HF 1556

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; providing for taxation of mining 
  1.3             and refining of nonferrous ores, metals, and minerals; 
  1.4             providing for distribution of the proceeds; amending 
  1.5             Minnesota Statutes 2002, sections 272.02, by adding a 
  1.6             subdivision; 290.05, subdivision 1; 290.17, 
  1.7             subdivision 4; 290.191, subdivision 1; 297A.68, 
  1.8             subdivision 4; 297A.71, by adding a subdivision; 
  1.9             298.01, subdivisions 3, 3a, 4; 298.015, subdivisions 
  1.10            1, 2; 298.018; repealing Minnesota Statutes 2002, 
  1.11            sections 298.01, subdivisions 3c, 3d, 4d, 4e; 298.017. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 2002, section 272.02, is 
  1.14  amended by adding a subdivision to read: 
  1.15     Subd. 56.  [PROPERTY USED IN THE BUSINESS OF MINING SUBJECT 
  1.16  TO THE NET PROCEEDS TAX.] The following property used in the 
  1.17  business of mining subject to the net proceeds tax under section 
  1.18  298.015 is exempt: 
  1.19     (1) deposits of ores, metals, and minerals and the lands in 
  1.20  which they are contained; 
  1.21     (2) all real and personal property used in mining, 
  1.22  quarrying, or producing ores, minerals, or metals, including 
  1.23  lands occupied by or used in connection with the mining, 
  1.24  quarrying, or production facilities; and 
  1.25     (3) concentrate or direct reduced ore. 
  1.26  This exemption applies for taxes payable in each year that the 
  1.27  tax under section 298.015 is imposed with respect to the 
  1.28  property. 
  2.1      [EFFECTIVE DATE.] This section is effective for taxes 
  2.2   payable in 2004 and thereafter. 
  2.3      Sec. 2.  Minnesota Statutes 2002, section 290.05, 
  2.4   subdivision 1, is amended to read: 
  2.5      Subdivision 1.  [EXEMPT ENTITIES.] The following 
  2.6   corporations, individuals, estates, trusts, and organizations 
  2.7   shall be exempted from taxation under this chapter, provided 
  2.8   that every such person or corporation claiming exemption under 
  2.9   this chapter, in whole or in part, must establish to the 
  2.10  satisfaction of the commissioner the taxable status of any 
  2.11  income or activity: 
  2.12     (a) corporations, individuals, estates, and trusts engaged 
  2.13  in the business of mining or producing iron ore and mining, 
  2.14  producing, or refining other ores, metals, and minerals, the 
  2.15  mining or, production, or refining of which is subject to the 
  2.16  occupation tax imposed by section 298.01; but if any such 
  2.17  corporation, individual, estate, or trust engages in any other 
  2.18  business or activity or has income from any property not used in 
  2.19  such business it shall be subject to this tax computed on the 
  2.20  net income from such property or such other business or 
  2.21  activity.  Royalty shall not be considered as income from the 
  2.22  business of mining or producing iron ore within the meaning of 
  2.23  this section; 
  2.24     (b) the United States of America, the state of Minnesota or 
  2.25  any political subdivision of either agencies or 
  2.26  instrumentalities, whether engaged in the discharge of 
  2.27  governmental or proprietary functions; and 
  2.28     (c) any insurance company. 
  2.29     [EFFECTIVE DATE.] This section is effective for taxable 
  2.30  years beginning after December 31, 2002. 
  2.31     Sec. 3.  Minnesota Statutes 2002, section 290.17, 
  2.32  subdivision 4, is amended to read: 
  2.33     Subd. 4.  [UNITARY BUSINESS PRINCIPLE.] (a) If a trade or 
  2.34  business conducted wholly within this state or partly within and 
  2.35  partly without this state is part of a unitary business, the 
  2.36  entire income of the unitary business is subject to 
  3.1   apportionment pursuant to section 290.191.  Notwithstanding 
  3.2   subdivision 2, paragraph (c), none of the income of a unitary 
  3.3   business is considered to be derived from any particular source 
  3.4   and none may be allocated to a particular place except as 
  3.5   provided by the applicable apportionment formula.  The 
  3.6   provisions of this subdivision do not apply to business income 
  3.7   subject to subdivision 5, income of an insurance company, or 
  3.8   income of an investment company determined under section 290.36, 
  3.9   or income of a mine or mineral processing facility subject to 
  3.10  tax under section 298.01. 
