HF 2938

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; providing a sales tax rebate 
  1.3             payable in 2000; extending the 1999 sales tax rebate 
  1.4             to certain taxpayers; limiting the amount of the 
  1.5             passenger automobile registration tax; extending levy 
  1.6             limits for one year; making certain changes in health 
  1.7             care premium taxes; providing for tax relief and 
  1.8             reform; appropriating money; amending Minnesota 
  1.9             Statutes 1998, sections 60A.15, subdivision 1; 
  1.10            168.013, subdivision 1a; and 275.72, subdivision 1; 
  1.11            Minnesota Statutes 1999 Supplement, sections 16A.1522, 
  1.12            subdivisions 1, 4, and by adding subdivisions; 275.71, 
  1.13            subdivisions 2, 3, and 4; Laws 1997, chapter 231, 
  1.14            article 3, section 9, as amended; Laws 1998, chapter 
  1.15            389, article 4, sections 14, subdivision 2; and 18; 
  1.16            and Laws 1999, chapter 243, article 1, section 2; 
  1.17            article 6, sections 12, subdivision 4; 13, subdivision 
  1.18            2; and 18; repealing Minnesota Statutes 1998, section 
  1.19            16A.1521. 
  1.20  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.21                             ARTICLE 1 
  1.22                     YEAR 2000 SALES TAX REBATE 
  1.23     Section 1.  [STATEMENT OF PURPOSE.] 
  1.24     (a) The state of Minnesota derives revenues from a variety 
  1.25  of taxes, fees, and other sources, including the state sales tax.
  1.26     (b) It is fair and reasonable to refund the existing state 
  1.27  budget surplus in the form of a rebate of nonbusiness consumer 
  1.28  sales taxes paid by individuals in calendar year 1998. 
  1.29     (c) Information concerning the amount of sales tax paid at 
  1.30  various income levels is contained in the Minnesota tax 
  1.31  incidence report, which is written by the commissioner of 
  1.32  revenue and presented to the legislature according to Minnesota 
  2.1   Statutes, section 270.0682. 
  2.2      (d) It is fair and reasonable to use information contained 
  2.3   in the Minnesota tax incidence report to determine the 
  2.4   proportionate share of the sales tax rebate due each eligible 
  2.5   taxpayer since no effective or practical mechanism exists for 
  2.6   determining the amount of actual sales tax paid by each eligible 
  2.7   individual. 
  2.8      Sec. 2.  [SALES TAX REBATE.] 
  2.9      (a) An individual who: 
  2.10     (1) was eligible for a credit under Laws 1998, chapter 389, 
  2.11  article 1, section 1, and who filed for or received that credit 
  2.12  on or before November 30, 2000; or 
  2.13     (2) was a resident of Minnesota for any part of 1998, and 
  2.14  filed a 1998 Minnesota income tax return on or before November 
  2.15  30, 2000, and had a tax liability before refundable credits on 
  2.16  that return of at least $1 but did not file the claim for credit 
  2.17  authorized under Laws 1998, chapter 389, article 1, section 1, 
  2.18  and who was not allowed to be claimed as a dependent on a 1998 
  2.19  federal income tax return filed by another person; or 
  2.20     (3) had the property taxes payable on his or her homestead 
  2.21  abated to zero under Laws 1998, chapter 383, section 20, 
  2.22  shall receive a sales tax rebate. 
  2.23     (b) The sales tax rebate for taxpayers who qualify under 
  2.24  paragraph (a) as married filing joint or head of household must 
  2.25  be computed according to the following schedule: 
  2.26       Income                             Sales Tax Rebate
  2.27   less than $2,500                              $  125
  2.28   at least $2,500 but less than $5,000          $  161
  2.29   at least $5,000 but less than $10,000         $  172
  2.30   at least $10,000 but less than $15,000        $  188
  2.31   at least $15,000 but less than $20,000        $  204
  2.32   at least $20,000 but less than $25,000        $  222
  2.33   at least $25,000 but less than $30,000        $  232
  2.34   at least $30,000 but less than $35,000        $  251
  2.35   at least $35,000 but less than $40,000        $  275
  2.36   at least $40,000 but less than $45,000        $  294
  3.1    at least $45,000 but less than $50,000        $  310
  3.2    at least $50,000 but less than $60,000        $  330
  3.3    at least $60,000 but less than $70,000        $  354
  3.4    at least $70,000 but less than $80,000        $  389
  3.5    at least $80,000 but less than $90,000        $  418
  3.6    at least $90,000 but less than $100,000       $  461
  3.7    at least $100,000 but less than $120,000      $  499
  3.8    at least $120,000 but less than $140,000      $  547
  3.9    at least $140,000 but less than $160,000      $  591
  3.10   at least $160,000 but less than $180,000      $  633
  3.11   at least $180,000 but less than $200,000      $  672
  3.12   at least $200,000 but less than $400,000      $  860
  3.13   at least $400,000 but less than $600,000      $1,132
  3.14   at least $600,000 but less than $800,000      $1,358
  3.15   at least $800,000 but less than $1,000,000    $1,557
  3.16   $1,000,000 and over                           $1,750
  3.17     (c) The sales tax rebate for individuals who qualify under 
  3.18  paragraph (a) as single or married filing separately must be 
  3.19  computed according to the following schedule: 
  3.20        Income                                 Sales Tax Rebate
  3.21   less than $2,500                              $   71
  3.22   at least $2,500 but less than $5,000          $   87
  3.23   at least $5,000 but less than $10,000         $  102
  3.24   at least $10,000 but less than $15,000        $  137
  3.25   at least $15,000 but less than $20,000        $  156
  3.26   at least $20,000 but less than $25,000        $  169
  3.27   at least $25,000 but less than $30,000        $  177
  3.28   at least $30,000 but less than $40,000        $  193
  3.29   at least $40,000 but less than $50,000        $  216
  3.30   at least $50,000 but less than $70,000        $  254
  3.31   at least $70,000 but less than $100,000       $  323
  3.32   at least $100,000 but less than $140,000      $  389
  3.33   at least $140,000 but less than $200,000      $  470
  3.34   at least $200,000 but less than $400,000      $  638
  3.35   at least $400,000 but less than $600,000      $  839
  3.36   $600,000 and over                             $  875
  4.1      (d) Individuals who were not residents of Minnesota for any 
  4.2   part of 1998 and who paid more than $10 in Minnesota sales tax 
  4.3   under Minnesota Statutes, chapters 297A and 297B, on nonbusiness 
  4.4   consumer purchases in that year qualify for a rebate under this 
  4.5   paragraph only.  Qualifying nonresidents must file a claim for 
  4.6   rebate on a form prescribed by the commissioner before November 
  4.7   30, 2000.  The claim must include receipts showing the Minnesota 
  4.8   sales tax paid and the date of the sale.  Taxes paid on 
  4.9   purchases allowed in the computation of federal taxable income 
  4.10  or reimbursed by an employer are not eligible for the rebate.  
  4.11  The commissioner shall determine the qualifying taxes paid and 
  4.12  rebate the lesser of: 
  4.13     (1) 22 percent of that amount; or 
  4.14     (2) the maximum amount for which the claimant would have 
  4.15  been eligible as determined under paragraph (b) if the taxpayer 
  4.16  filed the 1998 federal income tax return as a married taxpayer 
  4.17  filing jointly or head of household, or as determined under 
  4.18  paragraph (c) for other taxpayers. 
