Minnesota Legislature
HF 1938
2nd Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/24/2023 12:42pm
2.40 2.41
2.42 2.43 2.44 2.45 2.46 2.47 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 7.32 7.33 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 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 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
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 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
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
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
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 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 18.33 18.34 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 19.33 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 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29
21.30 21.31
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 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 24.31 24.32 24.33 24.34
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 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12 26.13
26.14 26.15
26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26
27.27 27.28
27.29 27.30 27.31
27.32
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 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
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 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 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 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30 35.31 35.32 35.33 35.34 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 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 37.32 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30 38.31 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12
39.13 39.14
39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 39.33 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 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 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 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 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 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
47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 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 51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11
51.12 51.13
51.14 51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29 51.30 51.31 51.32 51.33 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 52.32 52.33 52.34 52.35 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25
53.26 53.27
53.28 53.29 53.30 53.31 53.32 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15
54.16 54.17
54.18 54.19 54.20 54.21
54.22 54.23
54.24 54.25 54.26 54.27 54.28 54.29 54.30 54.31 55.1 55.2 55.3 55.4
55.5
55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14 55.15 55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29 55.30 55.31 55.32 55.33
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 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 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
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 60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18
60.19 60.20 60.21
60.22 60.23 60.24 60.25 60.26 60.27 60.28
60.29 60.30 60.31
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 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
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 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29 64.30 64.31 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 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 66.32 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 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 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23 70.24 70.25
70.26 70.27
70.28 70.29 70.30 70.31 70.32 70.33 70.34 71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30 71.31 71.32 71.33 71.34 72.1 72.2 72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 72.32 72.33 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29 73.30 73.31 73.32 73.33 73.34 74.1 74.2 74.3 74.4
74.5 74.6
74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30 74.31 74.32 74.33 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11 75.12 75.13 75.14 75.15 75.16 75.17 75.18 75.19 75.20 75.21 75.22 75.23 75.24 75.25 75.26 75.27 75.28 75.29 75.30 75.31
75.32 75.33
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 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 78.1 78.2 78.3 78.4 78.5 78.6 78.7 78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26 78.27 78.28 78.29 78.30 78.31 78.32 79.1 79.2 79.3 79.4 79.5 79.6 79.7 79.8 79.9 79.10 79.11 79.12 79.13 79.14 79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25 79.26 79.27 79.28 79.29 79.30 79.31 79.32 79.33 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 81.31 81.32 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 83.31 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 85.33 85.34 85.35 85.36 86.1 86.2 86.3 86.4 86.5 86.6 86.7 86.8 86.9 86.10 86.11 86.12 86.13 86.14 86.15 86.16 86.17 86.18 86.19 86.20 86.21 86.22 86.23 86.24 86.25 86.26 86.27 86.28 86.29 86.30 86.31 86.32 87.1 87.2 87.3 87.4 87.5 87.6 87.7 87.8 87.9 87.10 87.11 87.12 87.13 87.14 87.15 87.16 87.17 87.18 87.19 87.20 87.21 87.22 87.23 87.24 87.25 87.26 87.27 87.28 87.29 87.30 87.31 87.32 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 89.34 89.35 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 90.34 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 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 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 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
99.1 99.2 99.3 99.4 99.5 99.6 99.7 99.8 99.9 99.10 99.11 99.12 99.13 99.14 99.15 99.16 99.17 99.18 99.19 99.20 99.21 99.22 99.23 99.24 99.25 99.26 99.27 99.28 99.29 99.30 99.31 99.32 100.1 100.2 100.3 100.4 100.5 100.6 100.7 100.8 100.9 100.10 100.11 100.12 100.13 100.14 100.15 100.16 100.17 100.18 100.19 100.20 100.21 100.22 100.23 100.24 100.25 100.26 100.27 100.28 100.29 100.30 100.31 100.32 101.1 101.2 101.3 101.4 101.5 101.6 101.7 101.8 101.9 101.10 101.11 101.12
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
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
103.30 103.31
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
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
105.14 105.15 105.16 105.17 105.18 105.19 105.20 105.23 105.22 105.21 105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 105.32 105.33 105.34 105.35 106.1 106.2 106.3 106.4 106.5 106.6 106.7 106.8 106.9 106.10 106.11 106.12 106.13 106.14 106.15 106.16 106.17 106.18 106.19 106.20 106.21 106.22 106.23 106.24 106.25 106.26 106.27 106.28 106.29 106.30 106.31 106.32 106.33 106.34 106.35 106.36 106.37
106.38 106.39
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
108.1 108.2 108.3 108.4 108.5 108.6 108.7 108.8 108.9 108.10 108.11 108.12 108.13 108.14 108.15 108.16 108.17 108.18 108.19 108.20 108.21 108.22 108.23 108.24 108.25 108.26 108.27 108.28 108.29 108.30 108.31 108.32 108.33 108.34
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
112.1 112.2
112.3 112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12 112.13 112.14 112.15 112.16 112.17 112.18 112.19 112.20 112.21 112.22 112.23 112.24 112.25 112.26 112.27 112.28 112.29 112.30 112.31 112.32 112.33 112.34 112.35
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
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
117.5 117.6 117.7 117.8 117.9 117.10 117.11 117.12 117.13 117.14 117.15 117.16 117.17 117.18 117.19 117.20 117.21 117.22 117.23 117.24 117.25 117.26 117.27 117.28 117.29 117.30 117.31 117.32 117.33 118.1 118.2 118.3 118.4 118.5 118.6 118.7 118.8 118.9 118.10 118.11 118.12 118.13 118.14 118.15 118.16 118.17 118.18 118.19 118.20 118.21 118.22 118.23 118.24 118.25 118.26 118.27 118.28 118.29 118.30 118.31 118.32 118.33 119.1 119.2 119.3 119.4 119.5 119.6 119.7 119.8 119.9 119.10 119.11 119.12 119.13 119.14 119.15
119.16
119.17 119.18 119.19 119.20 119.21 119.22 119.23 119.24 119.25 119.26 119.27 119.28 119.29 119.30 119.31 119.32 120.1 120.2 120.3 120.4 120.5 120.6 120.7 120.8 120.9 120.10 120.11 120.12 120.13 120.14 120.15 120.16 120.17 120.18 120.19 120.20 120.21 120.22 120.23 120.24 120.25 120.26 120.27 120.28 120.29 120.30 120.31 121.1 121.2 121.3 121.4 121.5 121.6 121.7 121.8 121.9 121.10 121.11 121.12 121.13 121.14 121.15 121.16 121.17 121.18 121.19 121.20 121.21 121.22 121.23 121.24 121.25 121.26 121.27 121.28 121.29 121.30 121.31 121.32 121.33 122.1 122.2 122.3 122.4 122.5 122.6 122.7 122.8 122.9 122.10
122.11 122.12
122.13 122.14 122.15 122.16 122.17 122.18 122.19 122.20 122.21
122.22 122.23
122.24 122.25 122.26 122.27 122.28 122.29 122.30 123.1 123.2 123.3 123.4 123.5 123.6 123.7 123.8 123.9 123.10 123.11 123.12 123.13 123.14 123.15 123.16 123.17 123.18 123.19 123.20 123.21 123.22 123.23 123.24 123.25 123.26 123.27 123.28 123.29 123.30 123.31 124.1 124.2 124.3 124.4 124.5 124.6 124.7 124.8 124.9 124.10 124.11 124.12 124.13 124.14 124.15 124.16 124.17 124.18 124.19 124.20 124.21 124.22 124.23 124.24 124.25 124.26 124.27 124.28 124.29 124.30 124.31 124.32 124.33 125.1 125.2 125.3 125.4 125.5 125.6 125.7 125.8 125.9 125.10 125.11 125.12 125.13 125.14 125.15 125.16 125.17 125.18 125.19 125.20 125.21 125.22 125.23 125.24 125.25 125.26 125.27 125.28 125.29 125.30 125.31 125.32 125.33 125.34 126.1 126.2 126.3 126.4 126.5 126.6 126.7 126.8 126.9 126.10 126.11 126.12 126.13 126.14 126.15 126.16 126.17 126.18 126.19 126.20 126.21 126.22 126.23 126.24 126.25 126.26 126.27 126.28 126.29 126.30 126.31 126.32 126.33 127.1 127.2 127.3 127.4 127.5 127.6 127.7 127.8 127.9 127.10 127.11 127.12 127.13 127.14 127.15 127.16 127.17 127.18 127.19 127.20 127.21 127.22 127.23 127.24 127.25 127.26 127.27 127.28 127.29
127.30 127.31
128.1 128.2 128.3 128.4 128.5 128.6 128.7 128.8 128.9 128.10 128.11 128.12
128.13 128.14
128.15 128.16 128.17 128.18 128.19 128.20 128.21 128.22 128.23 128.24 128.25 128.26 128.27 128.28 128.29
128.30
129.1 129.2 129.3 129.4 129.5 129.6 129.7 129.8 129.9 129.10 129.11 129.12 129.13 129.14 129.15
129.16 129.17
129.18 129.19 129.20 129.21 129.22 129.23 129.24
129.25 129.26
129.27 129.28 129.29 129.30 129.31 130.1 130.2 130.3 130.4
130.5
130.6 130.7 130.8 130.9 130.10 130.11 130.12 130.13 130.14
130.15
130.16 130.17 130.18
130.19 130.20
130.21 130.22
130.23 130.24 130.25 130.26 130.27
130.28 130.29 130.30
131.1 131.2 131.3 131.4 131.5 131.6 131.7
131.8 131.9 131.10
131.11 131.12 131.13 131.14 131.15 131.16 131.17
131.18 131.19 131.20
131.21 131.22 131.23 131.24 131.25 131.26 131.27 131.28 131.29 131.30 131.31 131.32 132.1 132.2 132.3 132.4 132.5 132.6 132.7 132.8 132.9 132.10 132.11 132.12 132.13 132.14 132.15 132.16 132.17
132.18 132.19 132.20
132.21 132.22 132.23 132.24 132.25 132.26 132.27 132.28 132.29 132.30 133.1 133.2 133.3 133.4 133.5 133.6 133.7 133.8 133.9 133.10 133.11 133.12 133.13 133.14 133.15 133.16 133.17 133.18 133.19 133.20 133.21 133.22 133.23 133.24 133.25 133.26 133.27 133.28 133.29 134.1 134.2 134.3 134.4 134.5 134.6 134.7 134.8 134.9 134.10 134.11 134.12 134.13 134.14 134.15 134.16 134.17 134.18 134.19 134.20 134.21 134.22 134.23 134.24 134.25 134.26 134.27 134.28 134.29 134.30 134.31 135.1 135.2 135.3 135.4 135.5
135.6 135.7 135.8
135.9 135.10 135.11 135.12 135.13 135.14 135.15 135.16 135.17 135.18 135.19 135.20 135.21 135.22 135.23 135.24 135.25 135.26 135.27 135.28 135.29 135.30 135.31 136.1 136.2 136.3 136.4 136.5 136.6 136.7 136.8 136.9 136.10 136.11 136.12
136.13 136.14
136.15 136.16 136.17 136.18 136.19 136.20 136.21 136.22 136.23 136.24 136.25 136.26 136.27 136.28 136.29 136.30 136.31 137.1 137.2 137.3 137.4 137.5 137.6 137.7 137.8 137.9 137.10 137.11 137.12 137.13 137.14 137.15 137.16 137.17 137.18 137.19 137.20 137.21 137.22 137.23 137.24 137.25 137.26 137.27 137.28 137.29 137.30 137.31 137.32 137.33
138.1 138.2 138.3
138.4 138.5 138.6 138.7 138.8 138.9 138.10 138.11 138.12 138.13 138.14 138.15 138.16 138.17 138.18 138.19 138.20 138.21 138.22 138.23 138.24 138.25 138.26 138.27 138.28 138.29 138.30 138.31 139.1 139.2 139.3 139.4 139.5 139.6 139.7 139.8 139.9 139.10 139.11 139.12 139.13 139.14 139.15
139.16 139.17 139.18
139.19 139.20 139.21 139.22 139.23 139.24 139.25 139.26 139.27 139.28 139.29 139.30 139.31 140.1 140.2 140.3 140.4 140.5 140.6 140.7 140.8 140.9 140.10 140.11 140.12 140.13 140.14 140.15 140.16 140.17
140.18 140.19 140.20
140.21 140.22 140.23 140.24 140.25 140.26 140.27 140.28 140.29 140.30 140.31 141.1 141.2 141.3 141.4 141.5 141.6
141.7 141.8
141.9 141.10 141.11 141.12 141.13 141.14 141.15 141.16 141.17 141.18 141.19 141.20 141.21 141.22 141.23 141.24 141.25 141.26 141.27 141.28 141.29 141.30 141.31 142.1 142.2 142.3
142.4 142.5
142.6 142.7 142.8 142.9 142.10 142.11 142.12 142.13 142.14 142.15 142.16 142.17 142.18 142.19 142.20 142.21 142.22 142.23 142.24 142.25 142.26 142.27 142.28 142.29 142.30 142.31 143.1 143.2 143.3 143.4 143.5 143.6 143.7 143.8 143.9 143.10 143.11 143.12 143.13
143.14 143.15
143.16 143.17 143.18 143.19 143.20 143.21 143.22 143.23 143.24 143.25 143.26 143.27 143.28
143.29 143.30
144.1 144.2 144.3 144.4 144.5 144.6 144.7 144.8 144.9 144.10 144.11 144.12 144.13
144.14 144.15
144.16 144.17 144.18 144.19 144.20 144.21 144.22 144.23 144.24 144.25 144.26 144.27 144.28 144.29 144.30 144.31
145.1 145.2
145.3 145.4 145.5 145.6 145.7 145.8 145.9 145.10 145.11 145.12 145.13 145.14 145.15 145.16 145.17 145.18
145.19 145.20
145.21 145.22 145.23 145.24 145.25 145.26 145.27 145.28 145.29 145.30 145.31 146.1 146.2
146.3 146.4
146.5 146.6 146.7 146.8 146.9 146.10 146.11 146.12 146.13 146.14 146.15 146.16
146.17 146.18
146.19 146.20 146.21 146.22 146.23 146.24 146.25 146.26 146.27 146.28 146.29 146.30
147.1 147.2
147.3 147.4 147.5 147.6 147.7 147.8 147.9 147.10 147.11 147.12 147.13 147.14
147.15 147.16
147.17 147.18 147.19 147.20 147.21 147.22 147.23 147.24 147.25 147.26 147.27 147.28 147.29 147.30
148.1 148.2 148.3
148.4 148.5 148.6 148.7 148.8 148.9 148.10 148.11 148.12 148.13 148.14 148.15
148.16 148.17
148.18 148.19 148.20 148.21 148.22 148.23 148.24 148.25 148.26 148.27 148.28 148.29 148.30
148.31 148.32
149.1 149.2 149.3 149.4 149.5 149.6 149.7 149.8 149.9 149.10 149.11 149.12 149.13 149.14 149.15 149.16
149.17 149.18 149.19
149.20 149.21 149.22 149.23 149.24 149.25 149.26 149.27 149.28 149.29 149.30 149.31 149.32 150.1 150.2 150.3 150.4 150.5 150.6 150.7 150.8
150.9 150.10
150.11 150.12 150.13 150.14 150.15 150.16 150.17 150.18 150.19 150.20 150.21 150.22 150.23 150.24 150.25 150.26 150.27 150.28 150.29 150.30 150.31 151.1 151.2 151.3 151.4
151.5 151.6
151.7 151.8 151.9 151.10 151.11 151.12 151.13 151.14 151.15 151.16 151.17 151.18
151.19 151.20
151.21 151.22
151.23 151.24 151.25 151.26 151.27 151.28 151.29 151.30
152.1
152.2 152.3 152.4 152.5 152.6 152.7 152.8 152.9 152.10 152.11 152.12 152.13 152.14 152.15 152.16
152.17 152.18
152.19 152.20 152.21 152.22 152.23
152.24
152.25 152.26 152.27 152.28 152.29 152.30 153.1 153.2 153.3 153.4 153.5 153.6 153.7 153.8 153.9 153.10 153.11 153.12 153.13 153.14 153.15 153.16 153.17 153.18 153.19 153.20
153.21 153.22
153.23 153.24 153.25 153.26 153.27 153.28 153.29 153.30 153.31 153.32 154.1 154.2 154.3 154.4 154.5 154.6 154.7 154.8 154.9 154.10 154.11 154.12 154.13 154.14 154.15 154.16 154.17 154.18 154.19 154.20 154.21 154.22 154.23 154.24 154.25 154.26 154.27 154.28 154.29 154.30 154.31 154.32 154.33 155.1 155.2 155.3 155.4 155.5 155.6 155.7 155.8 155.9 155.10 155.11 155.12
155.13 155.14
155.15 155.16 155.17 155.18
155.19
155.20 155.21 155.22 155.23 155.24 155.25 155.26 155.27 155.28 155.29 155.30 155.31 155.32 156.1 156.2 156.3 156.4 156.5 156.6
156.7
156.8 156.9 156.10 156.11 156.12 156.13 156.14 156.15 156.16 156.17 156.18 156.19 156.20 156.21 156.22 156.23 156.24 156.25 156.26 156.27 156.28 156.29 156.30 156.31 157.1 157.2 157.3
157.4
157.5 157.6 157.7 157.8 157.9 157.10 157.11 157.12 157.13
157.14
157.15 157.16 157.17 157.18 157.19 157.20 157.21 157.22 157.23 157.24 157.25 157.26 157.27 157.28 157.29 157.30
157.31
158.1 158.2 158.3 158.4 158.5 158.6 158.7 158.8
158.9 158.10
158.11 158.12 158.13 158.14 158.15 158.16 158.17 158.18 158.19 158.20 158.21 158.22 158.23 158.24 158.25 158.26 158.27 158.28 158.29 158.30 158.31 158.32 159.1 159.2 159.3 159.4 159.5 159.6 159.7 159.8 159.9 159.10 159.11 159.12 159.13 159.14 159.15 159.16 159.17 159.18 159.19 159.20 159.21 159.22 159.23 159.24 159.25 159.26 159.27 159.28 159.29 159.30 160.1 160.2 160.3 160.4 160.5 160.6 160.7 160.8 160.9 160.10 160.11
160.12 160.13
160.14 160.15
160.16 160.17 160.18 160.19 160.20 160.21 160.22 160.23 160.24
160.25 160.26
160.27 160.28 160.29 160.30 160.31 161.1 161.2 161.3 161.4 161.5 161.6 161.7
161.8 161.9
161.10 161.11 161.12 161.13 161.14 161.15 161.16 161.17 161.18 161.19 161.20 161.21 161.22 161.23 161.24 161.25 161.26 161.27 161.28 161.29 161.30 161.31 161.32 162.1 162.2 162.3 162.4 162.5 162.6 162.7 162.8 162.9 162.10 162.11 162.12 162.13 162.14 162.15 162.16 162.17 162.18 162.19 162.20 162.21 162.22 162.23 162.24 162.25 162.26 162.27 162.28 162.29 162.30 162.31 162.32 162.33 162.34 163.1 163.2 163.3 163.4 163.5 163.6 163.7 163.8 163.9 163.10 163.11 163.12 163.13 163.14 163.15 163.16 163.17 163.18 163.19 163.20 163.21 163.22 163.23 163.24 163.25 163.26 163.27 163.28 163.29 163.30 163.31 163.32 164.1 164.2 164.3 164.4 164.5 164.6 164.7 164.8 164.9 164.10 164.11 164.12 164.13 164.14 164.15 164.16 164.17 164.18 164.19 164.20 164.21 164.22 164.23 164.24 164.25 164.26 164.27 164.28 164.29 164.30 164.31 164.32 164.33 165.1 165.2 165.3 165.4 165.5 165.6 165.7 165.8 165.9 165.10 165.11 165.12 165.13 165.14 165.15 165.16 165.17 165.18 165.19 165.20 165.21 165.22 165.23 165.24 165.25 165.26 165.27 165.28 165.29 165.30 165.31 165.32 166.1 166.2 166.3 166.4 166.5 166.6 166.7 166.8 166.9 166.10 166.11 166.12 166.13 166.14 166.15 166.16 166.17 166.18 166.19 166.20 166.21
166.22 166.23
166.24 166.25 166.26 166.27 166.28 166.29
166.30 166.31
167.1 167.2 167.3 167.4 167.5 167.6 167.7 167.8 167.9 167.10 167.11 167.12 167.13 167.14 167.15 167.16 167.17 167.18 167.19 167.20 167.21 167.22 167.23 167.24 167.25 167.26 167.27 167.28 167.29 167.30 167.31 167.32 168.1 168.2 168.3 168.4 168.5 168.6 168.7 168.8 168.9 168.10 168.11
168.12 168.13
168.14 168.15 168.16 168.17 168.18 168.19 168.20 168.21 168.22 168.23 168.24 168.25 168.26 168.27 168.28 168.29 168.30 169.1 169.2 169.3 169.4 169.5 169.6 169.7 169.8 169.9 169.10 169.11 169.12 169.13 169.14 169.15 169.16 169.17 169.18 169.19 169.20 169.21 169.22 169.23 169.24 169.25 169.26 169.27 169.28 169.29 169.30
170.1 170.2
170.3 170.4 170.5 170.6 170.7 170.8 170.9 170.10 170.11 170.12 170.13 170.14 170.15 170.16 170.17 170.18 170.19 170.20 170.21 170.22 170.23 170.24 170.25 170.26 170.27 170.28 170.29 171.1 171.2 171.3 171.4 171.5 171.6 171.7 171.8 171.9 171.10 171.11 171.12 171.13 171.14 171.15 171.16 171.17 171.18 171.19 171.20 171.21 171.22 171.23 171.24 171.25 171.26 171.27 171.28 171.29 171.30 172.1 172.2 172.3 172.4 172.5 172.6 172.7 172.8 172.9 172.10 172.11 172.12 172.13
172.14 172.15
172.16 172.17 172.18 172.19 172.20 172.21 172.22 172.23 172.24 172.25 172.26 172.27 172.28 172.29
172.30 172.31
173.1 173.2 173.3 173.4 173.5
173.6 173.7
173.8 173.9 173.10 173.11 173.12
173.13 173.14
173.15 173.16 173.17 173.18 173.19 173.20 173.21
173.22 173.23
173.24 173.25 173.26 173.27 173.28 173.29 173.30 173.31 174.1 174.2 174.3 174.4 174.5 174.6
174.7 174.8
174.9 174.10 174.11 174.12 174.13 174.14 174.15 174.16 174.17 174.18 174.19 174.20 174.21 174.22 174.23 174.24 174.25 174.26 174.27 174.28 174.29 174.30 174.31 174.32 174.33 174.34 175.1 175.2 175.3 175.4 175.5 175.6 175.7
175.8 175.9
175.10 175.11 175.12 175.13 175.14 175.15 175.16 175.17 175.18 175.19 175.20 175.21 175.22 175.23 175.24 175.25 175.26 175.27 175.28 175.29 175.30
175.31 175.32
176.1 176.2 176.3 176.4 176.5 176.6 176.7 176.8 176.9 176.10 176.11 176.12 176.13 176.14 176.15 176.16 176.17 176.18 176.19 176.20 176.21 176.22 176.23 176.24 176.25 176.26 176.27 176.28 176.29 176.30 176.31 177.1 177.2 177.3 177.4 177.5 177.6 177.7 177.8 177.9 177.10 177.11 177.12 177.13 177.14 177.15 177.16 177.17 177.18 177.19 177.20 177.22 177.21 177.23 177.24 177.25 177.26 177.27 177.28 177.29 177.30 177.31 177.32 177.33 177.34 177.35 177.36 178.1 178.2 178.3 178.4 178.5 178.6 178.7 178.8 178.9 178.10 178.11 178.12 178.13 178.14 178.15 178.16 178.17 178.18 178.19 178.20 178.21 178.22 178.23 178.24 178.25 178.26 178.27 178.28 178.29 178.30 178.31 178.32 178.33 178.34 178.35 179.1 179.2 179.3 179.4 179.5 179.6 179.7 179.8 179.9 179.10 179.11 179.12 179.13 179.14 179.15 179.16 179.17 179.18 179.19 179.20 179.21 179.22 179.23 179.24 179.25 179.26 179.27 179.28 179.29 179.30 179.31 179.32 179.33 180.1 180.2 180.3 180.4 180.5 180.6 180.7 180.8 180.9 180.10 180.11 180.12 180.13 180.14 180.15 180.16 180.17 180.18 180.19 180.20 180.21 180.22 180.23 180.24 180.25 180.26 180.27 180.28 180.29 180.30 180.31 180.32 180.33 180.34 181.1 181.2 181.3 181.4 181.5 181.6 181.7 181.8 181.9
181.10 181.11
181.12 181.13 181.14 181.15
181.16 181.17
181.18 181.19 181.20 181.21 181.22 181.23 181.24 181.25 181.26 181.27 181.28 181.29 182.1 182.2 182.3 182.4 182.5 182.6 182.7 182.8 182.9 182.10 182.11 182.12 182.13 182.14 182.15 182.16 182.17 182.18 182.19 182.20 182.21 182.22 182.23 182.24 182.25 182.26 182.27 182.28 182.29 182.30 182.31 182.32 183.1 183.2 183.3 183.4 183.5 183.6 183.7 183.8 183.9 183.10 183.11 183.12 183.13 183.14 183.15 183.16 183.17 183.18 183.19 183.20 183.21 183.22 183.23 183.24 183.25 183.26 183.27 183.28 183.29 183.30 184.1 184.2 184.3 184.4 184.5 184.6 184.7 184.8 184.9
184.10 184.11
184.12 184.13 184.14 184.15 184.16 184.17 184.18 184.19 184.20 184.21 184.22 184.23
184.24 184.25
184.26 184.27 184.28 184.29 184.30 184.31 185.1 185.2 185.3 185.4 185.5 185.6 185.7 185.8 185.9 185.10 185.11 185.12 185.13 185.14 185.15 185.16 185.17 185.18 185.19 185.20 185.21 185.22 185.23 185.24 185.25 185.26 185.27 185.28 185.29 185.30 185.31 185.32 185.33 185.34 186.1 186.2 186.3 186.4 186.5 186.6
186.7 186.8
186.9 186.10 186.11 186.12 186.13 186.14 186.15 186.16 186.17 186.18 186.19 186.20 186.21 186.22 186.23 186.24 186.25 186.26 186.27
186.28 186.29
186.30 186.31 186.32 187.1 187.2 187.3 187.4 187.5 187.6 187.7 187.8 187.9 187.10 187.11 187.12 187.13 187.14 187.15 187.16 187.17 187.18 187.19 187.20 187.21 187.22 187.23 187.24 187.25 187.26 187.27 187.28
187.29 187.30
187.31 187.32 187.33 187.34 188.1 188.2 188.3
188.4 188.5
188.6 188.7 188.8 188.9 188.10 188.11 188.12 188.13 188.14
188.15 188.16
188.17 188.18 188.19 188.20 188.21 188.22 188.23 188.24 188.25 188.26 188.27 188.28 188.29 188.30 189.1 189.2 189.3 189.4 189.5 189.6 189.7 189.8 189.9 189.10
189.11
189.12 189.13 189.14 189.15 189.16 189.17 189.18
189.19 189.20
189.21 189.22 189.23 189.24 189.25 189.26 189.27 189.28 189.29 189.30 190.1 190.2 190.3 190.4 190.5 190.6
190.7 190.8
190.9 190.10 190.11 190.12 190.13 190.14
190.15 190.16
190.17 190.18 190.19 190.20 190.21 190.22 190.23 190.24 190.25 190.26 190.27
190.28 190.29
191.1 191.2 191.3 191.4 191.5 191.6 191.7 191.8 191.9 191.10 191.11 191.12 191.13 191.14 191.15 191.16 191.17 191.18
191.19 191.20
191.21 191.22 191.23 191.24 191.25 191.26 191.27 191.28 191.29 191.30
191.31 191.32
192.1 192.2 192.3 192.4 192.5
192.6 192.7
192.8 192.9 192.10 192.11 192.12 192.13 192.14 192.15 192.16 192.17 192.18 192.19 192.20 192.21 192.22 192.23 192.24 192.25 192.26 192.27 192.28 192.29 192.30 192.31 193.1 193.2 193.3
193.4 193.5
193.6 193.7 193.8 193.9 193.10 193.11 193.12 193.13 193.14 193.15 193.16 193.17 193.18 193.19 193.20 193.21 193.22 193.23 193.24 193.25 193.26 193.27 193.28 193.29 193.30 193.31 193.32 193.33 193.34 194.1 194.2 194.3 194.4 194.5 194.6 194.7 194.8 194.9 194.10 194.11 194.12 194.13 194.14
194.15 194.16
194.17 194.18 194.19 194.20 194.21 194.22 194.23 194.24 194.25 194.26 194.27 194.28 194.29 194.30 194.31 194.32 195.1 195.2 195.3 195.4 195.5 195.6 195.7 195.8 195.9 195.10 195.11 195.12 195.13 195.14 195.15 195.16 195.17 195.18 195.19 195.20 195.21 195.22 195.23 195.24 195.25 195.26 195.27 195.28 195.29 195.30 195.31 196.1 196.2 196.3
196.4
196.5 196.6 196.7 196.8 196.9 196.10 196.11 196.12 196.13 196.14 196.15 196.16 196.17 196.18 196.19 196.20 196.21 196.22 196.23 196.24 196.25 196.26 196.27 196.28 196.29 196.30 196.31
197.1 197.2
197.3 197.4 197.5 197.6 197.7 197.8 197.9 197.10 197.11 197.12 197.13 197.14 197.15 197.16 197.17 197.18 197.19 197.20 197.21 197.22 197.23
197.24 197.25 197.26
197.27 197.28
198.1 198.2
198.3 198.4 198.5 198.6 198.7 198.8 198.9 198.10 198.11 198.12 198.13 198.14 198.15 198.16 198.17 198.18 198.19 198.20 198.21 198.22 198.23 198.24 198.25 198.26 198.27 198.28 198.29 198.30 199.1 199.2 199.3 199.4 199.5 199.6 199.7 199.8 199.9 199.10 199.11
199.12 199.13
199.14 199.15 199.16 199.17 199.18 199.19 199.20 199.21 199.22 199.23 199.24
199.25
199.26 199.27 199.28 199.29 199.30 200.1 200.2 200.3 200.4 200.5 200.6 200.7 200.8 200.9 200.10 200.11 200.12 200.13 200.14 200.15 200.16 200.17 200.18 200.19 200.20 200.21 200.22 200.23 200.24 200.25 200.26 200.27 200.28 200.29 200.30 200.31 201.1 201.2 201.3 201.4 201.5 201.6 201.7 201.8 201.9 201.10 201.11 201.12 201.13 201.14 201.15 201.16 201.17 201.18 201.19 201.20 201.21 201.22 201.23 201.24 201.25 201.26 201.27 201.28 201.29 202.1 202.2 202.3 202.4 202.5 202.6 202.7 202.8 202.9 202.10 202.11 202.12 202.13 202.14 202.15 202.16 202.17 202.18 202.19
202.20
202.21 202.22 202.23 202.24 202.25 202.26 202.27 202.28 202.29 202.30 203.1 203.2 203.3 203.4 203.5 203.6 203.7 203.8 203.9 203.10
203.11 203.12
203.13 203.14 203.15 203.16 203.17 203.18 203.19 203.20 203.21 203.22 203.23 203.24 203.25 203.26 203.27 203.28 203.29 203.30 203.31 203.32 203.33 204.1 204.2
204.3 204.4
204.5 204.6 204.7 204.8 204.9 204.10 204.11 204.12 204.13 204.14 204.15 204.16 204.17 204.18 204.19 204.20 204.21 204.22 204.23 204.24
204.25 204.26 204.27 204.28 204.29 204.30 204.31 205.1 205.2 205.3 205.4 205.5 205.6 205.7 205.8 205.9 205.10 205.11 205.12 205.13 205.14 205.15 205.16 205.17 205.18 205.19 205.20 205.21 205.22 205.23 205.24 205.25 205.26 205.27 205.28 205.29 205.30 205.31 205.32 205.33 206.1 206.2 206.3 206.4 206.5 206.6 206.7 206.8 206.9 206.10 206.11 206.12 206.13 206.14 206.15 206.16 206.17 206.18 206.19 206.20 206.21 206.22 206.23 206.24 206.25 206.26 206.27
206.28 206.29 206.30
207.1 207.2 207.3 207.4 207.5 207.6 207.7 207.8 207.9 207.10 207.11 207.12 207.13 207.14 207.15 207.16 207.17 207.18 207.19 207.20 207.21 207.22 207.23 207.24 207.25 207.26 207.27 207.28 207.29 207.30 207.31 207.32 208.1 208.2 208.3
208.4 208.5
208.6 208.7 208.8 208.9 208.10 208.11 208.12 208.13 208.14 208.15 208.16 208.17 208.18 208.19 208.20 208.21 208.22 208.23 208.24 208.25 208.26 208.27 208.28 208.29 208.30 208.31 208.32 209.1 209.2 209.3 209.4 209.5 209.6 209.7 209.8 209.9 209.10 209.11 209.12 209.13 209.14 209.15 209.16 209.17 209.18 209.19 209.20 209.21 209.22 209.23 209.24 209.25 209.26 209.27 209.28 209.29 209.30 209.31 209.32 209.33 210.1 210.2 210.3 210.4 210.5 210.6 210.7 210.8 210.9 210.10 210.11 210.12 210.13 210.14 210.15 210.16 210.17 210.18 210.19 210.20 210.21 210.22 210.23 210.24 210.25 210.26 210.27 210.28 210.29 210.30 210.31 210.32 211.1 211.2 211.3 211.4 211.5 211.6 211.7 211.8 211.9 211.10 211.11 211.12 211.13 211.14 211.15 211.16 211.17 211.18 211.19 211.20 211.21 211.22
211.23 211.24 211.25 211.26 211.27
211.28 211.29 211.30 211.31 211.32 211.33 212.1 212.2 212.3 212.4 212.5 212.6 212.7 212.8 212.9 212.10 212.11 212.12 212.13 212.14 212.15 212.16 212.17 212.18 212.19 212.20 212.21 212.22 212.23 212.24 212.25 212.26 212.27 212.28 212.29 212.30 212.31 212.32 213.1 213.2 213.3 213.4 213.5 213.6 213.7 213.8 213.9 213.10 213.11 213.12 213.13 213.14 213.15 213.16 213.17 213.18 213.19 213.20 213.21 213.22 213.23 213.24 213.25 213.26 213.27 213.28 213.29 213.30 213.31 213.32 213.33 214.1 214.2 214.3 214.4 214.5 214.6 214.7 214.8
214.9 214.10 214.11 214.12
214.13 214.14 214.15 214.16 214.17 214.18 214.19 214.20
214.21
214.22 214.23 214.24 214.25 214.26 214.27 214.28 214.29 214.30 214.31 214.32 214.33 215.1 215.2 215.3 215.4 215.5 215.6 215.7 215.8 215.9 215.10 215.11 215.12 215.13 215.14 215.15 215.16 215.17 215.18 215.19 215.20 215.21 215.22 215.23 215.24 215.25 215.26 215.27
215.28
215.29 215.30 215.31 215.32 215.33 216.1 216.2 216.3
216.4
216.5 216.6 216.7 216.8 216.9 216.10 216.11 216.12 216.13 216.14 216.15 216.16 216.17 216.18 216.19 216.20 216.21 216.22 216.23 216.24 216.25 216.26
216.27 216.28 216.29
217.1 217.2 217.3 217.4 217.5 217.6 217.7 217.8 217.9 217.10 217.11 217.12 217.13
217.14 217.15 217.16 217.17
217.18 217.19 217.20 217.21 217.22 217.23 217.24 217.25 217.26 217.27 217.28 217.29
217.30 217.31 217.32
218.1 218.2 218.3 218.4 218.5 218.6 218.7 218.8 218.9 218.10 218.11 218.12 218.13 218.14 218.15 218.16 218.17 218.18 218.19 218.20 218.21 218.22 218.23 218.24 218.25 218.26 218.27 218.28 218.29 218.30 218.31 218.32 219.1 219.2 219.3 219.4 219.5 219.6 219.7 219.8 219.9 219.10 219.11 219.12 219.13 219.14
219.15 219.16 219.17
219.18 219.19 219.20 219.21 219.22 219.23 219.24 219.25 219.26
219.27 219.28 219.29
220.1 220.2 220.3 220.4 220.5 220.6 220.7 220.8 220.9 220.10 220.11 220.12 220.13 220.14 220.15 220.16 220.17 220.18
220.19 220.20 220.21
220.22 220.23 220.24 220.25 220.26
220.27 220.28 220.29
221.1 221.2 221.3 221.4 221.5 221.6 221.7 221.8 221.9 221.10 221.11 221.12 221.13 221.14 221.15 221.16 221.17 221.18 221.19 221.20 221.21 221.22 221.23
221.24 221.25 221.26
221.27 221.28 221.29 221.30 221.31 221.32 221.33 221.34 222.1 222.2 222.3 222.4 222.5 222.6 222.7 222.8 222.9 222.10 222.11 222.12 222.13 222.14
222.15 222.16 222.17
222.18 222.19 222.20
222.21 222.22 222.23
222.24 222.25 222.26
222.27 222.28 222.29
223.1 223.2 223.3 223.4 223.5 223.6 223.7 223.8 223.9 223.10 223.11 223.12 223.13 223.14 223.15 223.16 223.17 223.18 223.19 223.20 223.21 223.22 223.23
223.24 223.25 223.26
223.27 223.28 223.29 223.30 223.31 223.32 224.1 224.2 224.3 224.4 224.5 224.6 224.7 224.8 224.9 224.10 224.11 224.12 224.13 224.14 224.15 224.16 224.17 224.18 224.19 224.20 224.21 224.22 224.23 224.24 224.25 224.26 224.27 224.28 224.29 224.30 224.31 224.32 225.1 225.2 225.3 225.4 225.5 225.6 225.7 225.8 225.9 225.10 225.11 225.12 225.13 225.14 225.15 225.16 225.17 225.18 225.19
225.20 225.21 225.22
225.23 225.24 225.25
225.26 225.27 225.28
226.1 226.2 226.3 226.4 226.5 226.6 226.7 226.8 226.9 226.10 226.11 226.12 226.13 226.14 226.15 226.16
226.17 226.18 226.19
226.20 226.21 226.22 226.23 226.24 226.25 226.26 226.27 226.28 226.29
226.30 226.31 226.32 227.1 227.2
227.3 227.4
227.5 227.6 227.7 227.8 227.9 227.10 227.11 227.12 227.13 227.14 227.15 227.16 227.17 227.18 227.19 227.20 227.21 227.22 227.23 227.24 227.25 227.26 227.27 227.28 227.29 227.30 227.31 227.32 227.33 228.1 228.2 228.3 228.4 228.5 228.6 228.7 228.8 228.9
228.10 228.11 228.12
228.13 228.14 228.15 228.16 228.17 228.18 228.19 228.20 228.21 228.22 228.23 228.24 228.25 228.26 228.27 228.28 228.29 228.30 228.31 228.32 228.33 229.1 229.2 229.3
229.4 229.5 229.6
229.7 229.8 229.9 229.10 229.11 229.12 229.13 229.14 229.15 229.16 229.17 229.18 229.19 229.20 229.21 229.22 229.23 229.24 229.25 229.26
229.27
230.1 230.2
230.3 230.4 230.5 230.6
230.7 230.8 230.9 230.10 230.11 230.12 230.13 230.14 230.15 230.16 230.17 230.18 230.19 230.20 230.21 230.22 230.23 230.24 230.25 230.26 230.27 230.28 230.29 230.30 230.31 230.32 230.33 231.1 231.2 231.3 231.4 231.5 231.6 231.7 231.8
231.9 231.10 231.11 231.12 231.13 231.14 231.15 231.16 231.17 231.18 231.19 231.20 231.21 231.22 231.23 231.24
231.25 231.26 231.27 231.28 231.29 231.30 231.31 231.32 231.33 232.1 232.2 232.3 232.4 232.5 232.6 232.7
232.8 232.9 232.10 232.11 232.12 232.13 232.14 232.15 232.16 232.17 232.18 232.19 232.20 232.21 232.22 232.23 232.24 232.25 232.26 232.27 232.28 232.29 232.30 232.31
233.1 233.2 233.3 233.4 233.5 233.6 233.7 233.8 233.9 233.10 233.11 233.12 233.13 233.14 233.15 233.16 233.17 233.18 233.19 233.20 233.21 233.22 233.23 233.24 233.25 233.26 233.27 233.28
234.1 234.2 234.3 234.4 234.5 234.6 234.7 234.8 234.9 234.10 234.11 234.12 234.13 234.14 234.15 234.16 234.17 234.18 234.19 234.20 234.21 234.22 234.23 234.24 234.25 234.26 234.27 234.28
234.29 234.30 234.31 234.32 235.1 235.2 235.3 235.4 235.5 235.6 235.7 235.8 235.9 235.10 235.11 235.12 235.13 235.14 235.15 235.16 235.17 235.18 235.19 235.20
235.21 235.22 235.23 235.24 235.25 235.26
235.27 235.28 235.29 235.30 235.31 235.32 235.33 235.34 236.1 236.2 236.3
236.4 236.5 236.6 236.7 236.8 236.9
236.10 236.11 236.12 236.13 236.14
236.15 236.16 236.17 236.18 236.19 236.20 236.21 236.22 236.23 236.24 236.25 236.26 236.27 236.28 236.29 236.30 237.1 237.2 237.3 237.4 237.5 237.6 237.7 237.8 237.9 237.10
237.11 237.12 237.13 237.14 237.15 237.16 237.17 237.18 237.19 237.20 237.21 237.22 237.23 237.24
237.25 237.26
237.27 237.28 237.29 237.30 237.31 238.1 238.2 238.3 238.4
238.5 238.6 238.7 238.8 238.9 238.10 238.11 238.12 238.13 238.14 238.15 238.16 238.17 238.18 238.19 238.20 238.21 238.22 238.23 238.24 238.25 238.26 238.27 238.28 238.29 238.30 238.31 238.32 239.1 239.2 239.3 239.4 239.5 239.6 239.7 239.8 239.9 239.10 239.11 239.12 239.13 239.14 239.15 239.16 239.17 239.18 239.19 239.20 239.21 239.22 239.23 239.24 239.25 239.26 239.27 239.28 239.29 239.30 239.31 239.32 239.33 239.34 240.1 240.2 240.3 240.4 240.5 240.6 240.7 240.8 240.9 240.10 240.11 240.12 240.13 240.14 240.15 240.16 240.17 240.18 240.19 240.20
240.21 240.22 240.23 240.24 240.25 240.26 240.27 240.28 240.29 240.30 240.31 240.32 241.1 241.2 241.3 241.4 241.5 241.6 241.7 241.8 241.9 241.10 241.11 241.12 241.13 241.14 241.15 241.16 241.17 241.18 241.19 241.20 241.21 241.22 241.23 241.24 241.25 241.26 241.27 241.28 241.29 241.30 241.31
242.1 242.2 242.3 242.4 242.5 242.6 242.7 242.8 242.9 242.10 242.11 242.12 242.13 242.14 242.15 242.16 242.17 242.18 242.19 242.20 242.21 242.22 242.23 242.24 242.25 242.26 242.27 242.28 242.29 242.30 242.31 242.32 242.33 243.1 243.2 243.3 243.4 243.5 243.6 243.7 243.8 243.9 243.10 243.11 243.12 243.13 243.14 243.15 243.16 243.17 243.18 243.19 243.20 243.21 243.22 243.23 243.24 243.25 243.26 243.27 243.28 243.29
243.30 243.31 243.32 244.1 244.2 244.3 244.4 244.5 244.6 244.7 244.8 244.9 244.10
244.11 244.12 244.13 244.14 244.15 244.16 244.17 244.18 244.19 244.20 244.21 244.22
244.23 244.24 244.25 244.26 244.27 244.28 244.29 244.30 244.31 244.32 245.1 245.2 245.3 245.4 245.5 245.6 245.7 245.8 245.9 245.10 245.11 245.12 245.13 245.14 245.15 245.16 245.17 245.18 245.19 245.20 245.21 245.22 245.23 245.24
245.25 245.26
245.27 245.28 245.29 245.30 245.31 245.32 246.1 246.2 246.3 246.4 246.5 246.6 246.7 246.8 246.9 246.10 246.11 246.12
246.13
246.14 246.15 246.16 246.17 246.18 246.19 246.20 246.21 246.22 246.23 246.24 246.25 246.26 246.27
246.28
246.29 246.30 246.31 246.32 247.1 247.2 247.3 247.4 247.5 247.6 247.7 247.8 247.9 247.10 247.11 247.12 247.13 247.14 247.15 247.16 247.17 247.18 247.19
247.20 247.21 247.22 247.23 247.24 247.25 247.26 247.27 247.28 247.29
247.30
248.1 248.2 248.3 248.4 248.5 248.6 248.7 248.8 248.9 248.10 248.11 248.12 248.13 248.14 248.15 248.16 248.17 248.18 248.19 248.20 248.21 248.22 248.23 248.24 248.25 248.26 248.27 248.28 248.29 248.30 248.31 248.32 248.33 248.34 249.1 249.2 249.3 249.4 249.5 249.6 249.7 249.8 249.9 249.10 249.11
249.12 249.13
249.14 249.15 249.16 249.17 249.18 249.19 249.20 249.21 249.22 249.23 249.24 249.25 249.26 249.27 249.28 249.29 249.30 249.31 249.32 249.33 250.1 250.2 250.3 250.4 250.5 250.6 250.7 250.8 250.9 250.10 250.11 250.12 250.13 250.14 250.15 250.16 250.17 250.18 250.19 250.20 250.21 250.22 250.23 250.24
250.25 250.26 250.27 250.28 250.29 250.30 250.31 250.32 250.33 251.1 251.2 251.3 251.4
251.5 251.6
251.7 251.8 251.9 251.10 251.11 251.12 251.13 251.14 251.15
251.16
251.17 251.18 251.19 251.20 251.21 251.22 251.23 251.24 251.25 251.26
251.27 251.28
251.29 251.30 251.31 252.1 252.2 252.3 252.4 252.5 252.6 252.7 252.8 252.9 252.10 252.11 252.12 252.13 252.14 252.15 252.16 252.17 252.18 252.19 252.20 252.21
252.22 252.23
252.24 252.25 252.26 252.27 252.28 252.29 252.30 252.31 252.32 252.33 252.34 252.35 252.36 253.1 253.2 253.3 253.4
253.5
253.6 253.7 253.8 253.9 253.10 253.11 253.12 253.13 253.14 253.15 253.16 253.17
253.18
253.19 253.20 253.21 253.22 253.23
253.24
253.25 253.26 253.27 253.28 253.29 253.30 254.1 254.2 254.3 254.4 254.5 254.6 254.7 254.8 254.9 254.10 254.11 254.12 254.13 254.14 254.15 254.16 254.17 254.18 254.19 254.20
254.21
254.22 254.23 254.24 254.25 254.26 254.27 254.28 254.29 254.30 255.1 255.2 255.3 255.4 255.5 255.6 255.7 255.8 255.9 255.10 255.11 255.12 255.13
255.14
255.15 255.16 255.17 255.18 255.19 255.20 255.21
255.22
255.23 255.24 255.25 255.26 255.27 255.28 255.29 255.30 256.1 256.2 256.3 256.4 256.5 256.6 256.7 256.8 256.9 256.10 256.11 256.12 256.13 256.14 256.15 256.16 256.17 256.18 256.19 256.20 256.21 256.22 256.23
256.24
256.25 256.26 256.27 256.28 256.29 256.30 256.31 257.1 257.2 257.3 257.4 257.5 257.6 257.7 257.8 257.9 257.10 257.11 257.12 257.13 257.14 257.15 257.16 257.17 257.18 257.19 257.20 257.21 257.22 257.23 257.24 257.25 257.26 257.27 257.28 257.29 257.30 257.31 258.1 258.2 258.3 258.4 258.5 258.6 258.7 258.8 258.9 258.10 258.11 258.12 258.13 258.14 258.15 258.16 258.17 258.18 258.19 258.20 258.21 258.22 258.23 258.24 258.25 258.26 258.27 258.28 258.29 258.30 258.31 258.32 258.33
258.34
259.1 259.2 259.3 259.4 259.5 259.6 259.7 259.8 259.9 259.10 259.11 259.12 259.13 259.14 259.15 259.16 259.17 259.18 259.19 259.20 259.21 259.22 259.23 259.24 259.25 259.26 259.27 259.28 259.29 259.30 259.31 259.32
260.1
260.2 260.3 260.4 260.5 260.6 260.7 260.8 260.9 260.10 260.11 260.12 260.13 260.14 260.15 260.16 260.17 260.18 260.19 260.20 260.21 260.22 260.23 260.24 260.25 260.26 260.27 260.28 260.29 260.30 260.31 260.32 261.1 261.2
261.3
261.4 261.5 261.6 261.7 261.8 261.9
261.10
261.11 261.12 261.13 261.14 261.15 261.16 261.17 261.18 261.19 261.20 261.21 261.22 261.23 261.24 261.25
261.26
261.27 261.28 261.29 261.30
261.31
262.1 262.2 262.3 262.4 262.5 262.6 262.7 262.8 262.9 262.10 262.11 262.12 262.13 262.14 262.15
262.16
262.17 262.18 262.19 262.20 262.21 262.22 262.23 262.24 262.25 262.26 262.27 262.28 262.29 262.30 262.31 262.32 262.33 263.1 263.2 263.3 263.4 263.5 263.6 263.7 263.8 263.9 263.10 263.11 263.12 263.13 263.14 263.15
263.16
263.17 263.18 263.19 263.20 263.21 263.22
263.23
263.24 263.25 263.26 263.27 263.28 263.29 263.30 263.31 264.1 264.2 264.3 264.4 264.5 264.6 264.7 264.8 264.9 264.10 264.11 264.12 264.13 264.14 264.15 264.16 264.17 264.18 264.19 264.20 264.21 264.22 264.23 264.24 264.25 264.26 264.27 264.28 264.29 264.30 264.31 264.32 265.1 265.2 265.3 265.4 265.5 265.6 265.7 265.8 265.9 265.10 265.11 265.12 265.13 265.14 265.15 265.16 265.17 265.18 265.19
265.20
265.21 265.22 265.23 265.24 265.25 265.26 265.27 265.28 265.29 265.30 265.31 265.32 266.1 266.2 266.3 266.4 266.5 266.6 266.7 266.8 266.9 266.10 266.11 266.12 266.13 266.14
266.15
266.16 266.17 266.18 266.19 266.20 266.21 266.22 266.23
266.24 266.25 266.26
266.27 266.28 266.29 266.30 266.31 267.1 267.2 267.3 267.4 267.5 267.6 267.7 267.8 267.9 267.10 267.11 267.12 267.13 267.14 267.15 267.16 267.17 267.18 267.19 267.20 267.21 267.22 267.23 267.24 267.25 267.26 267.27 267.28
267.29 267.30 267.31 268.1 268.2 268.3
268.4
268.5 268.6 268.7 268.8 268.9 268.10 268.11
268.12 268.13 268.14 268.15
268.16 268.17 268.18 268.19 268.20 268.21
268.22
268.23 268.24 268.25 268.26 268.27 268.28
268.29
269.1 269.2 269.3 269.4 269.5 269.6 269.7 269.8 269.9
269.10
269.11 269.12 269.13 269.14
269.15
269.16 269.17
269.18
269.19 269.20 269.21
269.22 269.23 269.24 269.25 269.26 269.27
269.28
270.1 270.2 270.3 270.4 270.5 270.6 270.7 270.8 270.9 270.10 270.11 270.12 270.13 270.14 270.15 270.16 270.17 270.18 270.19 270.20 270.21 270.22 270.23 270.24 270.25 270.26 270.27 270.28 270.29 270.30 270.31 270.32 270.33 271.1 271.2 271.3 271.4 271.5 271.6 271.7 271.8 271.9 271.10 271.11 271.12 271.13 271.14 271.15 271.16 271.17 271.18 271.19 271.20 271.21 271.22 271.23 271.24 271.25 271.26 271.27 271.28 271.29 271.30 271.31 271.32 272.1 272.2 272.3 272.4 272.5 272.6 272.7 272.8 272.9 272.10 272.11 272.12 272.13 272.14 272.15 272.16 272.17 272.18 272.19 272.20 272.21 272.22 272.23 272.24 272.25 272.26 272.27 272.28 272.29
272.30 272.31
273.1 273.2 273.3 273.4 273.5 273.6 273.7 273.8 273.9 273.10 273.11 273.12 273.13 273.14 273.15 273.16 273.17 273.18 273.19 273.20 273.21 273.22 273.23 273.24 273.25 273.26 273.27 273.28 273.29 273.30 273.31 274.1 274.2 274.3 274.4 274.5 274.6 274.7 274.8 274.9 274.10 274.11 274.12 274.13 274.14 274.15 274.16
274.17 274.18 274.19 274.20 274.21 274.22
274.23 274.24 274.25 274.26 274.27 274.28 274.29 274.30 274.31
274.32
275.1 275.2 275.3 275.4 275.5 275.6 275.7 275.8 275.9 275.10 275.11 275.12 275.13 275.14 275.15 275.16 275.17 275.18 275.19 275.20 275.21 275.22 275.23 275.24 275.25 275.26 275.27 275.28 275.29 275.30 275.31 275.32
275.33 275.34
276.1 276.2 276.3
276.4 276.5 276.6 276.7 276.8 276.9 276.10 276.11 276.12 276.13
276.14 276.15
276.16 276.17 276.18 276.19 276.20 276.21
276.22 276.23
276.24 276.25 276.26 276.27 276.28 276.29 276.30
277.1 277.2
277.3 277.4 277.5 277.6
277.7 277.8
277.9 277.10 277.11 277.12 277.13 277.14 277.15 277.16 277.17
277.18 277.19
277.20 277.21 277.22 277.23 277.24 277.25 277.26 277.27 277.28
278.1 278.2
278.3 278.4 278.5 278.6 278.7 278.8 278.9 278.10
278.11 278.12
278.13 278.14 278.15 278.16 278.17 278.18 278.19 278.20 278.21 278.22 278.23 278.24 278.25 278.26 278.27 278.28
278.29 278.30
279.1 279.2 279.3 279.4
279.5 279.6
279.7 279.8 279.9 279.10 279.11 279.12 279.13 279.14 279.15 279.16 279.17 279.18 279.19 279.20 279.21 279.22 279.23 279.24 279.25 279.26 279.27 279.28 279.29 279.30 279.31 279.32 279.33 280.1 280.2 280.3 280.4 280.5 280.6 280.7 280.8 280.9 280.10 280.11 280.12
280.13 280.14
280.15 280.16 280.17 280.18 280.19 280.20 280.21 280.22 280.23
280.24 280.25
280.26 280.27 280.28 280.29 280.30 280.31 280.32 281.1 281.2 281.3 281.4 281.5 281.6
281.7 281.8
281.9 281.10 281.11 281.12 281.13 281.14 281.15 281.16 281.17 281.18 281.19 281.20 281.21 281.22 281.23 281.24 281.25 281.26 281.27 281.28 281.29 281.30 281.31
281.32 281.33
282.1 282.2 282.3 282.4 282.5 282.6 282.7 282.8 282.9 282.10 282.11 282.12 282.13 282.14 282.15 282.16 282.17 282.18 282.19 282.20 282.21 282.22 282.23
282.24
282.25 282.26 282.27 282.28 282.29 282.30 283.1 283.2 283.3
283.4 283.5
283.6 283.7 283.8 283.9 283.10 283.11 283.12 283.13 283.14 283.15 283.16 283.17 283.18 283.19 283.20 283.21 283.22 283.23 283.24 283.25 283.26 283.27 283.28 283.29 283.30 283.31
283.32 283.33
284.1 284.2 284.3 284.4 284.5 284.6 284.7 284.8 284.9 284.10 284.11 284.12 284.13 284.14 284.15 284.16 284.17 284.18 284.19 284.20 284.21 284.22 284.23 284.24 284.25 284.26 284.27 284.28 284.29 284.30 284.31 284.32
284.33 284.34
285.1 285.2 285.3 285.4 285.5 285.6 285.7 285.8 285.9 285.10 285.11 285.12
285.13 285.14
285.15 285.16 285.17 285.18 285.19 285.20 285.21 285.22 285.23 285.24 285.25 285.26 285.27 285.28 285.29 285.30 285.31 285.32 285.33 286.1 286.2 286.3 286.4 286.5 286.6 286.7 286.8 286.9
286.10 286.11
286.12 286.13 286.14 286.15 286.16 286.17 286.18 286.19 286.20 286.21 286.22 286.23 286.24 286.25 286.26 286.27 286.28 286.29
286.30 286.31
287.1 287.2 287.3 287.4 287.5 287.6 287.7 287.8 287.9 287.10 287.11 287.12 287.13 287.14 287.15 287.16 287.17 287.18 287.19 287.20 287.21 287.22 287.23
287.24 287.25
287.26 287.27 287.28 287.29 287.30 287.31 287.32 287.33 288.1 288.2 288.3 288.4 288.5 288.6 288.7 288.8 288.9 288.10 288.11 288.12 288.13 288.14 288.15 288.16
288.17 288.18 288.19 288.20
288.21 288.22 288.23 288.24 288.25 288.26 288.27 288.28
288.29 288.30
289.1 289.2 289.3 289.4 289.5 289.6 289.7 289.8 289.9 289.10 289.11 289.12 289.13 289.14 289.15
289.16 289.17
289.18 289.19 289.20
289.21 289.22
289.23 289.24 289.25
289.26 289.27 289.28 289.29 289.30 289.31 290.1 290.2 290.3 290.4 290.5 290.6 290.7 290.8 290.9 290.10 290.11 290.12 290.13 290.14 290.15 290.16 290.17 290.18 290.19 290.20 290.21 290.22 290.23 290.24 290.25 290.26 290.27 290.28 290.29 290.30 290.31 290.32 290.33 291.1 291.2 291.3 291.4 291.5 291.6 291.7 291.8 291.9 291.10 291.11 291.12 291.13 291.14 291.15 291.16 291.17 291.18 291.19 291.20 291.21 291.22 291.23 291.24 291.25 291.26 291.27 291.28 291.29 291.30 291.31 291.32 291.33 292.1 292.2 292.3 292.4 292.5 292.6 292.7 292.8 292.9 292.10 292.11 292.12 292.13 292.14 292.15 292.16 292.17 292.18 292.19 292.20 292.21 292.22 292.23 292.24 292.25 292.26 292.27 292.28 292.29 292.30 292.31 292.32 293.1 293.2 293.3 293.4 293.5 293.6 293.7 293.8 293.9 293.10 293.11 293.12 293.13 293.14 293.15 293.16 293.17 293.18 293.19 293.20 293.21 293.22 293.23 293.24 293.25 293.26 293.27 293.28 293.29 293.30 293.31 293.32 294.1 294.2 294.3 294.4 294.5 294.6 294.7 294.8 294.9 294.10 294.11 294.12 294.13 294.14 294.15 294.16 294.17 294.18 294.19 294.20 294.21 294.22 294.23 294.24 294.25 294.26 294.27 294.28 294.29 294.30 294.31 294.32 294.33 295.1 295.2 295.3 295.4 295.5 295.6 295.7 295.8
295.9
295.10 295.11 295.12 295.13 295.14 295.15 295.16 295.17 295.18 295.19 295.20 295.21 295.22 295.23
295.24
295.25 295.26 295.27 295.28 295.29 296.1 296.2 296.3 296.4 296.5 296.6 296.7 296.8 296.9 296.10 296.11 296.12 296.13 296.14 296.15 296.16 296.17 296.18 296.19 296.20 296.21 296.22 296.23 296.24 296.25 296.26 296.27 296.28 296.29
296.30
297.1 297.2 297.3 297.4 297.5 297.6 297.7 297.8 297.9 297.10 297.11 297.12 297.13 297.14 297.15 297.16 297.17 297.18 297.19 297.20 297.21 297.22 297.23 297.24 297.25 297.26 297.27
297.28 297.29
297.30 297.31 297.32 298.1 298.2 298.3 298.4 298.5 298.6 298.7 298.8 298.9 298.10 298.11 298.12 298.13
298.14
298.15 298.16 298.17 298.18 298.19 298.20 298.21 298.22 298.23 298.24 298.25
298.26
298.27 298.28 298.29 298.30 299.1 299.2 299.3 299.4 299.5
299.6
299.7 299.8 299.9
299.10 299.11 299.12 299.13 299.14 299.15 299.16 299.17 299.18 299.19 299.20 299.21 299.22 299.23 299.24 299.25 299.26 299.27 299.28 299.29 299.30
299.31 299.32
300.1 300.2 300.3 300.4 300.5 300.6 300.7 300.8 300.9 300.10 300.11 300.12 300.13 300.14 300.15
300.16 300.17
300.18 300.19 300.20 300.21 300.22 300.23 300.24 300.25 300.26 300.27 300.28 300.29 300.30 300.31 301.1 301.2 301.3 301.4 301.5 301.6 301.7 301.8 301.9 301.10 301.11 301.12 301.13 301.14 301.15 301.16 301.17 301.18 301.19 301.20 301.21 301.22 301.23 301.24 301.25 301.26 301.27 301.28 301.29 301.30 301.31
301.32
302.1 302.2 302.3 302.4 302.5 302.6 302.7 302.8 302.9 302.10 302.11 302.12 302.13 302.14 302.15 302.16 302.17 302.18 302.19
302.20
302.21 302.22 302.23 302.24 302.25
302.26 302.27
303.1 303.2
303.3 303.4 303.5 303.6 303.7 303.8 303.9 303.10 303.11 303.12 303.13 303.14 303.15 303.16 303.17 303.18 303.19 303.20 303.21 303.22 303.23 303.24 303.25 303.26 303.27 303.28 303.29 303.30 303.31 303.32 304.1 304.2 304.3 304.4 304.5 304.6 304.7 304.8 304.9 304.10 304.11 304.12 304.13 304.14 304.15 304.16 304.17
A bill for an act
relating to financing and operation of state and local government; modifying
provisions governing individual income and corporate franchise taxes, federal
conformity, property taxes, certain state aid and credit programs, sales and use
taxes, minerals taxes, tax increment financing, certain local taxes, provisions related
to public finance, and various other taxes and tax-related provisions; modifying
income tax credits; modifying existing and proposing new subtractions; modifying
provisions related to the taxation of pass-through entities; providing for certain
federal tax conformity; modifying individual income tax rates; modifying provisions
