text end new text begin has the meaning given
in section 477A.011, subdivision 3bnew text end .
(f) "Part I crimes" means the three-year average annual number of Part I crimes reported
for each county by the Department of Public Safety for the most recent years available. By
July 1 of each year, the commissioner of public safety shall certify to the commissioner of
revenue the number of Part I crimes reported for each county for the three most recent
calendar years available.
(g) "Households receiving Supplemental Nutrition Assistance Program (SNAP) benefits"
means the average monthly number of households receiving SNAP benefits for the three
most recent years for which data is available. By July 1 of each year, the commissioner of
human services must certify to the commissioner of revenue the average monthly number
of households in the state and in each county that receive SNAP benefits, for the three most
recent calendar years available.
(h) "County net tax capacity" means the county's adjusted net tax capacity under section
273.1325.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2024
and thereafter.
new text end
Sec. 10.
Minnesota Statutes 2022, section 477A.013, subdivision 8, is amended to read:
Subd. 8.
City formula aid.
(a) For aids payable in deleted text begin 2018deleted text end new text begin 2024new text end and thereafter, the formula
aid for a city is equal to the product of (1) the difference between its unmet need and its
certified aid in the previous year deleted text begin and before any aid adjustment under subdivision 13deleted text end , and
(2) the aid gap percentage.
(b) The applicable aid gap percentage must be calculated by the Department of Revenue
so that the total of the aid under subdivision 9 equals the total amount available for aid under
section 477A.03. The aid gap percentage must be the same for all cities subject to paragraph
(a). Data used in calculating aids to cities under sections 477A.011 to 477A.013 shall be
the most recently available data as of January 1 in the year in which the aid is calculated.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2024
and thereafter.
new text end
Sec. 11.
Minnesota Statutes 2022, section 477A.013, subdivision 9, is amended to read:
Subd. 9.
City aid distribution.
(a) In calendar year deleted text begin 2018deleted text end new text begin 2024new text end and thereafter, if a city's
certified aid deleted text begin before any aid adjustment under subdivision 13deleted text end for the previous year is less
than its current unmet need, the city shall receive an aid distribution equal to the sum of (1)
its certified aid in the previous year deleted text begin before any aid adjustment under subdivision 13deleted text end , new text begin and
new text end (2) the city formula aid under subdivision 8deleted text begin , and (3) its aid adjustment under subdivision
13deleted text end .
(b) deleted text begin For aids payable in 2020 only, no city's aid amount before any adjustment under
subdivision 13 may be less than its pay 2019 certified aid amount, less any aid adjustment
under subdivision 13 for that year.deleted text end For aids payable in deleted text begin 2020deleted text end new text begin 2024new text end and thereafter, if a city's
certified aid deleted text begin before any aid adjustment under subdivision 13deleted text end for the previous year is equal
to or greater than its current unmet need, the total aid for a city is equal to the greater of (1)
its unmet need deleted text begin plus any aid adjustment under subdivision 13deleted text end , or (2) the amount it was
certified to receive in the previous year minus the deleted text begin sum of (i) any adjustment under subdivision
13 that was paid in the previous year but has expired, and (ii) thedeleted text end lesser of new text begin (i) new text end $10 multiplied
by its population, or new text begin (ii) new text end five percent of its net levy in the year prior to the aid distribution.
No city may have a total aid amount less than $0.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2024
and thereafter.
new text end
Sec. 12.
Minnesota Statutes 2022, section 477A.03, subdivision 2a, is amended to read:
Subd. 2a.
Cities.
deleted text begin For aids payable in 2016 and 2017, the total aid paid under section
477A.013, subdivision 9, is $519,398,012. For aids payable in 2018 and 2019, the total aid
paid under section 477A.013, subdivision 9, is $534,398,012. For aids payable in 2020, the
total aid paid under section 477A.013, subdivision 9, is $560,398,012.deleted text end For aids payable in
2021 deleted text begin and thereafterdeleted text end new text begin through 2023new text end , the total aid payable under section 477A.013, subdivision
9, is $564,398,012.new text begin For aids payable in 2024 and thereafter, the total aid payable under
section 477A.013, subdivision 9, is $664,398,012, multiplied by the inflation adjustment
under subdivision 6.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2024
and thereafter.
new text end
Sec. 13.
Minnesota Statutes 2022, section 477A.03, subdivision 2b, is amended to read:
Subd. 2b.
Counties.
(a) deleted text begin For aids payable in 2018 and 2019, the total aid payable under
section 477A.0124, subdivision 3, is $103,795,000, of which $3,000,000 shall be allocated
as required under Laws 2014, chapter 150, article 4, section 6. For aids payable in 2020,
the total aid payable under section 477A.0124, subdivision 3, is $116,795,000, of which
$3,000,000 shall be allocated as required under Laws 2014, chapter 150, article 4, section
6.deleted text end For aids payable in 2021 through deleted text begin 2024deleted text end new text begin 2023new text end , the total aid payable under section
477A.0124, subdivision 3, is $118,795,000, of which $3,000,000 shall be allocated as
required under Laws 2014, chapter 150, article 4, section 6.new text begin For aids payable in 2024, the
total aid payable under section 477A.0124, subdivision 3, is $163,679,459, of which
$3,000,000 shall be allocated as required under Laws 2014, chapter 150, article 4, section
6.new text end For aids payable in 2025 and thereafter, the total aid payable under section 477A.0124,
subdivision 3, is deleted text begin $115,795,000deleted text end new text begin $160,679,459, multiplied by the inflation adjustment under
subdivision 6new text end . On or before the first installment date provided in section 477A.015, paragraph
(a), $500,000 of this appropriation shall be transferred each year by the commissioner of
revenue to the Board of Public Defense for the payment of services under section 611.27.
Any transferred amounts not expended or encumbered in a fiscal year shall be certified by
the Board of Public Defense to the commissioner of revenue on or before October 1 and
shall be included in the next certification of county need aid.
(b) deleted text begin For aids payable in 2018 and 2019, the total aid under section 477A.0124, subdivision
4, is $130,873,444. For aids payable in 2020, the total aid under section 477A.0124,
subdivision 4, is $143,873,444.deleted text end For aids payable in 2021 deleted text begin and thereafterdeleted text end new text begin through 2023new text end , the
total aid under section 477A.0124, subdivision 4, is $145,873,444.new text begin For aids payable in 2024
and thereafter, the total aid under section 477A.0124, subdivision 4, is $200,988,985,
multiplied by the inflation adjustment under subdivision 6.new text end The commissioner of revenue
shall transfer to the Legislative Budget Office $207,000 annually for the cost of preparation
of local impact notes as required by section 3.987, and other local government activities.
The commissioner of revenue shall transfer to the commissioner of education $7,000 annually
for the cost of preparation of local impact notes for school districts as required by section
3.987. The commissioner of revenue shall deduct the amounts transferred under this
paragraph from the appropriation under this paragraph. The amounts transferred are
appropriated to the Legislative Coordinating Commission and the commissioner of education
respectively.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2024
and thereafter.
new text end
Sec. 14.
Minnesota Statutes 2022, section 477A.03, is amended by adding a subdivision
to read:
new text begin Subd. 6. new text end
new text begin Inflation adjustment. new text end
new text begin
In 2025 and thereafter, the amounts paid under
subdivisions 2a and 2b must be increased by an amount equal to one plus the sum of (1)
the percentage increase in the implicit price deflator for government expenditures and gross
investment for state and local government purchases as prepared by the United States
Department of Commerce for the 12-month period ending March 31 of the previous calendar
year, and (2) the percentage increase in total city population for the most recently available
years as of January 15 of the current year. The percentage increase in this subdivision must
not be less than 2.5 percent or greater than five percent.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2024
and thereafter.
new text end
Sec. 15.
Minnesota Statutes 2022, section 477A.12, subdivision 1, is amended to read:
Subdivision 1.
Types of land; payments.
The following amounts are annually
appropriated to the commissioner of natural resources from the general fund for transfer to
the commissioner of revenue. The commissioner of revenue shall pay the transferred funds
to counties as required by sections 477A.11 to 477A.14. The amounts, based on the acreage
as of July 1 of each year prior to the payment year, are:
(1) $5.133 multiplied by the total number of acres of acquired natural resources land or,
at the county's option three-fourths of one percent of the appraised value of all acquired
natural resources land in the county, whichever is greater;
(2) $5.133, multiplied by the total number of acres of transportation wetland or, at the
county's option, three-fourths of one percent of the appraised value of all transportation
wetland in the county, whichever is greater;
(3) $5.133, multiplied by the total number of acres of wildlife management land, or, at
the county's option, three-fourths of one percent of the appraised value of all wildlife
management land in the county, whichever is greater;
(4) 50 percent of the dollar amount as determined under clause (1), multiplied by the
number of acres of military refuge land in the county;
(5) deleted text begin $2deleted text end new text begin $3new text end , multiplied by the number of acres of county-administered other natural
resources land in the county;
(6) $5.133, multiplied by the total number of acres of land utilization project land in the
county;
(7) deleted text begin $2deleted text end new text begin $3new text end , multiplied by the number of acres of commissioner-administered other natural
resources land in the county; deleted text begin and
deleted text end
(8) new text begin $0.18, multiplied by the total number of acres in the county eligible for payment
under clauses (1) to (7), provided that the total number of acres in the county eligible for
payment under clauses (1) to (7) is equal to or greater than 25 percent of the total acreage
in the county;
new text end
new text begin
(9) $0.08, multiplied by the total number of acres in the county eligible for payment
under clauses (1) to (7), provided that the total number of acres in the county eligible for
payment under clauses (1) to (7) is equal to or greater than ten percent, but less than 25
percent of the total acreage in the county; and
new text end
new text begin (10) new text end without regard to acreage, and notwithstanding the rules adopted under section
84A.55, $300,000 for local assessments under section 84A.55, subdivision 9, that shall be
divided and distributed to the counties containing state-owned lands within a conservation
area in proportion to each county's percentage of the total annual ditch assessments.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with aids payable in 2024.
new text end
Sec. 16.
Minnesota Statutes 2022, section 477A.12, subdivision 3, is amended to read:
Subd. 3.
Determination of appraised value.
For the purposes of this section, the
appraised value of acquired natural resources land is the purchase price until the next six-year
appraisal required under this subdivision. The appraised value of acquired natural resources
land received as a donation is the value determined for the commissioner of natural resources
by a licensed appraiser, or the county assessor's estimated market value if no appraisal is
done. The appraised value must be determined by the county assessor every six yearsnew text begin , except
that the appraised value shall not be less than the most recent appraised valuenew text end . All reappraisals
shall be done in the same year as county assessors are required to assess exempt land under
section 273.18.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with aids payable in 2024.
new text end
Sec. 17.
Minnesota Statutes 2022, section 477A.12, is amended by adding a subdivision
to read:
new text begin Subd. 4. new text end
new text begin Adjustment. new text end
new text begin
The commissioner shall annually adjust the amounts in subdivision
1, clauses (1) to (10), as provided in section 270C.22, subdivision 1, except as provided in
this subdivision. To determine the dollar amounts for payments in calendar year 2025, the
commissioner shall determine the percentage change in the index for the 12-month period
ending on August 31, 2024, and increase each of the unrounded dollar amounts in section
477A.12, subdivision 1, by that percentage change. For each subsequent year, the
commissioner shall increase the dollar amounts by the percentage change in the index from
August 31 of the year preceding the statutory year, to August 31 of the year preceding the
taxable year. The commissioner shall round the amounts as adjusted to the nearest tenth of
a cent.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with aids payable in 2024.
new text end
Sec. 18.
new text begin
[477A.23] SOIL AND WATER CONSERVATION DISTRICT AID.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
For purposes of this section, the following terms have the
meanings given:
new text end
new text begin
(1) "adjusted population" means the cube root of the district's population, according to
the most recent federal decennial census;
new text end
new text begin
(2) "nonpublic lands" means "real property" as defined by section 272.03 that is not
owned by the federal government, the state, or a local government unit; and
new text end
new text begin
(3) "soil and water conservation district" means a district created by chapter 103C, and
that is implementing the duties under that chapter as determined by the Board of Water and
Soil Resources as of the board's certification to the commissioner of revenue required by
subdivision 4.
new text end
new text begin Subd. 2. new text end
new text begin Purpose. new text end
new text begin
The purpose of this section is to provide ongoing financial support
to soil and water conservation districts to aid in the execution of chapter 103C and other
duties and services prescribed by statute.
new text end
new text begin Subd. 3. new text end
new text begin Distribution. new text end
new text begin
The Board of Water and Soil Resources must calculate the amount
of aid to be distributed to the certified soil and water conservation districts from the
appropriation in subdivision 7 as follows:
new text end
new text begin
(1) 70 percent of the appropriation must be distributed equally among the districts;
new text end
new text begin
(2) 20 percent of the appropriation must be distributed proportionally among the districts
according to the amount of nonpublic land located in a district as compared to the amount
of nonpublic land in the state; and
new text end
new text begin
(3) ten percent of the appropriation must be distributed proportionally among the districts
based on the adjusted population of each district, divided by the sum of the adjusted
population for all districts.
new text end
new text begin Subd. 4. new text end
new text begin Certification to commissioner. new text end
new text begin
On or before June 1 each year, the Board of
Water and Soil Resources must certify to the commissioner of revenue the soil and water
conservation districts that will receive a payment under this section and the amount of each
payment.
new text end
new text begin Subd. 5. new text end
new text begin Use of proceeds. new text end
new text begin
(a) Notwithstanding section 103C.401, subdivision 2, a soil
and water conservation district that receives a distribution under this section must use the
proceeds to implement chapter 103C and other duties and services as prescribed by statute.
new text end
new text begin
(b) The board of each soil and water conservation district must establish, by resolution,
annual guidelines for using payments received under this section. Current year guidelines
and guidelines from the year immediately prior must be posted on the district's website.
new text end
new text begin
(c) A soil and water conservation district that receives a payment under this section may
use the proceeds directly or may appropriate any portion of the payment to a governmental
unit with which the district has a cooperative agreement under section 103C.231. Any
payment received under this section and appropriated by the district must be used as required
under this subdivision.
new text end
new text begin Subd. 6. new text end
new text begin Payments. new text end
new text begin
The commissioner of revenue must distribute soil and water
conservation district aid in the same manner and at the same times as aid payments provided
under section 477A.015.
new text end
new text begin Subd. 7. new text end
new text begin Appropriation. new text end
new text begin
$16,000,000 is annually appropriated from the general fund
to the commissioner of revenue to make the payments required under this section.
new text end
new text begin Subd. 8. new text end
new text begin Aid amount corrections. new text end
new text begin
If there is a clerical error made in calculating an aid
payment under this section, the Board of Water and Soil Resources shall recertify the correct
amounts to the commissioner of revenue and communicate the error and the corrected
amount to the affected soil and water conservation district as soon as practical after the error
is discovered.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with aids payable in 2023 and
thereafter.
new text end
Sec. 19.
new text begin
[477A.25] ELECTRIC GENERATION TRANSITION AID.
new text end
new text begin Subdivision 1. 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.
new text end
new text begin
(b) "Electric generating unit" means a single generating unit at an electric generating
plant powered by coal, nuclear, or natural gas.
new text end
new text begin
(c) "Electric generation property" means taxable property of an electric generating plant
owned by a public utility, as defined in section 216B.02, subdivision 4, that is powered by
coal, nuclear, or natural gas and located in an eligible taxing jurisdiction.
new text end
new text begin
(d) "Eligible taxing jurisdiction" means a county, home rule charter or statutory city,
town, or school district.
new text end
new text begin
(e) "Unit base year" means the assessment year in which the assessed value of electric
generation property is reduced due to the retirement of the electric generating unit.
new text end
new text begin
(f) "Unit differential" means (1) the tax capacity of electric generation property in the
assessment year preceding the unit base year, minus (2) the tax capacity of electric generation
property in the unit base year. The unit differential may not be less than zero. The unit
differential equals zero if the tax capacity of electric generation property in the eligible
taxing jurisdiction in the assessment year preceding the unit base year is less than four
percent of the total net tax capacity of the eligible taxing jurisdiction in the assessment year
preceding the aid calculation year, as adjusted under section 473F.08, subdivision 2, or
276A.06, subdivision 2, as applicable, except that, in an eligible taxing jurisdiction with
multiple electric generating units, only the unit differential calculated upon the first retirement
of an electric generating unit in that jurisdiction following the effective date of this section
is subject to the reduction under this sentence.
new text end
new text begin Subd. 2. new text end
new text begin Required notification. new text end
new text begin
Notwithstanding the requirements of Minnesota Rules,
chapter 8100, a public utility must notify the commissioner when the public utility expects
to retire an electric generating unit and remove that unit from the property tax base. The
notification must be in the form and manner determined by the commissioner, include
information required by the commissioner to calculate transition aid under this section, and
be filed together with the reports required under section 273.371.
new text end
new text begin Subd. 3. new text end
new text begin Unit transition amount. new text end
new text begin
(a) The initial unit transition amount equals the product
of (1) the unit differential, times (2) the jurisdiction's tax rate for taxes payable in the unit
base year.
new text end
new text begin
(b) The unit transition amount for the year following the unit base year, or in the year
as provided under subdivision 6, equals the initial unit transition amount. Unit transition
amounts in subsequent years must be reduced each year by an amount equal to five percent
of the initial unit transition amount. If the unit transition amount attributable to any unit is
less than $5,000 in any year, the unit transition amount for that unit equals zero.
new text end
new text begin Subd. 4. new text end
new text begin Electric generation transition aid. new text end
new text begin
Electric generation transition aid for an
eligible taxing jurisdiction equals the sum of the unit transition amounts for that jurisdiction.
new text end
new text begin Subd. 5. new text end
new text begin Aid elimination. new text end
new text begin
(a) Notwithstanding subdivision 4, beginning for aid in the
year after the year in which the jurisdiction first qualified for aid, aid for an eligible taxing
jurisdiction equals zero if the commissioner determines that the eligible taxing jurisdiction's
total net tax capacity in the assessment year preceding the aid calculation year is greater
than the product of:
new text end
new text begin
(1) 90 percent of the jurisdiction's total net tax capacity in the assessment year preceding
the aid calculation year in which the jurisdiction first qualified for aid under this section;
times
new text end
new text begin
(2) the greater of one or the ratio of (i) the statewide total net tax capacity of real and
personal property in the assessment year preceding the aid calculation year to (ii) the
statewide total net tax capacity of real and personal property in the assessment year preceding
the aid calculation year in which the jurisdiction first qualified for aid under this section.
new text end
new text begin
(b) For the purposes of this subdivision, "net tax capacity" means net tax capacity as
adjusted under section 473F.08, subdivision 2, or 276A.06, subdivision 2, as applicable.
new text end
new text begin
(c) If aid to a jurisdiction attributable to a previous unit retirement has been eliminated
under this subdivision, the jurisdiction may qualify for aid under this section for subsequent
unit retirements.
new text end
new text begin
(d) The requirements of this subdivision do not apply to the aid attributable to prior unit
retirements qualifying under subdivision 7.
new text end
new text begin Subd. 6. new text end
new text begin Commissioner's duties; payment schedule. new text end
new text begin
(a) The commissioner of revenue
shall compute the amount of electric generation transition aid payable to each jurisdiction
under this section. On or before August 1 of each year, the commissioner shall certify the
amount of aid computed for aids payable in the following year for each jurisdiction. The
commissioner shall pay aid to each jurisdiction other than school districts annually at the
times provided in section 477A.015. Aids to school districts must be certified to the
commissioner of education and paid under section 273.1392.
new text end
new text begin
(b) The commissioner of revenue may require counties to provide any data that the
commissioner deems necessary to administer this section.
new text end
new text begin Subd. 7. new text end
new text begin Aid for prior unit retirements. new text end
new text begin
An electric generating unit with a unit base
year after 2016 but before 2023 must be counted for the purpose of calculating aid under
this section. For a unit eligible to be counted under this subdivision and for the purpose of
the schedule of amounts under subdivision 3, paragraph (b), the unit base year is 2023.
new text end
new text begin Subd. 8. new text end
new text begin Appropriation. new text end
new text begin
An amount sufficient to make the aid payments required by
this section to eligible taxing jurisdictions other than school districts is annually appropriated
from the general fund to the commissioner of revenue. An amount sufficient to make the
aid payments required by this section for school districts is annually appropriated from the
general fund to the commissioner of education.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2024 and thereafter.
new text end
Sec. 20.
new text begin
[477A.31] MAHNOMEN PROPERTY TAX REIMBURSEMENT AID.
new text end
new text begin Subdivision 1. new text end
new text begin Aid appropriation. new text end
new text begin
(a) The commissioner of revenue shall make
reimbursement aid payments to compensate for the loss of property tax revenue related to
the trust conversion application of the Shooting Star Casino. The commissioner shall pay
the county of Mahnomen, $900,000; the city of Mahnomen, $320,000; and Independent
School District No. 432, Mahnomen, $140,000.
new text end
new text begin
(b) The payments shall be made annually on July 20.
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
An amount sufficient to pay reimbursement aid under this
section is annually appropriated from the general fund to the commissioner of revenue.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2024
and thereafter.
new text end
Sec. 21.
Laws 2006, chapter 259, article 11, section 3, as amended by Laws 2008, chapter
154, article 1, section 4, and Laws 2013, chapter 143, article 2, section 33, is amended to
read:
Sec. 3. MAHNOMEN COUNTY; COUNTY, CITY, SCHOOL DISTRICT,
PROPERTY TAX REIMBURSEMENT.
Subdivision 1.
Aid appropriation.
new text begin (a) new text end $1,200,000 is appropriated annually from the
general fund to the commissioner of revenue to be used to make payments to compensate
for the loss of property tax revenue related to the trust conversion application of the Shooting
Star Casino. The commissioner shall pay the county of Mahnomen, $900,000; the city of
Mahnomen, $160,000; and Independent School District No. 432, Mahnomen, $140,000.
The payments shall be made on July 20, of 2013 and each subsequent year.
new text begin
(b) This section expires after aids payable year 2023.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2024
and thereafter.
new text end
Sec. 22. new text begin STUDY OF STATE-OWNED LAKESHORE.
new text end
new text begin
No later than January 31, 2024, the commissioner of revenue, in consultation with the
Department of Natural Resources and counties, must produce a report on valuation methods
used to value the acreage and shoreline areas within all commissioner-administered and
county-administered other natural resources land, as defined in Minnesota Statutes, section
477A.11, subdivision 4. The report must comply with the requirements of Minnesota Statutes,
sections 3.195 and 3.197. The report must include, by county, the most recent assessed
value and acreage, and the assessed value and acreage for the two most recent assessments,
as required under Minnesota Statutes, section 273.18, paragraph (b), aggregated by parcels
containing shoreline and by parcels not containing shoreline area. Counties must report to
the commissioner of revenue any necessary data by September 30, 2023. The commissioner
must provide a copy of the report to the chairs and ranking minority members of the
legislative committees with jurisdiction over taxes and property taxation by January 31,
2024.