  4.19     (e) "Income," for purposes of this section other than 
  4.20  paragraph (d), is taxable income as defined in section 63 of the 
  4.21  Internal Revenue Code of 1986, as amended through December 31, 
  4.22  1997, plus the sum of any additions to federal taxable income 
  4.23  for the taxpayer under Minnesota Statutes, section 290.01, 
  4.24  subdivision 19a, and reported on the original 1998 income tax 
  4.25  return including subsequent adjustments to that return made 
  4.26  within the time limits specified in paragraph (h).  For an 
  4.27  individual who was a resident of Minnesota for less than the 
  4.28  entire year, the sales tax rebate equals the sales tax rebate 
  4.29  calculated under paragraph (b) or (c) multiplied by the 
  4.30  percentage determined pursuant to Minnesota Statutes, section 
  4.31  290.06, subdivision 2c, paragraph (e), as calculated on the 
  4.32  original 1998 income tax return including subsequent adjustments 
  4.33  to that return made within the time limits specified in 
  4.34  paragraph (h).  For purposes of paragraph (d), "income" is 
  4.35  taxable income as defined in section 63 of the Internal Revenue 
  4.36  Code of 1986, as amended through December 31, 1997, and reported 
  5.1   on the taxpayer's original federal tax return for the first 
  5.2   taxable year beginning after December 31, 1997. 
  5.3      (f) Individuals who were residents of Minnesota for all of 
  5.4   1998, were not eligible for a rebate under paragraph (a), were 
  5.5   not claimed as a dependent on the 1998 federal income tax return 
  5.6   of another, and received social security benefits as defined in 
  5.7   section 86(d)(1) of the Internal Revenue Code of 1986, as 
  5.8   amended through December 31, 1999, are entitled to a rebate of 
  5.9   $71. 
  5.10     (g) For a fiscal year taxpayer, the November 30, 2000, 
  5.11  dates in paragraphs (a) through (d) are extended one month for 
  5.12  each month in calendar year 1997 that occurred prior to the 
  5.13  start of the individual's 1998 fiscal tax year. 
  5.14     (h) Sales tax rebates not paid by April 1, 2001, bear 
  5.15  interest at the rate specified in Minnesota Statutes, section 
  5.16  270.75. 
  5.17     (i) A sales tax rebate shall not be adjusted based on 
  5.18  changes to a 1998 income tax return that are made by order of 
  5.19  assessment after June 15, 2000, or made by the taxpayer by 
  5.20  amended return that are filed with the commissioner of revenue 
  5.21  after June 15, 2000. 
  5.22     (j) Individuals who filed a joint income tax return for 
  5.23  1998 shall receive a joint sales tax rebate.  After the sales 
  5.24  tax rebate has been issued, but before the check has been 
  5.25  cashed, either joint claimant may request a separate check for 
  5.26  one-half of the joint sales tax rebate.  Notwithstanding 
  5.27  anything in this section to the contrary, if, prior to payment, 
  5.28  the commissioner has been notified that persons who filed a 
  5.29  joint 1998 income tax return are living at separate addresses, 
  5.30  as indicated on their 1999 income tax return or otherwise, the 
  5.31  commissioner may issue separate checks to each person.  The 
  5.32  amount payable to each person is one-half of the total joint 
  5.33  rebate. 
  5.34     If a rebate is received by the estate of a deceased 
  5.35  individual after the probate estate has been closed, and if the 
  5.36  original rebate check is returned to the commissioner with a 
  6.1   copy of the decree of descent or final account of the estate, 
  6.2   social security numbers, and addresses of the beneficiaries, the 
  6.3   commissioner may issue separate checks in proportion to their 
  6.4   share in the residuary estate in the names of the residuary 
  6.5   beneficiaries of the estate. 
  6.6      (k) The sales tax rebate is a "Minnesota tax law" for 
  6.7   purposes of Minnesota Statutes, section 270B.01, subdivision 8. 
  6.8      (l) The sales tax rebate is "an overpayment of any tax 
  6.9   collected by the commissioner" for purposes of Minnesota 
  6.10  Statutes, section 270.07, subdivision 5.  For purposes of this 
  6.11  paragraph, a joint sales tax rebate is payable to each spouse 
  6.12  equally. 
  6.13     (m) If the commissioner of revenue cannot locate an 
  6.14  individual entitled to a sales tax rebate by July 1, 2002, or if 
  6.15  an individual to whom a sales tax rebate was issued has not 
  6.16  cashed the check by July 1, 2002, the right to the sales tax 
  6.17  rebate lapses and the check must be deposited in the general 
  6.18  fund. 
  6.19     (n) Individuals entitled to a sales tax rebate pursuant to 
  6.20  paragraph (a) or (f), but who did not receive one, and 
  6.21  individuals who receive a sales tax rebate that was not 
  6.22  correctly computed, must file a claim with the commissioner 
  6.23  before July 1, 2001, in a form prescribed by the commissioner.  
  6.24  These claims must be treated as if they are a claim for refund 
  6.25  under Minnesota Statutes, section 289A.50, subdivisions 4 and 7. 
  6.26     (o) The sales tax rebate is a refund subject to revenue 
  6.27  recapture under Minnesota Statutes, chapter 270A.  The 
  6.28  commissioner of revenue shall remit the entire refund to the 
  6.29  claimant agency, which shall, upon the request of the spouse who 
  6.30  does not owe the debt, refund one-half of the joint sales tax 
  6.31  rebate to the spouse who does not owe the debt. 
  6.32     (p) The rebate is a reduction of fiscal year 2000 sales tax 
  6.33  revenues.  The amount necessary to make the sales tax rebates 
  6.34  and interest provided in this section is appropriated from the 
  6.35  general fund to the commissioner of revenue in fiscal year 2000 
  6.36  and is available until June 30, 2002. 
  7.1      (q) If a sales tax rebate check is cashed by someone other 
  7.2   than the payee or payees of the check, and the commissioner of 
  7.3   revenue determines that the check has been forged or improperly 
  7.4   endorsed, or the commissioner determines that a rebate was 
  7.5   erroneously issued or overstated, the commissioner may issue an 
  7.6   order of assessment for the amount of the check or the amount 
  7.7   the check is overstated against the person or persons cashing 
  7.8   it.  The assessment must be made within two years after the 
  7.9   check is cashed, but if cashing the check constitutes theft 
  7.10  under Minnesota Statutes, section 609.52, or forgery under 
  7.11  Minnesota Statutes, section 609.631, the assessment can be made 
  7.12  at any time.  The assessment may be appealed administratively 
  7.13  and judicially.  The commissioner may take action to collect the 
  7.14  assessment in the same manner as provided by Minnesota Statutes, 
  7.15  chapter 289A, for any other order of the commissioner assessing 
  7.16  tax. 
  7.17     (r) Notwithstanding Minnesota Statutes, sections 9.031, 
  7.18  16A.40, 16B.49, 16B.50, and any other law to the contrary, the 
  7.19  commissioner of revenue may take whatever actions the 
  7.20  commissioner deems necessary to pay the rebates required by this 
  7.21  section, and may, in consultation with the commissioner of 
  7.22  finance and the state treasurer, contract with a private vendor 
  7.23  or vendors to process, print, and mail the rebate checks or 
  7.24  warrants required under this section and receive and disburse 
  7.25  state funds to pay those checks or warrants. 
  7.26     (s) The commissioner may pay rebates required by this 
  7.27  section by electronic funds transfer to individuals who 
  7.28  requested that their 1999 individual income tax refund be paid 
  7.29  through electronic funds transfer.  The commissioner may make 
  7.30  the electronic funds transfer payments to the same financial 
  7.31  institution and into the same account as the 1999 individual 
  7.32  income tax refund. 
  7.33     (t) For purposes of this section, "resident" has the 
  7.34  meaning given in Minnesota Statutes, section 290.01, subdivision 
  7.35  7. 
