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HF 1753

as introduced - 90th Legislature (2017 - 2018) Posted on 02/27/2017 01:51pm

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

Current Version - as introduced

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A bill for an act
relating to taxation; sales and use; Sustainable Forest Incentive Act; modifying
collection and refund provisions; allowing for disclosure of certain information
and a collection agreement between the commissioner of revenue and the
commissioner of the natural resources; modifying requirements for land enrolled
in the Sustainable Forest Incentive Act; amending Minnesota Statutes 2016, sections
84.82, subdivision 10; 84.922, subdivision 11; 86B.401, subdivision 12; 115A.1314,
subdivision 1; 270B.14, by adding a subdivision; 290C.03; proposing coding for
new law in Minnesota Statutes, chapters 290C; 297A; repealing Minnesota Statutes
2016, sections 290C.02, subdivisions 5, 9; 290C.06.

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

ARTICLE 1

SALES AND USE, AND SPECIAL TAXES

Section 1.

Minnesota Statutes 2016, section 84.82, subdivision 10, is amended to read:


Subd. 10.

Proof of sales tax paymentnew text begin ; collection and refundnew text end .

new text begin (a) new text end A person applying
for initial registration of a snowmobile must provide a deleted text begin snowmobile purchaser's certificate,
showing a complete description of the snowmobile, the seller's name and address, the full
purchase price of the snowmobile, and the trade-in allowance, if any. The certificate must
include information showing either
deleted text end new text begin receipt, invoice, or other document to prove that:
new text end

(1) deleted text begin thatdeleted text end the sales and use tax under chapter 297A was paid deleted text begin ordeleted text end new text begin ;
new text end

(2) the purchase was exempt from tax under chapter 297Adeleted text begin . The commissioner of public
safety, in consultation with the commissioner and the commissioner of revenue, shall
prescribe the form of the certificate.The certificate is not required if the applicant provides
a receipt, invoice, or other document that shows
deleted text end new text begin ; or
new text end

new text begin (3)new text end the snowmobile was purchased from a retailernew text begin that isnew text end maintaining a place of business
in this state as defined in section 297A.66, subdivision 1new text begin , and is a dealernew text end .

new text begin (b) The commissioner or authorized deputy registrars, acting as agents of the
commissioner of revenue under an agreement between the commissioner and the
commissioner of revenue, as provided in section 297A.825:
new text end

new text begin (1) must collect use tax from the applicant if the applicant does not provide the proof
required under paragraph (a); and
new text end

new text begin (2) are authorized to issue refunds of use tax paid to them in error.
new text end

new text begin (c) Subdivision 11 does not apply to refunds under this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for snowmobiles registered after June
30, 2017.
new text end

Sec. 2.

Minnesota Statutes 2016, section 84.922, subdivision 11, is amended to read:


Subd. 11.

Proof of sales tax paymentnew text begin ; collection and refundnew text end .

new text begin (a) new text end A person applying
for initial registration in Minnesota of an all-terrain vehicle deleted text begin shalldeleted text end new text begin mustnew text end provide a deleted text begin purchaser's
certificate showing a complete description of the all-terrain vehicle, the seller's name and
address, the full purchase price of the all-terrain vehicle, and the trade-in allowance, if any.
The certificate also must include information showing either
deleted text end new text begin receipt, invoice, or other
document to prove
new text end thatnew text begin :
new text end

(1) the sales and use tax under chapter 297A was paiddeleted text begin , ordeleted text end new text begin ;
new text end

(2) the purchase was exempt from tax under chapter 297Adeleted text begin . The certificate is not required
if the applicant provides a receipt, invoice, or other document that shows
deleted text end new text begin ; or
new text end

new text begin (3)new text end the all-terrain vehicle was purchased from a retailernew text begin that isnew text end maintaining a place of
business in this state as defined in section 297A.66, subdivision 1new text begin , and is a dealernew text end .

new text begin (b) The commissioner or authorized deputy registrars, acting as agents of the
commissioner of revenue under an agreement between the commissioner and the
commissioner of revenue, as provided in section 297A.825:
new text end

new text begin (1) must collect use tax from the applicant if the applicant does not provide the proof
required under paragraph (a); and
new text end

new text begin (2) are authorized to issue refunds of use tax paid to them in error.
new text end

new text begin (c) Subdivision 12 does not apply to refunds under this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for all-terrain vehicles registered after
June 30, 2017.
new text end

Sec. 3.