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. 23. new text begin 2021 AID PENALTY FORGIVENESS; CITY OF ECHO.
new text end
new text begin
Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Echo
must receive its aid payment for calendar year 2021 under Minnesota Statutes, section
477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision 3,
and its small city assistance payment for calendar year 2021 under Minnesota Statutes,
section 162.145, that was withheld under Minnesota Statutes, section 162.145, subdivision
3, paragraph (c), provided that the state auditor certifies to the commissioner of revenue
that it received the annual financial reporting form for 2020 from the city by June 1, 2023.
The commissioner of revenue must make a payment of $46,060 to the city by June 30, 2023.
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. 24. new text begin 2021 AID PENALTY FORGIVENESS; CITY OF MORTON.
new text end
new text begin
Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Morton
must receive its aid payment for calendar year 2021 under Minnesota Statutes, section
477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision 3,
and its small city assistance payment for calendar year 2021 under Minnesota Statutes,
section 162.145, that was withheld under Minnesota Statutes, section 162.145, subdivision
3, paragraph (c), provided that the state auditor certifies to the commissioner of revenue
that it received the annual financial reporting form for 2020 from the city by June 1, 2023.
The commissioner of revenue must make a payment of $79,476 to the city by June 30, 2023.
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. 25. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2022, sections 477A.011, subdivisions 30a, 38, 42, and 45; and
477A.013, subdivision 13,
new text end
new text begin
are repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year 2024
and thereafter.
new text end
ARTICLE 4
RENTER'S CREDIT
Section 1.
Minnesota Statutes 2022, section 10A.31, subdivision 1, is amended to read:
Subdivision 1.
Designation.
An individual resident of this state who files an income tax
return deleted text begin or a renter anddeleted text end new text begin ,new text end homeowner property tax refund returnnew text begin , or simplified renter's credit
return under section 290.0693new text end with the commissioner of revenue may designate on their
original return that $5 be paid from the general fund of the state into the state elections
campaign account. If deleted text begin a husband and wifedeleted text end new text begin spousesnew text end file a joint return, each spouse may
designate that $5 be paid. No individual is allowed to designate $5 more than once in any
year. The taxpayer may designate that the amount be paid into the account of a political
party or into the general account.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2023.
new text end
Sec. 2.
Minnesota Statutes 2022, section 10A.31, subdivision 3, is amended to read:
Subd. 3.
Form.
The commissioner of revenue must provide on the first page of the
income tax form deleted text begin and the renter anddeleted text end new text begin ,new text end homeowner property tax refund returnnew text begin , and simplified
renter's credit return under section 290.0693new text end a space for the individual to indicate a wish to
pay $5 ($10 if filing a joint return) from the general fund of the state to finance election
campaigns. The form must also contain language prepared by the commissioner that permits
the individual to direct the state to pay the $5 (or $10 if filing a joint return) to: (1) one of
the major political parties; (2) any minor political party that qualifies under subdivision 3a;
or (3) all qualifying candidates as provided by subdivision 7. The deleted text begin renter anddeleted text end homeowner
property tax refund return must include instructions that the individual filing the return may
designate $5 on the return only if the individual has not designated $5 on the income tax
returnnew text begin or simplified renter's credit return under section 290.0693new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2023.
new text end
Sec. 3.
Minnesota Statutes 2022, section 13.46, subdivision 2, is amended to read:
Subd. 2.
General.
(a) Data on individuals collected, maintained, used, or disseminated
by the welfare system are private data on individuals, and shall not be disclosed except:
(1) according to section 13.05;
(2) according to court order;
(3) according to a statute specifically authorizing access to the private data;
(4) to an agent of the welfare system and an investigator acting on behalf of a county,
the state, or the federal government, including a law enforcement person or attorney in the
investigation or prosecution of a criminal, civil, or administrative proceeding relating to the
administration of a program;
(5) to personnel of the welfare system who require the data to verify an individual's
identity; determine eligibility, amount of assistance, and the need to provide services to an
individual or family across programs; coordinate services for an individual or family;
evaluate the effectiveness of programs; assess parental contribution amounts; and investigate
suspected fraud;
(6) to administer federal funds or programs;
(7) between personnel of the welfare system working in the same program;
(8) to the Department of Revenue to assess parental contribution amounts for purposes
of section 252.27, subdivision 2a, administer and evaluate tax refund or tax credit programs
and to identify individuals who may benefit from these programs. The following information
may be disclosed under this paragraph: an individual's and their dependent's names, dates
of birth, Social Security numbers, income, addresses, and other data as required, upon
request by the Department of Revenue. Disclosures by the commissioner of revenue to the
commissioner of human services for the purposes described in this clause are governed by
section 270B.14, subdivision 1. Tax refund or tax credit programs include, but are not limited
to, the dependent care credit under section 290.067, the Minnesota working family credit
under section 290.0671, the property tax refund deleted text begin and rental creditdeleted text end under section 290A.04,
and the Minnesota education credit under section 290.0674;
(9) between the Department of Human Services, the Department of Employment and
Economic Development, and when applicable, the Department of Education, for the following
purposes:
(i) to monitor the eligibility of the data subject for unemployment benefits, for any
employment or training program administered, supervised, or certified by that agency;
(ii) to administer any rehabilitation program or child care assistance program, whether
alone or in conjunction with the welfare system;
(iii) to monitor and evaluate the Minnesota family investment program or the child care
assistance program by exchanging data on recipients and former recipients of Supplemental
Nutrition Assistance Program (SNAP) benefits, cash assistance under chapter 256, 256D,
256J, or 256K, child care assistance under chapter 119B, medical programs under chapter
256B or 256L, or a medical program formerly codified under chapter 256D; and
(iv) to analyze public assistance employment services and program utilization, cost,
effectiveness, and outcomes as implemented under the authority established in Title II,
Sections 201-204 of the Ticket to Work and Work Incentives Improvement Act of 1999.
Health records governed by sections 144.291 to 144.298 and "protected health information"
as defined in Code of Federal Regulations, title 45, section 160.103, and governed by Code
of Federal Regulations, title 45, parts 160-164, including health care claims utilization
information, must not be exchanged under this clause;
(10) to appropriate parties in connection with an emergency if knowledge of the
information is necessary to protect the health or safety of the individual or other individuals
or persons;
(11) data maintained by residential programs as defined in section 245A.02 may be
disclosed to the protection and advocacy system established in this state according to Part
C of Public Law 98-527 to protect the legal and human rights of persons with developmental
disabilities or other related conditions who live in residential facilities for these persons if
the protection and advocacy system receives a complaint by or on behalf of that person and
the person does not have a legal guardian or the state or a designee of the state is the legal
guardian of the person;
(12) to the county medical examiner or the county coroner for identifying or locating
relatives or friends of a deceased person;
(13) data on a child support obligor who makes payments to the public agency may be
disclosed to the Minnesota Office of Higher Education to the extent necessary to determine
eligibility under section 136A.121, subdivision 2, clause (5);
(14) participant Social Security numbers and names collected by the telephone assistance
program may be disclosed to the Department of Revenue to conduct an electronic data
match with the property tax refund database to determine eligibility under section 237.70,
subdivision 4a;
(15) the current address of a Minnesota family investment program participant may be
disclosed to law enforcement officers who provide the name of the participant and notify
the agency that:
(i) the participant:
(A) is a fugitive felon fleeing to avoid prosecution, or custody or confinement after
conviction, for a crime or attempt to commit a crime that is a felony under the laws of the
jurisdiction from which the individual is fleeing; or
(B) is violating a condition of probation or parole imposed under state or federal law;
(ii) the location or apprehension of the felon is within the law enforcement officer's
official duties; and
(iii) the request is made in writing and in the proper exercise of those duties;
(16) the current address of a recipient of general assistance may be disclosed to probation
officers and corrections agents who are supervising the recipient and to law enforcement
officers who are investigating the recipient in connection with a felony level offense;
(17) information obtained from a SNAP applicant or recipient households may be
disclosed to local, state, or federal law enforcement officials, upon their written request, for
the purpose of investigating an alleged violation of the Food and Nutrition Act, according
to Code of Federal Regulations, title 7, section 272.1(c);
(18) the address, Social Security number, and, if available, photograph of any member
of a household receiving SNAP benefits shall be made available, on request, to a local, state,
or federal law enforcement officer if the officer furnishes the agency with the name of the
member and notifies the agency that:
(i) the member:
(A) is fleeing to avoid prosecution, or custody or confinement after conviction, for a
crime or attempt to commit a crime that is a felony in the jurisdiction the member is fleeing;
(B) is violating a condition of probation or parole imposed under state or federal law;
or
(C) has information that is necessary for the officer to conduct an official duty related
to conduct described in subitem (A) or (B);
(ii) locating or apprehending the member is within the officer's official duties; and
(iii) the request is made in writing and in the proper exercise of the officer's official duty;
(19) the current address of a recipient of Minnesota family investment program, general
assistance, or SNAP benefits may be disclosed to law enforcement officers who, in writing,
provide the name of the recipient and notify the agency that the recipient is a person required
to register under section 243.166, but is not residing at the address at which the recipient is
registered under section 243.166;
(20) certain information regarding child support obligors who are in arrears may be
made public according to section 518A.74;
(21) data on child support payments made by a child support obligor and data on the
distribution of those payments excluding identifying information on obligees may be
disclosed to all obligees to whom the obligor owes support, and data on the enforcement
actions undertaken by the public authority, the status of those actions, and data on the income
of the obligor or obligee may be disclosed to the other party;
(22) data in the work reporting system may be disclosed under section 256.998,
subdivision 7;
(23) to the Department of Education for the purpose of matching Department of Education
student data with public assistance data to determine students eligible for free and
reduced-price meals, meal supplements, and free milk according to United States Code,
title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to allocate federal and state
funds that are distributed based on income of the student's family; and to verify receipt of
energy assistance for the telephone assistance plan;
(24) the current address and telephone number of program recipients and emergency
contacts may be released to the commissioner of health or a community health board as
defined in section 145A.02, subdivision 5, when the commissioner or community health
board has reason to believe that a program recipient is a disease case, carrier, suspect case,
or at risk of illness, and the data are necessary to locate the person;
(25) to other state agencies, statewide systems, and political subdivisions of this state,
including the attorney general, and agencies of other states, interstate information networks,
federal agencies, and other entities as required by federal regulation or law for the
administration of the child support enforcement program;
(26) to personnel of public assistance programs as defined in section 256.741, for access
to the child support system database for the purpose of administration, including monitoring
and evaluation of those public assistance programs;
(27) to monitor and evaluate the Minnesota family investment program by exchanging
data between the Departments of Human Services and Education, on recipients and former
recipients of SNAP benefits, cash assistance under chapter 256, 256D, 256J, or 256K, child
care assistance under chapter 119B, medical programs under chapter 256B or 256L, or a
medical program formerly codified under chapter 256D;
(28) to evaluate child support program performance and to identify and prevent fraud
in the child support program by exchanging data between the Department of Human Services,
Department of Revenue under section 270B.14, subdivision 1, paragraphs (a) and (b),
without regard to the limitation of use in paragraph (c), Department of Health, Department
of Employment and Economic Development, and other state agencies as is reasonably
necessary to perform these functions;
(29) counties and the Department of Human Services operating child care assistance
programs under chapter 119B may disseminate data on program participants, applicants,
and providers to the commissioner of education;
(30) child support data on the child, the parents, and relatives of the child may be
disclosed to agencies administering programs under titles IV-B and IV-E of the Social
Security Act, as authorized by federal law;
(31) to a health care provider governed by sections 144.291 to 144.298, to the extent
necessary to coordinate services;
(32) to the chief administrative officer of a school to coordinate services for a student
and family; data that may be disclosed under this clause are limited to name, date of birth,
gender, and address;
(33) to county correctional agencies to the extent necessary to coordinate services and
diversion programs; data that may be disclosed under this clause are limited to name, client
demographics, program, case status, and county worker information; or
(34) between the Department of Human Services and the Metropolitan Council for the
following purposes:
(i) to coordinate special transportation service provided under section 473.386 with
services for people with disabilities and elderly individuals funded by or through the
Department of Human Services; and
(ii) to provide for reimbursement of special transportation service provided under section
473.386.
The data that may be shared under this clause are limited to the individual's first, last, and
middle names; date of birth; residential address; and program eligibility status with expiration
date for the purposes of informing the other party of program eligibility.
(b) Information on persons who have been treated for drug or alcohol abuse may only
be disclosed according to the requirements of Code of Federal Regulations, title 42, sections
2.1 to 2.67.
(c) Data provided to law enforcement agencies under paragraph (a), clause (15), (16),
(17), or (18), or paragraph (b), are investigative data and are confidential or protected
nonpublic while the investigation is active. The data are private after the investigation
becomes inactive under section 13.82, subdivision 7, clause (a) or (b).
(d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but are
not subject to the access provisions of subdivision 10, paragraph (b).
For the purposes of this subdivision, a request will be deemed to be made in writing if
made through a computer interface system.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2023.
new text end
Sec. 4.
Minnesota Statutes 2022, section 270B.12, subdivision 8, is amended to read:
Subd. 8.
County assessors; homestead classification and deleted text begin renterdeleted text end new text begin renter'snew text end credit.
The
commissioner may disclose names and Social Security numbers of individuals who have
applied for both homestead classification under section 273.13 and a deleted text begin property tax refund
as a renter under chapter 290Adeleted text end new text begin renter's credit under section 290.0693new text end for the purpose of and
to the extent necessary to administer section 290A.25.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in 2024
and following years.
new text end
Sec. 5.
Minnesota Statutes 2022, section 270B.14, subdivision 1, is amended to read:
Subdivision 1.
Disclosure to commissioner of human services.
(a) On the request of
the commissioner of human services, the commissioner shall disclose return information
regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to the
extent provided in paragraph (b) and for the purposes set forth in paragraph (c).
(b) Data that may be disclosed are limited to data relating to the identity, whereabouts,
employment, income, and property of a person owing or alleged to be owing an obligation
of child support.
(c) The commissioner of human services may request data only for the purposes of
carrying out the child support enforcement program and to assist in the location of parents
who have, or appear to have, deserted their children. Data received may be used only as set
forth in section 256.978.
(d) The commissioner shall provide the records and information necessary to administer
the supplemental housing allowance to the commissioner of human services.
(e) At the request of the commissioner of human services, the commissioner of revenue
shall electronically match the Social Security numbers and names of participants in the
telephone assistance plan operated under sections 237.69 to 237.71, with those of property
tax refund filersnew text begin under chapter 290A or renter's credit filers under section 290.0693new text end , and
determine whether each participant's household income is within the eligibility standards
for the telephone assistance plan.
(f) The commissioner may provide records and information collected under sections
295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid
Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law
102-234. Upon the written agreement by the United States Department of Health and Human
Services to maintain the confidentiality of the data, the commissioner may provide records
and information collected under sections 295.50 to 295.59 to the Centers for Medicare and
Medicaid Services section of the United States Department of Health and Human Services
for purposes of meeting federal reporting requirements.
(g) The commissioner may provide records and information to the commissioner of
human services as necessary to administer the early refund of refundable tax credits.
(h) The commissioner may disclose information to the commissioner of human services
as necessary for income verification for eligibility and premium payment under the
MinnesotaCare program, under section 256L.05, subdivision 2, as well as the medical
assistance program under chapter 256B.
(i) The commissioner may disclose information to the commissioner of human services
necessary to verify whether applicants or recipients for the Minnesota family investment
program, general assistance, the Supplemental Nutrition Assistance Program (SNAP),
Minnesota supplemental aid program, and child care assistance have claimed refundable
tax credits under chapter 290 and the property tax refund under chapter 290A, and the
amounts of the credits.
(j) The commissioner may disclose information to the commissioner of human services
necessary to verify income for purposes of calculating parental contribution amounts under
section 252.27, subdivision 2a.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2023.
new text end
Sec. 6.
Minnesota Statutes 2022, section 270C.445, subdivision 2, is amended to read:
Subd. 2.
Definitions.
(a) For purposes of this section and sections 270C.4451 to
270C.447, the following terms have the meanings given.
(b) "Advertise" means to solicit business through any means or medium.
(c) "Client" means a person for whom a tax preparer performs or agrees to perform tax
preparation services.
(d) "Facilitate" means to individually or in conjunction or cooperation with another
person:
(1) accept an application for a refund anticipation loan;
(2) pay to a client the proceeds, through direct deposit, a negotiable instrument, or any
other means, of a refund anticipation loan; or
(3) offer, arrange, process, provide, or in any other manner act to allow the making of,
a refund anticipation loan.
(e) "Refund anticipation check" means a negotiable instrument provided to a client by
the tax preparer or another person, which is issued from the proceeds of a taxpayer's federal
or state income tax refund or both and represents the net of the refund minus the tax
preparation fee and any other fees. A refund anticipation check includes a refund transfer.
(f) "Refund anticipation loan" means a loan or any other extension of credit, whether
provided by the tax preparer or another entity such as a financial institution, in anticipation
of, and whose payment is secured by, a client's federal or state income tax refund or both.
(g) "Tax preparation services" means services provided for compensation to a client to:
(1) assist with preparing or filing a return;
(2) assume final responsibility for completed work on a return on which preliminary
work has been done by another;
(3) sign or include on a return the preparer tax identification number required under
section 6109(a)(4) of the Internal Revenue Code; or
(4) facilitate the provision of a refund anticipation loan or a refund anticipation check.
(h) "Tax preparer" or "preparer" means a person providing tax preparation services
except:
(1) an employee who prepares their employer's return;
(2) any fiduciary, or the regular employees of a fiduciary, while acting on behalf of the
fiduciary estate, testator, trustor, grantor, or beneficiaries of them;
(3) nonprofit organizations providing tax preparation services under the Internal Revenue
Service Volunteer Income Tax Assistance Program or Tax Counseling for the Elderly
Program;
(4) a person who merely furnishes typing, reproducing, or other mechanical assistance;
(5) a third-party bulk filer as defined in section 290.92, subdivision 30, that is currently
registered with the commissioner; and
(6) a certified service provider as defined in section 297A.995, subdivision 2, paragraph
(c), that provides all of the sales tax functions for a retailer not maintaining a place of
business in this state as described in section 297A.66.
(i) Except as otherwise provided, "return" means:
(1) a return as defined in section 270C.01, subdivision 8;
(2) a claim for refund of an overpayment;
(3) a claim filed pursuant to chapter 290A; deleted text begin and
deleted text end
(4) a claim for a credit filed under section 290.0677, subdivision 1deleted text begin .deleted text end new text begin ; and
new text end
new text begin
(5) a simplified renter's credit filing under section 290.0693, subdivision 12.
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, 2023.
new text end
Sec. 7.
Minnesota Statutes 2022, section 270C.445, subdivision 3, is amended to read:
Subd. 3.
Standards of conduct.
No tax preparer shall:
(1) without good cause fail to promptly, diligently, and without unreasonable delay
complete a client's return;
(2) obtain the signature of a client to a return or authorizing document that contains
blank spaces to be filled in after it has been signed;
(3) fail to sign a client's return when compensation for services rendered has been made;
(4) fail to provide on a client's return the preparer tax identification number when required
under section 6109(a)(4) of the Internal Revenue Code or section 289A.60, subdivision 28;
(5) fail or refuse to give a client a copy of any document requiring the client's signature
within a reasonable time after the client signs the document;
(6) fail to retain for at least four years a copy of a client's returns;
(7) fail to maintain a confidential relationship with clients or former clients;
(8) fail to take commercially reasonable measures to safeguard a client's nonpublic
personal information;
(9) make, authorize, publish, disseminate, circulate, or cause to make, either directly or
indirectly, any false, deceptive, or misleading statement or representation relating to or in
connection with the offering or provision of tax preparation services;
(10) require a client to enter into a loan arrangement in order to complete a client's return;
(11) claim credits or deductions on a client's return for which the tax preparer knows or
reasonably should know the client does not qualify;
(12) report a household income on a client's claim filed under chapter 290A that the tax
preparer knows or reasonably should know is not accurate;
(13) engage in any conduct that is subject to a penalty under section 289A.60, subdivision
13, 20, 20a, 26, or 28;
(14) whether or not acting as a taxpayer representative, fail to conform to the standards
of conduct required by Minnesota Rules, part 8052.0300, subpart 4;
(15) whether or not acting as a taxpayer representative, engage in any conduct that is
incompetent conduct under Minnesota Rules, part 8052.0300, subpart 5;
(16) whether or not acting as a taxpayer representative, engage in any conduct that is
disreputable conduct under Minnesota Rules, part 8052.0300, subpart 6;
(17) charge, offer to accept, or accept a fee based upon a percentage of an anticipated
refund for tax preparation services;
(18) under any circumstances, withhold or fail to return to a client a document provided
by the client for use in preparing the client's return;
(19) take control or ownership of a client's refund by any means, including:
(i) directly or indirectly endorsing or otherwise negotiating a check or other refund
instrument, including an electronic version of a check;
(ii) directing an electronic or direct deposit of the refund into an account unless the
client's name is on the account; and
(iii) establishing or using an account in the preparer's name to receive a client's refund
through a direct deposit or any other instrument unless the client's name is also on the
account, except that a taxpayer may assign the portion of a refund representing the Minnesota
education credit available under section 290.0674 to a bank account without the client's
name, as provided under section 290.0679;
(20) fail to act in the best interests of the client;
(21) fail to safeguard and account for any money handled for the client;
(22) fail to disclose all material facts of which the preparer has knowledge which might
reasonably affect the client's rights and interests;
(23) violate any provision of section 332.37;
(24) include any of the following in any document provided or signed in connection
with the provision of tax preparation services:
(i) a hold harmless clause;
(ii) a confession of judgment or a power of attorney to confess judgment against the
client or appear as the client in any judicial proceeding;
(iii) a waiver of the right to a jury trial, if applicable, in any action brought by or against
a debtor;
(iv) an assignment of or an order for payment of wages or other compensation for
services;
(v) a provision in which the client agrees not to assert any claim or defense otherwise
available;
(vi) a waiver of any provision of this section or a release of any obligation required to
be performed on the part of the tax preparer; or
(vii) a waiver of the right to injunctive, declaratory, or other equitable relief or relief on
a class basis; deleted text begin or
deleted text end
(25) if making, providing, or facilitating a refund anticipation loan, fail to provide all
disclosures required by the federal Truth in Lending Act, United States Code, title 15, in a
form that may be retained by the clientdeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(26) report a household income on a client's claim filed under section 290.0693,
subdivision 12, that the tax preparer knows or reasonably should know is not accurate.