  7.36     Sec. 3.  [APPROPRIATIONS.] 
  8.1      $1,700,000 is appropriated from the general fund to the 
  8.2   commissioner of revenue to administer the sales tax rebate for 
  8.3   fiscal year 2000.  Any unencumbered balance remaining on June 
  8.4   30, 2000, does not cancel but is available for expenditure by 
  8.5   the commissioner of revenue until June 30, 2002.  This is a 
  8.6   one-time appropriation and may not be added to the agency's 
  8.7   budget base. 
  8.8      Sec. 4.  [EFFECTIVE DATE.] 
  8.9      Sections 1 to 3 are effective the day following final 
  8.10  enactment. 
  8.11                             ARTICLE 2
  8.12                       1999 SALES TAX REBATE
  8.13     Section 1.  Laws 1999, chapter 243, article 1, section 2, 
  8.14  is amended to read: 
  8.15     Sec. 2.  [SALES TAX REBATE.] 
  8.16     (a) An individual who: 
  8.17     (1) was eligible for a credit under Laws 1997, chapter 231, 
  8.18  article 1, section 16, as amended by Laws 1997, First Special 
  8.19  Session chapter 5, section 35, and Laws 1997, Third Special 
  8.20  Session chapter 3, section 11, and Laws 1998, chapter 304, and 
  8.21  Laws 1998, chapter 389, article 1, section 3, and who filed for 
  8.22  or received that credit on or before June 15, 1999; or 
  8.23     (2) was a resident of Minnesota for any part of 1997, and 
  8.24  filed a 1997 Minnesota income tax return on or before June 15, 
  8.25  1999, and had a tax liability before refundable credits on that 
  8.26  return of at least $1 but did not file the claim for credit 
  8.27  authorized under Laws 1997, chapter 231, article 1, section 16, 
  8.28  as amended, and who was not allowed to be claimed as a dependent 
  8.29  on a 1997 federal income tax return filed by another person; or 
  8.30     (3) had the property taxes payable on his or her homestead 
  8.31  abated to zero under Laws 1997, chapter 231, article 2, section 
  8.32  64, 
  8.33  shall receive a sales tax rebate. 
  8.34     (b) The sales tax rebate for taxpayers who qualify under 
  8.35  paragraph (a) as married filing joint or head of household must 
  8.36  be computed according to the following schedule: 
  9.1        Income                             Sales Tax Rebate
  9.2    less than $2,500                              $  358
  9.3    at least $2,500 but less than $5,000          $  469
  9.4    at least $5,000 but less than $10,000         $  502
  9.5    at least $10,000 but less than $15,000        $  549
  9.6    at least $15,000 but less than $20,000        $  604
  9.7    at least $20,000 but less than $25,000        $  641
  9.8    at least $25,000 but less than $30,000        $  690
  9.9    at least $30,000 but less than $35,000        $  762
  9.10   at least $35,000 but less than $40,000        $  820
  9.11   at least $40,000 but less than $45,000        $  874
  9.12   at least $45,000 but less than $50,000        $  921
  9.13   at least $50,000 but less than $60,000        $  969
  9.14   at least $60,000 but less than $70,000        $1,071
  9.15   at least $70,000 but less than $80,000        $1,162
  9.16   at least $80,000 but less than $90,000        $1,276
  9.17   at least $90,000 but less than $100,000       $1,417
  9.18   at least $100,000 but less than $120,000      $1,535
  9.19   at least $120,000 but less than $140,000      $1,682
  9.20   at least $140,000 but less than $160,000      $1,818
  9.21   at least $160,000 but less than $180,000      $1,946
  9.22   at least $180,000 but less than $200,000      $2,067
  9.23   at least $200,000 but less than $400,000      $2,644
  9.24   at least $400,000 but less than $600,000      $3,479
  9.25   at least $600,000 but less than $800,000      $4,175
  9.26   at least $800,000 but less than $1,000,000    $4,785
  9.27   $1,000,000 and over                           $5,000
  9.28     (c) The sales tax rebate for individuals who qualify under 
  9.29  paragraph (a) as single or married filing separately must be 
  9.30  computed according to the following schedule: 
  9.31        Income                                 Sales Tax Rebate
  9.32   less than $2,500                              $  204
  9.33   at least $2,500 but less than $5,000          $  249
  9.34   at least $5,000 but less than $10,000         $  299
  9.35   at least $10,000 but less than $15,000        $  408
  9.36   at least $15,000 but less than $20,000        $  464
 10.1    at least $20,000 but less than $25,000        $  496
 10.2    at least $25,000 but less than $30,000        $  515
 10.3    at least $30,000 but less than $40,000        $  570
 10.4    at least $40,000 but less than $50,000        $  649
 10.5    at least $50,000 but less than $70,000        $  776
 10.6    at least $70,000 but less than $100,000       $  958
 10.7    at least $100,000 but less than $140,000      $1,154
 10.8    at least $140,000 but less than $200,000      $1,394
 10.9    at least $200,000 but less than $400,000      $1,889
 10.10   at least $400,000 but less than $600,000      $2,485
 10.11   $600,000 and over                             $2,500
 10.12     (d) Individuals who were not residents of Minnesota for any 
 10.13  part of 1997 and who paid more than $10 in Minnesota sales tax 
 10.14  on nonbusiness consumer purchases in that year qualify for a 
 10.15  rebate under this paragraph only.  Qualifying nonresidents must 
 10.16  file a claim for rebate on a form prescribed by the commissioner 
 10.17  before the later of June 15, 1999, or 30 days after the date of 
 10.18  enactment of this act.  The claim must include receipts showing 
 10.19  the Minnesota sales tax paid and the date of the sale.  Taxes 
 10.20  paid on purchases allowed in the computation of federal taxable 
 10.21  income or reimbursed by an employer are not eligible for the 
 10.22  rebate.  The commissioner shall determine the qualifying taxes 
 10.23  paid and rebate the lesser of: 
 10.24     (1) 69.0 percent of that amount; or 
 10.25     (2) the maximum amount for which the claimant would have 
 10.26  been eligible as determined under paragraph (b) if the taxpayer 
 10.27  filed the 1997 federal income tax return as a married taxpayer 
 10.28  filing jointly or head of household, or as determined under 
 10.29  paragraph (c) for other taxpayers. 
 10.30     (e) "Income," for purposes of this section other than 
 10.31  paragraph (d), is taxable income as defined in section 63 of the 
 10.32  Internal Revenue Code of 1986, as amended through December 31, 
 10.33  1996, plus the sum of any additions to federal taxable income 
 10.34  for the taxpayer under Minnesota Statutes, section 290.01, 
 10.35  subdivision 19a, and reported on the original 1997 income tax 
 10.36  return including subsequent adjustments to that return made 
 11.1   within the time limits specified in paragraph (h).  For an 
 11.2   individual who was a resident of Minnesota for less than the 
 11.3   entire year, the sales tax rebate equals the sales tax rebate 
 11.4   calculated under paragraph (b) or (c) multiplied by the 
 11.5   percentage determined pursuant to Minnesota Statutes, section 
 11.6   290.06, subdivision 2c, paragraph (e), as calculated on the 
 11.7   original 1997 income tax return including subsequent adjustments 
 11.8   to that return made within the time limits specified in 
 11.9   paragraph (h).  For purposes of paragraph (d), "income" is 
 11.10  taxable income as defined in section 63 of the Internal Revenue 
 11.11  Code of 1986, as amended through December 31, 1996, and reported 
 11.12  on the taxpayer's original federal tax return for the first 
 11.13  taxable year beginning after December 31, 1996. 
