HF 3669

2nd Engrossment - 92nd Legislature (2021 - 2022) Posted on 04/28/2022 11:13am

A bill for an act
relating to taxation; modifying provisions governing individual income and
corporate franchise taxes, sales and use taxes, property taxes, certain state aid
programs, certain local taxes, tax increment financing, and various other taxes and
tax-related provisions; providing for certain federal tax conformity; modifying
and proposing certain income tax credits and subtractions; providing for certain
sales tax exemptions; modifying property tax refunds and programs; proposing
additional local government aid programs; authorizing certain tax increment
financing; authorizing certain local taxes; converting the renter's property tax
refund into a refundable individual income tax credit; requiring reports;
appropriating money; amending Minnesota Statutes 2020, sections 6.495,
subdivision 3; 38.27, subdivision 4; 41B.0391, subdivisions 1, 2, 4; 123B.595,
subdivision 3; 123B.61; 126C.40, subdivision 1; 270A.03, subdivision 2; 270B.12,
subdivision 8; 272.01, subdivision 2; 272.02, subdivisions 24, 98, by adding
subdivisions; 272.025, subdivision 1; 273.124, subdivisions 3a, 6, 13a, 13c, 13d;
273.1245, subdivision 1; 273.13, subdivision 35; 273.1315, subdivision 2; 273.1387,
subdivision 2; 273.41; 279.03, subdivision 1a; 282.261, subdivision 2; 287.12;
287.29; 287.31, subdivision 3; 289A.02, subdivision 7; 289A.38, subdivision 4;
289A.56, subdivision 6; 289A.60, subdivision 12; 290.0131, by adding
subdivisions; 290.0132, subdivisions 18, 21, 26, by adding subdivisions; 290.0133,
by adding a subdivision; 290.0134, by adding a subdivision; 290.067; 290.0674,
subdivision 2; 290.0681, subdivisions 2, 3, 4; 290.0685, subdivision 1, by adding
a subdivision; 290.091, subdivision 2; 290.095, subdivision 11; 290A.02; 290A.03,
subdivisions 6, 8, 12, 13, 15; 290A.04, subdivisions 1, 2, 2h, 4; 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; 296A.083, subdivision 3; 297A.61, subdivisions 12, 29;
297A.68, subdivision 25, by adding subdivisions; 297A.70, subdivision 21;
297A.71, subdivision 51, by adding subdivisions; 297A.94; 297A.99, subdivisions
1, 3; 297H.13, subdivision 2; 298.28, subdivisions 7a, 9b; 366.095, subdivision
1; 373.01, subdivision 3; 383B.117, subdivision 2; 410.32; 412.301; 462A.05,
subdivision 24; 462A.38; 469.174, subdivision 14, by adding a subdivision;
469.176, subdivisions 3, 4; 469.1763, subdivision 6; 469.1771, subdivisions 2, 2a,
3; 477A.011, subdivision 34, by adding subdivisions; 477A.0124, subdivision 2;
477A.013, subdivisions 8, 9; 477A.015; 477A.03, subdivision 2a; 477A.12,
subdivisions 1, 3, by adding a subdivision; 477B.01, subdivisions 5, 10, 11, by
adding subdivisions; 477B.02, subdivisions 2, 3, 5, 8, 9, by adding a subdivision;
477B.03, subdivisions 2, 3, 4, 5, 7; 477B.04, subdivision 1, by adding a subdivision;
477C.03, subdivisions 2, 5; 477C.04, by adding a subdivision; Minnesota Statutes
2021 Supplement, sections 16A.152, subdivision 2; 116J.8737, subdivision 5;
116U.27, subdivision 1; 126C.10, subdivision 2e; 272.0295, subdivision 2; 273.11,
subdivision 12; 273.124, subdivisions 13, 14; 273.13, subdivisions 23, 25, 34;
289A.08, subdivisions 7, 7a; 289A.382, subdivision 2; 290.01, subdivisions 19,
31; 290.06, subdivisions 2c, 22; 290.0671, subdivision 1; 290.0681, subdivision
10; 290.0682, by adding subdivisions; 290.993; 290A.03, subdivision 3; 297A.71,
subdivision 52; 297A.75, subdivisions 1, 2, 3; 297A.99, subdivision 2; 297F.09,
subdivision 10; 297G.09, subdivision 9; 469.1763, subdivisions 2, 3, 4; 477A.03,
subdivision 2b; 477A.30; Laws 1998, chapter 389, article 8, section 43, as amended;
Laws 2003, chapter 127, article 10, section 31, subdivision 1, as amended; Laws
2006, chapter 259, article 11, section 3, as amended; Laws 2008, chapter 366,
article 7, section 17; Laws 2011, First Special Session chapter 7, article 4, section
14; Laws 2014, chapter 308, article 6, section 12, subdivision 2; Laws 2017, First
Special Session chapter 1, article 3, section 26; Laws 2019, First Special Session
chapter 6, article 6, section 25; Laws 2021, First Special Session chapter 14, article
8, sections 5; 7; proposing coding for new law in Minnesota Statutes, chapters
240A; 290; 477A; proposing coding for new law as Minnesota Statutes, chapter
428B; repealing Minnesota Statutes 2020, sections 6.91; 290.0674, subdivision
2a; 290A.03, subdivisions 9, 11; 290A.04, subdivisions 2a, 5; 290A.23, subdivision
1; 327C.01, subdivision 13; 327C.16; 477A.011, subdivisions 30a, 38, 42, 45;
477A.013, subdivision 13; 477B.02, subdivision 4; 477B.03, subdivision 6;
Minnesota Statutes 2021 Supplement, section 290.0111.

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

ARTICLE 1

FEDERAL CONFORMITY

Section 1.

Minnesota Statutes 2020, section 289A.02, subdivision 7, 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
31, 2018 deleted text end new text begin November 15, 2021 new 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 2021 Supplement, section 289A.08, subdivision 7, 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" 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, deleted text begin and deleted text end 17, new text begin and 19, new text end 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, deleted text begin subdivision deleted text end new text begin
subdivisions new text end 14 new text begin and 31 new text end . 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 begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2021.
new text end

Sec. 3.

Minnesota Statutes 2021 Supplement, section 290.01, subdivision 19, 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 31, 2018 deleted text end new text begin
November 15, 2021 new text end , applies for taxable years beginning after December 31, 1996 deleted text begin , except
the sections of federal law in section 290.0111 shall also apply deleted text end .

(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. 4.

Minnesota Statutes 2021 Supplement, section 290.01, subdivision 31, 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
31, 2018, except the sections of federal law in section 290.0111 shall also apply deleted text end new text begin November
15, 2021 new 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. 5.

Minnesota Statutes 2020, section 290.0131, is amended by adding a subdivision
to read:

new text begin Subd. 19. new text end

new text begin Meal expenses. new text end

new text begin The amount of meal expenses in excess of the 50 percent
limitation under section 274(n)(1) of the Internal Revenue Code allowed under subsection
(n), paragraph (2), subparagraph (D), of that section is an addition.
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, 2021.
new text end

Sec. 6.

Minnesota Statutes 2020, section 290.0132, subdivision 18, is amended to read:

Subd. 18.

Net operating losses.

new text begin (a) new text end The amount of the net operating loss allowed under
section 290.095, subdivision 11, paragraph (c), is a subtraction.

new text begin (b) The unused portion of a net operating loss carryover under section 290.095,
subdivision 11, paragraph (d), is a subtraction. The subtraction is the lesser of:
new text end

new text begin (1) the amount carried into the taxable year minus any subtraction made under this
section for prior taxable years; or
new text end

new text begin (2) 80 percent of Minnesota taxable net income in a single taxable year and determined
without regard to this 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, 2021.
new text end

Sec. 7.

Minnesota Statutes 2020, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 31. new text end

new text begin Delayed business interest. new text end

new text begin (a) For each of the five taxable years beginning
after December 31, 2021, there is allowed a subtraction equal to one-fifth of the adjustment
amount, to the extent not already deducted, for the exclusion under section 16, subdivision
2, clause (10), due to the Coronavirus Aid, Relief and Economic Security Act, Public Law
116-136, section 2306.
new text end

new text begin (b) This subdivision expires for taxable years beginning after December 31, 2026.
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, 2021.
new text end

Sec. 8.

Minnesota Statutes 2020, section 290.0133, is amended by adding a subdivision
to read:

new text begin Subd. 15. new text end

new text begin Meal expenses. new text end

new text begin The amount of meal expenses in excess of the 50 percent
limitation under section 274(n)(1) of the Internal Revenue Code allowed under section
274(n)(2)(D) of the Internal Revenue Code is an addition.
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, 2021.
new text end

Sec. 9.

Minnesota Statutes 2020, section 290.0134, is amended by adding a subdivision
to read:

new text begin Subd. 20. new text end

new text begin Delayed business interest. new text end

new text begin (a) For each of the five taxable years beginning
after December 31, 2021, there is allowed a subtraction equal to one-fifth of the adjustment
amount, to the extent not already deducted, for the exclusion under section 16, subdivision
2, clause (10), due to the Coronavirus Aid, Relief and Economic Security Act, Public Law
116-136, section 2306.
new text end

new text begin (b) This subdivision expires for taxable years beginning after December 31, 2026.
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, 2021.
new text end

Sec. 10.

Minnesota Statutes 2021 Supplement, section 290.06, subdivision 2c, 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 and deleted text end
17, new text begin and 19, 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, deleted text begin and deleted text end 27, new text begin and 31, 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 and deleted text end
17, new text begin and 19, 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, deleted text begin and deleted text end
27, new text begin and 31, 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 for taxable years beginning after December
31, 2021.
new text end

Sec. 11.

Minnesota Statutes 2020, section 290.091, subdivision 2, 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)(2) 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, deleted text begin and deleted text end 16 new text begin , and
19 new text end ;

(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, and 26 to deleted text begin 29 deleted text end new text begin 33 new text end ;

(v) the amount of the net operating loss allowed under section 290.095, subdivision 11,
deleted text begin paragraph deleted text end new text begin paragraphs new text end (c) new text begin and (d) new text end ; 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, 2021.
new text end

Sec. 12.

Minnesota Statutes 2020, section 290.095, subdivision 11, is amended to read:

Subd. 11.

Carryback or carryover adjustments.

(a) Except as provided in paragraph
(c), for individuals, estates, and trusts the amount of a net operating loss that may be carried
back or carried over shall be the same dollar amount allowable in the determination of
federal taxable income, provided that, notwithstanding any other provision, estates and
trusts must apply the following adjustments to the amount of the net operating loss that may
be carried back or carried over:

(1) Nonassignable income or losses as required by section 290.17.

(2) Deductions not allocable to Minnesota under section 290.17.

(b) The net operating loss carryback or carryover applied as a deduction in the taxable
year to which the net operating loss is carried back or carried over shall be equal to the net
operating loss carryback or carryover applied in the taxable year in arriving at federal taxable
income provided that trusts and estates must apply the following modifications:

(1) Increase the amount of carryback or carryover applied in the taxable year by the
amount of losses and interest, taxes and other expenses not assignable or allowable to
Minnesota incurred in the taxable year.

(2) Decrease the amount of carryback or carryover applied in the taxable year by the
amount of income not assignable to Minnesota earned in the taxable year. For estates and
trusts, the net operating loss carryback or carryover to the next consecutive taxable year
shall be the net operating loss carryback or carryover as calculated in clause (b) less the
amount applied in the earlier taxable year(s). No additional net operating loss carryback or
carryover shall be allowed to estates and trusts if the entire amount has been used to offset
Minnesota income in a year earlier than was possible on the federal return. However, if a
net operating loss carryback or carryover was allowed to offset federal income in a year
earlier than was possible on the Minnesota return, an estate or trust shall still be allowed to
offset Minnesota income but only if the loss was assignable to Minnesota in the year the
loss occurred.

(c) This paragraph does not apply to eligible small businesses that make a valid election
to carry back their losses for federal purposes under section 172(b)(1)(H) of the Internal
Revenue Code as amended through March 31, 2009.

(1) A net operating loss of an individual, estate, or trust that is allowed under this
subdivision and for which the taxpayer elects to carry back for more than two years under
section 172(b)(1)(H) of the Internal Revenue Code is a net operating loss carryback to each
of the two taxable years preceding the loss, and unused portions may be carried forward for
20 taxable years after the loss.

(2) The entire amount of the net operating loss for any taxable year must be carried to
the earliest of the taxable years to which the loss may be carried. The portion of the loss
which may be carried to each of the other taxable years is the excess, if any, of the amount
of the loss over the greater of the taxable net income or alternative minimum taxable income
for each of the taxable years to which the loss may be carried.

new text begin (d) For net operating loss carryovers or carrybacks arising in taxable years beginning
after December 31, 2017, and before December 31, 2020, a net operating loss carryover or
carryback is allowed as provided in the Internal Revenue Code as amended through December
31, 2018, as follows:
new text end

new text begin (1) the entire amount of the net operating loss, to the extent not already deducted, must
be carried to the earliest taxable year and any unused portion may be carried forward for
20 taxable years after the loss; and
new text end

new text begin (2) the portion of the loss which may be carried to each of the other taxable years is the
excess, if any, of the amount of the loss over the greater of the taxable net income or
alternative minimum taxable income for each of the taxable years to which the loss may be
carried.
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, 2017, and before December 31, 2020.
new text end

Sec. 13.

Minnesota Statutes 2021 Supplement, section 290.993, is amended to read:

290.993 SPECIAL LIMITED ADJUSTMENT.

new text begin Subdivision 1. new text end

new text begin Tax year 2018. new text end

(a) For an individual, estate, or trust, or a partnership
that elects to file a composite return under section 289A.08, subdivision 7, for taxable years
beginning after December 31, 2017, and before January 1, 2019, the following special rules
apply:

(1) an individual income taxpayer may: (i) take the standard deduction; or (ii) make an
election under section 63(e) of the Internal Revenue Code to itemize, for Minnesota individual
income tax purposes, regardless of the choice made on their federal return; and

(2) there is an adjustment to tax equal to the difference between the tax calculated under
this chapter using the Internal Revenue Code as amended through December 16, 2016, and
the tax calculated under this chapter using the Internal Revenue Code amended through
December 31, 2018, before the application of credits. The end result must be zero additional
tax due or refund.

(b) The adjustment in deleted text begin paragraph (a), clause (2), deleted text end new text begin this subdivision new text end does not apply to any
changes due to sections 11012, 13101, 13201, 13202, 13203, 13204, 13205, 13207, 13301,
13302, 13303, 13313, 13502, 13503, 13801, 14101, 14102, 14211 through 14215, and
14501 of Public Law 115-97; and section 40411 of Public Law 115-123.

new text begin Subd. 2. new text end

new text begin Tax years prior to 2022. new text end

new text begin (a) For all taxpayers, including an entity that elects
to file a composite return under section 289A.08, subdivision 7, and an entity that elects to
pay the pass-through entity tax under section 289A.08, subdivision 7a, for taxable years
beginning after December 31, 2016, and before January 1, 2022, the provisions in this
subdivision apply.
new text end

new text begin (b) There is an adjustment to tax equal to the difference between the amount calculated
and reported under this chapter incorporating the Internal Revenue Code as amended through
Laws 2021, First Special Session chapter 14, and the amount calculated under this chapter
incorporating the Internal Revenue Code as amended through November 15, 2021. For
taxable years beginning before January 1, 2022, the end result of incorporating the Internal
Revenue Code as amended through November 15, 2021, must be zero additional tax due
or refund, except as provided in paragraph (c).
new text end

new text begin (c) The adjustment does not apply to changes due to:
new text end

new text begin (1) the Taxpayer Certainty and Disaster Relief Act of 2020, Public Law 116-260, section
114, exclusion of gross income of discharge of qualified principal residence indebtedness;
new text end

new text begin (2) the Taxpayer Certainty and Disaster Relief Act of 2020, Public Law 116-260, section
304(b), special rules for disaster-related personal casualty losses;
new text end

new text begin (3) the COVID-related Tax Relief Act of 2020, Public Law 116-260, section 278,
paragraphs (a) and (d), clarification of tax treatment of certain loan forgiveness and other
business financial assistance;
new text end

new text begin (4) the American Rescue Plan Act, Public Law 117-2, section 9672, tax treatment of
targeted EIDL advances;
new text end

new text begin (5) the American Rescue Plan Act, Public Law 117-2, section 9673, tax treatment of
restaurant revitalization grants; and
new text end

new text begin (6) the American Rescue Plan Act, Public Law 117-2, section 9675, modification of
treatment of student loan forgiveness.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
before January 1, 2022.
new text end

Sec. 14.

Minnesota Statutes 2020, section 290A.03, subdivision 15, 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 31, 2018 deleted text end new text begin November 15, 2021 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property tax refunds based on property
taxes payable in 2023 and rent paid in 2022 and thereafter.
new text end

Sec. 15.