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, 2023.
new text end
Sec. 8.
Minnesota Statutes 2022, section 289A.18, subdivision 5, is amended to read:
Subd. 5.
Property tax refund claims.
A claim for a refund based on property taxes
payable must be filed with the commissioner on or before August 15 of the year in which
the property taxes are due and payable. deleted text begin Any claim for refund based on rent paid must be
filed on or before August 15 of the year following the year in which the rent was paid.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for property taxes payable in 2025 and
thereafter.
new text end
Sec. 9.
Minnesota Statutes 2022, section 289A.38, subdivision 4, is amended to read:
Subd. 4.
Property tax refund.
For purposes of computing the limitation under this
section, the due date of the property tax refund return as provided for in chapter 290A is
the due date for an income tax return covering deleted text begin the year in which the rent was paid ordeleted text end the
year preceding the year in which the property taxes are payable.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in 2024
and following years.
new text end
Sec. 10.
Minnesota Statutes 2022, section 289A.56, subdivision 6, is amended to read:
Subd. 6.
Property tax refunds under chapter 290A.
deleted text begin
(a) When a renter is owed a
property tax refund, an unpaid refund bears interest after August 14, or 60 days after the
refund claim was made, whichever is later, until the date the refund is paid.
deleted text end
deleted text begin (b)deleted text end When deleted text begin any otherdeleted text end new text begin anew text end claimant is owed a property tax refundnew text begin under chapter 290Anew text end , the
unpaid refund bears interest after September 29, or 60 days after the refund claim was made,
whichever is later, until the date the refund is paid.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in 2024
and following years.
new text end
Sec. 11.
Minnesota Statutes 2022, section 289A.60, subdivision 12, is amended to read:
Subd. 12.
Penalties relating to property tax refunds.
(a) If it is determined that a
property tax refund claim is excessive and was negligently prepared, a claimant is liable
for a penalty of ten percent of the disallowed claim. If the claim has been paid, the amount
disallowed must be recovered by assessment and collection.
(b) An owner who without reasonable cause fails to give a certificate of rent deleted text begin constituting
property taxdeleted text end new text begin paidnew text end to a renter, as required by deleted text begin sectiondeleted text end new text begin sections 290.0693, subdivision 4, andnew text end
290A.19, paragraph (a), is liable to the commissioner for a penalty of $100 for each failure.
(c) If the owner or managing agent knowingly gives rent certificates that report total
rent constituting property taxes in excess of the amount of actual rent constituting property
taxes paid on the rented part of a property, the owner or managing agent is liable for a
penalty equal to the greater of (1) $100 or (2) 50 percent of the excess that is reported. An
overstatement of rent constituting property taxes is presumed to be knowingly made if it
exceeds by ten percent or more the actual rent constituting property taxes.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in 2024
and following years.
new text end
Sec. 12.
Minnesota Statutes 2022, section 289A.60, subdivision 13, is amended to read:
Subd. 13.
Penalties for tax preparers.
(a) If an understatement of liability with respect
to a return or claim for refund is due to a reckless disregard of laws and rules or willful
attempt in any manner to understate the liability for a tax by a person who is a tax preparer
with respect to the return or claim, the person shall pay to the commissioner a penalty of
$500. If a part of a claim filed under section 290.0677, subdivision 1deleted text begin ,deleted text end new text begin ; 290.0693;new text end or chapter
290A is excessive due to a reckless disregard or willful attempt in any manner to overstate
the claim allowed by a person who is a tax preparer, the tax preparer shall pay to the
commissioner a penalty of $500 with respect to the claim. These penalties may not be
assessed against the employer of a tax preparer unless the employer was actively involved
in the reckless disregard or willful attempt to understate the liability for a tax or to overstate
the claim for refund. These penalties are income tax liabilities and may be assessed at any
time as provided in section 289A.38, subdivision 5.
(b) A civil action in the name of the state of Minnesota may be commenced to enjoin
any person who is a tax preparer doing business in this state as provided in section 270C.447.
(c) The commissioner may terminate or suspend a tax preparer's authority to transmit
returns electronically to the state, if the commissioner determines that the tax preparer has
engaged in a pattern and practice of conduct in violation of paragraph (a) of this subdivision
or has been convicted under section 289A.63.
(d) For purposes of this subdivision, the term "understatement of liability" means an
understatement of the net amount payable with respect to a tax imposed by state tax law,
or an overstatement of the net amount creditable or refundable with respect to a tax. The
determination of whether or not there is an understatement of liability must be made without
regard to any administrative or judicial action involving the taxpayer. For purposes of this
subdivision, the amount determined for underpayment of estimated tax under either section
289A.25 or 289A.26 is not considered an understatement of liability.
(e) For purposes of this subdivision, the term "overstatement of claim" means an
overstatement of the net amount refundable with respect to a claim filed under section
290.0677, subdivision 1, new text begin 290.0693, subdivision 12, new text end or chapter 290A. The determination of
whether or not there is an overstatement of a claim must be made without regard to
administrative or judicial action involving the claimant.
(f) For purposes of this section, the term "tax preparer" or "preparer" has the meaning
given in section 270C.445, subdivision 2, paragraph (h).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2023.
new text end
Sec. 13.
Minnesota Statutes 2022, section 289A.60, subdivision 28, is amended to read:
Subd. 28.
Preparer identification number.
(a) Each of the following that is prepared
by a tax preparer must include the tax preparer's tax identification number:
(1) a tax return required to be filed under this chapter;
(2) a claim filed under section 290.0677, subdivision 1, new text begin 290.0693, subdivision 12, new text end or
chapter 290A; and
(3) a claim for refund of an overpayment.
(b) A tax preparer is not required to include their preparer tax identification number on
a filing if the number is not required in the forms or filing requirements provided by the
commissioner.
(c) A tax preparer who fails to include the preparer tax identification number as required
by this section is subject to a penalty of $50 for each failure.
(d) A tax preparer who fails to include the preparer tax identification number as required
by this section, and who is required to have a valid preparer tax identification number issued
under section 6109(a)(4) of the Internal Revenue Code, but does not have one, is subject to
a $500 penalty for each failure. A tax preparer subject to the penalty in this paragraph is
not subject to the penalty in paragraph (c).
(e) For the purposes of this subdivision, "tax preparer" has the meaning given in section
270C.445, subdivision 2, paragraph (h), and "preparer tax identification number" means
the number the tax preparer is required to use federally under section 6109(a)(4) 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, 2023.
new text end
Sec. 14.
new text begin
[290.0693] RENTER'S CREDIT.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For the purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Dependent" means any individual who is considered a dependent under sections
151 and 152 of the Internal Revenue Code.
new text end
new text begin
(c) "Disability" has the meaning given in section 290A.03, subdivision 10.
new text end
new text begin
(d) "Exemption amount" means the exemption amount under section 290.0121,
subdivision 1, paragraph (b).
new text end
new text begin
(e) "Gross rent" means rent paid for the right of occupancy, at arm's length, of a
homestead, exclusive of charges for any medical services furnished by the landlord as a
part of the rental agreement, whether expressly set out in the rental agreement or not. The
gross rent of a resident of a nursing home or intermediate care facility is $600 per month.
The gross rent of a resident of an adult foster care home is $930 per month. The commissioner
shall annually adjust the amounts in this paragraph as provided in section 270C.22. The
statutory year is 2023. If the landlord and tenant have not dealt with each other at arm's
length and the commissioner determines that the gross rent charged was excessive, the
commissioner may adjust the gross rent to a reasonable amount for purposes of this section.
new text end
new text begin
(f) "Homestead" has the meaning given in section 290A.03, subdivision 6.
new text end
new text begin
(g) "Household" has the meaning given in section 290A.03, subdivision 4.
new text end
new text begin
(h) "Household income" means all income received by all persons of a household in a
taxable year while members of the household, other than income of a dependent.
new text end
new text begin
(i) "Income" means adjusted gross income, minus:
new text end
new text begin
(1) for the taxpayer's first dependent, the exemption amount multiplied by 1.4;
new text end
new text begin
(2) for the taxpayer's second dependent, the exemption amount multiplied by 1.3;
new text end
new text begin
(3) for the taxpayer's third dependent, the exemption amount multiplied by 1.2;
new text end
new text begin
(4) for the taxpayer's fourth dependent, the exemption amount multiplied by 1.1;
new text end
new text begin
(5) for the taxpayer's fifth dependent, the exemption amount; and
new text end
new text begin
(6) if the taxpayer or taxpayer's spouse had a disability or attained the age of 65 on or
before the close of the taxable year, the exemption amount.
new text end
new text begin
(j) "Rent constituting property taxes" means 17 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 taxable
year by a claimant for the right of occupancy of the claimant's Minnesota homestead in the
taxable year, and which rent constitutes the basis, in the succeeding taxable year of a claim
for a credit under this section by the claimant. If an individual occupies a homestead with
another person or persons not related to the individual as the individual's spouse or as
dependents, and the other person or persons are residing at the homestead under a rental or
lease agreement with the individual, the amount of rent constituting property tax for the
individual equals that portion not covered by the rental agreement.
new text end
new text begin Subd. 2. new text end
new text begin Credit allowed; refundable. new text end
new text begin
(a) An individual is allowed a credit against the
tax due under this chapter equal to the amount that rent constituting property taxes exceeds
the percentage of the household income of the claimant specified in subdivision 3 in the
taxable year in which the rent was paid as specified in that subdivision.
new text end
new text begin
(b) If the amount of credit which a taxpayer is eligible to receive under this section
exceeds the taxpayer's liability for tax under this chapter, the commissioner shall refund the
excess to the taxpayer.
new text end
new text begin Subd. 3. new text end
new text begin Renters. new text end
new text begin
(a) A taxpayer 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 paid
by claimant of the remaining amount of rent constituting property taxes. The credit under
subdivision 2 equals the amount of rent constituting property taxes that remain, up to the
maximum credit amount shown below.
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 Credit new text end |
|
|
new text begin
$0 to 6,479 new text end |
new text begin
1.0 percent new text end |
new text begin
5 percent new text end |
new text begin
$ new text end |
new text begin
2,640 new text end |
|
new text begin
6,480 to 8,609 new text end |
new text begin
1.0 percent new text end |
new text begin
10 percent new text end |
new text begin
$ new text end |
new text begin
2,640 new text end |
|
new text begin
8,610 to 10,759 new text end |
new text begin
1.1 percent new text end |
new text begin
10 percent new text end |
new text begin
$ new text end |
new text begin
2,570 new text end |
|
new text begin
10,760 to 15,089 new text end |
new text begin
1.2 percent new text end |
new text begin
10 percent new text end |
new text begin
$ new text end |
new text begin
2,510 new text end |
|
new text begin
15,090 to 19,399 new text end |
new text begin
1.3 percent new text end |
new text begin
15 percent new text end |
new text begin
$ new text end |
new text begin
2,430 new text end |
|
new text begin
19,400 to 21,539 new text end |
new text begin
1.4 percent new text end |
new text begin
15 percent new text end |
new text begin
$ new text end |
new text begin
2,370 new text end |
|
new text begin
21,540 to 23,679 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
2,310 new text end |
|
new text begin
23,680 to 28,009 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
2,240 new text end |
|
new text begin
28,010 to 30,159 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
2,180 new text end |
|
new text begin
30,160 to 32,309 new text end |
new text begin
1.7 percent new text end |
new text begin
25 percent new text end |
new text begin
$ new text end |
new text begin
2,180 new text end |
|
new text begin
32,310 to 36,629 new text end |
new text begin
1.8 percent new text end |
new text begin
25 percent new text end |
new text begin
$ new text end |
new text begin
2,180 new text end |
|
new text begin
36,630 to 38,769 new text end |
new text begin
1.9 percent new text end |
new text begin
30 percent new text end |
new text begin
$ new text end |
new text begin
2,180 new text end |
|
new text begin
38,770 to 45,229 new text end |
new text begin
2.0 percent new text end |
new text begin
30 percent new text end |
new text begin
$ new text end |
new text begin
2,180 new text end |
|
new text begin
45,230 to 51,689 new text end |
new text begin
2.0 percent new text end |
new text begin
35 percent new text end |
new text begin
$ new text end |
new text begin
2,180 new text end |
|
new text begin
51,690 to 60,319 new text end |
new text begin
2.0 percent new text end |
new text begin
40 percent new text end |
new text begin
$ new text end |
new text begin
2,180 new text end |
|
new text begin
60,320 to 62,459 new text end |
new text begin
2.0 percent new text end |
new text begin
45 percent new text end |
new text begin
$ new text end |
new text begin
1,980 new text end |
|
new text begin
62,460 to 64,619 new text end |
new text begin
2.0 percent new text end |
new text begin
45 percent new text end |
new text begin
$ new text end |
new text begin
1,780 new text end |
|
new text begin
64,620 to 66,789 new text end |
new text begin
2.0 percent new text end |
new text begin
45 percent new text end |
new text begin
$ new text end |
new text begin
1,510 new text end |
|
new text begin
66,790 to 68,929 new text end |
new text begin
2.0 percent new text end |
new text begin
50 percent new text end |
new text begin
$ new text end |
new text begin
1,320 new text end |
|
new text begin
68,930 to 71,089 new text end |
new text begin
2.0 percent new text end |
new text begin
50 percent new text end |
new text begin
$ new text end |
new text begin
1,190 new text end |
|
new text begin
71,090 to 73,239 new text end |
new text begin
2.0 percent new text end |
new text begin
50 percent new text end |
new text begin
$ new text end |
new text begin
660 new text end |
|
new text begin
73,240 to 75,389 new text end |
new text begin
2.0 percent new text end |
new text begin
50 percent new text end |
new text begin
$ new text end |
new text begin
260 new text end |
new text begin
The credit is the amount calculated under this subdivision. No credit is allowed if the
taxpayer's household income is $75,389 or more.
new text end
new text begin
(b) The commissioner must annually adjust the dollar amounts of the income thresholds
and the maximum refunds in paragraph (a), as provided in section 270C.22. The statutory
year is 2024.
new text end
new text begin
(c) The commissioner shall construct and make available to taxpayers a comprehensive
table showing the rent constituting property taxes to be paid and refund allowed at various
levels of income and assessment. The table shall follow the schedule of income percentages,
maximums, and other provisions specified in paragraph (a), except that the commissioner
may graduate the transition between income brackets. All refunds shall be computed in
accordance with tables prepared and issued by the commissioner.
new text end
new text begin Subd. 4. new text end
new text begin Owner or managing agent to furnish rent certificate. new text end
new text begin
(a) The owner or
managing agent of any property for which rent is paid for occupancy as a homestead must
furnish a certificate of rent paid to a person who is a renter on December 31, in the form
prescribed by the commissioner. If the renter moves before December 31, the owner or
managing agent may give the certificate to the renter at the time of moving, or mail the
certificate to the forwarding address if an address has been provided by the renter. The
certificate must be made available to the renter before February 1 of the year following the
year in which the rent was paid. The owner or managing agent must retain a duplicate of
each certificate or an equivalent record showing the same information for a period of four
years. The duplicate or other record must be made available to the commissioner upon
request.
new text end
new text begin
(b) The commissioner may require the owner or managing agent, through a simple
process, to furnish to the commissioner on or before March 1 a copy of each certificate of
rent paid furnished to a renter for rent paid in the prior year. The commissioner shall prescribe
the content, format, and manner of the form pursuant to section 270C.30. The commissioner
may require the Social Security number, individual taxpayer identification number, federal
employer identification number, or Minnesota taxpayer identification number of the owner
or managing agent who is required to furnish a certificate of rent paid under this paragraph.
Before implementation, the commissioner, after consulting with representatives of owners
or managing agents, shall develop an implementation and administration plan for the
requirements of this paragraph that attempts to minimize financial burdens, administration
and compliance costs, and takes into consideration existing systems of owners and managing
agents.
new text end
new text begin Subd. 5. new text end
new text begin Eligibility; residency. new text end
new text begin
(a) A taxpayer is eligible for the credit under this section
if the taxpayer is an individual, other than a dependent, as defined under sections 151 and
152 of the Internal Revenue Code, disregarding section 152(b)(3) of the Internal Revenue
Code, who filed for a credit and who was a resident of this state during the taxable year for
which the credit was claimed.
new text end
new text begin
(b) In the case of a credit for rent constituting property taxes of a part-year Minnesota
resident, the household income and rent constituting property taxes reflected in this
computation shall be for the period of Minnesota residency only. Any rental expenses paid
that may be reflected in arriving at federal adjusted gross income cannot be utilized for this
computation.
new text end
new text begin
(c) When two individuals of a household are able to meet the qualifications to claim a
credit under this section, the individuals may determine among them as to which individual
may claim the credit. If the individuals are unable to agree, the matter shall be referred to
the commissioner of revenue whose decision shall be final.
new text end
new text begin
(d) To claim a credit under this section, the taxpayer must have resided in a rented or
leased unit on which ad valorem taxes or payments made in lieu of ad valorem taxes,
including payments of special assessments imposed in lieu of ad valorem taxes, are payable
at some time during the taxable year for which the taxpayer claimed the credit.
new text end
new text begin Subd. 6. new text end
new text begin
Residents of nursing homes, intermediate care facilities, long-term care
facilities, or facilities accepting housing support payments.
new text end
new text begin
(a) A taxpayer must not claim
a credit under this section if the taxpayer is a resident of a nursing home, intermediate care
facility, long-term residential facility, or a facility that accepts housing support payments
whose rent constituting property taxes is paid pursuant to the Supplemental Security Income
program under title XVI of the Social Security Act, the Minnesota supplemental aid program
under sections 256D.35 to 256D.54, the medical assistance program pursuant to title XIX
of the Social Security Act, or the housing support program under chapter 256I.
new text end
new text begin
(b) If only a portion of the rent constituting property taxes is paid by these programs,
the resident is eligible for a credit, but the credit calculated must be multiplied by a fraction,
the numerator of which is adjusted gross income, reduced by the total amount of income
from the above sources other than vendor payments under the medical assistance program
and the denominator of which is adjusted gross income, plus vendor payments under the
medical assistance program, to determine the allowable credit.
new text end
new text begin
(c) Notwithstanding paragraphs (a) and (b), if the taxpayer was a resident of the nursing
home, intermediate care facility, long-term residential facility, or facility for which the rent
was paid for the claimant by the housing support program for only a portion of the taxable
year covered by the claim, the taxpayer may compute rent constituting property taxes by
disregarding the rent constituting property taxes from the nursing home or facility and may
use only that amount of rent constituting property taxes or property taxes payable relating
to that portion of the year when the taxpayer was not in the facility. The taxpayer's household
income is the income for the entire taxable year covered by the claim.
new text end
new text begin Subd. 7. new text end
new text begin Credit for unmarried taxpayers residing in the same household. new text end
new text begin
If a
homestead is occupied by two or more renters who are not married to each other, the rent
shall be deemed to be paid equally by each renter, and separate claims shall be filed by each
renter. The income of each renter shall be each renter's household income for purposes of
computing the amount of credit to be allowed.
new text end
new text begin Subd. 8. new text end
new text begin One claimant per household. new text end
new text begin
Only one taxpayer per household per year is
entitled to claim a credit under this section. In the case of a married taxpayer filing a separate
return, only one spouse may claim the credit under this section. The credit amount for the
spouse that claims the credit must be calculated based on household income and not solely
on the income of the spouse.
new text end
new text begin Subd. 9. new text end
new text begin Proof of claim. new text end
new text begin
(a) Every taxpayer claiming a credit under this section shall
supply to the commissioner of revenue, in support of the claim, proof of eligibility under
this section, including but not limited to amount of rent paid, name and address of owner
or managing agent of property rented, changes in household membership, and household
income.
new text end
new text begin
(b) Taxpayers with a disability shall submit proof of disability in the form and manner
as the commissioner prescribes. The department may require examination and certification
by the taxpayer's physician or by a physician designated by the commissioner. The cost of
any examination shall be borne by the taxpayer, unless the examination proves the disability,
in which case the cost of the examination shall be borne by the commissioner.
new text end
new text begin
(c) A determination of disability of a taxpayer by the Social Security Administration
under Title II or Title XVI of the Social Security Act shall constitute presumptive proof of
disability.
new text end
new text begin Subd. 10. new text end
new text begin No relief allowed in certain cases. new text end
new text begin
No claim for a credit under this section
shall be allowed if the commissioner determines that the claimant received tenancy to the
homestead primarily for the purpose of receiving a credit under this section and not for bona
fide residence purposes.
new text end
new text begin Subd. 11. new text end
new text begin Appropriation. new text end
new text begin
The amount necessary to pay the refunds under this section
is appropriated from the general fund to the commissioner.
new text end
new text begin Subd. 12. new text end
new text begin Simplified filing for individuals without an income tax liability. new text end
new text begin
The
commissioner of revenue must establish a simplified filing process through which a taxpayer
who did not file an individual income tax return due to a lack of a requirement to file an
individual income tax return may file a return to claim the credit under this section. The
filing process and forms may be in the form or manner determined by the commissioner,
but must be designed to reduce the complexity of the filing process and the time needed to
file for individuals without an income tax liability.
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, 2023.
new text end
Sec. 15.
Minnesota Statutes 2022, section 290A.02, is amended to read:
290A.02 PURPOSE.
The purpose of this chapter is to provide property tax relief to certain persons who own
deleted text begin or rentdeleted text end their homesteads.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in 2024
and following years.
new text end
Sec. 16.
Minnesota Statutes 2022, section 290A.03, subdivision 3, is amended to read:
Subd. 3.
Income.