  3.11     (b) The term "unitary business" means business activities 
  3.12  or operations which result in a flow of value between them.  The 
  3.13  term may be applied within a single legal entity or between 
  3.14  multiple entities and without regard to whether each entity is a 
  3.15  sole proprietorship, a corporation, a partnership or a trust.  
  3.16     (c) Unity is presumed whenever there is unity of ownership, 
  3.17  operation, and use, evidenced by centralized management or 
  3.18  executive force, centralized purchasing, advertising, 
  3.19  accounting, or other controlled interaction, but the absence of 
  3.20  these centralized activities will not necessarily evidence a 
  3.21  nonunitary business.  Unity is also presumed when business 
  3.22  activities or operations are of mutual benefit, dependent upon 
  3.23  or contributory to one another, either individually or as a 
  3.24  group. 
  3.25     (d) Where a business operation conducted in Minnesota is 
  3.26  owned by a business entity that carries on business activity 
  3.27  outside the state different in kind from that conducted within 
  3.28  this state, and the other business is conducted entirely outside 
  3.29  the state, it is presumed that the two business operations are 
  3.30  unitary in nature, interrelated, connected, and interdependent 
  3.31  unless it can be shown to the contrary.  
  3.32     (e) Unity of ownership is not deemed to exist when a 
  3.33  corporation is involved unless that corporation is a member of a 
  3.34  group of two or more business entities and more than 50 percent 
  3.35  of the voting stock of each member of the group is directly or 
  3.36  indirectly owned by a common owner or by common owners, either 
  4.1   corporate or noncorporate, or by one or more of the member 
  4.2   corporations of the group.  For this purpose, the term "voting 
  4.3   stock" shall include membership interests of mutual insurance 
  4.4   holding companies formed under section 60A.077.  
  4.5      (f) The net income and apportionment factors under section 
  4.6   290.191 or 290.20 of foreign corporations and other foreign 
  4.7   entities which are part of a unitary business shall not be 
  4.8   included in the net income or the apportionment factors of the 
  4.9   unitary business.  A foreign corporation or other foreign entity 
  4.10  which is required to file a return under this chapter shall file 
  4.11  on a separate return basis.  The net income and apportionment 
  4.12  factors under section 290.191 or 290.20 of foreign operating 
  4.13  corporations shall not be included in the net income or the 
  4.14  apportionment factors of the unitary business except as provided 
  4.15  in paragraph (g). 
  4.16     (g) The adjusted net income of a foreign operating 
  4.17  corporation shall be deemed to be paid as a dividend on the last 
  4.18  day of its taxable year to each shareholder thereof, in 
  4.19  proportion to each shareholder's ownership, with which such 
  4.20  corporation is engaged in a unitary business.  Such deemed 
  4.21  dividend shall be treated as a dividend under section 290.21, 
  4.22  subdivision 4. 
  4.23     Dividends actually paid by a foreign operating corporation 
  4.24  to a corporate shareholder which is a member of the same unitary 
  4.25  business as the foreign operating corporation shall be 
  4.26  eliminated from the net income of the unitary business in 
  4.27  preparing a combined report for the unitary business.  The 
  4.28  adjusted net income of a foreign operating corporation shall be 
  4.29  its net income adjusted as follows: 
  4.30     (1) any taxes paid or accrued to a foreign country, the 
  4.31  commonwealth of Puerto Rico, or a United States possession or 
  4.32  political subdivision of any of the foregoing shall be a 
  4.33  deduction; and 
  4.34     (2) the subtraction from federal taxable income for 
  4.35  payments received from foreign corporations or foreign operating 
  4.36  corporations under section 290.01, subdivision 19d, clause (10), 
  5.1   shall not be allowed. 
  5.2      If a foreign operating corporation incurs a net loss, 
  5.3   neither income nor deduction from that corporation shall be 
  5.4   included in determining the net income of the unitary business. 
  5.5      (h) For purposes of determining the net income of a unitary 
  5.6   business and the factors to be used in the apportionment of net 
  5.7   income pursuant to section 290.191 or 290.20, there must be 
  5.8   included only the income and apportionment factors of domestic 
  5.9   corporations or other domestic entities other than foreign 
  5.10  operating corporations that are determined to be part of the 
  5.11  unitary business pursuant to this subdivision, notwithstanding 
  5.12  that foreign corporations or other foreign entities might be 
  5.13  included in the unitary business.  