Minnesota Statutes 2020, section 291.005, subdivision 1, 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 31, 2018 deleted text end new text begin November 15, 2021 new 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. 16. new text begin NONCONFORMITY ADJUSTMENT.
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) For an individual, estate, or trust:
new text end

new text begin (1) "subtraction" has the meaning given in Minnesota Statutes, section 290.0132,
subdivision 1, and the rules in that subdivision apply for this section; and
new text end

new text begin (2) "addition" has the meaning given in Minnesota Statutes, section 290.0131, subdivision
1, and the rules in that subdivision apply for this section.
new text end

new text begin (c) For a corporation other than an S corporation:
new text end

new text begin (1) "subtraction" has the meaning given in Minnesota Statutes, section 290.0134,
subdivision 1, and the rules in that subdivision apply for this section; and
new text end

new text begin (2) "addition" has the meaning given in Minnesota Statutes, section 290.0133, subdivision
1, and the rules in that subdivision apply for this section.
new text end

new text begin (d) "Pass-through entity" means an entity that is not subject to the tax imposed under
section 290.02, including but not limited to S corporations, partnerships, estates, and trusts
other than grantor trusts.
new text end

new text begin (e) The definitions in Minnesota Statutes, section 290.01, apply for this section.
new text end

new text begin Subd. 2. new text end

new text begin Calculation of nonconformity adjustment new text end

new text begin A taxpayer's nonconformity
adjustment equals the difference between adjusted gross income, as defined under section
62 of the Internal Revenue Code for individuals, and federal taxable income as defined
under section 63 of the Internal Revenue Code for all other taxpayers incorporating the
Internal Revenue Code as amended through Laws 2021, First Special Session chapter 14,
and the amount calculated under this chapter incorporating the Internal Revenue Code as
amended through November 15, 2021, but does not include impacts to state tax credits. The
nonconformity adjustment is an addition or subtraction to net income but does not include
the following federal law changes:
new text end

new text begin (1) Taxpayer Certainty and Disaster Tax Relief Act of 2019, Public Law 116-94, section
104, deduction of qualified tuition and related expenses;
new text end

new text begin (2) Taxpayer Certainty and Disaster Tax Relief Act of 2019, Public Law 116-94, section
203, employee retention credit for employers affected by qualified disasters;
new text end

new text begin (3) Families First Coronavirus Response Act, Public Law 116-127, section 7001, payroll
credit for required paid sick leave;
new text end

new text begin (4) Families First Coronavirus Response Act, Public Law 116-127, section 7003, payroll
credit for required paid family leave;
new text end

new text begin (5) Coronavirus Aid, Relief and Economic Security Act, Public Law 116-136, section
2204, allowance of partial above the line deduction for charitable contributions;
new text end

new text begin (6) Coronavirus Aid, Relief and Economic Security Act, Public Law 116-136, section
2205(a), modification of limitations on charitable contributions during 2020;
new text end

new text begin (7) Coronavirus Aid, Relief and Economic Security Act, Public Law 116-136, section
2301, employee retention credit for employers subject to closure due to COVID-19;
new text end

new text begin (8) Coronavirus Aid, Relief and Economic Security Act, Public Law 116-136, section
2303, modifications for net operating losses;
new text end

new text begin (9) Coronavirus Aid, Relief and Economic Security Act, Public Law 116-136, section
2304, modification of limitation on losses for taxpayers other than corporations;
new text end

new text begin (10) Coronavirus Aid, Relief and Economic Security Act, Public Law 116-136, section
2306, limitation on business interest;
new text end

new text begin (11) Taxpayer Certainty and Disaster Tax Relief Act of 2020, Public Law 116-260,
section 207, extension and modification of employee retention and rehiring credit;
new text end

new text begin (12) Taxpayer Certainty and Disaster Tax Relief Act of 2020, Public Law 116-260,
section 210, temporary allowance of full deduction for business meals;
new text end

new text begin (13) Taxpayer Certainty and Disaster Tax Relief Act of 2020, Public Law 116-260,
section 212, certain charitable contributions by nonitemizers;
new text end

new text begin (14) Taxpayer Certainty and Disaster Tax Relief Act of 2020, Public Law 116-260,
section 213, modification of limitations on charitable contributions;
new text end

new text begin (15) Taxpayer Certainty and Disaster Tax Relief Act of 2020, Public Law 116-260,
section 303, employee retention credit for employers affected by qualified disasters;
new text end

new text begin (16) Taxpayer Certainty and Disaster Tax Relief Act of 2020, Public Law 116-260,
section 304(a), special rules for qualified disaster relief contributions;
new text end

new text begin (17) American Rescue Plan Act, Public Law 117-2, section 9501(b), preserving health
benefits for workers;
new text end

new text begin (18) American Rescue Plan Act, Public Law 117-2, section 9631, refundability and
enhancement of child and dependent care tax credit;
new text end

new text begin (19) American Rescue Plan Act, Public Law 117-2, section 9641, payroll sick and family
leave credits;
new text end

new text begin (20) American Rescue Plan Act, Public Law 117-2, section 9651, extension of employee
retention credit; and
new text end

new text begin (21) any changes excluded from the special limited adjustment under section 290.993,
subdivision 2, paragraph (c).
new text end

new text begin Subd. 3. new text end

new text begin Timing of adjustment for pass-through entities. new text end

new text begin Partners, shareholders, or
beneficiaries who file their returns on a calendar year basis, and who received an addition
or subtraction from a pass-through entity filing their return on a fiscal year basis, must make
the addition or subtraction under this section in the taxable year it is received as required
for federal income tax purposes.
new text end

new text begin Subd. 4. new text end

new text begin Special limited adjustment addition; individuals, estates, and trusts. new text end

new text begin For
an individual, estate, or trust, the amount of a nonconformity adjustment under subdivision
2 that increases net income for the taxable year is an addition.
new text end

new text begin Subd. 5. new text end

new text begin Special limited adjustment subtraction; individuals, estates, and trusts. new text end

new text begin For
an individual, estate, or trust, the amount of a nonconformity adjustment under subdivision
2 that decreases net income for the taxable year is a subtraction.
new text end

new text begin Subd. 6. new text end

new text begin Special limited adjustment addition; C corporations. new text end

new text begin For a corporation other
than an S corporation, the amount of a nonconformity adjustment under subdivision 2 that
increases net income for the taxable year is an addition.
new text end

new text begin Subd. 7. new text end

new text begin Special limited adjustment subtraction; individuals, estates, and trusts. new text end

new text begin For
a corporation other than an S corporation, the amount of a nonconformity adjustment under
subdivision 2 that decreases net income for the taxable year is a subtraction.
new text end

new text begin Subd. 8. new text end

new text begin Nonresident apportionment; alternative minimum tax. new text end

new text begin (a) The commissioner
of revenue must apply each of the subtractions and additions in this section when calculating
the following amounts:
new text end

new text begin (1) the percentage under Minnesota Statutes, section 290.06, subdivision 2c, paragraph
(e);
new text end

new text begin (2) a taxpayer's alternative minimum taxable income under Minnesota Statutes, section
290.091.
new text end

new text begin (b) The commissioner of revenue must consider each of the subtractions and additions
in this section when calculating "income" as defined in Minnesota Statutes, section 289A.08.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin (a) Subdivisions 1 to 7 are effective for taxable years beginning
after December 31, 2021 and before January 1, 2023, except for a pass-through entity
covered by subdivision 3, subdivisions 1 to 7 are effective retroactively for the taxable years
the addition or subtraction is required in that subdivision.
new text end

new text begin (b) Subdivision 8 is effective retroactively for any taxable year in which a taxpayer had
an addition or a subtraction under this section.
new text end

Sec. 17. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2021 Supplement, section 290.0111, 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, except
the changes incorporated by federal changes are effective retroactively at the same time as
the changes were effective for federal purposes.
new text end

ARTICLE 2

INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES

Section 1.

Minnesota Statutes 2020, 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 new text begin , or a limited liability company owned by
an individual, new text end 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) 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) 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.

new text begin (g) "Limited liability company" means a family farm limited liability company, an
authorized farm limited liability company, or other limited liability company authorized to
engage in farming and own, acquire, or otherwise obtain an interest in agricultural land
under section 500.24.
new text end

deleted text begin (g) deleted text end new text begin (h) new text end "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.

deleted text begin (h) deleted text end new text begin (i) new text end "Resident" has the meaning given in section 290.01, subdivision 7.

deleted text begin (i) deleted text end new text begin (j) new text end "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 EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2021.
new text end

Sec. 2.

Minnesota Statutes 2020, 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) five percent of the lesser of the sale price or the fair market value of the agricultural
asset, up to a maximum of $32,000;

(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) Notwithstanding subdivision 1, paragraph (c), for purposes of the credit for the sale
of an agricultural asset under paragraph (a), clause (1), the family member definitional
exclusions in subdivision 1, paragraph (c), clauses (4) and (5), do not apply.
new text end

new text begin (g) For a qualifying sale to a family member to qualify for the credit under paragraph
(a), clause (1), the sale price of the agricultural asset must equal or exceed the assessed
value of the asset under chapter 273 as of the date of the sale. If there is no assessed value,
the sale price must equal or exceed 80 percent of the fair market value of the asset as of the
date of the sale.
new text end

new text begin (h) For the purposes of this section, "qualifying 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 asset; or
new text end

new text begin (2) a partner, member, shareholder, or trustee of the owner of the agricultural asset.
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, 2021.
new text end

Sec. 3.

Minnesota Statutes 2020, 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 new text begin :
new text end

new text begin (1) new text end $5,000,000 for taxable years beginning after December 31, 2017, and before January
1, 2019 deleted text begin , and must not allocate more than deleted text end new text begin ;
new text end

new text begin (2) new text end $6,000,000 for taxable years beginning after December 31, 2018 new text begin , and before January
1, 2022; and
new text end

new text begin (3) $5,700,000 for taxable years beginning after December 31, 2021 new text end .

new text begin (d) new 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 (1) and (2), have first priority. 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 (e) $300,000 in fiscal year 2023 and $300,000 in fiscal year 2024 are appropriated from
the general fund to the Rural Finance Authority to develop an online application system
and administer the credits under this section. The base for the appropriation is $0 in fiscal
year 2025 and later.
new text end

new text begin (f) To encourage socially disadvantaged farmers and ranchers to apply for and receive
credits under this section, the authority must promote the availability of this credit to socially
disadvantaged farmers and ranchers, and must provide application assistance targeted to
socially disadvantaged farmers and ranchers. For the purposes of this section, "socially
disadvantaged farmer or rancher" has the meaning given in United States Code, title 7,
section 2279(a)(5).
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, 2021.
new text end

Sec. 4.

Minnesota Statutes 2021 Supplement, section 116J.8737, subdivision 5, is amended
to read:

Subd. 5.

Credit allowed.

(a) A qualified investor or qualified fund is eligible for a credit
equal to 25 percent of the qualified investment in a qualified small business. Investments
made by a pass-through entity qualify for a credit only if the entity is a qualified fund. The
commissioner must not allocate to qualified investors or qualified funds more than the dollar
amount in credits allowed for the taxable years listed in paragraph (i). For each taxable year,
50 percent must be allocated to credits for qualified investments in qualified greater
Minnesota businesses and minority-owned, women-owned, or veteran-owned qualified
small businesses in Minnesota. Any portion of a taxable year's credits that is reserved for
qualified investments in greater Minnesota businesses and minority-owned, women-owned,
or veteran-owned qualified small businesses in Minnesota that is not allocated by September
30 of the taxable year is available for allocation to other credit applications beginning on
October 1. Any portion of a taxable year's credits that is not allocated by the commissioner
does not cancel and may be carried forward to subsequent taxable years until all credits
have been allocated.

(b) The commissioner may not allocate more than a total maximum amount in credits
for a taxable year to a qualified investor for the investor's cumulative qualified investments
as an individual qualified investor and as an investor in a qualified fund; for married couples
filing joint returns the maximum is $250,000, and for all other filers the maximum is
$125,000. The commissioner may not allocate more than a total of $1,000,000 in credits
over all taxable years for qualified investments in any one qualified small business.

(c) The commissioner may not allocate a credit to a qualified investor either as an
individual qualified investor or as an investor in a qualified fund if, at the time the investment
is proposed:

(1) the investor is an officer or principal of the qualified small business; or

(2) the investor, either individually or in combination with one or more members of the
investor's family, owns, controls, or holds the power to vote 20 percent or more of the
outstanding securities of the qualified small business.

A member of the family of an individual disqualified by this paragraph is not eligible for a
credit under this section. For a married couple filing a joint return, the limitations in this
paragraph apply collectively to the investor and spouse. For purposes of determining the
ownership interest of an investor under this paragraph, the rules under section 267(c) and
267(e) of the Internal Revenue Code apply.

(d) Applications for tax credits must be made available on the department's website by
November 1 of the preceding year.

(e) Qualified investors and qualified funds must apply to the commissioner for tax credits.
Tax credits must be allocated to qualified investors or qualified funds in the order that the
tax credit request applications are filed with the department. The commissioner must approve
or reject tax credit request applications within 15 days of receiving the application. The
investment specified in the application must be made within 60 days of the allocation of
the credits. If the investment is not made within 60 days, the credit allocation is canceled
and available for reallocation. A qualified investor or qualified fund that fails to invest as
specified in the application, within 60 days of allocation of the credits, must notify the
commissioner of the failure to invest within five business days of the expiration of the
60-day investment period.

(f) All tax credit request applications filed with the department on the same day must
be treated as having been filed contemporaneously. If two or more qualified investors or
qualified funds file tax credit request applications on the same day, and the aggregate amount
of credit allocation claims exceeds the aggregate limit of credits under this section or the
lesser amount of credits that remain unallocated on that day, then the credits must be allocated
among the qualified investors or qualified funds who filed on that day on a pro rata basis
with respect to the amounts claimed. The pro rata allocation for any one qualified investor
or qualified fund is the product obtained by multiplying a fraction, the numerator of which
is the amount of the credit allocation claim filed on behalf of a qualified investor and the
denominator of which is the total of all credit allocation claims filed on behalf of all
applicants on that day, by the amount of credits that remain unallocated on that day for the
taxable year.

(g) A qualified investor or qualified fund, or a qualified small business acting on their
behalf, must notify the commissioner when an investment for which credits were allocated
has been made, and the taxable year in which the investment was made. A qualified fund
must also provide the commissioner with a statement indicating the amount invested by
each investor in the qualified fund based on each investor's share of the assets of the qualified
fund at the time of the qualified investment. After receiving notification that the investment
was made, the commissioner must issue credit certificates for the taxable year in which the
investment was made to the qualified investor or, for an investment made by a qualified
fund, to each qualified investor who is an investor in the fund. The certificate must state
that the credit is subject to revocation if the qualified investor or qualified fund does not
hold the investment in the qualified small business for at least three years, consisting of the
calendar year in which the investment was made and the two following years. The three-year
holding period does not apply if:

(1) the investment by the qualified investor or qualified fund becomes worthless before
the end of the three-year period;

(2) 80 percent or more of the assets of the qualified small business is sold before the end
of the three-year period;

(3) the qualified small business is sold before the end of the three-year period;

(4) the qualified small business's common stock begins trading on a public exchange
before the end of the three-year period; or

(5) the qualified investor dies before the end of the three-year period.

(h) The commissioner must notify the commissioner of revenue of credit certificates
issued under this section.

(i) The credit allowed under this subdivision is effective as follows:

(1) $10,000,000 for taxable years beginning after December 31, 2020, and before January
1, 2022; and

(2) deleted text begin $5,000,000 deleted text end new text begin $12,000,000 new text end for taxable years beginning after December 31, 2021, and
before January 1, 2023.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2021.
new text end

Sec. 5.

Minnesota Statutes 2021 Supplement, 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 year deleted text end new text begin a
consecutive twelve-month period beginning when expenditures are first paid in Minnesota new 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 retroactively for taxable years beginning
after December 31, 2021.
new text end

Sec. 6.

Minnesota Statutes 2021 Supplement, section 289A.08, subdivision 7a, 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 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 deleted text begin both deleted text end a resident deleted text begin and deleted text end new text begin qualifying owner of an entity 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 new text end
nonresident qualifying owner new text begin or the income of a qualifying owner of an entity taxed as an
S corporation including a qualified subchapter S subsidiary organized under section
1361(b)(3)(B) of the Internal Revenue Code new text end is allocated and assigned to this state as provided
for nonresident partners and shareholders under sections 290.17, 290.191, and 290.20;

(2) "qualifying entity" means a partnership, limited liability company new text begin taxed as a
partnership or S corporation new text end , or S corporation including a qualified subchapter S subsidiary
organized under section 1361(b)(3)(B) of the Internal Revenue Code. Qualifying entity deleted text begin does
deleted text end deleted text begin not deleted text end new text begin may new text end include a partnership, limited liability company, or corporation that has a deleted text begin partnership,
limited liability company other than a disregarded entity, or deleted text end corporation as a partner, member,
or shareholder new text begin , provided those entities are excluded from the qualifying entity's tax return;
the entity is taxed as a partnership, limited liability company, or S corporation; and is not
a publicly traded partnership, as defined in section 7704 of the Internal Revenue Code, as
amended through January 1, 2021 new text end ; and

(3) "qualifying owner" means:

(i) a resident or nonresident individual new text begin trust new text end or estate that is a partner, member, or
shareholder of a qualifying entity; deleted text begin or
deleted text end

(ii) deleted text begin a resident or nonresident trust that is a shareholder of a qualifying entity that is an
S corporation deleted text end new text begin an entity taxed as a partnership under the Internal Revenue Code; 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, in which the taxes of a
qualifying owner are limited under section 164(b)(6)(B) of the Internal Revenue Code, 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;

(2) may only be made by qualifying owners who collectively hold more than a 50 percent
ownership interest in the qualifying entity;

(3) is binding on all qualifying owners who have an ownership interest in the qualifying
entity; and

(4) 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.

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. 7.

Minnesota Statutes 2021 Supplement, 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 required deleted 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. 8.

Minnesota Statutes 2020, section 290.0131, is amended by adding a subdivision
to read:

new text begin Subd. 20. new text end

new text begin Dependent flexible spending accounts. new text end

new text begin For a taxpayer who claims the credit
under section 290.067, or for a married taxpayer filing a separate return whose spouse claims
the credit under that section, the amount of dependent care assistance that is excluded from
gross income under section 129 of the Internal Revenue Code is an addition.
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, 2021.
new text end

Sec. 9.

Minnesota Statutes 2020, section 290.0132, subdivision 21, is amended to read:

Subd. 21.

Military service pension; retirement pay.

new text begin (a) new text end To the extent included in
federal adjusted gross income, compensation received from a pension or other retirement
pay from the federal government for service in the military deleted text begin , as deleted text end new text begin is a subtraction. Only the
following amounts may be subtracted under this subdivision:
new text end

new text begin (1) compensation new text end computed under United States Code, title 10, sections 1401 to 1414,
1447 to 1455, and 12733 deleted text begin , is a subtraction. deleted text end new text begin ;
new text end

new text begin (2) the total amount of a federal employee retirement system pension under United States
Code, title 5, chapter 84, multiplied by the taxpayer's military service ratio; and
new text end

new text begin (3) the total amount of a civil service retirement system pension under United States
Code, title 5, chapter 83, subchapter III, multiplied by the taxpayer's military service ratio.
new text end

new text begin (b) new text end The subtraction is limited to individuals who do not claim the credit under section
290.0677.

new text begin (c) For purposes of this subdivision, "military service ratio" means:
new text end

new text begin (1) in the case of a federal employee retirement system pension, the years of service
credited to the taxpayer for military service under United States Code, title 5, section 8411,
divided by the total service credited to the taxpayer under that section; and
new text end

new text begin (2) in the case of a civil service retirement system pension, the years of service credited
to the taxpayer for military service under United States Code, title 5, section 8322, divided
by the total service credited to the taxpayer under that section.
new text end

new text begin (d) For purposes of calculating the ratio under paragraph (b), the commissioner must
consider the number of full years and months credited to the taxpayer, excluding any
fractional part of a month, if any.
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.
new text end

Sec. 10.