(a) "Income" means the sum of the following:
(1) federal adjusted gross income as defined in the Internal Revenue Code; and
(2) the sum of the following amounts to the extent not included in clause (1):
(i) all nontaxable income;
(ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
carryover allowed under section 469(b) of the Internal Revenue Code;
(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
solvent individual excluded from gross income under section 108(g) of the Internal Revenue
Code;
(iv) cash public assistance and relief;
(v) any pension or annuity (including railroad retirement benefits, all payments received
under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
which was not exclusively funded by the claimant or spouse, or which was funded exclusively
by the claimant or spouse and which funding payments were excluded from federal adjusted
gross income in the years when the payments were made;
(vi) interest received from the federal or a state government or any instrumentality or
political subdivision thereof;
(vii) workers' compensation;
(viii) nontaxable strike benefits;
(ix) the gross amounts of payments received in the nature of disability income or sick
pay as a result of accident, sickness, or other disability, whether funded through insurance
or otherwise;
(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;
(xi) contributions made by the claimant to an individual retirement account, including
a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
the claimant and spouse;
(xii) to the extent not included in federal adjusted gross income, distributions received
by the claimant or spouse from a traditional or Roth style retirement account or plan;
(xiii) nontaxable scholarship or fellowship grants;
(xiv) alimony received to the extent not included in the recipient's income;
(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
Code;
(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
Code; and
(xvii) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code.
In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
by the amount of a net operating loss carryback or carryforward or a capital loss carryback
or carryforward allowed for the year.
(b) "Income" does not include:
(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
(2) amounts of any pension or annuity which was exclusively funded by the claimant
or spouse and which funding payments were not excluded from federal adjusted gross
income in the years when the payments were made;
(3) to the extent included in federal adjusted gross income, amounts contributed by the
claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
the retirement base amount reduced by the amount of contributions excluded from federal
adjusted gross income, but not less than zero;
(4) surplus food or other relief in kind supplied by a governmental agency;
(5) relief granted under this chapter;
(6) child support payments received under a temporary or final decree of dissolution or
legal separation;
(7) restitution payments received by eligible individuals and excludable interest as
defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
Public Law 107-16;
(8) alimony paid; or
(9) veterans disability compensation paid under title 38 of the United States Code.
(c) The sum of the following amounts may be subtracted from income:
(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
(5) for the claimant's fifth dependent, the exemption amount; and
(6) if the claimant or claimant's spouse had a disability or attained the age of 65 on or
before December 31 of the year for which the taxes were levied deleted text begin or rent paiddeleted text end , the exemption
amount.
(d) For purposes of this subdivision, the following terms have the meanings given:
(1) "exemption amount" means the exemption amount under section 290.0121,
subdivision 1, paragraph (b), for the taxable year for which the income is reported;
(2) "retirement base amount" means the deductible amount for the taxable year for the
claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for
inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard
to whether the claimant or spouse claimed a deduction; and
(3) "traditional or Roth style retirement account or plan" means retirement plans under
sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in 2024
and following years.
new text end
Sec. 17.
Minnesota Statutes 2022, section 290A.03, subdivision 6, is amended to read:
Subd. 6.
Homestead.
"Homestead" means the dwelling occupied as the claimant's
principal residence and so much of the land surrounding it, not exceeding ten acres, as is
reasonably necessary for use of the dwelling as a home and any other property used for
purposes of a homestead as defined in section 273.13, subdivision 22, except for agricultural
land assessed as part of a homestead pursuant to section 273.13, subdivision 23, "homestead"
is limited to the house and garage and immediately surrounding one acre of land. The
homestead may be owned deleted text begin or rented and may bedeleted text end new text begin asnew text end a part of a multidwelling or multipurpose
building and the land on which it is built. A manufactured home, as defined in section
273.125, subdivision 8, or a park trailer taxed as a manufactured home under section 168.012,
subdivision 9, assessed as personal property may be a dwelling for purposes of this
subdivision.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in 2024
and following years.
new text end
Sec. 18.
Minnesota Statutes 2022, section 290A.03, subdivision 8, is amended to read:
Subd. 8.
Claimant.
deleted text begin (a)deleted text end "Claimant" means a person, other than a dependent, as defined
under sections 151 and 152 of the Internal Revenue Code disregarding section 152(b)(3)
of the Internal Revenue Code, who filed a claim authorized by this chapter and who was a
resident of this state as provided in chapter 290 during the calendar year for which the claim
for relief was filed.
deleted text begin
(b) In the case of a claim relating to rent constituting property taxes, the claimant shall
have resided in a rented or leased unit on which ad valorem taxes or payments made in lieu
of ad valorem taxes, including payments of special assessments imposed in lieu of ad valorem
taxes, are payable at some time during the calendar year covered by the claim.
deleted text end
deleted text begin
(c) "Claimant" shall not include a resident of a nursing home, intermediate care facility,
long-term residential facility, or a facility that accepts housing support payments whose
rent constituting property taxes is paid pursuant to the Supplemental Security Income
program under title XVI of the Social Security Act, the Minnesota supplemental aid program
under sections 256D.35 to 256D.54, the medical assistance program pursuant to title XIX
of the Social Security Act, or the housing support program under chapter 256I.
deleted text end
deleted text begin
If only a portion of the rent constituting property taxes is paid by these programs, the
resident shall be a claimant for purposes of this chapter, but the refund calculated pursuant
to section 290A.04 shall be multiplied by a fraction, the numerator of which is income as
defined in subdivision 3, paragraphs (a) and (b), reduced by the total amount of income
from the above sources other than vendor payments under the medical assistance program
and the denominator of which is income as defined in subdivision 3, paragraphs (a) and (b),
plus vendor payments under the medical assistance program, to determine the allowable
refund pursuant to this chapter.
deleted text end
deleted text begin
(d) Notwithstanding paragraph (c), if the claimant was a resident of the nursing home,
intermediate care facility, long-term residential facility, or facility for which the rent was
paid for the claimant by the housing support program for only a portion of the calendar year
covered by the claim, the claimant may compute rent constituting property taxes by
disregarding the rent constituting property taxes from the nursing home or facility and use
only that amount of rent constituting property taxes or property taxes payable relating to
that portion of the year when the claimant was not in the facility. The claimant's household
income is the income for the entire calendar year covered by the claim.
deleted text end
deleted text begin (e) In the case of a claim for rent constituting property taxes of a part-year Minnesota
deleted text end deleted text begin resident, the income and rent reflected in this computation shall be for the period of
deleted text end deleted text begin Minnesota residency only. Any rental expenses paid which may be reflected in arriving at
deleted text end deleted text begin federal adjusted gross income cannot be utilized for this computation. When two individuals
deleted text end deleted text begin of a household are able to meet the qualifications for a claimant, they may determine among
deleted text end deleted text begin them as to who the claimant shall be. If they are unable to agree, the matter shall be referred
deleted text end deleted text begin to the commissioner of revenue whose decision shall be final.deleted text end If a homestead property owner
was a part-year Minnesota resident, the income reflected in the computation made pursuant
to section 290A.04 shall be for the entire calendar year, including income not assignable to
Minnesota.
deleted text begin
(f) If a homestead is occupied by two or more renters, who are not married to each other,
the rent shall be deemed to be paid equally by each, and separate claims shall be filed by
each. The income of each shall be each renter's household income for purposes of computing
the amount of credit to be allowed.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in 2024
and following years.
new text end
Sec. 19.
Minnesota Statutes 2022, section 290A.03, subdivision 12, is amended to read:
Subd. 12.
Gross rent.
(a) "Gross rent" means rent paid for the right of occupancy, at
arm's length, of anew text begin site on which anew text end homesteaddeleted text begin , exclusive of charges for any medical services
furnished by the landlord as a part of the rental agreement, whether expressly set out in the
rental agreement or notdeleted text end new text begin which is a manufactured home is locatednew text end .
deleted text begin
(b) The gross rent of a resident of a nursing home or intermediate care facility is $500
per month. The gross rent of a resident of an adult foster care home is $780 per month. The
commissioner shall annually adjust the amounts in this paragraph as provided in section
270C.22. The statutory year is 2018.
deleted text end
deleted text begin (c)deleted text end new text begin (b)new text end If the landlord and tenant have not dealt with each other at arm's length and the
commissioner determines that the gross rent charged was excessive, the commissioner may
adjust the gross rent to a reasonable amount for purposes of this chapter.
deleted text begin (d)deleted text end new text begin (c)new text end Any amount paid by a claimant residing in property assessed pursuant to section
273.124, subdivision 3, 4, 5, or 6 for occupancy in that property deleted text begin shall be excluded from
gross rent for purposes of this chapter. However, property taxes imputed to the homestead
of the claimant or the dwelling unit occupied by the claimant that qualifies for homestead
treatment pursuant to section 273.124, subdivision 3, 4, 5, or 6deleted text end shall be included within the
term "property taxes payable" as defined in subdivision 13, new text begin to the extent allowed,
new text end notwithstanding the fact that ownership is not in the name of the claimant.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in 2024
and following years.
new text end
Sec. 20.
Minnesota Statutes 2022, 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. Regardless
of the limitations in section 280A(c)(5) of the Internal Revenue Code, "property taxes
payable" must be apportioned or reduced for the use of a portion of the claimant's homestead
for a business purpose if the claimant deducts any business depreciation expenses for the
use of a portion of the homestead or deducts expenses under section 280A of the Internal
Revenue Code for a business operated in the claimant's homestead. For deleted text begin homesteads which
are manufactured homes as defined in section 273.125, subdivision 8, includingdeleted text end manufactured
homes deleted text begin located in a manufactured home community owned by a cooperative organized under
chapter 308A or 308B, and park trailers taxed as manufactured homes under section 168.012,
subdivision 9deleted text end , "property taxes payable" shall also include 17 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 2024
and following years.
new text end
Sec. 21.
Minnesota Statutes 2022, section 290A.03, is amended by adding a subdivision
to read:
new text begin Subd. 16. new text end
new text begin Manufactured home. new text end
new text begin
"Manufactured home" means homesteads that are
manufactured homes as defined in section 273.125, subdivision 8, including manufactured
homes located in a manufactured home community owned by a cooperative organized under
chapter 308A or 308B, and park trailers taxed as manufactured homes under section 168.012,
subdivision 9.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in 2024
and following years.
new text end
Sec. 22.
Minnesota Statutes 2022, section 290A.04, subdivision 1, is amended to read:
Subdivision 1.
Refund.
A refund shall be allowed each claimant in the amount that
property taxes payable deleted text begin or rent constituting property taxesdeleted text end exceed the percentage of the
household income of the claimant specified in subdivision 2 deleted text begin or 2adeleted text end in the year for which the
taxes were levied deleted text begin or in the year in which the rent was paiddeleted text end as specified in subdivision 2 deleted text begin or
2adeleted text end . If the amount of property taxes payable deleted text begin or rent constituting property taxesdeleted text end is equal to
or less than the percentage of the household income of the claimant specified in subdivision
2 deleted text begin or 2adeleted text end in the year for which the taxes were levied deleted text begin or in the year in which the rent was paiddeleted text end ,
the claimant shall not be eligible for a state refund pursuant to this section.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in 2024
and following years.
new text end
Sec. 23.
Minnesota Statutes 2022, section 290A.04, subdivision 2h, is amended to read:
Subd. 2h.
Additional refund.
(a) If the gross property taxes payable on a homestead
increase more than 12 percent over the property taxes payable in the prior year on the same
property that is owned and occupied by the same owner on January 2 of both years, and the
amount of that increase is $100 or more, a claimant who is a homeowner shall be allowed
an additional refund equal to 60 percent of the amount of the increase over the greater of
12 percent of the prior year's property taxes payable or $100. This subdivision shall not
apply to any increase in the gross property taxes payable attributable to improvements made
to the homestead after the assessment date for the prior year's taxes. This subdivision shall
not apply to any increase in the gross property taxes payable attributable to the termination
of valuation exclusions under section 273.11, subdivision 16.
The maximum refund allowed under this subdivision is $1,000.
(b) For purposes of this subdivision "gross property taxes payable" means property taxes
payable determined without regard to the refund allowed under this subdivision.
(c) In addition to the other proofs required by this chapter, each claimant under this
subdivision shall file with the property tax refund return a copy of the property tax statement
for taxes payable in the preceding year or other documents required by the commissioner.
(d) Upon request, the appropriate county official shall make available the names and
addresses of the property taxpayers who may be eligible for the additional property tax
refund under this section. The information shall be provided deleted text begin on a magnetic computer diskdeleted text end new text begin
electronicallynew text end . The county may recover its costs by charging the person requesting the
information the reasonable cost for preparing the data. The information may not be used
for any purpose other than for notifying the homeowner of potential eligibility and assisting
the homeowner, without charge, in preparing a refund claim.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 24.
Minnesota Statutes 2022, section 290A.04, subdivision 5, is amended to read:
Subd. 5.
deleted text begin Combined renter and homeowner refunddeleted text end new text begin Homeowner refund and renter's
creditnew text end .
deleted text begin
In the case of a claimant who is entitled to a refund in a calendar year for claims
based both on rent constituting property taxes and property taxes payable, the refund
allowable equals the sum of the refunds allowable.
deleted text end
new text begin
A claimant is allowed to make a claim
for refund under this chapter in addition to any credit the claimant is eligible for under
section 290.0693.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in 2024
and following years.
new text end
Sec. 25.
Minnesota Statutes 2022, section 290A.05, is amended to read:
290A.05 COMBINED HOUSEHOLD INCOMEnew text begin ; RENTAL AGREEMENTS AND
REDUCTION OF PROPERTY TAXES PAYABLEnew text end .
new text begin (a) new text end If a person occupies a homestead with another person not related to the person as
the person's spouse, excluding dependents, roomers or boarders on contract, and has property
tax payable with respect to the homestead, the household income of the claimant or claimants
for the purpose of computing the refund allowed by section 290A.04 shall include the total
income received by the other persons residing in the homestead. For purposes of this section,
"dependent" includes a parent of the claimant or spouse who lives in the claimant's homestead
and does not have an ownership interest in the homestead.
new text begin (b)new text end If a person occupies a homestead with another person or persons not related to the
person as the person's spouse or as dependents, deleted text begin the property tax payable or rent constituting
property tax shall be reduced as follows.
deleted text end
deleted text begin Ifdeleted text end new text begin andnew text end the other person or persons are residing at the homestead undernew text begin anew text end rental or lease
agreementnew text begin with the homeownernew text end , the amount of property tax payable deleted text begin or rent constituting
property tax shall bedeleted text end new text begin equalsnew text end that portion not covered by the rental agreement.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in 2024
and property taxes payable in 2024, and following years.
new text end
Sec. 26.
Minnesota Statutes 2022, section 290A.07, subdivision 2a, is amended to read:
Subd. 2a.
Time of payment to deleted text begin renter ordeleted text end manufactured home homeowner.
A claimant
who is deleted text begin a renter ordeleted text end a homeowner who occupies a manufactured home, as defined in section
273.125, subdivision 8, paragraph (c), or a park trailer taxed as a manufactured home under
section 168.012, subdivision 9, shall receive full payment after August 1 and before August
15 or 60 days after receipt of the application, whichever is later.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in 2024
and following years.
new text end
Sec. 27.
Minnesota Statutes 2022, section 290A.08, is amended to read:
290A.08 ONE CLAIMANT PER HOUSEHOLD.
Only one claimant per household per year is entitled to relief under this chapter. Payment
of the claim for relief may be made payable to the spouses as one claimant. The
commissioner, upon written request, may issue separate checks, to the spouses for one-half
of the relief provided the original check has not been issued or has been returned. Individuals
related as spouses who were married during the year may elect to file a joint claim which
shall include each spouse's incomedeleted text begin , rent constituting property taxes,deleted text end and property taxes
payable. Spouses who were married for the entire year and were domiciled in the same
household for the entire year must file a joint claim. The maximum dollar amount allowable
for a joint claim shall not exceed the amount that one person could receive.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in 2024
and following years.
new text end
Sec. 28.
Minnesota Statutes 2022, section 290A.09, is amended to read:
290A.09 PROOF OF CLAIM.
new text begin (a) new text end Every claimant shall supply to the commissioner of revenue, in support of the claim,
proof of eligibility under this chapter, including but not limited to amount of deleted text begin rent paid ordeleted text end
property taxes accrued, deleted text begin name and address of owner or managing agent of property rented,deleted text end
changes in homestead, household membership, household income, size and nature of property
claimed as a homestead.
new text begin
(b) For manufactured homes, every claimant shall supply to the commissioner of revenue
the name and address of the owner or managing agent of the property rented.
new text end
new text begin (c) new text end Persons with a disability filing claims shall submit proof of disability in the form
and manner as the commissioner may prescribe. The department may require examination
and certification by the claimant's physician or by a physician designated by the
commissioner. The cost of any examination shall be borne by the claimant, unless the
examination proves the disability, in which case the cost of the examination shall be borne
by the commissioner.
new text begin (d) new text end A determination of disability of a claimant by the Social Security Administration
under Title II or Title XVI of the Social Security Act shall constitute presumptive proof of
disability.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in 2024
and following years.
new text end
Sec. 29.
Minnesota Statutes 2022, section 290A.091, is amended to read:
290A.091 CLAIMS OF TENANTS IN LEASEHOLD COOPERATIVES.
The cooperative manager of a leasehold cooperative shall furnish a statement to each
tenant by March 31 of the year in which the property tax is payable showing each unit's
share of the gross property tax and each unit's share of any property tax credits. Each tenant
may apply for a property tax refund under this chapter as a homeowner based on each
tenant's share of property taxes. The tenant may not deleted text begin include any rent constituting property
taxes paid on that unitdeleted text end new text begin claim the renter's credit under section 290.0693new text end . For the purposes of
this section, a leasehold cooperative is formed on the day that leasehold cooperative status
is granted by the appropriate county official.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in 2024
and following years.
new text end
Sec. 30.
Minnesota Statutes 2022, section 290A.13, is amended to read:
290A.13 NO RELIEF ALLOWED IN CERTAIN CASES.
No claim for relief under this chapter shall be allowed if the commissioner determines
that the claimant received title deleted text begin or tenancydeleted text end to the homestead primarily for the purpose of
receiving benefits under this chapter and not for bona fide residence purposes.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in 2024
and following years.
new text end
Sec. 31.
Minnesota Statutes 2022, section 290A.19, is amended to read:
290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE.
(a) The new text begin park new text end owner deleted text begin or managing agent of anydeleted text end new text begin of anew text end property for which rent is paid for
occupancy as a homestead must furnish a certificate of rent paid to a person who is a renter
on December 31, in the form prescribed by the commissioner. If the renter moves before
December 31, the new text begin park new text end owner deleted text begin or managing agentdeleted text end may give the certificate to the renter at
the time of moving, or mail the certificate to the forwarding address if an address has been
provided by the renter. The certificate must be made available to the renter before February
1 of the year following the year in which the rent was paid. The new text begin park new text end owner deleted text begin or managing
agentdeleted text end must retain a duplicate of each certificate or an equivalent record showing the same
information for a period of three years. The duplicate or other record must be made available
to the commissioner upon request.
(b) The commissioner may require the new text begin park new text end owner deleted text begin or managing agentdeleted text end , through a simple
process, to furnish to the commissioner on or before March 1 a copy of each certificate of
rent paid furnished to a renter for rent paid in the prior year. The commissioner shall prescribe
the content, format, and manner of the form pursuant to section 270C.30.new text begin The commissioner
may require the Social Security number, individual taxpayer identification number, federal
employer identification number, or Minnesota taxpayer identification number of the park
owner who is required to furnish a certificate of rent paid under this paragraph.new text end Prior to
implementation, the commissioner, after consulting with representatives of new text begin park new text end owners deleted text begin or
managing agentsdeleted text end , shall develop an implementation and administration plan for the
requirements of this paragraph that attempts to minimize financial burdens, administration
and compliance costs, and takes into consideration existing systems of new text begin park new text end owners deleted text begin and
managing agentsdeleted text end .
(c) For the purposes of this section, deleted text begin "owner" includesdeleted text end new text begin "park owner" meansnew text end a park owner
as defined under section 327C.015, subdivision 9, and "property" includes a lot as defined
under section 327C.015, subdivision 6.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in 2024
and following years.
new text end
Sec. 32.
Minnesota Statutes 2022, section 290A.25, is amended to read:
290A.25 VERIFICATION OF SOCIAL SECURITY NUMBERS.
Annually, the commissioner of revenue shall furnish a list to the county assessor
containing the names and Social Security numbers of persons who have applied for both
homestead classification under section 273.13 and a deleted text begin property tax refund as a renter under
this chapterdeleted text end new text begin renter's credit under section 290.0693new text end .
Within 90 days of the notification, the county assessor shall investigate to determine if
the homestead classification was improperly claimed. If the property owner does not qualify,
the county assessor shall notify the county auditor who will determine the amount of
homestead benefits that has been improperly allowed. For the purpose of this section,
"homestead benefits" has the meaning given in section 273.124, subdivision 13b. The county
auditor shall send a notice to persons who owned the affected property at the time the
homestead application related to the improper homestead was filed, demanding
reimbursement of the homestead benefits plus a penalty equal to 100 percent of the homestead
benefits. The person notified may appeal the county's determination with the Minnesota
Tax Court within 60 days of the date of the notice from the county as provided in section
273.124, subdivision 13b.
If the amount of homestead benefits and penalty is not paid within 60 days, and if no
appeal has been filed, the county auditor shall certify the amount of taxes and penalty to
the county treasurer. The county treasurer will add interest to the unpaid homestead benefits
and penalty amounts at the rate provided for delinquent personal property taxes for the
period beginning 60 days after demand for payment was made until payment. If the person
notified is the current owner of the property, the treasurer may add the total amount of
benefits, penalty, interest, and costs to the real estate taxes otherwise payable on the property
in the following year. If the person notified is not the current owner of the property, the
treasurer may collect the amounts due under the Revenue Recapture Act in chapter 270A,
or use any of the powers granted in sections 277.20 and 277.21 without exclusion, to enforce
payment of the benefits, penalty, interest, and costs, as if those amounts were delinquent
tax obligations of the person who owned the property at the time the application related to
the improperly allowed homestead was filed. The treasurer may relieve a prior owner of
personal liability for the benefits, penalty, interest, and costs, and instead extend those
amounts on the tax lists against the property for taxes payable in the following year to the
extent that the current owner agrees in writing.
Any amount of homestead benefits recovered by the county from the property owner
shall be distributed to the county, city or town, and school district where the property is
located in the same proportion that each taxing district's levy was to the total of the three
taxing districts' levy for the current year. Any amount recovered attributable to taconite
homestead credit shall be transmitted to the St. Louis County auditor to be deposited in the
taconite property tax relief account. Any amount recovered that is attributable to supplemental
homestead credit is to be transmitted to the commissioner of revenue for deposit in the
general fund of the state treasury. The total amount of penalty collected must be deposited
in the county general fund.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in 2024
and following years.
new text end
Sec. 33.