Minnesota Statutes 2016, section 86B.401, subdivision 12, is amended to read:


Subd. 12.

Proof of sales tax paymentnew text begin ; collection and refundnew text end .

new text begin (a) new text end A person applying
for initial licensing of a watercraft must provide a deleted text begin watercraft purchaser's certificate, showing
a complete description of the watercraft, the seller's name and address, the full purchase
price of the watercraft, and the trade-in allowance, if any. The certificate must include
information showing either
deleted text end new text begin receipt, invoice, or other document to prove that:
new text end

(1) deleted text begin thatdeleted text end the sales and use tax under chapter 297A was paid deleted text begin ordeleted text end new text begin ;
new text end

(2) the purchase was exempt from tax under chapter 297Adeleted text begin . The commissioner of public
safety, in consultation with the commissioner and the commissioner of revenue, shall
prescribe the form of the certificate.The certificate is not required if the applicant provides
a receipt, invoice, or other document that shows
deleted text end new text begin ; or
new text end

new text begin (3)new text end the watercraft was purchased from a retailernew text begin that isnew text end maintaining a place of business
in this state as defined in section 297A.66, subdivision 1new text begin , and is a dealernew text end .

new text begin (b) The commissioner or authorized deputy registrars, acting as agents of the
commissioner of revenue under an agreement between the commissioner and the
commissioner of revenue, as provided in section 297A.825:
new text end

new text begin (1) must collect use tax from the applicant if the applicant does not provide the proof
required under paragraph (a); and
new text end

new text begin (2) are authorized to issue refunds of use tax paid to them in error.
new text end

new text begin (c) Section 86B.415, subdivision 11, does not apply to refunds under this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for watercraft licensed after June 30,
2017.
new text end

Sec. 4.

Minnesota Statutes 2016, section 115A.1314, subdivision 1, is amended to read:


Subdivision 1.

Registration fee.

(a) Each manufacturer who registers under section
115A.1312 must, by August 15 each year, pay to the commissioner of revenue an annual
registration fee, on a form and in a manner prescribed by the commissioner of revenue. The
commissioner of revenue must deposit the fee in the state treasury and credit the fee to the
environmental fund.

(b) The registration fee for manufacturers that sell 100 or more video display devices
to households in the state during the previous calendar year is $2,500, plus a variable
recycling fee.new text begin The registration fee for manufacturers that sell fewer than 100 video display
devices to households in the state during the previous calendar year is a variable recycling
fee.
new text end The variable recycling fee is calculated according to the formula:

[A - (B + C)] x D, where:

A = the manufacturer's recycling obligation as determined under section 115A.1320;

B = the number of pounds of covered electronic devices recycled by a manufacturer
from households during the immediately preceding program year, as reported under section
115A.1316, subdivision 1;

C = the number of phase I or phase II recycling credits a manufacturer elects to use to
calculate the variable recycling fee; and

D = the estimated per-pound cost of recycling, initially set at $0.50 per pound for
manufacturers who recycle less than 50 percent of the manufacturer's recycling obligation;
$0.40 per pound for manufacturers who recycle at least 50 percent but less than 90 percent
of the manufacturer's recycling obligation; $0.30 per pound for manufacturers who recycle
at least 90 percent but less than 100 percent of the manufacturer's recycling obligation; and
$0.00 per pound for manufacturers who recycle 100 percent or more of the manufacturer's
recycling obligation.