Minnesota Statutes 2020, 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. The deleted text end new text begin taxpayer is allowed a new text end subtraction deleted text begin equals deleted text end new text begin equal to new text end the new text begin greater
of the simplified subtraction determined under paragraph (b) or the alternate subtraction
determined under paragraphs (c), (d), and (e).
new text end

new text begin (b) A taxpayer's simplified subtraction equals the amount of taxable Social Security
benefits. For a taxpayer with adjusted gross income above the phaseout threshold, the
subtraction is reduced by ten percent for each $4,000 of adjusted gross income, or fraction
thereof, in excess of the threshold. The phaseout threshold equals:
new text end

new text begin (1) $75,000 for a married taxpayer filing a joint return or surviving spouse;
new text end

new text begin (2) $58,600 for a single or head of household taxpayer; or
new text end

new text begin (3) half the amount allowed under clause (1) for a married taxpayer filing a separate
return.
new text end

new text begin (c) A taxpayer's alternate subtraction equals the new text end lesser of taxable Social Security benefits
or a maximum subtraction subject to the limits under paragraphs deleted text begin (b), (c), and deleted text end (d) new text begin , (e), and
(f) new text end .

deleted text begin (b) deleted text end new text begin (d) 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 $5,150 deleted text end new text begin $5,450 new text end . The maximum subtraction is reduced
by 20 percent of provisional income over deleted text begin $78,180 deleted text end new text begin $82,770 new text end . In no case is the subtraction
less than zero.

deleted text begin (c) deleted text end new text begin (e) 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 $4,020 deleted text end new text begin $4,260 new text end . The maximum subtraction is reduced by 20 percent of
provisional income over deleted text begin $61,080 deleted text end new text begin $64,670 new text end . In no case is the subtraction less than zero.

deleted text begin (d) deleted text end new text begin (f) 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 (g) 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 (h) new text end The commissioner shall adjust the maximum subtraction and threshold amounts
in paragraphs (b) to deleted text begin (d) deleted text end new text begin (f) new text end as provided in section 270C.22. The statutory year is taxable
year deleted text begin 2019 deleted text end new text begin 2022 new text end . The deleted text begin maximum subtraction and deleted text end new text begin phaseout new text end 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, 2021.
new text end

Sec. 11.

Minnesota Statutes 2020, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 32. new text end

new text begin Emergency assistance for postsecondary student grants. new text end

new text begin (a) An emergency
grant for postsecondary students is a subtraction.
new text end

new text begin (b) For the purposes of this subdivision, "emergency grant for postsecondary students"
means an emergency grant to a student of an eligible institution, as defined in section
136A.103, to meet the financial needs of a student that could result in the student not
completing the term or their program, including but not limited to grants provided under
Laws 2021, First Special Session chapter 2, article 1, section 2, subdivision 24.
new text end

new text begin (c) This subdivision expires for taxable years beginning after December 31, 2029.
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, 2021, and before January 1, 2030.
new text end

Sec. 12.

Minnesota Statutes 2020, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 33. new text end

new text begin Workforce incentive fund grant payments. new text end

new text begin (a) The amount of workforce
incentive grants received by an eligible worker under section 256.4778 is a subtraction.
new text end

new text begin (b) This subdivision expires for taxable years beginning after December 31, 2029.
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, 2021, and before January 1, 2030.
new text end

Sec. 13.

Minnesota Statutes 2021 Supplement, 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, 2021.
new text end

Sec. 14.

Minnesota Statutes 2020, section 290.067, is amended to read:

290.067 deleted text begin DEPENDENT deleted text end new text begin GREAT START CHILD CARE AND DEPENDENT new text end 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 deleted text begin 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 deleted text end new text begin the taxpayer's eligible
dependent care expenses, as determined under subdivisions 1a and 1b, multiplied by the
taxpayer's credit percentage, as determined under subdivision 1c new text end .

deleted text begin (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.
deleted text end

deleted text begin (c) If a married couple:
deleted text end

deleted text begin (1) has a child who has not attained the age of one year at the close of the taxable year;
deleted text end

deleted text begin (2) files a joint tax return for the taxable year; and
deleted text end

deleted text begin (3) 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.
deleted text end

deleted text begin (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:
deleted text end

deleted text begin (1) the name, address, and taxpayer identification number of the person are included on
the return claiming the credit; or
deleted text end

deleted text begin (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.
deleted text end

deleted text begin 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.
deleted text end

deleted text begin (e) deleted text end new text begin (b) new text end In the case of a nonresident, part-year resident, or a person who has earned income
not subject to tax under this chapter deleted text begin including earned income excluded pursuant to section
290.0132, subdivision 10, deleted text end the credit determined under deleted text begin section 21 of the Internal Revenue
Code deleted text end new text begin this section new text end must be allocated deleted text begin 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 deleted text end new text begin using the percentage calculated in section 290.06,
subdivision 2c, paragraph (e) new text end .

new text begin (c) For the purposes of this section, the following terms have the meanings given:
new text end

new text begin (1) "employment-related expenses" has the meaning given in section 21(b)(2) of the
Internal Revenue Code;
new text end

new text begin (2) "qualifying individual" has the meaning given in section 21(b)(1) 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; and
new text end

new text begin (3) "young child" means a qualifying individual who had not attained the age of five by
December 31 of the taxable year.
new text end

deleted text begin (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."
deleted text end

deleted text begin (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."
deleted text end

deleted text begin (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.
deleted text end

new text begin Subd. 1a. new text end

new text begin Eligible dependent care expenses. new text end

new text begin (a) A taxpayer's eligible dependent care
expenses equals the amount of employment-related expenses incurred by the taxable year,
subject to the limitations in paragraphs (b) and (c).
new text end

new text begin (b) Except as provided in subdivision 1b, a taxpayer's eligible dependent care expenses
are limited to:
new text end

new text begin (1) $3,000 if there was one qualifying individual with respect to the taxpayer; or
new text end

new text begin (2) $6,000 if there were two or more qualifying individuals with respect to the taxpayer.
new text end

new text begin Subd. 1b. new text end

new text begin Special rules for tax years 2022 to 2028. new text end

new text begin For taxable years beginning after
December 31, 2021, and before January 1, 2029, for a taxpayer with a young child, the limit
in paragraph (b) is increased as follows:
new text end

new text begin (1) for a taxpayer with one young child with respect to the taxpayer, the limit is increased
by $3,000;
new text end

new text begin (2) for a taxpayer with two young children with respect to the taxpayer, the limit is
increased by $6,000; or
new text end

new text begin (3) for a taxpayer with three or more young children with respect to the taxpayer, the
limit is increased by $9,000.
new text end

new text begin Subd. 1c. new text end

new text begin Credit percentage. new text end

new text begin (a) The credit percentage equals 50 percent, subject to
the reductions in paragraphs (b) and (c).
new text end

new text begin (b) A taxpayer's credit percentage is reduced by one percentage point for each $2,000,
or fraction thereof, by which the taxpayer's adjusted gross income exceeds $125,000, until
the credit percentage equals 20 percent.
new text end

new text begin (c) For a taxpayer with adjusted gross income in excess of $400,000, the credit percentage
equals 20 percent, reduced by one percentage point for each $2,000, or fraction thereof, by
which the taxpayer's adjusted gross income exceeds $400,000.
new text end

new text begin (d) For a married taxpayer filing a separate return, the credit percentage must be calculated
under paragraphs (a) to (c), except the adjusted gross income thresholds are one-half the
amounts for other filers, as adjusted for inflation under subdivision 2b.
new text end

Subd. 2b.

Inflation adjustment.

The commissioner shall annually adjust the dollar
amount of the income threshold at which the deleted text begin maximum deleted text end credit new text begin percentage new text end begins to be
reduced under subdivision deleted text begin 1 deleted text end new text begin 1c new text end as provided in section 270C.22. The statutory year is taxable
year deleted text begin 2019 deleted text end new text begin 2022 new text end .

new text begin Subd. 2c. new text end

new text begin Deemed expenses. new text end

new text begin (a) 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. 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.
new text end

new text begin (b) If a married couple:
new text end

new text begin (1) has a child who has not attained the age of one year at the close of the taxable year;
and
new text end

new text begin (2) does not participate in a dependent care assistance program as defined in section 129
of the Internal Revenue Code; then in lieu of the actual employment-related expenses paid
for that child under or the deemed amount under paragraph (a), the amount deemed to be
the employment-related expense paid for that child equals the lesser of:
new text end

new text begin (i) the combined earned income of the couple; or
new text end

new text begin (ii) the amount of the maximum limit for one qualified individual under subdivision 1a,
as increased by subdivision 1b.
new text end

new text begin 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.
new text end

new text begin Subd. 2d. new text end

new text begin Identifying information required. new text end

new text begin (a) No credit is allowed for any amount
paid to any person unless:
new text end

new text begin (1) the name, address, and taxpayer identification number of the person are included on
the return claiming the credit; or
new text end

new text begin (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.
new text end

new text begin (b) The rule in section 21(e)(10) of the Internal Revenue Code applies for the credit
under this section.
new text end

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 An amount sufficient 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 Subd. 5. new text end

new text begin Employment-related expenses. new text end

new text begin For the purposes of determining
employment-related expenses, the provisions of sections 21(d) and 21(e)(6) of the Internal
Revenue Code apply.
new text end

new text begin Subd. 6. new text end

new text begin Rules for married couples filing separate returns. new text end

new text begin A married taxpayer filing
a separate return may claim the credit under this section, but only one spouse may claim
the credit.
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, 2021.
new text end

Sec. 15.

Minnesota Statutes 2021 Supplement, section 290.0671, subdivision 1, is amended
to read:

Subdivision 1.

Credit allowed.

(a) An individual who is a resident of Minnesota is
allowed a credit against the tax imposed by this chapter equal to a percentage of earned
income. 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 19, but not attained
age 65 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 Code deleted text begin . deleted text end new text begin ;
and
new text end

new text begin (3) the requirements of section 32(m) of the Internal Revenue Code do not apply.
new text end

(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.

(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.

(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.

(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.

(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, including income excluded under section 290.0132,
subdivision 10, 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.

(h) For the purposes of this section, the phaseout threshold equals:

(1) $14,570 for married taxpayers filing joint returns with no qualifying children;

(2) $8,730 for all other taxpayers with no qualifying children;

(3) $28,610 for married taxpayers filing joint returns with one qualifying child;

(4) $22,770 for all other taxpayers with one qualifying child;

(5) $32,840 for married taxpayers filing joint returns with two qualifying children;

(6) $27,000 for all other taxpayers with two qualifying children;

(7) $33,140 for married taxpayers filing joint returns with three or more qualifying
children; and

(8) $27,300 for all other taxpayers with three or more qualifying children.

(i) 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2021.
new text end

Sec. 16.

Minnesota Statutes 2020, section 290.0674, subdivision 2, is amended to read:

Subd. 2.

Limitations.

(a) For claimants with new text begin adjusted gross new text end income not greater than
deleted text begin $33,500 deleted text end new text begin $70,000 new text end , the maximum credit allowed for a family is $1,000 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 household deleted text end new text begin adjusted gross new text end income over deleted text begin $33,500 deleted text end new text begin $70,000 new 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 household deleted text end new text begin adjusted gross new text end income over deleted text begin $33,500 deleted text end new text begin $70,000 new text end ,
but in no case is the credit less than zero.

(b) In the case of a married claimant, a credit is not allowed unless a joint income tax
return is filed.

(c) 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).

new text begin (d) The commissioner shall annually adjust the household income limitation in paragraph
(a) as provided in section 270C.22. The statutory year is 2022.
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, 2021.
new text end

Sec. 17.

Minnesota Statutes 2020, section 290.0681, subdivision 2, is amended to read:

Subd. 2.

Credit or grant allowed; certified historic structure.

(a) A credit is allowed
against the tax imposed under this chapter equal to not more than 100 percent of the credit
allowed under section 47(a) of the Internal Revenue Code for a project. deleted text begin The credit is payable
in five equal yearly installments beginning with the year the project is placed in service. deleted text end
new text begin Notwithstanding the provisions of section 47(a) of the Internal Revenue Code that require
the federal credit to be allocated ratably over a five-year period, the full amount of the credit
under this section is allowed in the taxable year in which the qualified rehabilitated building
is placed in service. new text end To qualify for the credit:

(1) the project must receive Part 3 certification and be placed in service during the taxable
year; and

(2) the taxpayer must be allowed the federal credit and be issued a credit certificate for
the taxable year as provided in subdivision 4.

(b) The commissioner of administration may pay a grant in lieu of the credit. The grant
equals 90 percent of the credit that would be allowed for the project. The grant is payable
deleted text begin in five equal yearly installments beginning with deleted text end new text begin in new text end the year the project is placed in service.

(c) In lieu of the credit under paragraph (a), an insurance company may claim a credit
against the insurance premiums tax imposed under chapter 297I.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for credit certificates issued after June
30, 2022, and applies retroactively for applications for allocation certificates submitted after
December 31, 2017.
new text end

Sec. 18.

Minnesota Statutes 2020, section 290.0681, subdivision 3, is amended to read:

Subd. 3.

Applications; allocations.

(a) To qualify for a credit or grant under this section,
the developer of a project must apply to the office before the rehabilitation begins. The
application must contain the information and be in the form prescribed by the office. The
office may collect a fee for application of up to 0.5 percent of qualified rehabilitation
expenditures, up to $40,000, based on estimated qualified rehabilitation expenditures, to
offset costs associated with personnel and administrative expenses related to administering
the credit and preparing the economic impact report in subdivision 9. Application fees are
deposited in the account. The application must indicate if the application is for a credit or
a grant in lieu of the credit or a combination of the two and designate the taxpayer qualifying
for the credit or the recipient of the grant.

(b) Upon approving an application for credit, the office shall issue allocation certificates
that:

(1) verify eligibility for the credit or grant;

(2) state the amount of credit or grant anticipated with the project, with the credit amount
equal to 100 percent and the grant amount equal to 90 percent of the federal credit anticipated
in the application;

(3) state that the credit or grant allowed may increase or decrease if the federal credit
the project receives at the time it is placed in service is different than the amount anticipated
at the time the allocation certificate is issued; and

(4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer or
grant recipient is entitled to receive deleted text begin one-fifth of deleted text end the total amount of either the credit or the
grant at the time the project is placed in service, provided that date is within three calendar
years following the issuance of the allocation certificate.

(c) The office, in consultation with the commissioner, shall determine if the project is
eligible for a credit or a grant under this section and must notify the developer in writing
of its determination. Eligibility for the credit is subject to review and audit by the
commissioner.

(d) The federal credit recapture and repayment requirements under section 50 of the
Internal Revenue Code do not apply to the credit allowed under this section.

(e) Any decision of the office under paragraph (c) may be challenged as a contested case
under chapter 14. The contested case proceeding must be initiated within 45 days of the
date of written notification by the office.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for credit certificates issued after June
30, 2022, and applies retroactively for applications for allocation certificates submitted after
December 31, 2017.
new text end

Sec. 19.

Minnesota Statutes 2020, section 290.0681, subdivision 4, is amended to read:

Subd. 4.

Credit certificates; grants.

(a)(1) The developer of a project for which the
office has issued an allocation certificate must notify the office when the project is placed
in service. Upon verifying that the project has been placed in service, and was allowed a
federal credit, the office must issue a credit certificate to the taxpayer designated in the
application or must issue a grant to the recipient designated in the application. The credit
certificate must state the amount of the credit.

(2) The credit amount equals the federal credit allowed for the project.

(3) The grant amount equals 90 percent of the federal credit allowed for the project.

(b) The recipient of a credit certificate may assign the certificate to another taxpayer
before the deleted text begin first one-fifth deleted text end payment is claimed, which is then allowed the credit under this
section or section 297I.20, subdivision 3. An assignment is not valid unless the assignee
notifies the commissioner within 30 days of the date that the assignment is made. The
commissioner shall prescribe the forms necessary for notifying the commissioner of the
assignment of a credit certificate and for claiming a credit by assignment.

(c) Credits passed through to partners, members, shareholders, or owners pursuant to
subdivision 5 are not an assignment of a credit certificate under this subdivision.

(d) A grant agreement between the office and the recipient of a grant may allow the
grant to be issued to another individual or entity.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for credit certificates issued after June
30, 2022, and applies retroactively for applications for allocation certificates submitted after
December 31, 2017.
new text end

Sec. 20.

Minnesota Statutes 2021 Supplement, section 290.0681, subdivision 10, is amended
to read:

Subd. 10.

Sunset.

This section expires after fiscal year deleted text begin 2022 deleted text end new text begin 2030 new text end , except that the office's
authority to issue credit certificates under subdivision 4 based on allocation certificates that
were issued before deleted text begin fiscal year 2023 deleted text end new text begin 2031 new text end remains in effect through deleted text begin 2025 deleted text end new text begin calendar year 2033 new text end ,
and the reporting requirements in subdivision 9 remain in effect through the year following
the year in which all allocation certificates have either been canceled or resulted in issuance
of credit certificates, or deleted text begin 2026 deleted text end new text begin 2034 new text end , whichever is earlier.

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 2021 Supplement, 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, 2021.
new text end

Sec. 22.

Minnesota Statutes 2021 Supplement, section 290.0682, is amended by adding
a subdivision to read:

new text begin Subd. 4. new text end

new text begin Special rules for tax years 2022 to 2028. new text end

new text begin For taxable years beginning after
December 31, 2021, and before January 1, 2029, the maximum credit under subdivision 2,
paragraph (b), clause (4), is $1,400.
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, 2021, and before January 1, 2029.
new text end

Sec. 23.

Minnesota Statutes 2020, 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 144.2151 deleted text end new text begin stillbirth new 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 Code deleted text end .

(b) For a deleted text begin nonresident or deleted 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. 24.

Minnesota Statutes 2020, 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. 25.

Minnesota Statutes 2021 Supplement, 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; deleted text begin or
deleted text end

(9) veterans disability compensation paid under title 38 of the United States Code new text begin ; and
new text end

new text begin (10) workforce incentive grant payments under section 256.4778 new text end .