related to reporting of corporate income; providing a onetime refundable rebate
credit; providing for conformity to certain federal tax provisions; modifying
property tax exemptions, classifications, and refunds; modifying local government
aid calculations; establishing soil and water conservation district aid; providing
for certain sales tax exemptions and providing new definitions; modifying taconite
taxes and distributions; converting the renter's property tax refund into a refundable
individual income tax credit; modifying provisions related to tax increment
financing and allowing certain special local provisions; modifying certain local
taxes; establishing tourism improvement special taxing districts; requiring reports;
appropriating money; amending Minnesota Statutes 2022, sections 3.8855,
subdivisions 4, 7; 6.495, subdivision 3; 10A.31, subdivisions 1, 3; 13.46,
subdivision 2; 41B.0391, subdivisions 1, 2, 4, 7; 116U.27, subdivisions 1, 4, 7;
118A.04, subdivision 5; 123B.61; 168B.07, subdivision 3; 256J.45, subdivision
2; 256L.15, subdivision 1a; 270A.03, subdivision 2; 270B.12, subdivision 8;
270B.14, subdivision 1; 270C.13, subdivision 1; 270C.19, subdivisions 1, 2;
270C.445, subdivisions 2, 3; 270C.446, subdivision 2; 270C.52, subdivision 2;
272.01, subdivision 2; 272.02, subdivisions 24, 73, 98, by adding a subdivision;
273.11, subdivision 12; 273.124, subdivisions 6, 13, 13a, 13c, 13d, 14; 273.1245,
subdivision 1; 273.13, subdivisions 25, 34, 35; 273.1315, subdivision 2; 273.1341;
273.1392; 275.065, subdivisions 3, 3b, 4; 278.01, subdivision 1; 279.03, subdivision
1a; 282.261, subdivision 2; 289A.02, subdivision 7, as amended; 289A.08,
subdivisions 7, as amended, 7a, as amended, by adding subdivisions; 289A.18,
subdivision 5; 289A.38, subdivision 4; 289A.382, subdivision 2; 289A.50, by
adding a subdivision; 289A.56, subdivision 6; 289A.60, subdivisions 12, 13, 28;
290.01, subdivisions 19, as amended, 31, as amended; 290.0132, subdivisions 4,
24, 26, 27, by adding subdivisions; 290.0133, subdivision 6; 290.0134, subdivision
18, by adding a subdivision; 290.06, subdivisions 2c, as amended, 2d, 22, 39;
290.067; 290.0671, as amended; 290.0674; 290.0677, subdivision 1; 290.0682,
subdivision 2, by adding a subdivision; 290.0685, subdivision 1, by adding a
subdivision; 290.0686; 290.091, subdivision 2, as amended; 290.17, subdivision
4, by adding a subdivision; 290.21, subdivision 9; 290.92, subdivision 20; 290.9705,
subdivision 1; 290A.02; 290A.03, subdivisions 3, 6, 8, 12, 13, 15, as amended, 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;
291.005, subdivision 1, as amended; 295.50, subdivision 4; 296A.083, subdivision
3; 297A.61, subdivision 29, by adding subdivisions; 297A.67, subdivisions 2, 7;
297A.68, subdivisions 4, 25; 297A.70, subdivisions 2, 4, 18, 19; 297E.02,
subdivision 6; 297E.021, subdivision 4; 297H.13, subdivision 2; 297I.20,
subdivision 4; 298.015; 298.018, subdivisions 1, 1a; 298.28, subdivisions 5, 7a,
by adding a subdivision; 298.296, subdivision 4; 299C.76, subdivisions 1, 2;
327C.02, subdivision 5; 349.11; 349.12, subdivisions 12b, 12c, by adding a
subdivision; 366.095, subdivision 1; 373.01, subdivision 3; 383B.117, subdivision
2; 410.32; 412.301; 462A.05, subdivision 24; 462A.38; 469.033, subdivision 6;
469.053, subdivisions 4, 6; 469.107, subdivision 1; 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;
474A.02, subdivisions 22b, 23a; 475.54, subdivision 1; 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; 477A.30; 477B.01, subdivisions 5, 10, 11, by adding
subdivisions; 477B.02, subdivisions 2, 3, 5, 8, 9, 10, by adding a subdivision;
477B.03, subdivisions 2, 3, 4, 5, 7; 477B.04, subdivision 1, by adding a subdivision;
477C.02, subdivision 4; 477C.03, subdivisions 2, 5; 477C.04, by adding a
subdivision; 514.972, subdivision 5; Laws 1971, chapter 773, section 1, subdivision
2, as amended; 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, sections 26, as amended; 36, subdivisions 1, 3, as
amended; article 7, section 17; article 17, section 6; Laws 2014, chapter 308, article
6, section 12, subdivision 2; Laws 2023, chapter 1, section 15; proposing coding
for new law in Minnesota Statutes, chapters 16A; 181; 290; 477A; proposing
coding for new law as Minnesota Statutes, chapter 428B; repealing Minnesota
Statutes 2022, sections 270A.04, subdivision 5; 290.01, subdivision 19i; 290.0131,
subdivision 18; 290.0132, subdivision 33; 290A.03, subdivisions 9, 11; 290A.04,
subdivision 2a; 290A.23, subdivision 1; 477A.011, subdivisions 30a, 38, 42, 45;
477A.013, subdivision 13; 477A.16, subdivisions 1, 2, 3; 477B.02, subdivision 4;
477B.03, subdivision 6.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES
Section 1.
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 new text begin child and new text end working family
credit under section 290.0671, the property tax refund and rental credit 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, 2022.
new text end
Sec. 2.
Minnesota Statutes 2022, section 41B.0391, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) For purposes of this section, the following terms have
the meanings given.
(b) "Agricultural assets" means agricultural land, livestock, facilities, buildings, and
machinery used for farming in Minnesota.
(c) "Beginning farmer" means an individual who:
(1) is a resident of Minnesota;
(2) is seeking entry, or has entered within the last ten years, into farming;
(3) intends to farm land located within the state borders of Minnesota;
(4) new text begin except as provided in subdivision 2, new text end is not and whose spouse is not a family member
of the owner of the agricultural assets from whom the beginning farmer is seeking to purchase
or rent agricultural assets;
(5) new text begin except as provided in subdivision 2, new text end is not and whose spouse is not a family member
of a partner, member, shareholder, or trustee of the owner of agricultural assets from whom
the beginning farmer is seeking to purchase or rent agricultural assets; and
(6) meets the following eligibility requirements as determined by the authority:
(i) has a net worth that does not exceed the limit provided under section 41B.03,
subdivision 3, paragraph (a), clause (2);
(ii) provides the majority of the day-to-day physical labor and management of the farm;
(iii) has, by the judgment of the authority, adequate farming experience or demonstrates
knowledge in the type of farming for which the beginning farmer seeks assistance from the
authority;
(iv) demonstrates to the authority a profit potential by submitting projected earnings
statements;
(v) asserts to the satisfaction of the authority that farming will be a significant source
of income for the beginning farmer;
(vi) is enrolled in or has completed within ten years of their first year of farming a
financial management program approved by the authority or the commissioner of agriculture;
(vii) agrees to notify the authority if the beginning farmer no longer meets the eligibility
requirements within the three-year certification period, in which case the beginning farmer
is no longer eligible for credits under this section; and
(viii) has other qualifications as specified by the authority.
The authority may waive the requirement in item (vi) if the participant requests a waiver
and has a four-year degree in an agricultural program or related field, reasonable agricultural
job-related experience, or certification as an adult farm management instructor.
(d) "Family member" means a family member within the meaning of the Internal Revenue
Code, section 267(c)(4).
(e) "Farm product" means plants and animals useful to humans and includes, but is not
limited to, forage and sod crops, oilseeds, grain and feed crops, dairy and dairy products,
poultry and poultry products, livestock, fruits, and vegetables.
(f) "Farming" means the active use, management, and operation of real and personal
property for the production of a farm product.
(g) "Owner of agricultural assets" means an individual, trust, or pass-through entity that
is the owner in fee of agricultural land or has legal title to any other agricultural asset. Owner
of agricultural assets does not mean an equipment dealer, livestock dealer defined in section
17A.03, subdivision 7, or comparable entity that is engaged in the business of selling
agricultural assets for profit and that is not engaged in farming as its primary business
activity. An owner of agricultural assets approved and certified by the authority under
subdivision 4 must notify the authority if the owner no longer meets the definition in this
paragraph within the three year certification period and is then no longer eligible for credits
under this section.
(h) "Resident" has the meaning given in section 290.01, subdivision 7.
(i) "Share rent agreement" means a rental agreement in which the principal consideration
given to the owner of agricultural assets is a predetermined portion of the production of
farm products produced from the rented agricultural assets and which provides for sharing
production costs or risk of loss, or both.
new text begin
(j) "Underserved farmer or rancher" means a farmer or rancher who is a veteran, limited
resource producer, or who is living in a high poverty area as those terms are defined and
implemented by the secretary of the United States Department of Agriculture pursuant to
Public Law 117-169, section 22007.
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 41B.0391, subdivision 2, is amended to read:
Subd. 2.
Tax credit for owners of agricultural assets.
(a) An owner of agricultural
assets may take a credit against the tax due under chapter 290 for the sale or rental of
agricultural assets to a beginning farmer in the amount allocated by the authority under
subdivision 4. An owner of agricultural assets is eligible for allocation of a credit equal to:
(1) deleted text begin fivedeleted text end new text begin eightnew text end percent of the lesser of the sale price or the fair market value of the
agricultural asset, up to a maximum of deleted text begin $32,000deleted text end new text begin $50,000new text end ;
(2) ten percent of the gross rental income in each of the first, second, and third years of
a rental agreement, up to a maximum of $7,000 per year; or
(3) 15 percent of the cash equivalent of the gross rental income in each of the first,
second, and third years of a share rent agreement, up to a maximum of $10,000 per year.
(b) A qualifying rental agreement includes cash rent of agricultural assets or a share rent
agreement. The agricultural asset must be rented at prevailing community rates as determined
by the authority.
(c) The credit may be claimed only after approval and certification by the authority, and
is limited to the amount stated on the certificate issued under subdivision 4. An owner of
agricultural assets must apply to the authority for certification and allocation of a credit, in
a form and manner prescribed by the authority.
(d) An owner of agricultural assets or beginning farmer may terminate a rental agreement,
including a share rent agreement, for reasonable cause upon approval of the authority. If a
rental agreement is terminated without the fault of the owner of agricultural assets, the tax
credits shall not be retroactively disallowed. In determining reasonable cause, the authority
must look at which party was at fault in the termination of the agreement. If the authority
determines the owner of agricultural assets did not have reasonable cause, the owner of
agricultural assets must repay all credits received as a result of the rental agreement to the
commissioner of revenue. The repayment is additional income tax for the taxable year in
which the authority makes its decision or when a final adjudication under subdivision 5,
paragraph (a), is made, whichever is later.
(e) The credit is limited to the liability for tax as computed under chapter 290 for the
taxable year. If the amount of the credit determined under this section for any taxable year
exceeds this limitation, the excess is a beginning farmer incentive credit carryover according
to section 290.06, subdivision 37.
new text begin
(f) For purposes of the credit for the sale of agricultural land only, the family member
definitional exclusions in subdivision 1, paragraph (c), clauses (4) and (5), do not apply.
For a sale to a family member to qualify for the credit, the sales price of the agricultural
land must equal or exceed the assessed value of the land as of the date of the sale. For
purposes of this paragraph, "sale to a family member" means a sale to a beginning farmer
in which the beginning farmer or the beginning farmer's spouse is a family member of:
new text end
new text begin
(1) the owner of the agricultural land; or
new text end
new text begin
(2) a partner, member, shareholder, or trustee of the owner of the agricultural land.
new text end
new text begin
(g) For a sale to an underserved farmer or rancher, the credit rate under paragraph (a),
clause (1), is twelve percent rather than eight percent.
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. 4.
Minnesota Statutes 2022, section 41B.0391, subdivision 4, is amended to read:
Subd. 4.
Authority duties.
(a) The authority shall:
(1) approve and certify or recertify beginning farmers as eligible for the program under
this section;
(2) approve and certify or recertify owners of agricultural assets as eligible for the tax
credit under subdivision 2 subject to the allocation limits in paragraph (c);
(3) provide necessary and reasonable assistance and support to beginning farmers for
qualification and participation in financial management programs approved by the authority;
(4) refer beginning farmers to agencies and organizations that may provide additional
pertinent information and assistance; and
(5) notwithstanding section 41B.211, the Rural Finance Authority must share information
with the commissioner of revenue to the extent necessary to administer provisions under
this subdivision and section 290.06, subdivisions 37 and 38. The Rural Finance Authority
must annually notify the commissioner of revenue of approval and certification or
recertification of beginning farmers and owners of agricultural assets under this section.
For credits under subdivision 2, the notification must include the amount of credit approved
by the authority and stated on the credit certificate.
(b) The certification of a beginning farmer or an owner of agricultural assets under this
section is valid for the year of the certification and the two following years, after which
time the beginning farmer or owner of agricultural assets must apply to the authority for
recertification.
(c) For credits for owners of agricultural assets allowed under subdivision 2, the authority
must not allocate more than deleted text begin $5,000,000 for taxable years beginning after December 31,
2017, and before January 1, 2019, and must not allocate more thandeleted text end $6,000,000 for taxable
years beginning after December 31, 2018new text begin , and before January 1, 2032new text end . The authority must
allocate credits on a first-come, first-served basis beginning on January 1 of each year,
except that recertifications for the second and third years of credits under subdivision 2,
paragraph (a), clauses deleted text begin (1) anddeleted text end (2)new text begin and (3)new text end , have first priority. new text begin For each taxable year, 50
percent of newly allocated credits must be allocated to underserved farmers or ranchers.
Any portion of a taxable year's newly allocated credits that is reserved for underserved
farmers or ranchers that is not allocated by September 30 of the taxable year is available
for allocation to other credit applications beginning on October 1. new text end Any amount authorized
but not allocated in any taxable year does not cancel and is added to the allocation for the
next taxable year.
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 41B.0391, subdivision 7, is amended to read:
Subd. 7.
Sunset.
This section expires for taxable years beginning after December 31,
deleted text begin 2023deleted text end new text begin 2031new 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.
Minnesota Statutes 2022, section 116U.27, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) For purposes of this section, the following terms have
the meanings given.
(b) "Allocation certificate" means a certificate issued by the commissioner to a taxpayer
upon receipt of an initial application for a credit for a project that has not yet been completed.
(c) "Application" means the application for a credit under subdivision 4.
(d) "Commissioner" means the commissioner of employment and economic development.
(e) "Credit certificate" means a certificate issued by the commissioner upon submission
of the cost verification report in subdivision 4, paragraph (e).
(f) "Eligible production costs" means eligible production costs as defined in section
116U.26, paragraph (b), clause (1), incurred in Minnesota that are directly attributable to
the production of a film project in Minnesota.
(g) "Film" has the meaning given in section 116U.26, paragraph (b), clause (2).
(h) "Project" means a film:
(1) that includes the promotion of Minnesota;
(2) for which the taxpayer has expended at least $1,000,000 in deleted text begin the taxable yeardeleted text end new text begin a
consecutive 12-month period beginning when expenditures are first paid in Minnesotanew text end for
eligible production costs; and
(3) to the extent practicable, that employs Minnesota residents.
(i) "Promotion of Minnesota" or "promotion" means visible display of a static or animated
logo, approved by the commissioner and lasting approximately five seconds, that promotes
Minnesota within its presentation in the end credits before the below-the-line crew crawl
for the life of the project.
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. 7.
Minnesota Statutes 2022, section 116U.27, subdivision 4, is amended to read:
Subd. 4.
Applications; allocations.
(a) To qualify for a credit under this section, a
taxpayer must submit to the commissioner an application for a credit in the form prescribed
by the commissioner, in consultation with the commissioner of revenue.
(b) Upon approving an application for a credit that meets the requirements of this section,
the commissioner shall issue allocation certificates that:
(1) verify eligibility for the credit;
(2) state the amount of credit anticipated for the eligible project, with the credit amount
up to 25 percent of eligible project costs; and
(3) state the taxable year in which the credit is allocated.
The commissioner must consult with the Minnesota Film and TV Board prior to issuing an
allocation certificate.
(c) The commissioner must not issue allocation certificates for more than deleted text begin $4,950,000deleted text end new text begin
$24,950,000new text end of credits each year. If the entire amount is not allocated in that taxable year,
any remaining amount is available for allocation for the four following taxable years until
the entire allocation has been made. The commissioner must not award any credits for
taxable years beginning after December 31, deleted text begin 2024deleted text end new text begin 2032new text end , and any unallocated amounts cancel
on that date.
(d) The commissioner must allocate credits on a first-come, first-served basis.
(e) Upon completion of a project, the taxpayer shall submit to the commissioner a report
prepared by an independent certified public accountant licensed in the state of Minnesota
to verify the amount of eligible production costs related to the project. The report must be
prepared in accordance with generally accepted accounting principles. Upon receipt and
review of the cost verification report, the commissioner shall determine the final amount
of eligible production costs and issue a credit certificate to the taxpayer. The credit may not
exceed the anticipated credit amount on the allocation certificate. If the credit is less than
the anticipated amount on the allocation credit, the difference is returned to the amount
available for allocation under paragraph (c). To claim the credit under section 290.06,
subdivision 39, or 297I.20, subdivision 4, a taxpayer must include a copy of the credit
certificate as part of the taxpayer's return.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for allocation certificates issued after
December 31, 2022.
new text end
Sec. 8.
Minnesota Statutes 2022, section 116U.27, subdivision 7, is amended to read:
Subd. 7.
Expiration.
Subdivisions 1 to 5 expire January 1, deleted text begin 2025deleted text end new text begin 2033new text end , for taxable years
beginning after December 31, deleted text begin 2024deleted text end new text begin 2032new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for allocation certificates issued after
December 31, 2022.
new text end
Sec. 9.
Minnesota Statutes 2022, section 168B.07, subdivision 3, is amended to read:
Subd. 3.
Retrieval of contents.
(a) For purposes of this subdivision:
(1) "contents" does not include any permanently affixed mechanical or nonmechanical
automobile parts; automobile body parts; or automobile accessories, including audio or
video players; and
(2) "relief based on need" includes, but is not limited to, receipt of MFIP and Diversionary
Work Program, medical assistance, general assistance, emergency general assistance,
Minnesota supplemental aid, MSA-emergency assistance, MinnesotaCare, Supplemental
Security Income, energy assistance, emergency assistance, Supplemental Nutrition Assistance
Program (SNAP) benefits, earned income tax credit, or Minnesota new text begin child and new text end working family
tax credit.
(b) A unit of government or impound lot operator shall establish reasonable procedures
for retrieval of vehicle contents, and may establish reasonable procedures to protect the
safety and security of the impound lot and its personnel.
(c) At any time before the expiration of the waiting periods provided in section 168B.051,
a registered owner who provides documentation from a government or nonprofit agency or
legal aid office that the registered owner is homeless, receives relief based on need, or is
eligible for legal aid services, has the unencumbered right to retrieve any and all contents
without charge and regardless of whether the registered owner pays incurred charges or
fees, transfers title, or reclaims the vehicle.
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. 10.
new text begin
[181.141] SEXUAL HARASSMENT OR ABUSE SETTLEMENT; PAYMENT
AS SEVERANCE OR WAGES PROHIBITED.
new text end
new text begin
In a sexual harassment or abuse settlement between an employer and an employee, when
there is a financial settlement provided, the financial settlement cannot be provided as wages
or severance pay to the employee regardless of whether the settlement includes a
nondisclosure agreement.
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.
Minnesota Statutes 2022, section 256J.45, subdivision 2, is amended to read:
Subd. 2.
General information.
The MFIP orientation must consist of a presentation
that informs caregivers of:
(1) the necessity to obtain immediate employment;
(2) the work incentives under MFIP, including the availability of the federal earned
income tax credit and the Minnesotanew text begin child andnew text end working family tax credit;
(3) the requirement to comply with the employment plan and other requirements of the
employment and training services component of MFIP, including a description of the range
of work and training activities that are allowable under MFIP to meet the individual needs
of participants;
(4) the consequences for failing to comply with the employment plan and other program
requirements, and that the county agency may not impose a sanction when failure to comply
is due to the unavailability of child care or other circumstances where the participant has
good cause under subdivision 3;
(5) the rights, responsibilities, and obligations of participants;
(6) the types and locations of child care services available through the county agency;
(7) the availability and the benefits of the early childhood health and developmental
screening under sections 121A.16 to 121A.19; 123B.02, subdivision 16; and 123B.10;
(8) the caregiver's eligibility for transition year child care assistance under section
119B.05;
(9) the availability of all health care programs, including transitional medical assistance;
(10) the caregiver's option to choose an employment and training provider and information
about each provider, including but not limited to, services offered, program components,
job placement rates, job placement wages, and job retention rates;
(11) the caregiver's option to request approval of an education and training plan according
to section 256J.53;
(12) the work study programs available under the higher education system;
(13) information about the 60-month time limit exemptions under the family violence
waiver and referral information about shelters and programs for victims of family violence;
and
(14) information about the income exclusions under section 256P.06, subdivision 2.
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. 12.
Minnesota Statutes 2022, section 256L.15, subdivision 1a, is amended to read:
Subd. 1a.
Payment options.
The commissioner may offer the following payment options
to an enrollee:
(1) payment by check;
(2) payment by credit card;
(3) payment by recurring automatic checking withdrawal;
(4) payment by onetime electronic transfer of funds;
(5) payment by wage withholding with the consent of the employer and the employee;
or
(6) payment by using state tax refund payments.
At application or reapplication, a MinnesotaCare applicant or enrollee may authorize
the commissioner to use the Revenue Recapture Act in chapter 270A to collect funds from
the applicant's or enrollee's refund for the purposes of meeting all or part of the applicant's
or enrollee's MinnesotaCare premium obligation. The applicant or enrollee may authorize
the commissioner to apply for the state new text begin child and new text end working family tax credit on behalf of the
applicant or enrollee. The setoff due under this subdivision shall not be subject to the $10
fee under section 270A.07, subdivision 1.
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. 13.
Minnesota Statutes 2022, section 289A.08, subdivision 7, as amended by Laws
2023, chapter 1, section 2, is amended to read:
Subd. 7.
Composite income tax returns for nonresident partners, shareholders, and
beneficiaries.
(a) The commissioner may allow a partnership with nonresident partners to
file a composite return and to pay the tax on behalf of nonresident partners who have no
other Minnesota source income. This composite return must include the names, addresses,
Social Security numbers, income allocation, and tax liability for the nonresident partners
electing to be covered by the composite return.
(b) The computation of a partner's tax liability must be determined by multiplying the
income allocated to that partner by the highest rate used to determine the tax liability for
individuals under section 290.06, subdivision 2c. Nonbusiness deductions, standard
deductions, or personal exemptions are not allowed.
(c) The partnership must submit a request to use this composite return filing method for
nonresident partners. The requesting partnership must file a composite return in the form
prescribed by the commissioner of revenue. The filing of a composite return is considered
a request to use the composite return filing method.
(d) The electing partner must not have any Minnesota source income other than the
income from the partnership, other electing partnerships, and other qualifying entities
electing to file and pay the pass-through entity tax under subdivision 7a. If it is determined
that the electing partner has other Minnesota source income, the inclusion of the income
and tax liability for that partner under this provision will not constitute a return to satisfy
the requirements of subdivision 1. The tax paid for the individual as part of the composite
return is allowed as a payment of the tax by the individual on the date on which the composite
return payment was made. If the electing nonresident partner has no other Minnesota source
income, filing of the composite return is a return for purposes of subdivision 1.
(e) This subdivision does not negate the requirement that an individual pay estimated
tax if the individual's liability would exceed the requirements set forth in section 289A.25.
The individual's liability to pay estimated tax is, however, satisfied when the partnership
pays composite estimated tax in the manner prescribed in section 289A.25.
(f) If an electing partner's share of the partnership's gross income from Minnesota sources
is less than the filing requirements for a nonresident under this subdivision, the tax liability
is zero. However, a statement showing the partner's share of gross income must be included
as part of the composite return.
(g) The election provided in this subdivision is only available to a partner who has no
other Minnesota source income and who is either (1) a full-year nonresident individual or
(2) a trust or estate that does not claim a deduction under either section 651 or 661 of the
Internal Revenue Code.
(h) A corporation defined in section 290.9725 and its nonresident shareholders may
make an election under this paragraph. The provisions covering the partnership apply to
the corporation and the provisions applying to the partner apply to the shareholder.
(i) Estates and trusts distributing current income only and the nonresident individual
beneficiaries of the estates or trusts may make an election under this paragraph. The
provisions covering the partnership apply to the estate or trust. The provisions applying to
the partner apply to the beneficiary.
(j) For the purposes of this subdivision, "income" deleted text begin means the partner's share of federal
adjusted gross income from the partnership modified by the additions provided in section
290.0131, subdivisions 8 to 10, 16, and 17, and the subtractions provided in: (1) section
290.0132, subdivisions 9, 27, 28, and 31, to the extent the amount is assignable or allocable
to Minnesota under section 290.17; and (2) section 290.0132, subdivision 14. The subtraction
allowed under section 290.0132, subdivision 9, is only allowed on the composite tax
computation to the extent the electing partner would have been allowed the subtraction.deleted text end new text begin has
the meaning given in section 290.01, subdivision 19, paragraph (h).
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. 14.
Minnesota Statutes 2022, section 289A.08, subdivision 7a, as amended by Laws
2023, chapter 1, section 3, is amended to read:
Subd. 7a.
Pass-through entity tax.
(a) For the purposes of this subdivision, the following
terms have the meanings given:
(1) "income" has the meaning given in deleted text begin subdivision 7, paragraph (j), modified by the
addition provided in section 290.0131, subdivision 5, and the subtraction provided in section
290.0132, subdivision 3, except that the provisions that apply to a partnership apply to a
qualifying entity and the provisions that apply to a partner apply to a qualifying owner. The
income of both a resident and nonresident qualifying owner is allocated and assigned to
this state as provided for nonresident partners and shareholders under sections 290.17,
290.191, and 290.20deleted text end new text begin section 290.01, subdivision 19, paragraphs (i) and (j)new text end ;
(2) "qualifying entity" means a partnership, limited liability companynew text begin taxed as a
partnership or S corporationnew text end , or S corporation including a qualified subchapter S subsidiary
organized under section 1361(b)(3)(B) of the Internal Revenue Codenew text begin that has at least one
qualifying ownernew text end . Qualifying entity does not include a deleted text begin partnership, limited liability company,
or corporation that has a partnership, limited liability company other than a disregarded
entity, or corporation as a partner, member, or shareholderdeleted text end new text begin publicly traded partnership, as
defined in section 7704 of the Internal Revenue Codenew text end ; and
(3) "qualifying owner" means:
(i) a resident or nonresident individual or estate that is a partner, member, or shareholder
of a qualifying entity; deleted text begin or
deleted text end
(ii) a resident or nonresident trust that is a shareholder of a qualifying entity that is an
S corporationdeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(iii) a disregarded entity that has a qualifying owner as its single owner.
new text end
(b) For taxable years beginning after December 31, 2020, deleted text begin in which the taxes of a
qualifying owner are limited under section 164(b)(6)(B) of the Internal Revenue Code,deleted text end a
qualifying entity may elect to file a return and pay the pass-through entity tax imposed under
paragraph (c). The election:
(1) must be made on or before the due date or extended due date of the qualifying entity's
pass-through entity tax return;
new text begin
(2) must exclude partners, members, shareholders, or owners who are not qualifying
owners;
new text end
deleted text begin (2)deleted text end new text begin (3)new text end may only be made by qualifying owners who collectively hold more than deleted text begin adeleted text end 50
percent new text begin of the new text end ownership deleted text begin interestdeleted text end new text begin interestsnew text end in the qualifying entitynew text begin held by qualifying ownersnew text end ;
deleted text begin (3)deleted text end new text begin (4)new text end is binding on all qualifying owners who have an ownership interest in the
qualifying entity; and
deleted text begin (4)deleted text end new text begin (5)new text end once made is irrevocable for the taxable year.
(c) Subject to the election in paragraph (b), a pass-through entity tax is imposed on a
qualifying entity in an amount equal to the sum of the tax liability of each qualifying owner.
(d) The amount of a qualifying owner's tax liability under paragraph (c) is the amount
of the qualifying owner's income multiplied by the highest tax rate for individuals under
section 290.06, subdivision 2c. When making this determination:
(1) nonbusiness deductions, standard deductions, or personal exemptions are not allowed;
and
(2) a credit or deduction is allowed only to the extent allowed to the qualifying owner.
(e) The amount of each credit and deduction used to determine a qualifying owner's tax
liability under paragraph (d) must also be used to determine that qualifying owner's income
tax liability under chapter 290.
(f) This subdivision does not negate the requirement that a qualifying owner pay estimated
tax if the qualifying owner's tax liability would exceed the requirements set forth in section
289A.25. The qualifying owner's liability to pay estimated tax on the qualifying owner's
tax liability as determined under paragraph (d) is, however, satisfied when the qualifying
entity pays estimated tax in the manner prescribed in section 289A.25 for composite estimated
tax.
(g) A qualifying owner's adjusted basis in the interest in the qualifying entity, and the
treatment of distributions, is determined as if the election to pay the pass-through entity tax
under paragraph (b) is not made.
(h) To the extent not inconsistent with this subdivision, for purposes of this chapter, a
pass-through entity tax return must be treated as a composite return and a qualifying entity
filing a pass-through entity tax return must be treated as a partnership filing a composite
return.
(i) The provisions of subdivision 17 apply to the election to pay the pass-through entity
tax under this subdivision.
(j) If a nonresident qualifying owner of a qualifying entity making the election to file
and pay the tax under this subdivision has no other Minnesota source income, filing of the
pass-through entity tax return is a return for purposes of subdivision 1, provided that the
nonresident qualifying owner must not have any Minnesota source income other than the
income from the qualifying entity, other electing qualifying entities, and other partnerships
electing to file a composite return under subdivision 7. If it is determined that the nonresident
qualifying owner has other Minnesota source income, the inclusion of the income and tax
liability for that owner under this provision will not constitute a return to satisfy the
requirements of subdivision 1. The tax paid for the qualifying owner as part of the
pass-through entity tax return is allowed as a payment of the tax by the qualifying owner
on the date on which the pass-through entity tax return payment was made.
(k) Once a credit is claimed by a qualifying owner under section 290.06, subdivision
40, a qualifying entity cannot receive a refund for tax paid under this subdivision for any
amounts claimed under that section by the qualifying owners. Once a credit is claimed under
section 290.06, subdivision 40, any refund must be claimed in conjunction with a return
filed by the qualifying owner.
new text begin
(l) This section expires at the same time and on the same terms as section 164(b)(6)(B)
of the Internal Revenue Code, except that the expiration of this section does not affect the
commissioner's authority to audit or power of examination and assessments for credits
claimed under this section.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2022.
new text end
Sec. 15.
Minnesota Statutes 2022, section 289A.382, subdivision 2, is amended to read:
Subd. 2.
Reporting and payment requirements for partnerships and tiered
partners.
(a) Except for when an audited partnership makes the election in subdivision 3,
and except for negative federal adjustments required under federal law taken into account
by the partnership in the partnership return for the adjustment or other year, all final federal
adjustments of an audited partnership must comply with paragraph (b) and each direct
partner of the audited partnership, other than a tiered partner, must comply with paragraph
(c).
(b) No later than 90 days after the final determination date, the audited partnership must:
(1) file a completed federal adjustments report, including all partner-level information
required under section 289A.12, subdivision 3, with the commissioner;
(2) notify each of its direct partners of their distributive share of the final federal
adjustments;
(3) file an amended composite report for all direct partners who were included in a
composite return under section 289A.08, subdivision 7, in the reviewed year, and pay the
additional amount that would have been due had the federal adjustments been reported
properly as required; deleted text begin and
deleted text end
(4) file amended withholding reports for all direct partners who were or should have
been subject to nonresident withholding under section 290.92, subdivision 4b, in the reviewed
year, and pay the additional amount that would have been due had the federal adjustments
been reported properly as requireddeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(5) file an amended pass-through entity tax report for all direct partners who were
included in a pass-through entity tax return under section 289A.08, subdivision 7a, in the
reviewed year, and pay the additional amount that would have been due had the federal
adjustments been reported properly as required.
new text end
(c) No later than 180 days after the final determination date, each direct partner, other
than a tiered partner, that is subject to a tax administered under this chapter, other than the
sales tax, must:
(1) file a federal adjustments report reporting their distributive share of the adjustments
reported to them under paragraph (b), clause (2); and
(2) pay any additional amount of tax due as if the final federal adjustment had been
properly reported, plus any penalty and interest due under this chapter, and less any credit
for related amounts paid or withheld and remitted on behalf of the direct partner under
paragraph (b), clauses (3) and (4).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2020.
new text end
Sec. 16.
Minnesota Statutes 2022, section 290.01, subdivision 19, as amended by Laws
2023, chapter 1, section 4, is amended to read:
Subd. 19.
Net income.
(a) For a trust or estate taxable under section 290.03, and a
corporation taxable under section 290.02, the term "net income" means the federal taxable
income, as defined in section 63 of the Internal Revenue Code of 1986, as amended through
the date named in this subdivision, incorporating the federal effective dates of changes to
the Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in sections 290.0131 to 290.0136.
(b) For an individual, the term "net income" means federal adjusted gross income with
the modifications provided in sections 290.0131, 290.0132, and 290.0135 to 290.0137.
(c) In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:
(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;
(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue
Code must be applied by allowing a deduction for capital gain dividends and exempt-interest
dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code;
and
(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.
(d) The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
(e) The net income of a designated settlement fund as defined in section 468B(d) of the
Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal
Revenue Code.
(f) The Internal Revenue Code of 1986, as amended through December 15, 2022, applies
for taxable years beginning after December 31, 1996.
(g) Except as otherwise provided, references to the Internal Revenue Code in this
subdivision and sections 290.0131 to 290.0136 mean the code in effect for purposes of
determining net income for the applicable year.
new text begin
(h) In the case of a partnership electing to file a composite return under section 289A.08,
subdivision 7, income means the partner's share of federal adjusted gross income from the
partnership modified by the additions provided in section 290.0131, subdivisions 8 to 10,
16, and 17, and the subtractions provided in: (1) section 290.0132, subdivisions 9, 27, and
28, to the extent the amount is assignable or allocable to Minnesota under section 290.17;
and (2) section 290.0132, subdivision 14. The subtraction allowed under section 290.0132,
subdivision 9, is only allowed on the composite tax computation to the extent the electing
partner would have been allowed the subtraction.
new text end
new text begin
(i) In the case of a qualifying entity electing to pay the pass-through entity tax under
section 289A.08, subdivision 7a, income means the qualifying owner's share of federal
adjusted gross income from the qualifying entity modified by the additions provided in
section 290.0131, subdivisions 5, 8 to 10, 16, and 17, and the subtractions provided in: (1)
section 290.0132, subdivisions 3, 9, 27, and 28, to the extent the amount is assignable or
allocable to Minnesota under section 290.17; and (2) section 290.0132, subdivision 14. The
subtraction allowed under section 290.0132, subdivision 9, is only allowed on the
pass-through entity tax computation to the extent the qualifying owners would have been
allowed the subtraction.
new text end
new text begin
(j) The income of a resident qualifying owner of a qualifying entity that is a partnership
or limited liability company taxed as a partnership under the Internal Revenue Code is not
subject to allocation outside this state as provided for resident individuals under section
290.17, subdivision 1, paragraph (a). The income of a nonresident qualifying owner of a
qualifying entity and the income of a resident qualifying owner of a qualifying entity that
is an S corporation, including a qualified subchapter S subsidiary organized under section
1361(b)(3)(B) of the Internal Revenue Code, are allocated and assigned to this state as
provided for nonresident partners and shareholders under sections 290.17, 290.191, and
290.20.
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. 17.
Minnesota Statutes 2022, section 290.0132, subdivision 4, is amended to read:
Subd. 4.
Education expenses.
(a) Subject to the limits in paragraph (b), the following
amounts paid to others for each qualifying child are a subtraction:
(1) education-related expenses; plus
(2) tuition and fees paid to attend a school described in section 290.0674, deleted text begin subdivision 1deleted text end new text begin
subdivision 1a, paragraph (c)new text end , clause (4), that are not included in education-related expenses;
less
(3) any amount used to claim the credit under section 290.0674.
(b) The maximum subtraction allowed under this subdivision is:
(1) $1,625 for each qualifying child in kindergarten through grade 6; and
(2) $2,500 for each qualifying child in grades 7 through 12.
(c) The definitions in section 290.0674, deleted text begin subdivision 1deleted text end new text begin subdivision 1anew text end , apply to this
subdivision.
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. 18.
Minnesota Statutes 2022, section 290.0132, subdivision 24, is amended to read:
Subd. 24.
deleted text begin Discharge of indebtedness; education loansdeleted text end new text begin Student loan dischargesnew text end .
(a)
The deleted text begin amount equal to the discharge of indebtedness of thedeleted text end new text begin qualified student loan discharge
of anew text end taxpayer is a subtraction deleted text begin if:deleted text end new text begin .
new text end
deleted text begin
(1) the indebtedness discharged is a qualified education loan; and
deleted text end
deleted text begin
(2) the indebtedness was discharged under section 136A.1791, or following the taxpayer's
completion of an income-driven repayment plan.
deleted text end
deleted text begin
(b) For the purposes of this subdivision, "qualified education loan" has the meaning
given in section 221 of the Internal Revenue Code.
deleted text end
deleted text begin
(c) For purposes of this subdivision, "income-driven repayment plan" means a payment
plan established by the United States Department of Education that sets monthly student
loan payments based on income and family size under United States Code, title 20, section
1087e, or similar authority and specifically includes, but is not limited to:
deleted text end
new text begin
(b) For the purposes of this subdivision, "qualified student loan discharge" means a
discharge of indebtedness eligible for the exclusion from gross income under section 9675
of Public Law 117-2. A discharge of indebtedness that occurred after December 31, 2025,
but otherwise qualifies for the exclusion under that section is a qualified student loan
discharge.
new text end
new text begin
(c) "Qualified student loan discharge" includes but is not limited to a discharge of
indebtedness under:
new text end
(1) the income-based repayment plan under United States Code, title 20, section 1098e;
(2) the income contingent repayment plan established under United States Code, title
20, section 1087e, subsection (e); deleted text begin and
deleted text end
(3) the PAYE program or REPAYE program established by the Department of Education
under administrative regulationsnew text begin ; and
new text end
new text begin (4) section 136A.1791new 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. 19.