(c) A manufacturer may petition the agency to waive the per-pound cost of recycling
fee, element D in the formula in paragraph (b), required under this section. The agency shall
direct the commissioner of revenue to waive the per-pound cost of recycling fee if the
manufacturer demonstrates to the agency's satisfaction a good faith effort to meet its recycling
obligation as determined under section 115A.1320. The petition must include:

(1) documentation that the manufacturer has met at least 75 percent of its recycling
obligation as determined under section 115A.1320;

(2) a list of political subdivisions and public and private collectors with whom the
manufacturer had a formal contract or agreement in effect during the previous program year
to recycle or collect covered electronic devices;

(3) the total amounts of covered electronic devices collected from both within and outside
of the 11-county metropolitan area, as defined in subdivision 2;

(4) a description of the manufacturer's best efforts to meet its recycling obligation as
determined under section 115A.1320; and

(5) any other information requested by the agency.

(d) A manufacturer may retain phase I and phase II recycling credits to be added, in
whole or in part, to the actual value of C, as reported under section 115A.1316, subdivision
2
, during any succeeding program year, provided that no more than 25 percent of a
manufacturer's recycling obligation (A x B) for any program year may be met with phase
I and phase II recycling credits, separately or in combination, generated in a prior program
year. A manufacturer may sell any portion or all of its phase I and phase II recycling credits
to another manufacturer, at a price negotiated by the parties, who may use the credits in the
same manner.

(e) For the purpose of calculating a manufacturer's variable recycling fee under paragraph
(b), starting with the program year beginning July 1, 2019, and continuing each year
thereafter, the weight of covered electronic devices collected from households located
outside the 11-county metropolitan area, as defined in subdivision 2, paragraph (b), is
calculated at 1.5 times their actual weight.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for registration fees due after June 30,
2017.
new text end

Sec. 5.

Minnesota Statutes 2016, section 270B.14, is amended by adding a subdivision to
read:


new text begin Subd. 20. new text end

new text begin Department of Natural Resources; authorized deputy registrars of motor
vehicles.
new text end

new text begin The commissioner may disclose return information related to the taxes imposed
by chapter 297A to the Department of Natural Resources or an authorized deputy registrar
of motor vehicles only:
new text end

new text begin (1) if the commissioner has an agreement with the commissioner of natural resources
under section 297A.825, subdivision 1; and
new text end

new text begin (2) to the extent necessary for the Department of Natural Resources or an authorized
deputy registrar of motor vehicles to verify that the applicable sales or use tax has been paid
or that a sales tax exemption applies, and to otherwise administer sections 84.82, subdivision
10; 84.922, subdivision 11; 86B.401, subdivision 12; and 297A.825.
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 [297A.825] SNOWMOBILES; ALL-TERRAIN VEHICLES; WATERCRAFT;
PAYMENT OF TAXES; REFUNDS.
new text end

new text begin Subdivision 1. new text end

new text begin Agreement with commissioners of natural resources and public
safety; collection and refunds.
new text end

new text begin The commissioner may enter into an agreement with the
commissioner of natural resources, in consultation with the commissioner of public safety,
that provides that:
new text end

new text begin (1) the commissioner of natural resources and authorized deputy registrars of motor
vehicles must collect use tax on snowmobiles, all-terrain vehicles, and watercraft from
persons applying for initial registration or license of the item unless the applicant provides
a receipt, invoice, or other document to prove that:
new text end

new text begin (i) sales tax was paid on the purchase;
new text end

new text begin (ii) the purchase was exempt under this chapter;
new text end

new text begin (iii) use tax was paid to the commissioner in a form prescribed by the commissioner; or
new text end

new text begin (iv) the item was purchased from a retailer that is maintaining a place of business in this
state as defined in section 297A.66, subdivision 1, and is a dealer as defined in section
84.81, subdivision 10; 84.92, subdivision 3; or 86B.005, subdivision 4; and
new text end

new text begin (2) the commissioner of natural resources and authorized deputy registrars of motor
vehicles are authorized to issue refunds of use tax paid to them in error, meaning that either
the sales or use tax had already been paid or that the purchase was exempt from tax under
this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Agents. new text end

new text begin For the purposes of collecting or refunding the tax under this section,
the commissioner of natural resources and authorized deputy registrars of motor vehicles
are the agents of the commissioner and are subject to, and must strictly comply with, all
rules consistent with this chapter prescribed by the commissioner.
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

ARTICLE 2

SUSTAINABLE FOREST INCENTIVE ACT PROVISIONS

Section 1.