(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 or rent paid, 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 beginning with refunds based on rent
paid in 2022 and property taxes payable in 2023.
new text end

Sec. 26. new text begin SPECIAL PROVISIONS FOR CERTAIN ALLOCATION CERTIFICATES;
CREDIT FOR HISTORIC STRUCTURE REHABILITATION.
new text end

new text begin For an allocation certificate issued pursuant to an application submitted after December
31, 2017, for a project receiving a credit certificate issued after June 30, 2022, the allocation
certificate is deemed to state that the taxpayer or grant recipient is entitled to receive the
full amount of the credit or grant at the time the project is placed in service.
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. new text begin TEMPORARY INDIVIDUAL INCOME TAX SUBTRACTION;
UNEMPLOYMENT INSURANCE BENEFITS.
new text end

new text begin (a) For the purposes of this section the following terms having the meanings given:
new text end

new text begin (1) "adjusted gross income" has the meaning given in Minnesota Statutes, section 290.01,
subdivision 21a;
new text end

new text begin (2) "Internal Revenue Code" has the meaning given in Minnesota Statutes, section
290.01, subdivision 31;
new text end

new text begin (3) "subtraction" has the meaning given in Minnesota Statutes, section 290.0132,
subdivision 1;
new text end

new text begin (4) "taxable year" has the meaning given in Minnesota Statutes, section 290.01,
subdivision 9; and
new text end

new text begin (5) "unemployment compensation" has the meaning given in section 85(b) of the Internal
Revenue Code.
new text end

new text begin (b) For taxable years beginning after December 31, 2020, and before January 1, 2022,
an individual taxpayer is allowed a subtraction equal to the amount of unemployment
compensation received in the taxable year, subject to the limit in paragraphs (c) and (d).
new text end

new text begin (c) The subtraction is limited to $10,200, except for a married taxpayer filing a joint
return the subtraction is limited to $10,200 in unemployment compensation received by
each spouse.
new text end

new text begin (d) The limit in paragraph (c) is reduced by five percent of adjusted gross income in
excess of:
new text end

new text begin (1) $150,000 for a joint return; or
new text end

new text begin (2) $75,000 for all other filers.
new text end

new text begin In no case is the limit less than $0.
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. 28. new text begin INCOME TAX REBATES FOR PARENTS OF QUALIFYING CHILDREN.
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, "qualifying child" has
the meaning given in section 24(c) of the Internal Revenue Code, but disregarding section
9611(a)(i)(2) of Public Law 117-2.
new text end

new text begin (b) The definitions in Minnesota Statutes, section 290.01, apply to this section.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) An individual income taxpayer is allowed a credit against
the taxes imposed in Minnesota Statutes, sections 290.03 and 290.091. The credit equals
$325 multiplied by the number of individuals who were a qualifying child of the taxpayer
for the taxable year.
new text end

new text begin (b) The credit under this section is reduced by ten percent of adjusted gross income in
excess of:
new text end

new text begin (1) $140,000 for a married taxpayer filing a joint return; or
new text end

new text begin (2) $70,000 for all other filers.
new text end

new text begin Subd. 3. new text end

new text begin Part-year residents. new text end

new text begin For an individual who was a resident of Minnesota for
less than the entire taxable year, the credit equals the amount determined under subdivision
2 for their filing status, multiplied by the percentage determined pursuant to Minnesota
Statutes, section 290.06, subdivision 2c, paragraph (e).
new text end

new text begin Subd. 4. 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 liability for tax, 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 Subd. 5. new text end

new text begin Distribution of credit payments; filing process for taxpayers without tax
liability. new text end

new text begin (a) To the extent feasible, the commissioner of revenue must automatically adjust
the return of any taxpayer who filed a return for a taxable year in which the credit under
this section applies. If a taxpayer is eligible for a refund as a result of the credit under this
section, to the extent feasible, the commissioner must distribute the refund via direct deposit
to the taxpayer's bank account, check, or any other mechanism the commissioner deems
appropriate.
new text end

new text begin (b) The commissioner of revenue must establish a simplified filing process through
which a taxpayer who does not have an individual income tax filing requirement may file
a return for the taxable years in which the credit is available. 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 for the taxable year.
new text end

new text begin Subd. 6. new text end

new text begin Recapture of payments forbidden. new text end

new text begin The commissioner of revenue must not
apply, and must not certify to another agency to apply, a payment resulting from the credit
under this section to any unpaid tax or nontax debt owed by an individual.
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. 29. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2020, section 290.0674, subdivision 2a, 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 for taxable years beginning after December
31, 2021.
new text end

ARTICLE 3

SALES AND USE TAXES

Section 1.

Minnesota Statutes 2020, section 38.27, subdivision 4, is amended to read:

Subd. 4.

Use of a portion of county fair revenues.

A county agricultural society must
annually determine the amount of sales tax savings attributable to section 297A.70,
subdivision 21 deleted text begin . If the county agricultural society owns its own fairgrounds, it deleted text end new text begin , and new text end must use
the amount equal to the sales tax savings to maintain, improve, or expand society-owned
buildings and facilities on the fairgrounds deleted text begin ; otherwise it must transfer this amount to the
owner of the fairgrounds. An owner that receives a transfer of money under this subdivision
must use the transferred amount to maintain, improve, and expand entity owned buildings
and facilities on the county fairgrounds deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
the most recent annual tax savings determined prior to enactment.
new text end

Sec. 2.

new text begin [240A.15] AMATEUR SPORTS ACCOUNT.
new text end

new text begin An amateur sports account is established in the special revenue fund and consists of
money deposited under section 297A.94, paragraph (k). Money in the account, including
interest, is appropriated to the commission for the promotion and development of amateur
sports as provided in section 240A.04. Money in the account does not cancel and is available
until spent.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2022.
new text end

Sec. 3.

Minnesota Statutes 2020, section 297A.61, subdivision 12, is amended to read:

Subd. 12.

Farm machinery.

(a) "Farm machinery" means new or used machinery,
equipment, implements, accessories, and contrivances used directly and principally in
agricultural production of tangible personal property intended to be sold ultimately at retail
including, but not limited to:

(1) machinery for the preparation, seeding, or cultivation of soil for growing agricultural
crops;

(2) barn cleaners, milking systems, grain dryers, feeding systems including stationary
feed bunks, new text begin fencing material, new text end and similar installations, whether or not the equipment is
installed by the seller and becomes part of the real property; and

(3) irrigation equipment sold for exclusively agricultural use, including pumps, pipe
fittings, valves, sprinklers, and other equipment necessary to the operation of an irrigation
system when sold as part of an irrigation system, whether or not the equipment is installed
by the seller and becomes part of the real property.

(b) Farm machinery does not include:

(1) repair or replacement parts;

(2) tools, shop equipment, grain bins, deleted text begin fencing material, deleted text end communication equipment, and
other farm supplies;

(3) motor vehicles taxed under chapter 297B;

(4) snowmobiles or snow blowers;

(5) lawn mowers except those used in the production of sod for sale, or garden-type
tractors or garden tillers; or

(6) machinery, equipment, implements, accessories, and contrivances used directly in
the production of horses not raised for slaughter, fur-bearing animals, or research animals.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after June 30, 2021.
new text end

Sec. 4.

Minnesota Statutes 2020, 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 as defined in Code of Federal Regulations,
title 26, section 301.7701.
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, 2022.
new text end

Sec. 5.

Minnesota Statutes 2020, section 297A.68, is amended by adding a subdivision to
read:

new text begin Subd. 35b. new text end

new text begin Fiber and conduit; broadband and Internet access. new text end

new text begin Fiber and conduit
purchased or leased for use directly by a broadband or Internet service provider, primarily
in the provision of broadband or Internet access services that are ultimately to be sold at
retail, are exempt.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after June 30, 2017.
new text end

Sec. 6.

Minnesota Statutes 2020, section 297A.68, is amended by adding a subdivision to
read:

new text begin Subd. 46. new text end

new text begin Food service establishment equipment. new text end

new text begin (a) The purpose of the exemption
provided by this subdivision is to create parity between the treatment of capital equipment
used in the manufacturing industry and food service equipment used for the production of
prepared food and beverages. The goal is to provide the same exemption for equipment
used by food service establishments in the production of prepared food and furnishing of
beverages, as is provided for capital equipment pursuant to subdivision 5.
new text end

new text begin (b) Food service equipment purchased or leased for use in this state by a food service
establishment in the production of prepared food or furnishing of beverages, up to the point
the prepared food or beverage is ready for delivery or service to the customer, is exempt.
new text end

new text begin (c) For purposes of this subdivision, the following terms have the meanings given:
new text end

new text begin (1) "catering service" means a business that prepares food and beverages for service in
support of an event with a predetermined guest list such as a reception, party, luncheon,
conference, ceremony, or trade show;
new text end

new text begin (2) "food service equipment" means machinery, equipment, fixtures, and supplies used
by a food service establishment that are integral to the production of prepared food or the
furnishing of beverages and that meet the standards imposed under Minnesota Rules, chapter
4626. Food service equipment:
new text end

new text begin (i) includes cooking utensils, serving utensils, ovens, grills, coolers, microwave ovens,
freezers, refrigerators and refrigerator stations, holding cabinets, deep fryers, condiment
stations, dishwashers, steamers, coffee machines, ice machines, water heaters, sinks, faucets,
food warmers and warming trays, tabletop chaffing equipment, buffets and buffet equipment,
self-service condiment equipment, self-service beverage equipment, beer dispensing systems,
equipment needed for bar service, and any other item that is integral to the production of
prepared food or the furnishing of beverages; and
new text end

new text begin (ii) excludes items used by customers such as linens, paper napkins, glasses, cups, mugs,
utensils, tables, and chairs. Also excluded are delivery vehicles or any motor vehicles
purchased by a food service establishment;
new text end

new text begin (3) "food service establishment" means a restaurant as defined in section 157.15,
subdivision 12, a mobile food unit as defined in section 157.15, subdivision 9, or a catering
service as defined in this paragraph;
new text end

new text begin (4) "furnishing of beverages" means the production of beverages, including alcoholic
beverages, by a bartender, server, caterer, or other person employed by a food service
establishment;
new text end

new text begin (5) "prepared food" has the meaning given in section 297A.61, subdivision 31; and
new text end

new text begin (6) "production" means an operation or series of operations where ingredients are changed
in form, composition, or condition that results in the creation of prepared food or a beverage.
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, 2022.
new text end

Sec. 7.

Minnesota Statutes 2020, section 297A.70, subdivision 21, is amended to read:

Subd. 21.

County agricultural society sales at county fairs.

new text begin (a) The following new text end sales
by a county agricultural society deleted text begin during a regularly scheduled county fair deleted text end are exempt deleted text begin . For
purposes of this subdivision, sales include deleted text end new text begin :
new text end

new text begin (1) new text end admissions to and parking at the county fairgrounds deleted text begin , deleted text end new text begin ;
new text end

new text begin (2) new text end admissions to separately ticketed events run by the county agricultural society deleted text begin , deleted text end new text begin ; new text end and

new text begin (3) new text end concessions and other sales made by employees or volunteers of the county
agricultural society on the county fairgrounds.

deleted text begin This deleted text end new text begin (b) The new text end exemption new text begin under paragraph (a) new text end does not apply to sales deleted text begin or deleted text end new text begin for new text end events deleted text begin by a
county agricultural society deleted text end held at a time other than at the time of the regularly scheduled
county fair, or events not held on the county fairgrounds.

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 2020, section 297A.71, subdivision 51, is amended to read:

Subd. 51.

Properties destroyed by fire.

(a) Building materials and supplies used or
consumed in, and equipment incorporated into, the construction or replacement of real
property affected by, and capital equipment to replace equipment destroyed in, the fire on
March 11, 2018, in the city of Mazeppa are exempt. The tax must be imposed and collected
as if the rate under section 297A.62, subdivision 1, applied and then refunded in the manner
provided in section 297A.75. For purposes of this subdivision, "capital equipment" includes
durable equipment used in a restaurant for food storage, preparation, and serving.

(b) The exemption under this subdivision applies to sales and purchases made after
March 11, 2018, and before January 1, deleted text begin 2022 deleted text end new text begin 2024 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from March 11, 2018.
new text end

Sec. 9.

Minnesota Statutes 2021 Supplement, section 297A.71, subdivision 52, is amended
to read:

Subd. 52.

Construction; certain local government facilities.

(a) Materials and supplies
used in and equipment incorporated into the construction, reconstruction, upgrade, expansion,
or remodeling of the following local government owned facilities are exempt:

(1) a new fire station, which includes firefighting, emergency management, public safety
training, and other public safety facilities in the city of Monticello if materials, supplies,
and equipment are purchased after January 31, 2019, and before January 1, 2022;

(2) a new fire station, which includes firefighting and public safety training facilities
and public safety facilities, in the city of Inver Grove Heights if materials, supplies, and
equipment are purchased after June 30, 2018, and before January 1, 2021;

(3) a fire station and police station, including access roads, lighting, sidewalks, and
utility components, on or adjacent to the property on which the fire station or police station
are located that are necessary for safe access to and use of those buildings, in the city of
Minnetonka if materials, supplies, and equipment are purchased after May 23, 2019, and
before January 1, 2022;

(4) the school building in Independent School District No. 414, Minneota, if materials,
supplies, and equipment are purchased after January 1, 2018, and before January 1, 2021;

(5) a fire station in the city of Mendota Heights, if materials, supplies, and equipment
are purchased after December 31, 2018, and before January 1, 2021; deleted text begin and
deleted text end

(6) a Dakota County law enforcement collaboration center, also known as the Safety
and Mental Health Alternative Response Training (SMART) Center, if materials, supplies,
and equipment are purchased after June 30, 2019, and before July 1, 2021 deleted text begin . deleted text end new text begin ;
new text end

new text begin (7) new construction, upgrades, and remodeling to the Itasca County courts and
courthouse in conjunction and coordination with the new construction of a correctional
facility, if materials, supplies, and equipment are purchased after April 30, 2021, and before
January 1, 2025;
new text end

new text begin (8) the North Metro Regional Public Safety Training Facility in Maple Grove, if materials,
supplies, and equipment are purchased after August 31, 2021, and before December 31,
2023; and
new text end

new text begin (9) the following projects in Wayzata if materials, supplies, and equipment are purchased
after March 31, 2020, and before January 1, 2025:
new text end

new text begin (i) expansion and remodeling of Depot Park;
new text end

new text begin (ii) construction of community docks for purposes of access from Lake Minnetonka;
new text end

new text begin (iii) construction of a lakeside boardwalk of approximately 1,500 lineal feet;
new text end

new text begin (iv) shoreline restoration, including installation of native plants, trees, and natural habitat;
new text end

new text begin (v) 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 (vi) 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 (vii) construction of a public plaza with a restroom, 9/11 memorial, interactive water
display, and gathering space;
new text end

new text begin (viii) construction of a regional multiuse trail; and
new text end

new text begin (ix) construction of railroad crossings.
new text end

(b) The tax must be imposed and collected as if the rate under section 297A.62,
subdivision 1, applied and then refunded in the manner provided in section 297A.75.

(c) The total refund for the project listed in paragraph (a), clause (3), must not exceed
$850,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made during the periods indicated in paragraph (a), clauses (7) to (9).
new text end

Sec. 10.

Minnesota Statutes 2020, section 297A.71, is amended by adding a subdivision
to read:

new text begin Subd. 54. new text end

new text begin Building materials; farm fencing material. new text end

new text begin Materials and supplies used or
consumed in, and equipment incorporated into, the construction or improvement of farm
fencing material that is not exempt under section 297A.61, subdivision 12, are exempt.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after June 30, 2021.
new text end

Sec. 11.

Minnesota Statutes 2020, section 297A.71, is amended by adding a subdivision
to read:

new text begin Subd. 55. new text end

new text begin Construction materials purchased by contractors; exemption for certain
entities. 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 the materials, supplies, and
equipment are purchased after June 30, 2021, and before January 1, 2023:
new text end

new text begin (1) school districts, as defined under section 297A.70, subdivision 2, paragraph (c);
new text end

new text begin (2) local governments, as defined under 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 section 297A.70, subdivision 2, paragraph (a), clause (3);
new text end

new text begin (4) county law libraries under chapter 134A and public libraries, regional public library
systems, and multicounty, multitype library systems, as defined in section 134.001;
new text end

new text begin (5) nonprofit groups, as defined under section 297A.70, subdivision 4;
new text end

new text begin (6) hospitals, outpatient surgical centers, and critical access dental providers, as defined
under section 297A.70, subdivision 7; and
new text end

new text begin (7) nursing homes and boarding care homes, as defined under 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 the materials, supplies, and equipment are
purchased after June 30, 2021, and before January 1, 2023:
new text end

new text begin (1) school districts, as defined under section 297A.70, subdivision 2, paragraph (c); or
new text end

new text begin (2) local governments, as defined under section 297A.70, subdivision 2, paragraph (d).
new text end

new text begin (c) The tax on purchases exempt under this subdivision must be imposed and collected
as if the rate under section 297A.62, subdivision 1, applied, and then refunded in the manner
provided in section 297A.75. Refunds for eligible purchases must not be issued after June
30, 2023.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after June 30, 2021, and before January 1, 2023.
new text end

Sec. 12.

Minnesota Statutes 2020, section 297A.71, is amended by adding a subdivision
to read:

new text begin Subd. 56. new text end

new text begin Construction materials purchased by contractors; exemption for certain
projects at the Minneapolis-St. Paul International Airport. 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 for the following projects
are exempt if purchased after June 30, 2021, and before January 1, 2023:
new text end

new text begin (1) security improvements to the rental automobile quick turnaround facility at Terminal
1;
new text end

new text begin (2) replacing air handling units at Terminal 1 and Terminal 2;
new text end

new text begin (3) improvements to the C concourse loading dock at Terminal 1;
new text end

new text begin (4) lighting upgrades to LED;
new text end

new text begin (5) restroom upgrades at Terminal 1;
new text end

new text begin (6) renovation of mechanical rooms in Terminal 1, a MAC storage facility, and a liquid
deicer storage facility;
new text end

new text begin (7) a new trades storage facility;
new text end

new text begin (8) a new liquid deicer storage facility; and
new text end

new text begin (9) Terminal 1 passenger arrivals and departures replacement, rehabilitation, and
operational improvements.
new text end

new text begin (b) The tax on purchases exempt under this subdivision must be imposed and collected
as if the rate under section 297A.62, subdivision 1, applied, and then refunded in the manner
provided in section 297A.75. Refunds for eligible purchases must not be made after June
30, 2023. The exemption allowed under this subdivision only applies to sales and purchases
for which an exemption is not claimed under subdivision 55.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after June 30, 2021, and before January 1, 2023.
new text end

Sec. 13.

Minnesota Statutes 2021 Supplement, section 297A.75, subdivision 1, is amended
to read:

Subdivision 1.

Tax collected.

The tax on the gross receipts from the sale of the following
exempt items must be imposed and collected as if the sale were taxable and the rate under
section 297A.62, subdivision 1, applied. The exempt items include:

(1) building materials for an agricultural processing facility exempt under section
297A.71, subdivision 13;

(2) building materials for mineral production facilities exempt under section 297A.71,
subdivision 14;

(3) building materials for correctional facilities under section 297A.71, subdivision 3;

(4) building materials used in a residence for veterans with a disability exempt under
section 297A.71, subdivision 11;

(5) elevators and building materials exempt under section 297A.71, subdivision 12;

(6) materials and supplies for qualified low-income housing under section 297A.71,
subdivision 23;

(7) materials, supplies, and equipment for municipal electric utility facilities under
section 297A.71, subdivision 35;

(8) equipment and materials used for the generation, transmission, and distribution of
electrical energy and an aerial camera package exempt under section 297A.68, subdivision
37;

(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph
(a), clause (10);

(10) materials, supplies, and equipment for construction or improvement of projects and
facilities under section 297A.71, subdivision 40;

(11) materials, supplies, and equipment for construction, improvement, or expansion of
a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision 45;

(12) enterprise information technology equipment and computer software for use in a
qualified data center exempt under section 297A.68, subdivision 42;

(13) materials, supplies, and equipment for qualifying capital projects under section
297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b);

(14) items purchased for use in providing critical access dental services exempt under
section 297A.70, subdivision 7, paragraph (c);

(15) items and services purchased under a business subsidy agreement for use or
consumption primarily in greater Minnesota exempt under section 297A.68, subdivision
44;

(16) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivisions 49; 50, paragraph (b); and 51;

(17) building materials, equipment, and supplies for qualifying capital projects under
section 297A.71, subdivision 52; deleted text begin and
deleted text end

(18) building materials, equipment, and supplies for constructing, remodeling, expanding,
or improving a fire station, police station, or related facilities exempt under section 297A.71,
subdivision 53 deleted text begin . deleted text end new text begin ;
new text end

new text begin (19) building construction or reconstruction materials, supplies, and equipment exempt
under section 297A.71, subdivision 55; and
new text end

new text begin (20) building construction or reconstruction materials, supplies, and equipment purchased
for qualifying projects at the Minneapolis-St. Paul International Airport under section
297A.71, subdivision 56.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after June 30, 2021.
new text end

Sec. 14.