Minnesota Statutes 2022, section 290.0132, subdivision 26, is amended to read:
Subd. 26.
Social Security benefits.
(a) A deleted text begin portion of taxable Social Security benefits is
allowed as a subtraction. Thedeleted text end new text begin taxpayer is allowed anew text end subtraction deleted text begin equalsdeleted text end new text begin equal to the greater
of the simplified subtraction allowed under paragraph (b) or the alternate subtraction
determined under paragraphs (e) to (h).
new text end
new text begin
(b) A taxpayer's simplified subtraction equals the amount of taxable social security
benefits, as reduced under paragraphs (c) and (d).
new text end
new text begin
(c) For a taxpayer other than a married taxpayer filing a separate return with adjusted
gross income above the phaseout threshold, the simplified subtraction is reduced by ten
percent for each $2,000 of adjusted gross income, or fraction thereof, in excess of the
phaseout threshold. The phaseout threshold equals:
new text end
new text begin
(1) $100,000 for a married taxpayer filing a joint return or surviving spouse; or
new text end
new text begin
(2) $78,000 for a single or head of household taxpayer.
new text end
new text begin
(d) For a married taxpayer filing a separate return, the simplified subtraction is reduced
by ten percent for each $1,000 of adjusted gross income, or fraction thereof, in excess of
the phaseout threshold for a married joint filer under paragraph (c), clause (1), as adjusted
for inflation under paragraph (j).
new text end
new text begin (e) A taxpayer's alternate subtraction equals new text end the lesser of taxable Social Security benefits
or a maximum subtraction subject to the limits under paragraphs deleted text begin (b), (c), and (d)deleted text end new text begin (f), (g),
and (h)new text end .
deleted text begin (b)deleted text end new text begin (f)new text end For married taxpayers filing a joint return and surviving spouses, the maximum
subtraction new text begin under paragraph (c) new text end equals deleted text begin $5,150deleted text end new text begin $5,840new text end . The maximum subtraction is reduced
by 20 percent of provisional income over deleted text begin $78,180deleted text end new text begin $88,630new text end . In no case is the subtraction
less than zero.
deleted text begin (c)deleted text end new text begin (g)new text end For single or head-of-household taxpayers, the maximum subtraction new text begin under
paragraph (c) new text end equals deleted text begin $4,020deleted text end new text begin $4,560new text end . The maximum subtraction is reduced by 20 percent of
provisional income over deleted text begin $61,080deleted text end new text begin $69,250new text end . In no case is the subtraction less than zero.
deleted text begin (d)deleted text end new text begin (h)new text end For married taxpayers filing separate returns, the maximum subtraction new text begin under
paragraph (c) new text end equals one-half the maximum subtraction for joint returns under paragraph
deleted text begin (b)deleted text end new text begin (d)new text end . The maximum subtraction is reduced by 20 percent of provisional income over
one-half the threshold amount specified in paragraph deleted text begin (b)deleted text end new text begin (d)new text end . In no case is the subtraction
less than zero.
deleted text begin (e)deleted text end new text begin (i)new text end For purposes of this subdivision, "provisional income" means modified adjusted
gross income as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of
the taxable Social Security benefits received during the taxable year, and "Social Security
benefits" has the meaning given in section 86(d)(1) of the Internal Revenue Code.
deleted text begin (f)deleted text end new text begin (j)new text end The commissioner shall adjust the deleted text begin maximum subtraction anddeleted text end new text begin phaseout new text end threshold
amounts in paragraphs deleted text begin (b) todeleted text end new text begin (c) and new text end (d) as provided in section 270C.22. The statutory year
is taxable year deleted text begin 2019deleted text end new text begin 2023new text end . The maximum subtraction and threshold amounts as adjusted
must be rounded to the nearest $10 amount. If the amount ends in $5, the amount is rounded
up to the nearest $10 amount.
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. 20.
Minnesota Statutes 2022, section 290.0132, subdivision 27, is amended to read:
Subd. 27.
Deferred foreign income.
The amount of deferred foreign income deleted text begin recognized
because ofdeleted text end new text begin undernew text end section 965 of the Internal Revenue Code is a subtraction.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 21.
Minnesota Statutes 2022, section 290.0132, is amended by adding a subdivision
to read:
new text begin Subd. 34. new text end
new text begin Damages for sexual harassment or abuse. new text end
new text begin
The amount of damages received
under a sexual harassment or abuse claim that is not excluded from gross income under
section 104(a)(2) of the Internal Revenue Code because the damages are not received on
account of personal physical injuries or physical sickness is a subtraction.
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. 22.
Minnesota Statutes 2022, section 290.0132, is amended by adding a subdivision
to read:
new text begin Subd. 35. new text end
new text begin Qualified retirement benefits. new text end
new text begin
(a) The amount of qualified public pension
income is a subtraction. The subtraction in this section is limited to:
new text end
new text begin
(1) $25,000 for a married taxpayer filing a joint return or surviving spouse; or
new text end
new text begin
(2) $12,500 for all other filers.
new text end
new text begin
(b) For a taxpayer with adjusted gross income above the phaseout threshold, the
subtraction is reduced by ten percent for each $2,000 of adjusted gross income, or fraction
thereof, in excess of the threshold. The phaseout threshold equals:
new text end
new text begin
(1) $100,000 for a married taxpayer filing a joint return or surviving spouse;
new text end
new text begin
(2) $78,000 for a single or head of household taxpayer; or
new text end
new text begin
(3) for a married taxpayer filing a separate return, half the amount for a married taxpayer
filing a joint return.
new text end
new text begin
(c) For the purposes of this section, "qualified public pension income" means any amount
received:
new text end
new text begin
(1) by a former basic member or the survivor of a former basic member, as an annuity
or survivor benefit, from a pension plan governed by chapter 353, 353E, 354, or 354A,
provided that the annuity or benefit is based on service for which the member or survivor
is not also receiving Social Security benefits;
new text end
new text begin
(2) as an annuity or survivor benefit from the legislators plan under chapter 3A, the State
Patrol retirement plan under chapter 352B, or the public employees police and fire plan
under sections 353.63 to 353.666, provided that the annuity or benefit is based on service
for which the member or survivor is not also receiving Social Security benefits;
new text end
new text begin
(3) from any retirement system administered by the federal government that is based on
service for which the recipient or the recipient's survivor is not also receiving Social Security
benefits; or
new text end
new text begin
(4) from a public retirement system of or created by another state or any of its political
subdivisions, or the District of Columbia, if the income tax laws of the other state or district
permit a similar deduction or exemption or a reciprocal deduction or exemption of a
retirement or pension benefit received from a public retirement system of or created by this
state or any political subdivision of this state.
new text end
new text begin
(d) The commissioner must annually adjust the subtraction limits in paragraph (a) and
the phaseout thresholds in paragraph (b), as provided in section 270C.22. The statutory year
is taxable year 2023.
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. 23.
Minnesota Statutes 2022, section 290.0132, is amended by adding a subdivision
to read:
new text begin Subd. 36. new text end
new text begin Subpart F income. new text end
new text begin
For a unitary business, as defined in section 290.17,
subdivision 4, paragraph (b), the amount of subpart F income included in gross income
under section 951 of the Internal Revenue Code is a subtraction.
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. 24.
Minnesota Statutes 2022, section 290.0133, subdivision 6, is amended to read:
Subd. 6.
Special deductions.
The amount of any special deductions under sections 241
to 247deleted text begin ,deleted text end new text begin andnew text end 250, deleted text begin and 965deleted text end of the Internal Revenue Code is an addition.
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.
Minnesota Statutes 2022, section 290.0134, subdivision 18, is amended to read:
Subd. 18.
Deferred foreign income.
The amount of deferred foreign income deleted text begin recognized
because ofdeleted text end new text begin undernew text end section 965 of the Internal Revenue Code is a subtraction.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 26.
Minnesota Statutes 2022, section 290.0134, is amended by adding a subdivision
to read:
new text begin Subd. 21. new text end
new text begin Subpart F income. new text end
new text begin
For a unitary business, as defined in section 290.17,
subdivision 4, paragraph (b), the amount of subpart F income included in gross income
under section 951 of the Internal Revenue Code is a subtraction.
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. 27.
Minnesota Statutes 2022, section 290.06, subdivision 2c, as amended by Laws
2023, chapter 1, section 15, is amended to read:
Subd. 2c.
Schedules of rates for individuals, estates, and trusts.
(a) The income taxes
imposed by this chapter upon married individuals filing joint returns and surviving spouses
as defined in section 2(a) of the Internal Revenue Code must be computed by applying to
their taxable net income the following schedule of rates:
(1) On the first deleted text begin $38,770deleted text end new text begin $43,950new text end , 5.35 percent;
(2) On all over deleted text begin $38,770deleted text end new text begin $43,950new text end , but not over deleted text begin $154,020deleted text end new text begin $174,610new text end , 6.8 percent;
(3) On all over deleted text begin $154,020deleted text end new text begin $174,610new text end , but not over deleted text begin $269,010deleted text end new text begin $304,970new text end , 7.85 percent;
(4) On all over deleted text begin $269,010deleted text end new text begin $304,970, but not over $1,000,000new text end , 9.85 percentdeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(5) On all over $1,000,000, 10.85 percent.
new text end
Married individuals filing separate returns, estates, and trusts must compute their income
tax by applying the above rates to their taxable income, except that the income brackets
will be one-half of the above amounts after the adjustment required in subdivision 2d.
(b) The income taxes imposed by this chapter upon unmarried individuals must be
computed by applying to taxable net income the following schedule of rates:
(1) On the first deleted text begin $26,520deleted text end new text begin $30,070new text end , 5.35 percent;
(2) On all over deleted text begin $26,520deleted text end new text begin $30,070new text end , but not over deleted text begin $87,110deleted text end new text begin $98,760new text end , 6.8 percent;
(3) On all over deleted text begin $87,110deleted text end new text begin $98,760new text end , but not over deleted text begin $161,720deleted text end new text begin $183,340new text end , 7.85 percent;
(4) On all over deleted text begin $161,720deleted text end new text begin $183,340, but not over $600,000new text end , 9.85 percentdeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(5) On all over $600,000, 10.85 percent.
new text end
(c) The income taxes imposed by this chapter upon unmarried individuals qualifying as
a head of household as defined in section 2(b) of the Internal Revenue Code must be
computed by applying to taxable net income the following schedule of rates:
(1) On the first deleted text begin $32,650deleted text end new text begin $37,010new text end , 5.35 percent;
(2) On all over deleted text begin $32,650deleted text end new text begin $37,010new text end , but not over deleted text begin $131,190deleted text end new text begin $148,730new text end , 6.8 percent;
(3) On all over deleted text begin $131,190deleted text end new text begin $148,730new text end , but not over deleted text begin $214,980deleted text end new text begin $243,720new text end , 7.85 percent;
(4) On all over deleted text begin $214,980deleted text end new text begin $243,720, but not over $800,000new text end , 9.85 percentdeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(5) On all over $800,000, 10.85 percent.
new text end
(d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax
of any individual taxpayer whose taxable net income for the taxable year is less than an
amount determined by the commissioner must be computed in accordance with tables
prepared and issued by the commissioner of revenue based on income brackets of not more
than $100. The amount of tax for each bracket shall be computed at the rates set forth in
this subdivision, provided that the commissioner may disregard a fractional part of a dollar
unless it amounts to 50 cents or more, in which case it may be increased to $1.
(e) An individual who is not a Minnesota resident for the entire year must compute the
individual's Minnesota income tax as provided in this subdivision. After the application of
the nonrefundable credits provided in this chapter, the tax liability must then be multiplied
by a fraction in which:
(1) the numerator is the individual's Minnesota source federal adjusted gross income as
defined in section 62 of the Internal Revenue Code and increased by:
(i) the additions required under sections 290.0131, subdivisions 2, 6, 8 to 10, 16, and
17, and 290.0137, paragraph (a); and reduced by
(ii) the Minnesota assignable portion of the subtraction for United States government
interest under section 290.0132, subdivision 2, the subtractions under sections 290.0132,
subdivisions 9, deleted text begin 10,deleted text end 14, 15, deleted text begin 17,deleted text end 18, 27, and 31, and 290.0137, paragraph (c), after applying
the allocation and assignability provisions of section 290.081, clause (a), or 290.17; and
(2) the denominator is the individual's federal adjusted gross income as defined in section
62 of the Internal Revenue Code, increased by:
(i) the additions required under sections 290.0131, subdivisions 2, 6, 8 to 10, 16, and
17, and 290.0137, paragraph (a); and reduced by
(ii) the subtractions under sections 290.0132, subdivisions 2, 9, deleted text begin 10,deleted text end 14, 15, deleted text begin 17,deleted text end 18, 27,
and 31, and 290.0137, paragraph (c).
(f) If an individual who is not a Minnesota resident for the entire year is a qualifying
owner of a qualifying entity that elects to pay tax as provided in section 289A.08, subdivision
7a, paragraph (b), the individual must compute the individual's Minnesota income tax as
provided in paragraph (e), and also must include, to the extent attributed to the electing
qualifying entity:
(1) in paragraph (e), clause (1), item (i), and paragraph (e), clause (2), item (i), the
addition under section 290.0131, subdivision 5; and
(2) in paragraph (e), clause (1), item (ii), and paragraph (e), clause (2), item (ii), the
subtraction under section 290.0132, subdivision 3.
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. 28.
Minnesota Statutes 2022, section 290.06, subdivision 2d, is amended to read:
Subd. 2d.
Inflation adjustment of brackets.
The commissioner shall annually adjust
the minimum and maximum dollar amounts for each rate bracket for which a tax is imposed
in subdivision 2c as provided in section 270C.22. The statutory year is taxable year deleted text begin 2019deleted text end new text begin
2023new text end . The rate applicable to any rate bracket must not be changed. The dollar amounts
setting forth the tax shall be adjusted to reflect the changes in the rate brackets. The rate
brackets as adjusted must be rounded to the nearest $10 amount. If the rate bracket ends in
$5, it must be rounded up to the nearest $10 amount. The commissioner shall determine the
rate bracket for married filing separate returns after this adjustment is done. The rate bracket
for married filing separate must be one-half of the rate bracket for married filing joint.
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. 29.
Minnesota Statutes 2022, section 290.06, subdivision 39, is amended to read:
Subd. 39.
Film production credit.
(a) A taxpayer, including a taxpayer to whom a credit
has been assigned under section 116U.27, subdivision 3, may claim a credit against the tax
imposed by this chapter equal to the amount certified on a credit certificate under section
116U.27, subject to the limitations in this subdivision.
(b) The credit is limited to the liability for tax, as computed under this chapter, for the
taxable year. If the amount of the credit determined under this subdivision for any taxable
year exceeds this limitation, the excess is a film production credit carryover to each of the
five succeeding taxable years. The entire amount of the excess unused credit for the taxable
year is carried first to the earliest of the taxable years to which the credit may be carried
and then to each successive year to which the credit may be carried. The amount of the
unused credit that may be added under this paragraph must not exceed the taxpayer's liability
for tax, less any film production credit for the taxable year.
(c) Credits allowed to a partnership, a limited liability company taxed as a partnership,
or an S corporation are passed through to the partners, members, shareholders, or owners,
respectively, pro rata to each based on the partner's, member's, shareholder's, or owner's
share of the entity's assets, or as specially allocated in the organizational documents or any
other executed agreement, as of the last day of the taxable year.
(d) Notwithstanding the approval and certification by the commissioner of employment
and economic development under section 116U.27, the commissioner may utilize any audit
and examination powers under chapter 270C or 289A to the extent necessary to verify that
the taxpayer is eligible for the credit and to assess the amount of any improperly claimed
credit. The commissioner may only assess the original recipient of the credit certificate for
the amount of improperly claimed credits. The commissioner may not assess a credit
certificate assignee for any amount of improperly claimed credits, and an assignee's claim
for credit is not affected by the commissioner's assessment of improperly claimed credits
against the assignor.
(e) This subdivision expires January 1, deleted text begin 2025deleted text end new text begin 2033new text end , for taxable years beginning after
December 31, deleted text begin 2024deleted text end new text begin 2032new text end , except that the expiration of this section does not affect the
commissioner of revenue's authority to audit or power of examination and assessment for
credits claimed under this subdivision.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 30.
Minnesota Statutes 2022, section 290.067, is amended to read:
290.067 DEPENDENT CARE CREDIT.
Subdivision 1.
Amount of credit.
(a) A taxpayer may take as a credit against the tax
due from the taxpayer and a spouse, if any, under this chapter an amount equal to the
dependent care credit for which the taxpayer is eligible pursuant to the provisions of section
21 of the Internal Revenue Code except that in determining whether the child qualified as
a dependent, income received as a Minnesota family investment program grant or allowance
to or on behalf of the child must not be taken into account in determining whether the child
received more than half of the child's support from the taxpayer.
(b) If a child who has not attained the age of six years at the close of the taxable year is
cared for at a licensed family day care home operated by the child's parent, the taxpayer is
deemed to have paid employment-related expenses. If the child is 16 months old or younger
at the close of the taxable year, the amount of expenses deemed to have been paid equals
the maximum limit for one qualified individual under section 21(c) and (d) of the Internal
Revenue Code. If the child is older than 16 months of age but has not attained the age of
six years at the close of the taxable year, the amount of expenses deemed to have been paid
equals the amount the licensee would charge for the care of a child of the same age for the
same number of hours of care.
(c) If a deleted text begin married coupledeleted text end new text begin taxpayernew text end :
(1) has a child who has not attained the age of one year at the close of the taxable year;new text begin
and
new text end
deleted text begin
(2) files a joint tax return for the taxable year; and
deleted text end
deleted text begin (3)deleted text end new text begin (2)new text end does not participate in a dependent care assistance program as defined in section
129 of the Internal Revenue Code, in lieu of the actual employment related expenses paid
for that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of
(i) the combined earned income of the couple or (ii) the amount of the maximum limit for
one qualified individual under section 21(c) and (d) of the Internal Revenue Code will be
deemed to be the employment related expense paid for that child. The earned income
limitation of section 21(d) of the Internal Revenue Code shall not apply to this deemed
amount. These deemed amounts apply regardless of whether any employment-related
expenses have been paid.
(d) If the taxpayer is not required and does not file a federal individual income tax return
for the tax year, no credit is allowed for any amount paid to any person unless:
(1) the name, address, and taxpayer identification number of the person are included on
the return claiming the credit; or
(2) if the person is an organization described in section 501(c)(3) of the Internal Revenue
Code and exempt from tax under section 501(a) of the Internal Revenue Code, the name
and address of the person are included on the return claiming the credit.
In the case of a failure to provide the information required under the preceding sentence,
the preceding sentence does not apply if it is shown that the taxpayer exercised due diligence
in attempting to provide the information required.
(e) In the case of a nonresident, part-year resident, deleted text begin or a person who has earned income
not subject to tax under this chapter including earned income excluded pursuant to section
290.0132, subdivision 10,deleted text end the credit determined under section 21 of the Internal Revenue
Code must be allocated based on the ratio by which the earned income of the claimant and
the claimant's spouse from Minnesota sources bears to the total earned income of the claimant
and the claimant's spouse.
(f) For residents of Minnesota, the subtractions for military pay under section 290.0132,
subdivisions 11 and 12, are not considered "earned income not subject to tax under this
chapter."
(g) For residents of Minnesota, the exclusion of combat pay under section 112 of the
Internal Revenue Code is not considered "earned income not subject to tax under this
chapter."
(h) For taxpayers with federal adjusted gross income in excess of $52,230, the credit is
equal to the lesser of the credit otherwise calculated under this subdivision, or the amount
equal to $600 minus five percent of federal adjusted gross income in excess of $52,230 for
taxpayers with one qualified individual, or $1,200 minus five percent of federal adjusted
gross income in excess of $52,230 for taxpayers with two or more qualified individuals,
but in no case is the credit less than zero.
Subd. 2b.
Inflation adjustment.
The commissioner shall annually adjust the dollar
amount of the income threshold at which the maximum credit begins to be reduced under
subdivision 1 as provided in section 270C.22. The statutory year is taxable year 2019.
Subd. 3.
Credit to be refundable.
If the amount of credit which a claimant would be
eligible to receive pursuant to this subdivision exceeds the claimant's tax liability under
chapter 290, the excess amount of the credit shall be refunded to the claimant by the
commissioner of revenue.new text begin The amount needed to pay the refunds required by this section
is appropriated to the commissioner from the general fund.
new text end
Subd. 4.
Right to file claim.
The right to file a claim under this section shall be personal
to the claimant and shall not survive death, but such right may be exercised on behalf of a
claimant by the claimant's legal guardian or attorney-in-fact. When a claimant dies after
having filed a timely claim the amount thereof shall be disbursed to another member of the
household as determined by the commissioner of revenue. If the claimant was the only
member of a household, the claim may be paid to the claimant's personal representative,
but if neither is appointed and qualified within two years of the filing of the claim, the
amount of the claim shall escheat to the state.
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. 31.
Minnesota Statutes 2022, section 290.0671, as amended by Laws 2023, chapter
1, section 16, is amended to read:
290.0671 MINNESOTAnew text begin CHILD ANDnew text end WORKING FAMILY CREDIT.
Subdivision 1.
Credit allowed.
(a) An individual who is a resident of Minnesota is
allowed a credit against the tax imposed by this chapter deleted text begin equal to a percentage of earned
incomedeleted text end new text begin , as provided in this sectionnew text end . To receive a credit, a taxpayer must be eligible for a
credit under section 32 of the Internal Revenue Code, except that:
(1) a taxpayer with no qualifying children who has attained the age of deleted text begin 19, but not attained
age 65deleted text end new text begin 18new text end before the close of the taxable year and is otherwise eligible for a credit under
section 32 of the Internal Revenue Code may also receive a credit; deleted text begin and
deleted text end
(2) a taxpayer who is otherwise eligible for a credit under section 32 of the Internal
Revenue Code remains eligible for the credit even if the taxpayer's earned income or adjusted
gross income exceeds the income limitation under section 32 of the Internal Revenue Codenew text begin ;
new text end
new text begin
(3) section 32(m) of the Internal Revenue Code does not apply; and
new text end
new text begin (4) a taxpayer eligible for a child credit under paragraph (c) whose earned income is
insufficient to earn a credit under section 32 of the Internal Revenue Code may receive a
creditnew text end .
new text begin
(b) A taxpayer's credit under this section equals the sum of the taxpayer's child credit
under paragraph (c) and the taxpayer's working family credit amount under paragraph (d),
subject to the reduction under paragraph (e).
new text end
new text begin
(c) A taxpayer's child credit equals $1,175 for each qualified child of the taxpayer.
new text end
new text begin
(d) A taxpayer's working family credit equals four percent of the first $12,500 of earned
income.
new text end
new text begin
(e) The combined amount under paragraph (b) is reduced by 9 percent of earned income
or adjusted gross income, whichever is greater, in excess of:
new text end
new text begin
(1) $35,000 for a married taxpayer filing a joint return; or
new text end
new text begin
(2) $28,000 for all other filers.
new text end
deleted text begin
(b) For individuals with no qualifying children, the credit equals 3.9 percent of the first
$7,150 of earned income. The credit is reduced by 2.0 percent of earned income or adjusted
gross income, whichever is greater, in excess of the phaseout threshold, but in no case is
the credit less than zero.
deleted text end
deleted text begin
(c) For individuals with one qualifying child, the credit equals 9.35 percent of the first
$11,950 of earned income. The credit is reduced by 6.0 percent of earned income or adjusted
gross income, whichever is greater, in excess of the phaseout threshold, but in no case is
the credit less than zero.
deleted text end
deleted text begin
(d) For individuals with two qualifying children, the credit equals 11 percent of the first
$19,600 of earned income. The credit is reduced by 10.5 percent of earned income or adjusted
gross income, whichever is greater, in excess of the phaseout threshold, but in no case is
the credit less than zero.
deleted text end
deleted text begin
(e) For individuals with three or more qualifying children, the credit equals 12.5 percent
of the first $20,000 of earned income. The credit is reduced by 10.5 percent of earned income
or adjusted gross income, whichever is greater, in excess of the phaseout threshold, but in
no case is the credit less than zero.
deleted text end
(f) For a part-year resident, the credit must be allocated based on the percentage calculated
under section 290.06, subdivision 2c, paragraph (e).
(g) For a person who was a resident for the entire tax year and has earned income not
subject to tax under this chapter, deleted text begin including income excluded under section 290.0132,
subdivision 10,deleted text end the credit must be allocated based on the ratio of federal adjusted gross
income reduced by the earned income not subject to tax under this chapter over federal
adjusted gross income. For purposes of this paragraph, the following clauses are not
considered "earned income not subject to tax under this chapter":
(1) the subtractions for military pay under section 290.0132, subdivisions 11 and 12;
(2) the exclusion of combat pay under section 112 of the Internal Revenue Code; and
(3) income derived from an Indian reservation by an enrolled member of the reservation
while living on the reservation.
deleted text begin
(h) For the purposes of this section, the phaseout threshold equals:
deleted text end
deleted text begin
(1) $14,570 for married taxpayers filing joint returns with no qualifying children;
deleted text end
deleted text begin
(2) $8,730 for all other taxpayers with no qualifying children;
deleted text end
deleted text begin
(3) $28,610 for married taxpayers filing joint returns with one qualifying child;
deleted text end
deleted text begin
(4) $22,770 for all other taxpayers with one qualifying child;
deleted text end
deleted text begin
(5) $32,840 for married taxpayers filing joint returns with two qualifying children;
deleted text end
deleted text begin
(6) $27,000 for all other taxpayers with two qualifying children;
deleted text end
deleted text begin
(7) $33,140 for married taxpayers filing joint returns with three or more qualifying
children; and
deleted text end
deleted text begin
(8) $27,300 for all other taxpayers with three or more qualifying children.
deleted text end
deleted text begin (i)deleted text end new text begin (h)new text end The commissioner shall construct tables showing the amount of the credit at
various income levels and make them available to taxpayers. The tables shall follow the
schedule contained in this subdivision, except that the commissioner may graduate the
transition between income brackets.
Subd. 1a.
Definitions.
For purposes of this section, the deleted text begin termdeleted text end new text begin following terms have the
meanings given:
new text end
new text begin (1)new text end "qualifying child " has the meaning given in section 32(c) of the Internal Revenue
Codedeleted text begin .deleted text end new text begin , except section 32(m) does not apply; and
new text end
new text begin (2) new text end "earned income of the lesser-earning spouse" has the meaning given in section
290.0675, subdivision 1, paragraph (d).
Subd. 2.
Credit name.
The credit allowed by this section shall be known as the
"Minnesota new text begin child and new text end working family credit."
Subd. 4.
Credit refundable.
If the amount of credit which the claimant is eligible to
receive under this section exceeds the claimant's tax liability under this chapter, the
commissioner shall refund the excess to the claimant.
Subd. 5.
Calculation assistance.
Upon request of the individual and submission of the
necessary information, in the form prescribed by the commissioner, the Department of
Revenue shall calculate the credit on behalf of the individual.
Subd. 6.
Appropriation.
An amount sufficient to pay the refunds required by this section
is appropriated to the commissioner from the general fund.
Subd. 7.
Inflation adjustment.
The commissioner shall annually adjust the earned
income amounts used to calculate the new text begin working family new text end creditnew text begin , the child credit amounts,new text end and
the phase-out thresholds in subdivision 1 as provided in section 270C.22. The statutory year
is taxable year deleted text begin 2019deleted text end new text begin 2023new text end .
new text begin Subd. 8. new text end
new text begin Advance payment of credits. new text end
new text begin
(a) The commissioner of revenue may establish
a process to allow taxpayers to elect to receive one or more advance payments of the credit
under this section. The amount of advance payments must be based on the taxpayer and
commissioner's estimate of the amount of credits for which the taxpayer would be eligible
in the taxable year beginning in the calendar year in which the payments were made. The
commissioner must not distribute advance payments to a taxpayer who does not elect to
receive advance payments.
new text end
new text begin
(b) The amount of a taxpayer's credit under this section for the taxable year is reduced
by the amount of advance payments received by the taxpayer in the calendar year during
which the taxable year began. If a taxpayer's advance payments exceeded the credit the
taxpayer was eligible to receive for the taxable year, the taxpayer's liability for tax is increased
by the difference between the amount of advance payments received and the credit amount.
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. 32.
Minnesota Statutes 2022, section 290.0674, is amended to read:
290.0674 MINNESOTA EDUCATION CREDIT.
Subdivision 1.
Credit alloweddeleted text begin ; definitionsdeleted text end .
An individual is allowed a credit against
the tax imposed by this chapter in an amount equal to 75 percent of the amount paid for
education-related expenses for a qualifying child in kindergarten through grade 12.
new text begin Subd. 1a. new text end
new text begin Definitions. new text end
new text begin (a) new text end For purposes of this section,new text begin the following terms have the
meanings given them.
new text end
new text begin
(b) "Dependent" means a dependent, as defined in sections 151 and 152 of the Internal
Revenue Code.
new text end
new text begin (c)new text end "Education-related expenses" means:
(1) new text begin qualifying instructional new text end fees or tuition deleted text begin for instruction by an instructor under section
120A.22, subdivision 10, clause (1), (2), (3), (4), or (5), or a member of the Minnesota
Music Teachers Association, and who is not a lineal ancestor or sibling of the dependent
for instruction outside the regular school day or school year, including tutoring, driver's
education offered as part of school curriculum, regardless of whether it is taken from a
public or private entity or summer camps, in grade or age appropriate curricula that
supplement curricula and instruction available during the regular school year, that assists a
dependent to improve knowledge of core curriculum areas or to expand knowledge and
skills under the required academic standards under section 120B.021, subdivision 1, and
the world languages standards under section 120B.022, subdivision 1, and that do not include
the teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such
tenets, doctrines, or worshipdeleted text end ;
(2) expenses for textbooks, including books and other instructional materials and
equipment purchased or leased for use in elementary and secondary schools in teaching
only those subjects legally and commonly taught in public elementary and secondary schools
in this state. "Textbooks" does not include instructional books and materials used in the
teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such
tenets, doctrines, or worship, nor does it include books or materials for extracurricular
activities including sporting events, musical or dramatic events, speech activities, driver's
education, or similar programs;
(3) a maximum expense of $200 per family for personal computer hardware, excluding
single purpose processors, and educational software that assists a dependent to improve
knowledge of core curriculum areas or to expand knowledge and skills under the required
academic standards under section 120B.021, subdivision 1, and the elective standard under
section 120B.022, subdivision 1, clause (2), purchased for use in the taxpayer's home and
not used in a trade or business regardless of whether the computer is required by the
dependent's school; and
(4) the amount paid to others for transportation of a qualifying child attending an
elementary or secondary school situated in Minnesota, North Dakota, South Dakota, Iowa,
or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory
attendance laws, which is not operated for profit, and which adheres to the provisions of
the Civil Rights Act of 1964 and chapter 363A. Amounts under this clause exclude any
expense the taxpayer incurred in using the taxpayer's or the qualifying child's vehicle.
new text begin
(d) "Exemption amount" means the dependent exemption amount under section 290.0121,
subdivision 1, paragraph (b), as adjusted for inflation under section 290.0121, subdivision
3.
new text end
new text begin
(e) "Qualified instructor" means an individual who is not a lineal ancestor or sibling of
the dependent and who is:
new text end
new text begin
(1) an instructor under section 120A.22, subdivision 10, clause (1), (2), (3), (4), or (5);
or
new text end
new text begin
(2) a member of the Minnesota Music Teachers Association.
new text end
deleted text begin For purposes of this section,deleted text end new text begin (f)new text end "Qualifying child" has the meaning given in section
32(c)(3) of the Internal Revenue Code.
new text begin
(g) "Qualifying instructional fees or tuition" means fees or tuition for instruction by a
qualified instructor outside the regular school day or school year, and that does not include
the teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such
tenets, doctrines, or worship, including:
new text end
new text begin
(1) driver's education offered as part of school curriculum, regardless of whether it is
taken from a public or private entity; or
new text end
new text begin
(2) tutoring or summer camps that:
new text end
new text begin
(i) are in grade or age appropriate curricula that supplement curricula and instruction
available during the regular school year;
new text end
new text begin
(ii) assist a dependent to improve knowledge of core curriculum areas; or
new text end
new text begin
(iii) expand knowledge and skills under:
new text end
new text begin
(A) the required academic standards under section 120B.021, subdivision 1; and
new text end
new text begin
(B) the world languages standards under section 120B.022, subdivision 1.
new text end
Subd. 2.
Limitations.
(a) For claimants with new text begin adjusted gross new text end income not greater than
deleted text begin $33,500deleted text end new text begin $70,000new text end , the maximum credit allowed for a family is deleted text begin $1,000deleted text end new text begin $1,500new text end multiplied by
the number of qualifying children in kindergarten through grade 12 in the family. The
maximum credit for families with one qualifying child in kindergarten through grade 12 is
reduced by $1 for each $4 of deleted text begin householddeleted text end new text begin adjusted grossnew text end income over deleted text begin $33,500deleted text end new text begin $70,000new text end , and
the maximum credit for families with two or more qualifying children in kindergarten
through grade 12 is reduced by $2 for each $4 of deleted text begin householddeleted text end new text begin adjusted grossnew text end income over
deleted text begin $33,500deleted text end new text begin $70,000new text end , but in no case is the credit less than zero.
new text begin
(b) For claimants with three or more dependents, the adjusted gross income thresholds
under paragraph (a) are increased as follows:
new text end
new text begin
(1) for claimants with three dependents, the thresholds are increased by the exemption
amount;
new text end
new text begin
(2) for claimants with four dependents, the thresholds are increased by the exemption
amount, multiplied by two; and
new text end
new text begin
(3) for claimants with five or more dependents, the thresholds are increased by the
exemption amount times three.
new text end
deleted text begin (b)deleted text end new text begin (c)new text end In the case of a married claimant, a credit is not allowed unless a joint income
tax return is filed.
deleted text begin (c)deleted text end new text begin (d)new text end For a nonresident or part-year resident, the credit determined under subdivision
1 and the maximum credit amount in paragraph (a) must be allocated using the percentage
calculated in section 290.06, subdivision 2c, paragraph (e).
deleted text begin Subd. 2a. deleted text end
deleted text begin Income. deleted text end
deleted text begin
(a) For purposes of this section, "income" means the sum of the
following:
deleted text end
deleted text begin
(1) federal adjusted gross income as defined in section 62 of the Internal Revenue Code;
and
deleted text end
deleted text begin
(2) the sum of the following amounts to the extent not included in clause (1):
deleted text end
deleted text begin
(i) all nontaxable income;
deleted text end
deleted text begin
(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;
deleted text end
deleted text begin
(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;
deleted text end
deleted text begin
(iv) cash public assistance and relief;
deleted text end
deleted text begin
(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;
deleted text end
deleted text begin
(vi) interest received from the federal or a state government or any instrumentality or
political subdivision thereof;
deleted text end
deleted text begin
(vii) workers' compensation;
deleted text end
deleted text begin
(viii) nontaxable strike benefits;
deleted text end
deleted text begin
(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;
deleted text end
deleted text begin
(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;
deleted text end
deleted text begin
(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;
deleted text end
deleted text begin
(xii) nontaxable scholarship or fellowship grants;
deleted text end
deleted text begin
(xiii) the amount of deduction allowed under section 199 of the Internal Revenue Code;
deleted text end
deleted text begin
(xiv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
Code;
deleted text end
deleted text begin
(xv) the amount deducted for tuition expenses under section 222 of the Internal Revenue
Code; and
deleted text end
deleted text begin
(xvi) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code.
deleted text end
deleted text begin
In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" means federal adjusted gross income reflected in the
fiscal year ending in the next calendar year. Federal adjusted gross income may 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.
deleted text end
deleted text begin
(b) "Income" does not include:
deleted text end
deleted text begin
(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
deleted text end
deleted text begin
(2) amounts of any pension or annuity that were exclusively funded by the claimant or
spouse if the funding payments were not excluded from federal adjusted gross income in
the years when the payments were made;
deleted text end
deleted text begin
(3) surplus food or other relief in kind supplied by a governmental agency;
deleted text end
deleted text begin
(4) relief granted under chapter 290A;
deleted text end
deleted text begin
(5) child support payments received under a temporary or final decree of dissolution or
legal separation; and
deleted text end
deleted text begin
(6) 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.
deleted text end
Subd. 4.
Credit to be refundable.
If the amount of credit that the claimant is eligible
to receive under this section exceeds the claimant's tax liability under this chapter, the
commissioner shall refund the excess to the claimant.
Subd. 5.
Appropriation.
An amount sufficient to pay the refunds required by this section
is appropriated to the commissioner from the general fund.
new text begin Subd. 6. new text end
new text begin Inflation adjustment. new text end
new text begin
The commissioner shall annually adjust the adjusted
gross income amounts in subdivision 2, as provided in section 270C.22. The statutory year
is taxable year 2023.
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. 33.
Minnesota Statutes 2022, section 290.0677, subdivision 1, is amended to read:
Subdivision 1.
Credit allowed; current military service.
(a) An individual is allowed
a credit against the tax due under this chapter equal to $59 for each month or portion thereof
that the individual was in active military service in a designated area after September 11,
2001, and before January 1, 2009, while a Minnesota domiciliary.
(b) An individual is allowed a credit against the tax due under this chapter equal to $120
for each month or portion thereof that the individual was in active military service in a
designated area after December 31, 2008, while a Minnesota domiciliary.
(c) For active service performed after September 11, 2001, and before December 31,
2006, the individual may claim the credit in the taxable year beginning after December 31,
2005, and before January 1, 2007.
(d) For active service performed after December 31, 2006, the individual may claim the
credit for the deleted text begin taxabledeleted text end new text begin calendarnew text end year in which the active service was performed.
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. 34.
Minnesota Statutes 2022, section 290.0682, subdivision 2, is amended to read:
Subd. 2.
Credit allowed.
(a) An eligible individual is allowed a credit against the tax
due under this chapter.
(b) The credit for an eligible individual equals the least of:
(1) eligible loan payments minus ten percent of an amount equal to adjusted gross income
in excess of $10,000, but in no case less than zero;
(2) the earned income for the taxable year of the eligible individual, if any;
(3) the sum of:
(i) the interest portion of eligible loan payments made during the taxable year; and
(ii) ten percent of the original loan amount of all qualified education loans of the eligible
individual; or
(4) deleted text begin $500deleted text end new text begin $1,000new text end .
(c) For a part-year resident, the credit must be allocated based on the percentage calculated
under section 290.06, subdivision 2c, paragraph (e).
(d) In the case of a married couple, each spouse is eligible for the credit in this section.
For the purposes of paragraph (b), for married taxpayers filing joint returns, each spouse's
adjusted gross income equals the spouse's percentage share of the couple's earned income,
multiplied by the couple's combined adjusted gross income.
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. 35.
Minnesota Statutes 2022, section 290.0682, is amended by adding a subdivision
to read:
new text begin Subd. 3. new text end
new text begin Credit refundable; appropriation. new text end
new text begin
(a) If the amount of credit which a claimant
is eligible to receive under this section exceeds the claimant's tax liability under this chapter,
the commissioner shall refund the excess to the claimant.
new text end
new text begin
(b) An amount sufficient to pay the refunds required by this section is appropriated to
the commissioner from the general fund.
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. 36.
Minnesota Statutes 2022, section 290.0685, subdivision 1, is amended to read:
Subdivision 1.
Credit allowed.
(a) An new text begin eligible new text end individual is allowed a credit against the
tax imposed by this chapter equal to $2,000 for each deleted text begin birth for which a certificate of birth
resulting in stillbirth has been issued under section 144.2151deleted text end new text begin stillbirthnew text end . The credit under this
section is allowed only in the taxable year in which the stillbirth occurred deleted text begin and if the child
would have been a dependent of the taxpayer as defined in section 152 of the Internal
Revenue Codedeleted text end .
(b) For a deleted text begin nonresident ordeleted text end part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2015.
new text end
Sec. 37.
Minnesota Statutes 2022, section 290.0685, is amended by adding a subdivision
to read:
new text begin Subd. 1a. 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, unless the context clearly indicates otherwise.
new text end
new text begin
(b) "Certificate of birth" means the printed certificate of birth resulting in stillbirth issued
under section 144.2151 or for a birth occurring in another state or country a similar certificate
issued under that state's or country's law.
new text end
new text begin
(c) "Eligible individual" means an individual who is:
new text end
new text begin
(1)(i) a resident; or
new text end
new text begin
(ii) the nonresident spouse of a resident who is a member of armed forces of the United
States or the United Nations; and
new text end
new text begin
(2)(i) the individual who gave birth resulting in stillbirth and is listed as a parent on the
certificate of birth;
new text end
new text begin
(ii) if no individual meets the requirements of clause (i) for a stillbirth that occurs in this
state, then the first parent listed on the certificate of birth resulting in still birth; or
new text end
new text begin
(iii) the individual who gave birth resulting in stillbirth for a birth outside of this state
for which no certificate of birth was issued.
new text end
new text begin
(d) "Stillbirth" means a birth for which a fetal death report would be required under
section 144.222, subdivision 1, if the birth occurred in this state.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2015.
new text end
Sec. 38.
Minnesota Statutes 2022, section 290.0686, is amended to read:
290.0686 CREDIT FOR ATTAINING MASTER'S DEGREE IN TEACHER'S
LICENSURE FIELD.
Subdivision 1.
Definitions.
(a) For purposes of this section, the following terms have
the meanings given them.
(b) "Master's degree program" means a graduate-level program at an accredited university
leading to a master of arts or science degree in new text begin either new text end a core content area directly related to
a qualified teacher's licensure fieldnew text begin or in special educationnew text end . new text begin Except for a special education
program, new text end the master's degree program may not include pedagogy or a pedagogy component.
To be eligible under this credit, a licensed elementary school teacher must pursue and
complete a master's degree program in new text begin either new text end a core content area in which the teacher provides
direct classroom instructionnew text begin or in special educationnew text end .
(c) "Qualified teacher" means a person who:
(1) holds a new text begin qualifyingnew text end teaching license deleted text begin issued by the licensing division in the Department
ofdeleted text end deleted text begin Education on behalf of the Professional Educator Licensing and Standards Board deleted text end deleted text begin both
when deleted text end deleted text begin the teacher begins the master's degree program anddeleted text end when the teacher completes the
master's degree program;
(2) began a master's degree program after June 30, 2017; and
(3) completes the master's degree program during the taxable year.
(d) "Core content area" means the academic subject of reading, English or language arts,
mathematics, science, foreign languages, civics and government, economics, arts, history,
or geography.
new text begin
(e) "Special education" means a program of study directly related to licensure in
developmental disabilities, early childhood special education, deaf and hard of hearing
education, blind and visually impaired education, emotional or behavioral disorders, autism
spectrum disorders, or learning disabilities.
new text end
new text begin
(f) "Qualifying teaching license" means a license issued by the licensing division in the
Department of Education on behalf of the Professional Educator Licensing and Standards
Board.
new text end
Subd. 2.
Credit allowed.
(a) An individual who is a qualified teacher is allowed a credit
against the tax imposed under this chapter. The credit equals the lesser of $2,500 or the
amount the individual paid for tuition, fees, books, and instructional materials necessary to
completing the master's degree program and for which the individual did not receive
reimbursement from an employer or scholarship.
(b) For a nonresident or a part-year resident, the credit under this subdivision must be
allocated based on the percentage calculated under section 290.06, subdivision 2c, paragraph
(e).
(c) A qualified teacher may claim the credit in this section only one time for each master's
degree program completed in a core content areanew text begin or in special educationnew text end .
new text begin
(d) An individual who completed a master's degree program in special education during
the taxable year but did not have a qualifying teaching license when the individual completed
the program may claim the credit under this section if the individual receives a qualifying
license within six months of completing the program. A credit claimed under this paragraph
must be claimed in the taxable year in which the individual received the qualifying teaching
license.
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. 39.
new text begin
[290.0694] CREDIT FOR SALES OF MANUFACTURED HOME PARKS
TO COOPERATIVES.
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 definitions
have the meanings given.
new text end
new text begin
(b) "Qualified property" means a manufactured home park in Minnesota classified as
4c(5)(i) or 4c(5)(iii) under section 273.13, subdivision 25, paragraph (d).
new text end
new text begin
(c) "Qualified seller" means a taxpayer, as defined under section 290.01, subdivision 6,
who sells qualified property to: (1) a corporation or association organized under chapter
308A or 308B, where each person who owns a share or shares in the corporation or
association would be entitled to occupy a lot within the qualified property after the sale; or
(2) a nonprofit or a representative acting on behalf of residents, as defined by section
327C.015, subdivision 13, who purchases the property on behalf of residents who intend
to form a corporation or association as described in clause (1).
new text end
new text begin Subd. 2. new text end
new text begin Credit allowed; carryforward. new text end
new text begin
(a) A qualified seller is allowed a credit against
the tax imposed under this chapter. The credit equals five percent of the amount of the sale
price of the qualified property.
new text end
new text begin
(b) If the amount of the credit under this section exceeds the taxpayer's liability for tax
under this chapter, the excess is a credit carryover to each of the five succeeding taxable
years. The entire amount of the excess unused credit for the taxable year must be carried
first to the earliest of the taxable years to which the credit may be carried and then to each
successive year to which the credit may be carried. The amount of the unused credit that
may be added under this paragraph may not exceed the taxpayer's liability for tax, less any
credit for the current taxable year.
new text end
new text begin
(c) For residents and part-year residents, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
new text end
new text begin Subd. 3. new text end
new text begin Partnerships; multiple owners. new text end
new text begin
Credits granted to a partnership, a limited
liability company taxed as a partnership, an S corporation, or multiple owners of property
are passed through to the partners, members, shareholders, or owners, respectively, pro rata
to each partner, member, shareholder, or owner based on their share of the entity's assets
or as specially allocated in their organizational documents or any other executed document,
as of the last day of the taxable year.
new text end
new text begin Subd. 4. new text end
new text begin Sunset. new text end
new text begin
This section expires January 1, 2031, for taxable years beginning after
December 31, 2030.
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. 40.
Minnesota Statutes 2022, section 290.091, subdivision 2, as amended by Laws
2023, chapter 1, section 18, is amended to read:
Subd. 2.
Definitions.
For purposes of the tax imposed by this section, the following
terms have the meanings given.
(a) "Alternative minimum taxable income" means the sum of the following for the taxable
year:
(1) the taxpayer's federal alternative minimum taxable income as defined in section
55(b)(1)(D) of the Internal Revenue Code;
(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum
taxable income, but excluding:
(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
(ii) the medical expense deduction;
(iii) the casualty, theft, and disaster loss deduction; and
(iv) the impairment-related work expenses of a person with a disability;
(3) for depletion allowances computed under section 613A(c) of the Internal Revenue
Code, with respect to each property (as defined in section 614 of the Internal Revenue Code),
to the extent not included in federal alternative minimum taxable income, the excess of the
deduction for depletion allowable under section 611 of the Internal Revenue Code for the
taxable year over the adjusted basis of the property at the end of the taxable year (determined
without regard to the depletion deduction for the taxable year);
(4) to the extent not included in federal alternative minimum taxable income, the amount
of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue
Code determined without regard to subparagraph (E);
(5) to the extent not included in federal alternative minimum taxable income, the amount
of interest income as provided by section 290.0131, subdivision 2;
(6) the amount of addition required by section 290.0131, subdivisions 9, 10, and 16;
(7) the deduction allowed under section 199A of the Internal Revenue Code, to the extent
not included in the addition required under clause (6); and
(8) to the extent not included in federal alternative minimum taxable income, the amount
of foreign-derived intangible income deducted under section 250 of the Internal Revenue
Code;
less the sum of the amounts determined under the following:
(i) interest income as defined in section 290.0132, subdivision 2;
(ii) an overpayment of state income tax as provided by section 290.0132, subdivision
3, to the extent included in federal alternative minimum taxable income;
(iii) the amount of investment interest paid or accrued within the taxable year on
indebtedness to the extent that the amount does not exceed net investment income, as defined
in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted
in computing federal adjusted gross income;
(iv) amounts subtracted from federal taxable or adjusted gross income as provided by
section 290.0132, subdivisions 7, 9 to 15, 17, 21, 24, 26 to 29, deleted text begin anddeleted text end 31new text begin , 34, and 35new text end ;
(v) the amount of the net operating loss allowed under section 290.095, subdivision 11,
paragraph (c); and
(vi) the amount allowable as a Minnesota itemized deduction under section 290.0122,
subdivision 7.
In the case of an estate or trust, alternative minimum taxable income must be computed
as provided in section 59(c) of the Internal Revenue Code, except alternative minimum
taxable income must be increased by the addition in section 290.0131, subdivision 16.
(b) "Investment interest" means investment interest as defined in section 163(d)(3) of
the Internal Revenue Code.
(c) "Net minimum tax" means the minimum tax imposed by this section.
(d) "Regular tax" means the tax that would be imposed under this chapter (without regard
to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed
under this chapter.
(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income
after subtracting the exemption amount determined under subdivision 3.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2022.
new text end
Sec. 41.
Minnesota Statutes 2022, section 290.17, subdivision 4, is amended to read:
Subd. 4.
Unitary business principle.
(a) If a trade or business conducted wholly within
this state or partly within and partly without this state is part of a unitary business, the entire
new text begin worldwide new text end income of the unitary business is subject to apportionment pursuant to section
290.191. Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary
business is considered to be derived from any particular source and none may be allocated
to a particular place except as provided by the applicable apportionment formula. The
provisions of this subdivision do not apply to business income subject to subdivision 5,
income of an insurance company, or income of an investment company determined under
section 290.36.
(b) The term "unitary business" means business activities or operations which result in
a flow of value between them. The term may be applied within a single legal entity or
between multiple entities and without regard to whether each entity is a sole proprietorship,
a corporation, a partnership or a trust.