  5.14     (i) Deductions for expenses, interest, or taxes otherwise 
  5.15  allowable under this chapter that are connected with or 
  5.16  allocable against dividends, deemed dividends described in 
  5.17  paragraph (g), or royalties, fees, or other like income 
  5.18  described in section 290.01, subdivision 19d, clause (10), shall 
  5.19  not be disallowed. 
  5.20     (j) Each corporation or other entity, except a sole 
  5.21  proprietorship, that is part of a unitary business must file 
  5.22  combined reports as the commissioner determines.  On the 
  5.23  reports, all intercompany transactions between entities included 
  5.24  pursuant to paragraph (h) must be eliminated and the entire net 
  5.25  income of the unitary business determined in accordance with 
  5.26  this subdivision is apportioned among the entities by using each 
  5.27  entity's Minnesota factors for apportionment purposes in the 
  5.28  numerators of the apportionment formula and the total factors 
  5.29  for apportionment purposes of all entities included pursuant to 
  5.30  paragraph (h) in the denominators of the apportionment formula. 
  5.31     (k) If a corporation has been divested from a unitary 
  5.32  business and is included in a combined report for a fractional 
  5.33  part of the common accounting period of the combined report:  
  5.34     (1) its income includable in the combined report is its 
  5.35  income incurred for that part of the year determined by 
  5.36  proration or separate accounting; and 
  6.1      (2) its sales, property, and payroll included in the 
  6.2   apportionment formula must be prorated or accounted for 
  6.3   separately. 
  6.4      [EFFECTIVE DATE.] This section is effective for taxable 
  6.5   years beginning after December 31, 2002. 
  6.6      Sec. 4.  Minnesota Statutes 2002, section 290.191, 
  6.7   subdivision 1, is amended to read: 
  6.8      Subdivision 1.  [GENERAL RULE.] (a) Except as otherwise 
  6.9   provided in section 290.17, subdivision 5, the net income from a 
  6.10  trade or business carried on partly within and partly without 
  6.11  this state must be apportioned to this state as provided in this 
  6.12  section.  To the extent that an entity is exempt from taxation 
  6.13  under this chapter as provided in section 290.05, the 
  6.14  apportionment factors associated with the entity's exempt 
  6.15  activities are excluded from the apportionment formula under 
  6.16  this section. 
  6.17     (b) For purposes of this section, "state" means a state of 
  6.18  the United States, the District of Columbia, the commonwealth of 
  6.19  Puerto Rico, or any territory or possession of the United States 
  6.20  or any foreign country. 
  6.21     [EFFECTIVE DATE.] This section is effective for taxable 
  6.22  years beginning after December 31, 2002. 
  6.23     Sec. 5.  Minnesota Statutes 2002, section 297A.68, 
  6.24  subdivision 4, is amended to read: 
  6.25     Subd. 4.  [TACONITE, OTHER ORES, METALS, OR MINERALS; 
  6.26  PRODUCTION MATERIALS.] Mill liners, grinding rods, and grinding 
  6.27  balls that are substantially consumed in the production of 
  6.28  taconite or other ores, metals, or minerals are exempt when sold 
  6.29  to or stored, used, or consumed by persons taxed under the 
  6.30  in-lieu provisions of chapter 298.  
  6.31     [EFFECTIVE DATE.] This section is effective for sales and 
  6.32  purchases made after June 30, 2005. 
  6.33     Sec. 6.  Minnesota Statutes 2002, section 297A.71, is 
  6.34  amended by adding a subdivision to read: 
  6.35     Subd. 32.  [CONSTRUCTION MATERIALS AND EQUIPMENT; 
  6.36  NONFERROUS METALS AND MINERALS FACILITY.] Materials and supplies 
  7.1   used or consumed in, and equipment incorporated into, the 
  7.2   improvement, construction, or expansion of an existing taconite 
  7.3   ore processing facility to extract and refine nonferrous ores, 
  7.4   metals, and minerals, including the construction, improvement, 
  7.5   or expansion of a hydrometallurgical processing facility, are 
  7.6   exempt.  This exemption includes any delivery or installation 
  7.7   charges relating to materials, supplies, and equipment exempt 
  7.8   under this section.  