Minnesota Statutes 2021 Supplement, section 297A.75, subdivision 2, is amended
to read:

Subd. 2.

Refund; eligible persons.

Upon application on forms prescribed by the
commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must
be paid to the applicant. Only the following persons may apply for the refund:

(1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;

(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;

(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
provided in United States Code, title 38, chapter 21;

(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
property;

(5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;

(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a
joint venture of municipal electric utilities;

(7) for subdivision 1, clauses (8), (11), (12), and (15), the owner of the qualifying
business;

(8) for subdivision 1, clauses (9), (10), (13), (17), and (18), the applicant must be the
governmental entity that owns or contracts for the project or facility; deleted text begin and
deleted text end

(9) for subdivision 1, clause (16), the applicant must be the owner or developer of the
building or project deleted text begin . deleted text end new text begin ;
new text end

new text begin (10) for subdivision 1, clause (19), the applicant must be the entity:
new text end

new text begin (i) listed in section 297A.71, subdivision 55, paragraph (a), that principally uses the
building or facility; or
new text end

new text begin (ii) listed in section 297A.71, subdivision 55, paragraph (b), that contracts with a
contractor, subcontractor, or builder for the public infrastructure project; and
new text end

new text begin (11) for subdivision 1, clause (20), the applicant must be an airport commission.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after June 30, 2021.
new text end

Sec. 15.

Minnesota Statutes 2021 Supplement, section 297A.75, subdivision 3, is amended
to read:

Subd. 3.

Application.

(a) The application must include sufficient information to permit
the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor,
or builder, under subdivision 1, clauses (3) to (13) or (15) to deleted text begin (18) deleted text end new text begin (20) new text end , the contractor,
subcontractor, or builder must furnish to the refund applicant a statement including the cost
of the exempt items and the taxes paid on the items unless otherwise specifically provided
by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to refunds under
this section.

(b) An applicant may not file more than two applications per calendar year for refunds
for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after June 30, 2021.
new text end

Sec. 16.

Minnesota Statutes 2020, section 297A.94, is amended to read:

297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section, the commissioner shall deposit the revenues,
including interest and penalties, derived from the taxes imposed by this chapter in the state
treasury and credit them to the general fund.

(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
account in the special revenue fund if:

(1) the taxes are derived from sales and use of property and services purchased for the
construction and operation of an agricultural resource project; and

(2) the purchase was made on or after the date on which a conditional commitment was
made for a loan guaranty for the project under section 41A.04, subdivision 3.

The commissioner of management and budget shall certify to the commissioner the date on
which the project received the conditional commitment. The amount deposited in the loan
guaranty account must be reduced by any refunds and by the costs incurred by the Department
of Revenue to administer and enforce the assessment and collection of the taxes.

(c) The commissioner shall deposit the revenues, including interest and penalties, derived
from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3,
paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:

(1) first to the general obligation special tax bond debt service account in each fiscal
year the amount required by section 16A.661, subdivision 3, paragraph (b); and

(2) after the requirements of clause (1) have been met, the balance to the general fund.

(d) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit
in the state treasury the revenues collected under section 297A.64, subdivision 1, including
interest and penalties and minus refunds, and credit them to the highway user tax distribution
fund.

(e) The commissioner shall deposit the revenues, including interest and penalties,
collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
general fund. By July 15 of each year the commissioner shall transfer to the highway user
tax distribution fund an amount equal to the excess fees collected under section 297A.64,
subdivision 5, for the previous calendar year.

(f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the deposit
of revenues under paragraph (d), the commissioner shall deposit into the state treasury and
credit to the highway user tax distribution fund an amount equal to the estimated revenues
derived from the tax rate imposed under section 297A.62, subdivision 1, on the lease or
rental for not more than 28 days of rental motor vehicles subject to section 297A.64. The
commissioner shall estimate the amount of sales tax revenue deposited under this paragraph
based on the amount of revenue deposited under paragraph (d).

(g) Starting after July 1, 2017, the commissioner shall deposit an amount of the
remittances monthly into the state treasury and credit them to the highway user tax
distribution fund as a portion of the estimated amount of taxes collected from the sale and
purchase of motor vehicle repair parts in that month. For the remittances between July 1,
2017, and June 30, 2019, the monthly deposit amount is $2,628,000. For remittances in
each subsequent fiscal year, the monthly deposit amount is $12,137,000. For purposes of
this paragraph, "motor vehicle" has the meaning given in section 297B.01, subdivision 11,
and "motor vehicle repair and replacement parts" includes (i) all parts, tires, accessories,
and equipment incorporated into or affixed to the motor vehicle as part of the motor vehicle
maintenance and repair, and (ii) paint, oil, and other fluids that remain on or in the motor
vehicle as part of the motor vehicle maintenance or repair. For purposes of this paragraph,
"tire" means any tire of the type used on highway vehicles, if wholly or partially made of
rubber and if marked according to federal regulations for highway use.

(h) 72.43 percent of the revenues, including interest and penalties, transmitted to the
commissioner under section 297A.65, must be deposited by the commissioner in the state
treasury as follows:

(1) 50 percent of the receipts must be deposited in the heritage enhancement account in
the game and fish fund, and may be spent only on activities that improve, enhance, or protect
fish and wildlife resources, including conservation, restoration, and enhancement of land,
water, and other natural resources of the state;

(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
be spent only for state parks and trails;

(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
be spent only on metropolitan park and trail grants;

(4) three percent of the receipts must be deposited in the natural resources fund, and
may be spent only on local trail grants; and

(5) two percent of the receipts must be deposited in the natural resources fund, and may
be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory,
and the Duluth Zoo.

(i) The revenue dedicated under paragraph (h) may not be used as a substitute for
traditional sources of funding for the purposes specified, but the dedicated revenue shall
supplement traditional sources of funding for those purposes. Land acquired with money
deposited in the game and fish fund under paragraph (h) must be open to public hunting
and fishing during the open season, except that in aquatic management areas or on lands
where angling easements have been acquired, fishing may be prohibited during certain times
of the year and hunting may be prohibited. At least 87 percent of the money deposited in
the game and fish fund for improvement, enhancement, or protection of fish and wildlife
resources under paragraph (h) must be allocated for field operations.

(j) The commissioner must deposit the revenues, including interest and penalties minus
any refunds, derived from the sale of items regulated under section 624.20, subdivision 1,
that may be sold to persons 18 years old or older and that are not prohibited from use by
the general public under section 624.21, in the state treasury and credit:

(1) 25 percent to the volunteer fire assistance grant account established under section
88.068;

(2) 25 percent to the fire safety account established under section 297I.06, subdivision
3; and

(3) the remainder to the general fund.

For purposes of this paragraph, the percentage of total sales and use tax revenue derived
from the sale of items regulated under section 624.20, subdivision 1, that are allowed to be
sold to persons 18 years old or older and are not prohibited from use by the general public
under section 624.21, is a set percentage of the total sales and use tax revenues collected in
the state, with the percentage determined under Laws 2017, First Special Session chapter
1, article 3, section 39.

new text begin (k) Beginning in 2023, by June 30, the commissioner shall deposit revenues, including
interest and penalties, derived from taxes on sales and purchases made at the National Sports
Center in Blaine, in the amateur sports account in the special revenue fund.
new text end

deleted text begin (k) deleted text end new text begin (l) new text end The revenues deposited under paragraphs (a) to deleted text begin (j) deleted text end new text begin (k) new text end do not include the revenues,
including interest and penalties, generated by the sales tax imposed under section 297A.62,
subdivision 1a, which must be deposited as provided under the Minnesota Constitution,
article XI, section 15.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2022.
new text end

Sec. 17.

Laws 2017, First Special Session chapter 1, article 3, section 26, the effective
date, is amended to read:

EFFECTIVE DATE.

This section is effective for sales and purchases made after June
30, 2017, and before July 1, deleted text begin 2027 deleted text end new text begin 2030 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 REFUNDS; FIBER AND CONDUIT.
new text end

new text begin Notwithstanding limitations on claims for refund under Minnesota Statutes, section
289A.40, requests for refunds of purchases exempt under Minnesota Statutes, section
297A.68, subdivision 35b, made after July 1, 2017, and before July 1, 2022, must be
submitted by December 31, 2022. Only the broadband or Internet service provider may
apply for a refund. The application must include sufficient information to permit the
commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor, or
builder, the contractor, subcontractor, or builder must furnish to the broadband or Internet
service provider a statement including the cost of the exempt items and the taxes paid on
the items. An amount sufficient to pay the refunds is appropriated to the commissioner from
the general fund. The provisions of Minnesota Statutes, section 297A.75, subdivision 4,
apply to refunds issued 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. 19. new text begin SPECIAL EXEMPTIONS; CONSTRUCTION SALES AND USE TAX.
new text end

new text begin (a) The following provisions of Minnesota Statutes, section 297A.71, subdivision 55,
do not apply to a special exemption:
new text end

new text begin (1) paragraph (a), limiting the exemption to purchases of materials, supplies, and
equipment after June 30, 2021, and before January 1, 2023;
new text end

new text begin (2) paragraph (b), limiting the exemption to purchases of materials, supplies, and
equipment after June 30, 2021, and before January 1, 2023; and
new text end

new text begin (3) paragraph (c), prohibiting refunds from being issued after June 30, 2023.
new text end

new text begin (b) Any provision of Minnesota Statutes, sections 297A.71, subdivision 55, and 297A.75,
subdivisions 1, 2, and 3, inconsistent with a provision in a special exemption, do not apply
to the special exemption.
new text end

new text begin (c) For purposes of this section, "special exemption" means one of the following
exemptions provided in this article:
new text end

new text begin (1) the exemption for Duluth Public Schools in section 21;
new text end

new text begin (2) the exemption for Ely Public Schools in section 23;
new text end

new text begin (3) the exemption for Hibbing Public Schools in section 24;
new text end

new text begin (4) the exemption for Rock Ridge Public Schools in section 25;
new text end

new text begin (5) the exemption for Chisholm Public Schools in section 20;
new text end

new text begin (6) the exemption for Nashwauk-Keewatin Public Schools in section 22;
new text end

new text begin (7) the exemption for Northland Learning Center in section 26;
new text end

new text begin (8) the exemption for Northern Lights Academy in section 27;
new text end

new text begin (9) the exemption for Itasca County in section 9;
new text end

new text begin (10) the exemption for Maple Grove in section 9;
new text end

new text begin (11) the exemption for Wayzata in section 9; and
new text end

new text begin (12) the exemption for the public infrastructure project at the Minneapolis-St. Paul
International Airport in section 12.
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 CHISHOLM 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 and renovation projects for Chisholm Elementary School,
Chisholm High School, and Vaughan Steffensrud School in Independent School District
No. 695, Chisholm Public Schools, are exempt from sales and use tax imposed under
Minnesota Statutes, chapter 297A, if materials, supplies, and equipment are purchased after
December 31, 2021, and before January 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). Refunds for eligible
purchases must not be issued until after June 30, 2022.
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, 2022, and
applies to sales and purchases made after December 31, 2021, and before January 1, 2025.
new text end

Sec. 21. new text begin DULUTH 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 an administrative building and a transportation facility
in Independent School District No. 709, Duluth Public Schools, are exempt from sales and
use tax imposed under Minnesota Statutes, chapter 297A, if materials, supplies, and
equipment are purchased after June 30, 2021, and before January 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). Refunds for eligible
purchases must not be issued until after June 30, 2022.
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. 22. new text begin NASHWAUK-KEEWATIN 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 a new school building and attached community wellness
center to replace Keewatin Elementary School and the Nashwauk High School in Independent
School District No. 319, Nashwauk-Keewatin Public Schools, are exempt from sales and
use tax imposed under Minnesota Statutes, chapter 297A, if materials, supplies, and
equipment are purchased after December 31, 2021, and before January 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). Refunds for eligible
purchases must not be issued until after June 30, 2022.
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, 2022, and
applies to sales and purchases made after December 31, 2021, and before January 1, 2025.
new text end

Sec. 23. 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
January 1, 2024:
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, 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, 2022.
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 January 1, 2024.
new text end

Sec. 24. 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 January 1, 2025:
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, 2022.
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 January 1, 2025.
new text end

Sec. 25. 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 January 1, 2024.
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, 2022.
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 January 1, 2024.
new text end

Sec. 26. new text begin NORTHLAND LEARNING CENTER; 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 renovation and addition to the James Madison Building for Northland
Learning Center, No. 6076, are exempt from sales and use tax imposed under Minnesota
Statutes, chapter 297A, if materials, supplies, and equipment are purchased after December
31, 2021, and before January 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). Refunds for eligible
purchases must not be issued until after June 30, 2022.
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, 2022, and
applies to sales and purchases made after December 31, 2021, and before January 1, 2025.
new text end

Sec. 27. new text begin NORTHERN LIGHTS ACADEMY; 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 building for special education cooperative No.
6096, Northern Lights Academy, are exempt from sales and use tax imposed under Minnesota
Statutes, chapter 297A, if materials, supplies, and equipment are purchased after December
31, 2021, and before January 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). Refunds for eligible
purchases must not be issued until after June 30, 2022.
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, 2022, and
applies to sales and purchases made after December 31, 2021, and before January 1, 2025.
new text end

ARTICLE 4

PROPERTY TAXES

Section 1.

Minnesota Statutes 2020, section 123B.595, subdivision 3, is amended to read:

Subd. 3.

Intermediate districts and other cooperative units.

new text begin (a) new text end Upon approval through
the adoption of a resolution by each member district school board of an intermediate district
or other cooperative deleted text begin units deleted text end new text begin unit new text end under section 123A.24, subdivision 2, new text begin or a joint powers
district under section 471.59, new text end and the approval of the commissioner of education, a school
district may include in its authority under this section a proportionate share of the long-term
maintenance costs of the intermediate district deleted text begin or deleted text end new text begin , new text end cooperative unit new text begin , or joint powers district new text end .
The cooperative unit new text begin or joint powers district new text end may issue bonds to finance the project costs
or levy for the costs deleted text begin , deleted text end using long-term maintenance revenue transferred from member districts
to make debt service payments or pay project costs new text begin or, for leased facilities, pay the portion
of lease costs attributable to the amortized cost of long-term facilities maintenance projects
completed by the landlord new text end . Authority under this subdivision is in addition to the authority
for individual district projects under subdivision 1.

new text begin (b) The resolution adopted under paragraph (a) may specify which member districts will
share the project costs under this subdivision, except that debt service payments for bonds
issued by a cooperative unit or joint powers district to finance long-term maintenance project
costs must be the responsibility of all member districts.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2024 and later.
new text end

Sec. 2.

Minnesota Statutes 2021 Supplement, section 126C.10, subdivision 2e, is amended
to read:

Subd. 2e.

Local optional revenue.

(a) For fiscal year 2021 and later, local optional
revenue for a school district equals the sum of the district's first tier local optional revenue
and second tier local optional revenue. A district's first tier local optional revenue equals
$300 times the adjusted pupil units of the district for that school year. A district's second
tier local optional revenue equals $424 times the adjusted pupil units of the district for that
school year.

(b) For fiscal year 2021 and later, a district's local optional levy equals the sum of the
first tier local optional levy and the second tier local optional levy.

(c) new text begin For fiscal years 2022 and 2023, new text end a district's first tier local optional levy equals the
district's first tier local optional revenue times the lesser of one or the ratio of the district's
referendum market value per resident pupil unit to $880,000. new text begin For fiscal year 2024 and later,
a district's first tier local optional levy equals the district's first tier local optional revenue
times the lesser of one or the ratio of the district's referendum market value per resident
pupil unit to 170 percent of the local optional revenue equalizing factor defined in paragraph
(d).
new text end

new text begin (d) A district's local optional revenue equalizing factor equals the quotient derived by
dividing the referendum market value of all school districts in the state for the year before
the year the levy is certified by the total number of resident pupil units in all school districts
in the state in the year before the year the levy is certified.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end For fiscal year 2022, a district's second tier local optional levy equals the district's
second tier local optional revenue times the lesser of one or the ratio of the district's
referendum market value per resident pupil unit to $510,000. For fiscal year 2023, a district's
second tier local optional levy equals the district's second tier local optional revenue times
the lesser of one or the ratio of the district's referendum market value per resident pupil unit
to $548,842. For fiscal year 2024 and later, a district's second tier local optional levy equals
the district's second tier local optional revenue times the lesser of one or the ratio of the
district's referendum market value per resident pupil unit to $510,000.

deleted text begin (e) deleted text end new text begin (f) new text end The local optional levy must be spread on referendum market value. A district
may levy less than the permitted amount.

deleted text begin (f) deleted text end new text begin (g) new text end A district's local optional aid equals its local optional revenue minus its local
optional levy. If a district's actual levy for first or second tier local optional revenue is less
than its maximum levy limit for that tier, its aid must be proportionately reduced.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2024 and later.
new text end

Sec. 3.

Minnesota Statutes 2020, section 126C.40, subdivision 1, is amended to read:

Subdivision 1.

To lease building or land.

(a) When an independent or a special school
district or a group of independent or special school districts finds it economically
advantageous to rent or lease a building or land for any instructional purposes or for school
storage or furniture repair, and it determines that the operating capital revenue authorized
under section 126C.10, subdivision 13, is insufficient for this purpose, it may apply to the
commissioner for permission to make an additional capital expenditure levy for this purpose.
An application for permission to levy under this subdivision must contain financial
justification for the proposed levy, the terms and conditions of the proposed lease, and a
description of the space to be leased and its proposed use.

(b) The criteria for approval of applications to levy under this subdivision must include:
the reasonableness of the price, the appropriateness of the space to the proposed activity,
the feasibility of transporting pupils to the leased building or land, conformity of the lease
to the laws and rules of the state of Minnesota, and the appropriateness of the proposed
lease to the space needs and the financial condition of the district. The commissioner must
not authorize a levy under this subdivision in an amount greater than the cost to the district
of renting or leasing a building or land for approved purposes. The proceeds of this levy
must not be used for custodial or other maintenance services. A district may not levy under
this subdivision for the purpose of leasing or renting a district-owned building or site to
itself.

(c) For agreements finalized after July 1, 1997, a district may not levy under this
subdivision for the purpose of leasing: (1) a newly constructed building used primarily for
regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
building addition or additions used primarily for regular kindergarten, elementary, or
secondary instruction that contains more than 20 percent of the square footage of the
previously existing building.

(d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
purpose of leasing or renting a district-owned building or site to itself only if the amount is
needed by the district to make payments required by a lease purchase agreement, installment
purchase agreement, or other deferred payments agreement authorized by law, and the levy
meets the requirements of paragraph (c). A levy authorized for a district by the commissioner
under this paragraph may be in the amount needed by the district to make payments required
by a lease purchase agreement, installment purchase agreement, or other deferred payments
agreement authorized by law, provided that any agreement include a provision giving the
school districts the right to terminate the agreement annually without penalty.