(c) Unity is presumed whenever there is unity of ownership, operation, and use, evidenced
by centralized management or executive force, centralized purchasing, advertising,
accounting, or other controlled interaction, but the absence of these centralized activities
will not necessarily evidence a nonunitary business. Unity is also presumed when business
activities or operations are of mutual benefit, dependent upon or contributory to one another,
either individually or as a group.
(d) Where a business operation conducted in Minnesota is owned by a business entity
that carries on business activity outside the state different in kind from that conducted within
this state, and the other business is conducted entirely outside the state, it is presumed that
the two business operations are unitary in nature, interrelated, connected, and interdependent
unless it can be shown to the contrary.
(e) Unity of ownership does not exist when two or more corporations are involved unless
more than 50 percent of the voting stock of each corporation is directly or indirectly owned
by a common owner or by common owners, either corporate or noncorporate, or by one or
more of the member corporations of the group. For this purpose, the term "voting stock"
shall include membership interests of mutual insurance holding companies formed under
section 66A.40.
deleted text begin
(f) The net income and apportionment factors under section 290.191 or 290.20 of foreign
corporations and other foreign entities, but excluding a disqualified captive insurance
company, which are part of a unitary business shall not be included in the net income or
the apportionment factors of the unitary business; except that the income and apportionment
factors of a foreign entity, other than an entity treated as a C corporation for federal income
tax purposes, that are included in the federal taxable income, as defined in section 63 of the
Internal Revenue Code as amended through the date named in section 290.01, subdivision
19, of a domestic corporation, domestic entity, or individual must be included in determining
net income and the factors to be used in the apportionment of net income pursuant to section
290.191 or 290.20. A foreign corporation or other foreign entity which is not included on
a combined report and which is required to file a return under this chapter shall file on a
separate return basis.
deleted text end
deleted text begin (g)deleted text end new text begin (f)new text end For purposes of determining the net income of a unitary business and the factors
to be used in the apportionment of net income pursuant to section 290.191 or 290.20, there
must be included deleted text begin onlydeleted text end the income and apportionment factors of domesticnew text begin and foreignnew text end
corporations or other domesticnew text begin and foreignnew text end entities that are determined to be part of the
unitary business pursuant to this subdivisiondeleted text begin , notwithstanding that foreign corporations or
other foreign entities might be included in the unitary business; except that the income and
apportionment factors of a foreign entity, other than an entity treated as a C corporation for
federal income tax purposes, that is included in the federal taxable income, as defined in
section 63 of the Internal Revenue Code as amended through the date named in section
290.01, subdivision 19, of a domestic corporation, domestic entity, or individual must be
included in determining net income and the factors to be used in the apportionment of net
income pursuant to section 290.191 or 290.20deleted text end new text begin . For foreign corporations and other foreign
entities not subject to a federal income tax filing requirement under United States Code,
title 26, subtitle A, net income must be determined as required under section 290.01,
subdivision 19new text end .
deleted text begin (h)deleted text end new text begin (g)new text end Each corporation or other entity, except a sole proprietorship, that is part of a
unitary business must file combined reports as the commissioner determines. On the reports,
all intercompany transactions between entities included pursuant to paragraph deleted text begin (g)deleted text end new text begin (f)new text end must
be eliminated and the entire net income of the unitary business determined in accordance
with this subdivision is apportioned among the entities by using each entity's Minnesota
factors for apportionment purposes in the numerators of the apportionment formula and the
total factors for apportionment purposes of all entities included pursuant to paragraph deleted text begin (g)deleted text end new text begin
(f)new text end in the denominators of the apportionment formula. Except as otherwise provided by
paragraph (f), all sales of the unitary business made within this state pursuant to section
290.191 or 290.20 must be included on the combined report of a corporation or other entity
that is a member of the unitary business and is subject to the jurisdiction of this state to
impose tax under this chapter.
deleted text begin (i)deleted text end new text begin (h)new text end If a corporation has been divested from a unitary business and is included in a
combined report for a fractional part of the common accounting period of the combined
report:
(1) its income includable in the combined report is its income incurred for that part of
the year determined by proration or separate accounting; and
(2) its sales, property, and payroll included in the apportionment formula must be prorated
or accounted for separately.
deleted text begin (j)deleted text end new text begin (i)new text end For purposes of this subdivision, "insurance company" means an insurance
company, as defined in section 290.01, subdivision 5b, that is not a disqualified captive
insurance company.
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. 42.
Minnesota Statutes 2022, section 290.17, is amended by adding a subdivision to
read:
new text begin Subd. 4a. new text end
new text begin Foreign corporations and other foreign entities. new text end
new text begin
(a) For purposes of imposing
a tax under this chapter, the federal taxable income of a foreign corporation or other foreign
entity must be computed as follows:
new text end
new text begin
(1) a profit and loss statement must be prepared in the currency in which the books of
account of the foreign corporation or other foreign entity are regularly maintained;
new text end
new text begin
(2) except as determined by the commissioner, adjustments must be made to the profit
and loss statement to conform the statement to the accounting principles generally accepted
in the United States for the preparation of those statements;
new text end
new text begin
(3) adjustments must be made to the profit and loss statement to conform it to the tax
accounting standards required by the commissioner;
new text end
new text begin
(4) unless otherwise authorized by the commissioner, the profit and loss statement of
each member of the combined group, and the apportionment factors related to the combined
group, whether domestic or foreign, must be converted into United States dollars; and
new text end
new text begin
(5) income apportioned to this state must be expressed in United States dollars.
new text end
new text begin
(b) Notwithstanding paragraph (a), if the commissioner determines that the information
required in the statements under that paragraph may only be obtained through a burdensome
effort and expense, the commissioner may allow reasonable approximations of the
information.
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. 43.
Minnesota Statutes 2022, section 290.21, subdivision 9, is amended to read:
Subd. 9.
Controlled foreign corporations.
The net income of a deleted text begin domesticdeleted text end new text begin nonunitarynew text end
corporation that is included pursuant to section 951 of the Internal Revenue Code is dividend
income.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2023, except the stricken language is effective the day following final enactment.
new text end
Sec. 44.
Minnesota Statutes 2022, section 297I.20, subdivision 4, is amended to read:
Subd. 4.
Film production credit.
(a) A taxpayer may claim a credit against the premiums
tax imposed under this chapter equal to the amount indicated on the credit certificate
statement issued to the company under section 116U.27. If the amount of the credit exceeds
the taxpayer's liability for tax under this chapter, the excess is a credit carryover to each of
the five succeeding taxable years. The entire amount of the excess unused credit for the
taxable year must be carried first to the earliest of the taxable years to which the credit may
be carried and then to each successive year to which the credit may be carried. This credit
does not affect the calculation of fire state aid under section 477B.03 and police state aid
under section 477C.03.
(b) This subdivision expires January 1, deleted text begin 2025deleted text end new text begin 2033new text end , for taxable years beginning after and
premiums received after December 31, deleted text begin 2024deleted text end new text begin 2032new 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. 45.
Minnesota Statutes 2022, section 514.972, subdivision 5, is amended to read:
Subd. 5.
Access to certain items.
(a) Any occupant may remove from the self-storage
facility personal papers and health aids upon demand made to any of the persons listed in
section 514.976, subdivision 1.
(b) An occupant who provides documentation from a government or nonprofit agency
or legal aid office that the occupant is a recipient of relief based on need, is eligible for legal
aid services, or is a survivor of domestic violence or sexual assault may remove, in addition
to the items provided in paragraph (a), personal clothing of the occupant and the occupant's
dependents and tools of the trade that are necessary for the livelihood of the occupant that
has a market value not to exceed $125 per item.
(c) The occupant shall present a list of the items and may remove the items during the
facility's ordinary business hours prior to the sale authorized by section 514.973. If the
owner unjustifiably denies the occupant access for the purpose of removing the items
specified in this subdivision, the occupant is entitled to request relief from the court for an
order allowing access to the storage space for removal of the specified items. The self-service
storage facility is liable to the occupant for the costs, disbursements, and attorney fees
expended by the occupant to obtain this order.
(d) For the purposes of this subdivision, "relief based on need" includes but is not limited
to receipt of a benefit from the Minnesota family investment program and diversionary
work program, medical assistance, general assistance, emergency general assistance,
Minnesota supplemental aid, Minnesota supplemental aid housing assistance, MinnesotaCare,
Supplemental Security Income, energy assistance, emergency assistance, Supplemental
Nutrition Assistance Program benefits, earned income tax credit, or Minnesota new text begin child and
new text end working family tax credit. Relief based on need can also be proven by providing
documentation from a legal aid organization that the individual is receiving legal aid
assistance, or by providing documentation from a government agency, nonprofit, or housing
assistance program that the individual is receiving assistance due to domestic violence or
sexual assault.
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. 46. new text begin ONE-TIME REFUNDABLE CREDIT PAYMENT.
new text end
new text begin Subdivision 1. new text end
new text begin Credit allowed; eligibility. new text end
new text begin
(a) For taxable years beginning after December
31, 2020, and before January 1, 2022, an individual is allowed a credit against the tax
imposed under Minnesota Statutes, chapter 290. The credit equals $550 for a married
taxpayer filing a joint return and $275 for a single filer, head of household, or married
taxpayer filing a separate return.
new text end
new text begin
(b) For an individual, or a married couple filing a joint income tax return, with a
dependent, as defined in sections 151 and 152 of the Internal Revenue Code, the credit is
increased by $275 per dependent up to a maximum additional credit of $825.
new text end
new text begin
(c) The credit is not available to an individual who:
new text end
new text begin
(1) was not a resident of Minnesota, as defined in Minnesota Statutes, section 290.01,
subdivision 7, during any part of 2021;
new text end
new text begin
(2) is a dependent, as defined in sections 151 and 152 of the Internal Revenue Code, for
2021; or
new text end
new text begin
(3) had adjusted gross income, as defined in Minnesota Statutes, section 290.01,
subdivision 21a, for taxable years beginning in 2021 greater than:
new text end
new text begin
(i) $150,000 for a married taxpayer filing a joint return; and
new text end
new text begin
(ii) $75,000 for all other income tax filers.
new text end
new text begin
(d) For an individual who is a Minnesota resident for only part of 2021, or for a married
couple filing a joint return where one or both individuals were not Minnesota residents for
all of 2021, the credit equals the credit allowed under paragraphs (a) to (c) multiplied by
the percentage calculated under Minnesota Statutes, section 290.06, subdivision 2c, paragraph
(e).
new text end
new text begin
(e) If the amount of the credit under this subdivision exceeds the individual's or the
married couple's liability for tax under Minnesota Statutes, chapter 290, the commissioner
shall refund the excess to the taxpayer.
new text end
new text begin Subd. 2. new text end
new text begin Internal Revenue Code. new text end
new text begin
The definitions in Minnesota Statutes, section 290.01,
apply to this section.
new text end
new text begin Subd. 3. new text end
new text begin Data classification. new text end
new text begin
Data classified as nonpublic data or private data on
individuals, including return information, as defined in Minnesota Statutes, section 270B.01,
subdivision 3, may be shared or disclosed between the commissioner of revenue and any
third-party vendor contracted with under this section, to the extent necessary to administer
this section.
new text end
new text begin Subd. 4. new text end
new text begin Credit not subject to recapture. new text end
new text begin
The commissioner of revenue must not apply,
and must not certify to another agency to apply, a refund based on a credit under this section,
to any unpaid tax or nontax debt.
new text end
new text begin Subd. 5. new text end
new text begin Not income. new text end
new text begin
(a) A refund of a credit under this section is not considered income
in determining Minnesota income tax, Minnesota income tax credits, the Minnesota property
tax refund, or the Minnesota senior citizen property tax deferral.
new text end
new text begin
(b) Notwithstanding any law to the contrary, the credit under this section must not be
considered income, assets, or personal property for purposes of determining eligibility or
recertifying eligibility for:
new text end
new text begin
(1) child care assistance programs under Minnesota Statutes, chapter 119B;
new text end
new text begin
(2) general assistance, Minnesota supplemental aid, and food support under Minnesota
Statutes, chapter 256D;
new text end
new text begin
(3) housing support under Minnesota Statutes, chapter 256I;
new text end
new text begin
(4) the Minnesota family investment program and diversionary work program under
Minnesota Statutes, chapter 256J; and
new text end
new text begin
(5) economic assistance programs under Minnesota Statutes, chapter 256P.
new text end
new text begin
(c) The commissioner of human services must not consider a credit under this section
as income or assets under Minnesota Statutes, section 256B.056, subdivision 1a, paragraph
(a); 3; or 3c, or for persons with eligibility determined under Minnesota Statutes, section
256B.057, subdivision 3, 3a, or 3b.
new text end
new text begin Subd. 6. new text end
new text begin Simplified filing process. 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 may file a return and 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 a filing requirement.
new text end
new text begin Subd. 7. new text end
new text begin Appropriation. new text end
new text begin
The amount necessary to make the refunds based on credits
payable under this section is appropriated to the commissioner of revenue from the general
fund. This appropriation is available until June 30, 2025.
new text end
new text begin Subd. 8. new text end
new text begin Distribution of refunds. new text end
new text begin
To the extent feasible, the commissioner of revenue
must directly distribute any refunds owed as a result of this section to eligible taxpayers
who filed a return for a taxable year beginning after December 31, 2020, or before January
1, 2022. A taxpayer who is eligible for a credit but did not file a return may file a return
and claim the credit, subject to the provisions of Minnesota Statutes, section 289A.40.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2020, and before January 1, 2022.
new text end
Sec. 47. new text begin SUBTRACTION; CERTAIN UNEMPLOYMENT COMPENSATION.
new text end
new text begin
(a) For the purposes of this section, "subtraction" has the meaning given in Minnesota
Statutes, section 290.0132, subdivision 1, and the rules in that subdivision apply for this
section.
new text end
new text begin
(b) Unemployment compensation received by individuals in taxable years beginning
after December 31, 2020, and before January 1, 2022, as a result of the decision issued by
the Minnesota Court of Appeals, 956 N.W. 2d 1, filed February 22, 2021, is a subtraction.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2020, and before January 1, 2022.
new text end
Sec. 48. new text begin EXTENSION OF STATUTE OF LIMITATIONS; CREDIT FOR PARENTS
OF STILLBORN CHILDREN.
new text end
new text begin
Notwithstanding any law to the contrary, a taxpayer whose tax liability changes as a
result of the retroactive changes to Minnesota Statutes, section 290.0685 in this act, may
file an amended return by December 31, 2023. The commissioner may review and assess
the return of a taxpayer covered by this provision for the later of:
new text end
new text begin
(1) the periods under Minnesota Statutes, sections 289A.38, 289A.39, subdivision 3,
and 289A.40; or
new text end
new text begin
(2) one year from the time the amended return is filed as a result of a change in tax
liability under this section.
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. 49. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2022, sections 290.01, subdivision 19i; and 290.0131, subdivision
18,
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
ARTICLE 2
FEDERAL CONFORMITY
Section 1.
Minnesota Statutes 2022, section 289A.02, subdivision 7, as amended by Laws
2023, chapter 1, section 1, is amended to read:
Subd. 7.
Internal Revenue Code.
Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through deleted text begin December
15, 2022deleted text end new text begin March 1, 2023new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment, except
the changes incorporated by federal changes are effective retroactively at the same time the
changes were effective for federal purposes.
new text end
Sec. 2.
Minnesota Statutes 2022, section 290.01, subdivision 19, as amended by Laws
2023, chapter 1, section 4, is amended to read:
Subd. 19.
Net income.
(a) For a trust or estate taxable under section 290.03, and a
corporation taxable under section 290.02, the term "net income" means the federal taxable
income, as defined in section 63 of the Internal Revenue Code of 1986, as amended through
the date named in this subdivision, incorporating the federal effective dates of changes to
the Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in sections 290.0131 to 290.0136.
(b) For an individual, the term "net income" means federal adjusted gross income with
the modifications provided in sections 290.0131, 290.0132, and 290.0135 to 290.0137.
(c) In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:
(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;
(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue
Code must be applied by allowing a deduction for capital gain dividends and exempt-interest
dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code;
and
(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.
(d) The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
(e) The net income of a designated settlement fund as defined in section 468B(d) of the
Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal
Revenue Code.
(f) The Internal Revenue Code of 1986, as amended through deleted text begin December 15, 2022deleted text end new text begin March
1, 2023new text end , applies for taxable years beginning after December 31, 1996.
(g) Except as otherwise provided, references to the Internal Revenue Code in this
subdivision and sections 290.0131 to 290.0136 mean the code in effect for purposes of
determining net income for the applicable year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment, except
the changes incorporated by federal changes are effective retroactively at the same time the
changes were effective for federal purposes.
new text end
Sec. 3.
Minnesota Statutes 2022, section 290.01, subdivision 31, as amended by Laws
2023, chapter 1, section 5, is amended to read:
Subd. 31.
Internal Revenue Code.
Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through deleted text begin December
15, 2022deleted text end new text begin March 1, 2023new text end . Internal Revenue Code also includes any uncodified provision in
federal law that relates to provisions of the Internal Revenue Code that are incorporated
into Minnesota law.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment, except
the changes incorporated by federal changes are effective retroactively at the same time the
changes were effective for federal purposes.
new text end
Sec. 4.
Minnesota Statutes 2022, section 290.06, subdivision 2c, as amended by Laws
2023, chapter 1, section 15, is amended to read:
Subd. 2c.
Schedules of rates for individuals, estates, and trusts.
(a) The income taxes
imposed by this chapter upon married individuals filing joint returns and surviving spouses
as defined in section 2(a) of the Internal Revenue Code must be computed by applying to
their taxable net income the following schedule of rates:
(1) On the first $38,770, 5.35 percent;
(2) On all over $38,770, but not over $154,020, 6.8 percent;
(3) On all over $154,020, but not over $269,010, 7.85 percent;
(4) On all over $269,010, 9.85 percent.
Married individuals filing separate returns, estates, and trusts must compute their income
tax by applying the above rates to their taxable income, except that the income brackets
will be one-half of the above amounts after the adjustment required in subdivision 2d.
(b) The income taxes imposed by this chapter upon unmarried individuals must be
computed by applying to taxable net income the following schedule of rates:
(1) On the first $26,520, 5.35 percent;
(2) On all over $26,520, but not over $87,110, 6.8 percent;
(3) On all over $87,110, but not over $161,720, 7.85 percent;
(4) On all over $161,720, 9.85 percent.
(c) The income taxes imposed by this chapter upon unmarried individuals qualifying as
a head of household as defined in section 2(b) of the Internal Revenue Code must be
computed by applying to taxable net income the following schedule of rates:
(1) On the first $32,650, 5.35 percent;
(2) On all over $32,650, but not over $131,190, 6.8 percent;
(3) On all over $131,190, but not over $214,980, 7.85 percent;
(4) On all over $214,980, 9.85 percent.
(d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax
of any individual taxpayer whose taxable net income for the taxable year is less than an
amount determined by the commissioner must be computed in accordance with tables
prepared and issued by the commissioner of revenue based on income brackets of not more
than $100. The amount of tax for each bracket shall be computed at the rates set forth in
this subdivision, provided that the commissioner may disregard a fractional part of a dollar
unless it amounts to 50 cents or more, in which case it may be increased to $1.
(e) An individual who is not a Minnesota resident for the entire year must compute the
individual's Minnesota income tax as provided in this subdivision. After the application of
the nonrefundable credits provided in this chapter, the tax liability must then be multiplied
by a fraction in which:
(1) the numerator is the individual's Minnesota source federal adjusted gross income as
defined in section 62 of the Internal Revenue Code and increased by:
(i) the additions required under sections 290.0131, subdivisions 2, 6, 8 to 10, 16, deleted text begin anddeleted text end
17,new text begin 19, and 20,new text end and 290.0137, paragraph (a); and reduced by
(ii) the Minnesota assignable portion of the subtraction for United States government
interest under section 290.0132, subdivision 2, the subtractions under sections 290.0132,
subdivisions 9, 10, 14, 15, 17, 18, 27, deleted text begin anddeleted text end 31,new text begin and 32,new text end and 290.0137, paragraph (c), after
applying the allocation and assignability provisions of section 290.081, clause (a), or 290.17;
and
(2) the denominator is the individual's federal adjusted gross income as defined in section
62 of the Internal Revenue Code, increased by:
(i) the additions required under sections 290.0131, subdivisions 2, 6, 8 to 10, 16, deleted text begin anddeleted text end
17,new text begin 19, and 20,new text end and 290.0137, paragraph (a); and reduced by
(ii) the subtractions under sections 290.0132, subdivisions 2, 9, 10, 14, 15, 17, 18, 27,
deleted text begin anddeleted text end 31,new text begin and 32,new text end and 290.0137, paragraph (c).
(f) If an individual who is not a Minnesota resident for the entire year is a qualifying
owner of a qualifying entity that elects to pay tax as provided in section 289A.08, subdivision
7a, paragraph (b), the individual must compute the individual's Minnesota income tax as
provided in paragraph (e), and also must include, to the extent attributed to the electing
qualifying entity:
(1) in paragraph (e), clause (1), item (i), and paragraph (e), clause (2), item (i), the
addition under section 290.0131, subdivision 5; and
(2) in paragraph (e), clause (1), item (ii), and paragraph (e), clause (2), item (ii), the
subtraction under section 290.0132, subdivision 3.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2018.
new text end
Sec. 5.
Minnesota Statutes 2022, section 290A.03, subdivision 15, as amended by Laws
2023, chapter 1, section 20, is amended to read:
Subd. 15.
Internal Revenue Code.
"Internal Revenue Code" means the Internal Revenue
Code of 1986, as amended through deleted text begin December 15, 2022deleted text end new text begin March 1, 2023new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with refunds based on rent
paid in 2023 and property taxes payable in 2024.
new text end
Sec. 6.
Minnesota Statutes 2022, section 291.005, subdivision 1, as amended by Laws
2023, chapter 1, section 21, is amended to read:
Subdivision 1.
Scope.
Unless the context otherwise clearly requires, the following terms
used in this chapter shall have the following meanings:
(1) "Commissioner" means the commissioner of revenue or any person to whom the
commissioner has delegated functions under this chapter.
(2) "Federal gross estate" means the gross estate of a decedent as required to be valued
and otherwise determined for federal estate tax purposes under the Internal Revenue Code,
increased by the value of any property in which the decedent had a qualifying income interest
for life and for which an election was made under section 291.03, subdivision 1d, for
Minnesota estate tax purposes, but was not made for federal estate tax purposes.
(3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986,
as amended through deleted text begin December 15, 2022deleted text end new text begin March 1, 2023new text end .
(4) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
excluding therefrom any property included in the estate which has its situs outside Minnesota,
and (b) including any property omitted from the federal gross estate which is includable in
the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.
(5) "Nonresident decedent" means an individual whose domicile at the time of death
was not in Minnesota.
(6) "Personal representative" means the executor, administrator or other person appointed
by the court to administer and dispose of the property of the decedent. If there is no executor,
administrator or other person appointed, qualified, and acting within this state, then any
person in actual or constructive possession of any property having a situs in this state which
is included in the federal gross estate of the decedent shall be deemed to be a personal
representative to the extent of the property and the Minnesota estate tax due with respect
to the property.
(7) "Resident decedent" means an individual whose domicile at the time of death was
in Minnesota. The provisions of section 290.01, subdivision 7, paragraphs (c) and (d), apply
to determinations of domicile under this chapter.
(8) "Situs of property" means, with respect to:
(i) real property, the state or country in which it is located;
(ii) tangible personal property, the state or country in which it was normally kept or
located at the time of the decedent's death or for a gift of tangible personal property within
three years of death, the state or country in which it was normally kept or located when the
gift was executed;
(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue
Code, owned by a nonresident decedent and that is normally kept or located in this state
because it is on loan to an organization, qualifying as exempt from taxation under section
501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is
deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
(iv) intangible personal property, the state or country in which the decedent was domiciled
at death or for a gift of intangible personal property within three years of death, the state or
country in which the decedent was domiciled when the gift was executed.
For a nonresident decedent with an ownership interest in a pass-through entity with
assets that include real or tangible personal property, situs of the real or tangible personal
property, including qualified works of art, is determined as if the pass-through entity does
not exist and the real or tangible personal property is personally owned by the decedent. If
the pass-through entity is owned by a person or persons in addition to the decedent, ownership
of the property is attributed to the decedent in proportion to the decedent's capital ownership
share of the pass-through entity.
(9) "Pass-through entity" includes the following:
(i) an entity electing S corporation status under section 1362 of the Internal Revenue
Code;
(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
(iii) a single-member limited liability company or similar entity, regardless of whether
it is taxed as an association or is disregarded for federal income tax purposes under Code
of Federal Regulations, title 26, section 301.7701-3; or
(iv) a trust to the extent the property is includable in the decedent's federal gross estate;
but excludes
(v) an entity whose ownership interest securities are traded on an exchange regulated
by the Securities and Exchange Commission as a national securities exchange under section
6 of the Securities Exchange Act, United States Code, title 15, section 78f.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment, except
the changes incorporated by federal changes are effective retroactively at the same time the
changes were effective for federal purposes.
new text end
Sec. 7.
Laws 2023, chapter 1, section 15, the effective date, is amended to read:
EFFECTIVE DATE.
This section is effectivenew text begin retroactivelynew text end for taxable years beginning
after December 31, deleted text begin 2022deleted text end new text begin 2019new 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 REPEALER.
new text end
new text begin
Minnesota Statutes 2022, section 290.0132, subdivision 33,
new text end
new text begin
as added by Laws 2023,
chapter 1, section 12, is 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
ARTICLE 3
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 273.124, subdivision 6, is amended to read:
Subd. 6.
Leasehold cooperatives.
When one or more dwellings or one or more buildings
which each contain several dwelling units is owned by a nonprofit corporation subject to
the provisions of chapter 317A and qualifying under section 501(c)(3) or 501(c)(4) of the
Internal Revenue Code, or a limited partnership which corporation or partnership operates
the property in conjunction with a cooperative association, and has received public financing,
homestead treatment may be claimed by the cooperative association on behalf of the members
of the cooperative for each dwelling unit occupied by a member of the cooperative. The
cooperative association must provide the assessor with the Social Security numbers new text begin or
individual taxpayer identification numbers new text end of those members. To qualify for the treatment
provided by this subdivision, the following conditions must be met:
(a) the cooperative association must be organized under chapter 308A or 308B and all
voting members of the board of directors must be resident tenants of the cooperative and
must be elected by the resident tenants of the cooperative;
(b) the cooperative association must have a lease for occupancy of the property for a
term of at least 20 years, which permits the cooperative association, while not in default on
the lease, to participate materially in the management of the property, including material
participation in establishing budgets, setting rent levels, and hiring and supervising a
management agent;
(c) to the extent permitted under state or federal law, the cooperative association must
have a right under a written agreement with the owner to purchase the property if the owner
proposes to sell it; if the cooperative association does not purchase the property it is offered
for sale, the owner may not subsequently sell the property to another purchaser at a price
lower than the price at which it was offered for sale to the cooperative association unless
the cooperative association approves the sale;
(d) a minimum of 40 percent of the cooperative association's members must have incomes
at or less than 60 percent of area median gross income as determined by the United States
Secretary of Housing and Urban Development under section 142(d)(2)(B) of the Internal
Revenue Code. For purposes of this clause, "member income" means the income of a member
existing at the time the member acquires cooperative membership;
(e) if a limited partnership owns the property, it must include as the managing general
partner a nonprofit organization operating under the provisions of chapter 317A and
qualifying under section 501(c)(3) or 501(c)(4) of the Internal Revenue Code and the limited
partnership agreement must provide that the managing general partner have sufficient powers
so that it materially participates in the management and control of the limited partnership;
(f) prior to becoming a member of a leasehold cooperative described in this subdivision,
a person must have received notice that (1) describes leasehold cooperative property in plain
language, including but not limited to the effects of classification under this subdivision on
rents, property taxes and tax credits or refunds, and operating expenses, and (2) states that
copies of the articles of incorporation and bylaws of the cooperative association, the lease
between the owner and the cooperative association, a sample sublease between the
cooperative association and a tenant, and, if the owner is a partnership, a copy of the limited
partnership agreement, can be obtained upon written request at no charge from the owner,
and the owner must send or deliver the materials within seven days after receiving any
request;
(g) if a dwelling unit of a building was occupied on the 60th day prior to the date on
which the unit became leasehold cooperative property described in this subdivision, the
notice described in paragraph (f) must have been sent by first class mail to the occupant of
the unit at least 60 days prior to the date on which the unit became leasehold cooperative
property. For purposes of the notice under this paragraph, the copies of the documents
referred to in paragraph (f) may be in proposed version, provided that any subsequent
material alteration of those documents made after the occupant has requested a copy shall
be disclosed to any occupant who has requested a copy of the document. Copies of the
articles of incorporation and certificate of limited partnership shall be filed with the secretary
of state after the expiration of the 60-day period unless the change to leasehold cooperative
status does not proceed;
(h) the county attorney of the county in which the property is located must certify to the
assessor that the property meets the requirements of this subdivision;
(i) the public financing received must be from at least one of the following sources:
(1) tax increment financing proceeds used for the acquisition or rehabilitation of the
building or interest rate write-downs relating to the acquisition of the building;
(2) government issued bonds exempt from taxes under section 103 of the Internal Revenue
Code, the proceeds of which are used for the acquisition or rehabilitation of the building;
(3) programs under section 221(d)(3), 202, or 236, of Title II of the National Housing
Act;
(4) rental housing program funds under Section 8 of the United States Housing Act of
1937, as amended, or the market rate family graduated payment mortgage program funds
administered by the Minnesota Housing Finance Agency that are used for the acquisition
or rehabilitation of the building;
(5) low-income housing credit under section 42 of the Internal Revenue Code;
(6) public financing provided by a local government used for the acquisition or
rehabilitation of the building, including grants or loans from (i) federal community
development block grants; (ii) HOME block grants; or (iii) residential rental bonds issued
under chapter 474A; or
(7) other rental housing program funds provided by the Minnesota Housing Finance
Agency for the acquisition or rehabilitation of the building;
(j) at the time of the initial request for homestead classification or of any transfer of
ownership of the property, the governing body of the municipality in which the property is
located must hold a public hearing and make the following findings:
(1) that the granting of the homestead treatment of the apartment's units will facilitate
safe, clean, affordable housing for the cooperative members that would otherwise not be
available absent the homestead designation;
(2) that the owner has presented information satisfactory to the governing body showing
that the savings garnered from the homestead designation of the units will be used to reduce
tenant's rents or provide a level of furnishing or maintenance not possible absent the
designation; and
(3) that the requirements of paragraphs (b), (d), and (i) have been met.
Homestead treatment must be afforded to units occupied by members of the cooperative
association and the units must be assessed as provided in subdivision 3, provided that any
unit not so occupied shall be classified and assessed pursuant to the appropriate class. No
more than three acres of land may, for assessment purposes, be included with each dwelling
unit that qualifies for homestead treatment under this subdivision.
When dwelling units no longer qualify under this subdivision, the current owner must
notify the assessor within 60 days. Failure to notify the assessor within 60 days shall result
in the loss of benefits under this subdivision for taxes payable in the year that the failure is
discovered. For these purposes, "benefits under this subdivision" means the difference in
the net tax capacity of the units which no longer qualify as computed under this subdivision
and as computed under the otherwise applicable law, times the local tax rate applicable to
the building for that taxes payable year. Upon discovery of a failure to notify, the assessor
shall inform the auditor of the difference in net tax capacity for the building or buildings in
which units no longer qualify, and the auditor shall calculate the benefits under this
subdivision. Such amount, plus a penalty equal to 100 percent of that amount, shall then be
demanded of the building's owner. The property owner may appeal the county's determination
by serving copies of a petition for review with county officials as provided in section 278.01
and filing a proof of service as provided in section 278.01 with the Minnesota Tax Court
within 60 days of the date of the notice from the county. The appeal shall be governed by
the Tax Court procedures provided in chapter 271, for cases relating to the tax laws as
defined in section 271.01, subdivision 5; disregarding sections 273.125, subdivision 5, and
278.03, but including section 278.05, subdivision 2. If the amount of the benefits under this
subdivision and penalty are not paid within 60 days, and if no appeal has been filed, the
county auditor shall certify the amount of the benefit and penalty to the succeeding year's
tax list to be collected as part of the property taxes on the affected buildings.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for homestead applications
filed in 2023 and thereafter.
new text end
Sec. 7.
Minnesota Statutes 2022, section 273.124, subdivision 13, is amended to read:
Subd. 13.
Homestead application.
(a) A person who meets the homestead requirements
under subdivision 1 must file a homestead application with the county assessor to initially
obtain homestead classification.
(b) The commissioner shall prescribe the content, format, and manner of the homestead
application required to be filed under this chapter pursuant to section 270C.30. The
application must clearly inform the taxpayer that this application must be signed by all
owners who occupy the property or by the qualifying relative and returned to the county
assessor in order for the property to receive homestead treatment.
(c) Every property owner applying for homestead classification must furnish to the
county assessor the Social Security number new text begin or individual taxpayer identification number new text end of
each occupant who is listed as an owner of the property on the deed of record, the name
and address of each owner who does not occupy the property, and the name and Social
Security number new text begin or individual taxpayer identification number new text end of the spouse of each occupying
owner. The application must be signed by each owner who occupies the property and by
each owner's spouse who occupies the property, or, in the case of property that qualifies as
a homestead under subdivision 1, paragraph (c), by the qualifying relative.
If a property owner occupies a homestead, the property owner's spouse may not claim
another property as a homestead unless the property owner and the property owner's spouse
file with the assessor an affidavit or other proof required by the assessor stating that the
property qualifies as a homestead under subdivision 1, paragraph (e).
Owners or spouses occupying residences owned by their spouses and previously occupied
with the other spouse, either of whom fail to include the other spouse's name and Social
Security number new text begin or individual taxpayer identification number new text end on the homestead application
or provide the affidavits or other proof requested, will be deemed to have elected to receive
only partial homestead treatment of their residence. The remainder of the residence will be
classified as nonhomestead residential. When an owner or spouse's name and Social Security
number new text begin or individual taxpayer identification number new text end appear on homestead applications for
two separate residences and only one application is signed, the owner or spouse will be
deemed to have elected to homestead the residence for which the application was signed.
(d) If residential real estate is occupied and used for purposes of a homestead by a relative
of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for
the property to receive homestead status, a homestead application must be filed with the
assessor. The Social Security number new text begin or individual taxpayer identification number new text end of each
relative occupying the property and the name and Social Security number new text begin or individual
taxpayer identification number new text end of the spouse of a relative occupying the property shall be
required on the homestead application filed under this subdivision. If a different relative of
the owner subsequently occupies the property, the owner of the property must notify the
assessor within 30 days of the change in occupancy. The Social Security number new text begin or individual
taxpayer identification number new text end of a relative occupying the property or the spouse of a relative
occupying the property is private data on individuals as defined by section 13.02, subdivision
12, but may be disclosed to the commissioner of revenue, or, for the purposes of proceeding
under the Revenue Recapture Act to recover personal property taxes owing, to the county
treasurer.
(e) The homestead application shall also notify the property owners that if the property
is granted homestead status for any assessment year, that same property shall remain
classified as homestead until the property is sold or transferred to another person, or the
owners, the spouse of the owner, or the relatives no longer use the property as their
homestead. Upon the sale or transfer of the homestead property, a certificate of value must
be timely filed with the county auditor as provided under section 272.115. Failure to notify
the assessor within 30 days that the property has been sold, transferred, or that the owner,
the spouse of the owner, or the relative is no longer occupying the property as a homestead,
shall result in the penalty provided under this subdivision and the property will lose its
current homestead status.
(f) If a homestead application has not been filed with the county by December 31, the
assessor shall classify the property as nonhomestead for the current assessment year for
taxes payable in the following year, provided that the owner may be entitled to receive the
homestead classification by proper application under section 375.192.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for homestead applications
filed in 2023 and thereafter.
new text end
Sec. 8.
Minnesota Statutes 2022, section 273.124, subdivision 13a, is amended to read:
Subd. 13a.
Occupant list.
At the request of the commissioner, each county must give
the commissioner a list that includes the name and Social Security number new text begin or individual
taxpayer identification number new text end of each occupant of homestead property who is the property
owner, property owner's spouse, qualifying relative of a property owner, or a spouse of a
qualifying relative. The commissioner shall use the information provided on the lists as
appropriate under the law, including for the detection of improper claims by owners, or
relatives of owners, under chapter 290A.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for homestead data provided to the
commissioner in 2024 and thereafter.
new text end
Sec. 9.
Minnesota Statutes 2022, section 273.124, subdivision 13c, is amended to read:
Subd. 13c.
Property lists.
In addition to lists of homestead properties, the commissioner
may ask the counties to furnish lists of all properties and the record owners. The Social
Security numbersnew text begin , individual taxpayer identification numbers,new text end and federal identification
numbers that are maintained by a county or city assessor for property tax administration
purposes, and that may appear on the lists retain their classification as private or nonpublic
data; but may be viewed, accessed, and used by the county auditor or treasurer of the same
county for the limited purpose of assisting the commissioner in the preparation of microdata
samples under section 270C.12. The commissioner shall use the information provided on
the lists as appropriate under the law, including for the detection of improper claims by
owners, or relatives of owners, under chapter 290A.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for homestead data provided to the
commissioner in 2024 and thereafter.
new text end
Sec. 10.
Minnesota Statutes 2022, section 273.124, subdivision 13d, is amended to read:
Subd. 13d.
Homestead data.
On or before April 30 each year beginning in 2007, each
county must provide the commissioner with the following data for each parcel of homestead
property by electronic means as defined in section 289A.02, subdivision 8:
(1) the property identification number assigned to the parcel for purposes of taxes payable
in the current year;
(2) the name and Social Security number new text begin or individual taxpayer identification number
new text end of each occupant of homestead property who is the property owner or qualifying relative
of a property owner, and the spouse of the property owner who occupies homestead property
or spouse of a qualifying relative of a property owner who occupies homestead property;
(3) the classification of the property under section 273.13 for taxes payable in the current
year and in the prior year;
(4) an indication of whether the property was classified as a homestead for taxes payable
in the current year because of occupancy by a relative of the owner or by a spouse of a
relative;
(5) the property taxes payable as defined in section 290A.03, subdivision 13, for the
current year and the prior year;
(6) the market value of improvements to the property first assessed for tax purposes for
taxes payable in the current year;
(7) the assessor's estimated market value assigned to the property for taxes payable in
the current year and the prior year;
(8) the taxable market value assigned to the property for taxes payable in the current
year and the prior year;
(9) whether there are delinquent property taxes owing on the homestead;
(10) the unique taxing district in which the property is located; and
(11) such other information as the commissioner decides is necessary.
The commissioner shall use the information provided on the lists as appropriate under
the law, including for the detection of improper claims by owners, or relatives of owners,
under chapter 290A.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for homestead data provided to the
commissioner in 2024 and thereafter.
new text end
Sec. 11.
Minnesota Statutes 2022, section 273.124, subdivision 14, is amended to read:
Subd. 14.
Agricultural homesteads; special provisions.
(a) Real estate of less than ten
acres that is the homestead of its owner must be classified as class 2a under section 273.13,
subdivision 23, paragraph (a), if:
(1) the parcel on which the house is located is contiguous on at least two sides to (i)
agricultural land, (ii) land owned or administered by the United States Fish and Wildlife
Service, or (iii) land administered by the Department of Natural Resources on which in lieu
taxes are paid under sections 477A.11 to 477A.14 or section 477A.17;
(2) its owner also owns a noncontiguous parcel of agricultural land that is at least 20
acres;
(3) the noncontiguous land is located not farther than four townships or cities, or a
combination of townships or cities from the homestead; and
(4) the agricultural use value of the noncontiguous land and farm buildings is equal to
at least 50 percent of the market value of the house, garage, and one acre of land.
Homesteads initially classified as class 2a under the provisions of this paragraph shall
remain classified as class 2a, irrespective of subsequent changes in the use of adjoining
properties, as long as the homestead remains under the same ownership, the owner owns a
noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use
value qualifies under clause (4). Homestead classification under this paragraph is limited
to property that qualified under this paragraph for the 1998 assessment.
(b)(i) Agricultural property shall be classified as the owner's homestead, to the same
extent as other agricultural homestead property, if all of the following criteria are met:
(1) the agricultural property consists of at least 40 acres including undivided government
lots and correctional 40's;
(2) the owner, the owner's spouse, or a grandchild, child, sibling, or parent of the owner
or of the owner's spouse, is actively farming the agricultural property, either on the person's
own behalf as an individual or on behalf of a partnership operating a family farm, family
farm corporation, joint family farm venture, or limited liability company of which the person
is a partner, shareholder, or member;
(3) both the owner of the agricultural property and the person who is actively farming
the agricultural property under clause (2), are Minnesota residents;
(4) neither the owner nor the spouse of the owner claims another agricultural homestead
in Minnesota; and
(5) neither the owner nor the person actively farming the agricultural property lives
farther than four townships or cities, or a combination of four townships or cities, from the
agricultural property, except that if the owner or the owner's spouse is required to live in
employer-provided housing, the owner or owner's spouse, whichever is actively farming
the agricultural property, may live more than four townships or cities, or combination of
four townships or cities from the agricultural property.
The relationship under this paragraph may be either by blood or marriage.
(ii) Property containing the residence of an owner who owns qualified property under
clause (i) shall be classified as part of the owner's agricultural homestead, if that property
is also used for noncommercial storage or drying of agricultural crops.
(iii) As used in this paragraph, "agricultural property" means class 2a property and any
class 2b property that is contiguous to and under the same ownership as the class 2a property.
(c) Noncontiguous land shall be included as part of a homestead under section 273.13,
subdivision 23, paragraph (a), only if the homestead is classified as class 2a and the detached
land is located in the same township or city, or not farther than four townships or cities or
combination thereof from the homestead. Any taxpayer of these noncontiguous lands must
notify the county assessor that the noncontiguous land is part of the taxpayer's homestead,
and, if the homestead is located in another county, the taxpayer must also notify the assessor
of the other county.
(d) Agricultural land used for purposes of a homestead and actively farmed by a person
holding a vested remainder interest in it must be classified as a homestead under section
273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a, any other
dwellings on the land used for purposes of a homestead by persons holding vested remainder
interests who are actively engaged in farming the property, and up to one acre of the land
surrounding each homestead and reasonably necessary for the use of the dwelling as a home,
must also be assessed class 2a.
(e) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain classified as
agricultural homesteads for subsequent assessments if:
(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of the April 1997 floods;
(2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, or
Wilkin;
(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 1997 assessment year and continue to be used for
agricultural purposes;
(4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles
of one of the parcels of agricultural land that is owned by the taxpayer; and
(5) the owner notifies the county assessor that the relocation was due to the 1997 floods,
and the owner furnishes the assessor any information deemed necessary by the assessor in
verifying the change in dwelling. Further notifications to the assessor are not required if the
property continues to meet all the requirements in this paragraph and any dwellings on the
agricultural land remain uninhabited.
(f) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain classified
agricultural homesteads for subsequent assessments if:
(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of damage caused by a March 29, 1998, tornado;
(2) the property is located in the county of Blue Earth, Brown, Cottonwood, Le Sueur,
Nicollet, Nobles, or Rice;
(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 1998 assessment year;
(4) the dwelling occupied by the owner is located in this state and is within 50 miles of
one of the parcels of agricultural land that is owned by the taxpayer; and
(5) the owner notifies the county assessor that the relocation was due to a March 29,
1998, tornado, and the owner furnishes the assessor any information deemed necessary by
the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the
owner must notify the assessor by December 1, 1998. Further notifications to the assessor
are not required if the property continues to meet all the requirements in this paragraph and
any dwellings on the agricultural land remain uninhabited.
(g) Agricultural property of a family farm corporation, joint family farm venture, family
farm limited liability company, or partnership operating a family farm as described under
subdivision 8 shall be classified homestead, to the same extent as other agricultural homestead
property, if all of the following criteria are met:
(1) the property consists of at least 40 acres including undivided government lots and
correctional 40's;
(2) a shareholder, member, or partner of that entity is actively farming the agricultural
property;
(3) that shareholder, member, or partner who is actively farming the agricultural property
is a Minnesota resident;
(4) neither that shareholder, member, or partner, nor the spouse of that shareholder,
member, or partner claims another agricultural homestead in Minnesota; and
(5) that shareholder, member, or partner does not live farther than four townships or
cities, or a combination of four townships or cities, from the agricultural property.
Homestead treatment applies under this paragraph even if:
(i) the shareholder, member, or partner of that entity is actively farming the agricultural
property on the shareholder's, member's, or partner's own behalf; or
(ii) the family farm is operated by a family farm corporation, joint family farm venture,
partnership, or limited liability company other than the family farm corporation, joint family
farm venture, partnership, or limited liability company that owns the land, provided that:
(A) the shareholder, member, or partner of the family farm corporation, joint family
farm venture, partnership, or limited liability company that owns the land who is actively
farming the land is a shareholder, member, or partner of the family farm corporation, joint
family farm venture, partnership, or limited liability company that is operating the farm;
and
(B) more than half of the shareholders, members, or partners of each family farm
corporation, joint family farm venture, partnership, or limited liability company are persons
or spouses of persons who are a qualifying relative under section 273.124, subdivision 1,
paragraphs (c) and (d).
Homestead treatment applies under this paragraph for property leased to a family farm
corporation, joint farm venture, limited liability company, or partnership operating a family
farm if legal title to the property is in the name of an individual who is a member, shareholder,
or partner in the entity.
(h) To be eligible for the special agricultural homestead under this subdivision, an initial
full application must be submitted to the county assessor where the property is located.
Owners and the persons who are actively farming the property shall be required to complete
only a one-page abbreviated version of the application in each subsequent year provided
that none of the following items have changed since the initial application:
(1) the day-to-day operation, administration, and financial risks remain the same;
(2) the owners and the persons actively farming the property continue to live within the
four townships or city criteria and are Minnesota residents;
(3) the same operator of the agricultural property is listed with the Farm Service Agency;
(4) a Schedule F or equivalent income tax form was filed for the most recent year;
(5) the property's acreage is unchanged; and
(6) none of the property's acres have been enrolled in a federal or state farm program
since the initial application.
The owners and any persons who are actively farming the property must include the
appropriate Social Security numbersnew text begin or individual taxpayer identification numbersnew text end , and sign
and date the application. If any of the specified information has changed since the full
application was filed, the owner must notify the assessor, and must complete a new
application to determine if the property continues to qualify for the special agricultural
homestead. The commissioner of revenue shall prepare a standard reapplication form for
use by the assessors.
(i) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain classified
agricultural homesteads for subsequent assessments if:
(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of damage caused by the August 2007 floods;
(2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele,
Wabasha, or Winona;
(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 2007 assessment year;
(4) the dwelling occupied by the owner is located in this state and is within 50 miles of
one of the parcels of agricultural land that is owned by the taxpayer; and
(5) the owner notifies the county assessor that the relocation was due to the August 2007
floods, and the owner furnishes the assessor any information deemed necessary by the
assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the
owner must notify the assessor by December 1, 2008. Further notifications to the assessor
are not required if the property continues to meet all the requirements in this paragraph and
any dwellings on the agricultural land remain uninhabited.
(j) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 2008 assessment shall remain classified as
agricultural homesteads for subsequent assessments if:
(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of the March 2009 floods;
(2) the property is located in the county of Marshall;
(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 2008 assessment year and continue to be used for
agricultural purposes;
(4) the dwelling occupied by the owner is located in Minnesota and is within 50 miles
of one of the parcels of agricultural land that is owned by the taxpayer; and
(5) the owner notifies the county assessor that the relocation was due to the 2009 floods,
and the owner furnishes the assessor any information deemed necessary by the assessor in
verifying the change in dwelling. Further notifications to the assessor are not required if the
property continues to meet all the requirements in this paragraph and any dwellings on the
agricultural land remain uninhabited.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for homestead applications
filed in 2023 and thereafter.
new text end
Sec. 12.
Minnesota Statutes 2022, section 273.1245, subdivision 1, is amended to read:
Subdivision 1.
Private or nonpublic data.
The following data are private or nonpublic
data as defined in section 13.02, subdivisions 9 and 12, when they are submitted to a county
or local assessor under section 273.124, 273.13, or another section, to support a claim for
the property tax homestead classification under section 273.13, or other property tax
classification or benefit:
(1) Social Security numbers;
new text begin
(2) individual taxpayer identification numbers;
new text end
deleted text begin (2)deleted text end new text begin (3)new text end copies of state or federal income tax returns; and
deleted text begin (3)deleted text end new text begin (4)new text end state or federal income tax return information, including the federal income tax
schedule F.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for homestead applications
filed in 2023 and thereafter.
new text end
Sec. 13.
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. 14.
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 received the exclusion 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. 15.
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. 16.
Minnesota Statutes 2022, section 273.1315, subdivision 2, is amended to read:
Subd. 2.
Class 1b homestead declaration 2009 and thereafter.
(a) Any property owner
seeking classification and assessment of the owner's homestead as class 1b property pursuant
to section 273.13, subdivision 22, paragraph (b), after October 1, 2008, shall file with the
county assessor a class 1b homestead declaration, on a form prescribed by the commissioner
of revenue. The declaration must contain the following information:
(1) the information necessary to verify that, on or before June 30 of the filing year, the
property owner or the owner's spouse satisfies the requirements of section 273.13, subdivision
22, paragraph (b), for class 1b classification; and
(2) any additional information prescribed by the commissioner.
(b) The declaration must be filed on or before October 1 to be effective for property
taxes payable during the succeeding calendar year. The Social Security numbersnew text begin , individual
taxpayer identification numbers,new text end and income and medical information received from the
property owner pursuant to this subdivision are private data on individuals as defined in
section 13.02. If approved by the assessor, the declaration remains in effect until the property
no longer qualifies under section 273.13, subdivision 22, paragraph (b). Failure to notify
the assessor within 30 days that the property no longer qualifies under that paragraph because
of a sale, change in occupancy, or change in the status or condition of an occupant shall
result in the penalty provided in section 273.124, subdivision 13b, computed on the basis
of the class 1b benefits for the property, and the property shall lose its current class 1b
classification.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for homestead applications
filed in 2023 and thereafter.
new text end
Sec. 17.
Minnesota Statutes 2022, section 275.065, subdivision 3, is amended to read:
Subd. 3.
Notice of proposed property taxes.