  7.9      [EFFECTIVE DATE.] This section is effective for sales and 
  7.10  purchases made after June 30, 2005. 
  7.11     Sec. 7.  Minnesota Statutes 2002, section 298.01, 
  7.12  subdivision 3, is amended to read: 
  7.13     Subd. 3.  [OCCUPATION TAX; OTHER ORES.] Every person 
  7.14  engaged in the business of mining, refining, or producing ores, 
  7.15  metals, or minerals in this state, except iron ore or taconite 
  7.16  concentrates, shall pay an occupation tax to the state of 
  7.17  Minnesota as provided in this subdivision.  For purposes of this 
  7.18  subdivision, mining includes the application of 
  7.19  hydrometallurgical processes.  The tax is determined in the same 
  7.20  manner as the tax imposed by section 290.02, except that 
  7.21  sections 290.05, subdivision 1, clause (a), 290.0921, and 
  7.22  290.17, subdivision 4, do not apply.  Except as provided in 
  7.23  section 290.05, subdivision 1, paragraph (a), the tax is in 
  7.24  addition to all other taxes. 
  7.25     [EFFECTIVE DATE.] This section is effective for taxable 
  7.26  years beginning after December 31, 2002. 
  7.27     Sec. 8.  Minnesota Statutes 2002, section 298.01, 
  7.28  subdivision 3a, is amended to read: 
  7.29     Subd. 3a.  [GROSS INCOME.] (a) For purposes of determining 
  7.30  a person's taxable income under subdivision 3, gross income is 
  7.31  determined by the amount of gross proceeds from mining in this 
  7.32  state under section 298.016 and includes any gain or loss 
  7.33  recognized from the sale or disposition of assets used in the 
  7.34  business in this state. 
  7.35     (b) In applying section 290.191, subdivision 5, transfers 
  7.36  of ores, metals, or minerals that are subject to this chapter 
  8.1   are deemed to be sales outside this state if the ores, metals, 
  8.2   or minerals are transported out of this state after the ores 
  8.3   have been converted to a commercially marketable quality. 
  8.4      [EFFECTIVE DATE.] This section is effective for taxable 
  8.5   years beginning after December 31, 2002. 
  8.6      Sec. 9.  Minnesota Statutes 2002, section 298.01, 
  8.7   subdivision 4, is amended to read: 
  8.8      Subd. 4.  [OCCUPATION TAX; IRON ORE; TACONITE 
  8.9   CONCENTRATES.] A person engaged in the business of mining, 
  8.10  refining, or producing of iron ore, taconite concentrates or 
  8.11  direct reduced ore in this state shall pay an occupation tax to 
  8.12  the state of Minnesota.  The tax is determined in the same 
  8.13  manner as the tax imposed by section 290.02, except that 
  8.14  sections 290.05, subdivision 1, clause (a), 290.0921, and 
  8.15  290.17, subdivision 4, do not apply.  The tax is in addition to 
  8.16  all other taxes. 
  8.17     [EFFECTIVE DATE.] This section is effective for taxable 
  8.18  years beginning after December 31, 2002. 
  8.19     Sec. 10.  Minnesota Statutes 2002, section 298.015, 
  8.20  subdivision 1, is amended to read: 
  8.21     Subdivision 1.  [TAX IMPOSED.] A person engaged in the 
  8.22  business of mining shall pay to the state of Minnesota for 
  8.23  distribution as provided in section 298.018 a net proceeds tax 
  8.24  equal to two percent of the net proceeds from mining in 
  8.25  Minnesota.  The tax applies to all mineral and energy resources 
  8.26  mined or extracted within the state of Minnesota except for 
  8.27  sand, silica sand, gravel, building stone, crushed rock, 
  8.28  limestone, granite, dimension granite, dimension stone, 
  8.29  horticultural peat, clay, soil, iron ore, and taconite 
  8.30  concentrates.  Except as provided in section 272.02, subdivision 
  8.31  56, the tax is in addition to all other taxes provided for by 
  8.32  law.  
  8.33     [EFFECTIVE DATE.] This section is effective for taxes 
  8.34  payable in 2004 and thereafter. 