(e) The total levy under this subdivision for a district for any year must not exceed $212
times the adjusted pupil units for the fiscal year to which the levy is attributable.

(f) For agreements for which a review and comment have been submitted to the
Department of Education after April 1, 1998, the term "instructional purpose" as used in
this subdivision excludes expenditures on stadiums.

(g) The commissioner of education may authorize a school district to exceed the limit
in paragraph (e) if the school district petitions the commissioner for approval. The
commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
for not more than five years if the district meets the following criteria:

(1) the school district has been experiencing pupil enrollment growth in the preceding
five years;

(2) the purpose of the increased levy is in the long-term public interest;

(3) the purpose of the increased levy promotes colocation of government services; and

(4) the purpose of the increased levy is in the long-term interest of the district by avoiding
over construction of school facilities.

(h) A school district that is a member of an intermediate school district new text begin or other
cooperative unit under section 123A.24, subdivision 2, or a joint powers district under
section 471.59 new text end may include in its authority under this section the costs associated with leases
of administrative and classroom space for deleted text begin intermediate school district deleted text end programs new text begin of the
intermediate school district or other cooperative unit under section 123A.24, subdivision
2, or joint powers district under section 471.59 new text end . This authority must not exceed $65 times
the adjusted pupil units of the member districts. This authority is in addition to any other
authority authorized under this section. new text begin The intermediate school district, other cooperative
unit, or joint powers district may specify which member districts will levy for lease costs
under this paragraph.
new text end

(i) In addition to the allowable capital levies in paragraph (a), for taxes payable in 2012
to 2023, a district that is a member of the "Technology and Information Education Systems"
data processing joint board, that finds it economically advantageous to enter into a lease
agreement to finance improvements to a building and land for a group of school districts
or special school districts for staff development purposes, may levy for its portion of lease
costs attributed to the district within the total levy limit in paragraph (e). The total levy
authority under this paragraph shall not exceed $632,000.

(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the
purpose of leasing administrative space if the district can demonstrate to the satisfaction of
the commissioner that the lease cost for the administrative space is no greater than the lease
cost for instructional space that the district would otherwise lease. The commissioner must
deny this levy authority unless the district passes a resolution stating its intent to lease
instructional space under this section if the commissioner does not grant authority under
this paragraph. The resolution must also certify that the lease cost for administrative space
under this paragraph is no greater than the lease cost for the district's proposed instructional
lease.

new text begin (k) Notwithstanding paragraph (a), a district may levy under this subdivision for the
district's proportionate share of deferred maintenance expenditures for a district-owned
building or site leased to a cooperative unit under section 123A.24, subdivision 2, or a joint
powers district under section 471.59 for any instructional purposes or for school storage.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2024 and later.
new text end

Sec. 4.

Minnesota Statutes 2020, 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 which 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 or deleted text end new text begin , new text end repair new text begin , or manufacture new 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 exempt deleted 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 2023 through 2030, the net tax capacity of such property is
reduced by 50 percent if it is owned or operated by a city over 50,000 but under 150,000
in population according to the most recent federal census or 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 2023 through
2030, the net tax capacity of such property is reduced by 50 percent if it is owned or operated
by a city over 50,000 but under 150,000 in population according to the most recent federal
census or 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 2023.
new text end

Sec. 5.

Minnesota Statutes 2020, 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 a
parcel 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 the capacity of the systems are in aggregate over
one megawatt, 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 2023 and thereafter.
new text end

Sec. 6.

Minnesota Statutes 2020, 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. The exemption created by this subdivision expires with taxes
payable in deleted text begin 2024 deleted text end new text begin 2030 new text end .

new text begin (c) Property exempt under this section is exempt from the requirements of section
272.025.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2022.
new text end

Sec. 7.

Minnesota Statutes 2020, 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 (a) 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 organized 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 (b) The exemption created by this subdivision expires with taxes payable in 2030.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2023
and thereafter.
new text end

Sec. 8.

Minnesota Statutes 2020, section 272.02, is amended by adding a subdivision to
read:

new text begin Subd. 106. new text end

new text begin Energy storage systems. new text end

new text begin (a) Real or personal property consisting of an
energy storage system is exempt. For the purposes of this subdivision, "energy storage
system" has the meaning given in section 216B.2422, subdivision 1, paragraph (f). The land
on which the property is located remains taxable and must be classified as class 3a under
section 273.13, subdivision 24. The exemption created by this subdivision expires with
taxes payable in 2030.
new text end

new text begin (b) Any taxpayer requesting an exemption under this subdivision must file an application
with the commissioner of revenue. The commissioner must prescribe the content, format,
and manner of the application pursuant to section 270C.30, except that a "law administered
by the commissioner" includes the property tax laws. If an application is made by electronic
means, the taxpayer's signature is defined pursuant to section 270C.304, except that a "law
administered by the commissioner" includes the property tax laws.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2022.
For assessment year 2022, an exemption application under this section must be filed with
the commissioner of revenue by July 1, 2022.
new text end

Sec. 9.

Minnesota Statutes 2020, section 272.025, subdivision 1, is amended to read:

Subdivision 1.

Statement of exemption.

(a) Except in the case of property owned by
the state of Minnesota or any political subdivision thereof, a taxpayer claiming an exemption
from taxation on property described in section 272.02 must file a statement of exemption
with the assessor of the assessment district in which the property is located. By January 2,
2018, and each third year thereafter, the commissioner of revenue shall publish on its website
a list of the exemptions for which a taxpayer claiming an exemption must file a statement
of exemption. The commissioner's requirement that a taxpayer file a statement of exemption
pursuant to this subdivision shall not be considered a rule and is not subject to the
Administrative Procedure Act, chapter 14.

(b) A taxpayer claiming an exemption from taxation on property described in section
272.02, subdivision 10 new text begin or 106 new text end , must file a statement of exemption with the commissioner
of revenue, on or before February 15 of each year for which the taxpayer claims an
exemption.

(c) In case of sickness, absence or other disability or for good cause, the assessor or the
commissioner may extend the time for filing the statement of exemption for a period not to
exceed 60 days.

(d) The commissioner of revenue shall prescribe the content, format, and manner of the
statement of exemption pursuant to section 270C.30, except that a "law administered by
the commissioner" includes the property tax laws.

(e) If a statement is made by electronic means, the taxpayer's signature is defined pursuant
to section 270C.304, except that a "law administered by the commissioner" includes the
property tax laws.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2023
and thereafter.
new text end

Sec. 10.

Minnesota Statutes 2021 Supplement, section 272.0295, subdivision 2, is amended
to read:

Subd. 2.

Definitions.

(a) For the purposes of this section, the term "solar energy
generating system" means a set of devices whose primary purpose is to produce electricity
by means of any combination of collecting, transferring, or converting solar generated
energy.

(b) The total size of a solar energy generating system under this subdivision shall be
determined according to this paragraph. Unless the systems are interconnected with different
distribution systems, the nameplate capacity of a solar energy generating system shall be
combined with the nameplate capacity of any other solar energy generating system that:

(1) is constructed within the same 12-month period as the solar energy generating system;
and

(2) exhibits characteristics new text begin at the time of development new text end of being a single development,
including but not limited to ownership structure, an umbrella sales arrangement, shared
interconnection, revenue-sharing arrangements, and common debt or equity financing.

In the case of a dispute, the commissioner of commerce shall determine the total size of the
system and shall draw all reasonable inferences in favor of combining the systems. new text begin In
determining the total size of the system, the commissioner of commerce shall determine
that a solar energy generating system with an application for an interconnection agreement
submitted on or after September 25, 2015, pursuant to section 216B.1641, with the public
utility subject to section 116C.779, is considered to be a solar energy generating system
with a capacity of one megawatt alternating current or less and is exempt from the tax
imposed by this section.
new text end

For the purposes of making a determination under this paragraph, the original construction
date of an existing solar energy conversion system is not changed if the system is replaced,
repaired, or otherwise maintained or altered.

(c) In making a determination under paragraph (b), the commissioner of commerce may
determine that two solar energy generating systems are under common ownership when the
underlying ownership structure contains similar persons or entities, even if the ownership
shares differ between the two systems. Solar energy generating systems are not under
common ownership solely because the same person or entity provided equity financing for
the systems.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for reports filed beginning in 2023.
new text end

Sec. 11.

Minnesota Statutes 2021 Supplement, 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 22 new text begin unless
the unit meets the requirements of section 273.13, subdivision 25, paragraph (e), clause (2),
in which case the unit shall be classified as 4d(2) new 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 property taxes payable
in 2023 and thereafter.
new text end

Sec. 12.

Minnesota Statutes 2020, section 273.124, subdivision 3a, is amended to read:

Subd. 3a.

Manufactured home park cooperative.

(a) When a manufactured home park
is owned by a corporation or association organized under chapter 308A or 308B, and each
person who owns a share or shares in the corporation or association is entitled to occupy a
lot within the park, the corporation or association may claim homestead treatment for the
park. Each lot must be designated by legal description or number, and each lot is limited to
not more than one-half acre of land.

(b) The manufactured home park shall be entitled to homestead treatment if all of the
following criteria are met:

(1) the occupant or the cooperative corporation or association is paying the ad valorem
property taxes and any special assessments levied against the land and structure either
directly, or indirectly through dues to the corporation or association; and

(2) the corporation or association organized under chapter 308A or 308B is wholly
owned by persons having a right to occupy a lot owned by the corporation or association.

(c) A charitable corporation, organized under the laws of Minnesota with no outstanding
stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) tax-exempt status,
qualifies for homestead treatment with respect to a manufactured home park if its members
hold residential participation warrants entitling them to occupy a lot in the manufactured
home park.

(d) "Homestead treatment" under this subdivision means the classification rate provided
for class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause
(5), deleted text begin item (ii), deleted text end and the homestead market value exclusion under section 273.13, subdivision
35, does not apply.

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. 13.

Minnesota Statutes 2020, 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 tax 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 2022 and thereafter.
new text end

Sec. 14.

Minnesota Statutes 2021 Supplement, 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 tax 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 tax 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 tax 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 tax 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 tax identification number new text end of each relative
occupying the property and the name and Social Security number new text begin or individual tax
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 tax
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 2022 and thereafter.
new text end

Sec. 15.

Minnesota Statutes 2020, 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
tax 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 retroactively for homestead applications
filed in 2022 and thereafter.
new text end

Sec. 16.

Minnesota Statutes 2020, 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 numbers new text begin , individual tax 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 retroactively for homestead applications
filed in 2022 and thereafter.
new text end

Sec. 17.

Minnesota Statutes 2020, 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 tax 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 retroactively for homestead applications
filed in 2022 and thereafter.
new text end

Sec. 18.

Minnesota Statutes 2021 Supplement, 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, deleted text begin or deleted text end parent new text begin , grandparent,
stepparent, stepchild, uncle, aunt, nephew, or niece new text end 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, LeSueur,
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 numbers new text begin or individual tax identification numbers new 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 2022 and thereafter.
new text end

Sec. 19.

Minnesota Statutes 2020, 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 tax 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 2022 and thereafter.
new text end

Sec. 20.

Minnesota Statutes 2021 Supplement, section 273.13, subdivision 23, is amended
to read:

Subd. 23.

Class 2.

(a) An agricultural homestead consists of class 2a agricultural land
that is homesteaded, along with any class 2b rural vacant land that is contiguous to the class
2a land under the same ownership. The market value of the house and garage and immediately
surrounding one acre of land has the same classification rates as class 1a or 1b property
under subdivision 22. The value of the remaining land including improvements up to the
first tier valuation limit of agricultural homestead property has a classification rate of 0.5
percent of market value. The remaining property over the first tier has a classification rate
of one percent of market value. For purposes of this subdivision, the "first tier valuation
limit of agricultural homestead property" and "first tier" means the limit certified under
section 273.11, subdivision 23.

(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that
are agricultural land and buildings. Class 2a property has a classification rate of one percent
of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a
property must also include any property that would otherwise be classified as 2b, but is
interspersed with class 2a property, including but not limited to sloughs, wooded wind
shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement,
and other similar land that is impractical for the assessor to value separately from the rest
of the property or that is unlikely to be able to be sold separately from the rest of the property.

An assessor may classify the part of a parcel described in this subdivision that is used
for agricultural purposes as class 2a and the remainder in the class appropriate to its use.

(c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that
are unplatted real estate, rural in character and not used for agricultural purposes, including
land used for growing trees for timber, lumber, and wood and wood products, that is not
improved with a structure. The presence of a minor, ancillary nonresidential structure as
defined by the commissioner of revenue does not disqualify the property from classification
under this paragraph. Any parcel of 20 acres or more improved with a structure that is not
a minor, ancillary nonresidential structure must be split-classified, and ten acres must be
assigned to the split parcel containing the structure. If a parcel of 20 acres or more is enrolled
in the sustainable forest management incentive program under chapter 290C, the number
of acres assigned to the split parcel improved with a structure that is not a minor, ancillary
nonresidential structure must equal three acres or the number of acres excluded from the
sustainable forest incentive act covenant due to the structure, whichever is greater. Class
2b property has a classification rate of one percent of market value unless it is part of an
agricultural homestead under paragraph (a), or qualifies as class 2c under paragraph (d).

(d) Class 2c managed forest land consists of no less than 20 and no more than 1,920
acres statewide per taxpayer that is being managed under a forest management plan that
meets the requirements of chapter 290C, but is not enrolled in the sustainable forest resource
management incentive program. It has a classification rate of .65 percent, provided that the
owner of the property must apply to the assessor in order for the property to initially qualify
for the reduced rate and provide the information required by the assessor to verify that the
property qualifies for the reduced rate. If the assessor receives the application and information
before May 1 in an assessment year, the property qualifies beginning with that assessment
year. If the assessor receives the application and information after April 30 in an assessment
year, the property may not qualify until the next assessment year. The commissioner of
natural resources must concur that the land is qualified. The commissioner of natural
resources shall annually provide county assessors verification information on a timely basis.
The presence of a minor, ancillary nonresidential structure as defined by the commissioner
of revenue does not disqualify the property from classification under this paragraph.

(e) Agricultural land as used in this section means:

(1) contiguous acreage of ten acres or more, used during the preceding year for
agricultural purposes; or

(2) contiguous acreage used during the preceding year for an intensive livestock or
poultry confinement operation, provided that land used only for pasturing or grazing does
not qualify under this clause.

"Agricultural purposes" as used in this section means the raising, cultivation, drying, or
storage of agricultural products for sale, or the storage of machinery or equipment used in
support of agricultural production by the same farm entity. For a property to be classified
as agricultural based only on the drying or storage of agricultural products, the products
being dried or stored must have been produced by the same farm entity as the entity operating
the drying or storage facility. "Agricultural purposes" also includes (i) enrollment in a local
conservation program or the Reinvest in Minnesota program under sections 103F.501 to
103F.535 or the federal Conservation Reserve Program as contained in Public Law 99-198
or a similar state or federal conservation program if the property was classified as agricultural
(A) under this subdivision for taxes payable in 2003 because of its enrollment in a qualifying
program and the land remains enrolled or (B) in the year prior to its enrollment, or (ii) use
of land, not to exceed three acres, to provide environmental benefits such as buffer strips,
old growth forest restoration or retention, or retention ponds to prevent soil erosion. For
purposes of this section, a "local conservation program" means a program administered by
a town, statutory or home rule charter city, or county, including a watershed district, water
management organization, or soil and water conservation district, in which landowners
voluntarily enroll land and receive incentive payments equal to at least $50 per acre in
exchange for use or other restrictions placed on the land. In order for property to qualify
under the local conservation program provision, a taxpayer must apply to the assessor by
February 1 of the assessment year and must submit the information required by the assessor,
including but not limited to a copy of the program requirements, the specific agreement
between the land owner and the local agency, if applicable, and a map of the conservation
area. Agricultural classification shall not be based upon the market value of any residential
structures on the parcel or contiguous parcels under the same ownership.

"Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous
portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion
of, a set of contiguous tax parcels under that section that are owned by the same person.

(f) Agricultural land under this section also includes:

(1) contiguous acreage that is less than ten acres in size and exclusively used in the
preceding year for raising or cultivating agricultural products; or

(2) contiguous acreage that contains a residence and is less than 11 acres in size, if the
contiguous acreage exclusive of the house, garage, and surrounding one acre of land was
used in the preceding year for one or more of the following three uses:

(i) for an intensive grain drying or storage operation, or for intensive machinery or
equipment storage activities used to support agricultural activities on other parcels of property
operated by the same farming entity;

(ii) as a nursery, provided that only those acres used intensively to produce nursery stock
are considered agricultural land; or

(iii) for intensive market farming; for purposes of this paragraph, "market farming"
means the cultivation of one or more fruits or vegetables or production of animal or other
agricultural products for sale to local markets by the farmer or an organization with which
the farmer is affiliated.

"Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as
described in section 272.193, or all of a set of contiguous tax parcels under that section that
are owned by the same person.

(g) Land shall be classified as agricultural even if all or a portion of the agricultural use
of that property is the leasing to, or use by another person for agricultural purposes.

Classification under this subdivision is not determinative for qualifying under section
273.111.

(h) The property classification under this section supersedes, for property tax purposes
only, any locally administered agricultural policies or land use restrictions that define
minimum or maximum farm acreage.

(i) The term "agricultural products" as used in this subdivision includes production for
sale of:

(1) livestock deleted text begin , deleted text end new text begin ; new text end dairy animals deleted text begin , deleted text end new text begin ; new text end dairy products deleted text begin , deleted text end new text begin ; new text end poultry and poultry products deleted text begin , deleted text end new text begin ; new text end fur-bearing
animals deleted text begin , deleted text end new text begin ; new text end horticultural and nursery stock deleted text begin , deleted text end new text begin ; new text end fruit of all kinds deleted text begin , deleted text end new text begin ; new text end vegetables deleted text begin , deleted text end new text begin ; new text end forage deleted text begin , deleted text end new text begin ; new text end grains deleted text begin , deleted text end new text begin ;
new text end new text begin hemp; new text end bees deleted text begin , deleted text end new text begin ; new text end and apiary products by the owner;

(2) aquacultural products for sale and consumption, as defined under section 17.47, if
the aquaculture occurs on land zoned for agricultural use;

(3) the commercial boarding of horses, which may include related horse training and
riding instruction, if the boarding is done on property that is also used for raising pasture
to graze horses or raising or cultivating other agricultural products as defined in clause (1);

(4) property which is owned and operated by nonprofit organizations used for equestrian
activities, excluding racing;

(5) game birds and waterfowl bred and raised (i) on a game farm licensed under section
97A.105, provided that the annual licensing report to the Department of Natural Resources,
which must be submitted annually by March 30 to the assessor, indicates that at least 500
birds were raised or used for breeding stock on the property during the preceding year and
that the owner provides a copy of the owner's most recent schedule F; or (ii) for use on a
shooting preserve licensed under section 97A.115;

(6) insects primarily bred to be used as food for animals;

(7) trees, grown for sale as a crop, including short rotation woody crops, and not sold
for timber, lumber, wood, or wood products; and

(8) maple syrup taken from trees grown by a person licensed by the Minnesota
Department of Agriculture under chapter 28A as a food processor.