(a) The county auditor shall prepare and
the county treasurer shall deliver after November 10 and on or before November 24 each
year, by first class mail to each taxpayer at the address listed on the county's current year's
assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer,
the treasurer may send the notice in electronic form or by electronic mail instead of on paper
or by ordinary mail.
(b) The commissioner of revenue shall prescribe the form of the notice.
(c) The notice must inform taxpayers that it contains the amount of property taxes each
taxing authority proposes to collect for taxes payable the following year. In the case of a
town, or in the case of the state general tax, the final tax amount will be its proposed tax.
The notice must clearly state for each city that has a population over 500, county, school
district, regional library authority established under section 134.201, metropolitan taxing
districts as defined in paragraph (i), and fire protection and emergency medical services
special taxing districts established under section 144F.01, the time and place of a meeting
for each taxing authority in which the budget and levy will be discussed and public input
allowed, prior to the final budget and levy determination. The taxing authorities must provide
the county auditor with the information to be included in the notice on or before the time it
certifies its proposed levy under subdivision 1. The public must be allowed to speak at that
meeting, which must occur after November 24 and must not be held before 6:00 p.m. It
must provide anew text begin website address and anew text end telephone number for the taxing authority that taxpayers
may call if they have questions related to the notice and an address where comments will
be received by mail, except that no notice required under this section shall be interpreted
as requiring the printing of a personal telephone number or address as the contact information
for a taxing authority. If a taxing authority does not maintainnew text begin a website ornew text end public offices
where telephone calls can be received by the authority, the authority may inform the county
of the lack of a publicnew text begin website ornew text end telephone number and the county shall not list anew text begin website
ornew text end telephone number for that taxing authority.
(d) The notice must state for each parcel:
(1) the market value of the property as determined under section 273.11, and used for
computing property taxes payable in the following year and for taxes payable in the current
year as each appears in the records of the county assessor on November 1 of the current
year; and, in the case of residential property, whether the property is classified as homestead
or nonhomestead. The notice must clearly inform taxpayers of the years to which the market
values apply and that the values are final values;
(2) the items listed below, shown separately by county, city or town, and state general
tax, agricultural homestead credit under section 273.1384, school building bond agricultural
credit under section 273.1387, voter approved school levy, other local school levy, and the
sum of the special taxing districts, and as a total of all taxing authorities:
(i) the actual tax for taxes payable in the current year; and
(ii) the proposed tax amount.
If the county levy under clause (2) includes an amount for a lake improvement district
as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
must be separately stated from the remaining county levy amount.
In the case of a town or the state general tax, the final tax shall also be its proposed tax
unless the town changes its levy at a special town meeting under section 365.52. If a school
district has certified under section 126C.17, subdivision 9, that a referendum will be held
in the school district at the November general election, the county auditor must note next
to the school district's proposed amount that a referendum is pending and that, if approved
by the voters, the tax amount may be higher than shown on the notice. In the case of the
city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately
from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for
the St. Paul Library Agency must be listed separately from the remaining amount of the
city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be
listed separately from the remaining amount of the county's levy. In the case of a parcel
where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
applies, the proposed tax levy on the captured value or the proposed tax levy on the tax
capacity subject to the areawide tax must each be stated separately and not included in the
sum of the special taxing districts; and
(3) the increase or decrease between the total taxes payable in the current year and the
total proposed taxes, expressed as a percentage.
For purposes of this section, the amount of the tax on homesteads qualifying under the
senior citizens' property tax deferral program under chapter 290B is the total amount of
property tax before subtraction of the deferred property tax amount.
(e) The notice must clearly state that the proposed or final taxes do not include the
following:
(1) special assessments;
(2) levies approved by the voters after the date the proposed taxes are certified, including
bond referenda and school district levy referenda;
(3) a levy limit increase approved by the voters by the first Tuesday after the first Monday
in November of the levy year as provided under section 275.73;
(4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
after the date the proposed taxes are certified;
(5) amounts necessary to pay tort judgments against the taxing authority that become
final after the date the proposed taxes are certified; and
(6) the contamination tax imposed on properties which received market value reductions
for contamination.
(f) Except as provided in subdivision 7, failure of the county auditor to prepare or the
county treasurer to deliver the notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the tax levy.
(g) If the notice the taxpayer receives under this section lists the property as
nonhomestead, and satisfactory documentation is provided to the county assessor by the
applicable deadline, and the property qualifies for the homestead classification in that
assessment year, the assessor shall reclassify the property to homestead for taxes payable
in the following year.
(h) In the case of class 4 residential property used as a residence for lease or rental
periods of 30 days or more, the taxpayer must either:
(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter,
or lessee; or
(2) post a copy of the notice in a conspicuous place on the premises of the property.
The notice must be mailed or posted by the taxpayer by November 27 or within three
days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer
of the address of the taxpayer, agent, caretaker, or manager of the premises to which the
notice must be mailed in order to fulfill the requirements of this paragraph.
(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
districts" means the following taxing districts in the seven-county metropolitan area that
levy a property tax for any of the specified purposes listed below:
(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
473.521, 473.547, or 473.834;
(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
(3) Metropolitan Mosquito Control Commission under section 473.711.
For purposes of this section, any levies made by the regional rail authorities in the county
of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
shall be included with the appropriate county's levy.
(j) The governing body of a county, city, or school district may, with the consent of the
county board, include supplemental information with the statement of proposed property
taxes about the impact of state aid increases or decreases on property tax increases or
decreases and on the level of services provided in the affected jurisdiction. This supplemental
information may include information for the following year, the current year, and for as
many consecutive preceding years as deemed appropriate by the governing body of the
county, city, or school district. It may include only information regarding:
(1) the impact of inflation as measured by the implicit price deflator for state and local
government purchases;
(2) population growth and decline;
(3) state or federal government action; and
(4) other financial factors that affect the level of property taxation and local services
that the governing body of the county, city, or school district may deem appropriate to
include.
The information may be presented using tables, written narrative, and graphic
representations and may contain instruction toward further sources of information or
opportunity for comment.
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. 18.
Minnesota Statutes 2022, section 275.065, subdivision 3b, is amended to read:
Subd. 3b.
Notice of proposed property taxes required supplemental information.
deleted text begin (a)deleted text end
The county auditor must prepare deleted text begin a separate statementdeleted text end new text begin supplemental informationnew text end to be
delivered with the notice of proposed taxes described in subdivision 3. The deleted text begin statementdeleted text end new text begin
informationnew text end must fit on one sheet of paper and contain deleted text begin for each parceldeleted text end :
deleted text begin (1)deleted text end for the county, deleted text begin city or township,deleted text end new text begin all home rule charter or statutory citiesnew text end and school
deleted text begin district in which the parcel liesdeleted text end new text begin districts within the countynew text end , the certified levy for the current
taxes payable year, the proposed levy for taxes payable in the following year, and the increase
or decrease between these two amounts, expressed as a percentagedeleted text begin ;deleted text end andnew text begin each listed separately.
new text end
deleted text begin
(2) summary budget information listed in paragraph (b).
deleted text end
deleted text begin
(b) Summary budget information must contain budget data from the county, city, and
school district that proposes a property tax levy on the parcel for taxes payable the following
year. For the school district, the summary budget data must include the information provided
to the public under section 123B.10, subdivision 1, paragraph (b), for the current year and
prior year. For the county and city, the reported summary budget data must contain the same
information, in the same categories, and in the same format as provided to the Office of the
State Auditor as required by section 6.745. The statement must provide the governmental
revenues and current expenditures information in clauses (1) and (2) for the taxing authority's
budget for taxes payable the following year and the taxing authority's budget from taxes
payable in the current year, as well as the percent change between the two years. The city
must provide the county auditor with the summary budget data at the same time as the
information required under subdivision 3. Only cities with a population of at least 500 are
required to report the data described in this paragraph. If a city with a population over 500
fails to report the required information to the county auditor, the county auditor must list
the city as "budget information not reported" on the portion of the statement dedicated to
the city's budget information. The statement may take the same format as the annual summary
budget report for cities and counties issued by the Office of the State Auditor. The summary
budget data must include:
deleted text end
deleted text begin
(1) a governmental revenues category, including and separately stating:
deleted text end
deleted text begin
(i) "property taxes" defined as property taxes levied on an assessed valuation of real
property and personal property, if applicable, by the city and county, including fiscal
disparities;
deleted text end
deleted text begin
(ii) "special assessments" defined as levies made against certain properties to defray all
or part of the costs of a specific improvement, such as new sewer and water mains, deemed
to benefit primarily those properties;
deleted text end
deleted text begin
(iii) "state general purpose aid" defined as aid received from the state that has no
restrictions on its use, including local government aid, county program aid, and market
value credits; and
deleted text end
deleted text begin
(iv) "state categorical aid" defined as revenues received for a specific purpose, such as
streets and highways, fire relief, and flood control, including but not limited to police and
fire state aid and out-of-home placement aid; and
deleted text end
deleted text begin
(2) a current expenditures category, including and separately stating:
deleted text end
deleted text begin
(i) "general government" defined as administration costs of city or county governments,
including salaries of officials and maintenance of buildings;
deleted text end
deleted text begin
(ii) "public safety" defined as costs related to the protection of persons and property,
such as police, fire, ambulance services, building inspections, animal control, and flood
control;
deleted text end
deleted text begin
(iii) "streets and highways" defined as costs associated with the maintenance and repair
of local highways, streets, bridges, and street equipment, such as patching, seal coating,
street lighting, street cleaning, and snow removal;
deleted text end
deleted text begin
(iv) "sanitation" defined as costs of refuse collection and disposal, recycling, and weed
and pest control;
deleted text end
deleted text begin
(v) "human services" defined as activities designed to provide public assistance and
institutional care for individuals economically unable to provide for themselves;
deleted text end
deleted text begin
(vi) "health" defined as costs of the maintenance of vital statistics, restaurant inspection,
communicable disease control, and various health services and clinics;
deleted text end
deleted text begin
(vii) "culture and recreation" defined as costs of libraries, park maintenance, mowing,
planting, removal of trees, festivals, bands, museums, community centers, cable television,
baseball fields, and organized recreation activities;
deleted text end
deleted text begin
(viii) "conservation of natural resources" defined as the conservation and development
of natural resources, including agricultural and forestry programs and services, weed
inspection services, and soil and water conservation services;
deleted text end
deleted text begin
(ix) "economic development and housing" defined as costs for development and
redevelopment activities in blighted or otherwise economically disadvantaged areas, including
low-interest loans, cleanup of hazardous sites, rehabilitation of substandard housing and
other physical facilities, and other assistance to those wanting to provide housing and
economic opportunity within a disadvantaged area; and
deleted text end
deleted text begin
(x) "all other current expenditures" defined as costs not classified elsewhere, such as
airport expenditures, cemeteries, unallocated insurance costs, unallocated pension costs,
and public transportation costs.
deleted text end
deleted text begin
(c) If a taxing authority reporting this data does not have revenues or expenditures in a
category listed in paragraph (b), then the taxing authority must designate the amount as "0"
for that specific category.
deleted text end
deleted text begin (d)deleted text end The supplemental deleted text begin statementdeleted text end new text begin informationnew text end provided under this subdivision must be
sent in electronic form or by email if the taxpayer requests an electronic version of the notice
of proposed property taxes under subdivision 3, paragraph (a).
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. 19.
Minnesota Statutes 2022, section 275.065, subdivision 4, is amended to read:
Subd. 4.
Costs.
If the reasonable cost of the county auditor's services and the cost of
preparing and mailing the notice required in this section exceed the amount distributed to
the county by the commissioner of revenue to administer this section,new text begin the county may requirenew text end
the taxing authority deleted text begin mustdeleted text end new text begin tonew text end reimburse the county for the excess cost. The excess cost must
be apportioned between taxing jurisdictions as follows:
(1) one-third is allocated to the county;
(2) one-third is allocated to cities and towns within the county; and
(3) one-third is allocated to school districts within the county.
The amounts in clause (2) must be further apportioned among the cities and towns in
the proportion that the number of parcels in the city and town bears to the number of parcels
in all the cities and towns within the county. The amount in clause (3) must be further
apportioned among the school districts in the proportion that the number of parcels in the
school district bears to the number of parcels in all school districts within the county.
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. 20.
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. 21.
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. 22.
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. 23.
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. 24.
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. 25. 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 4
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 2026 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 2022 or subsequent appraised value, if it
is highernew 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 of revenue 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
For aids payable in 2023 and 2024, $22,000,000 is appropriated
in each year from the general fund to the commissioner of revenue to make the payments
required under this section. For aids payable in 2025 and thereafter, $14,000,000 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.24] 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 that 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 7, 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 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. The portion of aid to an eligible taxing jurisdiction that consists of the
initial unit transition amount under subdivision 3, paragraph (a), must be certified on or
before May 1 in the year the aid is payable. The portion of aid to an eligible taxing
jurisdiction that consists of the unit transition amount under subdivision 3, paragraph (b),
must be certified by August 1 of each year for aids payable in the following calendar year.
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.
Minnesota Statutes 2022, section 477A.30, is amended to read:
477A.30 LOCAL HOMELESS PREVENTION AID.
Subdivision 1.
Definitions.
For purposes of this section, the following terms have the
meanings given:
(1) "city" means a statutory or home rule charter city;
(2) "distribution factor" means the total number of students experiencing homelessness
in a county in the current school year and the previous two school years divided by the total
number of students experiencing homelessness in all counties in the current school year and
the previous two school years; and
(3) "families" means families and persons 24 years of age or younger.
Subd. 2.
Purpose.
The purpose of this section is to help local governmentsnew text begin and Tribal
governmentsnew text end ensure no child is homeless within a local jurisdiction by keeping families
from losing housing and helping those experiencing homelessness find housing.
Subd. 3.
new text begin County new text end distribution.
(a) A county's initial local homeless prevention aid
amount equals the greater of: (1) $5,000; or (2)(i) five percent of the money appropriated
deleted text begin to local homeless prevention aiddeleted text end under deleted text begin this sectiondeleted text end new text begin subdivision 6, paragraph (a)new text end , times (ii)
the ratio of the population of the county to the population of all counties. For the purpose
of this paragraph, "population" means the population estimate used to calculate aid under
section 477A.0124 for the same aid payable year.
(b) The amount of the appropriationnew text begin in subdivision 6, paragraph (a),new text end remaining after the
allocation under paragraph (a) must be allocated to counties by multiplying each county's
distribution factor by the total distribution available under this paragraph. Distribution
factors must be based on the most recent counts of students experiencing homelessness in
each county, as certified by the commissioner of education to the commissioner of revenue
by July 1 of the year the aid is certified to the counties under subdivision 5.
(c) A county's total local homeless prevention aid equals the sum of the amounts under
paragraphs (a) and (b).
new text begin Subd. 3a. new text end
new text begin Tribal governments distribution. new text end
new text begin
The total local homeless prevention aid
distributed to Tribal governments equals the amount appropriated under subdivision 6,
paragraph (b).
new text end
Subd. 4.
Use of proceeds.
(a) Counties new text begin and Tribal governments new text end that receive a distribution
under this section must use the proceeds to fund new or existing family homeless prevention
and assistance projects or programs. These projects or programs may be administered by a
county, a group of contiguous counties jointly acting together, a city, a group of contiguous
cities jointly acting together, a deleted text begin Tribedeleted text end new text begin Tribal governmentnew text end , a group of deleted text begin Tribesdeleted text end new text begin Tribal
governmentsnew text end , or a community-based nonprofit organization. Each project or program must
include plans for:
(1) targeting families with children who are eligible for a prekindergarten through grade
12 academic program and are:
(i) living in overcrowded conditions in their current housing;
(ii) paying more than 50 percent of their income for rent; or
(iii) lacking a fixed, regular, and adequate nighttime residence;
(2) targeting unaccompanied youth in need of an alternative residential setting;
(3) connecting families with the social services necessary to maintain the families'
stability in their homes, including but not limited to housing navigation, legal representation,
and family outreach; and
(4) one or more of the following:
(i) providing rental assistance for a specified period of time which may exceed 24 months;
or
(ii) providing support and case management services to improve housing stability,
including but not limited to housing navigation and family outreach.
(b) deleted text begin Counties may choose not to spend all or a portion of the distribution under this
section. Any unspent funds must be returned to the commissioner of revenue by December
31 of the year following the year that the aid was received. Any funds returned to the
commissioner under this paragraph must be added to the overall distribution of aids certified
under this section in the following year. Any unspent funds returned to the commissioner
after the expiration under subdivision 8 are canceled to the general funddeleted text end new text begin By December 31
of the calendar year following the calendar year that the aid was received, any funds unspent
by a county under this section must be sent to the Continuum of Care of which the county
is a membernew text end .
Subd. 5.
Payments.
The commissioner of revenue must compute the amount of local
homeless prevention aid payable to each countynew text begin and Tribal governmentnew text end under this section.
On or before August 1 of each year, the commissioner shall certify the amount to be paid
to each county new text begin and Tribal government new text end in the following year. The commissioner shall pay
local homeless prevention aid annually at the times provided in section 477A.015.new text begin For aids
payable in 2023 only, the commissioner must recalculate and recertify the aid under this
section by July 15, 2023.
new text end
Subd. 6.
Appropriation.
deleted text begin $20,000,000deleted text end new text begin (a) $35,200,000new text end is annually appropriated from
the general fund to the commissioner of revenue to make payments new text begin to counties new text end required
under this section.
new text begin
(b) $4,800,000 is annually appropriated from the general fund to the commissioner of
revenue to make payments to Tribal governments required under this section.
new text end
Subd. 7.
Report.
(a) No later than January 15, 2025, the commissioner of revenue must
produce a report on projects and programs funded by countiesnew text begin and Tribal governmentsnew text end under
this section. The report must include a list of the projects and programs, the number of
people served by each, and an assessment of how each project and program impacts people
who are currently experiencing homelessness or who are at risk of experiencing
homelessness, as reported by the countiesnew text begin and Tribal governmentsnew text end to the commissioner by
December 31 each year on a form prescribed by the commissioner. The commissioner must
provide a copy of the report to the chairs and ranking minority members of the legislative
committees with jurisdiction over property taxes and services for persons experiencing
homelessness.
(b) The report in paragraph (a) must be updated every two years and the commissioner
of revenue must provide copies of the updated reports to the chairs and ranking minority
members of the legislative committees with jurisdiction over property taxes and services
for persons experiencing homelessness by January 15 of the year the report is due. Report
requirements under this subdivision expire following the report which includes the final
distribution preceding the expiration in subdivision 8.
Subd. 8.
Expiration.
Distributions under this section expire after aids payable in deleted text begin 2028deleted text end new text begin
2031new text end have been distributed.
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. 21.
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. 22.
new text begin
[477A.35] LOCAL AFFORDABLE HOUSING AID.
new text end
new text begin Subdivision 1. new text end
new text begin Purpose. new text end
new text begin
The purpose of this section is to help eligible Tribal Nations
and local governments to develop and preserve affordable housing within their jurisdictions
in order to keep families from losing housing and to help those experiencing homelessness
find housing.
new text end
new text begin Subd. 2. new text end
new text begin Definitions. new text end
new text begin
For the purposes of this section, the following terms have the
meanings given:
new text end
new text begin
(1) "city distribution factor" means the number of households in a tier I city that are
cost-burdened divided by the total number of households that are cost-burdened in Minnesota
tier I cities. The number of cost-burdened households shall be determined using the most
recent estimates or experimental estimates provided by the American Community Survey
of the United States Census Bureau as of May 1 of the aid calculation year;
new text end
new text begin
(2) "cost-burdened household" means a household in which gross rent is 30 percent or
more of household income or in which homeownership costs are 30 percent or more of
household income;
new text end
new text begin
(3) "county distribution factor" means the number of households in a county that are
cost-burdened divided by the total number of households in Minnesota that are cost-burdened.
The number of cost-burdened households shall be determined using the most recent estimates
or experimental estimates provided by the American Community Survey of the United
States Census Bureau as of May 1 of the aid calculation year;
new text end
new text begin
(4) "population" has the meaning given in section 477A.011, subdivision 3;
new text end
new text begin
(5) "tier I city" means a statutory or home rule charter city that is a city of the first,
second, or third class; and
new text end
new text begin
(6) "tier II city" means a statutory or home rule charter city that is a city of the fourth
class.
new text end
new text begin Subd. 3. new text end
new text begin Distribution. new text end
new text begin
(a) Each county shall receive the sum of:
new text end
new text begin
(1) $6,000; plus
new text end
new text begin
(2) the product of:
new text end
new text begin
(i) the county distribution factor; multiplied by
new text end
new text begin
(ii) the total amount available to counties under this section minus the product of clause
(1) multiplied by the number of Minnesota counties.
new text end
new text begin
(b) The commissioner of revenue shall determine the amount of funding available to a
tier I city under this section by multiplying the city's city distribution factor and the amount
of funding available to tier I cities under this section.
new text end
new text begin Subd. 4. new text end
new text begin Grants to tier II cities. new text end
new text begin
(a) The commissioner of the Minnesota Housing Finance
Agency shall establish a program to award grants of at least $25,000 to tier II cities. The
agency shall develop program guidelines and criteria in consultation with the League of
Minnesota Cities.
new text end
new text begin
(b) The agency shall attempt to award grants in approximately equal amounts to tier II
cities outside and within the metropolitan area. Among comparable proposals, the agency
shall prioritize grants to tier II cities that have a higher proportion of cost-burdened
households.
new text end
new text begin
(c) A grantee must use its grant on a qualifying project.
new text end
new text begin
(d) In making grants, the agency shall determine the circumstances, terms, and conditions
under which all or any portion thereof will be repaid and shall determine the appropriate
security should repayment be required. Any repaid funds shall be returned to the account
or accounts established pursuant to paragraph (e).
new text end
new text begin
(e) The agency shall establish a bookkeeping account or accounts in the housing
development fund for money distributed to the agency for grants under this subdivision. By
May 1 of each year, the Minnesota Housing Finance Agency shall report to the Department
of Revenue on the amount in the account or accounts.
new text end
new text begin Subd. 5. new text end
new text begin Qualifying projects. new text end
new text begin
(a) Qualifying projects shall include projects designed
for the purpose of construction, acquisition, rehabilitation, demolition or removal of existing
structures, construction financing, permanent financing, interest rate reduction, refinancing,
and gap financing of housing to provide affordable housing to households that have incomes
which do not exceed, for homeownership projects, 115 percent of the greater of state or
area median income as determined by the United States Department of Housing and Urban
Development, and for rental housing projects, 80 percent of the greater of state or area
median income as determined by the United States Department of Housing and Urban
Development, except that the housing developed or rehabilitated with funds under this
section must be affordable to the local work force.
new text end
new text begin
(b) Gap financing is either:
new text end
new text begin
(1) the difference between the costs of the property, including acquisition, demolition,
rehabilitation, and construction, and the market value of the property upon sale; or
new text end
new text begin
(2) the difference between the cost of the property and the amount the targeted household
can afford for housing, based on industry standards and practices.
new text end
new text begin
(c) If money distributed under this section is used for demolition or removal of existing
structures, the cleared land must be used for the construction of housing to be owned or
rented by persons who meet the income limits of paragraph (a).
new text end
new text begin
(d) For a nonmetropolitan county or for a city that is not located in a metropolitan county,
as defined by section 473.121, subdivision 4, a qualifying project shall include a rental
housing project exceeding the income limits established in paragraph (a) if the applicable
unit of local government submits, with the annual report required under subdivision 7, the
following:
new text end
new text begin
(1) a letter of support from at least one employer of at least 20 full-time employees that
is located either inside or within 25 miles of the applicable local government. The letter
must indicate that the lack of available housing has impeded the employer's ability to recruit
and hire employees, the number of full-time employees, the median wage of full-time
employees, and the distance from the applicable local government; and
new text end
new text begin
(2) a signed resolution from the applicable local government identifying the project
being developed and certifying that the project will be affordable to employees earning
median wages from the employer or employers who provided letters of support.
new text end
new text begin
(e) For a Tribal Nation, a qualifying project includes emergency rental assistance for a
household earning less than 80 percent of statewide median household income, as determined
by the United States Department of Housing and Urban Development, as adjusted for
household size.
new text end
new text begin Subd. 6. new text end
new text begin Use of proceeds. new text end
new text begin
(a) Any funds distributed under this section must be spent on
a qualifying project. If a tier I city or county demonstrates to the Minnesota Housing Finance
Agency that the tier I city or county cannot expend funds on a qualifying project by the
deadline imposed by paragraph (b) due to factors outside the control of the tier I city or
county, funds shall be considered spent on a qualifying project if the funds are transferred
to a local housing trust fund. Funds transferred to a local housing trust fund must be spent
on a project or household that meets the affordability requirements of subdivision 5,
paragraph (a).
new text end
new text begin
(b) Any funds must be returned to the commissioner of revenue if the funds are not spent
by December 31 in the third year following the year after the aid was received.
new text end
new text begin Subd. 7. new text end
new text begin Administration. new text end
new text begin
(a) The commissioner of revenue must compute the amount
of aid payable to each aid recipient under this section. Beginning with aids payable in
calendar year 2024, before computing the amount of aid for counties and after receiving
the report required by subdivision 4, paragraph (e), the commissioner shall compute the
amount necessary to increase the amount in the account or accounts established under that
paragraph to $3,400,000. The amount calculated under the preceding sentence shall be
deducted from the amount available to counties for the purposes of certifying the amount
of aid to be paid to counties in the following year. By August 1 of each year, the
commissioner must certify the amount to be paid to each aid recipient in the following year.
The commissioner must pay local affordable housing aid annually at the times provided in
section 477A.015. Before paying the first installment of aid annually, the commissioner of
revenue shall transfer to the Minnesota Housing Finance Agency from the funds available
for counties, for deposit in the account or accounts established under subdivision 4, paragraph
(e), the amount computed in the prior year to be necessary to increase the amount in the
account or accounts established under that paragraph to $3,400,000.
new text end
new text begin
(b) Beginning in 2025, aid recipients shall submit a report annually, no later than
December 1 of each year, to the Minnesota Housing Finance Agency. The report shall
include documentation of the location of any unspent funds distributed under this section
and of qualifying projects completed or planned with funds under this section. If an aid
recipient fails to submit a report, fails to spend funds within the timeline imposed under
subdivision 6, paragraph (b), or uses funds for a project that does not qualify under this
section, the Minnesota Housing Finance Agency shall notify the Department of Revenue
and the aid recipient must repay funds under paragraph (c) by February 15 of the following
year.
new text end
new text begin
(c) By May 15, after receiving notice from the Minnesota Housing Finance Agency, an
aid recipient must repay to the commissioner of revenue funds the aid recipient received
under this section if the aid recipient:
new text end
new text begin
(1) fails to spend the funds within the time allowed under subdivision 6, paragraph (b);
new text end
new text begin
(2) spends the funds on anything other than a qualifying project; or
new text end
new text begin
(3) fails to submit a report documenting use of the funds.
new text end
new text begin
(d) The commissioner of revenue must stop distributing funds to an aid recipient that
the Minnesota Housing Finance Agency reports to have, in three consecutive years, failed
to use funds, misused funds, or failed to report on its use of funds.
new text end
new text begin
(e) The commissioner may resume distributing funds to an aid recipient to which the
commissioner has stopped payments once the Minnesota Housing Finance Agency certifies
that the aid recipient has submitted documentation of plans for a qualifying project.
new text end
new text begin
(f) By June 1, any funds repaid to the commissioner of revenue by tier I cities under
paragraph (c) must be added to the overall distribution of aids certified under this section
for tier I cities in the following year. By June 1, any funds repaid to the commissioner of
revenue by counties under paragraph (c) must be added to the overall distribution of aids
certified under this section for counties in the following year. By June 1, any funds repaid
to the commissioner of revenue by Tribal Nations under paragraph (c) must be added to the
overall distribution of aids certified under this section for Tribal Nations in the following
year.
new text end
new text begin
(g) In order to receive a distribution under this section, a Tribal Nation must certify to
the commissioner of revenue the most recent estimate of the total number of enrolled
members of the Tribal Nation. The information must be annually certified by March 1 in
the form prescribed by the commissioner of revenue.
new text end
new text begin Subd. 8. new text end
new text begin County consultation with cities. new text end
new text begin
A county that receives funding under this
section shall regularly consult with the cities in the jurisdictions of which its qualifying
projects are planned or located.
new text end
new text begin Subd. 9. new text end
new text begin Appropriations. new text end
new text begin
(a) $24,000,000 is annually appropriated from the general
fund to the commissioner of revenue to make payments to counties as required under this
section.
new text end
new text begin
(b) $6,800,000 is annually appropriated from the general fund to the commissioner of
revenue to make payments to tier I cities as required under this section.
new text end
new text begin
(c) $4,200,000 is annually appropriated from the general fund to the commissioner of
revenue to make payments to eligible Tribal Nations as required under this section.
new text end
new text begin
(d) In fiscal years 2024 and 2025 only, an additional $10,200,000 is annually appropriated
from the general fund to the commissioner of revenue to make payments to counties as
required under this section. In fiscal years 2024 and 2025 only, an additional $3,000,000 is
annually appropriated from the general fund to the commissioner of revenue to make
payments to tier I cities as required under this section. In fiscal years 2024 and 2025 only,
an additional $1,800,000 is annually appropriated from the general fund to the commissioner
of revenue to make payments to eligible Tribal Nations as required under this section. In
fiscal years 2024 and 2025 only, the commissioner shall transfer from the funds available
to counties to the Minnesota Housing Finance Agency a sum sufficient to increase the
amount in the account or accounts established under subdivision 4, paragraph (e), to
$4,900,000. For aids payable in 2023 only, the commissioner may compute the amount of
aid to be paid to aid recipients as late as August 1, 2023, and may make payments of aid
under this section in one installment on December 26.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with aids payable in calendar
year 2023.
new text end
Sec. 23.
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. 24. new text begin STUDY OF STATE-OWNED LAKESHORE.
new text end
new text begin
No later than January 31, 2025, 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, as required under Minnesota Statutes, section 273.18, paragraph (b),
aggregated by parcels abutting lakes identified by a Department of Natural Resources
Division of Waters Lake Number and by parcels not abutting lakes identified by a Department
of Natural Resources Division of Waters Lake Number. Counties must report to the
commissioner of revenue any necessary data by December 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,
2025.
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 ONETIME INCREASE IN THE RENTER'S CREDIT AND HOMESTEAD
CREDIT STATE REFUND.
new text end
new text begin Subdivision 1. new text end
new text begin Homestead credit refund. new text end
new text begin
For claims filed based on taxes payable in
2023, the commissioner shall increase by 13.8 percent the refund otherwise payable under
Minnesota Statutes, section 290A.04, subdivision 2.
new text end
new text begin Subd. 2. new text end
new text begin Renter's credit increase. new text end
new text begin
For claims filed based on rent paid in 2022, the
commissioner shall increase by 13.8 percent the refund otherwise payable under Minnesota
Statutes, section 290A.04, subdivision 2a.
new text end
new text begin Subd. 3. new text end
new text begin No notification of appeal rights. new text end
new text begin
In adjusting homestead credit refunds and
renter property tax refunds under this section, the commissioner is not required to provide
information concerning appeal rights that ordinarily must be provided whenever the
commissioner adjusts refunds payable under Minnesota Statutes, chapter 290. Taxpayers
retain all rights to appeal adjustments under this section.
new text end
new text begin Subd. 4. new text end
new text begin Appropriation. new text end
new text begin
The amount necessary to make the payments required under
this section is 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 only for refunds based on rent paid in
2022 and property taxes payable in 2023.
new text end
Sec. 26. new text begin TARGETING PROPERTY TAX REFUND; TEMPORARY INCREASE
FOR PROPERTY TAXES PAYABLE IN 2023.
new text end
new text begin
Notwithstanding any law to the contrary, for refunds based on property taxes payable
in 2023, the refund calculated under Minnesota Statutes, section 290A.04, subdivision 2h,
must be calculated by substituting:
new text end
new text begin
(1) six percent for 12 percent; and
new text end
new text begin
(2) $2,500 for $1,000.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for refunds based on property taxes
payable in 2023 only.
new text end
Sec. 27. 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. 28. 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. 29. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2022, sections 477A.011, subdivisions 30a, 38, 42, and 45; 477A.013,
subdivision 13; and 477A.16, subdivisions 1, 2, and 3,
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 5
SALES AND USE TAXES
Section 1.
Minnesota Statutes 2022, section 297A.61, is amended by adding a subdivision
to read:
new text begin Subd. 59. new text end
new text begin Cannabis. new text end
new text begin
"Cannabis" means any species of the genus cannabis plant, or any
mixture or preparation of any species of the genus cannabis plant, including whole plant
extracts and resins.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment, except
if a bill styled as H.F. No. 100 is finally enacted at the 2023 regular session then this section
does not take effect.
new text end
Sec. 2.
Minnesota Statutes 2022, section 297A.61, is amended by adding a subdivision to
read:
new text begin Subd. 60. new text end
new text begin Adult-use cannabis. new text end
new text begin
"Adult-use cannabis" means cannabis, including cannabis
extracts and resins, that produces or is advertised as producing intoxicating or mood-altering
effects when consumed by any route of administration. Adult-use cannabis does not include
a product dispensed by a registered medical cannabis manufacturer under sections 152.22
to 152.37.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment, except
if a bill styled as H.F. No. 100 is finally enacted at the 2023 regular session then this section
does not take effect.
new text end
Sec. 3.
Minnesota Statutes 2022, section 297A.61, is amended by adding a subdivision to
read:
new text begin Subd. 61. new text end
new text begin Adult-use cannabis product. new text end
new text begin
"Adult-use cannabis product" means a cannabis
product that produces or is advertised as producing intoxicating or mood-altering effects
when consumed by any route of administration. Adult-use cannabis product does not include
a product dispensed by a registered medical cannabis manufacturer under sections 152.22
to 152.37.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment, except
if a bill styled as H.F. No. 100 is finally enacted at the 2023 regular session then this section
does not take effect.
new text end
Sec. 4.
Minnesota Statutes 2022, section 297A.67, subdivision 2, is amended to read:
Subd. 2.
Food and food ingredients.
Except as otherwise provided in this subdivision,
food and food ingredients are exempt. For purposes of this subdivision, "food" and "food
ingredients" mean substances, whether in liquid, concentrated, solid, frozen, dried, or
dehydrated form, that are sold for ingestion or chewing by humans and are consumed for
their taste or nutritional value. Food and food ingredients exempt under this subdivision do
not include candy, soft drinks, dietary supplements, and prepared foods. Food and food
ingredients do not include alcoholic beverages and tobacco. new text begin Food and food ingredients do
not include adult-use cannabis and adult-use cannabis products. new text end For purposes of this
subdivision, "alcoholic beverages" means beverages that are suitable for human consumption
and contain one-half of one percent or more of alcohol by volume. For purposes of this
subdivision, "tobacco" means cigarettes, cigars, chewing or pipe tobacco, or any other item
that contains tobacco. For purposes of this subdivision, "dietary supplements" means any
product, other than tobacco, intended to supplement the diet that:
(1) contains one or more of the following dietary ingredients:
(i) a vitamin;
(ii) a mineral;
(iii) an herb or other botanical;
(iv) an amino acid;
(v) a dietary substance for use by humans to supplement the diet by increasing the total
dietary intake; and
(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
described in items (i) to (v);
(2) is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form,
or if not intended for ingestion in such form, is not represented as conventional food and is
not represented for use as a sole item of a meal or of the diet; and
(3) is required to be labeled as a dietary supplement, identifiable by the supplement facts
box found on the label and as required pursuant to Code of Federal Regulations, title 21,
section 101.36.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment, except
if a bill styled as H.F. No. 100 is finally enacted at the 2023 regular session then this section
does not take effect.
new text end
Sec. 5.
Minnesota Statutes 2022, section 297A.67, subdivision 7, is amended to read:
Subd. 7.
Drugs; medical devices.
(a) Sales of the following drugs and medical devices
for human use are exempt:
(1) drugs, including over-the-counter drugs;
(2) single-use finger-pricking devices for the extraction of blood and other single-use
devices and single-use diagnostic agents used in diagnosing, monitoring, or treating diabetes;
(3) insulin and medical oxygen for human use, regardless of whether prescribed or sold
over the counter;
(4) prosthetic devices;
(5) durable medical equipment for home use only;
(6) mobility enhancing equipment;
(7) prescription corrective eyeglasses; and
(8) kidney dialysis equipment, including repair and replacement parts.
(b) Items purchased in transactions covered by:
(1) Medicare as defined under title XVIII of the Social Security Act, United States Code,
title 42, section 1395, et seq.; or
(2) Medicaid as defined under title XIX of the Social Security Act, United States Code,
title 42, section 1396, et seq.
(c) For purposes of this subdivision:
(1) "Drug" means a compound, substance, or preparation, and any component of a
compound, substance, or preparation, other than food and food ingredients, dietary
supplements, new text begin adult-use cannabis, adult-use cannabis products, new text end or alcoholic beverages that
is:
(i) recognized in the official United States Pharmacopoeia, official Homeopathic
Pharmacopoeia of the United States, or official National Formulary, and supplement to any
of them;
(ii) intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease;
or
(iii) intended to affect the structure or any function of the body.
(2) "Durable medical equipment" means equipment, including repair and replacement
parts, including single-patient use items, but not including mobility enhancing equipment,
that:
(i) can withstand repeated use;
(ii) is primarily and customarily used to serve a medical purpose;
(iii) generally is not useful to a person in the absence of illness or injury; and
(iv) is not worn in or on the body.
For purposes of this clause, "repair and replacement parts" includes all components or
attachments used in conjunction with the durable medical equipment, including repair and
replacement parts which are for single patient use only.
(3) "Mobility enhancing equipment" means equipment, including repair and replacement
parts, but not including durable medical equipment, that:
(i) is primarily and customarily used to provide or increase the ability to move from one
place to another and that is appropriate for use either in a home or a motor vehicle;
(ii) is not generally used by persons with normal mobility; and
(iii) does not include any motor vehicle or equipment on a motor vehicle normally
provided by a motor vehicle manufacturer.
(4) "Over-the-counter drug" means a drug that contains a label that identifies the product
as a drug as required by Code of Federal Regulations, title 21, section 201.66. The label
must include a "drug facts" panel or a statement of the active ingredients with a list of those
ingredients contained in the compound, substance, or preparation. Over-the-counter drugs
do not include grooming and hygiene products, regardless of whether they otherwise meet
the definition. "Grooming and hygiene products" are soaps, cleaning solutions, shampoo,
toothpaste, mouthwash, antiperspirants, and suntan lotions and sunscreens.
(5) "Prescribed" and "prescription" means a direction in the form of an order, formula,
or recipe issued in any form of oral, written, electronic, or other means of transmission by
a duly licensed health care professional.
(6) "Prosthetic device" means a replacement, corrective, or supportive device, including
repair and replacement parts, worn on or in the body to:
(i) artificially replace a missing portion of the body;
(ii) prevent or correct physical deformity or malfunction; or
(iii) support a weak or deformed portion of the body.
Prosthetic device does not include corrective eyeglasses.
(7) "Kidney dialysis equipment" means equipment that:
(i) is used to remove waste products that build up in the blood when the kidneys are not
able to do so on their own; and
(ii) can withstand repeated use, including multiple use by a single patient, notwithstanding
the provisions of clause (2).
(8) A transaction is covered by Medicare or Medicaid if any portion of the cost of the
item purchased in the transaction is paid for or reimbursed by the federal government or
the state of Minnesota pursuant to the Medicare or Medicaid program, by a private insurance
company administering the Medicare or Medicaid program on behalf of the federal
government or the state of Minnesota, or by a managed care organization for the benefit of
a patient enrolled in a prepaid program that furnishes medical services in lieu of conventional
Medicare or Medicaid coverage pursuant to agreement with the federal government or the
state of Minnesota.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment, except
if a bill styled as H.F. No. 100 is finally enacted at the 2023 regular session then this section
does not take effect.
new text end
Sec. 6.
Minnesota Statutes 2022, section 297A.68, subdivision 25, is amended to read:
Subd. 25.
Sale of property used in a trade or business.
(a) The sale of tangible personal
property primarily used in a trade or business is exempt if the sale is not made in the normal
course of business of selling that kind of property and if one of the following conditions is
satisfied:
(1) the sale occurs in a transaction subject to or described in section 118, 331, 332, 336,
337, 338, 351, 355, 368, 721, 731, 1031, or 1033 of the Internal Revenue Code, as amended
through December 16, 2016;
(2) the sale is between members of a controlled group as defined in section 1563(a) of
the Internal Revenue Code;
new text begin
(3) the sale is between a sole member of a disregarded limited liability company and the
disregarded limited liability company;
new text end
deleted text begin (3)deleted text end new text begin (4)new text end the sale is a sale of farm machinery;
deleted text begin (4)deleted text end new text begin (5)new text end the sale is a farm auction sale;
deleted text begin (5)deleted text end new text begin (6)new text end the sale is a sale of substantially all of the assets of a trade or business; or
deleted text begin (6)deleted text end new text begin (7)new text end the total amount of gross receipts from the sale of trade or business property made
during the calendar month of the sale and the preceding 11 calendar months does not exceed
$1,000.
The use, storage, distribution, or consumption of tangible personal property acquired as
a result of a sale exempt under this subdivision is also exempt.
(b) For purposes of this subdivision, the following terms have the meanings given.
new text begin
(1) "Disregarded limited liability company" means a limited liability company that is
disregarded as an entity separate from its owner under the Internal Revenue Code.
new text end
deleted text begin (1)deleted text end new text begin (2)new text end A "farm auction" is a public auction conducted by a licensed auctioneer if
substantially all of the property sold consists of property used in the trade or business of
farming and property not used primarily in a trade or business.
deleted text begin (2)deleted text end new text begin (3)new text end "Trade or business" includes the assets of a separate division, branch, or
identifiable segment of a trade or business if, before the sale, the income and expenses
attributable to the separate division, branch, or identifiable segment could be separately
ascertained from the books of account or record (the lease or rental of an identifiable segment
does not qualify for the exemption).
deleted text begin (3)deleted text end new text begin (4)new text end A "sale of substantially all of the assets of a trade or business" must occur as a
single transaction or a series of related transactions within the 12-month period beginning
on the date of the first sale of assets intended to qualify for the exemption provided in
paragraph (a), clause (5).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2023.
new text end
Sec. 7.
Minnesota Statutes 2022, section 297A.70, subdivision 2, is amended to read:
Subd. 2.
Sales to government.
(a) All sales, except those listed in paragraph (b), to the
following governments and political subdivisions, or to the listed agencies or instrumentalities
of governments and political subdivisions, are exempt:
(1) the United States and its agencies and instrumentalities;
(2) school districts, local governments, the University of Minnesota, state universities,
community colleges, technical colleges, state academies, the Perpich Minnesota Center for
Arts Education, and an instrumentality of a political subdivision that is accredited as an
optional/special function school by the North Central Association of Colleges and Schools;
(3) hospitals and nursing homes owned and operated by political subdivisions of the
state of tangible personal property and taxable services used at or by hospitals and nursing
homes;
(4) notwithstanding paragraph (d), the sales and purchases by the Metropolitan Council
of vehicles and repair parts to equip operations provided for in section 473.4051 are exempt
through December 31, 2016;
(5) other states or political subdivisions of other states, if the sale would be exempt from
taxation if it occurred in that state; and
(6) public libraries, public library systems, multicounty, multitype library systems as
defined in section 134.001, county law libraries under chapter 134A, state agency libraries,
the state library under section 480.09, and the Legislative Reference Library.
(b) This exemption does not apply to the sales of the following products and services:
(1) building, construction, or reconstruction materials purchased by a contractor or a
subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed
maximum price covering both labor and materials for use in the construction, alteration, or
repair of a building or facility;
(2) construction materials purchased by tax exempt entities or their contractors to be
used in constructing buildings or facilities which will not be used principally by the tax
exempt entities;
(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except
for leases entered into by the United States or its agencies or instrumentalities;
(4) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2),
and prepared food, candy, soft drinks, deleted text begin anddeleted text end alcoholic beverages as defined in section 297A.67,
subdivision 2, new text begin adult-use cannabis, and adult-use cannabis products new text end except for lodging,
prepared food, candy, soft drinks, deleted text begin anddeleted text end alcoholic beveragesnew text begin , adult-use cannabis, and adult-use
cannabis productsnew text end purchased directly by the United States or its agencies or instrumentalities;
or
(5) goods or services purchased by a local government as inputs to a liquor store, gas
or electric utility, solid waste hauling service, solid waste recycling service, landfill, golf
course, marina, campground, cafe, or laundromat.
(c) As used in this subdivision, "school districts" means public school entities and districts
of every kind and nature organized under the laws of the state of Minnesota, and any
instrumentality of a school district, as defined in section 471.59.
(d) For purposes of the exemption granted under this subdivision, "local governments"
has the following meaning:
(1) for the period prior to January 1, 2017, local governments means statutory or home
rule charter cities, counties, and townships; and
(2) beginning January 1, 2017, local governments means statutory or home rule charter
cities, counties, and townships; special districts as defined under section 6.465; any
instrumentality of a statutory or home rule charter city, county, or township as defined in
section 471.59; and any joint powers board or organization created under section 471.59.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment, except
if a bill styled as H.F. No. 100 is finally enacted at the 2023 regular session then this section
does not take effect.
new text end
Sec. 8.
Minnesota Statutes 2022, section 297A.70, subdivision 4, is amended to read:
Subd. 4.
Sales to nonprofit groups.
(a) All sales, except those listed in paragraph (b),
to the following "nonprofit organizations" are exempt:
(1) a corporation, society, association, foundation, or institution organized and operated
exclusively for charitable, religious, or educational purposes if the item purchased is used
in the performance of charitable, religious, or educational functions;
(2) any senior citizen group or association of groups that:
(i) in general limits membership to persons who are either age 55 or older, or persons
with a physical disability;
(ii) is organized and operated exclusively for pleasure, recreation, and other nonprofit
purposes, not including housing, no part of the net earnings of which inures to the benefit
of any private shareholders; and
(iii) is an exempt organization under section 501(c) of the Internal Revenue Code; and
(3) an organization that qualifies for an exemption for memberships under subdivision
12 if the item is purchased and used in the performance of the organization's mission.
For purposes of this subdivision, charitable purpose includes the maintenance of a cemetery
owned by a religious organization.
(b) This exemption does not apply to the following sales:
(1) building, construction, or reconstruction materials purchased by a contractor or a
subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed
maximum price covering both labor and materials for use in the construction, alteration, or
repair of a building or facility;
(2) construction materials purchased by tax-exempt entities or their contractors to be
used in constructing buildings or facilities that will not be used principally by the tax-exempt
entities;
(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2),
and prepared food, candy, soft drinks, deleted text begin anddeleted text end alcoholic beverages as defined in section 297A.67,
subdivision 2, except wine purchased by an established religious organization for sacramental
purposes or as allowed under subdivision 9anew text begin , adult-use cannabis, and adult-use cannabis
productsnew text end ; and
(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except as
provided in paragraph (c).
(c) This exemption applies to the leasing of a motor vehicle as defined in section 297B.01,
subdivision 11, only if the vehicle is:
(1) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a
passenger automobile, as defined in section 168.002, if the automobile is designed and used
for carrying more than nine persons including the driver; and
(2) intended to be used primarily to transport tangible personal property or individuals,
other than employees, to whom the organization provides service in performing its charitable,
religious, or educational purpose.
(d) A limited liability company also qualifies for exemption under this subdivision if
(1) it consists of a sole member that would qualify for the exemption, and (2) the items
purchased qualify for the exemption.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment, except
if a bill styled as H.F. No. 100 is finally enacted at the 2023 regular session then this section
does not take effect.
new text end
Sec. 9.
Minnesota Statutes 2022, section 297A.70, subdivision 18, is amended to read:
Subd. 18.
Nursing homes and boarding care homes.
(a) All sales, except those listed
in paragraph (b), to a nursing home licensed under section 144A.02 or a boarding care home
certified as a nursing facility under title 19 of the Social Security Act are exempt if the
facility:
(1) is exempt from federal income taxation pursuant to section 501(c)(3) of the Internal
Revenue Code; and
(2) is certified to participate in the medical assistance program under title 19 of the Social
Security Act, or certifies to the commissioner that it does not discharge residents due to the
inability to pay.
(b) This exemption does not apply to the following sales:
(1) building, construction, or reconstruction materials purchased by a contractor or a
subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed
maximum price covering both labor and materials for use in the construction, alteration, or
repair of a building or facility;
(2) construction materials purchased by tax-exempt entities or their contractors to be
used in constructing buildings or facilities that will not be used principally by the tax-exempt
entities;
(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2),
and prepared food, candy, soft drinks, deleted text begin anddeleted text end alcoholic beverages as defined in section 297A.67,
subdivision 2new text begin , adult-use cannabis, and adult-use cannabis productsnew text end ; and
(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except as
provided in paragraph (c).
(c) This exemption applies to the leasing of a motor vehicle as defined in section 297B.01,
subdivision 11, only if the vehicle is:
(1) a truck, as defined in section 168.002; a bus, as defined in section 168.002; or a
passenger automobile, as defined in section 168.002, if the automobile is designed and used
for carrying more than nine persons including the driver; and
(2) intended to be used primarily to transport tangible personal property or residents of
the nursing home or boarding care home.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment, except
if a bill styled as H.F. No. 100 is finally enacted at the 2023 regular session then this section
does not take effect.
new text end
Sec. 10.
Minnesota Statutes 2022, section 297A.70, subdivision 19, is amended to read:
Subd. 19.