Minnesota Statutes 2022, section 327C.02, subdivision 5, is amended to read:
Subd. 5.
Written notice required.
A prospective resident, before being asked to sign
a rental agreement, must be given the following notice printed verbatim in boldface type
of a minimum size of ten points. The notice must be provided with the park residency
application. The notice must be posted in a conspicuous and public location in the park:
"IMPORTANT NOTICE
State law provides special rules for the owners, residents, and prospective residents of
manufactured home parks.
You may keep your home in the park as long as the park is in operation and you meet
your financial obligations, obey state and local laws which apply to the park, obey reasonable
park rules, do not substantially annoy or endanger the other residents or substantially
endanger park personnel and do not substantially damage the park premises. You may not
be evicted or have your rent increased or your services cut for complaining to the park owner
or to a governmental official.
If you receive an eviction notice and do not leave the park, the park owner may take you
to court. If you lose in court, a sheriff may remove you and your home from the park within
seven days. Or, the court may require you to leave the park within seven days but give you
60 days to sell the home within the park.
If you receive an eviction notice for a new or amended rule and the court finds the rule
to be reasonable and not a substantial modification of your original agreement, the court
will not order you to leave but will order you to comply with the rule within ten days. If
you do not comply within the time given or if you violate the rule at a later time, you will
be subject to eviction.
All park rules and policies must be reasonable. Your rent may not be increased more
than twice a year. Changes made in park rules after you become a park resident will not
apply to you if they substantially change your original agreement.
The park may not charge you an entrance fee.
The park may require a security deposit, but the deposit must not amount to more than
two months rent.
You have a right to sell the home in the park. But the sale is not final until the park
owner approves the buyer as a new resident, and you must advise in writing anyone who
wants to buy your home that the sale is subject to final approval by the park owner.
The park must provide to you, in writing, the procedures and criteria used to evaluate a
prospective resident. If your application is denied, you can request, in writing, the reason
why.
You must also disclose in writing certain safety information about your home to anyone
who wants to buy it in the park. You must give this information to the buyer before the sale,
in writing, on the form that is attached to this notice. You must completely and accurately
fill out the form and you and the buyer should each keep a copy.
Your rental agreement and the park rules contain important information about your rights
and duties. Read them carefully and keep a copy.
You must be given a copy of the shelter or evacuation plan for the park. This document
contains information on where to seek shelter in times of severe weather conditions. You
should carefully review the plan and keep a copy.
By February 1 of each year, the park must give you a certificate of rent deleted text begin constituting
property taxesdeleted text end new text begin paidnew text end as required by deleted text begin Minnesota Statutes, sectiondeleted text end new text begin sections 290.0693, subdivision
4, andnew text end 290A.19.
For further information concerning your rights, consult a private attorney. The state law
governing the rental of lots in manufactured home parks may also be enforced by the
Minnesota Attorney General."
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 34.
Minnesota Statutes 2022, section 462A.05, subdivision 24, is amended to read:
Subd. 24.
Housing for elderly, persons with physical or developmental disabilities,
and single parent families.
(a) It may engage in housing programs for low- and
moderate-income elderly, persons with physical or developmental disabilities, or single
parent families in the case of home sharing programs, as defined by the agency, to provide
grants or loans, with or without interest, for:
(1) accessibility improvements to residences occupied by elderly persons;
(2) housing sponsors, as defined by the agency, of home sharing programs to match
existing homeowners with prospective tenants who will contribute either rent or services
to the homeowner, where either the homeowner or the prospective tenant is elderly, a person
with physical or developmental disabilities, or the head of a single parent family;
(3) the construction of or conversion of existing buildings into structures for occupancy
by the elderly that contain from three to 12 private sleeping rooms with shared cooking
facilities and common space; and
(4) housing sponsors, as defined by the agency, to demonstrate the potential for home
equity conversion in Minnesota for the elderly, in both rural and urban areas, and to determine
the need in those equity conversions for consumer safeguards.
(b) In making the grants or loans, the agency shall determine the terms and conditions
of repayment and the appropriate security, if any, should repayment be required. The agency
may provide technical assistance to sponsors of home sharing programs or may contract or
delegate the provision of the technical assistance in accordance with section 462A.07,
subdivision 12.
(c) Housing sponsors who receive funding through these programs shall provide
homeowners and tenants participating in a home sharing program with information regarding
their rights and obligations as they relate to federal and state tax law including, but not
limited to, taxable rental income, homestead classification under chapter 273,new text begin the renter's
credit under section 290.0693,new text end and the property tax refund act under chapter 290A.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in 2024
and following years.
new text end
Sec. 35. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2022, sections 290A.03, subdivisions 9 and 11; 290A.04, subdivision
2a; and 290A.23, subdivision 1,
new text end
new text begin
are repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for claims based on rent paid in 2024
and following years.
new text end
ARTICLE 5
TAX INCREMENT FINANCING
Section 1.
Minnesota Statutes 2022, section 469.174, subdivision 14, is amended to read:
Subd. 14.
Administrative expenses.
new text begin (a) new text end "Administrative expenses"new text begin or "administrative
costs"new text end means deleted text begin alldeleted text end new text begin documented new text end expenditures of an authority deleted text begin other thandeleted text end new text begin or municipality,
including but not limited tonew text end :
new text begin
(1) amounts paid for services provided by bond counsel, fiscal consultants, and economic
development consultants;
new text end
new text begin
(2) allocated expenses and staff time of the authority or municipality for administering
a project, including but not limited to preparing the tax increment financing plan, negotiating
and preparing agreements, accounting for segregated funds of the district, preparing and
submitting required reporting for the district, and reviewing and monitoring compliance
with sections 469.174 to 469.1794;
new text end
new text begin
(3) amounts paid to publish annual disclosures and provide notices under section 469.175;
new text end
new text begin
(4) amounts to provide for the usual and customary maintenance and operation of
properties purchased with tax increments, including necessary reserves for repairs and the
cost of any insurance;
new text end
new text begin
(5) amounts allocated or paid to prepare a development action response plan for a soils
condition district or hazardous substance subdistrict; and
new text end
new text begin
(6) amounts used to pay bonds, interfund loans, or other financial obligations to the
extent those obligations were used to finance costs described in clauses (1) to (5).
new text end
new text begin
(b) Administrative expenses and administrative costs do not include:
new text end
(1) amounts paid for the purchase of landnew text begin and buildingsnew text end ;
(2) amounts paid to contractors or others providing materials and servicesdeleted text begin , including
architectural and engineering services,deleted text end directly connected with the physical development
of the real property in the projectnew text begin , including architectural and engineering services and
materials and services for demolition, soil correction, and the construction or installation
of public improvementsnew text end ;
(3) relocation benefits paid to or services provided for persons residing or businesses
located in the project;
deleted text begin
(4) amounts used to pay principal or interest on, fund a reserve for, or sell at a discount
bonds issued pursuant to section 469.178; or
deleted text end
deleted text begin (5)deleted text end new text begin (4) amounts paid for property taxes or payments in lieu of taxes; and
new text end
new text begin (5) new text end amounts used to pay new text begin principal or interest on, fund a reserve for, or sell at a discount
bonds issued pursuant to section 469.178 or new text end other financial obligations to the extent those
obligations were used to finance costs described in clauses (1) to deleted text begin (3)deleted text end new text begin (4)new text end .
deleted text begin
For districts for which the requests for certifications were made before August 1, 1979,
or after June 30, 1982, "administrative expenses" includes amounts paid for services provided
by bond counsel, fiscal consultants, and planning or economic development consultants.
deleted text end
new text begin
This definition does not apply to administrative expenses or administrative costs referenced
under section 469.176, subdivision 4h.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies to all districts, regardless of when the request for certification was made.
new text end
Sec. 2.
Minnesota Statutes 2022, section 469.174, is amended by adding a subdivision to
read:
new text begin Subd. 30. new text end
new text begin Pay-as-you-go contract and note. new text end
new text begin
"Pay-as-you-go contract and note" means
a written note or contractual obligation under which all of the following apply:
new text end
new text begin
(1) the note or contractual obligation evidences an authority's commitment to reimburse
a developer, property owner, or note holder for the payment of costs of activities, including
any interest on unreimbursed costs;
new text end
new text begin
(2) the reimbursement is made from tax increment revenues identified in the note or
contractual obligation as received by a municipality or authority as taxes are paid; and
new text end
new text begin
(3) the risk that available tax increments may be insufficient to fully reimburse the costs
is borne by the developer, property owner, or note holder.
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. 3.
Minnesota Statutes 2022, section 469.175, subdivision 6, is amended to read:
Subd. 6.
Annual financial reporting.
(a) The state auditor shall develop a uniform
system of accounting and financial reporting for tax increment financing districts. The
system of accounting and financial reporting shall, as nearly as possible:
(1) provide for full disclosure of the sources and uses of tax increments of the district;
(2) permit comparison and reconciliation with the affected local government's accounts
and financial reports;
(3) permit auditing of the funds expended on behalf of a district, including a single
district that is part of a multidistrict project or that is funded in part or whole through the
use of a development account funded with tax increments from other districts or with other
public money;
(4) be consistent with generally accepted accounting principles.
(b) The authority must annually submit to the state auditor a financial report in compliance
with paragraph (a). Copies of the report must also be provided to the county auditor and to
the governing body of the municipality, if the authority is not the municipality. To the extent
necessary to permit compliance with the requirement of financial reporting, the county and
any other appropriate local government unit or private entity must provide the necessary
records or information to the authority or the state auditor as provided by the system of
accounting and financial reporting developed pursuant to paragraph (a). The authority must
submit the annual report for a year on or before August 1 of the next year.
(c) The annual financial report must also include the following items:
(1) the original net tax capacity of the district and any subdistrict under section 469.177,
subdivision 1;
(2) the net tax capacity for the reporting period of the district and any subdistrict;
(3) the captured net tax capacity of the district;
(4) any fiscal disparity deduction from the captured net tax capacity under section
469.177, subdivision 3;
(5) the captured net tax capacity retained for tax increment financing under section
469.177, subdivision 2, paragraph (b), clause (1);
(6) any captured net tax capacity distributed among affected taxing districts under section
469.177, subdivision 2, paragraph (b), clause (2);
(7) the type of district;
(8) the date the municipality approved the tax increment financing plan and the date of
approval of any modification of the tax increment financing plan, the approval of which
requires notice, discussion, a public hearing, and findings under subdivision 4, paragraph
(a);
(9) the date the authority first requested certification of the original net tax capacity of
the district and the date of the request for certification regarding any parcel added to the
district;
(10) the date the county auditor first certified the original net tax capacity of the district
and the date of certification of the original net tax capacity of any parcel added to the district;
(11) the deleted text begin month anddeleted text end year in which the authority has received or anticipates it will receive
the first increment from the district;
(12) the date the district must be decertified;
(13) for the reporting period and prior years of the district, the actual amount received
from, at least, the following categories:
(i) tax increments paid by the captured net tax capacity retained for tax increment
financing under section 469.177, subdivision 2, paragraph (b), clause (1), but excluding any
excess taxes;
(ii) tax increments that are interest or other investment earnings on or from tax increments;
(iii) tax increments that are proceeds from the sale or lease of property, tangible or
intangible, purchased by the authority with tax increments;
(iv) tax increments that are repayments of loans or other advances made by the authority
with tax increments;
(v) bond proceeds; and
(vi) the agricultural homestead market value credit paid to the authority under section
273.1384;
(14) for the reporting period and for the prior years of the district, the actual amount
expended for, at least, the following categories:
(i) acquisition of land and buildings through condemnation or purchase;
(ii) site improvements or preparation costs;
(iii) installation of public utilities, parking facilities, streets, roads, sidewalks, or other
similar public improvements;
(iv) administrative costs, including the allocated cost of the authority; and
(v) for housing districts, construction of affordable housing;
(15) the amount of any payments for activities and improvements located outside of the
district that are paid for or financed with tax increments;
(16) the amount of payments of principal and interest that are made during the reporting
period on any nondefeased:
(i) general obligation tax increment financing bonds; and
(ii) other tax increment financing bonds, including pay-as-you-go contracts and notes;
(17) the principal amount, at the end of the reporting period, of any nondefeased:
(i) general obligation tax increment financing bonds; and
(ii) other tax increment financing bonds, including pay-as-you-go contracts and notes;
(18) the amount of principal and interest payments that are due for the current calendar
year on any nondefeased:
(i) general obligation tax increment financing bonds; and
(ii) other tax increment financing bonds, including pay-as-you-go contracts and notes;
(19) if the fiscal disparities contribution under chapter 276A or 473F for the district is
computed under section 469.177, subdivision 3, paragraph (a), the amount of total increased
property taxes to be paid from outside the tax increment financing district; and
(20) any additional information the state auditor may require.
(d) The reporting requirements imposed by this subdivision apply to districts certified
before, on, and after August 1, 1979.
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 2022, section 469.176, subdivision 3, is amended to read:
Subd. 3.
Limitation on administrative expenses.
(a) For districts for which certification
was requested before August 1, 2001, no tax increment shall be used to pay any
administrative expenses for a project which exceed ten percent of the total estimated tax
increment expenditures authorized by the tax increment financing plan ornew text begin ten percent ofnew text end the
total tax increment expenditures for the projectnew text begin net of any amounts returned to the county
auditor as excess increment; as returned increment under section 469.1763, subdivision 4,
paragraph (g); or as remedies under section 469.1771, subdivision 2new text end , whichever is less.
(b) For districts for which certification was requested after July 31, 2001, no tax increment
may be used to pay any administrative expenses for a project which exceed ten percent of
total estimated tax increment expenditures authorized by the tax increment financing plan
ornew text begin ten percent ofnew text end the total tax increments, as defined in section 469.174, subdivision 25,
clause (1), deleted text begin fromdeleted text end new text begin received fornew text end the districtnew text begin net of any amounts returned to the county auditor
as excess increment; as returned increment under section 469.1763, subdivision 4, paragraph
(g); or as remedies under section 469.1771, subdivision 2new text end , whichever is less.
(c) Increments used to pay the county's administrative expenses under subdivision 4h
are not subject to the percentage limits in this subdivision.
new text begin
(d) Increments defined under section 469.174, subdivision 25, clause (2), used for
administrative expenses described under section 469.174, subdivision 14, paragraph (a),
clause (4), are not subject to the percentage limits in this subdivision.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies to all districts, regardless of when the request for certification was made.
new text end
Sec. 5.
Minnesota Statutes 2022, section 469.176, subdivision 4, is amended to read:
Subd. 4.
Limitation on use of tax increment; general rule.
All revenues derived from
tax increment shall be used in accordance with the tax increment financing plan. The revenues
shall be used solely for the following purposes: (1) to pay the principal of and interest on
bonds issued to finance a project; (2) by a rural development financing authority for the
purposes stated in section 469.142deleted text begin ,deleted text end new text begin ;new text end by a port authority or municipality exercising the powers
of a port authority to finance or otherwise pay the cost of redevelopment pursuant to sections
469.048 to 469.068deleted text begin ,deleted text end new text begin ;new text end by an economic development authority to finance or otherwise pay
the cost of redevelopment pursuant to sections 469.090 to 469.108deleted text begin ,deleted text end new text begin ;new text end by a housing and
redevelopment authority or economic development authority to finance or otherwise pay
public redevelopment costs pursuant to sections 469.001 to 469.047deleted text begin ,deleted text end new text begin ;new text end by a municipality or
economic development authority to finance or otherwise pay the capital and administration
costs of a development district pursuant to sections 469.124 to 469.133deleted text begin ,deleted text end new text begin ;new text end by a municipality
or authority to finance or otherwise pay the costs of developing and implementing a
development action response plandeleted text begin ,deleted text end new text begin ;new text end by a municipality or redevelopment agency to finance
or otherwise pay premiums for insurance or other security guaranteeing the payment when
due of principal of and interest on the bonds pursuant to chapter 462C, sections 469.152 to
469.165, or both, or to accumulate and maintain a reserve securing the payment when due
of the principal of and interest on the bonds pursuant to chapter 462C, sections 469.152 to
469.165, or both, which revenues in the reserve shall not exceed, subsequent to the fifth
anniversary of the date of issue of the first bond issue secured by the reserve, an amount
equal to 20 percent of the aggregate principal amount of the outstanding and nondefeased
bonds secured by the reservenew text begin ; and (3) to pay administrative expensesnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies to all districts, regardless of when the request for certification was made.
new text end
Sec. 6.
Minnesota Statutes 2022, section 469.1761, subdivision 1, is amended to read:
Subdivision 1.
Requirement imposed.
(a) In order for a tax increment financing district
to qualify as a housing district:
(1) the income limitations provided in this section must be satisfiednew text begin if the district is
located either in a metropolitan county as defined by section 473.121, subdivision 4, or in
a city with a population greater than 50,000new text end ; and
(2) no more than 20 percent of the square footage of buildings that receive assistance
from tax increments may consist of commercial, retail, or other nonresidential uses.
(b) The requirements imposed by this section apply to property receiving assistance
financed with tax increments, including interest reduction, land transfers at less than the
authority's cost of acquisition, utility service or connections, roads, parking facilities, or
other subsidies. The provisions of this section do not apply to districts located in a targeted
area as defined in section 462C.02, subdivision 9, clause (e).
(c) For purposes of the requirements of paragraph (a), the authority may elect to treat
an addition to an existing structure as a separate building if:
(1) construction of the addition begins more than three years after construction of the
existing structure was completed; and
(2) for an addition that does not meet the requirements of paragraph (a), clause (2), if it
is treated as a separate building, the addition was not contemplated by the tax increment
financing plan which includes the existing structure.
Sec. 7.
Minnesota Statutes 2022, 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 revenues
derived from tax increments paid by properties in the district that are expended on costs
under section 469.176, subdivision 4h, deleted text begin paragraph (b),deleted text end 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 arenew text begin considered to be expendituresnew text end 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; and
(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 housing; or
(4) be used to develop housing:
(i) if the market value of the housing does not exceed the lesser of:
(A) 150 percent of the average market value of single-family homes in that municipality;
or
(B) $200,000 for municipalities located in the metropolitan area, as defined in section
473.121, or $125,000 for all other municipalities; and
(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 contains a residence containing one to four family dwelling units that has been
vacant for six or more months and 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 has expired; or
(5) to assist owner-occupied housing that meets the requirements of section 469.1761,
subdivision 2.
(e) 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 begin
(f) For purposes of determining whether the minimum percentage of expenditures for
activities in the district and maximum percentages of expenditures allowed on activities
outside the district have been met under this subdivision, any amounts returned to the county
auditor as excess increment, as returned increment under subdivision 4, paragraph (g), or
as remedies under section 469.1771, subdivision 2, shall first be subtracted from the total
revenues derived from tax increments paid by properties in the district. Any other amounts
returned to the county auditor for purposes other than a remedy under section 469.1771,
subdivision 3, are considered to be expenditures for activities in the district.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies to all districts with a request for certification date after April 30, 1990, except that
paragraph (f) shall apply to districts decertifying after December 31, 2023.
new text end
Sec. 8.
Minnesota Statutes 2022, section 469.1763, subdivision 3, is amended to read:
Subd. 3.
Five-year rule.
(a) Revenues derived from tax increments paid by properties
in the district new text begin that new text end are deleted text begin considered to have beendeleted text end expended on an activity within the district
deleted text begin underdeleted text end new text begin will instead be considered to have been expended on an activity outside the district
for purposes ofnew text end subdivision 2 deleted text begin only if one of the following occursdeleted text end new text begin unlessnew text end :
(1) before or within five years after certification of the district, the revenues are actually
paid to a third party with respect to the activity;
(2) bonds, the proceeds of which must be used to finance the activity, are issued and
sold to a third party before or within five years after certificationnew text begin of the districtnew text end , the revenues
are spent to repay the bonds, and the proceeds of the bonds either are, on the date of issuance,
reasonably expected to be spent before the end of the later of (i) the five-year period, or (ii)
a reasonable temporary period within the meaning of the use of that term under section
148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve
or replacement fund;
(3) binding contracts with a third party are entered into for performance of the activity
before or within five years after certification of the district and the revenues are spent under
the contractual obligation;
(4) costs with respect to the activity are paid before or within five years after certification
of the district and the revenues are spent to reimburse a party for payment of the costs,
including interest on unreimbursed costs; or
(5) deleted text begin expenditures are madedeleted text end new text begin revenues are spentnew text end for housing purposes as deleted text begin permitteddeleted text end new text begin describednew text end
by subdivision 2, deleted text begin paragraphsdeleted text end new text begin paragraphnew text end (b) deleted text begin and (d), or for public infrastructure purposes
within a zone as permitted by subdivision 2, paragraph (e)deleted text end .
(b) For purposes of this subdivision, bonds include subsequent refunding bonds if the
original refunded bonds meet the requirements of paragraph (a), clause (2).
(c) For a redevelopment district or a renewal and renovation district certified after June
30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) are
extended to ten years after certification of the district. For a redevelopment district certified
after April 20, 2009, and before June 30, 2012, the five-year periods described in paragraph
(a) are extended to eight years after certification of the district. This extension is provided
primarily to accommodate delays in development activities due to unanticipated economic
circumstances.
(d) For a redevelopment district that was certified after December 31, 2017, and before
June 30, 2020, the five-year periods described in paragraph (a) are extended to eight years
after certification of the district.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies to all districts with a request for certification date after April 30, 1990.
new text end
Sec. 9.
Minnesota Statutes 2022, section 469.1763, subdivision 4, is amended to read:
Subd. 4.