  8.35     Sec. 11.  Minnesota Statutes 2002, section 298.015, 
  8.36  subdivision 2, is amended to read: 
  9.1      Subd. 2.  [NET PROCEEDS.] For purposes of this section, the 
  9.2   term "net proceeds" means the gross proceeds from mining, as 
  9.3   defined in section 298.016, less the same deductions allowed in 
  9.4   section 298.017 for purposes of determining taxable income under 
  9.5   section 298.01, subdivision 3b.  No other credits or deductions 
  9.6   shall apply to this tax except for those provided in section 
  9.7   298.017.  
  9.8      [EFFECTIVE DATE.] This section is effective for taxes 
  9.9   payable in 2004 and thereafter. 
  9.10     Sec. 12.  Minnesota Statutes 2002, section 298.018, is 
  9.11  amended to read: 
  9.12     298.018 [DISTRIBUTION OF PROCEEDS.] 
  9.13     Subdivision 1.  [WITHIN TACONITE TAX RELIEF AREA GENERAL 
  9.14  ALLOCATION.] (a) The commissioner of revenue shall deposit the 
  9.15  proceeds of the tax paid under sections 298.015 to 298.017 on 
  9.16  minerals and energy resources mined or extracted within the 
  9.17  taconite tax relief area defined in section 273.134, paragraph 
  9.18  (b), shall be allocated as follows: 
  9.19     (1) five percent to the city or town within which the 
  9.20  minerals or energy resources are mined or extracted; 
  9.21     (2) ten percent to the taconite municipal aid account to be 
  9.22  distributed as provided in section 298.282; 
  9.23     (3) ten percent to the school district within which the 
  9.24  minerals or energy resources are mined or extracted; 
  9.25     (4) 20 percent to a group of school districts comprised of 
  9.26  those school districts wherein the mineral or energy resource 
  9.27  was mined or extracted or in which there is a qualifying 
  9.28  municipality as defined by section 273.134, paragraph (b), in 
  9.29  direct proportion to school district indexes as follows:  for 
  9.30  each school district, its pupil units determined under section 
  9.31  126C.05 for the prior school year shall be multiplied by the 
  9.32  ratio of the average adjusted net tax capacity per pupil unit 
  9.33  for school districts receiving aid under this clause as 
  9.34  calculated pursuant to chapters 122A, 126C, and 127A for the 
  9.35  school year ending prior to distribution to the adjusted net tax 
  9.36  capacity per pupil unit of the district.  Each district shall 
 10.1   receive that portion of the distribution which its index bears 
 10.2   to the sum of the indices for all school districts that receive 
 10.3   the distributions; 
 10.4      (5) 20 percent to the county within which the minerals or 
 10.5   energy resources are mined or extracted; 
 10.6      (6) 20 percent to St. Louis county acting as the counties' 
 10.7   fiscal agent to be distributed as provided in sections 273.134 
 10.8   to 273.136; 
 10.9      (7) five percent to the iron range resources and 
 10.10  rehabilitation board for the purposes of section 298.22; 
 10.11     (8) five percent to the northeast Minnesota economic 
 10.12  protection trust fund; and 
 10.13     (9) five percent to the taconite environmental protection 
 10.14  fund in the general fund.  The proceeds of the tax must be 
 10.15  allocated between the state general fund and local taxing 
 10.16  districts as provided in this section. 
 10.17     (b) The proceeds of the tax shall be distributed on July 15 
 10.18  each year.  
 10.19     Subd. 2.  [OUTSIDE TACONITE TAX RELIEF AREA GENERAL FUND 
 10.20  SHARE.] The proceeds of the tax paid under sections 298.015 to 
 10.21  298.017 on minerals and energy resources mined or extracted 
 10.22  outside of the taconite tax relief area defined in section 
 10.23  273.134, paragraph (b), shall be deposited in the general fund 
 10.24  share equals the amount of the proceeds for the taxable year 
 10.25  multiplied by a fraction, the numerator of which is the rate 
 10.26  under the state general tax under section 275.025 and the 
 10.27  denominator of which is the average total property tax rate 
 10.28  applicable to property assessed under section 273.13, 
 10.29  subdivision 24, for the unique areas in which the metals, 
 10.30  minerals, energy resources, and processing facilities of the 
 10.31  taxpayer are located. 