(j) If a parcel used for agricultural purposes is also used for commercial or industrial
purposes, including but not limited to:

(1) wholesale and retail sales;

(2) processing of raw agricultural products or other goods;

(3) warehousing or storage of processed goods; and

(4) office facilities for the support of the activities enumerated in clauses (1), (2), and
(3), the assessor shall classify the part of the parcel used for agricultural purposes as class
1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use.
The grading, sorting, and packaging of raw agricultural products for first sale is considered
an agricultural purpose. A greenhouse or other building where horticultural or nursery
products are grown that is also used for the conduct of retail sales must be classified as
agricultural if it is primarily used for the growing of horticultural or nursery products from
seed, cuttings, or roots and occasionally as a showroom for the retail sale of those products.
Use of a greenhouse or building only for the display of already grown horticultural or nursery
products does not qualify as an agricultural purpose.

(k) The assessor shall determine and list separately on the records the market value of
the homestead dwelling and the one acre of land on which that dwelling is located. If any
farm buildings or structures are located on this homesteaded acre of land, their market value
shall not be included in this separate determination.

(l) Class 2d airport landing area consists of a landing area or public access area of a
privately owned public use airport. It has a classification rate of one percent of market value.
To qualify for classification under this paragraph, a privately owned public use airport must
be licensed as a public airport under section 360.018. For purposes of this paragraph, "landing
area" means that part of a privately owned public use airport properly cleared, regularly
maintained, and made available to the public for use by aircraft and includes runways,
taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing
area also includes land underlying both the primary surface and the approach surfaces that
comply with all of the following:

(i) the land is properly cleared and regularly maintained for the primary purposes of the
landing, taking off, and taxiing of aircraft; but that portion of the land that contains facilities
for servicing, repair, or maintenance of aircraft is not included as a landing area;

(ii) the land is part of the airport property; and

(iii) the land is not used for commercial or residential purposes.

The land contained in a landing area under this paragraph must be described and certified
by the commissioner of transportation. The certification is effective until it is modified, or
until the airport or landing area no longer meets the requirements of this paragraph. For
purposes of this paragraph, "public access area" means property used as an aircraft parking
ramp, apron, or storage hangar, or an arrival and departure building in connection with the
airport.

(m) Class 2e consists of land with a commercial aggregate deposit that is not actively
being mined and is not otherwise classified as class 2a or 2b, provided that the land is not
located in a county that has elected to opt-out of the aggregate preservation program as
provided in section 273.1115, subdivision 6. It has a classification rate of one percent of
market value. To qualify for classification under this paragraph, the property must be at
least ten contiguous acres in size and the owner of the property must record with the county
recorder of the county in which the property is located an affidavit containing:

(1) a legal description of the property;

(2) a disclosure that the property contains a commercial aggregate deposit that is not
actively being mined but is present on the entire parcel enrolled;

(3) documentation that the conditional use under the county or local zoning ordinance
of this property is for mining; and

(4) documentation that a permit has been issued by the local unit of government or the
mining activity is allowed under local ordinance. The disclosure must include a statement
from a registered professional geologist, engineer, or soil scientist delineating the deposit
and certifying that it is a commercial aggregate deposit.

For purposes of this section and section 273.1115, "commercial aggregate deposit"
means a deposit that will yield crushed stone or sand and gravel that is suitable for use as
a construction aggregate; and "actively mined" means the removal of top soil and overburden
in preparation for excavation or excavation of a commercial deposit.

(n) When any portion of the property under this subdivision or subdivision 22 begins to
be actively mined, the owner must file a supplemental affidavit within 60 days from the
day any aggregate is removed stating the number of acres of the property that is actively
being mined. The acres actively being mined must be (1) valued and classified under
subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate
resource preservation property tax program under section 273.1115, if the land was enrolled
in that program. Copies of the original affidavit and all supplemental affidavits must be
filed with the county assessor, the local zoning administrator, and the Department of Natural
Resources, Division of Land and Minerals. A supplemental affidavit must be filed each
time a subsequent portion of the property is actively mined, provided that the minimum
acreage change is five acres, even if the actual mining activity constitutes less than five
acres.

(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are not
rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in
section 14.386 concerning exempt rules do not apply.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2023
and thereafter.
new text end

Sec. 21.

Minnesota Statutes 2021 Supplement, 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) deleted text begin (i) deleted text end manufactured home parks as defined in section 327.14, subdivision 3, deleted text begin excluding deleted text end
new text begin including new text end manufactured home parks deleted text begin described in items (ii) and (iii), (ii) manufactured home
parks as defined in section 327.14, subdivision 3, deleted text end that are described in section 273.124,
subdivision 3a deleted text begin , and (iii) class I manufactured home parks as defined in section 327C.01,
subdivision 13 deleted text end ;

(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) deleted text begin , 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.01, subdivision 13, deleted text end have a classification rate of deleted text begin 1.0 deleted text end new text begin 0.75 new text end
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 is deleted 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 deleted text begin 4d deleted text end new text begin 4d(1) new text end . The remaining portion of the building shall be classified by the assessor
based upon its use. Class deleted text begin 4d deleted text end new text begin 4d(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 deleted text begin 4d deleted text end new text begin 4d(1) new text end , the market value determined by the assessor must be based on
the normal approach to value using normal unrestricted rents deleted 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 deleted text begin 4d deleted text end new text begin 4d(1) new text end property has a classification rate of
0.75 percent. The remaining value of class deleted text begin 4d deleted text end new text begin 4d(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 deleted text begin 4d deleted text end new text begin
4d(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 deleted text begin 4d deleted text end new text begin 4d(1) new text end 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 (a) The amendments to paragraph (d) are effective for property
taxes payable in 2024 and thereafter.
new text end

new text begin (b) The amendments to paragraphs (e) and (f) are effective for property taxes payable
in 2023 and thereafter.
new text end

Sec. 22.

Minnesota Statutes 2021 Supplement, 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.
new text begin If a spouse previously received the exclusion under this paragraph, but the exclusion expired
prior to assessment year 2019 before the eligibility time period for surviving spouses was
changed to a lifetime benefit, the spouse may reapply under paragraph (h) for the exclusion
under this paragraph.
new text end

(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). new text begin If a spouse previously received the exclusion under this paragraph, but the
exclusion expired prior to assessment year 2019 before the eligibility time period for
surviving spouses was changed to a lifetime benefit, the spouse may reapply under paragraph
(h) for the exclusion under this paragraph.
new text end

(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 new text begin ,
within two years of the United States Department of Veterans Affairs Dependency and
Indemnity Compensation determination, or by December 31, 2023, whichever is later. A
qualifying spouse whose application was previously denied may reapply, pursuant to this
paragraph, by December 31, 2023 new text end .

(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 dying after December 31, 2011, did not apply for or receive the exclusion
under paragraph (b), clause (2), before dying, 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 within two years of the death of the service
member new text begin , within two years of the United States Department of Veterans Affairs Dependency
and Indemnity Compensation determination, if applicable, new text end or by deleted text begin June 1, 2019 deleted text end new text begin December
31, 2023 new text end , whichever is later new text begin . A spouse whose application was previously denied may reapply,
pursuant to this paragraph, by December 31, 2023 new 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 deleted text begin July 1 deleted text end new text begin December 31 new text end , 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 EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2022 and thereafter.
new text end

Sec. 23.

Minnesota Statutes 2020, 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 as 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 $76,000 deleted text end new text begin $80,300 new text end or less, the exclusion is 40 percent of
market value. For a homestead valued deleted text begin between $76,000 deleted text end new text begin over $80,300 new text end and deleted text begin $413,800 deleted text end new text begin less
than $437,100 new text end , the exclusion is deleted text begin $30,400 deleted text end new text begin $32,120 new text end minus nine percent of the valuation over
deleted text begin $76,000 deleted text end new text begin $80,300 new text end . For a homestead valued at deleted text begin $413,800 deleted text end new text begin $437,100 new 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 2023 and thereafter.
new text end

Sec. 24.

Minnesota Statutes 2020, 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 numbers new text begin , individual
tax 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 2022 and thereafter.
new text end

Sec. 25.

Minnesota Statutes 2020, section 273.1387, subdivision 2, is amended to read:

Subd. 2.

Credit amount.

For each qualifying property, the school building bond
agricultural credit is equal to the credit percent multiplied by the property's eligible net tax
capacity multiplied by the school debt tax rate determined under section 275.08, subdivision
1b. For property taxes payable prior to 2020, the credit percent is equal to 40 percent. For
property taxes payable in 2020, the credit percent is equal to 50 percent. For property taxes
payable in 2021, the credit percent is equal to 55 percent. For property taxes payable in
2022, the credit percent is equal to 60 percent. For property taxes payable in 2023 deleted text begin and
thereafter deleted text end , the credit percent is equal to 70 percent. new text begin For property taxes payable in 2024 and
thereafter, the credit percent is equal to 85 percent.
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.
new text end

Sec. 26.

Minnesota Statutes 2020, section 273.41, is amended to read:

273.41 AMOUNT OF TAX; DISTRIBUTION.

There is hereby imposed upon each such cooperative association on December 31 of
each year a tax of $10 for each 100 members, or fraction thereof, of such association. The
tax, when paid, shall be in lieu of all personal property taxes, state, county, or local, upon
distribution lines and the attachments and appurtenances thereto of such associations located
in rural areas. new text begin For purposes of this section, "attachments and appurtenances" include all
cooperative association-owned metering equipment, streetlights, and any other infrastructure
that is physically or electrically connected to the cooperative association's distribution
system. new text end The tax shall be payable on or before March 1 of the next succeeding year, to the
commissioner of revenue. If the tax, or any portion thereof, is not paid within the time herein
specified for the payment thereof, there shall be added thereto a specific penalty equal to
ten percent of the amount so remaining unpaid. Such penalty shall be collected as part of
said tax, and the amount of said tax not timely paid, together with said penalty, shall bear
interest at the rate specified in section 270C.40 from the time such tax should have been
paid until paid. The commissioner shall deposit the amount so received in the general fund
of the state treasury.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2023.
new text end

Sec. 27.

Minnesota Statutes 2020, section 279.03, subdivision 1a, is amended to read:

Subd. 1a.

Rate.

(a) Except as provided in deleted text begin paragraph deleted text end new text begin paragraphs new 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, 2023.
new text end

Sec. 28.

Minnesota Statutes 2020, 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, 2023.
new text end

Sec. 29.

Minnesota Statutes 2020, 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 except for deleted text end new text begin or 273.13,
subdivision 25, paragraph (e), clause (2). For new text end 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 2023 and thereafter.
new text end

Sec. 30.

Minnesota Statutes 2020, 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 $60,000 deleted text end new text begin $96,000 new 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 15 deleted text end new text begin five new 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 2023 and thereafter.
new text end

Sec. 31.

Minnesota Statutes 2020, 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 $60,000 deleted text end new text begin $96,000 new 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 2023 and thereafter.
new text end

Sec. 32.

Minnesota Statutes 2020, 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 $60,000 deleted text end new text begin $96,000 new 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 $60,000 deleted text end new text begin $96,000 new 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 2023 and thereafter.
new text end

Sec. 33.

Minnesota Statutes 2020, 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 $60,000 deleted text end new text begin $96,000 new 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 2023 and thereafter.
new text end

Sec. 34. new text begin CHILD PROTECTION COST STUDY.
new text end

new text begin (a) The legislative auditor is requested to conduct a special review of the costs to
Minnesota counties for the provision of child protective services. The review would need
to include:
new text end

new text begin (1) an overview of the roles and responsibilities of counties in Minnesota's child protective
services system and a comparison of these roles and responsibilities to those in other states;
new text end

new text begin (2) from 2013 through 2022, the amount each county spent on duties related to child
protective services;
new text end

new text begin (3) from 2013 through 2022, the amount of federal and state funds received by each
county for duties related to child protective services; and
new text end

new text begin (4) from 2013 through 2022, the amount each county paid for child protective services
using property tax revenue.
new text end

new text begin (b) The legislative auditor would need to complete the review by August 1, 2023, and
report the results of the review to the chairs and ranking minority members of the legislative
committees with jurisdiction over property taxation.
new text end

Sec. 35. new text begin APPROPRIATION.
new text end

new text begin $0 in fiscal year 2023 is appropriated from the general fund to the Office of the Legislative
Auditor for the purposes of conducting the review required by section 33. This is a onetime
appropriation.
new text end

Sec. 36. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2020, sections 327C.01, subdivision 13; and 327C.16, 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 beginning with property taxes payable
in 2024 and thereafter.
new text end

ARTICLE 5

STATE AIDS

Section 1.

Minnesota Statutes 2020, 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 2023
and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2020, 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 2023
and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2020, 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 4.59 deleted text end new text begin 8.559 new text end times the pre-1940
housing percentage; plus (2) deleted text begin 0.622 times the percent of housing built between 1940 and
1970 deleted text end new text begin 7.629 times the city age index new text end ; plus (3) deleted text begin 169.415 times the jobs per capita deleted text end new text begin 5.461 times
the commercial industrial utility percentage new text end ; plus (4) deleted text begin the sparsity adjustment deleted text end new text begin 8.481 times
peak population decline new text end ; plus (5) deleted text begin 307.664 deleted text end new text begin 297.789 new 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 572.62 deleted text end new text begin 502.094 new text end ; plus (2) deleted text begin 5.026 deleted text end new text begin 4.285 new text end times the
pre-1940 housing percentage; deleted text begin minus deleted text end new text begin plus new text end (3) deleted text begin 53.768 times household size deleted text end new text begin 6.699 times the
commercial industrial utility percentage new text end ; plus (4) deleted text begin 14.022 deleted text end new text begin 17.645 new text end times peak population
decline deleted text begin ; plus (5) the sparsity adjustment deleted text end .

(c) For a city with a population less than 2,500, "city revenue need" is the sum of (1)
deleted text begin 410 deleted text end new text begin 79.351 new text end ; plus (2) deleted text begin 0.367 deleted text end new text begin 246.428 new 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 adjustment deleted 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 630 deleted 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 2015 deleted text end new text begin 2023 new 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 2013 deleted text end new text begin 2020 new 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 2023
and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2020, 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 2023
and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2020, 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 2023
and thereafter.
new text end

Sec. 6.

Minnesota Statutes 2020, 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.014 deleted text end new text begin has the meaning given
in section 477A.011, subdivision 3b new 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 2023
and thereafter.
new text end

Sec. 7.

Minnesota Statutes 2020, section 477A.013, subdivision 8, is amended to read:

Subd. 8.

City formula aid.

(a) For aids payable in deleted text begin 2018 deleted text end new text begin 2023 new 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 13 deleted 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 2023
and thereafter.
new text end

Sec. 8.

Minnesota Statutes 2020, section 477A.013, subdivision 9, is amended to read:

Subd. 9.

City aid distribution.

(a) In calendar year deleted text begin 2018 deleted text end new text begin 2023 new text end and thereafter, if a city's
certified aid deleted text begin before any aid adjustment under subdivision 13 deleted 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 13 deleted text end , new text begin and
new text end (2) the city formula aid under subdivision 8 deleted text begin , and (3) its aid adjustment under subdivision
13 deleted 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 2020 deleted text end new text begin 2023 new text end and thereafter, if a city's
certified aid deleted text begin before any aid adjustment under subdivision 13 deleted 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 13 deleted 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) the deleted 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 2023
and thereafter.
new text end

Sec. 9.

Minnesota Statutes 2020, 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 and deleted text begin thereafter deleted text end new text begin 2022 new text end , the total aid payable under section 477A.013, subdivision 9, is
$564,398,012. new text begin For aids payable in 2023 and thereafter, the total aid payable under section
477A.013, subdivision 9, is $598,617,913.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2023
and thereafter.
new text end

Sec. 10.

Minnesota Statutes 2021 Supplement, 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 deleted text begin through 2024 deleted text end new text begin and 2022 new 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 2023 and
2024, the total aid payable under section 477A.0124, subdivision 3, is $124,547,834, 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 $115,795,000 deleted text end new text begin $121,547,834 new 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 and deleted text begin thereafter deleted text end new text begin 2022 new text end , the total aid
under section 477A.0124, subdivision 4, is $145,873,444. new text begin For aids payable in 2023 and
thereafter, the total aid under section 477A.0124, subdivision 4, is $153,120,610. 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 2023
and thereafter.
new text end

Sec. 11.

Minnesota Statutes 2020, 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 $2 deleted text end new text begin $3 new 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 $2 deleted text end new text begin $3 new 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 2023.
new text end

Sec. 12.

Minnesota Statutes 2020, 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 years new text begin , except
that the appraised value shall not be less than the most recent appraised value new 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 2023.
new text end

Sec. 13.

Minnesota Statutes 2020, section 477A.12, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Adjustment. new text end

new text begin The commissioner shall annually adjust the amounts in subdivision
1, clauses (1) to (10), as provided in section 270C.22, subdivision 1, except as provided in
this subdivision. To determine the dollar amounts for payments in calendar year 2024, the
commissioner shall determine the percentage change in the index for the 12-month period
ending on August 31, 2023, 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 2023.
new text end

Sec. 14.

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) "nonpublic land" means tract, lot, parcel, and piece or parcel of land as defined by
section 272.03, subdivision 6, that is not owned by the federal government, the state, or a
local government unit; and
new text end

new text begin (2) "soil and water conservation district" means a district under chapter 103C that is
implementing the duties under that chapter as determined by the Board of Water and Soil
Resources as of the date the board provides the 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; and
new text end

new text begin (2) 30 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.
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 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 website.
new text end

new text begin (c) A soil and water conservation district that receives a payment under this section 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 by this section.
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 $22,000,000 is annually appropriated from the general fund
to the commissioner of revenue to make the payments required under his 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, due to a clerical error, the amount certified by the
Board of Soil and Water Resources to a soil and water conservation district is less than the
amount to which the district is entitled under this section, the Board of Water and Soil
Resources shall recertify the correct amount 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. The commissioner of revenue shall then
distribute additional aid payments in the same manner as additional aid payments are made
under section 477A.014. The additional aid payments shall be made from the general fund
and shall not diminish the distributions made to other soil and water conservation districts
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 2022 and
thereafter.
new text end

Sec. 15.

Minnesota Statutes 2021 Supplement, 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; deleted text begin and
deleted text end

(3) "families" means families and persons 24 years of age or younger new text begin ; and
new text end

new text begin (4) "Tribal governments" means the federally recognized Indian Tribes located in
Minnesota, including: Bois Forte Band; Fond du Lac Band; Grand Portage Band; Leech
Lake Band; Mille Lacs Band; White Earth Band; Red Lake Nation; Lower Sioux Indian
Community; Prairie Island Indian Community; Shakopee Mdewakanton Sioux Community;
and Upper Sioux Community new text end .

Subd. 2.

Purpose.