 11.14     (f) An individual who would have been eligible for a rebate 
 11.15  under paragraph (a), clause (1) or (2), or (d) had the 
 11.16  individual filed a 1997 Minnesota income tax return or claim 
 11.17  form by June 15, 1999, who files the return or claim form by 
 11.18  June 15, 2001, is eligible for the rebate, except the maximum 
 11.19  rebate is $212 if the individual is single or married filing 
 11.20  separately and the maximum rebate is $371 if the individuals are 
 11.21  married filing joint or head of household. 
 11.22     (g) For a fiscal year taxpayer, the June 15, 1999, dates in 
 11.23  paragraphs (a) through (d) are extended one month for each month 
 11.24  in calendar year 1997 that occurred prior to the start of the 
 11.25  individual's 1997 fiscal tax year. 
 11.26     (h) Before payment, the commissioner of revenue shall 
 11.27  adjust the rebate as follows: 
 11.28     (1) the rebates calculated in paragraphs (b), (c), and (d) 
 11.29  must be proportionately reduced to account for 1997 income tax 
 11.30  returns that are filed on or after January 1, 1999, but before 
 11.31  July 1, 1999, so that the amount of sales tax rebates payable 
 11.32  under paragraphs (b), (c), and (d) does not exceed 
 11.33  $1,250,000,000; and 
 11.34     (2) the commissioner of finance shall certify by July 15, 
 11.35  1999, preliminary fiscal year 1999 general fund net nondedicated 
 11.36  revenues.  The certification shall exclude the impact of any 
 12.1   legislation enacted during the 1999 regular session.  If 
 12.2   certified net nondedicated revenues exceed the amount forecast 
 12.3   in February 1999, up to $50,000,000 of the increase shall be 
 12.4   added to the total amount rebated.  The commissioner of revenue 
 12.5   shall adjust all rebates proportionally to reflect any 
 12.6   increases.  The total amount of the rebate shall not exceed 
 12.7   $1,300,000,000. 
 12.8   The adjustments under this paragraph are not rules subject to 
 12.9   Minnesota Statutes, chapter 14. 
 12.10     (g) (i) The commissioner of revenue may begin making sales 
 12.11  tax rebates by August 1, 1999.  Sales tax rebates not paid by 
 12.12  October 1, 1999, bear interest at the rate specified in 
 12.13  Minnesota Statutes, section 270.75.  Sales tax rebates paid to 
 12.14  (1) taxpayers who file their original 1997 Minnesota income tax 
 12.15  return after June 15, 1999, and (2) qualifying nonresidents who 
 12.16  file a claim for rebate after June 15, 1999, 
 12.17  bear interest at the rate specified in Minnesota Statutes, 
 12.18  section 270.75, beginning October 1, 2000. 
 12.19     (h) (j) A sales tax rebate shall not be adjusted based on 
 12.20  changes to a 1997 income tax return that are made by order of 
 12.21  assessment after June 15, 1999, or made by the taxpayer that are 
 12.22  filed with the commissioner of revenue after June 15, 1999. 
 12.23     (i) (k) Individuals who filed a joint income tax return for 
 12.24  1997 shall receive a joint sales tax rebate.  After the sales 
 12.25  tax rebate has been issued, but before the check has been 
 12.26  cashed, either joint claimant may request a separate check for 
 12.27  one-half of the joint sales tax rebate.  Notwithstanding 
 12.28  anything in this section to the contrary, if prior to payment, 
 12.29  the commissioner has been notified that persons who filed a 
 12.30  joint 1997 income tax return are living at separate addresses, 
 12.31  as indicated on their 1998 income tax return or otherwise, the 
 12.32  commissioner may issue separate checks to each person.  The 
 12.33  amount payable to each person is one-half of the total joint 
 12.34  rebate.  If a rebate is received by the estate of a deceased 
 12.35  individual after the probate estate has been closed, and if the 
 12.36  original rebate check is returned to the commissioner with a 
 13.1   copy of the decree of descent or final account of the estate, 
 13.2   social security numbers, and addresses of the beneficiaries, the 
 13.3   commissioner may issue separate checks in proportion to their 
 13.4   share in the residuary estate in the names of the residuary 
 13.5   beneficiaries of the estate. 
 13.6      (j) (l) The sales tax rebate is a "Minnesota tax law" for 
 13.7   purposes of Minnesota Statutes, section 270B.01, subdivision 8. 
 13.8      (k) (m) The sales tax rebate is "an overpayment of any tax 
 13.9   collected by the commissioner" for purposes of Minnesota 
 13.10  Statutes, section 270.07, subdivision 5.  For purposes of this 
 13.11  paragraph, a joint sales tax rebate is payable to each spouse 
 13.12  equally. 
 13.13     (l) (n) If the commissioner of revenue cannot locate an 
 13.14  individual entitled to a sales tax rebate by July 1, 2001, or if 
 13.15  an individual to whom a sales tax rebate was issued has not 
 13.16  cashed the check by July 1, 2001, the right to the sales tax 
 13.17  rebate lapses and the check must be deposited in the general 
 13.18  fund. 
 13.19     (m) (o) Individuals entitled to a sales tax rebate pursuant 
 13.20  to paragraph (a), but who did not receive one, and individuals 
 13.21  who receive a sales tax rebate that was not correctly computed, 
 13.22  must file a claim with the commissioner before July 1, 2000, in 
 13.23  a form prescribed by the commissioner.  Taxpayers who file their 
 13.24  original 1997 Minnesota income tax return after June 15, 1999, 
 13.25  and qualifying nonresidents who file a claim for rebate after 
 13.26  June 15, 1999, and who do not receive it or who receive a sales 
 13.27  tax rebate that was not correctly computed, must file a claim 
 13.28  with the commissioner before July 1, 2001, in a form prescribed 
 13.29  by the commissioner.  These claims must be treated as if they 
 13.30  are a claim for refund under Minnesota Statutes, section 
 13.31  289A.50, subdivisions 4 and 7. 
 13.32     (n) (p) The sales tax rebate is a refund subject to revenue 
 13.33  recapture under Minnesota Statutes, chapter 270A.  The 
 13.34  commissioner of revenue shall remit the entire refund to the 
 13.35  claimant agency, which shall, upon the request of the spouse who 
 13.36  does not owe the debt, refund one-half of the joint sales tax 
 14.1   rebate to the spouse who does not owe the debt. 
 14.2      (o) (q) The rebate is a reduction of fiscal year 1999 sales 
 14.3   tax revenues.  The amount necessary to make the sales tax 
 14.4   rebates and interest provided in this section is appropriated 
 14.5   from the general fund to the commissioner of revenue in fiscal 
 14.6   year 1999 and is available until June 30, 2001. 
 14.7      (p) (r) If a sales tax rebate check is cashed by someone 
 14.8   other than the payee or payees of the check, and the 
 14.9   commissioner of revenue determines that the check has been 
 14.10  forged or improperly endorsed or the commissioner determines 
 14.11  that a rebate was overstated or erroneously issued, the 
 14.12  commissioner may issue an order of assessment for the amount of 
 14.13  the check or the amount the check is overstated against the 
 14.14  person or persons cashing it.  The assessment must be made 
 14.15  within two years after the check is cashed, but if cashing the 
 14.16  check constitutes theft under Minnesota Statutes, section 
 14.17  609.52, or forgery under Minnesota Statutes, section 609.631, 
 14.18  the assessment can be made at any time.  The assessment may be 
 14.19  appealed administratively and judicially.  The commissioner may 
 14.20  take action to collect the assessment in the same manner as 
 14.21  provided by Minnesota Statutes, chapter 289A, for any other 
 14.22  order of the commissioner assessing tax. 