Use of revenues for decertification.
deleted text begin
(a) In each year beginning with the sixth
year following certification of the district, or beginning with the ninth year following
certification of the district for districts whose five-year rule is extended to eight years under
subdivision 3, paragraph (d), if the applicable in-district percent of the revenues derived
from tax increments paid by properties in the district exceeds the amount of expenditures
that have been made for costs permitted under subdivision 3, an amount equal to the
difference between the in-district percent of the revenues derived from tax increments paid
by properties in the district and the amount of expenditures that have been made for costs
permitted under subdivision 3 must be used and only used to pay or defease the following
or be set aside to pay the following:
deleted text end
deleted text begin
(1) outstanding bonds, as defined in subdivision 3, paragraphs (a), clause (2), and (b);
deleted text end
deleted text begin
(2) contracts, as defined in subdivision 3, paragraph (a), clauses (3) and (4);
deleted text end
deleted text begin
(3) credit enhanced bonds to which the revenues derived from tax increments are pledged,
but only to the extent that revenues of the district for which the credit enhanced bonds were
issued are insufficient to pay the bonds and to the extent that the increments from the
applicable pooling percent share for the district are insufficient; or
deleted text end
deleted text begin
(4) the amount provided by the tax increment financing plan to be paid under subdivision
2, paragraphs (b), (d), and (e).
deleted text end
deleted text begin (b) Thedeleted text end new text begin (a) Beginning with the sixth year following certification of the district, or
beginning with the year following the extended period for districts whose five-year period
is extended under subdivision 3, paragraphs (c) and (d), anew text end district must be decertified deleted text begin and
the pledge of tax increment discharged when the outstanding bonds have been defeased anddeleted text end
when deleted text begin sufficient money has been set aside to pay, based ondeleted text end new text begin the product of the applicable
in-district percentage multiplied bynew text end the deleted text begin increment to bedeleted text end new text begin cumulative revenues derived from
tax increments paid by properties in the district that have been new text end collected through the end of
the calendar year,new text begin equals or exceeds an amount sufficient to paynew text end the following deleted text begin amountsdeleted text end :
(1) deleted text begin contractualdeleted text end new text begin any costs and new text end obligations deleted text begin as defineddeleted text end new text begin described new text end in subdivision 3, deleted text begin paragraphdeleted text end new text begin
paragraphsnew text end (a)deleted text begin , clauses (3) and (4);deleted text end new text begin and (b), excluding those under a qualifying pay-as-you-go
contract and note;
new text end
deleted text begin
(2) the amount specified in the tax increment financing plan for activities qualifying
under subdivision 2, paragraph (b), that have not been funded with the proceeds of bonds
qualifying under paragraph (a), clause (1); and
deleted text end
deleted text begin
(3) the additional expenditures permitted by the tax increment financing plan for housing
activities under an election under subdivision 2, paragraph (d), that have not been funded
with the proceeds of bonds qualifying under paragraph (a), clause (1).
deleted text end
new text begin
(2) any accrued interest on the costs and obligations in clause (1), payable in accordance
with the terms thereof; and
new text end
new text begin
(3) any administrative expenses falling within the exception in subdivision 2, paragraph
(c).
new text end
new text begin
(b) For districts with an outstanding qualifying pay-as-you-go contract and note, the
required decertification under paragraph (a) is deferred until the end of the remaining term
of the last outstanding qualifying pay-as-you-go contract and note, and the applicable
in-district percentage of cumulative revenues derived from tax increments paid by properties
in the district are sufficient to pay the obligations identified in subdivision 3, paragraphs
(a) and (b), provided that the deferral shall not exceed the district's duration limit under
section 469.176. During the deferral, beginning at the time paragraph (a) would otherwise
require decertification, the authority must annually either:
new text end
new text begin
(1) remove from the district, by the end of the year, all parcels that will no longer have
their tax increment revenue pledged or subject to a qualifying pay-as-you-go contract and
note or other costs and obligations described in subdivision 3, paragraphs (a) and (b), after
the end of the year; or
new text end
new text begin
(2) use the applicable in-district percentage of revenues derived from tax increments
paid by those parcels to prepay an outstanding qualifying pay-as-you-go contract and note
of the district or other costs and obligations described in subdivision 3, paragraphs (a) and
(b), or to accumulate and use revenues derived from tax increments paid by those parcels
as permitted under paragraph (i).
new text end
new text begin
The authority must remove any parcels as required by this paragraph by modification
of the tax increment financing plan and notify the county auditor of the removed parcels by
the end of the same calendar year. Notwithstanding section 469.175, subdivision 4,
paragraphs (b), clause (1), and (e), the notice, discussion, public hearing, and findings
required for approval of the original plan are not required for such a modification.
new text end
new text begin
(c) Notwithstanding paragraph (a) or (b), if tax increment was pledged prior to August
1, 2023, to a bond other than a pay-as-you-go contract and note or interfund loan, and the
proceeds of the bond were used solely or in part to pay authorized costs for activities outside
the district, the requirement to decertify under paragraph (a) or remove parcels under
paragraph (b) shall not apply prior to the bond being fully paid or defeased.
new text end
new text begin
(d) For purposes of this subdivision, "applicable in-district percentage" means the
percentage of tax increment revenue that is restricted for expenditures within the district,
as determined under subdivision 2, paragraphs (a) and (d), for the district.
new text end
new text begin
(e) For purposes of this subdivision, "qualifying pay-as-you-go contract and note" means
a pay-as-you-go contract and note that is considered to be for activities within the district
under subdivision 3, paragraph (a).
new text end
new text begin
(f) For purposes of this subdivision, the reference in paragraph (a) to cumulative revenues
derived from tax increments paid by properties in the district through the end of the calendar
year shall include any final settlement distributions made in the following January. For
purposes of the calculation in paragraph (a), any amounts returned to the county auditor as
excess increment or as remedies under section 469.1771, subdivision 2, shall first be
subtracted from the cumulative revenues derived from tax increments paid by properties in
the district.
new text end
new text begin
(g) The timing and implementation of a decertification pursuant to paragraphs (a) and
(b) shall be subject to the following:
new text end
new text begin
(1) when a decertification is required under paragraph (a) and not deferred under
paragraph (b), the authority must, as soon as practical and no later than the final settlement
distribution date of January 25 as identified in section 276.111 for the property taxes payable
in the calendar year identified in paragraph (a), make the decertification by resolution
effective for the end of the calendar year identified in paragraph (a), and communicate the
decertification to the county auditor;
new text end
new text begin
(2) when a decertification is deferred under paragraph (b), the authority must, by
December 31 of the year in which the last qualifying pay-as-you-go contract and note reaches
termination, make the decertification by resolution effective for the end of that calendar
year and communicate the decertification to the county auditor;
new text end
new text begin
(3) if the county auditor is unable to prevent tax increments from being calculated for
taxes payable in the year following the year for which the decertification is made effective,
the county auditor may redistribute the tax increments in the same manner as excess
increments under section 469.176, subdivision 2, paragraph (c), clause (4), without first
distributing them to the authority; and
new text end
new text begin
(4) if tax increments are distributed to an authority for a taxes payable year after the year
for which the decertification was required to be effective, the authority must return the
amount of the distributions to the county auditor for redistribution in the same manner as
excess increments under section 469.176, subdivision 2, paragraph (c), clause (4).
new text end
new text begin
(h) The provisions of this subdivision do not apply to a housing district.
new text end
new text begin
(i) Notwithstanding anything to the contrary in paragraph (a) or (b), if an authority has
made the election in the tax increment financing plan for the district under subdivision 2,
paragraph (d), then the requirement to decertify under paragraph (a) or remove parcels under
paragraph (b) shall not apply prior to such time that the accumulated revenues derived from
tax increments paid by properties in the district that are eligible to be expended for housing
purposes described under subdivision 2, paragraph (d), equals the lesser of the amount the
authority is permitted to expend for housing purposes described under subdivision 2,
paragraph (d), or the amount authorized for such purposes in the tax increment financing
plan. Increment revenues collected after the district would have decertified under paragraph
(a) or from parcels which otherwise would be subject to removal under paragraph (b), absent
the exception of this paragraph, shall be used solely for housing purposes as described in
subdivision 2, paragraph (d).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies to all districts with a request for certification after April 30, 1990, except that the
requirements under paragraph (b) to remove parcels or use revenues from such parcels as
prescribed in paragraph (b) apply only to districts for which the request for certification
was made after the day following final enactment.
new text end
Sec. 10.
Minnesota Statutes 2022, section 469.1763, subdivision 6, is amended to read:
Subd. 6.
Pooling permitted for deficits.
(a) This subdivision applies only to districts
for which the request for certification was made before August 1, 2001, and without regard
to whether the request for certification was made prior to August 1, 1979.
(b) The municipality for the district may transfer available increments from another tax
increment financing district located in the municipality, if the transfer is necessary to
eliminate a deficit in the district to which the increments are transferred. The municipality
may transfer increments as provided by this subdivision without regard to whether the
transfer or expenditure is authorized by the tax increment financing plan for the district
from which the transfer is made. A deficit in the district for purposes of this subdivision
means the lesser of the following two amounts:
(1)deleted text begin (i)deleted text end the amount due during the calendar year to pay preexisting obligations of the
district; minusnew text begin the sum of
new text end
deleted text begin (ii)deleted text end new text begin (i)new text end the total increments collected or to be collected from properties located within
the district that are available for the calendar year including amounts collected in prior years
that are currently available; plus
deleted text begin (iii)deleted text end new text begin (ii)new text end total increments from properties located in other districts in the municipality
including amounts collected in prior years that are available to be used to meet the district's
obligations under this section, excluding this subdivision, or other provisions of law; or
(2) the reduction in increments collected from properties located in the district for the
calendar year as a result of the changes in classification rates in Laws 1997, chapter 231,
article 1; Laws 1998, chapter 389, article 2; and Laws 1999, chapter 243, and Laws 2001,
First Special Session chapter 5, or the elimination of the general education tax levy under
Laws 2001, First Special Session chapter 5.
The authority may compute the deficit amount under clause (1) only (without regard to
the limit under clause (2)) if the authority makes an irrevocable commitment, by resolution,
to use increments from the district to which increments are to be transferred and any
transferred increments are only used to pay preexisting obligations and administrative
expenses for the district that are required to be paid under section 469.176, subdivision 4h,
paragraph (a).
(c) A preexisting obligation means:
(1) bonds issued and sold before August 1, 2001, or bonds issued pursuant to a binding
contract requiring the issuance of bonds entered into before July 1, 2001, and bonds issued
to refund such bonds or to reimburse expenditures made in conjunction with a signed
contractual agreement entered into before August 1, 2001, to the extent that the bonds are
secured by a pledge of increments from the tax increment financing district; and
(2) binding contracts entered into before August 1, 2001, to the extent that the contracts
require payments secured by a pledge of increments from the tax increment financing district.
(d) The municipality may require a development authority, other than a seaway port
authority, to transfer available increments including amounts collected in prior years that
are currently available for any of its tax increment financing districts in the municipality to
make up an insufficiency in another district in the municipality, regardless of whether the
district was established by the development authority or another development authority.
This authority applies notwithstanding any law to the contrary, but applies only to a
development authority that:
(1) was established by the municipality; or
(2) the governing body of which is appointed, in whole or part, by the municipality or
an officer of the municipality or which consists, in whole or part, of members of the
governing body of the municipality. The municipality may use this authority only after it
has first used all available increments of the receiving development authority to eliminate
the insufficiency and exercised any permitted action under section 469.1792, subdivision
3, for preexisting districts of the receiving development authority to eliminate the
insufficiency.
(e) The authority under this subdivision to spend tax increments outside of the area of
the district from which the tax increments were collected:
(1) is an exception to the restrictions under section 469.176, subdivisions 4b, 4c, 4d, 4e,
4i, and 4j; the expenditure limits under section 469.176, subdivision 1c; and the other
provisions of this section; and the percentage restrictions under subdivision 2 must be
calculated after deducting increments spent under this subdivision from the total increments
for the district; and
(2) applies notwithstanding the provisions of the Tax Increment Financing Act in effect
for districts for which the request for certification was made before June 30, 1982, or any
other law to the contrary.
(f) If a preexisting obligation requires the development authority to pay an amount that
is limited to the increment from the district or a specific development within the district and
if the obligation requires paying a higher amount to the extent that increments are available,
the municipality may determine that the amount due under the preexisting obligation equals
the higher amount and may authorize the transfer of increments under this subdivision to
pay up to the higher amount. The existence of a guarantee of obligations by the individual
or entity that would receive the payment under this paragraph is disregarded in the
determination of eligibility to pool under this subdivision. The authority to transfer increments
under this paragraph may only be used to the extent that the payment of all other preexisting
obligations in the municipality due during the calendar year have been satisfied.
(g) For transfers of increments made in calendar year 2005 and later, the reduction in
increments as a result of the elimination of the general education tax levy for purposes of
paragraph (b), clause (2), for a taxes payable year equals the general education tax rate for
the school district under Minnesota Statutes 2000, section 273.1382, subdivision 1, for taxes
payable in 2001, multiplied by the captured tax capacity of the district for the current taxes
payable year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies only to districts for which the request for certification was made before August 1,
2001, and without regard to whether the request for certification was made prior to August
1, 1979.
new text end
Sec. 11.
Minnesota Statutes 2022, section 469.1771, subdivision 2, is amended to read:
Subd. 2.
Collection of increment.
If an authority includes or retains a parcel of property
in a tax increment financing district that does not qualify for inclusion or retention within
the district, the authority must pay to the county auditor an amount of money equal to the
increment collected from the property for the year or years. The property must be eliminated
from the original and captured tax capacity of the district effective for the current property
tax assessment year. deleted text begin This subdivision does not apply to a failure to decertify a district at
the end of the duration limit specified in the tax increment financing plan.
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. 12.
Minnesota Statutes 2022, section 469.1771, subdivision 2a, is amended to read:
Subd. 2a.
Suspension of distribution of tax increment.
(a) If an authority fails to make
a disclosure or to submit a report containing the information required by section 469.175,
subdivisions 5 and 6, regarding a tax increment financing district within the time provided
in section 469.175, subdivisions 5 and 6, the state auditor shall mail to the authority a written
notice that it or the municipality has failed to make the required disclosure or to submit a
required report with respect to a particular district. The state auditor shall mail the notice
on or before the third Tuesday of August of the year in which the disclosure or report was
required to be made or submitted. The notice must describe the consequences of failing to
disclose or submit a report as provided in paragraph (b). If the state auditor has not received
a copy of a disclosure or a report described in this paragraph on or before the first day of
October of the year in which the disclosure or report was required to be made or submitted,
the state auditor shall mail a written notice to the county auditor to hold the distribution of
tax increment from a particular district.
(b) Upon receiving written notice from the state auditor to hold the distribution of tax
increment, the county auditor shall holddeleted text begin :deleted text end new text begin all tax increment that otherwise would be distributed
after receipt of the notice, until further notified under paragraph (c).
new text end
deleted text begin
(1) 100 percent of the amount of tax increment that otherwise would be distributed, if
the distribution is made after the first day of October but during the year in which the
disclosure or report was required to be made or submitted; or
deleted text end
deleted text begin
(2) 100 percent of the amount of tax increment that otherwise would be distributed, if
the distribution is made after December 31 of the year in which the disclosure or report was
required to be made or submitted.
deleted text end
(c) Upon receiving the copy of the disclosure and all of the reports described in paragraph
(a) with respect to a district regarding which the state auditor has mailed to the county
auditor a written notice to hold distribution of tax increment, the state auditor shall mail to
the county auditor a written notice lifting the hold and authorizing the county auditor to
distribute to the authority or municipality any tax increment that the county auditor had held
pursuant to paragraph (b). The state auditor shall mail the written notice required by this
paragraph within five working days after receiving the last outstanding item. The county
auditor shall distribute the tax increment to the authority or municipality within 15 working
days after receiving the written notice required by this paragraph.
(d) Notwithstanding any law to the contrary, any interest that accrues on tax increment
while it is being held by the county auditor pursuant to paragraph (b) is not tax increment
and may be retained by the county.
(e) For purposes of sections 469.176, subdivisions 1a to 1g, and 469.177, subdivision
11, tax increment being held by the county auditor pursuant to paragraph (b) is considered
distributed to or received by the authority or municipality as of the time that it would have
been distributed or received but for paragraph (b).
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 2022, section 469.1771, subdivision 3, is amended to read:
Subd. 3.
Expenditure of increment.
If an authority expends revenues derived from tax
increments, including the proceeds of tax increment bonds, (1) for a purpose that is not a
permitted project under deleted text begin section 469.176deleted text end new text begin sections 469.174 to 469.1794new text end , (2) for a purpose
that is not permitted under deleted text begin section 469.176deleted text end new text begin sections 469.174 to 469.1794new text end for the district
from which the increment was received, or (3) on activities outside of the geographic area
in which the revenues may be expended under this chapter, the authority must pay to the
county auditor an amount equal to the expenditures made in violation of the law.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 14.
Laws 2008, chapter 366, article 5, section 26, as amended by Laws 2013, chapter
143, article 9, section 11, and Laws 2019, First Special Session chapter 6, article 7, section
2, is amended to read:
Sec. 26. BLOOMINGTON TAX INCREMENT FINANCING; FIVE-YEAR RULE.
(a) The requirements 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, are increased to a deleted text begin 21-yeardeleted text end new text begin 26-year new text end period for the Port
Authority of the City of Bloomington's Tax Increment Financing District No. 1-I,
Bloomington Central Station.new text begin The requirements of Minnesota Statutes, section 469.1763,
subdivision 4, apply to the district in each year beginning with the 27th year following
certification of the district.
new text end
(b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any other
law to the contrary, the city of Bloomington and its port authority may extend the duration
limits of the district for a period through December 31, 2039.
new text begin
(c) Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any other
law to the contrary, the city of Bloomington and its port authority may extend the duration
limits of undeveloped parcels within District No. 1-I for a period through December 31,
2049. For the purposes of this paragraph, "undeveloped parcels" means any parcel that does
not have a building on it as of the effective date of this section.
new text end
deleted text begin (c)deleted text end new text begin (d) new text end Effective for taxes payable in 2014, tax increment for the district must be computed
using the current local tax rate, notwithstanding the provisions of Minnesota Statutes, section
469.177, subdivision 1a.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon compliance by the city of
Bloomington, Hennepin County, and Independent School District No. 271 with the
requirements of Minnesota Statutes, section 469.1782, subdivision 2.
new text end
Sec. 15.
Laws 2014, chapter 308, article 6, section 12, subdivision 2, is amended to read:
Subd. 2.
Special rules.
(a) If the city elects, upon the adoption of the tax increment
financing plan for a district, the rules under this section apply to a redevelopment district,
renewal and renovation district, soil condition district, or soil deficiency district established
by the city or a development authority of the city in the project area.
(b) Prior to or upon the adoption of the first tax increment plan subject to the special
rules under this subdivision, the city must find by resolution that parcels consisting of at
least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way,
are characterized by one or more of the following conditions:
(1) peat or other soils with geotechnical deficiencies that impair development of
commercial buildings or infrastructure;
(2) soils or terrain that require substantial filling in order to permit the development of
commercial buildings or infrastructure;
(3) landfills, dumps, or similar deposits of municipal or private waste;
(4) quarries or similar resource extraction sites;
(5) floodway; and
(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174,
subdivision 10.
(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the
relevant condition if at least 70 percent of the area of the parcel contains the relevant
condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by
substandard buildings if substandard buildings occupy at least 30 percent of the area of the
parcel.
(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to deleted text begin eightdeleted text end new text begin 12new text end years for any districtdeleted text begin ,deleted text end new text begin ; the five-year rule under Minnesota Statutes,
section 469.175, subdivision 4, paragraph (f), is extended to nine years for any district;new text end and
Minnesota Statutes, section 469.1763, subdivision 4, does not apply to any district.
(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763,
subdivision 2, paragraph (a), not more than 40 percent of the total revenue derived from tax
increments paid by properties in any district, measured over the life of the district, may be
expended on activities outside the district but within the project area.
(f) For a soil deficiency district:
(1) increments may be collected through 20 years after the receipt by the authority of
the first increment from the district;
(2) increments may be used only to:
(i) acquire parcels on which the improvements described in item (ii) will occur;
(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional
cost of installing public improvements directly caused by the deficiencies; and
(iii) pay for the administrative expenses of the authority allocable to the district; and
(3) any parcel acquired with increments from the district must be sold at no less than
their fair market value.
(g) Increments spent for any infrastructure costs, whether inside a district or outside a
district but within the project area, are deemed to satisfy the requirements of Minnesota
Statutes, section 469.176, subdivision 4j.
(h) The authority to approve tax increment financing plans to establish tax increment
financing districts under this section expires June 30, 2020.
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 Savage and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 16. new text begin CITY OF CHATFIELD; TAX INCREMENT FINANCING AUTHORITY;
ECONOMIC DEVELOPMENT AUTHORIZATION.
new text end
new text begin
Notwithstanding Minnesota Statutes, section 469.176, subdivision 4c, paragraph (b), or
any other law to the contrary, the city of Chatfield, or its economic development authority,
may establish an economic development district to construct a multilevel hotel on Mill
Creek Road and Division Street NW, south of Trunk Highway 30, in the city of Chatfield,
Olmsted County, provided that the first floor of the hotel not exceed 15,000 square feet.
For purposes of this section, "first floor" means the floor at street level where the public is
permitted to enter and exit.
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 Chatfield and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 17. new text begin CITY OF DULUTH; TAX INCREMENT FINANCING AUTHORITY.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment. new text end
new text begin
Under the special rules established in subdivision 2, the
city of Duluth or its economic development authority may establish one or more
redevelopment districts located wholly within the city of Duluth, St. Louis County,
Minnesota, limited to the area bordered on the northeast by Slip 3 and the Pier B Resort
property line extended northwest to Interstate Highway 35, on the southeast by the Duluth
Harbor, on the southwest by the Compass Minerals property line extended northwest to
Interstate Highway 35, and on the northwest by Interstate Highway 35, together with adjacent
roads and rights-of-way.
new text end
new text begin Subd. 2. new text end
new text begin Special rules. new text end
new text begin
For any tax increment financing district established under this
section, the following special rules apply:
new text end
new text begin
(1) the district is deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10;
new text end
new text begin
(2) expenditures incurred in connection with the development of the property described
in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
subdivision 4j; and
new text end
new text begin
(3) eligible expenditures include without limitation seawalls and pier facings adjacent
to the boundaries of such district.