Nonprofit snowmobile clubs; machinery and equipment.
new text begin
(a)
new text end
new text begin
The following
sales to an eligible nonprofit snowmobile club are exempt:
new text end
new text begin (1) new text end sales of tangible personal propertynew text begin , including grooming machines, attachments, other
associated accessories, and repair parts,new text end deleted text begin to a nonprofit snowmobile clubdeleted text end that is used primarily
and directly for the grooming of state or grant-in-aid snowmobile trails deleted text begin are exempt. The
exemption applies to grooming machines, attachments, other associated accessories, and
repair parts.deleted text end new text begin ; and
new text end
new text begin
(2) sales of materials and supplies used or consumed in, and equipment incorporated
into, the construction, reconstruction, maintenance, or improvement of state or grant-in-aid
snowmobile trails, completed by the nonprofit snowmobile club.
new text end
new text begin (b)new text end A nonprofit snowmobile club is eligible for the exemption under this subdivision if
it received, in the current year or in the previous three-year period, a state grant-in-aid
maintenance and grooming grant administered by the Department of Natural Resources by
applying for the grant with a local unit of government sponsor.
new text begin
(c) The exemption under paragraph (a), clause (2), expires July 1, 2027, for sales and
purchases made after June 30, 2027.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2023.
new text end
Sec. 11. new text begin SALES AND USE TAX EXEMPTION; CERTAIN NATURAL GAS FEES.
new text end
new text begin Subdivision 1. new text end
new text begin Exemption. new text end
new text begin
Notwithstanding Minnesota Statutes, section 297A.67,
subdivision 15, clause (2), fees related to natural gas sold for residential use to customers
who were metered and billed as residential users and who used natural gas for their primary
source of residential heat are exempt from sales and use tax imposed under Minnesota
Statutes, chapter 297A for purposes of the billing periods May to October, provided that:
new text end
new text begin
(1) the fee for the natural gas is subject to a cost recovery plan for the price increase in
natural gas during the period February 13, 2021, to February 17, 2021, identified in docket
G-999/CI-21-135 before the Minnesota Public Utilities Commission; and
new text end
new text begin
(2) the fee is separately stated and labeled as a fee pursuant to a cost recovery plan under
clause (1).
new text end
new text begin Subd. 2. new text end
new text begin Application; refund. new text end
new text begin
(a) By October 1, 2023, each utility must apply to the
commissioner of revenue for a refund of sales taxes collected and remitted pursuant to
Minnesota Statutes, section 297A.77, on fees for sales and purchases of natural gas subject
to a cost recovery plan under subdivision 1, clause (1), that were added to residential
customers' bills for the period beginning September 1, 2021, and ending June 30, 2023.
new text end
new text begin
(b) The provisions of Minnesota Statutes, section 289A.50, subdivision 2, except for
paragraph (c), apply to refunds issued under this subdivision. For purposes of this subdivision,
"utility" means a utility subject to the cost recovery plan under subdivision 1, clause (1).
Within 90 days after the date the commissioner issues the refund under Minnesota Statutes,
section 289A.50, subdivision 2, paragraph (a), to the utility, the utility must provide a plan
to the Minnesota Public Utilities Commission for crediting taxes exempt under subdivision
1 to residential customers.
new text end
new text begin
(c) The plan must be approved by the Minnesota Public Utilities Commission. Any
amount not refunded or credited to a residential customer by a utility within 60 days of
approval of the plan must be returned to the commissioner by the utility.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for fees applied to sales
and purchases of natural gas that are billed from September 1, 2021, to December 31, 2026.
new text end
Sec. 12. new text begin TEMPORARY SALES TAX EXEMPTION FOR CONSTRUCTION
MATERIALS; CERTAIN ENTITIES.
new text end
new text begin Subdivision 1. new text end
new text begin Exemption; refund. new text end
new text begin
(a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, repair, maintenance, or
improvement of buildings or facilities used principally by the following entities are exempt
if purchased after June 30, 2021, and before January 1, 2025:
new text end
new text begin
(1) school districts, as defined under Minnesota Statutes, section 297A.70, subdivision
2, paragraph (c);
new text end
new text begin
(2) local governments, as defined under Minnesota Statutes, section 297A.70, subdivision
2, paragraph (d);
new text end
new text begin
(3) hospitals and nursing homes owned and operated by political subdivisions of the
state, as described under Minnesota Statutes, section 297A.70, subdivision 2, paragraph (a),
clause (3);
new text end
new text begin
(4) county law libraries under Minnesota Statutes, chapter 134A, and public libraries,
regional public library systems, and multicounty, multitype library systems, as defined in
Minnesota Statutes, section 134.001;
new text end
new text begin
(5) nonprofit groups, as defined under Minnesota Statutes, section 297A.70, subdivision
4;
new text end
new text begin
(6) hospitals, outpatient surgical centers, and critical access dental providers, as defined
under Minnesota Statutes, section 297A.70, subdivision 7; and
new text end
new text begin
(7) nursing homes and boarding care homes, as defined under Minnesota Statutes, section
297A.70, subdivision 18.
new text end
new text begin
(b) Materials and supplies used or consumed in and equipment incorporated into the
construction, reconstruction, repair, maintenance, or improvement of public infrastructure
of any kind, including but not limited to roads, bridges, culverts, drinking water facilities,
and wastewater facilities, purchased by a contractor, subcontractor, or builder as part of a
contract with the following entities are exempt if purchased after June 30, 2021, and before
January 1, 2025:
new text end
new text begin
(1) school districts, as defined under Minnesota Statutes, section 297A.70, subdivision
2, paragraph (c); or
new text end
new text begin
(2) local governments, as defined under Minnesota Statutes, section 297A.70, subdivision
2, paragraph (d).
new text end
new text begin
(c) The tax on purchases exempt under this section must be imposed and collected as if
the rate under Minnesota Statutes, section 297A.62, subdivision 1, applied and then refunded
in the manner provided in Minnesota Statutes, section 297A.75. Claims for refund for sales
tax paid on eligible purchases must be filed by February 28, 2025. Refunds for eligible
purchases must not be issued before June 30, 2023, or after June 30, 2025.
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
The amount required to pay the refunds under subdivision 1
is 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 retroactively from July 1, 2021, and
applies to sales and purchases made after June 30, 2021, and before January 1, 2025.
new text end
Sec. 13. new text begin CITY OF CHANHASSEN; SALES TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end
new text begin Subdivision 1. new text end
new text begin Exemption; refund. new text end
new text begin
(a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of a new city hall and senior center, council chambers, and park amenities
in the city of Chanhassen are exempt from sales and use tax under Minnesota Statutes,
chapter 297A, provided that the materials, supplies, and equipment are purchased after
December 31, 2024, and before February 1, 2027.
new text end
new text begin
(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided in Minnesota
Statutes, section 297A.75, subdivision 1, clause (17).
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
The amount required to pay the refunds under subdivision 1
is 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 the day following final enactment and
applies to sales and purchases made after December 31, 2024, and before February 1, 2027.
new text end
Sec. 14. new text begin CITY OF EDINA; SALES TAX EXEMPTION FOR CONSTRUCTION
MATERIALS.
new text end
new text begin Subdivision 1. new text end
new text begin Exemption; refund. new text end
new text begin
(a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of a community health and safety center in the city of Edina are exempt from
sales and use tax under Minnesota Statutes, chapter 297A, provided that the materials,
supplies, and equipment are purchased after December 31, 2024, and before January 1,
2026.
new text end
new text begin
(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided in Minnesota
Statutes, section 297A.75, subdivision 1, clause (17).
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
The amount required to pay the refunds under subdivision 1
is 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 the day following final enactment and
applies to sales and purchases made after December 31, 2024, and before January 1, 2026.
new text end
Sec. 15. new text begin ELY PUBLIC SCHOOLS; SALES TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end
new text begin Subdivision 1. new text end
new text begin Exemption; refund. new text end
new text begin
(a) Materials and supplies used in and equipment
incorporated into the following projects in Independent School District No. 696, Ely Public
Schools, are exempt from sales and use tax imposed under Minnesota Statutes, chapter
297A, if materials, supplies, and equipment are purchased after May 1, 2019, and before
July 1, 2021:
new text end
new text begin
(1) renovations to the elementary school building and high school building; and
new text end
new text begin
(2) construction of a building that connects the elementary school and high school
buildings containing classrooms, a common area, a gymnasium, and administrative offices.
new text end
new text begin
(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
purchases must not be issued until after June 30, 2023.
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
The amount required to pay the refunds under subdivision 1
is 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 retroactively from May 2, 2019, and
applies to sales and purchases made after May 1, 2019, and before July 1, 2021.
new text end
Sec. 16. new text begin HIBBING PUBLIC SCHOOLS; SALES TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end
new text begin Subdivision 1. new text end
new text begin Exemption; refund. new text end
new text begin
(a) Materials and supplies used in and equipment
incorporated into the following projects in the city of Hibbing are exempt from sales and
use tax imposed under Minnesota Statutes, chapter 297A, if materials, supplies, and
equipment are purchased after May 1, 2019, and before July 1, 2021:
new text end
new text begin
(1) the addition of an Early Childhood Family Education Center to an existing elementary
school; and
new text end
new text begin
(2) improvements to an existing athletic facility in Independent School District No. 701,
Hibbing Public Schools.
new text end
new text begin
(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
purchases must not be issued until after June 30, 2023.
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
The amount required to pay the refunds under subdivision 1
is 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 retroactively from May 2, 2019, and
applies to sales and purchases made after May 1, 2019, and before July 1, 2021.
new text end
Sec. 17. new text begin MINNEAPOLIS-ST. PAUL INTERNATIONAL AIRPORT; SALES TAX
EXEMPTION FOR CONSTRUCTION MATERIALS.
new text end
new text begin Subdivision 1. new text end
new text begin Exemption; refund. new text end
new text begin
(a) Materials and supplies used in and equipment
incorporated into the construction, reconstruction, repair, maintenance, or improvement of
public infrastructure at the Minneapolis-St. Paul International Airport purchased by a
contractor or subcontractor are exempt from sales and use tax imposed under Minnesota
Statutes, chapter 297A, if materials, supplies, and equipment are purchased after December
31, 2024, and before January 1, 2028.
new text end
new text begin
(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
The amount required to pay the refunds under subdivision 1
is 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 the day following final enactment and
applies to purchases made after December 31, 2024, and before January 1, 2028.
new text end
Sec. 18. new text begin CITY OF MOORHEAD; SALES TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end
new text begin Subdivision 1. new text end
new text begin Exemption; refund. new text end
new text begin
(a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of a regional library and community center in the city of Moorhead are exempt
from sales and use tax under Minnesota Statutes, chapter 297A, provided that the materials,
supplies, and equipment are purchased after December 31, 2024, and before April 1, 2027.
new text end
new text begin
(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided in Minnesota
Statutes, section 297A.75, subdivision 1, clause (17).
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
The amount required to pay the refunds under subdivision 1
is 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 the day following final enactment and
applies to sales and purchases made after December 31, 2024, and before April 1, 2027.
new text end
Sec. 19. new text begin CITY OF OAKDALE; SALES TAX EXEMPTION FOR CONSTRUCTION
MATERIALS.
new text end
new text begin Subdivision 1. new text end
new text begin Exemption; refund. new text end
new text begin
(a) Materials and supplies used or consumed in and
equipment incorporated into the construction of a new public works facility in the city of
Oakdale are exempt from sales and use tax under Minnesota Statutes, chapter 297A, provided
that the materials, supplies, and equipment are purchased after December 31, 2024, and
before January 1, 2027.
new text end
new text begin
(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
The amount required to pay the refunds under subdivision 1
is 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 the day following final enactment and
applies to sales and purchases made after December 31, 2024, and before January 1, 2027.
new text end
Sec. 20. new text begin CITY OF RAMSEY; SALES TAX EXEMPTION FOR CONSTRUCTION
MATERIALS.
new text end
new text begin Subdivision 1. new text end
new text begin Exemption; refund. new text end
new text begin
(a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of a new water treatment plant in the city of Ramsey are exempt from sales
and use tax under Minnesota Statutes, chapter 297A, provided that the materials, supplies,
and equipment are purchased after December 31, 2024, and before January 1, 2026.
new text end
new text begin
(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided in Minnesota
Statutes, section 297A.75, subdivision 1, clause (17).
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
The amount required to pay the refunds under subdivision 1
is 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 the day following final enactment and
applies to sales and purchases made after December 31, 2024, and before January 1, 2026.
new text end
Sec. 21. new text begin RED LAKE COUNTY SCHOOL DISTRICT; SALES TAX EXEMPTION
FOR CONSTRUCTION MATERIALS.
new text end
new text begin Subdivision 1. new text end
new text begin Exemption; refund. new text end
new text begin
(a) Materials and supplies used in and equipment
incorporated into the construction of a new school in Independent School District No. 2906,
Red Lake County School District, are exempt from sales and use tax imposed under
Minnesota Statutes, chapter 297A, if materials, supplies, and equipment are purchased after
December 31, 2020, and before July 1, 2021, and after December 31, 2024, and before
January 1, 2026.
new text end
new text begin
(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
purchases must not be issued until after June 30, 2023.
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
The amount required to pay the refunds under subdivision 1
is 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 retroactively from January 1, 2021, and
applies to sales and purchases made after December 31, 2020, and before July 1, 2021, and
after December 31, 2024, and before January 1, 2026.
new text end
Sec. 22. new text begin RED ROCK CENTRAL SCHOOL DISTRICT; SALES TAX EXEMPTION
FOR CONSTRUCTION MATERIALS.
new text end
new text begin Subdivision 1. new text end
new text begin Exemption; refund. new text end
new text begin
(a) Materials and supplies used in and equipment
incorporated into the construction of a new prekindergarten through grade 12 learning
facility in Independent School District No. 2884, Red Rock Central School District, are
exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, if materials,
supplies, and equipment are purchased after December 31, 2024, and before July 1, 2025.
new text end
new text begin
(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
The amount required to pay the refunds under subdivision 1
is 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 the day following final enactment and
applies to sales and purchases made after December 31, 2024, and before July 1, 2025.
new text end
Sec. 23. new text begin ROCK RIDGE PUBLIC SCHOOLS; SALES TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end
new text begin Subdivision 1. new text end
new text begin Exemption; refund. new text end
new text begin
(a) Materials and supplies used in and equipment
incorporated into the construction of two new elementary school buildings and a new high
school building in Independent School District No. 2909, Rock Ridge Public Schools, are
exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, if materials,
supplies, and equipment are purchased after May 1, 2019, and before July 1, 2021.
new text end
new text begin
(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
purchases must not be issued until after June 30, 2023.
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
The amount required to pay the refunds under subdivision 1
is 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 retroactively from May 2, 2019, and
applies to sales and purchases made after May 1, 2019, and before July 1, 2021.
new text end
Sec. 24. new text begin CITY OF SPRING GROVE; SALES TAX EXEMPTION FOR
CONSTRUCTION MATERIALS AND CAPITAL EQUIPMENT.
new text end
new text begin Subdivision 1. new text end
new text begin Exemption; refund. new text end
new text begin
(a) The sale and purchase of the following items
are exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, if the
items are used to repair, replace, or otherwise recover from real and personal property
damage that occurred during the fire on December 22, 2022, in the city of Spring Grove:
new text end
new text begin
(1) building materials and supplies used or consumed in, and equipment incorporated
into, the construction, replacement, or repair of real property; and
new text end
new text begin
(2) capital equipment to replace equipment destroyed in the fire.
new text end
new text begin
(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). The exemption under
paragraph (a) applies to sales and purchases made after December 22, 2022, and before
January 1, 2028. Refunds for eligible purchases must not be issued until after June 30, 2023.
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
The amount required to pay the refunds under subdivision 1
is 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 retroactively from December 23, 2022,
and applies to sales and purchases made after December 22, 2022, and before January 1,
2028.
new text end
Sec. 25. new text begin SPRINGFIELD SCHOOL DISTRICT; SALES TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end
new text begin Subdivision 1. new text end
new text begin Exemption; refund. new text end
new text begin
(a) Materials and supplies used in and equipment
incorporated into the following projects for Independent School District No. 85, Springfield
School District, are exempt from sales and use tax imposed under Minnesota Statutes,
chapter 297A, if materials, supplies, and equipment are purchased after December 31, 2024,
and before July 1, 2025:
new text end
new text begin
(1) construction of a main secure entrance;
new text end
new text begin
(2) construction of a required tornado storm shelter and related safety, security, and
accessibility improvements;
new text end
new text begin
(3) installation of HVAC improvements;
new text end
new text begin
(4) renovation and interior modifications necessary to convert the existing elementary
school gymnasium for use for career and technical education trades and an auto shop; and
new text end
new text begin
(5) addition of a new school gymnasium, including the construction and improvement
of new locker rooms, and the renovation and repurposing of existing locker rooms for use
for cafeteria improvements and school programming needs.
new text end
new text begin
(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
The amount required to pay the refunds under subdivision 1
is 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 the day following final enactment and
applies to sales and purchases made after December 31, 2024, and before July 1, 2025.
new text end
Sec. 26. new text begin CITY OF WAYZATA; SALES TAX EXEMPTION FOR CONSTRUCTION
MATERIALS.
new text end
new text begin Subdivision 1. new text end
new text begin Exemption; refund. new text end
new text begin
(a) Materials and supplies used or consumed in and
equipment incorporated into the following projects in the city of Wayzata are exempt from
sales and use tax under Minnesota Statutes, chapter 297A, provided that the materials,
supplies, and equipment are purchased after March 31, 2020, and before July 1, 2021:
new text end
new text begin
(1) expansion and remodeling of Depot Park;
new text end
new text begin
(2) construction of community docks for purposes of access from Lake Minnetonka;
new text end
new text begin
(3) construction of a lakeside boardwalk of approximately 1,500 lineal feet;
new text end
new text begin
(4) shoreline restoration, including installation of native plants, trees, and natural habitat;
new text end
new text begin
(5) restoration of Section Foreman House, including installation of a learning center to
provide indoor and outdoor classroom and community space;
new text end
new text begin
(6) construction of Eco Park, including shoreline restoration and marsh and water quality
improvement, a pier extension of the lakeside boardwalk, and creation of eco-living
classrooms;
new text end
new text begin
(7) construction of a public plaza with a restroom, 9/11 memorial, interactive water
display, and gathering space;
new text end
new text begin
(8) construction of a regional multiuse trail; and
new text end
new text begin
(9) construction of railroad crossings.
new text end
new text begin
(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided in Minnesota
Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible purchases must
not be issued until after June 30, 2023.
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
The amount required to pay the refunds under subdivision 1
is 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 retroactively from April 1, 2020, and
applies to sales and purchases made after March 31, 2020, and before July 1, 2021.
new text end
Sec. 27. new text begin CITY OF WOODBURY; SALES TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end
new text begin Subdivision 1. new text end
new text begin Exemption; refund. new text end
new text begin
(a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of the Central Park project in the city of Woodbury are exempt from sales
and use tax under Minnesota Statutes, chapter 297A, provided that the materials, supplies,
and equipment are purchased after December 31, 2024, and before January 1, 2026.
new text end
new text begin
(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
The amount required to pay the refunds under subdivision 1
is 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 the day following final enactment and
applies to sales and purchases made after December 31, 2024, and before January 1, 2026.
new text end
ARTICLE 6
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, or where a mine subject to the minimum payment under section 298.015,
subdivision 3, is located.
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 "net proceeds"deleted text end new text begin
"gross proceeds"new text end 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) 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:
new text end
new text begin
(1) the tax imposed on the individual under subdivision 1 in a given year is greater than
zero; or
new text end
new text begin
(2) the person demonstrates to the commissioner of revenue that it is legally prohibited
from engaging in the business of mining under a permit it has obtained.
new text end
new text begin
(b) The annual minimum payment under this subdivision is (1) $2,000,000, multiplied
by (2) the number of months in a calendar year the individual is subject to the minimum
payment under this subdivision, as determined under paragraph (a), divided by 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, 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 tax paid under section 298.015, subdivisions 1 and 2, is
distributed 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 298.28, is amended by adding a subdivision to
read:
new text begin Subd. 16. new text end
new text begin Transfer. new text end
new text begin
Of the amount annually distributed to the Douglas J. Johnson
Economic Protection Trust Fund under this section, $3,500,000 shall be transferred to the
Iron Range school consolidation and cooperatively operated school account under subdivision
7a. Any remaining amount of the amount annually distributed to the Douglas J. Johnson
Economic Protection Trust Fund shall be transferred to the Iron Range resources and
rehabilitation account under subdivision 7. The transfers under this subdivision must be
made within ten days of the August payment.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with production year 2023.
new text end
Sec. 10.
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. 11. new text begin TRANSFER 2023 DISTRIBUTION ONLY; DOUGLAS J. JOHNSON
ECONOMIC PROTECTION TRUST FUND.
new text end
new text begin
Of the funds distributed to the Douglas J. Johnson Economic Protection Trust Fund
under Minnesota Statutes, section 298.28, for the 2023 distribution only, an amount equal
to $3,500,000 shall be transferred from the Douglas J. Johnson Economic Protection Trust
Fund to the Iron Range school consolidation and cooperatively operated school account
under Minnesota Statutes, section 298.28, subdivision 7a. The transfer 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
Sec. 12. new text begin TRANSFER 2023 DISTRIBUTION ONLY; PROPERTY TAX RELIEF
ACCOUNT.
new text end
new text begin
(a) 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. The commissioner of Iron Range resources and rehabilitation must distribute
these transferred funds as outlined in this section. The uses listed are not subject to review
or recommendation by the Iron Range Resources and Rehabilitation Board. The commissioner
must distribute the funds for the following uses:
new text end
new text begin
(1) $250,000 to St. Louis County for a grant to the St. Louis County Agricultural Society
for construction and furnishing of a facility to house a food booth and equipment for the
St. Louis County 4-H Club;
new text end
new text begin
(2) $100,000 to Alborn Snow Devils, Inc., for trail grooming costs and equipment;
new text end
new text begin
(3) $300,000 to School District No. 2142, St. Louis County Schools, for the purchase
and installation of lights at the Cherry School baseball and softball fields;
new text end
new text begin
(4) $150,000 to the Seitaniemi Housebarn and Sisu Heritage Site for facility upgrades;
new text end
new text begin
(5) $600,000 to the city of Aurora for downtown beautification projects, as outlined in
paragraph (c);
new text end
new text begin
(6) $500,000 to School District No. 2142, St. Louis County Schools, for wastewater
upgrades at the South Ridge School;
new text end
new text begin
(7) $500,000 to the city of Mountain Iron for the Outdoor Recreation Center;
new text end
new text begin
(8) $100,000 to the city of Buhl for capital improvements to city hall;
new text end
new text begin
(9) $150,000 to School District No. 712, Mountain Iron-Buhl Public School, for fitness
equipment and capital upgrades to the fitness center;
new text end
new text begin
(10) $100,000 to the Mesabi Sno Voyageurs Snowmobile Club for trail grooming costs
and equipment;
new text end
new text begin
(11) $100,000 to the PathBlazers Snowmobile Club for trail grooming costs and
equipment;
new text end
new text begin
(12) $100,000 to the Ely Igloo Snowmobile Club for trail grooming costs and equipment;
new text end
new text begin
(13) $100,000 to the Voyageur Trail Society, Inc. for trail grooming costs and equipment;
new text end
new text begin
(14) $200,000 to Veterans On The Lake Resort for cabin accessibility upgrades, a
handicap dock, tennis court repaving, and replacement of an underground power cable;
new text end
new text begin
(15) $650,000 to School District No. 2142, St. Louis County Schools, for wastewater
upgrades at the North Woods School;
new text end
new text begin
(16) $200,000 to the City of Babbitt for capital improvements to city owned buildings;
new text end
new text begin
(17) $750,000 to the Boundary Waters Care Center for capital equipment purchases;
new text end
new text begin
(18) $800,000 to the Cook County Historical Society to predesign, design, construct,
furnish, and equip the renovation of the following historic Cook County sites: (i) the Cook
County History Museum; (ii) the Johnson Heritage Post Art Gallery; (iii) the Bally
Blacksmith Shop; (iv) the St. Francis Xavier Church, also known as the Chippewa City
Church; and (v) 1930s Nee-Gee Fishing Tug and Fish House; and to complete design for
and to construct, furnish, and equip a new collections storage facility in Cook County;
new text end
new text begin
(19) $100,000 to the Virginia Community Foundation for the Mesabi Fit Coalition to
rehabilitate the former Mesabi Family YMCA building;
new text end
new text begin
(20) $50,000 to the United States Hockey Hall of Fame Museum, Inc., for capital
improvements;
new text end
new text begin
(21) $100,000 to the Ranger Snowmobile & ATV Club for trail grooming costs and
equipment; and
new text end
new text begin
(22) $100,000 to the Crane Lake Voyageurs Snowmobile Club for trail grooming costs
and equipment.
new text end
new text begin
(b) If the amount of the transfer under paragraph (a) is less than $6,000,000, each of the
uses in paragraph (a), clauses (1) to (19), must be proportionally reduced so that the total
amount distributed under those clauses does not exceed the amount of the transfer.
new text end
new text begin
(c) The city of Aurora must use the funds received under this section for improvements
to city-owned property in the downtown area and to establish a grant program to businesses
for front entrance enhancements and exterior storefront improvements. The grants may
award no more than $25,000 to a business. All improvements under this paragraph must be
made along St. Louis County State-Aid Highway 100 (3rd Avenue North and Main Street),
from marked Trunk Highway 135 to St. Louis County State-Aid Highway 110.
new text end
new text begin
(d) The funds under paragraph (a), clause (19), must only be distributed if the Virginia
Community Foundation purchases the former Mesabi Family YMCA building.
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 7
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 return under
section 289A.08, subdivision 13a,new 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
return under section 289A.08, subdivision 13a,new 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 return under section 289A.08, subdivision 13anew 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 return under section 289A.08, subdivision 13a.
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 claim for a credit under section 289A.08, subdivision
13a, 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.08, is amended by adding a subdivision to
read:
new text begin Subd. 13a. new text end
new text begin Simplified filing process for taxpayers without a filing requirement. new text end
new text begin
The
commissioner must establish a simplified individual income tax return through which a
taxpayer without a requirement to file an individual income tax return may file a return to
claim refundable income tax credits. The form must include any credits the commissioner
determines that taxpayers without a requirement to file are likely to claim. The credits on
the form may include but are not limited to the dependent care credit under section 290.067,
the child and working family credit under section 290.0671, the education credit under
section 290.0674, the student loan credit under section 290.0682, and the renter's credit
under section 290.0693.
new text end
new text begin
(b) 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. 9.
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. 10.
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. 11.
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. 12.
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. 13.
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 or 289A.08, subdivision 13a, 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. 14.
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 or 289A.08, subdivision 13a,
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. 15.
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 January 31 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 EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2023.
new text end
Sec. 16.
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. 17.
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. 18.
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. 19.
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. 20.
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. 21.
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. 22.
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. 23.
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. 24.
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. 25.
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. 26.
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. 27.
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. 28.
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. 29.
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. 30.
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. 31.
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. 32.
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. 33.
Minnesota Statutes 2022, section 290A.25, is amended to read:
290A.25 VERIFICATION OF SOCIAL SECURITY new text begin OR INDIVIDUAL TAXPAYER
IDENTIFICATIONnew text end NUMBERS.
Annually, the commissioner of revenue shall furnish a list to the county assessor
containing the names and Social Security new text begin or individual taxpayer identificationnew text end 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. 34.
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. 35.
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. 36. new text begin TAX CREDIT OUTREACH; APPROPRIATION.
new text end
new text begin
(a) $2,194,000 in fiscal year 2024 and $2,193,000 in fiscal year 2025 are appropriated
from the general fund to the commissioner of revenue to make grants to one or more eligible
organizations. An eligible organization receiving a grant must use the funds to:
new text end
new text begin
(1) publicize and promote the availability of eligible credits to taxpayers likely to be
eligible for those credits; or
new text end
new text begin
(2) provide taxpayer assistance services.
new text end
new text begin
(b) For the purposes of this section the following terms have the meanings given:
new text end
new text begin
(1) "eligible credit" means a credit targeting low-income taxpayers, including but not
limited to the credits under sections 290.0693 and 290.0671 and chapter 290A;
new text end
new text begin
(2) "eligible organization" means a nonprofit organization or federally recognized Indian
Tribe with experience serving demographic groups or geographic regions that have
historically had low rates of participation in eligible credits. Eligible organization includes
but is not limited to organizations qualifying under section 7526A(e)(2)(B) of the Internal
Revenue Code; and
new text end
new text begin
(3) "taxpayer assistance services" means accounting and tax preparation services provided
by volunteers to low-income, elderly, and disadvantaged Minnesota residents to help them
file federal and state income tax returns and Minnesota property tax refund claims and to
provide personal representation before the Department of Revenue and Internal Revenue
Service.
new text end
new text begin
(c) The base for this appropriation is $2,671,000 in fiscal years 2026 and thereafter.
new text end
Sec. 37. 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 8
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 2008, chapter 366, article 5, section 36, subdivision 1, is amended to read:
Subdivision 1.
Authorization.
Notwithstanding the provisions of any other law, upon
approval of the governing body of the city of St. Paul, the Housing and Redevelopment
Authority of the city of St. Paul may establish a redevelopment tax increment financing
district comprised of the properties included in the existing downtown and Seventh Place
tax increment district (County #82). Notwithstanding Minnesota Statutes, section 469.177,
subdivision 6, if certification of the district is requested by July 31, 2008, the certification
will be recognized by the county auditor in determining local tax rates for taxes payable in
2009 and subsequent years. The district created under this section terminates December 31,
deleted text begin 2023deleted text end new text begin 2033new text end . The city may create the district under this section only if it enters into an
agreement with Ramsey County to pay the county annually out of the increment from this
district an amount equal to the tax that would have been payable to the county on the captured
tax capacity of the district had the district not been created.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing bodies of St.
Paul, Ramsey County, and Independent School District No. 625 comply with the requirements
of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, subdivisions 2 and
3.
new text end
Sec. 16.
Laws 2008, chapter 366, article 5, section 36, subdivision 3, as amended by Laws
2014, chapter 150, article 5, section 5, is amended to read:
Subd. 3.
Authorized expenditures.
Tax increment from the district may be expended
only to pay principal and interest on bond obligations issued by the city of St. Paul in 2009
for the RiverCentre Arena, including payment of principal and interest on any bonds issued
to repay the bonds or loansnew text begin , as amended in 2014, but only through taxes payable year 2023new text end .
new text begin Commencing with taxes payable year 2024, tax increments from the district may be expended
to facilitate capital improvements within the city's RiverCentre complex, including but not
limited to the St. Paul RiverCentre, Xcel Energy Center, Roy Wilkins Auditorium, and St.
Paul RiverCentre Parking Ramp and adjacent areas controlled by the city. new text end All such
expenditures are deemed to be activities within the district under Minnesota Statutes, section
469.1763, subdivisions 2, 3, and 4.
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 St. Paul and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 17.
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. 18. 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. 19. 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. 20. 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 19 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. 21. 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. 22. 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. 23. 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. 24. 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. 25. 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. 26. 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. 27. 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. 28. 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. 29. 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 9
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 10
PUBLIC FINANCE
Section 1.
Minnesota Statutes 2022, section 118A.04, subdivision 5, is amended to read:
Subd. 5.
Time deposits.
Funds may be invested in time deposits that are fully insured
by the Federal Deposit Insurance Corporationnew text begin , the National Association of Credit Unions,new text end
or bankers acceptances of United States banks.
Sec. 2.
Minnesota Statutes 2022, section 123B.61, is amended to read:
123B.61 PURCHASE OF CERTAIN EQUIPMENT.
The board of a district may issue general obligation certificates of indebtedness or capital
notes subject to the district debt limits to: (a) purchase vehicles, computers, telephone
systems, cable equipment, photocopy and office equipment, technological equipment for
instruction, and other capital equipment having an expected useful life at least as long as
the terms of the certificates or notes; (b) purchase computer hardware and software, without
regard to its expected useful life, whether bundled with machinery or equipment or
unbundled, together with application development services and training related to the use
of the computer; and (c) prepay special assessments. The certificates or notes must be
payable in not more than deleted text begin tendeleted text end new text begin 20new text end years and must be issued on the terms and in the manner
determined by the boarddeleted text begin , except that certificates or notes issued to prepay special assessments
must be payable in not more than 20 yearsdeleted text end . The certificates or notes may be issued by
resolution and without the requirement for an election. The certificates or notes are general
obligation bonds for purposes of section 126C.55. A tax levy must be made for the payment
of the principal and interest on the certificates or notes, in accordance with section 475.61,
as in the case of bonds. The sum of the tax levies under this section and section 123B.62
for each year must not exceed the lesser of the amount of the district's total operating capital
revenue or the sum of the district's levy in the general and community service funds excluding
the adjustments under this section for the year preceding the year the initial debt service
levies are certified. The district's general fund levy for each year must be reduced by the
sum of (1) the amount of the tax levies for debt service certified for each year for payment
of the principal and interest on the certificates or notes issued under this section as required
by section 475.61, (2) the amount of the tax levies for debt service certified for each year
for payment of the principal and interest on bonds issued under section 123B.62, and (3)
any excess amount in the debt redemption fund used to retire bonds, certificates, or notes
issued under this section or section 123B.62 after April 1, 1997, other than amounts used
to pay capitalized interest. If the district's general fund levy is less than the amount of the
reduction, the balance shall be deducted first from the district's community service fund
levy, and next from the district's general fund or community service fund levies for the
following year. A district using an excess amount in the debt redemption fund to retire the
certificates or notes shall report the amount used for this purpose to the commissioner by
July 15 of the following fiscal year. A district having an outstanding capital loan under
section 126C.69 must not use an excess amount in the debt redemption fund to retire the
certificates or notes.
Sec. 3.
Minnesota Statutes 2022, section 366.095, subdivision 1, is amended to read:
Subdivision 1.
Certificates of indebtedness.
The town board may issue certificates of
indebtedness within the debt limits for a town purpose otherwise authorized by lawnew text begin , including
projects that eliminate R-22, as defined in section 240A.09, paragraph (b), clause (2)new text end . The
certificates shall be payable in not more than deleted text begin tendeleted text end new text begin 20new text end years and be issued on the terms and
in the manner deleted text begin asdeleted text end new text begin determined bynew text end the board deleted text begin may determine, provided that notes issued for
projects that eliminate R-22, as defined in section 240A.09, paragraph (b), clause (2), must
be payable in not more than 20 yearsdeleted text end . If the amount of the certificates to be issued exceeds
0.25 percent of the estimated market value of the town, they shall not be issued for at least
ten days after publication in a newspaper of general circulation in the town of the board's
resolution determining to issue them. If within that time, a petition asking for an election
on the proposition signed by voters equal to ten percent of the number of voters at the last
regular town election is filed with the clerk, the certificates shall not be issued until their
issuance has been approved by a majority of the votes cast on the question at a regular or
special election. A tax levy shall be made to pay the principal and interest on the certificates
as in the case of bonds.
Sec. 4.
Minnesota Statutes 2022, section 373.01, subdivision 3, is amended to read:
Subd. 3.
Capital notes.
(a) A county board may, by resolution and without referendum,
issue capital notes subject to the county debt limit to purchase capital equipment useful for
county purposes that has an expected useful life at least equal to the term of the notes. The
notes shall be payable in not more than deleted text begin tendeleted text end new text begin 20new text end years and shall be issued on new text begin the new text end terms and in
deleted text begin adeleted text end new text begin thenew text end manner new text begin determined by new text end the board deleted text begin determinesdeleted text end . A tax levy shall be made for payment of
the principal and interest on the notes, in accordance with section 475.61, as in the case of
bonds.
(b) For purposes of this subdivision, "capital equipment" means:
(1) public safety, ambulance, road construction or maintenance, and medical equipment;
deleted text begin and
deleted text end
(2) computer hardware and software, whether bundled with machinery or equipment or
unbundled, together with application development services and training related to the use
of the computer hardware or softwarenew text begin ; and
new text end
new text begin (3) projects that eliminate R-22, as defined in section 240A.09, paragraph (b), clause
(2)new text end .
Sec. 5.
Minnesota Statutes 2022, section 383B.117, subdivision 2, is amended to read:
Subd. 2.
Equipment acquisition; capital notes.
The board may, by resolution and
without public referendum, issue capital notes within existing debt limits for the purpose
of purchasing ambulance and other medical equipment, road construction or maintenance
equipment, public safety equipmentnew text begin , including projects that eliminate R-22, as defined in
section 240A.09, paragraph (b), clause (2),new text end and other capital equipment having an expected
useful life at least equal to the term of the notes issued. The notes shall be payable in not
more than deleted text begin tendeleted text end new text begin 20new text end years and shall be issued on new text begin the new text end terms and in deleted text begin adeleted text end new text begin thenew text end manner deleted text begin asdeleted text end new text begin determined
bynew text end the board deleted text begin determines, provided that notes issued for projects that eliminate R-22, as
defined in section 240A.09, paragraph (b), clause (2), must be payable in not more than 20
yearsdeleted text end . The total principal amount of the notes issued for any fiscal year shall not exceed
one percent of the total annual budget for that year and shall be issued solely for the purchases
authorized in this subdivision. A tax levy shall be made for the payment of the principal
and interest on such notes as in the case of bonds. For purposes of this subdivision,
"equipment" includes computer hardware and software, whether bundled with machinery
or equipment or unbundled. For purposes of this subdivision, the term "medical equipment"
includes computer hardware and software and other intellectual property for use in medical
diagnosis, medical procedures, research, record keeping, billing, and other hospital
applications, together with application development services and training related to the use
of the computer hardware and software and other intellectual property, all without regard
to their useful life. For purposes of determining the amount of capital notes which the county
may issue in any year, the budget of the county and Hennepin Healthcare System, Inc. shall
be combined and the notes issuable under this subdivision shall be in addition to obligations
issuable under section 373.01, subdivision 3.
Sec. 6.
Minnesota Statutes 2022, section 410.32, is amended to read:
410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
(a) Notwithstanding any contrary provision of other law or charter, a home rule charter
city may, by resolution and without public referendum, issue capital notes subject to the
city debt limit to purchase capital equipment.
(b) For purposes of this section, "capital equipment" means:
(1) public safety equipment, ambulance and other medical equipment, road construction
and maintenance equipment, and other capital equipment; deleted text begin and
deleted text end
(2) computer hardware and software, whether bundled with machinery or equipment or
unbundled, together with application development services and training related to the use
of the computer hardware and softwarenew text begin ; and
new text end
new text begin (3) projects that eliminate R-22, as defined in section 240A.09, paragraph (b), clause
(2)new text end .
(c) The equipment or software must have an expected useful life at least as long as the
term of the notes.
(d) The notes shall be payable in not more than deleted text begin tendeleted text end new text begin 20new text end years and be issued onnew text begin thenew text end terms
and in the mannernew text begin determined bynew text end the city deleted text begin determines, provided that notes issued for projects
that eliminate R-22, as defined in section 240A.09, paragraph (b), clause (2), must be payable
in not more than 20 yearsdeleted text end . The total principal amount of the capital notes issued in a fiscal
year shall not exceed 0.03 percent of the estimated market value of taxable property in the
city for that year.
(e) A tax levy shall be made for the payment of the principal and interest on the notes,
in accordance with section 475.61, as in the case of bonds.
(f) Notes issued under this section shall require an affirmative vote of two-thirds of the
governing body of the city.
(g) Notwithstanding a contrary provision of other law or charter, a home rule charter
city may also issue capital notes subject to its debt limit in the manner and subject to the
limitations applicable to statutory cities pursuant to section 412.301.
Sec. 7.
Minnesota Statutes 2022, section 412.301, is amended to read:
412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
(a) The council may issue certificates of indebtedness or capital notes subject to the city
debt limits to purchase capital equipment.
(b) For purposes of this section, "capital equipment" means:
(1) public safety equipment, ambulance and other medical equipment, road construction
and maintenance equipment, and other capital equipment; deleted text begin and
deleted text end
(2) computer hardware and software, whether bundled with machinery or equipment or
unbundled, together with application development services and training related to the use
of the computer hardware or softwarenew text begin ; and
new text end
new text begin (3) projects that eliminate R-22, as defined in section 240A.09, paragraph (b), clause
(2)new text end .
(c) The equipment or software must have an expected useful life at least as long as the
terms of the certificates or notes.
(d) Such certificates or notes shall be payable in not more than deleted text begin tendeleted text end new text begin 20new text end years and shall
be issued on deleted text begin suchdeleted text end new text begin thenew text end terms and in deleted text begin suchdeleted text end new text begin thenew text end manner deleted text begin asdeleted text end new text begin determined bynew text end the council deleted text begin may
determine, provided, however, that notes issued for projects that eliminate R-22, as defined
in section 240A.09, paragraph (b), clause (2), must be payable in not more than 20 yearsdeleted text end .
(e) If the amount of the certificates or notes to be issued to finance any such purchase
exceeds 0.25 percent of the estimated market value of taxable property in the city, they shall
not be issued for at least ten days after publication in the official newspaper of a council
resolution determining to issue them; and if before the end of that time, a petition asking
for an election on the proposition signed by voters equal to ten percent of the number of
voters at the last regular municipal election is filed with the clerk, such certificates or notes
shall not be issued until the proposition of their issuance has been approved by a majority
of the votes cast on the question at a regular or special election.
(f) A tax levy shall be made for the payment of the principal and interest on such
certificates or notes, in accordance with section 475.61, as in the case of bonds.
Sec. 8.
Minnesota Statutes 2022, section 469.033, subdivision 6, is amended to read:
Subd. 6.
Operation area as taxing district, special tax.
All of the territory included
within the area of operation of any authority shall constitute a taxing district for the purpose
of levying and collecting special benefit taxes as provided in this subdivision. All of the
taxable property, both real and personal, within that taxing district shall be deemed to be
benefited by projects to the extent of the special taxes levied under this subdivision. Subject
to the consent by resolution of the governing body of the city in and for which it was created,
an authority may levy a tax upon all taxable property within that taxing district. The tax
shall be extended, spread, and included with and as a part of the general taxes for state,
county, and municipal purposes by the county auditor, to be collected and enforced therewith,
together with the penalty, interest, and costs. As the tax, including any penalties, interest,
and costs, is collected by the county treasurer it shall be accumulated and kept in a separate
fund to be known as the "housing and redevelopment project fund." The money in the fund
shall be turned over to the authority at the same time and in the same manner that the tax
collections for the city are turned over to the city, and shall be expended only for the purposes
of sections 469.001 to 469.047. It shall be paid out upon vouchers signed by the chair of
the authority or an authorized representative. The amount of the levy shall be an amount
approved by the governing body of the city, but shall not exceed 0.0185 percent of estimated
market value. The authority shall each year formulate and file a budget in accordance with
the budget procedure of the city in the same manner as required of executive departments
of the city or, if no budgets are required to be filed, by August 1. The amount of the tax
levy for the following year shall be based on that budget.new text begin The requirements of section
275.067 apply to a housing and redevelopment authority that has not previously certified a
levy.
new text end
Sec. 9.
Minnesota Statutes 2022, section 469.053, subdivision 4, is amended to read:
Subd. 4.
Mandatory city levy.
A city shall, at the request of the port authority, levy a
tax in any year for the benefit of the port authority. The tax must not exceed 0.01813 percent
of estimated market value. The amount levied must be paid by the city treasurer to the
treasurer of the port authority, to be spent by the authority.new text begin The requirements of section
275.067 apply to a port authority that has not previously certified a levy.
new text end
Sec. 10.
Minnesota Statutes 2022, section 469.053, subdivision 6, is amended to read:
Subd. 6.
Discretionary city levy.
Upon request of a port authority, the port authority's
city may levy a tax to be spent by and for its port authority. The tax must enable the port
authority to carry out efficiently and in the public interest sections 469.048 to 469.068 to
create and develop industrial development districts. The levy must not be more than 0.00282
percent of estimated market value. The county treasurer shall pay the proceeds of the tax
to the port authority treasurer. The money may be spent by the authority in performance of
its duties to create and develop industrial development districts. In spending the money the
authority must judge what best serves the public interest. The levy in this subdivision is in
addition to the levy in subdivision 4.new text begin The requirements of section 275.067 apply to a port
authority that has not previously certified a levy.
new text end
Sec. 11.
Minnesota Statutes 2022, section 469.107, subdivision 1, is amended to read:
Subdivision 1.
City tax levy.
A city may, at the request of the authority, levy a tax in
any year for the benefit of the authority. The tax must be not more than 0.01813 percent of
estimated market value. The amount levied must be paid by the city treasurer to the treasurer
of the authority, to be spent by the authority.new text begin The requirements of section 275.067 apply to
an economic development authority that has not previously certified a levy.
new text end
Sec. 12.
Minnesota Statutes 2022, section 474A.02, subdivision 22b, is amended to read:
Subd. 22b.
Public facilities project.
"Public facilities project" means deleted text begin any publicly owned
facility, ordeleted text end a facility deleted text begin that is used for district heating or coolingdeleted text end , whether publicly or privately
owned, that is eligible to be financed with the proceeds of public facilities bonds as defined
under section 474A.02, subdivision 23a.
Sec. 13.
Minnesota Statutes 2022, section 474A.02, subdivision 23a, is amended to read:
Subd. 23a.
Qualified bonds.
"Qualified bonds" means the specific type or types of
obligations that are subject to the annual volume cap. Qualified bonds include the following
types of obligations as defined in federal tax law:
(a) "public facility bonds" means "exempt facility bonds" as defined in federal tax law,
except for residential rental project bondsdeleted text begin , which are those obligations issued to finance
airports, docks and wharves, mass commuting facilities, facilities for the furnishing of water,
sewage facilities, solid waste disposal facilities, facilities for the local furnishing of electric
energy or gas, local district heating or cooling facilities, and qualified hazardous waste
facilitiesdeleted text end . New bonds and other obligations are ineligible to receive state allocations or
entitlement authority for public facility projects under this section if they have been issued:
(1) for the purpose of refinancing, refunding, or otherwise defeasing existing debt; and
(2) more than one calendar year prior to the date of application;
(b) "residential rental project bonds" which are those obligations issued to finance
qualified residential rental projects;
(c) "mortgage bonds";
(d) "small issue bonds" issued to finance manufacturing projects and the acquisition or
improvement of agricultural real or personal property under sections 41C.01 to 41C.13;
(e) "student loan bonds" issued by or on behalf of the Minnesota Office of Higher
Education;
(f) "redevelopment bonds";
(g) "governmental bonds" with a nonqualified amount in excess of $15,000,000 as set
forth in section 141(b)5 of federal tax law; and
(h) "enterprise zone facility bonds" issued to finance facilities located within
empowerment zones or enterprise communities, as authorized under Public Law 103-66,
section 13301.
Sec. 14.
Minnesota Statutes 2022, section 475.54, subdivision 1, is amended to read:
Subdivision 1.
In installments; exception; annual limit.
Except as provided in
subdivision 3, 5a, 15, or 17, or as expressly authorized in another law, all obligations of
each issue shall mature or be subject to mandatory sinking fund redemption in installments,
the first not later than three years and the last not later than 30 years from the date of the
issue; or 40 years or the useful life of the asset, whichever is less, for deleted text begin municipal water and
wastewater treatment systems anddeleted text end essential community facilities financed or guaranteed by
the United States Department of Agriculturenew text begin and municipal water and wastewater treatment
systemsnew text end . No amount of principal of the issue payable in any calendar year shall exceed an
amount equal to the smallest amount payable in any preceding calendar year ending three
years or more after the issue date multiplied:
(1) by five, in the case of obligations maturing not later than 25 years from the date of
issue; and
(2) by six, in the case of obligations maturing 25 years or later from the date of issue.