 14.23     (q) (s) Notwithstanding Minnesota Statutes, sections 9.031, 
 14.24  16A.40, 16B.49, 16B.50, and any other law to the contrary, the 
 14.25  commissioner of revenue may take whatever actions the 
 14.26  commissioner deems necessary to pay the rebates required by this 
 14.27  section, and may, in consultation with the commissioner of 
 14.28  finance and the state treasurer, contract with a private vendor 
 14.29  or vendors to process, print, and mail the rebate checks or 
 14.30  warrants required under this section and receive and disburse 
 14.31  state funds to pay those checks or warrants. 
 14.32     (r) (t) The commissioner may pay rebates required by this 
 14.33  section by electronic funds transfer to individuals who 
 14.34  requested that their 1998 individual income tax refund be paid 
 14.35  through electronic funds transfer.  The commissioner may make 
 14.36  the electronic funds transfer payments to the same financial 
 15.1   institution and into the same account as the 1998 individual 
 15.2   income tax refund. 
 15.3      Sec. 2.  [APPLICATION OF LAW.] 
 15.4      The limitation on the total amount of rebates in Laws 1999, 
 15.5   chapter 243, article 1, section 2, paragraph (f), does not apply 
 15.6   to rebates issued under section 1.  To the extent applicable, 
 15.7   all other provisions of Laws 1999, chapter 243, article 1, 
 15.8   section 2, apply to the rebates paid under section 1.  
 15.9      Sec. 3.  [APPROPRIATION.] 
 15.10     The amount necessary to pay the rebates under section 1 is 
 15.11  appropriated from the general fund to the commissioner of 
 15.12  revenue for fiscal years 2000 and 2001. 
 15.13     Sec. 4.  [EFFECTIVE DATE.] 
 15.14     Sections 1 to 3 are effective the day following final 
 15.15  enactment. 
 15.16                             ARTICLE 3
 15.17               PASSENGER AUTOMOBILE REGISTRATION TAX
 15.18     Section 1.  Minnesota Statutes 1998, section 168.013, 
 15.19  subdivision 1a, is amended to read: 
 15.20     Subd. 1a.  [PASSENGER AUTOMOBILE; HEARSE.] (a) On passenger 
 15.21  automobiles as defined in section 168.011, subdivision 7, and 
 15.22  hearses, except as otherwise provided, the tax shall be $10 plus 
 15.23  an additional tax equal to 1.25 percent of the base value.  
 15.24     (b) Subject to the classification provisions herein, "base 
 15.25  value" means the manufacturer's suggested retail price of the 
 15.26  vehicle including destination charge using list price 
 15.27  information published by the manufacturer or determined by the 
 15.28  registrar if no suggested retail price exists, and shall not 
 15.29  include the cost of each accessory or item of optional equipment 
 15.30  separately added to the vehicle and the suggested retail price. 
 15.31     (c) If the manufacturer's list price information contains a 
 15.32  single vehicle identification number followed by various 
 15.33  descriptions and suggested retail prices, the registrar shall 
 15.34  select from those listings only the lowest price for determining 
 15.35  base value. 
 15.36     (d) If unable to determine the base value because the 
 16.1   vehicle is specially constructed, or for any other reason, the 
 16.2   registrar may establish such value upon the cost price to the 
 16.3   purchaser or owner as evidenced by a certificate of cost but not 
 16.4   including Minnesota sales or use tax or any local sales or other 
 16.5   local tax. 
 16.6      (e) The registrar shall classify every vehicle in its 
 16.7   proper base value class as follows: 
 16.8                         FROM                   TO
 16.9                         $  0                $199.99
 16.10                         200                 399.99
 16.11  and thereafter a series of classes successively set in brackets 
 16.12  having a spread of $200 consisting of such number of classes as 
 16.13  will permit classification of all vehicles. 
 16.14     (f) The base value for purposes of this section shall be 
 16.15  the middle point between the extremes of its class. 
 16.16     (g) The registrar shall establish the base value, when new, 
 16.17  of every passenger automobile and hearse registered prior to the 
 16.18  effective date of Extra Session Laws 1971, chapter 31, using 
 16.19  list price information published by the manufacturer or any 
 16.20  nationally recognized firm or association compiling such data 
 16.21  for the automotive industry.  If unable to ascertain the base 
 16.22  value of any registered vehicle in the foregoing manner, the 
 16.23  registrar may use any other available source or method.  The tax 
 16.24  on all previously registered vehicles shall be computed upon the 
 16.25  base value thus determined taking into account the depreciation 
 16.26  provisions of paragraph (h). 
 16.27     (h) Except as provided in paragraph (i), the annual 
 16.28  additional tax computed upon the base value as provided herein, 
 16.29  during the first and second years of vehicle life shall be 
 16.30  computed upon 100 percent of the base value; for the third and 
 16.31  fourth years, 90 percent of such value; for the fifth and sixth 
 16.32  years, 75 percent of such value; for the seventh year, 60 
 16.33  percent of such value; for the eighth year, 40 percent of such 
 16.34  value; for the ninth year, 30 percent of such value; for the 
 16.35  tenth year, ten percent of such value; for the 11th and each 
 16.36  succeeding year, the sum of $25.  
 17.1      In no event shall the annual additional tax be less than 
 17.2   $25. 
 17.3      For registration of passenger automobiles, the annual 
 17.4   additional tax shall not exceed $65. 
 17.5      (i) The annual additional tax under paragraph (h) on a 
 17.6   motor vehicle on which the first annual tax was paid before 
 17.7   January 1, 1990, must not exceed the tax that was paid on that 
 17.8   vehicle the year before. 
 17.9      Sec. 2.  [APPROPRIATION.] 
 17.10     For fiscal year 2001, $276,248,000 is appropriated from the 
 17.11  general fund to the highway user tax distribution fund for 
 17.12  apportionment in the same manner and for the same purpose as 
 17.13  other money in that fund. 
 17.14     Sec. 3.  [EFFECTIVE DATE.] 
 17.15     Section 1 is effective for registrations after June 30, 
 17.16  2000. 
 17.17                             ARTICLE 4 
 17.18                       TAX RELIEF AND REFORM 
 17.19     Section 1.  Minnesota Statutes 1999 Supplement, section 
 17.20  16A.1522, subdivision 1, is amended to read: 
 17.21     Subdivision 1.  [FORECAST DEPOSIT OF REVENUES.] Subsequent 
 17.22  to its creation, revenues may be deposited into the tax relief 
 17.23  and reform account in two ways: 
 17.24     (1) the governor may specify an amount to be allocated or 
 17.25  transferred for deposit into the tax relief and reform account 
 17.26  as a part of the biennial or supplemental budget recommendations 
 17.27  submitted to the legislature.  The legislature may enact, 
 17.28  modify, or reject the recommended allocation or transfer; and 
 17.29     (2) if, on the basis of a forecast of general fund revenues 
 17.30  and expenditures in November of an even-numbered year or 
 17.31  February of an odd-numbered year, the commissioner projects a 
 17.32  positive unrestricted budgetary general fund balance at the 
 17.33  close of the biennium that exceeds one-half of one percent of 
 17.34  total general fund biennial revenues, the commissioner shall 
 17.35  designate the entire balance as available for rebate to the 
 17.36  taxpayers of this state.  In forecasting, projecting, or 
 18.1   designating the unrestricted budgetary general fund balance or 
 18.2   general fund biennial revenue under this section, the 
 18.3   commissioner shall not include any balance or revenue 
 18.4   attributable to settlement payments received after July 1, 1998, 
 18.5   and before July 1, 2001, as defined in Section IIB of the 
 18.6   settlement document, filed May 18, 1998, in State v. Philip 
 18.7   Morris, Inc., No. C1-94-8565 (Minnesota District Court, Second 
 18.8   Judicial District) allocated to the tax relief and reform 
 18.9   account.  Revenues allocated under this clause must be rebated 
 18.10  to taxpayers as specified in subdivision 2. 