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 Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 18. new text begin CITY OF DULUTH; TAX INCREMENT FINANCING DURATION
EXTENSION.
new text end
new text begin
Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other law
to the contrary, the city of Duluth or its economic development authority may extend the
duration limit of a district established under section 1 by ten years.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective upon compliance by the city of Duluth,
St. Louis County, and Independent School District No. 709 with the requirements of
Minnesota Statutes, section 469.1782, subdivision 2.
new text end
Sec. 19. new text begin CITY OF DULUTH; TAX INCREMENT FINANCING DISTRICT;
SPECIAL RULES.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment. new text end
new text begin
Under the special rules established in subdivision 2, the
economic development authority of the city of Duluth or the city of Duluth may establish
one or more redevelopment districts located wholly within the area of the city of Duluth,
St. Louis County, Minnesota, limited to the area classified as the Medical Regional Exchange
District and East 1st Street Corridor as bounded by: East 6th Street from North 3rd Avenue
East to North 7th Avenue East; North 7th Avenue East from East 6th Street to East 3rd
Street; East 3rd Street from North 7th Avenue East to North 12th Avenue East; North 12th
Avenue East from East 3rd Street straight through the Duluth Rose Garden to the Lake
Superior Waterfront; the Lake Superior waterfront from the Duluth Rose Garden at North
12th Avenue East to Lake Place Park at North 3rd Avenue East; North 3rd Avenue East
from Lake Place Park at the Lake Superior waterfront to East Superior Street; East Superior
Street from North 3rd Avenue East to North Lake Avenue; North Lake Avenue from East
Superior Street to East 2nd Street; East 2nd Street from North Lake Avenue to North 3rd
Avenue East; North 3rd Avenue East from East 2nd Street to East 6th Street.
new text end
new text begin Subd. 2. new text end
new text begin Special rules. new text end
new text begin
If the city or authority establishes a redevelopment tax increment
financing district under this section, the requirements, definitions, limitations, or restrictions
in the following statutes do not apply: Minnesota Statutes, sections 469.174, subdivision
10; and 469.176, subdivisions 4j, 4l, and 5; 469.1763, subdivisions 2, 3, and 4.
new text end
new text begin Subd. 3. new text end
new text begin Expiration. new text end
new text begin
The provisions of subdivision 2 expire for increment expended
after December 31, 2051. After that date, the provisions of Minnesota Statutes, section
469.1763, subdivision 4, apply to any remaining unspent or unobligated increment.
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 Duluth and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 20. new text begin CITY OF FRIDLEY; TAX INCREMENT FINANCING DISTRICT;
SPECIAL RULES.
new text end
new text begin Subdivision 1. new text end
new text begin Transfer of increment. new text end
new text begin
Notwithstanding Minnesota Statutes, section
469.176, subdivision 4j, the city of Fridley, or its economic development authority, may
transfer tax increment accumulated from Fridley Tax Increment Financing District No. 20
to the Fridley Housing and Redevelopment Authority for the purposes authorized in
subdivision 2. Only increment allowed to be expended outside of the district pursuant to
Minnesota Statutes, section 469.1763, subdivision 2, may be transferred under this section.
new text end
new text begin Subd. 2. new text end
new text begin Allowable use. new text end
new text begin
Tax increment transferred under subdivision 1 must be used
only to:
new text end
new text begin
(1) make grants, loans, and loan guarantees for the development, rehabilitation, or
financing of housing; or
new text end
new text begin
(2) match other funds from federal, state, or private resources for housing projects.
new text end
new text begin Subd. 3. new text end
new text begin Annual financial reporting. new text end
new text begin
Tax increment transferred under this section is
subject to the annual reporting requirements under Minnesota Statutes, section 469.175,
subdivision 6.
new text end
new text begin Subd. 4. new text end
new text begin Legislative reports. new text end
new text begin
By February 1, 2024, and February 1, 2026, the city of
Fridley must issue a report to the chairs and ranking minority members of the legislative
committees with jurisdiction over taxes and property taxes. Each report must include detailed
information relating to each program financed with increment transferred under this section.
new text end
new text begin Subd. 5. new text end
new text begin Expiration. new text end
new text begin
The authority to make transfers under subdivision 1 expires
December 31, 2026.
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 Fridley and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 21. new text begin CITY OF LAFAYETTE; SMALL CITY DESIGNATION.
new text end
new text begin
For the purposes of Minnesota Statutes, section 469.176, subdivision 4c, the city of
Lafayette is a small city.
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 Lafayette and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 22. new text begin CITY OF NICOLLET; SMALL CITY DESIGNATION.
new text end
new text begin
For the purposes of Minnesota Statutes, section 469.176, subdivision 4c, the city of
Nicollet is a small city.
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 Nicollet and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 23. new text begin CITY OF PLYMOUTH; TAX INCREMENT FINANCING AUTHORITY.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment. new text end
new text begin
Under the special rules established in subdivision 2, the
city of Plymouth may establish one or more redevelopment districts located wholly within
the city of Plymouth, Hennepin County, Minnesota, limited to the following parcels identified
by tax identification numbers: 34-119-22-44-0002, 03-118-22-12-0002, 03-118-22-11-0007,
02-118-22-22-0005, and 03-118-22-14-0032, together with adjacent roads and rights of
way.
new text end
new text begin Subd. 2. new text end
new text begin Special rules. new text end
new text begin
If the city establishes a tax increment financing district under
this section, the following special rules apply:
new text end
new text begin
(1) the district is deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10;
new text end
new text begin
(2) the five-year rule period under Minnesota Statutes, section 469.1763, subdivision 3,
is extended to ten years and the six-year rule under Minnesota Statutes, section 469.1763,
subdivision 4, applies to the district in each year beginning with the 11th year following
certification of the district;
new text end
new text begin
(3) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district;
and
new text end
new text begin
(4) not more than 75 percent of increments generated from the district may be expended
on improvements to Chankahda Trail, formerly known as Hennepin County Road 47, outside
the project area, and all such expenditures are deemed expended on activities within the
district for the purposes of Minnesota Statutes, section 469.1763.
new text end
new text begin Subd. 3. new text end
new text begin Expiration. new text end
new text begin
The authority to approve a tax increment financing plan to establish
a tax increment financing district under this section expires December 31, 2030.
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 Plymouth and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 24. new text begin CITY OF SHAKOPEE; TAX INCREMENT FINANCING DISTRICT.
new text end
new text begin Subdivision 1. 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.
new text end
new text begin
(b) "City" means the city of Shakopee.
new text end
new text begin
(c) "Project area" means the following parcels, identified by parcel identification number:
279160102, 279160110, 279170020, and 279160120.
new text end
new text begin
(d) "Soil deficiency district" means a type of tax increment financing district consisting
of a portion of the project area in which the city finds by resolution that the following
conditions exist:
new text end
new text begin
(1) unusual terrain or soil deficiencies that occurred over 70 percent of the acreage in
the district require substantial filling, grading, or other physical preparation for use; and
new text end
new text begin
(2) the estimated cost of the physical preparation under clause (1), excluding costs
directly related to roads as defined in Minnesota Statutes, section 160.01, and local
improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, other
than clauses (8) to (10), and 430.01, exceeds the fair market value of the land before
completion of the preparation.
new text end
new text begin Subd. 2. new text end
new text begin Special rules. new text end
new text begin
(a) If the city elects, upon the adoption of the tax increment
financing plan for a district, the rules under this section apply to a redevelopment district,
renewal and renovation district, soil condition district, or soil deficiency district established
by the city or a development authority of the city in the project area. The city, or a
development authority acting on its behalf, may establish one or more soil deficiency districts
within the project area.
new text end
new text begin
(b) Prior to or upon the adoption of the first tax increment plan subject to the special
rules under this subdivision, the city must find by resolution that parcels consisting of at
least 70 percent of the acreage of the project area, excluding street and railroad rights-of-way,
are characterized by one or more of the following conditions:
new text end
new text begin
(1) peat or other soils with geotechnical deficiencies that impair development of
residential or commercial buildings or infrastructure;
new text end
new text begin
(2) soils or terrain that requires substantial filling in order to permit the development of
residential or commercial buildings or infrastructure;
new text end
new text begin
(3) landfills, dumps, or similar deposits of municipal or private waste;
new text end
new text begin
(4) quarries or similar resource extraction sites;
new text end
new text begin
(5) floodways; and
new text end
new text begin
(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174,
subdivision 10.
new text end
new text begin
(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the
relevant condition if at least 60 percent of the area of the parcel contains the relevant
condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by
substandard buildings if substandard buildings occupy at least 30 percent of the area of the
parcel.
new text end
new text begin
(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years for any district, and the period under Minnesota Statutes, section
469.1763, subdivision 4, is extended to 11 years.
new text end
new text begin
(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763,
subdivision 2, paragraph (a), not more than 80 percent of the total revenue derived from tax
increments paid by properties in any district, measured over the life of the district, may be
expended on activities outside the district but within the project area.
new text end
new text begin
(f) For a soil deficiency district:
new text end
new text begin
(1) increments may be collected through 20 years after the receipt by the authority of
the first increment from the district; and
new text end
new text begin
(2) except as otherwise provided in this subdivision, increments may be used only to:
new text end
new text begin
(i) acquire parcels on which the improvements described in item (ii) will occur;
new text end
new text begin
(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional
cost of installing public improvements directly caused by the deficiencies; and
new text end
new text begin
(iii) pay for the administrative expenses of the authority allocable to the district.
new text end
new text begin
(g) The authority to approve tax increment financing plans to establish tax increment
financing districts under this section expires December 31, 2026.
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 Shakopee and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 25. new text begin CITY OF SPICER; SMALL CITY DESIGNATION.
new text end
new text begin
For the purposes of Minnesota Statutes, section 469.176, subdivision 4c, the city of
Spicer is a small city.
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 Spicer and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 26. new text begin CITY OF WEST SAINT PAUL; TAX INCREMENT FINANCING
AUTHORITY.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment. new text end
new text begin
Under the special rules established in subdivision 2, the
economic development authority of the city of West Saint Paul or the city of West Saint
Paul may establish one or more redevelopment tax increment financing districts consisting
of the parcels in the city of West Saint Paul, Dakota County, Minnesota, currently identified
with the following parcel identification numbers: 42-83680-01-011, 42-11561-00-010,
42-11561-01-010, 42-11560-01-021, 42-11561-00-020, 42-11560-01-022, as the same may
be replatted or reconfigured, together with adjacent roads and rights-of-way.
new text end
new text begin Subd. 2. new text end
new text begin Special rules. new text end
new text begin
If the city or authority establishes one or more tax increment
financing districts under this section, the following special rules apply:
new text end
new text begin
(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10; and
new text end
new text begin
(2) expenditures incurred in connection with the development of the property described
in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
subdivision 4j.
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 West Saint Paul and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end
Sec. 27. new text begin CITY OF WOODBURY; TAX INCREMENT FINANCING DISTRICT
NO. 13; EXPENDITURES ALLOWED; DURATION EXTENSION.
new text end
new text begin
(a) Notwithstanding Minnesota Statutes, section 469.1763, subdivision 2, or any other
law to the contrary, the city of Woodbury may expend increments generated from Tax
Increment Financing District No. 13 for the maintenance, and facility and infrastructure
upgrades to Central Park. All such expenditures are deemed expended on activities within
the district.
new text end
new text begin
(b) Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, the city of
Woodbury may elect to extend the duration of Tax Increment Financing District No. 13 by
five years.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
Paragraph (a) is effective the day after the governing body of the
city of Woodbury and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3. Paragraph (b) is effective upon compliance
by the city of Woodbury, Washington County, and Independent School District No. 833
with the requirements of Minnesota Statutes, section 469.1782, subdivision 2.
new text end
ARTICLE 6
LOCAL TAXES
Section 1.
Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991,
chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws 2003,
First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154, article 5,
section 2, Laws 2014, chapter 308, article 3, section 21, and Laws 2017, First Special Session
chapter 1, article 5, section 1, is amended to read:
Subd. 2.
(a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law,
ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance,
impose an additional sales tax of up to one and three-quarter percent on sales transactions
which are described in Minnesota Statutes 2000, section 297A.01, subdivision 3, clause (c).
The imposition of this tax shall not be subject to voter referendum under either state law or
city charter provisions. When the city council determines that the taxes imposed under this
paragraph at a rate of three-quarters of one percent and other sources of revenue produce
revenue sufficient to pay debt service on bonds in the principal amount of $40,285,000 plus
issuance and discount costs, issued for capital improvements at the Duluth Entertainment
and Convention Center, which include a new arena, the rate of tax under this subdivision
must be reduced by three-quarters of one percent.
(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section
477A.016, or any other law, ordinance, or city charter provision to the contrary, the city of
Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent
on sales transactions which are described in Minnesota Statutes 2000, section 297A.01,
subdivision 3, clause (c). This tax expires when the city council determines that the tax
imposed under this paragraph, along with the tax imposed under section 22, paragraph (b),
has produced revenues sufficient to pay the debt service on bonds in a principal amount of
no more than deleted text begin $18,000,000deleted text end new text begin $54,000,000new text end , plus issuance and discount costs, to finance capital
improvements to public facilities to support tourism and recreational activities in that portion
of the city west of 14th Avenue West and the area south of and including Skyline Parkwaynew text begin ,
and capital improvements to parks-based public athletic facilities to support sports tourismnew text end .
(c) The city of Duluth may sell and issue up to deleted text begin $18,000,000deleted text end new text begin $54,000,000new text end in general
obligation bonds under Minnesota Statutes, chapter 475, plus an additional amount to pay
for the costs of issuance and any premiums. The proceeds may be used to finance capital
improvements to public facilities that support tourism and recreational activities in the
portion of the city west of 14th Avenue West and the area south of and including Skyline
Parkway new text begin and capital improvements to parks-based public athletic facilities to support sports
tourismnew text end , as described in paragraph (b). The issuance of the bonds is subject to the provisions
of Minnesota Statutes, chapter 475, except no election shall be required unless required by
the city charter. The bonds shall not be included in computing net debt. The revenues from
the taxes that the city of Duluth may impose under paragraph (b) and under section 22,
paragraph (b), may be pledged to pay principal of and interest on such bonds.
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 Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 2.
Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, article
8, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12, Laws 2014,
chapter 308, article 3, section 22, and Laws 2017, First Special Session chapter 1, article
5, section 2, is amended to read:
Sec. 2. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND MOTELS.
(a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, or ordinance,
or city charter provision to the contrary, the city of Duluth may, by ordinance, impose an
additional tax of one percent upon the gross receipts from the sale of lodging for periods of
less than 30 days in hotels and motels located in the city. The tax shall be collected in the
same manner as the tax set forth in the Duluth city charter, section 54(d), paragraph one.
The imposition of this tax shall not be subject to voter referendum under either state law or
city charter provisions.
(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section
477A.016, or any other law, ordinance, or city charter provision to the contrary, the city of
Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent
on the gross receipts from the sale of lodging for periods of less than 30 days in hotels and
motels located in the city. This tax expires when the city council first determines that the
tax imposed under this paragraph, along with the tax imposed under section 21, paragraph
(b), has produced revenues sufficient to pay the debt service on bonds in a principal amount
of no more than deleted text begin $18,000,000deleted text end new text begin $54,000,000new text end , plus issuance and discount costs, to finance
capital improvements to public facilities to support tourism and recreational activities in
that portion of the city west of 14th Avenue West and the area south of and including Skyline
Parkwaynew text begin , and capital improvements to parks-based public athletic facilities to support sports
tourismnew 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 Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 3.
Laws 2008, chapter 366, article 7, section 17, is amended to read:
Sec. 17. COOK COUNTYdeleted text begin ;deleted text end LODGING deleted text begin AND ADMISSIONS TAXESdeleted text end new text begin TAXnew text end .
Subdivision 1.
Lodging tax.
Notwithstanding Minnesota Statutes, section 477A.016,
or any other provision of law, ordinance, or city charter, the Board of Commissioners of
Cook County may impose, by ordinance, a tax of up to one percent on the gross receipts
subject to the lodging tax under Minnesota Statutes, section 469.190. This tax is in addition
to any tax imposed under Minnesota Statutes, section 469.190, and the total tax imposed
under that section and this provision must not exceed four percent.
deleted text begin Subd. 2. deleted text end
deleted text begin Admissions and recreation tax. deleted text end
deleted text begin
Notwithstanding Minnesota Statutes, section
477A.016, or any other provision of law, ordinance, or city charter, the Board of
Commissioners of Cook County may impose, by ordinance, a tax of up to three percent on
admissions to entertainment and recreational facilities and rental of recreation equipment.
deleted text end
Subd. 3.
Use of taxes.
The deleted text begin taxesdeleted text end new text begin taxnew text end imposed in deleted text begin subdivisionsdeleted text end new text begin subdivisionnew text end 1 deleted text begin and 2deleted text end must
be used to fund a new Cook County Event and Visitors Bureau as established by the Board
of Commissioners of Cook County. The Board of Commissioners of Cook County must
annually review the budget of the Cook County Event and Visitors Bureau. The event and
visitors bureau may not receive revenues raised from the deleted text begin taxesdeleted text end new text begin taxnew text end imposed in deleted text begin subdivisionsdeleted text end new text begin
subdivisionnew text end 1 deleted text begin and 2deleted text end until the board of commissioners approves the annual budget.
Subd. 4.
Termination.
The deleted text begin taxesdeleted text end new text begin taxnew text end imposed in deleted text begin subdivisionsdeleted text end new text begin subdivisionnew text end 1 deleted text begin and 2deleted text end
deleted text begin terminate 15deleted text end new text begin terminates 30new text end years after deleted text begin they aredeleted text end new text begin it isnew text end first imposed.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 7
MISCELLANEOUS
Section 1.
Minnesota Statutes 2022, section 278.01, subdivision 1, is amended to read:
Subdivision 1.
Determination of validity.
(a) Any person having personal property, or
any estate, right, title, or interest in or lien upon any parcel of land, who claims that such
property has been partially, unfairly, or unequally assessed in comparison with other property
in the (1) city, or (2) county, or (3) in the case of a county containing a city of the first class,
the portion of the county excluding the first class city, or that the parcel has been assessed
at a valuation greater than its real or actual value, or that the tax levied against the same is
illegal, in whole or in part, or has been paid, or that the property is exempt from the tax so
levied, may have the validity of the claim, defense, or objection determined by the district
court of the county in which the tax is levied or by the Tax Court bynew text begin personallynew text end serving one
copy of a petition for such determination upon the county auditordeleted text begin , one copy on the county
attorney, one copy on the county treasurer, and three copies on the county assessor. The
county assessor shall immediately forward one copy of the petition to the appropriate
governmental authority in a home rule charter or statutory city or town in which the property
is located if that city or town employs its own certified assessor. A copy of the petition shall
also be forwarded by the assessor to the school board of the school district in which the
property is locateddeleted text end .new text begin The county auditor may waive personal service of a petition by: (i)
agreeing to accept service through an alternative service method; (ii) designating an
alternative service method on its website; or (iii) acknowledging receipt of a petition served
through an alternative service method. An alternative service method includes but is not
limited to service by email or by an electronic upload to a website designated by the county.
Service may be made by any person, including a party to the action.
new text end
(b) deleted text begin In counties where the office of county treasurer has been combined with the office
of county auditor, the county may elect to require the petitioner to serve the number of
copies as determined by the county.deleted text end new text begin Within 30 days after a petition is served and filed, the
county auditor must provide a copy of the petition, if a copy has not already been provided,
to the county assessor, county treasurer, and the county attorney.new text end The county assessor shall
immediately forward one copy of the petition to the appropriate governmental authority in
a home rule charter or statutory city or town in which the property is located if that city or
town employs its own certified assessor.new text begin On or before the first day of July, the county auditor
must sendnew text end a list of petitioned propertiesdeleted text begin , includingdeleted text end new text begin to the school board of the school district
in which the property is located. The list must includenew text end the name of the petitioner, the
identification number of the property, and the estimated market valuedeleted text begin , shall be sent on or
before the first day of July by the county auditor/treasurer to the school board of the school
district in which the property is locateddeleted text end new text begin of the propertynew text end .
(c) For all counties, the petitioner must file deleted text begin the copies withdeleted text end new text begin a copy of the petition andnew text end
proof of servicedeleted text begin ,deleted text end new text begin of the petitionnew text end in the office of the court administrator of the district court
on or before April 30 of the year in which the tax becomes payable. A petition for
determination under this section may be transferred by the district court to the Tax Court.
An appeal may also be taken to the Tax Court under chapter 271 at any time following
receipt of the valuation notice that county assessors or city assessors having the powers of
a county assessor are required by section 273.121 to send to persons whose property is to
be included on the assessment roll that year, but prior to May 1 of the year in which the
taxes are payable.
Sec. 2.
Minnesota Statutes 2022, section 279.03, subdivision 1a, is amended to read:
Subd. 1a.
Rate.
(a) Except as provided in deleted text begin paragraphdeleted text end new text begin paragraphsnew text end (b)new text begin and (c)new text end , interest on
delinquent property taxes, penalties, and costs unpaid on or after January 1 is payable at the
per annum rate determined in section 270C.40, subdivision 5. deleted text begin If the rate so determined is
less than ten percent, the rate of interest is ten percent.deleted text end The maximum per annum rate is 14
percent if the rate specified under section 270C.40, subdivision 5, exceeds 14 percent. The
rate is subject to change on January 1 of each year.
(b) If a person is the owner of one or more parcels of property on which taxes are
delinquent, and the delinquent taxes are more than 25 percent of the prior year's school
district levy, interest on the delinquent property taxes, penalties, and costs unpaid is payable
at twice the rate determined under paragraph (a) for the year.
new text begin
(c) A county board, by resolution, may establish an interest rate lower than the interest
rate determined under paragraph (a).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for property taxes, penalties, and costs
determined to be delinquent on or after January 1, 2024.
new text end
Sec. 3.
Minnesota Statutes 2022, section 282.261, subdivision 2, is amended to read:
Subd. 2.