 10.32     Subd. 3.  [FISCAL DISPARITIES SHARE.] If the metals, 
 10.33  minerals, energy resources, or processing facility are located 
 10.34  in the taconite tax relief area, as defined in section 276A.01, 
 10.35  subdivision 2, or in the area, as defined in section 473F.02, 
 10.36  subdivision 2, the commissioner of revenue shall pay 40 percent 
 11.1   of the remainder of the proceeds after deducting the general 
 11.2   fund share as a fiscal disparities share to the administrative 
 11.3   auditor for the area under section 276A.02 or 473F.03.  The 
 11.4   administrative auditor shall apportion the fiscal disparities 
 11.5   share among the governmental units in proportion to each unit's 
 11.6   distribution levy determined under section 276A.06, subdivision 
 11.7   3, paragraph (a), or 473F.08, subdivision 3, paragraph (a). 
 11.8      Subd. 4.  [LOCAL TAXING DISTRICT SHARES.] (a) The 
 11.9   commissioner shall pay the proceeds, less the general fund share 
 11.10  under subdivision 2 and less any fiscal disparities share under 
 11.11  subdivision 3, to the county auditor of the county in which the 
 11.12  metals, minerals, energy resources, or processing facility are 
 11.13  located.  If the metals, minerals, energy resources, or 
 11.14  processing facilities of the taxpayer are located in two or more 
 11.15  counties, the commissioner shall divide the proceeds between the 
 11.16  counties based on their relative shares of the estimated market 
 11.17  value of the metals, minerals, energy resources, and minerals 
 11.18  processing facility, as determined under subdivision 5. 
 11.19     (b) The county auditor shall allocate the proceeds of the 
 11.20  tax among the taxing districts in which the metals, minerals, 
 11.21  energy resources, and minerals processing facilities are located 
 11.22  in the same proportions that property taxes are distributed.  If 
 11.23  the metals, minerals, energy resources, or processing facilities 
 11.24  are located within two or more unique taxing areas, the auditor 
 11.25  shall use the estimated market values for the metals, minerals, 
 11.26  energy resources, and property, determined under subdivision 5, 
 11.27  to allocate the proceeds among the unique taxing areas. 
 11.28     Subd. 5.  [MARKET VALUE ALLOCATION.] If the metals, 
 11.29  minerals, energy resources, and processing facilities of a 
 11.30  taxpayer are located in two or more unique taxing areas, the 
 11.31  commissioner shall determine the estimated market value of the 
 11.32  taxpayer's metals, minerals, energy resources, and processing 
 11.33  facilities that are in each taxing area.  In making this 
 11.34  determination, the commissioner may use any data the 
 11.35  commissioner determines is reliable, including information 
 11.36  provided by the taxpayer. 
 12.1      Subd. 6.  [TAX CAPACITY FOR STATE AID.] For each city, 
 12.2   county, and school district that receives distributions under 
 12.3   this section, the commissioner shall annually determine an 
 12.4   adjusted net tax capacity equivalent amount, based on the 
 12.5   distributions received under subdivisions 3 and 4 and its 
 12.6   property tax rate.  These amounts must be used in the 
 12.7   distribution of state aid under a formula using adjusted net tax 
 12.8   capacity as a variable or factor in the distribution formula. 
 12.9      Subd. 7.  [UNIQUE TAXING AREA.] For the purposes of this 
 12.10  section, "unique taxing area" means the geographic area subject 
 12.11  to the same set of local tax rates. 
 12.12     [EFFECTIVE DATE.] This section is effective for 
 12.13  distributions required to be made after July 15, 2003. 
 12.14     Sec. 13.  [TRANSITION PROVISION.] 
 12.15     Each person with an alternative minimum tax credit on 
 12.16  December 31, 2002, pursuant to Minnesota Statutes 2002, section 
 12.17  298.01, may take that credit against occupation tax under the 
 12.18  provisions of Minnesota Statutes 2002, section 298.01, 
 12.19  subdivision 3d or 4e. 
 12.20     [EFFECTIVE DATE.] This section is effective the day 
 12.21  following final enactment. 
 12.22     Sec. 14.  [REPEALER.] 
 12.23     (a) Minnesota Statutes 2002, section 298.01, subdivisions 
 12.24  3c, 3d, 4d, and 4e, are repealed effective for taxable years 
 12.25  beginning after December 31, 2002. 
 12.26     (b) Minnesota Statutes 2002, section 298.017, is repealed 
 12.27  effective for taxes payable in 2004 and thereafter.