 18.11     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
 18.12  16A.1522, is amended by adding a new subdivision to read: 
 18.13     Subd. 1a.  [TAX RELIEF AND REFORM ACCOUNT.] A permanent tax 
 18.14  relief and reform account is established in the general fund.  
 18.15  Amounts in the account are available only to provide tax relief 
 18.16  and reform as provided in this section.  The governor may 
 18.17  prepare a plan for the revenues in the account, or estimated to 
 18.18  be in the account as of a certain date, and present that plan to 
 18.19  the legislature as a part of the biennial budget recommendations 
 18.20  submitted to the legislature in each odd-numbered year.  The 
 18.21  balance in the account at the end of a fiscal year does not 
 18.22  cancel, but remains in the account until appropriated.  Earnings 
 18.23  attributable to the amounts in the account are credited to the 
 18.24  general fund. 
 18.25     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
 18.26  16A.1522, is amended by adding a subdivision to read: 
 18.27     Subd. 1b.  [USE OF REVENUES.] The amounts in the tax relief 
 18.28  and reform account are available solely for the purposes of 
 18.29  providing tax relief to taxpayers and reform of the state's tax 
 18.30  system and may only be used to: 
 18.31     (1) fund rebates under subdivision 2; 
 18.32     (2) reduce tax burden inequities among taxpayers relative 
 18.33  to their ability to pay and cost of government services used; 
 18.34     (3) reduce complexities and administrative burdens in the 
 18.35  system that make it difficult for taxpayers to understand and 
 18.36  comply with Minnesota tax laws; 
 19.1      (4) reform the tax system to better reflect economic 
 19.2   changes in the transaction of goods and services, sources of 
 19.3   wealth and income, and forms of business organization; and 
 19.4      (5) enhance accountability in Minnesota's state and local 
 19.5   finance system by better aligning intergovernmental fiscal and 
 19.6   service responsibilities and by identifying the appropriate role 
 19.7   of the property tax, aids, and credits to pay for public goods 
 19.8   and services including specific state mandated programs. 
 19.9      Sec. 4.  Minnesota Statutes 1999 Supplement, section 
 19.10  16A.1522, subdivision 4, is amended to read: 
 19.11     Subd. 4.  [TRANSFER TO TAX RELIEF AND REFORM ACCOUNT.] Any 
 19.12  positive unrestricted budgetary general fund balance on June 30 
 19.13  of an odd-numbered year is appropriated to the commissioner for 
 19.14  transfer to the tax relief and reform account established in 
 19.15  subdivision 1a. 
 19.16     Sec. 5.  [ABOLISHING PROPERTY TAX REFORM ACCOUNT.] 
 19.17     The property tax reform account established under Minnesota 
 19.18  Statutes 1998, section 16A.1521 is abolished.  The balance in 
 19.19  the account is allocated to and transferred to the tax relief 
 19.20  and reform account established in section 2. 
 19.21     Sec. 6.  [TAX RELIEF ACCOUNT ABOLISHED.] 
 19.22     The tax relief account referred to in Minnesota Statutes 
 19.23  1999 Supplement, section 16A.1522, subdivision 4, is abolished.  
 19.24  The balance in the account is allocated and transferred to the 
 19.25  tax relief and reform account established in section 2.  
 19.26     Sec. 7.  [REPEALER.] 
 19.27     Minnesota Statutes 1998, section 16A.1521, is repealed. 
 19.28     Sec. 8.  [EFFECTIVE DATES.] 
 19.29     Sections 1 to 7 are effective the day following final 
 19.30  enactment. 
 19.31                             ARTICLE 5
 19.32                            LEVY LIMITS 
 19.33     Section 1.  Minnesota Statutes 1999 Supplement, section 
 19.34  275.71, subdivision 2, is amended to read: 
 19.35     Subd. 2.  [LEVY LIMIT BASE.] (a) The levy limit base for a 
 19.36  local governmental unit for taxes levied in 1997 shall be equal 
 20.1   to the sum of: 
 20.2      (1) the amount the local governmental unit levied in 1996, 
 20.3   less any amount levied for debt, as reported to the department 
 20.4   of revenue under section 275.62, subdivision 1, clause (1), and 
 20.5   less any tax levied in 1996 against market value as provided for 
 20.6   in section 275.61; 
 20.7      (2) the amount of aids the local governmental unit was 
 20.8   certified to receive in calendar year 1997 under sections 
 20.9   477A.011 to 477A.03 before any reductions for state tax 
 20.10  increment financing aid under section 273.1399, subdivision 5; 
 20.11     (3) the amount of homestead and agricultural credit aid the 
 20.12  local governmental unit was certified to receive under section 
 20.13  273.1398 in calendar year 1997 before any reductions for tax 
 20.14  increment financing aid under section 273.1399, subdivision 5; 
 20.15     (4) the amount of local performance aid the local 
 20.16  governmental unit was certified to receive in calendar year 1997 
 20.17  under section 477A.05; and 
 20.18     (5) the amount of any payments certified to the local 
 20.19  government unit in 1997 under sections 298.28 and 298.282. 
 20.20     If a governmental unit was not required to report under 
 20.21  section 275.62 for taxes levied in 1997, the commissioner shall 
 20.22  request information on levies used for debt from the local 
 20.23  governmental unit and adjust its levy limit base accordingly. 
 20.24     (b) The levy limit base for a local governmental unit for 
 20.25  taxes levied in 1998 is equal to its adjusted levy limit base in 
 20.26  the previous year, subject to any adjustments under section 
 20.27  275.72 and multiplied by the increase that would have occurred 
 20.28  under subdivision 3, clause (3), if that clause had been in 
 20.29  effect for taxes levied in 1997. 
 20.30     (c) The levy limit base for a city with a population 
 20.31  greater than 2,500 for taxes levied in 1999 and 2000 is limited 
 20.32  to its adjusted levy limit base in the previous year, subject to 
 20.33  adjustments under section 275.72. 
 20.34     (d) The levy limit base for a county for taxes levied in 
 20.35  1999 and 2000 is limited to the difference between (1) its 
 20.36  adjusted levy limit base in the previous year subject to 
 21.1   adjustments under section 275.72, and (2) one-half of the 
 21.2   county's share of the net cost to the state for assumption of 
 21.3   district court costs, as reported by the supreme court to the 
 21.4   commissioner of revenue under section 273.1398, subdivision 4a, 
 21.5   paragraph (a). 
 21.6      Sec. 2.  Minnesota Statutes 1999 Supplement, section 
 21.7   275.71, subdivision 3, is amended to read: 
 21.8      Subd. 3.  [ADJUSTED LEVY LIMIT BASE.] For taxes levied in 
 21.9   1998 and, 1999, and 2000, the adjusted levy limit is equal to 
 21.10  the levy limit base computed under subdivision 2 or section 
 21.11  275.72, multiplied by: 
 21.12     (1) one plus a percentage equal to the percentage growth in 
 21.13  the implicit price deflator; and 
 21.14     (2) for all cities and for counties outside of the 
 21.15  seven-county metropolitan area, one plus a percentage equal to 
 21.16  the percentage increase in number of households, if any, for the 
 21.17  most recent 12-month period for which data is available; and for 
 21.18  counties located in the seven-county metropolitan area, one plus 
 21.19  a percentage equal to the greater of the percentage increase in 
 21.20  the number of households in the county or the percentage 
 21.21  increase in the number of households in the entire seven-county 
 21.22  metropolitan area for the most recent 12-month period for which 
 21.23  data is available; and 
 21.24     (3) one plus a percentage equal to the percentage increase 
 21.25  in the taxable market value of the jurisdiction due to new 
 21.26  construction of class 3 and class 5 property, as defined in 
 21.27  section 273.13, subdivisions 24 and 31, for the most recent year 
 21.28  for which data are available. 