ARTICLE 11
PURPOSE STATEMENTS
Section 1. new text begin STATEMENT OF INTENT; TAX EXPENDITURE PURPOSE
STATEMENTS.
new text end
new text begin
The intent of this article is to identify purpose statements for the tax expenditures
identified, in accordance with Minnesota Statutes, section 3.192. The purpose statements
in this article include purpose statements for tax expenditures in this act, as well as purpose
statements that were included in proposed legislation, but were omitted from the legislation
that enacted the expenditures. The provisions of this article are intended to provide context
for evaluating the effectiveness of the tax expenditures referenced and are not intended to
have a substantive effect on the meaning or administration of the laws referenced.
new text end
Sec. 2. new text begin TAX EXPENDITURE PURPOSE STATEMENTS.
new text end
new text begin Subdivision 1. new text end
new text begin Intent. new text end
new text begin
In accordance with the requirements in Minnesota Statutes, section
3.192, the purpose and goals for the tax expenditures in this act are listed in this section.
new text end
new text begin Subd. 2. new text end
new text begin Individual income and corporate franchise tax expenditures. new text end
new text begin
(a) The purpose
of the credit in article 1, sections 2 to 5, is to continue to encourage the rental and sales of
agricultural assets to beginning farmers. The standard against which effectiveness is to be
measured is the increase in the number of beginning farmers in the state or an increase in
the amount of agricultural products produced by those farmers.
new text end
new text begin
(b) The purpose of the credit in article 1, sections 6 to 8, 29, and 44, is to continue to
encourage investment in Minnesota film productions. The standard against which
effectiveness is to be measured is the increase in the number of these productions and people
employed in the state's film industry.
new text end
new text begin
(c) The purpose of the subtraction in article 1, sections 10 and 21, is to ensure that
settlements for sexual harassment and abuse are not taxed in Minnesota. The standard against
which effectiveness is to be measured is an increase in the number of individuals claiming
this subtraction.
new text end
new text begin
(d) The purpose of the tax expenditure in article 1, section 22, providing a subtraction
for a portion of public pension benefits, is to provide additional income to retirees receiving
the pension benefits covered by the subtraction and equalize the tax treatment of Social
Security income and public pension income based on service for which an employee did
not earn Social Security. The standards of effectiveness against which the expenditure is to
be measured are the increase in after-tax income of taxpayers who claimed the subtraction,
and the average tax rate applied to the pension benefits of those claiming the subtraction
and comparable individuals with Social Security income.
new text end
new text begin
(e) The purpose of the subtraction in article 1, section 39, is to encourage sales of
manufactured home parks to manufactured home park cooperatives. The standard against
which effectiveness is to be measured is an increase in the number of parks owned by
cooperatives.
new text end
new text begin
(f) The purpose of the subtraction in article 1, section 47, is to provide a retroactive
subtraction for certain unemployment compensation to individuals who were denied
compensation in 2021. The standard against which effectiveness is to be measured is an
increase in the amount of this subtraction claimed retroactively.
new text end
new text begin Subd. 3. new text end
new text begin Property tax purpose statements. new text end
new text begin
(a) The purpose of the exemption in article
3, section 1, for certain airport hangars used in the manufacture of aircraft and the net tax
capacity reduction for certain airport property is to promote the development of aircraft
manufacturing operations in cities with a population under 150,000. The standard against
which effectiveness is to be measured is the number of aircraft manufacturing operations
in the state in cities with a population under 150,000.
new text end
new text begin
(b) The purpose of extending the exemption in article 3, section 3, is to continue to
reduce the tax burden on property that is owned by the Minnesota Chippewa Tribe and used
for public purposes or for institutions of purely public charity. The standard against which
effectiveness is to be measured is the amount of property tax paid by this property compared
to the amount of tax that would be paid by the property if it did not receive the exemption.
new text end
new text begin
(c) The purpose of the exemption established in article 3, section 4, is to reduce the tax
burden on an elderly living facility that is owned and operated by an nonprofit organization
which provides care for persons whose annual income is less than 50 percent of the median
income for the area. The standard against which effectiveness is to be measured is the
amount of property tax paid by this property compared to the amount of tax that would be
paid by the property if it did not receive the exemption.
new text end
new text begin
(d) The purpose of the creation of the 4d(2) property tax classification in article 3, section
13, is to reduce the tax burden on community land trust property that is owned and used as
a homestead by the occupant. The standard against which effectiveness is to be measured
is the amount of property tax paid by community land trust units that qualify for homestead
compared to the amount of tax that would be paid by the properties if they were classified
as 1a residential homesteads.
new text end
new text begin Subd. 4. new text end
new text begin Sales tax purpose statements. new text end
new text begin
(a) The purpose of the exemption in article 5,
section 6, is to create parity between disregarded limited liability companies and other
companies that receive an exemption for isolated and occasional sales of tangible personal
property not made in the normal course of business of selling that kind of property. The
standard against which effectiveness is to be measured is the number of sales between a
sole member of a disregarded limited liability company and the disregarded limited liability
company.
new text end
new text begin
(b) The purpose of the exemption in article 5, section 10, to reduce the cost to nonprofit
organizations for materials and equipment used to maintain state or grant-in-aid snowmobile
trails. The standard against which effectiveness is to be measured is the increase in available
funds that can be used by the nonprofit organizations for snowmobile trail grooming and
maintenance.
new text end
new text begin
(c) The purpose of the exemption in article 5, section 11, is to hold harmless the taxpayers
who used natural gas for their primary source of residential heat whose fees are subject to
a cost recovery plan for the price increase in natural gas during the period February 13,
2021, to February 17, 2021. The standard against which effectiveness is to be measured is
the credit in the amount of exempt taxes provided by the utilities to residential customer
accounts.
new text end
new text begin
(d) The purpose of the exemptions in article 5, sections 12 to 27, is to reduce the cost
of local government construction projects. The standard against which effectiveness is to
be measured is the decrease in the growth in local property taxes in these communities.
new text end
new text begin Subd. 5. new text end
new text begin Renter's credit purpose statement. new text end
new text begin
The purpose of the tax expenditure in
article 7, establishing an income tax credit for renters, is to reduce the property taxes paid
by renters who have high property taxes relative to their incomes. The standard or goal
against which its effectiveness may be measured is the reduction in the effective tax rate
paid by credit recipients, as measured by the amount of property taxes paid, net of refunds,
as a share of income.
new text end
Sec. 3. new text begin PURPOSE STATEMENTS; 2019 OMNIBUS TAX BILL.
new text end
new text begin Subdivision 1. new text end
new text begin Source of purpose statements. new text end
new text begin
The purpose statements in this section
were originally included in the 2019 bill styled as House File 2125, the third engrossment,
in the 91st Legislature. The tax expenditures referenced were enacted in Laws 2019, First
Special Session chapter 6.
new text end
new text begin Subd. 2. new text end
new text begin Sales tax purpose statements. new text end
new text begin
(a) The purpose of the exemption in Minnesota
Statutes, section 297A.67, subdivision 37, is to level the playing field for costs between
local governments and private entities of managing invasive species in lakes. The goal is
an increase in the number of lakes where invasive species are being controlled.
new text end
new text begin
(b) The purpose of the exemption in Minnesota Statutes, section 297A.70, subdivision
10, paragraph (c), is to reduce the cost of providing education on the state's farming history.
The goal is to decrease the public cost of access to this facility.
new text end
new text begin
(c) The purpose of the exemption in Minnesota Statutes, section 297A.70, subdivision
20, is to decrease maintenance costs for the ice arena. The goal is to increase local recreation
opportunities and reduce local participation costs.
new text end
new text begin
(d) The purpose of the exemption in Minnesota Statutes, section 297A.70, subdivision
21, is to help county agricultural societies maintain county fairgrounds. The goal is to
increase spending on fairground maintenance and capital improvements.
new text end
new text begin
(e) The purpose of the exemptions in Minnesota Statutes, section 297A.71, subdivision
50, is to encourage rebuilding in the damaged area of each city. The goal is to have these
properties returned to the tax rolls at the same or greater value.
new text end
new text begin
(f) The purpose of the exemptions in Minnesota Statutes, section 297A.71, subdivision
51, is to encourage rebuilding in the damaged area of each city. The goal is to have these
properties returned to the tax rolls at the same or greater value.
new text end
new text begin
(g) The purpose of the exemption in Minnesota Statutes, section 297A.71, subdivision
52, is to reduce the cost of providing local public services in these communities. The goal
is to decrease the growth in local property taxes and service fees in these communities.
new text end
new text begin Subd. 3. new text end
new text begin Income and corporate franchise tax purpose statements. new text end
new text begin
(a) The purpose
and goal of the tax expenditure under Minnesota Statutes, sections 290.0132, subdivision
29; 290.0134, subdivision 18; 290.0921, subdivisions 2 and 3; relating to disallowed expenses
under section 280E of the Internal Revenue Code, is to provide equitable state tax treatment
between medical cannabis manufacturers that are not allowed to deduct their business
expenses under the Internal Revenue Code and manufacturers of other goods who may
deduct these expenses.
new text end
new text begin
(b) The purpose of the tax expenditures under Minnesota Statutes, section 116J.8737,
subdivision 1, relating to the minimum qualified investment threshold for minority-, veteran-,
or women-owned businesses; subdivision 5, relating to the $10,000,000 allocation for taxable
years beginning after December 31, 2018, and before January 1, 2020, and beginning after
December 31, 2020, and before January 1, 2022; and subdivision 12, relating to the extension
of the sunset date; is to encourage investment in innovative small businesses in Minnesota
and the goal of the these expenditures is to increase the number of these businesses in the
state, the number of people employed by these businesses in the state, the productivity of
these businesses, or the sales of these businesses.
new text end
Sec. 4. new text begin PURPOSE STATEMENTS; 2017 OMNIBUS TAX BILL.
new text end
new text begin Subdivision 1. new text end
new text begin Source of purpose statements. new text end
new text begin
The purpose statements in this section
were originally included in the 2015 bill styled as House File 848, the third engrossment,
in the 89th Legislature. The tax expenditures referenced were enacted in Laws 2017, First
Special Session chapter 1.
new text end
new text begin Subd. 2. new text end
new text begin Sales tax purpose statements. new text end
new text begin
(a) The provision of Minnesota Statutes, section
297A.67, subdivision 34, is intended to provide equitable tax treatment for different types
of investments. The standard against which effectiveness is to be measured is the increase
in precious metal bullion sold in the state and in number of coin and precious metal trade
shows held in the state.
new text end
new text begin
(b) The provisions of Minnesota Statutes, section 297A.70, subdivision 14, are intended
to increase the ability of the nonprofit to provide opportunities for educating the public on
the history of farming. The standard against which effectiveness is to be measured is an
increase in the percent of the organization's budget being used for direct spending for its
mission.
new text end
new text begin Subd. 3. new text end
new text begin Income and corporate franchise tax purpose statements. new text end
new text begin
(a) The provisions
of Minnesota Statutes, section 290.0132, subdivision 26, are intended to attract to Minnesota
recipients of Social Security benefits and to retain those already present, by providing a
phased-in subtraction of Social Security benefits. The standard against which effectiveness
is to be measured is the change over time in the number of Social Security recipients in
Minnesota, after adjusting for demographic changes.
new text end
new text begin
(b) The provisions of Minnesota Statutes, section 290.0132, subdivision 23, and
Minnesota Statutes, section 290.0684, are intended to increase saving for higher education
expenses. The standard against which effectiveness is to be measured is the change over
time, as tracked by the Minnesota Office of Higher Education, in: (1) the estimated number
of Minnesota residents making contributions to the Minnesota College Savings Plan; and
(2) the amount contributed.
new text end
new text begin
(c) The modifications to Minnesota Dependent Care Credit amending Minnesota Statutes,
section 290.067, subdivision 1, and repealing Minnesota Statutes, section 290.067,
subdivision 2, modifying the limitations for claiming the credit, are intended to simplify
the dependent care credit by tying it more closely to the federal credit and to recognize an
increased burden in dependent care expenses as a cost of workforce participation for parents.
The standard against which effectiveness is to be measured is the change in the error rate
on claims for dependent care credits and the change in the average credit amount claimed
by parents in the income range eligible for the credit under present law.
new text end
new text begin
(d) The provisions of Minnesota Statutes, section 290.0686, are intended to improve the
quality of teaching in Minnesota kindergarten through grade 12 schools by encouraging
teachers to obtain master's degrees in the subject areas they teach. The standard against
which effectiveness is to be measured is the change over time in the number of kindergarten
through grade 12 classroom teachers with master's degrees in the subject area that they
teach.
new text end
new text begin
(e) The provisions of Minnesota Statutes, section 290.0682, are intended to reduce the
debt burden of recent graduates of higher education programs and to reduce and potentially
reverse the current net demographic loss of young adults in Minnesota. The standard against
which effectiveness is to be measured is the change over time in the number of young adults
choosing to move to or remain in Minnesota, as measured by the state demographer.
new text end
new text begin
(f) The purpose of the tax expenditures under Minnesota Statutes, sections 290.01,
subdivision 19; 289A.02, subdivision 7; 290.01, subdivision 31; and 290A.03, subdivision
15; conforming Minnesota individual income, corporate franchise, and estate taxes to changes
in federal law through December 16, 2016, are intended to simplify compliance with and
administration of those taxes. The standard against which effectiveness is to be measured
is the reduction in the number of income tax forms and text in the instructions for taxpayers
resulting from this provision.
new text end
new text begin Subd. 4. new text end
new text begin Other purpose statements. new text end
new text begin
(a) The provisions in Minnesota Statutes, section
290.06, subdivision 38, are intended to reduce the effect of school bond referenda on owners
of agricultural property. The standard against which the effectiveness of the credit is to be
measured is the amount of property tax reductions provided to owners of agricultural land.
new text end
new text begin
(b) The provisions in Minnesota Statutes, section 298.24, subdivision 1, are intended to
encourage the production of direct reduced ore and the establishment of more direct reduced
ore production facilities in Minnesota. The standard against which this effectiveness is to
be measured is the amount of direct reduced ore produced and the number of producers of
direct reduced ore before and after enactment.
new text end
Sec. 5. new text begin PURPOSE STATEMENTS; 2017 TAX CONFORMITY BILL.
new text end
new text begin Subdivision 1. new text end
new text begin Source of purpose statements. new text end
new text begin
The purpose statements in this section
were originally included in the 2015 bill styled as House File 848, the third engrossment,
in the 89th Legislature. The tax expenditure referenced was enacted in Laws 2017, chapter
1.
new text end
new text begin Subd. 2. new text end
new text begin Income and corporate franchise tax purpose statements. new text end
new text begin
The purpose of
the tax expenditures under Minnesota Statutes, sections 290.01, subdivision 19; 289A.02,
subdivision 7; 290.01, subdivision 31; and 290A.03, subdivision 15; conforming Minnesota
individual income, corporate franchise, and estate taxes to changes in federal law through
December 16, 2016, are intended to simplify compliance with and administration of those
taxes. The standard against which effectiveness is to be measured is the reduction in the
number of income tax forms and text in the instructions for taxpayers resulting from this
provision.
new text end
Sec. 6. new text begin PURPOSE STATEMENTS; 2016 OMNIBUS SUPPLEMENTAL SPENDING
BILL.
new text end
new text begin Subdivision 1. new text end
new text begin Source of purpose statements. new text end
new text begin
The purpose statements in this section
were originally included in the 2015 bill styled as House File 848, the third engrossment,
in the 89th Legislature. The tax expenditure referenced was enacted in Laws 2016, chapter
189.
new text end
new text begin Subd. 2. new text end
new text begin Income and corporate franchise tax purpose statements. new text end
new text begin
The provisions of
Minnesota Statutes, section 290.0132, subdivision 21, are intended to attract to Minnesota
military retirees, and to retain those already present, by allowing a subtraction from income
tied to the number of years of military service provided. The standard against which
effectiveness is to be measured is the change over time in the number of military retirees
in Minnesota.
new text end
Sec. 7. new text begin PURPOSE STATEMENTS; 2014 OMNIBUS TAX BILL.
new text end
new text begin Subdivision 1. new text end
new text begin Source of purpose statements. new text end
new text begin
The purpose statements in this section
were originally included in the 2014 bill styled as House File 3167, the third engrossment,
in the 89th Legislature. The tax expenditures referenced were enacted in Laws 2014, chapter
308.
new text end
new text begin Subd. 2. new text end
new text begin Sales tax purpose statements. new text end
new text begin
(a) The provision of Minnesota Statutes, section
297A.68, subdivision 3a, defining certain coin-operated amusement devices as sales for
resale is intended to reduce tax pyramiding by exempting an input to a taxable service.
new text end
new text begin
(b) The provision of Minnesota Statutes, section 297A.70, subdivision 2, paragraph (b),
clause (5), modifying the sales tax on certain local government purchases is intended to
reduce the cost of providing local government services, remove a barrier for
intergovernmental cooperation, and reduce existing compliance and administration costs
for local governments.
new text end
new text begin
(c) The provisions of Minnesota Statutes, section 297A.70, subdivision 13, raising the
limit on tax exempt fund-raising by nonprofit organizations are intended to reflect the impact
on inflation over time on the limit and reduce compliance costs for groups that exceed the
limit.
new text end
new text begin
(d) The provision of Minnesota Statutes, section 297G.03, subdivision 5, allowing a
microdistillery credit is to relieve small distillers of the burden of paying excise tax on the
distribution of free samples of their products and to encourage the development and marketing
of products by niche distillers in the state.
new text end
new text begin Subd. 3. new text end
new text begin Income and corporate franchise tax purpose statements. new text end
new text begin
The modifications
to the National Guard subtraction contained in Laws 2014, chapter 308, article 4, section
12, are intended to provide equitable tax treatment to Minnesota residents who are members
of the National Guard and serve full time in Active Guard/Reserve status by allowing an
income tax subtraction for military pay equivalent to that allowed under Minnesota Statutes
2014, section 290.01, subdivision 19b, clause (11), now codified as Minnesota Statutes,
section 290.0132, subdivision 11, for Minnesota residents who serve full time in the armed
forces of the United States.
new text end
new text begin Subd. 4. new text end
new text begin Other purpose statements. new text end
new text begin
The purpose of the tax expenditure under Minnesota
Statutes, section 291.005, subdivision 1, clause (8), item (iii), deeming certain qualified art
on loan to Minnesota nonprofit entities as property with a situs outside Minnesota under
the estate tax is intended to prevent the Minnesota estate tax from discouraging nonresident
owners of art from loaning it to Minnesota nonprofit museums.
new text end
ARTICLE 12
MISCELLANEOUS
Section 1.
Minnesota Statutes 2022, section 3.8855, subdivision 4, is amended to read:
Subd. 4.
Duties.
(a) deleted text begin In the firstdeleted text end new text begin For not more thannew text end three years after the commission is
established, the commission must complete an initial review of the state's tax expenditures.
The initial review must identify the purpose of each of the state's tax expenditures, if none
was identified in the enacting legislation in accordance with section 3.192. The commission
may also identify metrics for evaluating the effectiveness of an expenditure.
(b) In each year following the initial review under paragraph (a), the commission must
review and evaluate Minnesota's tax expenditures on a regular, rotating basis. The
commission must establish a review schedule that ensures each tax expenditure will be
reviewed by the commission at least once every ten years. The commission may review
expenditures affecting similar constituencies or policy areas in the same year, but the
commission must review a subset of the tax expenditures within each tax type each year.
To the extent possible, the commission must review a similar number of tax expenditures
within each tax type each year. The commission may decide not to review a tax expenditure
that is adopted by reference to federal law.
(c) Before December 1 of the year a tax expenditure is included in a commission report,
the commission must hold a public hearing on the expenditure, including but not limited to
a presentation of the review components in subdivision 5.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2022, section 3.8855, subdivision 7, is amended to read:
Subd. 7.
Report to legislature.
(a) By December 15 of each year, the commission must
submit a written report to the legislative committees with jurisdiction over tax policy. The
report must detail the results of the commission's review of tax expenditures deleted text begin indeleted text end new text begin fornew text end the
deleted text begin previous calendardeleted text end year, including the review components detailed in subdivision 5.
(b) Notwithstanding paragraph (a), during the period of initial review under subdivision
4, the report may be limited to the purpose statements and metrics for evaluating the
effectiveness of expenditures, as identified by the commission. The report may also include
relevant publicly available data on an expenditure.
(c) The report may include any additional information the commission deems relevant
to the review of an expenditure.
(d) The legislative committees with jurisdiction over tax policy must hold a public
hearing on the report during the regular legislative session in the year following the year in
which the report was submitted.
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.
new text begin
[16A.067] TAXPAYER RECEIPT.
new text end
new text begin
(a) The commissioner, in consultation with the commissioner of revenue, must develop
and publish on the Department of Management and Budget's website an interactive taxpayer
receipt in accordance with this section. The receipt must describe the share of state general
fund expenditures represented by major expenditure categories in the most recent fiscal
year for which data is available. The receipt must show the approximate allocation of motor
vehicle fuel taxes among eligible transportation purposes.
new text end
new text begin
(b) For each expenditure category, the receipt must include select data on the performance
goals and outcomes for the category, based on the goals and outcomes data required under
section 16A.10, subdivision 1b.
new text end
new text begin
(c) The website must allow a user to input an income amount, and must estimate the
amount of major state taxes paid by the user. The website must allocate the user's estimated
state tax liability to each major expenditure category based on the category's percentage
share of total state general fund spending. For the purposes of this section, "major state
taxes" means income, sales, alcohol, tobacco, and motor vehicle fuels taxes.
new text end
new text begin
(d) Using the income amount entered by the user, the website must estimate the amount
of income and direct sales taxes paid based upon the taxpayer's income. The website must
allow a user to indicate whether the user used tobacco, consumed alcohol, or purchased
motor vehicle fuel in the previous year, and provide a corresponding estimate of the cigarette,
alcohol, and motor vehicle fuel taxes paid by the user.
new text end
new text begin
(e) The commissioner of management and budget, in consultation with the commissioner
of revenue, must update the receipt by December 31 of each year, and must annually promote
to the public the availability of the website.
new text end
Sec. 4.
Minnesota Statutes 2022, section 270A.03, subdivision 2, is amended to read:
Subd. 2.
Claimant agency.
"Claimant agency" means any state agency, as defined by
section 14.02, subdivision 2, the regents of the University of Minnesota, any district court
of the state, any county, any statutory or home rule charter city, including a city that is
presenting a claim for a municipal hospital or a public library or a municipal ambulance
service, a hospital district, deleted text begin a private nonprofit hospital that leases its building from the county
or city in which it is located,deleted text end any ambulance service licensed under chapter 144E, any public
agency responsible for child support enforcement, any public agency responsible for the
collection of court-ordered restitution, and any public agency established by general or
special law that is responsible for the administration of a low-income housing program.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
Minnesota Statutes 2022, section 270C.52, subdivision 2, is amended to read:
Subd. 2.
Payment agreements.
(a) When any portion of any tax payable to the
commissioner together with interest and penalty thereon, if any, has not been paid, the
commissioner may extend the time for payment for a further period. When the authority of
this section is invoked, the extension shall be evidenced by written agreement signed by
the taxpayer and the commissioner, stating the amount of the tax with penalty and interest,
if any, and providing for the payment of the amount in installments.
(b) The agreement may contain a confession of judgment for the amount and for any
unpaid portion thereof. If the agreement contains a confession of judgment, the confession
of judgment must provide that the commissioner may enter judgment against the taxpayer
in the district court of the county of residence as shown upon the taxpayer's tax return for
the unpaid portion of the amount specified in the extension agreement.
(c) The agreement shall provide that it can be terminated, after notice by the
commissioner, if information provided by the taxpayer prior to the agreement was inaccurate
or incomplete, collection of the tax covered by the agreement is in jeopardy, there is a
subsequent change in the taxpayer's financial condition, the taxpayer has failed to make a
payment due under the agreement, or the taxpayer has failed to pay any other tax or file a
tax return coming due after the agreement.
(d) The notice must be given at least 14 calendar days prior to termination, and shall
advise the taxpayer of the right to request a reconsideration from the commissioner of
whether termination is reasonable and appropriate under the circumstances. A request for
reconsideration does not stay collection action beyond the 14-day notice period. If the
commissioner has reason to believe that collection of the tax covered by the agreement is
in jeopardy, the commissioner may proceed under section 270C.36 and terminate the
agreement without regard to the 14-day period.
(e) The commissioner may accept other collateral the commissioner considers appropriate
to secure satisfaction of the tax liability. The principal sum specified in the agreement shall
bear interest at the rate specified in section 270C.40 on all unpaid portions thereof until the
same has been fully paid or the unpaid portion thereof has been entered as a judgment. The
judgment shall bear interest at the rate specified in section 270C.40.
(f) If it appears to the commissioner that the tax reported by the taxpayer is in excess of
the amount actually owing by the taxpayer, the extension agreement or the judgment entered
pursuant thereto shall be corrected. If after making the extension agreement or entering
judgment with respect thereto, the commissioner determines that the tax as reported by the
taxpayer is less than the amount actually due, the commissioner shall assess a further tax
in accordance with the provisions of law applicable to the tax.
(g) The authority granted to the commissioner by this section is in addition to any other
authority granted to the commissioner by law to extend the time of payment or the time for
filing a return and shall not be construed in limitation thereof.
deleted text begin
(h) The commissioner shall charge a fee for entering into payment agreements. The fee
is set at $50 and is charged for entering into a payment agreement, for entering into a new
payment agreement after the taxpayer has defaulted on a prior agreement, and for entering
into a new payment agreement as a result of renegotiation of the terms of an existing
agreement. The fee is paid to the commissioner before the payment agreement becomes
effective and does not reduce the amount of the liability.
deleted text end
new text begin EFFECTIVE DATE; APPLICATION. new text end
new text begin
This section is effective the day following
final enactment and applies to payment plans entered into 30 days after that date.
new text end
Sec. 6.
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. 7.
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. 8.
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. 9.
Minnesota Statutes 2022, section 289A.08, is amended by adding a subdivision to
read:
new text begin Subd. 18. new text end
new text begin Taxpayer receipt. new text end
new text begin
(a) The commissioner must offer all individual income
taxpayers the opportunity to elect to receive information about a taxpayer receipt via email
or United States mail. In the manner selected by the taxpayer, the commissioner must provide
the taxpayer with information about how to access the taxpayer receipt website established
under section 16A.067. The commissioner must allow a taxpayer to elect not to receive
information about the receipt.
new text end
new text begin
(b) Both the long and short forms described in subdivision 13 must include the
opportunity to elect to receive information about the receipt.
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. 10.
Minnesota Statutes 2022, section 297E.02, subdivision 6, is amended to read:
Subd. 6.
Combined net receipts tax.
(a) In addition to the taxes imposed under
subdivision 1, a tax is imposed on the combined net receipts of the organization. As used
in this section, "combined net receipts" is the sum of the organization's gross receipts from
lawful gambling less gross receipts directly derived from the conduct of paper bingo, raffles,
and paddlewheels, as defined in section 297E.01, subdivision 8, and less the net prizes
actually paid, other than prizes actually paid for paper bingo, raffles, and paddlewheels, for
the fiscal year. The combined net receipts of an organization are subject to a tax computed
according to the following schedule:
| If the combined net receipts for the fiscal year are: |
The tax is: |
|||
| Not over $87,500 |
deleted text begin ninedeleted text end new text begin 8.5new text end percent |
|||
| Over $87,500, but not over $122,500 |
deleted text begin $7,875deleted text end new text begin $7,438new text end plus deleted text begin 18deleted text end new text begin 17.5new text end percent of the amount over $87,500, but not over $122,500 |
|||
| Over $122,500, but not over $157,500 |
deleted text begin $14,175deleted text end new text begin $13,563new text end plus deleted text begin 27deleted text end new text begin 26new text end percent of the amount over $122,500, but not over $157,500 |
|||
| Over $157,500 |
deleted text begin $23,625deleted text end new text begin $22,663new text end plus deleted text begin 36deleted text end new text begin 34.75new text end percent of the amount over $157,500 |
(b) Gross receipts derived from sports-themed tipboards are exempt from taxation under
this section. For purposes of this paragraph, a sports-themed tipboard means a sports-themed
tipboard as defined in section 349.12, subdivision 34, under which the winning numbers
are determined by the numerical outcome of a professional sporting event.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for games reported as played after June
30, 2023.
new text end
Sec. 11.
Minnesota Statutes 2022, section 297E.021, subdivision 4, is amended to read:
Subd. 4.
Appropriation; general reserve account.
To the extent the commissioner
determines that revenues are available under subdivision 3 for the fiscal year, those amounts
are appropriated from the general fund for deposit in a general reserve account established
by order of the commissioner of management and budget. Amounts in this reserve are
appropriated as necessary for application against any shortfall in the amounts deposited to
the general fund under section 297A.994 or, after consultation with the Legislative
Commission on Planning and Fiscal Policy, amounts in this reserve are appropriated to the
commissioner of management and budget for other uses related to the stadium authorized
under section 473J.03, subdivision 8, that the commissioner deems financially prudent
including but not limited to reimbursements for capital and operating costs relating to the
stadium, refundings, and prepayment of debt. new text begin If the commissioner of management and
budget prepays the stadium bonds issued under section 16A.965, the commissioner must
not retain any tax for the purpose established under section 297A.994, subdivision 4, clause
(1). new text end In no event, shall available revenues be pledged, nor shall the appropriations of available
revenues made by this section constitute a pledge of available revenues as security for the
prepayment of principal and interest on the appropriation bonds under section 16A.965.
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 297H.13, subdivision 2, is amended to read:
Subd. 2.
Allocation of revenues.
(a) deleted text begin $33,760,000, or 70 percent, whichever is greater,deleted text end
Of the amounts remitted under this chapternew text begin , 70 percentnew text end must be credited to the environmental
fund established in section 16A.531, subdivision 1.
(b) new text begin In addition to the amounts credited to the environmental fund in paragraph (a), in
fiscal year 2024 and later, five percent of the amounts remitted under this chapter shall be
deposited into the resource management account in the environmental fund.
new text end
new text begin (c) new text end The remainder must be deposited into the general fund.
new text begin
(d) Beginning in fiscal year 2024 and annually thereafter, the money deposited in the
resource management account in the environmental fund under paragraph (b) is appropriated
to the commissioner of the Pollution Control Agency for distribution to counties under
section 115A.557, subdivision 2, paragraph (a), clauses (1) to (7) and (9) to (11).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 13.
Minnesota Statutes 2022, section 349.11, is amended to read:
349.11 PURPOSE.
The purpose of sections 349.11 to 349.22 is to regulate lawful gambling, to deleted text begin insuredeleted text end new text begin ensurenew text end
integrity of operations, deleted text begin anddeleted text end to provide for the use of net profits only for lawful purposesnew text begin ,
and to authorize only those games or game features discussed in this chapternew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for games approved after June 30, 2024.
new text end
Sec. 14.
Minnesota Statutes 2022, section 349.12, subdivision 12b, is amended to read:
Subd. 12b.
Electronic pull-tab device.
"Electronic pull-tab device" means a handheld
and portable electronic device that:
(1) is used to play one or more electronic pull-tab games;
(2) requires coded entry to activate play but does not allow the use of coin, currency, or
tokens to be inserted to activate play;
(3) requires that a player must new text begin individually new text end activate or new text begin individually new text end open each electronic
pull-tab ticket and each individual line, row, or column of each electronic pull-tab ticket;
(4) maintains information pertaining to accumulated win credits that may be applied to
games in play or redeemed upon termination of play;
(5) has no spinning reels or other representations that mimic a video slot machine;
(6) has no additional function as a gambling device other than as an electronic-linked
bingo game played on a device defined under section 349.12, subdivision 12a;
(7) may incorporate an amusement game feature as part of the pull-tab game but may
not require additional consideration for that feature or award any prize, or other benefit for
that feature;
(8) may have auditory or visual enhancements to promote or provide information about
the game being played, provided the component does not affect the outcome of a game or
display the results of a game;
(9) maintains, on nonresettable meters, a printable, permanent record of all transactions
involving each device and electronic pull-tab games played on the device;
(10) is not a pull-tab dispensing device as defined under subdivision 32a; deleted text begin and
deleted text end
(11) has the capability to allow use by a player who is visually impaireddeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(12) does not include representations that mimic the display or user interface of a video
slot machine by requiring a player to manually activate the reveal or result of each single
row of symbols with a separate and distinct action for each electronic pull-tab ticket.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for games approved after June 30, 2024.
new text end
Sec. 15.
Minnesota Statutes 2022, section 349.12, subdivision 12c, is amended to read:
Subd. 12c.
Electronic pull-tab game.
"Electronic pull-tab game" means a pull-tab game
containing:
(1) facsimiles of pull-tab tickets that are played on an electronic pull-tab device;
(2) a predetermined, finite number of winning and losing tickets, not to exceed 7,500
tickets;
(3) the same price for each ticket in the game;
(4) a price paid by the player of not less than 25 cents per ticket;
(5) tickets that are in conformance with applicable board rules for pull-tabs;
(6) winning tickets that comply with prize limits under section 349.211;
(7) a unique serial number that may not be regenerated;
(8) an electronic flare that displays the game name; form number; predetermined, finite
number of tickets in the game; and prize tier; deleted text begin and
deleted text end
(9) no spinning reels or other representations that mimic a video slot machinedeleted text begin .deleted text end new text begin ;
new text end
new text begin
(10) a mechanism requiring a player to manually activate each electronic pull-tab ticket
to be opened; and
new text end
new text begin
(11) a mechanism requiring a player to manually activate the reveal of each single row
of symbols with a separate and distinct action.
new text end
new text begin
Each electronic pull-tab game shall include a certification from a board-approved testing
laboratory that the game and device meets the standards and requirements established in
Minnesota Statutes and Minnesota Rules and is in conformance with game procedures
provided by the manufacturer.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for games approved after June 30, 2024.
new text end
Sec. 16.
Minnesota Statutes 2022, section 349.12, is amended by adding a subdivision to
read:
new text begin Subd. 25e. new text end
new text begin Manually activate. new text end
new text begin
For purposes of this section, "manually activate" means
that a person must either touch an icon on the electronic pull-tab device screen or press a
button located elsewhere on the electronic pull-tab device, or, exclusively for purposes of
accommodating use by a player who is visually impaired, perform some other action that
initiates activity on an electronic pull-tab device.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for games approved after June 30, 2024.
new text end
Sec. 17.
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. 18.
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) a definition describing the type or class of businesses to be included in the tourism
improvement district and subject to the service charge;
new text end
new text begin
(6) 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
(7) 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. 19.
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. 20.
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. 21.
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. 22.
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. 23.
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. 24.
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. 25.
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. 26.
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. 27.
Minnesota Statutes 2022, section 462A.38, is amended to read:
462A.38 WORKFORCE AND AFFORDABLE HOMEOWNERSHIP
DEVELOPMENT PROGRAM.
Subdivision 1.
Establishment.
A workforce and affordable homeownership development
program is established to award homeownership development grantsnew text begin and loansnew text end to cities,
tribal governments, nonprofit organizations, cooperatives created under chapter 308A or
308B, and community land trusts created for the purposes outlined in section 462A.31,
subdivision 1, for development of workforce and affordable homeownership projects. The
purpose of the program is to increase the supply of workforce and affordable, owner-occupied
multifamily or single-family housing throughout Minnesota.
Subd. 2.
Use of funds.
(a) Grant funds new text begin and loans new text end awarded under this program may be
used for:
(1) development costs;
(2) rehabilitation;
(3) land development; and
(4) residential housing, including storm shelters and related community facilities.
(b) A project funded through deleted text begin the grantdeleted text end new text begin thisnew text end program shall serve households that meet
the income limits as provided in section 462A.33, subdivision 5, unless a project is intended
for the purpose outlined in section 462A.02, subdivision 6.
Subd. 3.
Application.
The commissioner shall develop forms and procedures for soliciting
and reviewing applications for grantsnew text begin and loansnew text end under this section. The commissioner shall
consult with interested stakeholders when developing the guidelines and procedures for the
program. In making grantsnew text begin and loansnew text end , the commissioner shall establish semiannual application
deadlines in which grantsnew text begin and loansnew text end will be authorized from all or part of the available
appropriations.
Subd. 4.
Awarding grantsnew text begin and loansnew text end .
Among comparable proposals, preference must
be given to proposals that include contributions from nonstate resources for the greatest
portion of the total development cost.
Subd. 5.
Statewide program.
The agency shall attempt to make grantsnew text begin and loansnew text end in
approximately equal amounts to applicants outside and within the metropolitan areanew text begin , as
defined under section 473.121, subdivision 2new text end .
Subd. 6.
Report.
Beginning January 15, deleted text begin 2018deleted text end new text begin 2024new text end , the commissioner must annually
submit a report to the chairs and ranking minority members of the senate and house of
representatives committees having jurisdiction over housing and workforce development
specifying the projects that received grantsnew text begin and loansnew text end under this section and the specific
purposes for which the grantnew text begin or loannew text end funds were used.
new text begin Subd. 7. new text end
new text begin Workforce and affordable homeownership development account. new text end
new text begin
A
workforce and affordable homeownership development account is established in the housing
development fund. Money in the account, including interest, is appropriated to the
commissioner of the Housing Finance Agency for the purposes of this section. The amount
appropriated under this section must supplement traditional sources of funding for this
purpose and must not be used as a substitute for traditional sources of funding or to pay
debt service on bonds. All loan repayments received under this section are to be deposited
into the workforce and affordable homeownership development account in the housing
development fund. A borrower under this section may, instead of repaying its loan, spend
the money on a qualifying project under subdivision 2.
new text end
new text begin Subd. 8. new text end
new text begin Deposits; funding amount. new text end
new text begin
(a) In each of fiscal years 2024 and 2025, an
amount equal to $27,500,000 of the state's portion of the proceeds derived from the mortgage
registry tax imposed under section 287.035 and the deed tax imposed under section 287.21
is appropriated from the general fund to the commissioner of the Housing Finance Agency
to transfer to the housing development fund for deposit into the workforce and affordable
homeownership development account. In each fiscal year from 2026 to 2034, an amount
equal to $7,500,000 of the state's portion of the proceeds derived from the mortgage registry
tax imposed under section 287.035 and the deed tax imposed under section 287.21 is
appropriated from the general fund to the commissioner of the Housing Finance Agency to
transfer to the housing development fund for deposit into the workforce and affordable
homeownership development account. The appropriations must be made annually by
September 15.
new text end
new text begin
(b) This subdivision expires September 16, 2033.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2023.
new text end
Sec. 28.
new text begin
[477A.40] TRIBAL NATION AID.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
For the purposes of this section, the following terms have
the meanings given:
new text end
new text begin
(1) "distribution share" means the number of enrolled members in an eligible Tribal
Nation divided by the total number of enrolled members for all eligible Tribal Nations
certified under this section; and
new text end
new text begin
(2) "eligible Tribal Nation" means the following federally recognized Indian Tribes
located in Minnesota: Bois Forte Band; Fond du Lac Band; Grand Portage Band; Leech
Lake Band; Mille Lacs Band; White Earth Band; and Red Lake Nation.
new text end
new text begin Subd. 2. new text end
new text begin Distribution. new text end
new text begin
An eligible Tribal Nation's annual aid amount is equal to the sum
of:
new text end
new text begin
(1) $5,357,143; plus
new text end
new text begin
(2) the product of:
new text end
new text begin
(i) the eligible Tribal Nation's distribution share; multiplied by
new text end
new text begin
(ii) the amount appropriated under this section, minus $5,357,143 multiplied by the
number of eligible Tribal Nations receiving a distribution under this section.
new text end
new text begin Subd. 3. new text end
new text begin Certification. new text end
new text begin
In order to receive a distribution under this section, an eligible
Tribal Nation must certify to the commissioner of revenue the most recent estimate of the
total number of enrolled members of the eligible Tribal Nation. The information must be
annually certified by March 1 in the form prescribed by the commissioner of revenue. The
commissioner of revenue must annually calculate and certify the amount of aid payable to
each eligible Tribal Nation on or before August 1.
new text end
new text begin Subd. 4. new text end
new text begin Payments. new text end
new text begin
The commissioner of revenue must pay Tribal Nation aid annually
by December 26 of the year the aid is certified.
new text end
new text begin Subd. 5. new text end
new text begin Appropriation. new text end
new text begin
$75,000,000 is annually appropriated from the general fund
to the commissioner of revenue to make payments under this section.
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. 29.
Laws 1971, chapter 773, section 1, subdivision 2, as amended by Laws 1974,
chapter 351, section 5, Laws 1976, chapter 234, sections 1 and 7, Laws 1978, chapter 788,
section 1, Laws 1981, chapter 369, section 1, Laws 1983, chapter 302, section 1, Laws 1988,
chapter 513, section 1, Laws 1992, chapter 511, article 9, section 23, Laws 1998, chapter
389, article 3, section 27, Laws 2002, chapter 390, section 23, and Laws 2013, chapter 143,
article 12, section 18, is amended to read:
Subd. 2. For each of the years deleted text begin 2013 to 2024deleted text end new text begin 2023 to 2035new text end , the city of St. Paul is authorized
to issue bonds in the aggregate principal amount of deleted text begin $20,000,000deleted text end new text begin $30,000,000new text end for each year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after compliance by the governing
body of the city of St. Paul with Minnesota Statutes, section 645.021, subdivisions 2 and
3.
new text end
Sec. 30. new text begin DEPARTMENT OF REVENUE FREE FILING REPORT.
new text end
new text begin Subdivision 1. new text end
new text begin Department of Revenue free filing report. new text end
new text begin
(a) By January 15, 2024,
the commissioner of revenue must provide a written report to the chairs and ranking minority
members of the legislative committees with jurisdiction over taxes. The report must comply
with the requirements of Minnesota Statutes, sections 3.195 and 3.197, and must also provide
information on free electronic filing options for preparing and filing Minnesota individual
income tax returns.
new text end
new text begin
(b) The commissioner must survey tax preparation software vendors for information on
a free electronic preparation and filing option for taxpayers to file Minnesota individual
income tax returns. The survey must request information from vendors that addresses the
following concerns:
new text end
new text begin
(1) system development, capability, security, and costs for consumer-based tax filing
software;
new text end
new text begin
(2) costs per return that would be charged to the state of Minnesota to provide an
electronic individual income tax return preparation, submission, and payment remittance
process;
new text end
new text begin
(3) providing customer service and issue resolution to taxpayers using the software;
new text end
new text begin
(4) providing and maintaining an appropriate link between the Department of Revenue
and the Internal Revenue Service Modernized Electronic Filing Program;
new text end
new text begin
(5) ensuring that taxpayer return information is maintained and protected as required by
Minnesota Statutes, chapters 13 and 270B, Internal Revenue Service Publication 1075, and
any other applicable requirements; and
new text end
new text begin
(6) current availability of products for the free filing and submitting of both Minnesota
and federal returns offered to customers and the income thresholds for using those products.
new text end
new text begin
(c) The report by the commissioner must include at a minimum:
new text end
new text begin
(1) a review of options that other states use for state electronic filing;
new text end
new text begin
(2) an assessment of taxpayer needs for electronic filing, including current filing practices;
new text end
new text begin
(3) an analysis of alternative options to provide free filing, such as tax credits, vendor
incentives, or other benefits; and
new text end
new text begin
(4) an analysis of the Internal Revenue Service Free File Program usage.
new text end
new text begin Subd. 2. new text end
new text begin Appropriation; Department of Revenue free filing report. new text end
new text begin
$175,000 in fiscal
year 2024 is appropriated from the general fund to the commissioner of revenue for the free
filing report required under this section. This is a onetime appropriation.
new text end
Sec. 31. 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. 32. 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
Sec. 33. new text begin APPROPRIATION; CITY OF NORTHFIELD; GRANT.
new text end
new text begin
(a) $300,000 in fiscal year 2024 is appropriated from the general fund to the commissioner
of revenue for a grant to the city of Northfield. This is a onetime appropriation. The grant
must be paid by July 15, 2023.
new text end
new text begin
(b) The grant under this section must be used by the city of Northfield to pay for
infrastructure related to a cooperatively owned manufactured home park.
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. 34. new text begin APPROPRIATION; CITY OF ST. PAUL; GRANT.
new text end
new text begin
(a) $30,000,000 in fiscal year 2024 is appropriated from the general fund to the
commissioner of revenue for a grant to the city of St. Paul. This is a onetime appropriation.
The grant must be paid by July 15, 2023.
new text end
new text begin
(b) The grant under this section must be used by the city of St. Paul to pay capital and
administrative costs associated with street improvements.
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. 35. new text begin APPROPRIATION; CITY OF SPRING GROVE; FIRE REMEDIATION
GRANT.
new text end
new text begin
$250,000 in fiscal year 2024 is appropriated from the general fund to the commissioner
of revenue for a grant to the city of Spring Grove to remediate the effects of the fire in the
city on December 22, 2022. The grant recipient must use the money appropriated under this
section for remediation costs, including disaster recovery, infrastructure, reimbursement
for emergency personnel costs, reimbursement for equipment costs, and reimbursement for
property tax abatements incurred by public or private entities as a result of the fire. This
appropriation is onetime and is available until June 30, 2025.
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. 36. new text begin APPROPRIATION; TAXPAYER RECEIPT.
new text end
new text begin
$144,000 in fiscal year 2024 and $47,000 in fiscal year 2025 are appropriated from the
general fund to the commissioner of management and budget to develop and publish the
taxpayer receipt under Minnesota Statutes, section 16A.067.
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. 37. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2022, section 270A.04, subdivision 5,
new text end
new text begin
is repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 13
DEPARTMENT OF REVENUE:
INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES
Section 1.
Minnesota Statutes 2022, section 289A.50, is amended by adding a subdivision
to read:
new text begin Subd. 3a. new text end
new text begin Nonresident withholding tax refunds. new text end
new text begin
When there is an overpayment of
nonresident withholding tax by a partnership or S corporation, a refund allowable under
this section to the payor is limited to the amount of the overpayment that was not deducted
and withheld from the shares of the payor's partners or shareholders.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2022, section 290.06, subdivision 22, is amended to read:
Subd. 22.
Credit for taxes paid to another state.
(a) A taxpayer who is liable for taxes
based on net income to another state, as provided in paragraphs (b) through (f), upon income
allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to another state
if the tax is actually paid in the taxable year or a subsequent taxable year. A taxpayer who
is a resident of this state pursuant to section 290.01, subdivision 7, paragraph (b), and who
is subject to income tax as a resident in the state of the individual's domicile is not allowed
this credit unless the state of domicile does not allow a similar credit.
(b) For an individual, estate, or trust, the credit is determined by multiplying the tax
payable under this chapter by the ratio derived by dividing the income subject to tax in the
other state that is also subject to tax in Minnesota while a resident of Minnesota by the
taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue
Code, modified by the addition required by section 290.0131, subdivision 2, and the
subtraction allowed by section 290.0132, subdivision 2, to the extent the income is allocated
or assigned to Minnesota under sections 290.081 and 290.17.
(c) If the taxpayer is an athletic team that apportions all of its income under section
290.17, subdivision 5, the credit is determined by multiplying the tax payable under this
chapter by the ratio derived from dividing the total net income subject to tax in the other
state by the taxpayer's Minnesota taxable income.
(d)(1) The credit determined under paragraph (b) or (c) shall not exceed the amount of
tax so paid to the other state on the gross income earned within the other state subject to
tax under this chapter; and
(2) the allowance of the credit does not reduce the taxes paid under this chapter to an
amount less than what would be assessed if the gross income earned within the other state
were excluded from taxable net income.
(e) In the case of the tax assessed on a lump-sum distribution under section 290.032, the
credit allowed under paragraph (a) is the tax assessed by the other state on the lump-sum
distribution that is also subject to tax under section 290.032, and shall not exceed the tax
assessed under section 290.032. To the extent the total lump-sum distribution defined in
section 290.032, subdivision 1, includes lump-sum distributions received in prior years or
is all or in part an annuity contract, the reduction to the tax on the lump-sum distribution
allowed under section 290.032, subdivision 2, includes tax paid to another state that is
properly apportioned to that distribution.
(f) If a Minnesota resident reported an item of income to Minnesota and is assessed tax
in such other state on that same income after the Minnesota statute of limitations has expired,
the taxpayer shall receive a credit for that year under paragraph (a), notwithstanding any
statute of limitations to the contrary. The claim for the credit must be submitted within one
year from the date the taxes were paid to the other state. The taxpayer must submit sufficient
proof to show entitlement to a credit.
(g) For the purposes of this subdivision, a resident shareholder of a corporation treated
as an "S" corporation under section 290.9725, must be considered to have paid a tax imposed
on the shareholder in an amount equal to the shareholder's pro rata share of any net income
tax paid by the S corporation to another state. For the purposes of the preceding sentence,
the term "net income tax" means any tax imposed on or measured by a corporation's net
income.
(h) For the purposes of this subdivision, a resident partner of an entity taxed as a
partnership under the Internal Revenue Code must be considered to have paid a tax imposed
on the partner in an amount equal to the partner's pro rata share of any net income tax paid
by the partnership to another state. For purposes of the preceding sentence, the term "net
income" tax means any tax imposed on or measured by a partnership's net income. For
purposes of this paragraph, "partnership" includes a limited liability company and "partner"
includes a member of a limited liability company.
(i) For the purposes of this subdivision, "another state":
(1) includes:
(i) the District of Columbia; and
(ii) a province or territory of Canada; but
(2) excludes Puerto Rico and the several territories organized by Congress.
(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a state
by state basis.
(k) For a tax imposed by a province or territory of Canada, the tax for purposes of this
subdivision is the excess of the tax over the amount of the foreign tax credit allowed under
section 27 of the Internal Revenue Code. In determining the amount of the foreign tax credit
allowed, the net income taxes imposed by Canada on the income are deducted first. Any
remaining amount of the allowable foreign tax credit reduces the provincial or territorial
tax that qualifies for the credit under this subdivision.
(l)(1) The credit allowed to a qualifying individual under this section for tax paid to a
qualifying state equals the credit calculated under paragraphs (b) and (d), plus the amount
calculated by multiplying:
(i) the difference between the preliminary credit and the credit calculated under paragraphs
(b) and (d), by
(ii) the ratio derived by dividing the income subject to tax in the qualifying state that
consists of compensation for performance of personal or professional services by the total
amount of income subject to tax in the qualifying state.
(2) If the amount of the credit that a qualifying individual is eligible to receive under
clause (1) for tax paid to a qualifying state exceeds the tax due under this chapter before
the application of the credit calculated under clause (1), the commissioner shall refund the
excess to the qualifying individual. An amount sufficient to pay the refunds required by this
subdivision is appropriated to the commissioner from the general fund.
(3) For purposes of this paragraph, "preliminary credit" means the credit that a qualifying
individual is eligible to receive under paragraphs (b) and (d) for tax paid to a qualifying
state without regard to the limitation in paragraph (d), clause (2); "qualifying individual"
means a Minnesota resident under section 290.01, subdivision 7, paragraph (a), who received
compensation during the taxable year for the performance of personal or professional services
within a qualifying state; and "qualifying state" means a state with which an agreement
under section 290.081 is not in effect for the taxable year but was in effect for a taxable
year beginning before January 1, 2010.
new text begin
(m) For purposes of this subdivision, a resident sole member of a disregarded limited
liability company must be considered to have paid a tax imposed on the sole member in an
amount equal to the net income tax paid by the disregarded limited liability company to
another state. For the purposes of this paragraph, the term "disregarded limited liability
company" means a limited liability company that is disregarded as an entity separate from
its owner as defined in Code of Federal Regulations, title 26, section 301.7701, and "net
income tax" means any tax imposed on or measured by a disregarded limited liability
company's net income.
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 290.92, subdivision 20, is amended to read:
Subd. 20.
Miscellaneous withholding arrangements.
new text begin
(a) For purposes of this
subdivision:
new text end
new text begin
(1) "periodic payment" means a payment as defined under section 3405(e)(2) of the
Internal Revenue Code;
new text end
new text begin
(2) "nonperiodic distribution" means a distribution as defined under section 3405(e)(3)
of the Internal Revenue Code; and
new text end
new text begin
(3) "sick pay" means any amount which:
new text end
new text begin
(i) is paid to an employee pursuant to a plan to which the employer is a party; and
new text end
new text begin
(ii) constitutes remuneration or a payment in lieu of remuneration for any period during
which the employee is temporarily absent from work on account of sickness or personal
injuries.
new text end
deleted text begin (a)deleted text end new text begin (b)new text end For purposes of this section, any new text begin periodic new text end payment or new text begin nonperiodic new text end distribution to
an individual deleted text begin as defined under section 3405(e)(2) or (3) of the Internal Revenue Codedeleted text end shall
be treated as if it were a payment of wages by an employer to an employee for a payroll
periodnew text begin , and it is subject to withholding at a rate of 6.25 percent or any rate specified by the
recipientnew text end . Any payment to an individual of sick pay which does not constitute wages,
determined without regard to this subdivision, shall be treated as if it were a payment of
wages by an employer to an employee for a payroll period, if, at the time the payment is
made a request that such sick pay be subject to withholding under this section is in effect.
deleted text begin Sick pay means any amount which:
deleted text end
deleted text begin
(1) is paid to an employee pursuant to a plan to which the employer is a party, and
deleted text end
deleted text begin
(2) constitutes remuneration or a payment in lieu of remuneration for any period during
which the employee is temporarily absent from work on account of sickness or personal
injuries.
deleted text end
deleted text begin (b)deleted text end new text begin (c)new text end A request for withholding, the amount withheld, and sick pay paid pursuant to
certain collective bargaining agreements shall conform with the provisions of section
3402(o)(3), (4), and (5) of the Internal Revenue Code.
deleted text begin (c)deleted text end new text begin (d)new text end The commissioner is authorized by rules to provide for withholding:
(1) from remuneration for services performed by an employee for the employer which,
without regard to this subdivision, does not constitute wages, and
(2) from any other type of payment with respect to which the commissioner finds that
withholding would be appropriate under the provisions of this section, if the employer and
the employee, or in the case of any other type of payment the person making and the person
receiving the payment, agree to such withholding. Such agreement shall be made in such
form and manner as the commissioner may by rules provide. For purposes of this section
remuneration or other payments with respect to which such agreement is made shall be
treated as if they were wages paid by an employer to an employee to the extent that such
remuneration is paid or other payments are made during the period for which the agreement
is in effect.
deleted text begin (d)deleted text end new text begin (e)new text end An individual receiving a new text begin periodic new text end payment or new text begin nonperiodic new text end distribution under
paragraph deleted text begin (a)deleted text end new text begin (b)new text end may elect to have paragraph deleted text begin (a)deleted text end new text begin (b)new text end not apply to the payment or distribution
deleted text begin as follows.deleted text end new text begin , and an election remains in effect until revoked by such individual.
new text end
deleted text begin
(1) For payments defined under section 3405(e)(2) of the Internal Revenue Code, an
election remains in effect until revoked by such individual.
deleted text end
deleted text begin
(2) For distributions defined under section 3405(e)(3) of the Internal Revenue Code, the
election is on a distribution-by-distribution basis.
deleted text end
new text begin EFFECTIVE DATE; APPLICATION. new text end
new text begin
(a) This section is effective for periodic
payments and nonperiodic distributions made on or after the day following final enactment.
new text end
new text begin
(b) For periodic payments and nonperiodic distributions made on or after the day
following final enactment but before January 1, 2024, the commissioner of revenue must
not assess penalties relating to this amendment against a payor who complies with Minnesota
Statutes 2021 Supplement, section 290.92, subdivision 20.
new text end
Sec. 4.