Interest rate.
new text begin (a) Except as provided under paragraph (b), new text end the unpaid balance
on any repurchase contract approved by the county board is subject to interest at the rate
determined in section 279.03, subdivision 1a. The interest rate is subject to change each
year on the unpaid balance in the manner provided for rate changes in section 279.03,
subdivision 1a.
new text begin
(b) A county board, by resolution, or a county auditor, if delegated the responsibility to
administer tax-forfeited land assigned to the county board as provided under section 282.135,
may establish an interest rate lower than the interest rate determined under paragraph (a).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2024.
new text end
Sec. 4.
new text begin
[428B.01] DEFINITIONS.
new text end
new text begin Subdivision 1. new text end
new text begin Applicability. new text end
new text begin
As used in sections 428B.01 to 428B.09, the terms in this
section have the meanings given them.
new text end
new text begin Subd. 2. new text end
new text begin Activity. new text end
new text begin
"Activity" means but is not limited to all of the following:
new text end
new text begin
(1) promotion of tourism within the district;
new text end
new text begin
(2) promotion of business activity, including but not limited to tourism, of businesses
subject to the service charge within the tourism improvement district;
new text end
new text begin
(3) marketing, sales, and economic development; and
new text end
new text begin
(4) other services provided for the purpose of conferring benefits upon businesses located
in the tourism improvement district that are subject to the tourism improvement district
service charge.
new text end
new text begin Subd. 3. new text end
new text begin Business. new text end
new text begin
"Business" means a lodging business as defined by municipal
ordinance.
new text end
new text begin Subd. 4. new text end
new text begin Business owner. new text end
new text begin
"Business owner" means a person recognized by a municipality
as the owner of a business.
new text end
new text begin Subd. 5. new text end
new text begin City. new text end
new text begin
"City" means a home rule charter or statutory city.
new text end
new text begin Subd. 6. new text end
new text begin Clerk. new text end
new text begin
"Clerk" means the chief clerical officer of the municipality.
new text end
new text begin Subd. 7. new text end
new text begin Governing body. new text end
new text begin
"Governing body" means, with respect to a city, a city council
or other governing body of a city. With respect to a town, governing body means a town
board or other governing body of a town. With respect to a county, governing body means
a board of commissioners or other governing body of a county.
new text end
new text begin Subd. 8. new text end
new text begin Impacted business owners. new text end
new text begin
"Impacted business owners" means a majority of
business owners located within a proposed or established tourism improvement district.
new text end
new text begin Subd. 9. new text end
new text begin Municipality. new text end
new text begin
"Municipality" means a county, city, or town.
new text end
new text begin Subd. 10. new text end
new text begin Tourism improvement association. new text end
new text begin
"Tourism improvement association"
means a new or existing and tax-exempt nonprofit corporation, entity, or agency charged
with promoting tourism within the tourism improvement district and that is under contract
with the municipality to administer the tourism improvement district and implement the
activities and improvements listed in the municipality's ordinance.
new text end
new text begin Subd. 11. new text end
new text begin Tourism improvement district. new text end
new text begin
"Tourism improvement district" means a
tourism improvement district established under this chapter.
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.
new text begin
[428B.02] ESTABLISHMENT OF TOURISM IMPROVEMENT DISTRICT.
new text end
new text begin Subdivision 1. new text end
new text begin Ordinance. new text end
new text begin
(a) Upon a petition by impacted business owners, a governing
body of a municipality may adopt an ordinance establishing a tourism improvement district
after holding a public hearing on the district. The ordinance must include:
new text end
new text begin
(1) a map that identifies the tourism improvement district boundaries in sufficient detail
to allow a business owner to determine whether a business is located within the tourism
improvement district boundaries;
new text end
new text begin
(2) the name of the tourism improvement association designated to administer the tourism
improvement district and implement the approved activities and improvements;
new text end
new text begin
(3) a list of the proposed activities and improvements in the tourism improvement district;
new text end
new text begin
(4) the time and manner of collecting the service charge and any interest and penalties
for nonpayment;
new text end
new text begin
(5) the rate, method, and basis of the service charge with intent, and penalties on
delinquent payments for the district, including the portion dedicated to covering expenses
listed in subdivision 4, paragraph (b); and
new text end
new text begin
(6) the number of years the service charge will be in effect.
new text end
new text begin
(b) If the boundaries of a proposed tourism improvement district overlap with the
boundaries of an existing special service district, the tourism improvement district ordinance
may list measures to avoid any impediments on the ability of the special service district to
continue to provide its services to benefit its property owners.
new text end
new text begin Subd. 2. new text end
new text begin Notice. new text end
new text begin
A municipality must provide notice of the hearing by publication in at
least two issues of the official newspaper of the municipality. The two publications must
be two weeks apart and the municipality must hold the hearing at least three days after the
last publication. Not less than ten days before the hearing, the municipality must mail, or
deliver by electronic means, notice to the business owner of each business subject to the
proposed service charge by the tourism improvement district. The notice must include:
new text end
new text begin
(1) a map showing the boundaries of the proposed district;
new text end
new text begin
(2) the time and place of the hearing;
new text end
new text begin
(3) a statement that all interested persons will be given an opportunity to be heard at the
hearing regarding the proposed service charge; and
new text end
new text begin
(4) a brief description of the proposed activities, improvements, and service charge.
new text end
new text begin Subd. 3. new text end
new text begin Business owner determination. new text end
new text begin
A business must provide ownership information
to the municipality. A municipality has no obligation to obtain other information regarding
the ownership of businesses, and its determination of ownership shall be final for the purposes
of this chapter. If this chapter requires the signature of a business owner, the signature of
the authorized representative of a business owner is sufficient.
new text end
new text begin Subd. 4. new text end
new text begin Service charges; relationship to services. new text end
new text begin
(a) A municipality may impose a
service charge on a business pursuant to this chapter for the purpose of providing activities
and improvements that will provide benefits to a business that is located within the tourism
improvement district and subject to the tourism improvement district service charge. Each
business paying a service charge within a district must benefit directly or indirectly from
improvements provided by a tourism improvement association, provided, however, the
business need not benefit equally. Service charges must be based on a percent of gross
business revenue, a fixed dollar amount per transaction, or any other reasonable method
based upon benefit and approved by the municipality.
new text end
new text begin
(b) Service charges may be used to cover the costs of collections, as well as other
administrative costs associated with operating, forming, or maintaining the district.
new text end
new text begin Subd. 5. new text end
new text begin Public hearing. new text end
new text begin
At the hearing regarding the adoption of the ordinance
establishing a tourism improvement district, business owners and persons affected by the
proposed district may testify on issues relevant to the proposed district. The hearing may
be adjourned from time to time. The ordinance establishing the district may be adopted at
any time within six months after the date of the conclusion of the hearing by a vote of the
majority of the governing body of the municipality.
new text end
new text begin Subd. 6. new text end
new text begin Appeal to district court. new text end
new text begin
Within 45 days after the adoption of the ordinance
establishing a tourism improvement district, a person aggrieved, who is not precluded by
failure to object before or at the hearing, may appeal to the district court by serving a notice
on the clerk of the municipality or governing body. The validity of the tourism improvement
district and the service charge imposed under this chapter shall not be contested in an action
or proceeding unless the action or proceeding is commenced within 45 days after the adoption
of the ordinance establishing a tourism improvement district. The petitioner must file notice
with the court administrator of the district court within ten days after its service. The clerk
of the municipality must provide the petitioner with a certified copy of the findings and
determination of the governing body. The court may affirm the action objected to or, if the
petitioner's objections have merit, modify or cancel it. If the petitioner does not prevail on
the appeal, the costs incurred shall be charged to the petitioner by the court and judgment
entered for them. All objections shall be deemed waived unless presented on appeal.
new text end
new text begin Subd. 7. new text end
new text begin Notice to the commissioner of revenue. new text end
new text begin
Within 30 days of adoption of the
ordinance, the governing body must send a copy of the ordinance to the commissioner of
revenue.
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.
new text begin
[428B.03] SERVICE CHARGE AUTHORITY; NOTICE; HEARING
REQUIREMENT.
new text end
new text begin Subdivision 1. new text end
new text begin Authority. new text end
new text begin
A municipality may impose service charges authorized under
section 428B.02, subdivision 4, to finance an activity or improvement in the tourism
improvement district that is provided by the municipality if the activity or improvement is
provided in the tourism improvement district at an increased level of service. The service
charges may be imposed in the amount needed to pay for the increased level of service
provided by the activity or improvement.
new text end
new text begin Subd. 2. new text end
new text begin Annual hearing requirement; notice. new text end
new text begin
Beginning one year after the
establishment of the tourism improvement district, the municipality must hold an annual
public hearing regarding continuation of the service charges in the tourism improvement
district. The municipality must provide notice of the hearing by publication in the official
newspaper at least seven days before the hearing. The municipality must mail, or deliver
by electronic means, notice of the hearing to business owners subject to the service charge
at least seven days before the hearing. At the hearing, a person affected by the proposed
district may testify on issues relevant to the proposed district. Within six months of the
hearing, the municipality may adopt a resolution to continue imposing service charges within
the district not exceeding the amount or rate expressed in the notice. For purposes of this
section, the notice must include:
new text end
new text begin
(1) a map showing the boundaries of the district;
new text end
new text begin
(2) the time and place of the hearing;
new text end
new text begin
(3) a statement that all interested persons will be given an opportunity to be heard at the
hearing regarding the proposed service charge;
new text end
new text begin
(4) a brief description of the proposed activities and improvements;
new text end
new text begin
(5) the estimated annual amount of proposed expenditures for activities and
improvements;
new text end
new text begin
(6) the rate of the service charge for the district during the year and the nature and
character of the proposed activities and improvements for the district during the year in
which service charges are collected;
new text end
new text begin
(7) the number of years the service charge will be in effect; and
new text end
new text begin
(8) a statement that the petition requirement of section 428B.07 has either been met or
does not apply to the proposed service charge.
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. 7.
new text begin
[428B.04] MODIFICATION OF ORDINANCE.
new text end
new text begin Subdivision 1. new text end
new text begin Adoption of ordinance; request for modification. new text end
new text begin
Upon written request
of the tourism improvement association, the governing body of a municipality may adopt
an ordinance to modify the district after conducting a public hearing on the proposed
modifications. If the modification includes a change to the rate, method, and basis of
imposing the service charge or the expansion of the tourism improvement district's geographic
boundaries, a petition as described in section 428B.07 must be submitted by impacted
business owners to initiate proceedings for modification.
new text end
new text begin Subd. 2. new text end
new text begin Notice of modification. new text end
new text begin
A municipality must provide notice of the hearing by
publication in at least two issues of the municipality's official newspaper. The two
publications must be two weeks apart and the municipality must hold a hearing at least three
days after the last publication. Not less than ten days before the hearing, the municipality
must mail, or deliver by electronic means, notice to the business owner of each business
subject to the service charge by the tourism improvement district. The notice must include:
new text end
new text begin
(1) a map showing the boundaries of the district and any proposed changes to the
boundaries of the district;
new text end
new text begin
(2) the time and place of the hearing;
new text end
new text begin
(3) a statement that all interested persons will be given an opportunity to be heard at the
hearing regarding the proposed service charge; and
new text end
new text begin
(4) a brief description of the proposed modification to the ordinance.
new text end
new text begin Subd. 3. new text end
new text begin Hearing on modification. new text end
new text begin
At the hearing regarding modification to the
ordinance, business owners and persons affected by the proposed modification may testify
on issues relevant to the proposed modification. Within six months after the conclusion of
the hearing, the municipality may adopt the ordinance modifying the district by a vote of
the majority of the governing body in accordance with the request for modification by the
tourism improvement association and as described in the notice.
new text end
new text begin Subd. 4. new text end
new text begin Objection. new text end
new text begin
If the modification of the ordinance includes the expansion of the
tourism improvement district's geographic boundaries, the ordinance modifying the district
may be adopted after following the notice and veto requirements in section 428B.08;
however, a successful objection will be determined based on a majority of business owners
who will pay the service charge in the expanded area of the district. For all other
modifications, the ordinance modifying the district may be adopted following the notice
and veto requirements in section 428B.08.
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. 8.
new text begin
[428B.05] COLLECTION OF SERVICE CHARGES; PENALTIES.
new text end
new text begin
The service charges imposed under this chapter may be collected by the municipality,
tourism improvement association, or other designated agency or entity. Collection of the
service charges must be made at the time and in the manner set forth in the ordinance. The
entity collecting the service charges may charge interest and penalties on delinquent payments
for service charges imposed under this chapter as set forth in the municipality's ordinance.
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. 9.
new text begin
[428B.06] TOURISM IMPROVEMENT ASSOCIATION.
new text end
new text begin Subdivision 1. new text end
new text begin Composition and duties. new text end
new text begin
The tourism improvement association must
be designated in the municipality's ordinance. The tourism improvement association shall
appoint a governing board or committee composed of a majority of business owners who
pay the tourism improvement district service charge, or the representatives of those business
owners. The governing board or committee must manage the funds raised by the tourism
improvement district and fulfill the obligations of the tourism improvement district. A
tourism improvement association has full discretion to select the specific activities and
improvements that are funded with tourism improvement district service charges within the
authorized activities and improvements described in the ordinance.
new text end
new text begin Subd. 2. new text end
new text begin Annual report. new text end
new text begin
The tourism improvement association must submit to the
municipality an annual report for each year in which a service charge is imposed. The report
must include a financial statement of revenue raised by the district. The municipality may
also, as part of the enabling ordinance, require the submission of other relevant information
related to the association.
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. 10.
new text begin
[428B.07] PETITION REQUIRED.
new text end
new text begin
A municipality may not establish a tourism improvement district under section 428B.02
unless impacted business owners file a petition requesting a public hearing on the proposed
action with the clerk of the municipality.
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. 11.
new text begin
[428B.08] VETO POWER OF OWNERS.
new text end
new text begin Subdivision 1. new text end
new text begin Notice of right to file objections. new text end
new text begin
The effective date of an ordinance or
resolution adopted under this chapter must be at least 45 days after it is adopted by the
municipality. Within five days after the municipality adopts the ordinance or resolution,
the municipality must mail a summary of the ordinance or resolution to each business owner
subject to the service charge within the tourism improvement district in the same manner
that notice is mailed, or delivered by electronic means, under section 428B.02. The mailing
must include a notice that business owners subject to the service charge have the right to
veto, by a simple majority, the ordinance or resolution by filing the required number of
objections with the clerk of the municipality before the effective date of the ordinance or
resolution and include notice that a copy of the ordinance or resolution is available for public
inspection with the clerk of the municipality.
new text end
new text begin Subd. 2. new text end
new text begin Requirements for veto. new text end
new text begin
If impacted business owners file an objection to the
ordinance or resolution before the effective date of the ordinance or resolution, the ordinance
or resolution does not become effective.
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.
new text begin
[428B.09] DISESTABLISHMENT.
new text end
new text begin Subdivision 1. new text end
new text begin Procedure for disestablishment. new text end
new text begin
An ordinance adopted under this chapter
must provide a 30-day period each year in which business owners subject to the service
charge may request disestablishment of the district. Beginning one year after establishment
of the tourism improvement district, an annual 30-day period of disestablishment begins
with the anniversary of the date of establishment. Upon submission of a petition from
impacted business owners, the municipality may disestablish a tourism improvement district
by adopting an ordinance after holding a public hearing on the disestablishment. Prior to
the hearing, the municipality must publish notice of the hearing on disestablishment in at
least two issues of the municipality's official newspaper. The two publications must be two
weeks apart and the municipality must hold the hearing at least three days after the last
publication. Not less than ten days before the hearing, the municipality must mail, or deliver
by electronic means, notice to the business owner of each business subject to the service
charge. The notice must include:
new text end
new text begin
(1) the time and place of the hearing;
new text end
new text begin
(2) a statement that all interested persons will be given an opportunity to be heard at the
hearing regarding disestablishment;
new text end
new text begin
(3) the reason for disestablishment; and
new text end
new text begin
(4) a proposal to dispose of any assets acquired with the revenues of the service charge
imposed under the tourism improvement district.
new text end
new text begin Subd. 2. new text end
new text begin Objection. new text end
new text begin
An ordinance disestablishing the tourism improvement district
becomes effective following the notice and veto requirements in section 428B.08.
new text end
new text begin Subd. 3. new text end
new text begin Refund to business owners. new text end
new text begin
(a) Upon the disestablishment of a tourism
improvement district, any remaining revenues derived from the service charge, or any
revenues derived from the sale of assets acquired with the service charge revenues, shall
be refunded to business owners located and operating within the tourism improvement
district in which service charges were imposed by applying the same method and basis that
was used to calculate the service charges levied in the fiscal year in which the district is
disestablished.
new text end
new text begin
(b) If the disestablishment occurs before the service charge is imposed for the fiscal
year, the method and basis that was used to calculate the service charge imposed in the
immediate prior fiscal year shall be used to calculate the amount of a refund, if any.
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.
new text begin
[428B.10] COORDINATION OF DISTRICTS.
new text end
new text begin
If a county establishes a tourism improvement district in a city or town under this chapter,
a city or town may not establish a tourism improvement district in the part of the city or
town located in the county-established district. If a city or town establishes a tourism
improvement district under this chapter, a county may not establish a tourism improvement
district in the part of the city or town located in the city- or town-established district.
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. 14. new text begin CITY OF VIRGINIA; NET DEBT LIMIT EXEMPTION.
new text end
new text begin
The city of Virginia may finance the construction of a public safety building in the city
of Virginia by obtaining a loan from the United States Department of Agriculture secured
by its general obligation pledge. Any bonds issued relating to this construction project or
repayment of the loan must not be included in the computation of the city's limit on net debt
under Minnesota Statutes, section 475.53, subdivision 1.
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. 15. new text begin RAMSEY COUNTY; EXTENDING REDEMPTION PERIODS OF
PROPERTIES IN TARGETED COMMUNITIES.
new text end
new text begin
The period of redemption under Minnesota Statutes, chapter 281, shall be three years
for all lands in Ramsey County that are, or previously were, located in a targeted community
as defined in Minnesota Statutes, section 469.201, subdivision 10, and that are sold to the
state in a tax judgment sale as a result of delinquency in paying taxes for taxes payable year
2023 or later.
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
Ramsey County and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3, but any compliance with these requirements
must be completed no later than December 31, 2023.
new text end
APPENDIX
Repealed Minnesota Statutes: DIVH1377-1
290A.03 DEFINITIONS.
Subd. 9.
Disabled claimant.
"Disabled claimant" means any claimant who has a disability.
Subd. 11.
Rent constituting property taxes.
"Rent constituting property taxes" means 17 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.
290A.04 REFUND ALLOWABLE.
Subd. 2a.
Renters.
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.
| Household Income | Percent of Income | Percent Paid byClaimant | Maximum StateRefund | |
| $0 to 5,269 | 1.0 percent | 5 percent | $ | 2,150 |
| 5,270 to 6,999 | 1.0 percent | 10 percent | $ | 2,150 |
| 7,000 to 8,749 | 1.1 percent | 10 percent | $ | 2,090 |
| 8,750 to 12,269 | 1.2 percent | 10 percent | $ | 2,040 |
| 12,270 to 15,779 | 1.3 percent | 15 percent | $ | 1,980 |
| 15,780 to 17,519 | 1.4 percent | 15 percent | $ | 1,930 |
| 17,520 to 19,259 | 1.4 percent | 20 percent | $ | 1,880 |
| 19,260 to 22,779 | 1.5 percent | 20 percent | $ | 1,820 |
| 22,780 to 24,529 | 1.6 percent | 20 percent | $ | 1,770 |
| 24,530 to 26,279 | 1.7 percent | 25 percent | $ | 1,770 |
| 26,280 to 29,789 | 1.8 percent | 25 percent | $ | 1,770 |
| 29,790 to 31,529 | 1.9 percent | 30 percent | $ | 1,770 |
| 31,530 to 36,789 | 2.0 percent | 30 percent | $ | 1,770 |
| 36,790 to 42,039 | 2.0 percent | 35 percent | $ | 1,770 |
| 42,040 to 49,059 | 2.0 percent | 40 percent | $ | 1,770 |
| 49,060 to 50,799 | 2.0 percent | 45 percent | $ | 1,610 |
| 50,800 to 52,559 | 2.0 percent | 45 percent | $ | 1,450 |
| 52,560 to 54,319 | 2.0 percent | 45 percent | $ | 1,230 |
| 54,320 to 56,059 | 2.0 percent | 50 percent | $ | 1,070 |
| 56,060 to 57,819 | 2.0 percent | 50 percent | $ | 970 |
| 57,820 to 59,569 | 2.0 percent | 50 percent | $ | 540 |
| 59,570 to 61,319 | 2.0 percent | 50 percent | $ | 210 |
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 $61,320 or more.
290A.23 APPROPRIATION.
Subdivision 1.
Renters credit.
There is appropriated from the general fund in the state treasury to the commissioner of revenue the amount necessary to make the payments required under section 290A.04, subdivision 2a.
477A.011 DEFINITIONS.
Subd. 30a.
Percent of housing built between 1940 and 1970.
"Percent of housing built between 1940 and 1970" is equal to 100 times the most recent count by the United States Bureau of the Census of all housing units in the city built after 1939 but before 1970, divided by the total number of all housing units in the city. Housing units includes both occupied and vacant housing units as defined by the federal census.
Subd. 38.
Household size.
"Household size" means the average number of persons per household in the jurisdiction as most recently estimated and reported by the state demographer and Metropolitan Council as of July 15 of the aid calculation year. A revision to an estimate or enumeration is effective for these purposes only if it is certified to the commissioner on or before July 15 of the aid calculation year. Clerical errors in the certification or use of estimates and counts established as of July 15 in the aid calculation year are subject to correction within the time periods allowed under section 477A.014.
Subd. 42.
Jobs per capita in the city.
"Jobs per capita in the city" means (1) the average annual number of employees in the city based on the data from the Quarterly Census of Employment and Wages, as reported by the Department of Employment and Economic Development, for the most recent calendar year available November 1 of every odd-numbered year, divided by (2) the city's population for the same calendar year as the employment data. The commissioner of the Department of Employment and Economic Development shall certify to the city the average annual number of employees for each city by January 1 of every even-numbered year beginning with January 1, 2014. A city may challenge an estimate under this paragraph by filing its specific objection, including the names of employers that it feels may have misreported data, in writing with the commissioner by December 1 of every odd-numbered year. The commissioner shall make every reasonable effort to address the specific objection and adjust the data as necessary. The commissioner shall certify the estimates of the annual employment to the commissioner of revenue by January 1 of all even-numbered years, including any estimates still under objection.
Subd. 45.
Sparsity adjustment.
For a city with a population of 10,000 or more, the sparsity adjustment is 100 for any city with an average population density less than 150 per square mile, according to the most recent federal census. For a city with a population less than 10,000, the sparsity adjustment is 200 for any city with an average population density less than 30 per square mile, according to the most recent federal census. The sparsity adjustment is zero for all other cities.
477A.013 MUNICIPAL GOVERNMENT DISTRIBUTIONS.
Subd. 13.
Certified aid adjustments.
(a) A city that received an aid base increase under Minnesota Statutes 2012, section 477A.011, subdivision 36, paragraph (e), shall have its total aid under subdivision 9 increased by an amount equal to $150,000 for aids payable in 2014 through 2018.
(b) A city that received an aid base increase under Minnesota Statutes 2012, section 477A.011, subdivision 36, paragraph (r), shall have its total aid under subdivision 9 increased by an amount equal to $160,000 for aids payable in 2014 and thereafter.
(c) A city that received a temporary aid increase under Minnesota Statutes 2012, section 477A.011, subdivision 36, paragraph (o), shall have its total aid under subdivision 9 increased by an amount equal to $1,000,000 for aids payable in 2014 only.