 21.29     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
 21.30  275.71, subdivision 4, is amended to read: 
 21.31     Subd. 4.  [PROPERTY TAX LEVY LIMIT.] For taxes levied in 
 21.32  1998 and, 1999, and 2000, the property tax levy limit for a 
 21.33  local governmental unit is equal to its adjusted levy limit base 
 21.34  determined under subdivision 3 plus any additional levy 
 21.35  authorized under section 275.73, which is levied against net tax 
 21.36  capacity, reduced by the sum of (1) the total amount of aids 
 22.1   that the local governmental unit is certified to receive under 
 22.2   sections 477A.011 to 477A.014, (2) homestead and agricultural 
 22.3   aids it is certified to receive under section 273.1398, (3) 
 22.4   local performance aid it is certified to receive under section 
 22.5   477A.05, (4) taconite aids under sections 298.28 and 298.282 
 22.6   including any aid which was required to be placed in a special 
 22.7   fund for expenditure in the next succeeding year, (5) flood loss 
 22.8   aid under section 273.1383, and (6) low-income housing aid under 
 22.9   sections 477A.06 and 477A.065. 
 22.10     Sec. 4.  Minnesota Statutes 1998, section 275.72, 
 22.11  subdivision 1, is amended to read: 
 22.12     Subdivision 1.  [ADJUSTMENTS FOR CONSOLIDATION.] (a) If all 
 22.13  of the area included in two or more local governmental units is 
 22.14  consolidated, merged, or otherwise combined to constitute a 
 22.15  single governmental unit, the levy limit base for the resulting 
 22.16  governmental unit in the first levy year in which the 
 22.17  consolidation is effective shall be equal to (1) the 
 22.18  highest average tax rate in any of the merging governmental 
 22.19  units in for the previous current taxes payable year multiplied 
 22.20  by the net tax capacity of all the merging governmental units in 
 22.21  for the previous current taxes payable year, minus (2) the sum 
 22.22  of all levies in the merging governmental units in for the 
 22.23  previous current taxes payable year that qualify as special 
 22.24  levies under section 275.70, subdivision 3. 
 22.25     (b) The average tax rate of a governmental unit for the 
 22.26  current taxes payable year must be determined by (1) adding the 
 22.27  governmental subdivision's final certified levy for the current 
 22.28  taxes payable year and its property tax aids described in 
 22.29  section 275.71, subdivision 4, for the current aid payment year, 
 22.30  and (2) dividing that result by the sum of the governmental 
 22.31  subdivision's total taxable net tax capacity and its total 
 22.32  fiscal disparity distribution net tax capacity, if any, for the 
 22.33  current taxes payable year.  The net tax capacity of all the 
 22.34  merging governmental units for the purpose of this adjustment is 
 22.35  the sum of their total taxable net tax capacity plus their total 
 22.36  fiscal disparity distribution net tax capacity, if any, for the 
 23.1   current taxes payable year.  
 23.2      Sec. 5.  Laws 1997, chapter 231, article 3, section 9, as 
 23.3   amended by Laws 1999, chapter 243, article 6, section 10, is 
 23.4   amended to read:  
 23.5      Sec. 9.  EFFECTIVE DATE. 
 23.6      Sections 1 and 3 to 7, as amended by Laws 1998, chapter 
 23.7   389, article 4, sections 1 to 6, are effective for taxes levied 
 23.8   in 1997 through 1999 2000, payable in 1998 through 2000 2001. 
 23.9      Upon compliance with Minnesota Statutes, section 645.021, 
 23.10  subdivision 3, by the governing body of Faribault county or the 
 23.11  city of Blue Earth, section 8 is effective for taxes levied in 
 23.12  1997 through 1999 2000 in the county or city that approves it. 
 23.13     Sec. 6.  Laws 1998, chapter 389, article 4, section 14, 
 23.14  subdivision 2, is amended to read: 
 23.15     Subd. 2.  [EFFECTIVE DATE.] Upon compliance by the 
 23.16  governing body of the city of Red Wing with Minnesota Statutes, 
 23.17  section 645.021, subdivision 3, subdivision 1 is effective for 
 23.18  taxes levied in 1998, 1999, and 2000, taxes payable in 1999, 
 23.19  2000, and 2001.  
 23.20     Sec. 7.  Laws 1998, chapter 389, article 4, section 18, is 
 23.21  amended to read: 
 23.22     Sec. 18.  EFFECTIVE DATES. 
 23.23     Sections 1, 3 to 6, and 14, and are effective for taxes 
 23.24  levied in 1998, 1999, and 2000, taxes payable in 1999, 2000, and 
 23.25  2001.  Section 15 are is effective for taxes levied in 1998, 
 23.26  payable in 1999.  Section 2 is effective for taxes levied in 
 23.27  1997 and, 1998, 1999, and 2000, payable in 1998 and, 1999, 
 23.28  2000, and 2001.  Sections 7 and 8 are effective for aids payable 
 23.29  in 1999 and thereafter.  Section 9 is effective for aids payable 
 23.30  in 1999 to 2008.  Section 10 is effective for aids payable in 
 23.31  1999 to 2001.  Section 11 is effective for aids payable in 2001 
 23.32  and thereafter.  Section 12 is effective for aids payable in 
 23.33  1999 only.  Section 13 is effective for aids payable in 1998 and 
 23.34  1999 only. 
 23.35     Sec. 8.  Laws 1999, chapter 243, article 6, section 12, 
 23.36  subdivision 4, is amended to read: 
 24.1      Subd. 4.  [EFFECTIVE DATE.] Subdivision 1 is effective for 
 24.2   taxes levied in 1999 and 2000 upon compliance with the governing 
 24.3   body of the county of Goodhue with Minnesota Statutes, section 
 24.4   645.021, subdivision 3.  Subdivision 2 is effective for aids 
 24.5   payable in calendar years 1999 to 2001. 
 24.6      Sec. 9.  Laws 1999, chapter 243, article 6, section 13, 
 24.7   subdivision 2, is amended to read: 
 24.8      Subd. 2.  [LOCAL APPROVAL; EFFECTIVE DATE.] This section is 
 24.9   effective upon compliance by the governing body of the city of 
 24.10  Grant with Minnesota Statutes, section 645.021, subdivision 3, 
 24.11  for taxes levied in 1999, payable in 2000 and 2001. 
 24.12     Sec. 10.  Laws 1999, chapter 243, article 6, section 18, is 
 24.13  amended to read: 
 24.14     Sec. 18.  EFFECTIVE DATE. 
 24.15     Sections 3 to 6 and 10 are effective for taxes levied in 
 24.16  1999 and 2000, and payable in 2000 and 2001.  Section 7 is 
 24.17  effective the day following final enactment for taxes levied in 
 24.18  1999 and thereafter.  Sections 8 and 17 are effective for taxes 
 24.19  levied in 1999, payable in 2000, and thereafter. 
 24.20     The .0015 percent of taxable market value levy described in 
 24.21  section 9, paragraph (c), is effective for the cities of Cook 
 24.22  and Orr and the counties of St. Louis and Koochiching for 
 24.23  affected parts of those counties on January 1, 2000, to be 
 24.24  requested in the year 2000, with the first payment to be 
 24.25  received in 2001.  
 24.26     Sec. 11.  [EFFECTIVE DATES.] 
 24.27     Sections 1 to 3 are effective for taxes payable in 2001.  
 24.28  Section 4 is effective for taxes payable in 2000 and 2001.  
 24.29  Sections 5, 6, 8, and 9 are effective the day following final 
 24.30  enactment without local approval.  Sections 7 and 10 are 
 24.31  effective the day following final enactment. 