Minnesota Statutes 2016, section 290C.03, is amended to read:


290C.03 ELIGIBILITY REQUIREMENTS.

(a) Land may be enrolled in the sustainable forest incentive program under this chapter
if all of the following conditions are met:

(1) the land consists of at least 20 contiguous acres and at least 50 percent of the land
must meet the definition of forest land in section 88.01, subdivision 7, during the enrollment;

(2) a forest management plan for the land must be new text begin (i) new text end prepared by an approved plan
writer and implemented during the period in which the land is enrollednew text begin , and (ii) registered
with the Department of Natural Resources
new text end ;

(3) timber harvesting and forest management guidelines must be used in conjunction
with any timber harvesting or forest management activities conducted on the land during
the period in which the land is enrolled;

(4) the land must be enrolled for a minimum of eight years;

(5) there are no delinquent property taxes on the land; deleted text begin and
deleted text end

(6) claimants enrolling more than 1,920 acres in the sustainable forest incentive program
must allow year-round, nonmotorized access to fish and wildlife resources and motorized
access on established and maintained roads and trails, unless the road or trail is temporarily
closed for safety, natural resource, or road damage reasons on enrolled land except within
one-fourth mile of a permanent dwelling or during periods of high fire hazard as determined
by the commissioner of natural resourcesdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (7) the land is not classified as 2c managed forest land.
new text end

(b) Claimants required to allow access under paragraph (a), clause (6), do not by that
action:

(1) extend any assurance that the land is safe for any purpose;

(2) confer upon the person the legal status of an invitee or licensee to whom a duty of
care is owed; or

(3) assume responsibility for or incur liability for any injury to the person or property
caused by an act or omission of the person.

new text begin (c) A minimum of three acres must be excluded from enrolled land when the land is
improved with a structure that is not a minor, ancillary, or nonresidential structure. If land
does not meet the definition of forest land in section 290C.02, subdivision 6, because the
land is (1) enrolled in the reinvest in Minnesota program, (2) enrolled in a state or federal
conservation reserve or easement program under sections 103F.501 to 103F.531, (3) subject
to the Minnesota agricultural property tax under section 273.111, or (4) subject to agricultural
land preservation controls or restrictions as defined in section 40A.02 or the Metropolitan
Agricultural Preserves Act under chapter 473H, the entire parcel that contains the land is
not eligible to be enrolled in the program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin The amendment to paragraph (a), clause (2), is effective for
certifications filed after July 1, 2018. The amendment adding paragraph (a), clause (7), is
effective for certifications and applications due in 2017 and thereafter. The amendment
adding paragraph (c) is effective the day following final enactment.
new text end

Sec. 2.

new text begin [290C.051] VERIFICATION OF FOREST MANAGEMENT PLAN.
new text end

new text begin On request of the commissioner, the commissioner of natural resources must annually
provide verification that the claimant has a current forest management plan on file with the
Department of Natural Resources.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for certifications filed after July 1, 2018.
new text end

Sec. 3. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, sections 290C.02, subdivisions 5 and 9; and 290C.06, 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 the day following final enactment.
new text end

APPENDIX

Repealed Minnesota Statutes: 17-3547

290C.02 DEFINITIONS.

Subd. 5.

Current use value.

"Current use value" means the statewide average annual income per acre, multiplied by 90 percent and divided by the capitalization rate determined under subdivision 9. The statewide net annual income shall be a weighted average based on the most recent data as of July 1 of the computation year on stumpage prices and annual tree growth rates and acreage by cover type provided by the Department of Natural Resources and the United States Department of Agriculture Forest Service North Central Research Station.

Subd. 9.

Capitalization rate.

By July 1 of each year, the commissioner shall determine a statewide capitalization rate for use under this chapter. The rate shall be the average annual effective interest rate for St. Paul on new loans under the Farm Credit Bank system calculated under section 2032A(e)(7)(A) of the Internal Revenue Code.

290C.06 CALCULATION OF AVERAGE ESTIMATED MARKET VALUE; MANAGED FOREST LAND.

The commissioner shall annually calculate a statewide average estimated market value per acre for class 2c managed forest land under section 273.13, subdivision 23.