Minnesota Statutes 2022, section 290.9705, subdivision 1, is amended to read:
Subdivision 1.
Withholding of payments to out-of-state contractors.
(a) In this section,
"person" means a person, corporation, or cooperative, the state of Minnesota and its political
subdivisions, and a city, county, and school district in Minnesota.
(b) A person who in the regular course of business is hiring, contracting, or having a
contract with a nonresident person or deleted text begin foreign corporationdeleted text end new text begin a corporation or cooperative
created or organized outside Minnesota,new text end to perform construction work in Minnesota, shall
deduct and withhold eight percent of payments made to the contractor if the value of the
contract exceeds $50,000.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
Minnesota Statutes 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 homesteads which
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, "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 deleted text begin 15deleted text end new text begin 31new text end 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 deleted text begin 15deleted text end new text begin 31new text end 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 retroactively for refund claims based on
property taxes payable in 2022 and thereafter.
new text end
ARTICLE 14
DEPARTMENT OF REVENUE:
FIRE AND POLICE STATE AIDS
Section 1.
Minnesota Statutes 2022, section 6.495, subdivision 3, is amended to read:
Subd. 3.
deleted text begin Reportdeleted text end new text begin Reportsnew text end to commissioner of revenue.
new text begin (a) On or before September 15,
November 1, March 1, and June 1, new text end the state auditor deleted text begin shalldeleted text end new text begin mustnew text end file with the commissioner
of revenue a financial compliance report certifying for each relief association:
(1) the completion of the annual financial report required under section 424A.014 and
the auditing or certification of those financial reports under subdivision 1; and
(2) the receipt of any actuarial valuations required under section 424A.093 or Laws
2013, chapter 111, article 5, sections 31 to 42.
new text begin
(b) The commissioner of revenue shall prescribe the content, format, and manner of the
financial compliance reports required by paragraph (a), pursuant to section 270C.30.
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. 2.
Minnesota Statutes 2022, section 477B.01, is amended by adding a subdivision to
read:
new text begin Subd. 1a. new text end
new text begin Apportionment agreement. new text end
new text begin
"Apportionment agreement" means an agreement
between two or more fire departments that provide contracted fire protection service to the
same municipality and establishes the percentage of the population and the percentage of
the estimated market value within the municipality serviced by each fire department.
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. 3.
Minnesota Statutes 2022, section 477B.01, subdivision 5, is amended to read:
Subd. 5.
Fire department.
new text begin (a) new text end "Fire department" deleted text begin includesdeleted text end new text begin means:
new text end
new text begin (1)new text end a municipal fire department deleted text begin anddeleted text end new text begin ;
new text end
new text begin (2)new text end an independent nonprofit firefighting corporationdeleted text begin .deleted text end new text begin ;
new text end
new text begin
(3) a fire department established as or operated by a joint powers entity; or
new text end
new text begin
(4) a fire protection special taxing district established under chapter 144F or special law.
new text end
new text begin
(b) This subdivision only applies to this chapter.
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. 4.
Minnesota Statutes 2022, section 477B.01, is amended by adding a subdivision to
read:
new text begin Subd. 7a. new text end
new text begin Joint powers entity. new text end
new text begin
"Joint powers entity" means a joint powers entity created
under section 471.59.
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 477B.01, subdivision 10, is amended to read:
Subd. 10.
Municipality.
(a) "Municipality" means:
(1) a home rule charter or statutory city;
(2) an organized town;
(3) deleted text begin a park district subject to chapter 398deleted text end new text begin a joint powers entitynew text end ;
(4) deleted text begin the University of Minnesotadeleted text end new text begin a fire protection special taxing districtnew text end ; deleted text begin anddeleted text end new text begin or
new text end
(5) an American Indian tribal government entity located within a federally recognized
American Indian reservation.
(b) This subdivision only applies to new text begin this new text end chapter deleted text begin 477Bdeleted 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 477B.01, subdivision 11, is amended to read:
Subd. 11.
Secretary.
new text begin (a) new text end "Secretary" meansnew text begin :
new text end
new text begin (1)new text end the secretary of an independent nonprofit firefighting corporation that has a subsidiary
incorporated firefighters' relief association or whose firefighters participate in the statewide
volunteer firefighter plandeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(2) the secretary of a joint powers entity or fire protection special taxing district or, if
there is no such person, the person primarily responsible for managing the finances of a
joint powers entity or fire protection special taxing district.
new text end
new text begin
(b) This subdivision only applies to this chapter.
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. 7.
Minnesota Statutes 2022, section 477B.02, subdivision 2, is amended to read:
Subd. 2.
Establishment of fire department.
(a) An independent nonprofit firefighting
corporation must be created under the nonprofit corporation act of this state operating for
the exclusive purpose of firefighting, or the governing body of a municipality must officially
establish a fire department.
(b) The fire department must have provided firefighting services for at least one calendar
yearnew text begin , and must have a current fire department identification number issued by the state fire
marshalnew 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 477B.02, subdivision 3, is amended to read:
Subd. 3.
deleted text begin Personnel anddeleted text end Benefits requirements.
deleted text begin
(a) A fire department must have a
minimum of ten paid or volunteer firefighters, including a fire chief and assistant fire chief.
deleted text end
deleted text begin
(b) The fire department must have regular scheduled meetings and frequent drills that
include instructions in firefighting tactics and in the use, care, and operation of all fire
apparatus and equipment.
deleted text end
deleted text begin (c)deleted text end new text begin (a)new text end The fire department must have a separate subsidiary incorporated firefighters'
relief association that provides retirement benefits or must participate in the statewide
volunteer firefighter plan; or if the municipality solely employs full-time firefighters as
defined in section 299N.03, subdivision 5, retirement coverage must be provided by the
public employees police and fire retirement plan.new text begin For purposes of retirement benefits, a fire
department may be associated with only one volunteer firefighters' relief association or one
account in the voluntary statewide volunteer firefighter retirement plan at one time.
new text end
deleted text begin (d)deleted text end new text begin (b)new text end Notwithstanding paragraph deleted text begin (c)deleted text end new text begin (a)new text end , a municipality without a relief association as
described under section 424A.08, paragraph (a), may still qualify to receive fire state aid if
all other requirements of this section are met.
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 477B.02, is amended by adding a subdivision to
read:
new text begin Subd. 4a. new text end
new text begin Public safety answering point requirement. new text end
new text begin
The fire department must be
dispatched by a public safety answering point as defined in section 403.02, subdivision 19.
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. 10.
Minnesota Statutes 2022, section 477B.02, subdivision 5, is amended to read:
Subd. 5.
Fire service contract or agreement; apportionment agreement filing
deleted text begin requirementdeleted text end new text begin requirementsnew text end .
(a) Every municipality or independent nonprofit firefighting
corporation must file deleted text begin a copy of any duly executed and valid fire service contract or agreementdeleted text end
with the commissionernew text begin (1) a copy of any duly executed and valid fire service contracts, (2)
written notification of any fire service contract terminations, and (3) written notification of
any dissolution of a fire department, within 60 days of contract execution or termination,
or department dissolutionnew text end .
(b) If more than one fire department provides service to a municipality, the fire
departments furnishing service must deleted text begin enter into an agreement apportioning among themselves
the percentage of the population and the percentage of the estimated market value of each
shared service fire department service area. The agreement must be in writing and must be
fileddeleted text end new text begin file an apportionment agreementnew text end with the commissioner.
new text begin
(c) When a municipality is a joint powers entity, it must file its joint powers agreement
with the commissioner. If the joint powers agreement does not include sufficient information
defining the fire department service area of the joint powers entity for the purposes of
calculating fire state aid, the secretary must file a written statement with the commissioner
defining the fire department service area.
new text end
new text begin
(d) When a municipality is a fire protection special taxing district, it must file its
resolution establishing the fire protection special taxing district, and any agreements required
for the establishment of the fire protection special taxing district, with the commissioner.
If the resolution or agreement does not include sufficient information defining the fire
department service area of the fire protection special taxing district, the secretary must file
a written statement with the commissioner defining the fire department service area.
new text end
new text begin
(e) The commissioner shall prescribe the content, format, and manner of the notifications,
apportionment agreements, and written statements under paragraphs (a) to (d), pursuant to
section 270C.30, except that copies of fire service contracts, joint powers agreements, and
resolutions establishing fire protection special taxing districts shall be filed in their existing
form.
new text end
new text begin
(f) A document filed with the commissioner under this subdivision must be refiled any
time it is updated within 60 days of the update. An apportionment agreement must be refiled
only when a change in the averaged sum of the percentage of population and percentage of
estimated market value serviced by a fire department subject to the apportionment agreement
is at least one percent. The percentage amount must be rounded to the nearest whole
percentage.
new text end
new text begin
(g) Upon the request of the commissioner, the county auditor must provide information
that the commissioner requires to accurately apportion the estimated market value of a fire
department service area for a fire department providing service to an unorganized territory
located in the county.
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. 11.
Minnesota Statutes 2022, section 477B.02, subdivision 8, is amended to read:
Subd. 8.
PERA certification to commissioner.
On or before February 1 each year, deleted text begin if
retirement coverage for a fire department is provided by the statewide volunteer firefighter
plan,deleted text end the executive director of the Public Employees Retirement Association must certify
deleted text begin the existence of retirement coverage.deleted text end new text begin to the commissioner the fire departments that transferred
retirement coverage to, or terminated participation in, the voluntary statewide volunteer
firefighter retirement plan since the previous certification under this paragraph. This
certification must include the number of active volunteer firefighters under section 477B.03,
subdivision 5, paragraph (e).
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. 12.
Minnesota Statutes 2022, section 477B.02, subdivision 9, is amended to read:
Subd. 9.
Fire department certification to commissioner.
On or before March 15 of
each year, the municipal clerk or the secretarydeleted text begin , and the fire chief,deleted text end must deleted text begin jointlydeleted text end certify to the
commissioner deleted text begin that the fire department exists and meets the qualification requirements of
this sectiondeleted text end new text begin the fire department service area as of December 31 of the previous year, and
that the fire department meets the qualification requirements of this section. The municipal
clerk or the secretary must provide the commissioner with documentation that the
commissioner deems necessary for determining eligibility for fire state aid or for calculating
and apportioning fire state aid under section 477B.03new text end . The certification must be on a form
prescribed by the commissioner and must include all other information that the commissioner
requires.new text begin The municipal clerk or the secretary must send a copy of the certification filed
under this subdivision to the fire chief within five business days of the date the certification
was filed with the commissioner.
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 477B.02, subdivision 10, is amended to read:
Subd. 10.
Penalty for failure to file new text begin or correct new text end certification.
(a) If the certification
under subdivision 9 is not filed with the commissioner on or before March deleted text begin 15deleted text end new text begin 1new text end , the
commissioner must notify the municipal clerk or the secretary that a penalty deleted text begin equal to a
portion or all of the current year aid will apply if the certification is not received within ten
days of the postmark date of the notificationdeleted text end new text begin will be deducted from fire state aid certified
for the current year if the certification is not filed on or before March 15new text end .
new text begin
(b) If the commissioner rejects the certification by the municipal clerk or secretary under
subdivision 9 for inaccurate or incomplete information, the municipal clerk or the secretary
must file a corrective certification after taking corrective action as identified by the
commissioner in the notice of rejection. The corrective certification must be filed within
30 days of the date on the notice of rejection or by March 15, whichever date is later.
new text end
deleted text begin (b)deleted text end new text begin (c) A penalty applies to (1) a certification under subdivision 9 filed after March 15,
and (2) a corrective certification under paragraph (b) filed after March 15 that is also filed
more than 30 days after the date on the notice of rejection.new text end The penalty deleted text begin for failure to file
the certification under subdivision 9deleted text end is equal to the amount of fire state aid determined for
the municipality or the independent nonprofit firefighting corporation for the current year,
multiplied by deleted text begin fivedeleted text end new text begin tennew text end percent for each week or fraction of a week that the certification new text begin or
corrective certification new text end is deleted text begin latedeleted text end new text begin filed after March 15 or more than 30 days after the date on
the notice of rejectionnew text end . deleted text begin The penalty must be computed beginning ten days after the postmark
date of the commissioner's notification.deleted text end Aid amounts forfeited as a result of the penalty
revert to the state general fund. Failure to receive the certification form is not a defense for
a failure to file.
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 477B.03, subdivision 2, is amended to read:
Subd. 2.
Apportionment of fire state aid.
(a) The amount of fire state aid available for
apportionment, before the addition of the minimum fire state aid allocation amount under
subdivision 5, is equal to 107 percent of the amount of premium taxes paid to the state upon
the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the
commissioner by companies or insurance companies on the Minnesota Fire Premium Reportnew text begin ,
except that credits claimed under section 297I.20, subdivisions 3, 4, and 5, do not affect the
calculation of the amount of fire state aid available for apportionmentnew text end . This amount must
be reduced by the amount required to pay the state auditor's costs and expenses of the audits
or exams of the firefighters' relief associations.
(b) The total amount available for apportionment must not be less than two percent of
the premiums less return premiums reported to the commissioner by companies or insurance
companies on the Minnesota Fire Premium Report after subtracting the following amounts:
(1) the amount required to pay the state auditor's costs and expenses of the audits or
exams of the firefighters' relief associations; and
(2) one percent of the premiums reported by township mutual insurance companies and
mutual property and casualty companies with total assets of $5,000,000 or less.
(c) The commissioner must apportion the fire state aid to each municipality or independent
nonprofit firefighting corporation qualified under section 477B.02 relative to the premiums
reported on the Minnesota Fire Premium Reports filed under this chapter.
(d) The commissioner must calculate the percentage of increase or decrease reflected in
the apportionment over or under the previous year's available state aid using the same
premiums as a basis for comparison.
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.
Minnesota Statutes 2022, section 477B.03, subdivision 3, is amended to read:
Subd. 3.
Population and estimated market value.
(a) deleted text begin Official statewide federal census
figuresdeleted text end new text begin The most recent population estimates made by the state demographer pursuant to
section 4A.02, paragraph (d),new text end must be used in calculations requiring the use of population
figures under this chapter. deleted text begin Increases or decreases in population disclosed by reason of any
special census must not be taken into consideration.
deleted text end
(b) The deleted text begin latest availabledeleted text end estimated market value property figuresnew text begin for the assessment year
immediately preceding the year the aid is distributednew text end must be used in calculations requiring
the use of estimated market value property figures under this chapter.
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. 16.
Minnesota Statutes 2022, section 477B.03, subdivision 4, is amended to read:
Subd. 4.
Initial fire state aid allocation amount.
(a) The initial fire state aid allocation
amount is the amount available for apportionment as fire state aid under subdivision 2,
without the inclusion of any additional funding amount to support a minimum fire state aid
amount under section 423A.02, subdivision 3. The initial fire state aid allocation amount
is allocated one-half in proportion to the population for each fire department service area
and one-half in proportion to the estimated market value of each fire department service
area, including (1) the estimated market value of tax-exempt property, and (2) the estimated
market value of natural resources lands receiving in lieu payments under sections 477A.11
to 477A.14 and 477A.17. The estimated market value of minerals is excluded.
(b) In the case of a municipality or independent nonprofit firefighting corporation
furnishing fire protection to other municipalities as evidenced by valid fire service contractsnew text begin ,
joint powers agreements, resolutions, and other supporting documentsnew text end filed with the
commissioner under section 477B.02, subdivision 5, the distribution must be adjusted
proportionately to take into consideration the crossover fire protection service. Necessary
adjustments must be made to subsequent apportionments.
(c) In the case of municipalities or independent nonprofit firefighting corporations
qualifying for aid, the commissioner must calculate the state aid for the municipality or
independent nonprofit firefighting corporation on the basis of the population and the estimated
market value of the area furnished fire protection service by the fire department as evidenced
by new text begin valid new text end fire service deleted text begin agreementsdeleted text end new text begin contracts, joint powers agreements, resolutions, and other
supporting documentsnew text end filed with the commissioner under section 477B.02, subdivision 5.
(d) In the case of more than one fire department furnishing contracted fire service to a
municipality, the population and estimated market value in the apportionment agreement
filed with the commissioner under section 477B.02, subdivision 5, must be used in calculating
the state aid.
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. 17.
Minnesota Statutes 2022, section 477B.03, subdivision 5, is amended to read:
Subd. 5.
Minimum fire state aid allocation amount.
(a) The minimum fire state aid
allocation amount is the amount derived from any additional funding amount to support a
minimum fire state aid amount under section 423A.02, subdivision 3. The minimum fire
state aid allocation amount is allocated to municipalities or independent nonprofit firefighting
corporations with volunteer firefighters' relief associations or covered by the statewide
volunteer firefighter plan. The amount is based on the number of active volunteer firefighters
who are (1) members of the relief association as reported to the Office of the State Auditor
in a specific annual financial reporting year as specified in paragraphs (b) to (d), or (2)
covered by the statewide volunteer firefighter plan as specified in paragraph (e).
(b) For relief associations established in calendar year 1993 or a prior year, the number
of active volunteer firefighters equals the number of active volunteer firefighters who were
members of the relief association as reported in the annual financial reporting for calendar
year 1993, but not to exceed 30 active volunteer firefighters.
(c) For relief associations established in calendar year 1994 through calendar year 1999,
the number of active volunteer firefighters equals the number of active volunteer firefighters
who were members of the relief association as reported in the annual financial reporting for
calendar year 1998 to the Office of the State Auditor, but not to exceed 30 active volunteer
firefighters.
(d) For relief associations established after calendar year 1999, the number of active
volunteer firefighters equals the number of active volunteer firefighters who are members
of the relief association as reported in the first annual financial reporting submitted to the
Office of the State Auditor, but not to exceed 20 active volunteer firefighters.
(e) deleted text begin If a relief association is terminated as a result ofdeleted text end new text begin For a municipality or independent
nonprofit firefighting corporation that isnew text end providing retirement coverage for volunteer
firefighters by the statewide volunteer firefighter plan under chapter 353G, the number of
active volunteer firefighters equals the number of active volunteer firefighters of the
municipality or independent nonprofit firefighting corporation covered by the statewide
plan as certified by the executive director of the Public Employees Retirement Association
to the commissioner and the state auditornew text begin within 30 days of the date the municipality or
independent nonprofit firefighting corporation begins coverage in the plannew text end , but not to exceed
30 active firefighters.
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. 18.
Minnesota Statutes 2022, section 477B.03, subdivision 7, is amended to read:
Subd. 7.
Appeal.
A municipality, an independent nonprofit firefighting corporation, a
fire relief association, or the statewide volunteer firefighter plan may object to the amount
of fire state aid apportioned to it by filing a written request with the commissioner to review
and adjust the apportionment of funds within the state.new text begin The objection of a municipality, an
independent nonprofit firefighting corporation, a fire relief association, or the voluntary
statewide volunteer firefighter retirement plan must be filed with the commissioner within
60 days of the date the amount of apportioned fire state aid is paid.new text end The decision of the
commissioner is subject to appeal, review, and adjustment by the district court in the county
in which the applicable municipality or independent nonprofit firefighting corporation is
located or by the Ramsey County District Court with respect to the statewide volunteer
firefighter plan.
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. 19.
Minnesota Statutes 2022, section 477B.04, subdivision 1, is amended to read:
Subdivision 1.
Payments.
(a) The commissioner must make payments to the Public
Employees Retirement Association for deposit in the statewide volunteer firefighter fund
on behalf of a municipality or independent nonprofit firefighting corporation that is a member
of the statewide volunteer firefighter plan under chapter 353Gdeleted text begin , or directly to a municipality
or county designated by an independent nonprofit firefighting corporationdeleted text end .new text begin The commissioner
must directly pay all other municipalities qualifying for fire state aid, except as provided in
paragraph (d).new text end The payment is equal to the amount of fire state aid apportioned to the
applicable fire state aid recipient under section 477B.03.
(b) Fire state aid is payable on October 1 annually. The amount of state aid due and not
paid by October 1 accrues interest payable to the recipient at the rate of one percent for each
month or part of a month that the amount remains unpaid after October 1.
(c)new text begin If the commissioner of revenue does not receive a financial compliance report
described in section 6.495, subdivision 3, for a relief association, the amount of fire state
aid apportioned to a municipality or independent nonprofit firefighting corporation under
section 477B.03 for that relief association must be withheld from payment to the Public
Employees Retirement Association or the municipality. The commissioner of revenue must
issue a withheld payment within ten business days of receipt of a financial compliance report
under section 6.495, subdivision 3.new text end The interest under paragraph (b) does not apply deleted text begin whendeleted text end new text begin
to anew text end payment deleted text begin has not been made by October 1 due to noncompliance with sections 424A.014
and 477B.02, subdivision 7deleted text end new text begin withheld under this paragraphnew text end .
new text begin
(d) The commissioner must make payments directly to the largest municipality in
population located within any area included in a joint powers entity that does not have a
designated agency under section 471.59, subdivision 3, or within the fire department service
area of an eligible independent nonprofit firefighting corporation. If there is no city or town
within the fire department service area of an eligible independent nonprofit firefighting
corporation, fire state aid must be paid to the county where the independent nonprofit
firefighting corporation is located.
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. 20.
Minnesota Statutes 2022, section 477B.04, is amended by adding a subdivision
to read:
new text begin Subd. 4. new text end
new text begin Aid amount corrections. new text end
new text begin
(a) An adjustment needed to correct a fire state aid
overpayment or underpayment due to a clerical error must be made to subsequent fire state
aid payments as provided in paragraphs (b) and (c). The authority to correct an aid payment
under this subdivision is limited to three years after the payment was issued.
new text end
new text begin
(b) If an overpayment equals more than ten percent of the most recently paid aid amount,
the commissioner must reduce the aid a municipality or independent nonprofit firefighting
corporation is to receive by the amount overpaid over a period of no more than three years.
If an overpayment equals or is less than ten percent of the most recently paid aid amount,
the commissioner must reduce the next aid payment occurring in 30 days or more by the
amount overpaid.
new text end
new text begin
(c) In the event of an underpayment, the commissioner must distribute the amount of
underpaid funds to the municipality or independent nonprofit firefighting corporation over
a period of no more than three years. An additional distribution to a municipality or
independent nonprofit firefighting corporation must be paid from the general fund and must
not diminish the payments made to other municipalities or independent nonprofit firefighting
corporations under this chapter.
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.
Minnesota Statutes 2022, section 477C.02, subdivision 4, is amended to read:
Subd. 4.
Penalty for failure to file new text begin or correct new text end certification.
(a) If a certification under
subdivision 1 or 2 is not filed with the commissioner on or before March deleted text begin 15deleted text end new text begin 1new text end , the
commissioner must notify the municipal clerk, municipal clerk-treasurer, or county auditor
that a penalty deleted text begin equal to a portion or all of its current year aid will apply if the certification
is not received within ten daysdeleted text end new text begin will be deducted from police state aid certified for the current
year if the certification is not filed on or before March 15new text end .
new text begin
(b) If the commissioner rejects the certification under subdivision 1 or 2 for inaccurate
or incomplete information, the municipal clerk, municipal clerk-treasurer, or county auditor
must file a corrective certification after taking corrective action as identified by the
commissioner in the notice of rejection. The corrective certification must be filed within
30 days of the date on the notice of rejection, or by March 15, whichever date is later.
new text end
deleted text begin (b)deleted text end new text begin (c) A penalty applies to (1) a certification under subdivisions 1 and 2 filed after
March 15, and (2) a corrective certification under paragraph (b) filed after March 15 that
is also filed more than 30 days after the date on the notice of rejection.new text end The penalty deleted text begin for
failure to file the certification under subdivision 1 or 2deleted text end is equal to the amount of police state
aid determined for the municipality for the current year, multiplied by deleted text begin fivedeleted text end new text begin tennew text end percent for
each week or fraction of a week that the certificationnew text begin or corrective certificationnew text end is deleted text begin latedeleted text end new text begin filed
after March 15 or more than 30 days after the date on the notice of rejectionnew text end . deleted text begin The penalty
must be computed beginning ten days after the postmark date of the commissioner's
notification as required under this subdivision.deleted text end All aid amounts forfeited as a result of the
penalty revert to the state general fund. Failure to receive the certification form may not be
used as a defense for a failure to file.
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.
Minnesota Statutes 2022, section 477C.03, subdivision 2, is amended to read:
Subd. 2.
Apportionment of police state aid.
(a) The total amount available for
apportionment as police state aid is equal to 104 percent of the amount of premium taxes
paid to the state on the premiums reported to the commissioner by companies or insurance
companies on the Minnesota Aid to Police Premium Reportnew text begin , except that credits claimed
under section 297I.20, subdivisions 3, 4, and 5, do not affect the calculation of the total
amount of police state aid available for apportionmentnew text end . The total amount for apportionment
for the police state aid program must not be less than two percent of the amount of premiums
reported to the commissioner by companies or insurance companies on the Minnesota Aid
to Police Premium Report.
(b) The commissioner must calculate the percentage of increase or decrease reflected in
the apportionment over or under the previous year's available state aid using the same
premiums as a basis for comparison.
(c) In addition to the amount for apportionment of police state aid under paragraph (a),
each year $100,000 must be apportioned for police state aid. An amount sufficient to pay
this increase is annually appropriated from the general fund.
(d) The commissioner must apportion police state aid to all municipalities in proportion
to the relationship that the total number of peace officers employed by that municipality for
the prior calendar year and the proportional or fractional number who were employed less
than a calendar year as credited under section 477C.02, subdivision 1, paragraph (c), bears
to the total number of peace officers employed by all municipalities subject to any reduction
under subdivision 3.
deleted text begin
(e) Any necessary additional adjustments must be made to subsequent police state aid
apportionments.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
(a) The amendment to paragraph (a) is effective the day following
final enactment.
new text end
new text begin
(b) The amendment striking paragraph (e) is effective for aids payable in calendar year
2024 and thereafter.
new text end
Sec. 23.
Minnesota Statutes 2022, section 477C.03, subdivision 5, is amended to read:
Subd. 5.
Appeal.
A municipality may object to the amount of police state aid apportioned
to it by filing a written request with the commissioner to review and adjust the apportionment
of funds to the municipality.new text begin The objection of a municipality must be filed with the
commissioner within 60 days of the date the amount of apportioned police state aid is paid.new text end
The decision of the commissioner is subject to appeal, review, and adjustment by the district
court in the county in which the applicable municipality is located or by the Ramsey County
District Court with respect to the Departments of Natural Resources or Public Safety.
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. 24.
Minnesota Statutes 2022, section 477C.04, is amended by adding a subdivision
to read:
new text begin Subd. 4. new text end
new text begin Aid amount corrections. new text end
new text begin
(a) An adjustment needed to correct a police state
aid overpayment or underpayment due to a clerical error must be made to subsequent police
state aid payments as provided in paragraphs (b) and (c). The authority to correct an aid
payment under this subdivision is limited to three years after the payment was issued.
new text end
new text begin
(b) If an overpayment equals more than ten percent of the most recently paid aid amount,
the commissioner must reduce the aid a municipality is to receive by the amount overpaid
over a period of no more than three years. If an overpayment equals or is less than ten
percent of the most recently paid aid amount, the commissioner must reduce the next aid
payment occurring in 30 days or more by the amount overpaid.
new text end
new text begin
(c) In the event of an underpayment, the commissioner must distribute the amount of
underpaid funds to the municipality over a period of no more than three years. An additional
distribution to a municipality must be paid from the general fund and must not diminish the
payments made to other municipalities under this chapter.
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. 25. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2022, sections 477B.02, subdivision 4; and 477B.03, subdivision 6,
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 15
DEPARTMENT OF REVENUE:
DATA PRACTICES
Section 1.
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 programsnew text begin , and prepare the databases
for reports required under section 270C.13 and Laws 2008, chapter 366, article 17, section
6new text end . 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 and
rental credit 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 the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2022, section 270C.13, subdivision 1, is amended to read:
Subdivision 1.
Biennial report.
(a) The commissioner shall report to the legislature on
the overall incidence of the income tax, sales and excise taxes, and property tax.
(b) The commissioner must submit the report:
(1) by March 1, 2021; and
(2) by March 1, 2024, and each even-numbered year thereafter.
(c) The report shall present information on the distribution of the tax burden as follows:
(1) for the overall income distribution, using a systemwide incidence measure such as the
Suits index or other appropriate measures of equality and inequality; (2) by income classes,
including at a minimum deciles of the income distribution; and (3) by other appropriate
taxpayer characteristics.
new text begin
(d) The commissioner may request information from any state officer or agency to assist
in carrying out this section. The state officer or agency shall provide the data requested to
the extent permitted by law.
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 270C.446, subdivision 2, is amended to read:
Subd. 2.
Required and excluded tax preparers.
(a) Subject to the limitations of
paragraph (b), the commissioner must publish lists of tax preparers as defined in section
270C.445, subdivision 2, paragraph (h), who have been:
(1) convicted under section 289A.63;
(2) assessed penalties in excess of $1,000 under section 289A.60, subdivision 13,
paragraph (a);
(3) convicted for identity theft under section 609.527, or a similar statute, for a return
filed with the commissioner, the Internal Revenue Service, or another state;
(4) assessed a penalty under section 270C.445, subdivision 6, paragraph (a), in excess
of $1,000;
(5) issued a cease and desist order under section 270C.445, subdivision 6, paragraph
(b), that has become a final order; deleted text begin or
deleted text end
(6) assessed a penalty under section 270C.445, subdivision 6, paragraph (l), for violating
a cease and desist orderdeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(7) assessed a penalty under section 289A.60, subdivision 28, paragraph (c), or (d), in
excess of $1,000.
new text end
(b) For the purposes of this section, tax preparers are not subject to publication if:
(1) an administrative or court action contesting or appealing a penalty described in
paragraph (a), clause (2), (4), or (6), has been filed or served and is unresolved at the time
when notice would be given under subdivision 3;
(2) an appeal period to contest a penalty described in paragraph (a), clause (2), (4), or
(6), has not expired;
(3) the commissioner has been notified that the tax preparer is deceased;
(4) an appeal period to contest a cease and desist order issued under section 270C.445,
subdivision 6, paragraph (b), has not expired;
(5) an administrative or court action contesting or appealing a cease and desist order
issued under section 270C.445, subdivision 6, paragraph (b), has been filed or served and
is unresolved at the time when notice would be given under subdivision 3;
(6) a direct appeal of a conviction described in paragraph (a), clause (1) or (3), has been
filed or served and is unresolved at the time when the notice would be given under
subdivision 3; or
(7) an appeal period to contest a conviction described in paragraph (a), clause (1) or (3),
has not expired.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for returns filed after December 31, 2023.
new text end
Sec. 4.
Minnesota Statutes 2022, section 290A.19, is amended to read:
290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE.
(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 three years. The duplicate or other record must be made available to the
commissioner upon request.
(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. 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 owner
or managing agent 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 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.
(c) For the purposes of this section, "owner" includes 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 refund claims based on rent paid in
2023 and thereafter.
new text end
Sec. 5.
Minnesota Statutes 2022, section 299C.76, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) For the purposes of this section, the following definitions
apply.
(b) "Federal tax information" means federal tax returns and return information or
information derived or created from federal tax returns, in possession of or control by the
requesting agency, that is covered by the safeguarding provisions of section 6103(p)(4) of
the Internal Revenue Code.
(c) "IRS Publication 1075" means Internal Revenue Service Publication 1075 that
provides guidance and requirements for the protection and confidentiality of federal tax
information as required in section 6103(p)(4) of the Internal Revenue Code.
(d) "National criminal history record information" means the Federal Bureau of
Investigation identification records as defined in Code of Federal Regulations, title 28,
section 20.3(d).
(e) "Requesting agency" means the Department of Revenue, Department of Employment
and Economic Development, Department of Human Services, board of directors of MNsure,
Department of Information Technology Services,new text begin attorney general,new text end and counties.
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.
Minnesota Statutes 2022, section 299C.76, subdivision 2, is amended to read:
Subd. 2.
National criminal history record information check.
As required by IRS
Publication 1075, a requesting agency shall require fingerprints for a national criminal
history record information check from the following individuals who have or will have
access to federal tax information:
(1) a current or prospective permanent or temporary employee of the requesting agency;
(2) an independent contractor or vendor of the requesting agency;new text begin or
new text end
(3) an employee deleted text begin or agentdeleted text end of an independent contractor or vendor of the requesting agencydeleted text begin ;
ordeleted text end new text begin .
new text end
deleted text begin
(4) any other individual authorized to access federal tax information by the requesting
agency.
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. 7.
Laws 2008, chapter 366, article 17, section 6, is amended to read:
Sec. 6. DATA UPDATE.
The commissioner of revenue must continue to maintain, update, and make available
the information required under Laws 1987, chapter 268, article 7, section 1, subdivision 6,
paragraph (b). new text begin The commissioner may request information from any state officer or agency
to assist in carrying out paragraph (b). The state officer or agency shall provide the data
requested to the extent permitted by law. new text end The commissioner must provide the most complete
and current data available, when requested, to the chairs of the senate and house of
representatives committees on taxes.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 16
DEPARTMENT OF REVENUE:
MISCELLANEOUS
Section 1.
Minnesota Statutes 2022, section 270C.19, subdivision 1, is amended to read:
Subdivision 1.
Taxes paid by Indians.
new text begin Notwithstanding any other law which limits the
refund of tax, new text end the commissioner is authorized to enter into a tax refund agreement with the
governing body of any federally recognized Indian deleted text begin reservationdeleted text end new text begin Tribenew text end in Minnesota.
new text begin (b)new text end The agreement may provide fornew text begin :
new text end
new text begin (1)new text end a mutually agreed-upon amount as a refund to the governing body ofnew text begin an estimate ofnew text end
any sales or excise tax paid by deleted text begin the total resident Indian population on or adjacent to a
reservation into the state treasury,deleted text end new text begin Tribal members on transactions occurring on the
reservation or on transactions that would occur on the reservation if there was no agreement;new text end
or
new text begin (2)new text end for an amount which measures the economic value of an agreement by the Tribal
government to pay the equivalent of the state sales tax on items included in the sales tax
base but exempt on the reservationdeleted text begin , notwithstanding any other law which limits the
refundment of taxesdeleted text end . deleted text begin The total resident Indian population on or adjacent to a reservation
shall be defined according to the United States Department of the Interior, Bureau of Indian
Affairs, as determined and stated in its Report on Service Population and Labor Force.
deleted text end
new text begin
(c) For purposes of this section, "Tribal members" means the number of enrolled members
of the Tribe who live on or adjacent to the reservation as defined in the agreement.
new text end
new text begin
(d) In arriving at the refund amount, the commissioner must consider Tribal enrollment
records, estimates contained in the tax incidence report under section 270C.13, and any
other information available to the commissioner.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for agreements entered into
or amended after December 31, 2022.
new text end
Sec. 2.
Minnesota Statutes 2022, section 270C.19, subdivision 2, is amended to read:
Subd. 2.
Sales, use, and excise taxes.
(a) The commissioner is authorized to enter into
a tax agreement with the governing body of any federally recognized Indian deleted text begin reservationdeleted text end new text begin
Tribenew text end in Minnesota, that provides for the state and the Tribal government to share sales,
use, and excise tax revenues generated from on-reservation activities of deleted text begin non-Indiansdeleted text end new text begin
non-Tribal membersnew text end and off-reservation activities of new text begin Tribal new text end members deleted text begin of the reservationdeleted text end .
Every agreement entered into pursuant to this subdivision must require the commissioner
to collect all state and Tribal taxes covered by the agreement.
(b) The commissioner is authorized to collect any Tribal taxes imposed pursuant to any
agreement entered into pursuant to this subdivision and to make payments authorized by
the agreement to the Tribal government from the funds collected.
(c) The commissioner shall pay to the Tribal government its share of the taxes collected
pursuant to the agreement, as indicated in the agreement, and grant the taxpayer a credit for
the taxpayer's share of the amount paid to the Tribal government against the taxpayer's
Minnesota tax.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for agreements entered into
or amended after December 31, 2022.
new text end
Sec. 3.
Minnesota Statutes 2022, section 295.50, subdivision 4, is amended to read:
Subd. 4.
Health care provider.
(a) "Health care provider" means:
(1) a person whose health care occupation is regulated or required to be regulated by
the state of Minnesota furnishing any or all of the following goods or services directly to a
patient or consumer: medical, surgical, optical, visual, dental, hearing, nursing services,
drugs, laboratory, diagnostic or therapeutic services;
(2) a person who provides goods and services not listed in clause (1) that qualify for
reimbursement under the medical assistance program provided under chapter 256B;
(3) a staff model health plan company;
(4) an ambulance service required to be licensed;
(5) a person who sells or repairs hearing aids and related equipment or prescription
eyewear; or
(6) a person providing patient services, who does not otherwise meet the definition of
health care provider and is not specifically excluded in clause (b), who employs or contracts
with a health care provider as defined in clauses (1) to (5) to perform, supervise, otherwise
oversee, or consult with regarding patient services.
(b) Health care provider does not include:
(1) hospitals; medical supplies distributors, except as specified under paragraph (a),
clause (5); nursing homes licensed under chapter 144A or licensed in any other jurisdiction;
wholesale drug distributors; pharmacies; surgical centers; bus and taxicab transportation,
or any other providers of transportation services other than ambulance services required to
be licensed; supervised living facilities for persons with developmental disabilities, licensed
under Minnesota Rules, parts 4665.0100 to 4665.9900; housing with services establishments
required to be registered under chapter 144D; board and lodging establishments providing
only custodial services that are licensed under chapter 157 and registered under section
157.17 to provide supportive services or health supervision services; adult foster homes as
defined in Minnesota Rules, part 9555.5105; day training and habilitation services for adults
with developmental disabilities as defined in section 252.41, subdivision 3; boarding care
homes, as defined in Minnesota Rules, part 4655.0100; and adult day care centers as defined
in Minnesota Rules, part 9555.9600;
(2) home health agencies as defined in Minnesota Rules, part 9505.0175, subpart 15; a
person providing personal care services and supervision of personal care services as defined
in Minnesota Rules, part 9505.0335; a person providing home care nursing services as
defined in Minnesota Rules, part 9505.0360; and home care providers required to be licensed
under chapter 144A for home care services provided under chapter 144A;
(3) a person who employs health care providers solely for the purpose of providing
patient services to its employees;
(4) an educational institution that employs health care providers solely for the purpose
of providing patient services to its students if the institution does not receive fee for service
payments or payments for extended coverage; and
(5) a person who receives all payments for patient services from health care providers,
surgical centers, or hospitals for goods and services that are taxable to the paying health
care providers, surgical centers, or hospitals, as provided under section 295.53, subdivision
1, paragraph (b), clause (3) or (4), or from a source of funds that is new text begin excluded or new text end exempt from
tax under deleted text begin this chapterdeleted text end new text begin sections 295.50 to 295.59new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2022, section 296A.083, subdivision 3, is amended to read:
Subd. 3.
Surcharge rate.
(a) By deleted text begin July 16, 2008, and each April 1 thereafterdeleted text end new text begin May 1 each
yearnew text end , the commissioner of revenue shall calculate and publish a surcharge as provided in
deleted text begin paragraphsdeleted text end new text begin paragraphnew text end (b) deleted text begin and (c)deleted text end . The surcharge is imposed deleted text begin from August 1, 2008, through
June 30, 2009, and each new surcharge thereafter is imposed the followingdeleted text end new text begin beginningnew text end July
1new text begin of the year it is publishednew text end through June 30new text begin of the following yearnew text end .
deleted text begin
(b) For fiscal years 2009 through 2012, the commissioner shall set the surcharge as
specified in the following surcharge rate schedule.
deleted text end
|
deleted text begin
Surcharge Rate Schedule deleted text end |
|||
|
deleted text begin
Fiscal Year deleted text end |
deleted text begin
Rate (in cents per gallon) deleted text end |
||
|
deleted text begin
2009 deleted text end |
deleted text begin
0.5 deleted text end |
||
|
deleted text begin
2010 deleted text end |
deleted text begin
2.1 deleted text end |
||
|
deleted text begin
2011 deleted text end |
deleted text begin
2.5 deleted text end |
||
|
deleted text begin
2012 deleted text end |
deleted text begin
3.0 deleted text end |
||
deleted text begin (c) For fiscal year 2013 and thereafter,deleted text end new text begin (b)new text end The commissioner shall set the surcharge at
the lesser of (1) 3.5 cents, or (2) an amount calculated so that the total proceeds from the
surcharge deposited in the trunk highway fund from fiscal year 2009 to the upcoming fiscal
year equals the total amount of debt service from fiscal years 2009 to 2039, and the surcharge
is rounded to the nearest 0.1 cent.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
Minnesota Statutes 2022, section 297A.61, subdivision 29, is amended to read:
Subd. 29.
State.
Unless specifically provided otherwise, "state" means any state of the
United States, deleted text begin the Commonwealth of Puerto Rico, anddeleted text end the District of Columbianew text begin , and any
territory of the United States, including American Samoa, Guam, Northern Mariana Islands,
Puerto Rico, and the U.S. Virgin Islandsnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2023.
new text end
ARTICLE 17
GRANTS MANAGEMENT
Section 1. new text begin FINANCIAL REVIEW OF NONPROFIT GRANT RECIPIENTS
REQUIRED.
new text end
new text begin Subdivision 1. new text end
new text begin Financial review required. new text end
new text begin
(a) Before awarding a competitive,
legislatively named, single source, or sole source grant to a nonprofit organization under
this act, the grantor must require the applicant to submit financial information sufficient for
the grantor to document and assess the applicant's current financial standing and management.
Items of significant concern must be addressed with the applicant and resolved to the
satisfaction of the grantor before a grant is awarded. The grantor must document the material
requested and reviewed; whether the applicant had a significant operating deficit, a deficit
in unrestricted net assets, or insufficient internal controls; whether and how the applicant
resolved the grantor's concerns; and the grantor's final decision. This documentation must
be maintained in the grantor's files.
new text end
new text begin
(b) At a minimum, the grantor must require each applicant to provide the following
information:
new text end
new text begin
(1) the applicant's most recent Form 990, Form 990-EZ, or Form 990-N filed with the
Internal Revenue Service. If the applicant has not been in existence long enough or is not
required to file Form 990, Form 990-EZ, or Form 990-N, the applicant must demonstrate
to the grantor that the applicant is exempt and must instead submit documentation of internal
controls and the applicant's most recent financial statement prepared in accordance with
generally accepted accounting principles and approved by the applicant's board of directors
or trustees, or if there is no such board, by the applicant's managing group;
new text end
new text begin
(2) evidence of registration and good standing with the secretary of state under Minnesota
Statutes, chapter 317A, or other applicable law;
new text end
new text begin
(3) unless exempt under Minnesota Statutes, section 309.515, evidence of registration
and good standing with the attorney general under Minnesota Statutes, chapter 309; and
new text end
new text begin
(4) if required under Minnesota Statutes, section 309.53, subdivision 3, the applicant's
most recent audited financial statement prepared in accordance with generally accepted
accounting principles.
new text end
new text begin Subd. 2. new text end
new text begin Authority to postpone or forgo; reporting required. new text end
new text begin
(a) Notwithstanding
any contrary provision in this act, a grantor that identifies an area of significant concern
regarding the financial standing or management of a legislatively named applicant may
postpone or forgo awarding the grant.
new text end
new text begin
(b) No later than 30 days after a grantor exercises the authority provided under paragraph
(a), the grantor must report to the chairs and ranking minority members of the legislative
committees with jurisdiction over the grantor's operating budget. The report must identify
the legislatively named applicant and the grantor's reason for postponing or forgoing the
grant.
new text end
new text begin Subd. 3. new text end
new text begin Authority to award subject to additional assistance and oversight. new text end
new text begin
A grantor
that identifies an area of significant concern regarding an applicant's financial standing or
management may award a grant to the applicant if the grantor provides or the grantee
otherwise obtains additional technical assistance, as needed, and the grantor imposes
additional requirements in the grant agreement. Additional requirements may include, but
are not limited to, enhanced monitoring, additional reporting, or other reasonable
requirements imposed by the grantor to protect the interests of the state.
new text end
new text begin Subd. 4. new text end
new text begin Relation to other law and policy. new text end
new text begin
The requirements in this section are in
addition to any other requirements imposed by law; the commissioner of administration
under Minnesota Statutes, sections 16B.97 and 16B.98; or agency policy.
new text end
APPENDIX
Repealed Minnesota Statutes: H1938-2
270A.04 AGENCY PARTICIPATION.
Subd. 5.
Private nonprofit hospital.
A private nonprofit hospital that leases its building from the county or city in which it is located must annually provide the commissioner with a copy of the lease agreement.
290.01 DEFINITIONS.
Subd. 19i.
Deferred foreign income.
"Deferred foreign income" means the income of a domestic corporation that is included in net income under section 965 of the Internal Revenue Code.
290.0131 INDIVIDUALS, ESTATES, AND TRUSTS; ADDITIONS TO FEDERAL TAXABLE INCOME OR FEDERAL ADJUSTED GROSS INCOME.
Subd. 18.
Special deductions.
For trusts and estates, the amount of any special deduction under section 250 or 965 of the Internal Revenue Code is an addition, to the extent not included in taxable income.
290.0132 INDIVIDUALS, ESTATES, AND TRUSTS; SUBTRACTIONS FROM FEDERAL TAXABLE INCOME OR FEDERAL ADJUSTED GROSS INCOME.
No active language found for: 290.0132.33
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.
477A.16 UTILITY VALUATION TRANSITION AID.
Subdivision 1.
Definitions.
(a) When used in this section, the following terms have the meanings indicated in this subdivision.
(b) "Local unit" means a home rule charter or statutory city, or a town.
(c) "Old rule utility net tax capacity" means the net tax capacity of all public utility property within the local unit's taxing jurisdiction for assessment year 2007, calculated as if the property were valued under valuation rules in effect prior to assessment year 2007.
(d) "New rule utility net tax capacity" means the net tax capacity of all public utility property within the local unit's taxing jurisdiction for assessment year 2007, calculated as if the property were valued under valuation rules in effect for assessment year 2007, but without any phase-in provisions.
(e) "Modified net tax capacity" means the local unit's net tax capacity for taxes payable in 2008, modified by substituting the old rule utility net tax capacity for the actual net tax capacity of utility property. Modified net tax capacity must be determined by the commissioner of revenue based on information and data available to the commissioner as of July 1, 2008.
(f) "Net tax capacity differential" means the positive difference, if any, by which the local unit's old rule utility net tax capacity exceeds its new rule utility net tax capacity.
(g) "Current year net tax capacity differential" means the positive difference, if any, by which the local unit's old rule utility net tax capacity exceeds its total tax capacity of utility property for taxes payable in the current year.
Subd. 2.
Aid eligibility; payment.
(a) If the net tax capacity differential of the local unit exceeds four percent of its modified net tax capacity, the local unit is eligible for transition aid computed under paragraph (b).
(b) For aids payable in 2010 and thereafter, transition aid under this section for an eligible local unit equals (1) the current year net tax capacity differential for taxes payable in the year preceding the aid distribution year, times (2) the jurisdiction's tax rate for taxes payable in 2008.
(c) The commissioner of revenue shall compute the amount of transition aid payable to each local unit under this section. On or before August 1 of each year, the commissioner shall certify the amount of transition aid computed for aids payable in the following year for each recipient local unit. The commissioner shall pay transition aid to local units annually at the times provided in section 477A.015.
Subd. 3.
Appropriation.
An amount sufficient to pay transition aid under this section is annually appropriated to the commissioner of revenue from the general fund.
477B.02 QUALIFYING FOR FIRE STATE AID.
Subd. 4.
Equipment requirements.
The fire department must have all of the following equipment, or the equivalent as determined by the state fire marshal, by December 31 of the year preceding the certification required in subdivision 8:
(1) a motorized fire truck equipped with:
(i) a motorized pump;
(ii) a 250-gallon or larger water tank;
(iii) 300 feet of one inch or larger fire hose in two lines with combination spray and straight stream nozzles;
(iv) five-gallon hand pumps - tank extinguisher or equivalent;
(v) a dry chemical extinguisher or equivalent;
(vi) ladders;
(vii) extension ladders;
(viii) pike poles;
(ix) crowbars;
(x) axes;
(xi) lanterns; and
(xii) fire coats, helmets, and boots;
(2) the items in clause (1) suitably housed in a building of good construction with facilities for care of hoses and equipment;
(3) a reliable and adequate method of receiving fire alarms by telephone or with electric siren and suitable means of sounding an alarm; and
(4) if response is to be provided outside the corporate limits of the municipality where the fire department is located, another piece of motorized apparatus to make the response.
477B.03 CALCULATION OF FIRE STATE AID; APPEAL.
Subd. 6.
Corrective aid adjustments.
Any adjustments needed to correct prior misallocations must be made to subsequent fire state aid apportionments.