 24.32                             ARTICLE 6 
 24.33                           PREMIUM TAXES 
 24.34     Section 1.  Minnesota Statutes 1998, section 60A.15, 
 24.35  subdivision 1, is amended to read: 
 24.36     Subdivision 1.  [DOMESTIC AND FOREIGN COMPANIES.] (a) On or 
 25.1   before April 1, June 1, and December 1 of each year, every 
 25.2   domestic and foreign company, including town and farmers' mutual 
 25.3   insurance companies, domestic mutual insurance companies, marine 
 25.4   insurance companies, health maintenance organizations, community 
 25.5   integrated service networks, and nonprofit health service plan 
 25.6   corporations, shall pay to the commissioner of revenue 
 25.7   installments equal to one-third of the insurer's total estimated 
 25.8   tax for the current year.  Except as provided in paragraphs (d), 
 25.9   (e), (h), and (i), installments must be based on a sum equal to 
 25.10  two percent of the premiums described in paragraph (b). 
 25.11     (b) Installments under paragraph (a), (d), or (e) are 
 25.12  percentages of gross premiums less return premiums on all direct 
 25.13  business received by the insurer in this state, or by its agents 
 25.14  for it, in cash or otherwise, during such year. 
 25.15     (c) Failure of a company to make payments of at least 
 25.16  one-third of either (1) the total tax paid during the previous 
 25.17  calendar year or (2) 80 percent of the actual tax for the 
 25.18  current calendar year shall subject the company to the penalty 
 25.19  and interest provided in this section, unless the total tax for 
 25.20  the current tax year is $500 or less. 
 25.21     (d) For health maintenance organizations, nonprofit health 
 25.22  service plan corporations, and community integrated service 
 25.23  networks, the installments must be based on an amount determined 
 25.24  under paragraph (h) or (i). 
 25.25     (e) For purposes of computing installments for town and 
 25.26  farmers' mutual insurance companies and for mutual property 
 25.27  casualty companies with total assets on December 31, 1989, of 
 25.28  $1,600,000,000 or less, the following rates apply: 
 25.29     (1) for all life insurance, two percent; 
 25.30     (2) for town and farmers' mutual insurance companies and 
 25.31  for mutual property and casualty companies with total assets of 
 25.32  $5,000,000 or less, on all other coverages, one percent; and 
 25.33     (3) for mutual property and casualty companies with total 
 25.34  assets on December 31, 1989, of $1,600,000,000 or less, on all 
 25.35  other coverages, 1.26 percent. 
 25.36     (f) If the aggregate amount of premium tax payments under 
 26.1   this section and the fire marshal tax payments under section 
 26.2   299F.21 made during a calendar year is equal to or exceeds 
 26.3   $120,000, all tax payments in the subsequent calendar year must 
 26.4   be paid by means of a funds transfer as defined in section 
 26.5   336.4A-104, paragraph (a).  The funds transfer payment date, as 
 26.6   defined in section 336.4A-401, must be on or before the date the 
 26.7   payment is due.  If the date the payment is due is not a funds 
 26.8   transfer business day, as defined in section 336.4A-105, 
 26.9   paragraph (a), clause (4), the payment date must be on or before 
 26.10  the funds transfer business day next following the date the 
 26.11  payment is due.  
 26.12     (g) Premiums under medical assistance, general assistance 
 26.13  medical care, the MinnesotaCare program, and the Minnesota 
 26.14  comprehensive health insurance plan and all payments, revenues, 
 26.15  and reimbursements received from the federal government for 
 26.16  Medicare-related coverage as defined in section 62A.31, 
 26.17  subdivision 3, paragraph (e), are not subject to tax under this 
 26.18  section. 
 26.19     (h) For calendar years 1997, 1998, and 1999, the 
 26.20  installments for health maintenance organizations, community 
 26.21  integrated service networks, and nonprofit health service plan 
 26.22  corporations must be based on an amount equal to one percent of 
 26.23  premiums described under paragraph (b).  Health maintenance 
 26.24  organizations, community integrated service networks, and 
 26.25  nonprofit health service plan corporations that have met the 
 26.26  cost containment goals established under section 62J.04 in the 
 26.27  individual and small employer market for calendar year 1996 are 
 26.28  exempt from payment of the tax imposed under this section for 
 26.29  premiums paid after March 30, 1997, and before April 1, 1998.  
 26.30  Health maintenance organizations, community integrated service 
 26.31  networks, and nonprofit health service plan corporations that 
 26.32  have met the cost containment goals established under section 
 26.33  62J.04 in the individual and small employer market for calendar 
 26.34  year 1997 are exempt from payment of the tax imposed under this 
 26.35  section for premiums paid after March 30, 1998, and before April 
 26.36  1, 1999.  Health maintenance organizations, community integrated 
 27.1   service networks, and nonprofit health service plan corporations 
 27.2   that have met the cost containment goals established under 
 27.3   section 62J.04 in the individual and small employer market for 
 27.4   calendar year 1998 are exempt from payment of the tax imposed 
 27.5   under this section for premiums paid after March 30, 1999, and 
 27.6   before January 1, 2000.  
 27.7      (i) Health maintenance organizations, community integrated 
 27.8   service networks, and nonprofit health service plan corporations 
 27.9   are exempt from the tax imposed under this section on premiums 
 27.10  received in calendar years 2000 and 2001. 
 27.11     (i) For calendar years after 1999, The commissioner of 
 27.12  finance shall determine the balance of the health care access 
 27.13  fund on September 1 of each year beginning September 1, 1999 
 27.14  2000.  If the commissioner determines that there is no 
 27.15  structural deficit for the next fiscal year, no tax shall be 
 27.16  imposed under paragraph (d) for the following calendar year 
 27.17  beginning six months after the fiscal year has begun.  If the 
 27.18  commissioner determines that there will be a structural deficit 
 27.19  in the fund for the following fiscal year, then the 
 27.20  commissioner, in consultation with the commissioner of revenue, 
 27.21  shall determine the amount needed to eliminate the structural 
 27.22  deficit and a tax shall be imposed under paragraph (d) for the 
 27.23  following calendar year beginning six months after that fiscal 
 27.24  year has begun.  The commissioner shall determine the rate of 
 27.25  the tax as either one-quarter of one percent, one-half of one 
 27.26  percent, three-quarters of one percent, or one percent of 
 27.27  premiums described in paragraph (b), whichever is the lowest of 
 27.28  those rates that the commissioner determines will produce 
 27.29  sufficient revenue to eliminate the projected structural 
 27.30  deficit.  The commissioner of finance shall publish in the State 
 27.31  Register by October 1 of each year the amount of tax to be 
 27.32  imposed for the following calendar year.  In determining the 
 27.33  structural balance of the health care access fund for fiscal 
 27.34  years 2000 and 2001, the commissioner shall disregard the 
 27.35  transfer amount from the health care access fund to the general 
 27.36  fund for expenditures associated with the services provided to 
 28.1   pregnant women and children under the age of two enrolled in the 
 28.2   MinnesotaCare program.  
 28.3      (j) In approving the premium rates as required in sections 
 28.4   62L.08, subdivision 8, and 62A.65, subdivision 3, the 
 28.5   commissioners of health and commerce shall ensure that any 
 28.6   exemption from the tax as described in paragraphs (h) and (i) is 
 28.7   reflected in the premium rate. 
 28.8      Sec. 2.  [EFFECTIVE DATE.] 
 28.9      Section 1 is effective for taxes on premiums received after 
 28.10  December 31, 1999.