The purpose of this section is to help local governments new text begin and Tribal
governments new 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 aid deleted text end under deleted text begin this section deleted 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 appropriation new 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). Each Tribal government must receive an equal share of local homeless
prevention aid under this subdivision.
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 Tribe deleted text end new text begin Tribal government new text end , a group of deleted text begin Tribes deleted text end new text begin Tribal
governments new 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 fund. deleted text end new text begin By December 31
of the calendar year following the calendar year that the aid was received, any funds unspent
or unallocated by a county under this section must be sent to the Continuum of Care which
the county is a part of.
new text end

Subd. 5.

Payments.

The commissioner of revenue must compute the amount of local
homeless prevention aid payable to each county new text begin and Tribal government new 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.

Subd. 6.

Appropriation.

deleted text begin $20,000,000 deleted text end new text begin (a) $17,800,000 new 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) $2,200,000 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 counties new text begin and Tribal governments new 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 counties new text begin and Tribal governments new 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 2028
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. 16.

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 2023
and thereafter.
new text end

Sec. 17.

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 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" means a statutory or home rule charter city with a population of at least 10,000;
new text end

new text begin (2) "city distribution factor" means the number of households in a city that are
cost-burdened divided by the total number of households that are cost-burdened in Minnesota
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 (3) "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 (4) "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; and
new text end

new text begin (5) "population" has the meaning given in section 477A.011, subdivision 3.
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
city under this section by multiplying the city's city distribution factor and the amount of
funding available to cities under this section.
new text end

new text begin Subd. 4. new text end

new text begin Grants to nonqualifying local governments. 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 local governments that do not qualify for a distribution of aid under subdivision
3. 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 local
governments outside and within the metropolitan area. Among comparable proposals, the
agency shall prioritize grants to local governments 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 under which and the
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 it 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 a grant 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 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 city or county demonstrates to the Minnesota Housing Finance
Agency that it cannot expend funds on a qualifying project by the deadline imposed by
paragraph (b) due to factors outside the control of the city or county, funds shall be considered
spent on a qualifying project if they are transferred to a local housing trust fund. Funds
transferred to a local housing trust fund must be spent on a project or household meeting
the affordability requirements of subdivision 6, paragraph (a).
new text end

new text begin (b) Any unspent funds must be returned to the commissioner of revenue 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 city and county under this section. Prior to computing the amount of
aid for counties and after receiving the report required by subdivision 4, paragraph (e), 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 that paragraph to $4,000,000. By August 1 of each year, the commissioner must
certify the amount to be paid to each county and city in the following year. The commissioner
must pay local affordable housing aid annually at the times provided in section 477A.015.
new text end

new text begin (b) Beginning in 2024, cities and counties 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 a city or
county fails to submit a report, if a city or county failed to spend funds within the timeline
imposed under subdivision 6, paragraph (b), or if a city or county 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 cities and counties that 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, a
city or county must repay to the commissioner of revenue funds it received under this section
if it:
new text end

new text begin (1) fails to spend the funds within the time allowed under subdivision 5, 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 any city or county if
it has been reported by the Minnesota Housing Finance Agency 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 any city or county to which it
has stopped payments once the Minnesota Housing Finance Agency certifies that the city
or county has submitted documentation of plans for a qualifying project.
new text end

new text begin (f) By May 1, any funds repaid to the commissioner of revenue by cities under paragraph
(c) must be added to the overall distribution of aids certified under this section for cities in
the following year. By May 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.
new text end

new text begin Subd. 8. new text end

new text begin County consultation with local governments. new text end

new text begin A county that receives funding
under this section shall regularly consult with the local governments 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) $32,000,000 is annually appropriated from the general
fund to the commissioner of revenue to make payments to counties as required under this
section, except that in fiscal year 2024 the amount appropriated is $29,600,000.
new text end

new text begin (b) $8,000,000 is annually appropriated from the general fund to the commissioner of
revenue to make payments to cities as required under this section, except that in fiscal year
2024 the amount appropriated is $7,400,000.
new text end

new text begin (c) $0 is annually appropriated from the general fund to the commissioner of revenue
to implement this section.
new text end

new text begin (d) $0 is annually appropriated from the general fund to the commissioner of the
Minnesota Housing Finance Agency to implement 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 calendar
year 2023.
new text end

Sec. 18.

new text begin [477A.40] STRONGER COMMUNITY 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 enhance the local performance
measurement program administered by the Office of the State Auditor by implementing a
permanent aid program set to compensate participating local units of government for
implementing a performance measurement program. Participation in this program is
voluntary. For purposes of this section, "local units of government" means all counties and
all statutory and home rule charter cities.
new text end

new text begin Subd. 2. new text end

new text begin Duties of the Office of the State Auditor. new text end

new text begin (a) To assist participating local units
of government, the Office of the State Auditor must provide on its website guidance for
compliance with the requirements of this section, including but not limited to:
new text end

new text begin (1) performance measures for counties;
new text end

new text begin (2) performance measures for cities;
new text end

new text begin (3) a sample resolution for counties and cities; and
new text end

new text begin (4) reporting requirements.
new text end

new text begin (b) Under subdivision 7, the state auditor must prescribe the form on which participating
local units of government certify their compliance with the requirements of this section.
new text end

new text begin (c) Under subdivision 9, the state auditor must certify to the commissioner of revenue
by April 1 of each year the list of participating local units of government that are eligible
to receive aid under this section.
new text end

new text begin Subd. 3. new text end

new text begin Program performance measures. new text end

new text begin (a) Each year, a local unit of government
that elects to participate in this section must adopt and implement a set of ten performance
measures prescribed by the Office of the State Auditor.
new text end

new text begin (b) A local unit of government that elects to participate in this section must adopt its
performance measures by June 1 each year.
new text end

new text begin Subd. 4. new text end

new text begin Citizen performance measure and budget workshop meetings. new text end

new text begin (a) A local
unit of government that elects to participate in this section must hold an annual citizen
performance measure and budget workshop meeting. This meeting must be used to: (i)
discuss performance measures selected for the upcoming year; (ii) review and report the
performance measure results for the current year and compare these results to previous
years, if applicable; (iii) discuss the budget process and budget priorities; and (iv) receive
public input.
new text end

new text begin (b) The meeting described in this subdivision must be held between June 15 and August
15 of each year, not before 6:00 p.m., with notice to the public provided at least 15 days
before the meeting is held by posting on the local unit of government's official website or
by direct mail.
new text end

new text begin Subd. 5. new text end

new text begin Preliminary budget meeting. new text end

new text begin At the meeting at which a local unit of
government participating in this section sets its preliminary budget and levy pursuant to
section 275.065, subdivision 1, the participating local unit of government must identify at
least two performance measures needing improvement and determine a strategy and plan
for improving these measures.
new text end

new text begin Subd. 6. new text end

new text begin Final budget meeting; resolution. new text end

new text begin At the meeting at which a local unit of
government participating in this section sets its final budget and levy pursuant to section
275.07, the participating local unit of government must approve a resolution declaring that:
new text end

new text begin (1) the participating local unit of government adopted and implemented the appropriate
number of performance measures prescribed by the Office of the State Auditor;
new text end

new text begin (2) the participating local unit of government held a citizen performance measure and
budget workshop meeting before the preliminary budget meeting in subdivision 5, during
which the local unit of government discussed the budget process, reported the results of the
performance measures from the previous year to the public, and allowed for public input;
new text end

new text begin (3) performance measure results from the previous year, if applicable, were made public
through the local unit of government's official website or by direct mail; and
new text end

new text begin (4) the participating local unit of government identified at least two performance measures
for improvement and developed a plan for improving these measures and a strategy for
evaluating the improvements in the next year.
new text end

new text begin Subd. 7. new text end

new text begin Certification to the Office of the State Auditor. new text end

new text begin A participating local unit of
government must certify to the Office of the State Auditor, on a form prescribed by the
auditor, that it has met the requirements of subdivisions 3 to 6 by February 1 of the aid
distribution year.
new text end

new text begin Subd. 8. new text end

new text begin Aid calculation. new text end

new text begin (a) Beginning in calendar year 2023 and thereafter, each local
jurisdiction that has satisfied the requirements under this section is eligible for an aid payment
of $0.14 per capita, but not exceed $25,000 for any jurisdiction.
new text end

new text begin (b) For purposes of this section, the population data used in calculating the aid to each
participating local unit of government must be the most recently available data as of January
1 of the year in which the aid is distributed.
new text end

new text begin Subd. 9. new text end

new text begin Aid certification and payment. new text end

new text begin (a) By April 1 of the aid distribution year, the
Office of the State Auditor must certify to the commissioner of revenue a list of the local
units of government that have certified, pursuant to subdivision 7, that they have met the
requirements of this section and are eligible to receive aid.
new text end

new text begin (b) The commissioner of revenue must annually make all necessary calculations and
make payments directly to the local units of government that are eligible to receive aid. In
addition, the commissioner must notify the local units of government of the aid amounts
and statewide total figures before August 1 of the aid distribution year.
new text end

new text begin (c) The commissioner of revenue must make the payments to qualifying local units of
government on December 26 annually.
new text end

new text begin Subd. 10. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to make the payments required by the
commissioner of revenue under subdivision 9 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 2024 and thereafter.
new text end

Sec. 19.

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 2022.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2023
and thereafter.
new text end

Sec. 20. new text begin COUNTY GRANTS FOR COMMUNITY CAREER WORKFORCE
ACADEMIES.
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 local governments address
the state's severe workforce shortage by funding collaborative public-private efforts that
create a strong pipeline of workers in high-demand areas and upskilling the current workforce
with an emphasis on minority populations, new Minnesota residents, and underskilled
workers.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin (a) Community Career Workforce Academies are established
as a public-private partnership between school districts, higher education, business, local
governments, and nonprofits that will prepare students and adults for high-skill jobs of the
future in identified growth industries and address the state's workforce shortage.
new text end

new text begin (b) Community Career Workforce Academies must deliver six core benefits to students:
new text end

new text begin (1) a rigorous, relevant education in grades 9 to postsecondary, inclusive, focused on
high-wage, high-demand careers;
new text end

new text begin (2) workplace learning that includes career exploration activities such as mentoring by
industry professionals, worksite visits, speakers, and internships;
new text end

new text begin (3) intensive, individualized academic support by both secondary and postsecondary
faculty within an extended academic year or school day that enables students to progress
through the program at their own pace;
new text end

new text begin (4) an opportunity to earn a postsecondary credential or degree;
new text end

new text begin (5) a commitment to students who complete the program to be first in line for a job with
participating business partners following completion of the program; and
new text end

new text begin (6) upskilling the current adult workforce with an emphasis on minority populations,
new Minnesota residents, underskilled workers, and those who are unemployed or
underemployed.
new text end

new text begin Subd. 3. new text end

new text begin Objectives. new text end

new text begin (a) A Community Career Workforce Academy must accomplish
the following:
new text end

new text begin (1) develop programs of study in high-wage, high-skill, and high-demand career areas
for students and adults while addressing the workforce shortage;
new text end

new text begin (2) align school, college, and community systems in the programs of study developed
under this section;
new text end

new text begin (3) support strong academic performance by program participants;
new text end

new text begin (4) promote informed and appropriate career exploration choices and preparation; and
new text end

new text begin (5) ensure that employers in key technical and high-demand fields and occupations have
access to a talented and skilled workforce.
new text end

new text begin (b) Through the programs of study developed under this section, participating students
must be able to earn college course credits toward a postsecondary credential or degree.
Career pathways must include workplace learning and high school and postsecondary
coursework. These pathways will provide a seamless sequence of study to ensure alignment
to high-wage, high-demand careers.
new text end

new text begin Subd. 4. new text end

new text begin Application. new text end

new text begin (a) Counties, through resolution by the county board, may apply
to the commissioner of employment and economic development for grants to be used in
accordance with subdivision 5. The applications must be submitted by January 31, 2023,
and must be rated on:
new text end

new text begin (1) the ability for the county to provide adequate facilities for a Community Career
Workforce Academy that provides the benefits described in subdivision 2;
new text end

new text begin (2) the ability for the Community Career Workforce Academy in the county to provide
adequate programming;
new text end

new text begin (3) the ability for the Community Career Workforce Academy in the county to meet the
objectives in subdivisions 2 and 3; and
new text end

new text begin (4) a regional workforce and talent plan.
new text end

new text begin (b) The commissioner of employment and economic development must rate applications
using the criteria in this subdivision and determine which counties will receive grants under
this section. Grants awarded to each county must not exceed $10,000,000. By March 31,
2023, the commissioner of employment and economic development must certify to the
commissioner of revenue the grant amounts to be issued to each county.
new text end

new text begin Subd. 5. new text end

new text begin Use of grants. new text end

new text begin Counties receiving grants under this section must use the funds
to establish or support a Community Career Workforce Academy that meets the criteria
under subdivisions 2 and 3. The funds provided under this section to a Community Career
Workforce Academy by a county may be used for facility capital needs and programming.
The county or a designee must administer the grant.
new text end

new text begin Subd. 6. new text end

new text begin Appropriation. new text end

new text begin (a) $40,000,000 in fiscal year 2023 is appropriated from the
general fund to the commissioner of revenue for payments to counties for grants under this
section. The appropriation under this section must be used for the following purposes:
new text end

new text begin (1) up to $30,000,000 must be used for grants under subdivision 7, paragraph (a); and
new text end

new text begin (2) $10,000,000 must be used for a grant under subdivision 7, paragraph (b).
new text end

new text begin (b) This is a onetime appropriation. Any amount unexpended after August 15, 2023, is
canceled.
new text end

new text begin Subd. 7. new text end

new text begin Grants. new text end

new text begin (a) The commissioner of revenue must make payment of the grant
amounts to counties certified by the commissioner of employment and economic development
under subdivision 4.
new text end

new text begin (b) Clay County shall be issued a onetime payment in the amount of $10,000,000 for
the Moorhead Career Workforce Academy for capital facility needs and programming.
new text end

new text begin (c) Grants under paragraph (a) must be paid to counties within 60 days of the certification
by the commissioner of employment and economic development. The grant under paragraph
(b) must be paid by August 1, 2022.
new text end

new text begin (d) Grants and the process of making grants under this subdivision are exempt from the
following statutes and related policies: Minnesota Statutes, sections 16A.15, subdivision 3;
16B.97; and 16B.98, subdivisions 5, 7, and 8. A county opting to use a third party to
administer grants is exempt from Minnesota Statutes, section 471.345, in the selection of
the third-party administrator. The exemptions under this paragraph expire after June 30,
2023.
new text end

new text begin Subd. 8. new text end

new text begin Report. new text end

new text begin By January 31, 2024, the commissioner of employment and economic
development must report to the legislative committees with jurisdiction over economic
development policy and finance and taxes on the grants and the effectiveness of the
Community Career Workforce Academies in meeting the objectives of subdivisions 2 and
3 and the grant application.
new text end

Sec. 21. new text begin STUDY OF STATE-OWNED LAKESHORE.
new text end

new text begin No later than January 31, 2023, 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 include, by county, the most recent assessed value
and acreage, and the assessed value and acreage for the two most recent assessments, as
required under Minnesota Statutes, section 273.18, paragraph (b), aggregated by parcels
containing shoreline and by parcels not containing shoreline area. Counties must report to
the commissioner of revenue any necessary data by September 30, 2022. 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.
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 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, 2022.
The commissioner of revenue must make a payment of $46,060 to the city by June 30, 2022.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 23. new text begin 2021 AID PENALTY FORGIVENESS; CITY OF 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, 2022.
The commissioner of revenue must make a payment of $79,476 to the city by June 30, 2022.
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 REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2020, sections 477A.011, subdivisions 30a, 38, 42, and 45; and
477A.013, subdivision 13, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2020, section 6.91, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective for aids payable in calendar year 2023
and thereafter. Paragraph (b) is effective January 1, 2024.
new text end

ARTICLE 6

TAX INCREMENT FINANCING

Section 1.

Minnesota Statutes 2020, 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 all deleted text end new text begin documented new text end expenditures of an authority deleted text begin other than deleted text end new text begin or municipality,
including but not limited to new 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 land new text begin and buildings new text end ;

(2) amounts paid to contractors or others providing materials and services deleted text begin , including
architectural and engineering services, deleted text end directly connected with the physical development
of the real property in the project new text begin , including architectural and engineering services and
materials and services for demolition, soil correction, and the construction or installation
of public improvements new 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 2020, 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 2020, 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 or new text begin ten percent of new text end the
total tax increment expenditures for the project new 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 2 new 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
or new text begin ten percent of new text end the total tax increments, as defined in section 469.174, subdivision 25,
clause (1), deleted text begin from deleted text end new text begin received for new text end the district new text begin net of any amounts returned to the county auditor
as excess increment or as remedies under section 469.1771, subdivision 2 new 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. 4.

Minnesota Statutes 2020, 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 469.142 deleted 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 469.068 deleted 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 469.108 deleted 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 469.047 deleted 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 469.133 deleted 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 plan deleted 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 reserve new text begin ; and (3) to pay administrative expenses 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 2021 Supplement, 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, paragraph (b), 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 are new text begin considered to be expenditures new 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, 2022.
new text end

Sec. 6.

Minnesota Statutes 2021 Supplement, 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 been deleted text end expended on an activity within the district
deleted text begin under deleted text end new text begin will instead be considered to have been expended on an activity outside the district
for purposes of new text end subdivision 2 deleted text begin only if one of the following occurs deleted text end new text begin unless new 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 certification new text begin of the district new 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 made deleted text end new text begin revenues are spent new text end for housing purposes as deleted text begin permitted deleted text end new text begin described new text end
by subdivision 2, deleted text begin paragraphs deleted text end new text begin paragraph new 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. 7.

Minnesota Statutes 2021 Supplement, 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) The deleted 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), a new text end district must be decertified deleted text begin and
the pledge of tax increment discharged when the outstanding bonds have been defeased and deleted text end
when deleted text begin sufficient money has been set aside to pay, based on deleted text end new text begin the product of the applicable
in-district percentage multiplied by new text end the deleted text begin increment to be deleted 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 pay new text end the following deleted text begin amounts deleted text end :

(1) deleted text begin contractual deleted text end new text begin any costs and new text end obligations deleted text begin as defined deleted text end new text begin described new text end in subdivision 3, deleted text begin paragraph deleted text end new text begin
paragraphs new 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, 2022, 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. 8.

Minnesota Statutes 2020, 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; minus new 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. 9.

Minnesota Statutes 2020, 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. 10.

Minnesota Statutes 2020, 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 hold deleted 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. 11.

Minnesota Statutes 2020, 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 469.176 deleted text end new text begin sections 469.174 to 469.1794 new text end , (2) for a purpose
that is not permitted under deleted text begin section 469.176 deleted text end new text begin sections 469.174 to 469.1794 new 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. 12.

Laws 2003, chapter 127, article 10, section 31, subdivision 1, as amended by
Laws 2008, chapter 366, article 5, section 21, and Laws 2019, First Special Session chapter
6, article 7, section 1, is amended to read:

Subdivision 1.

District extension.

(a) The governing body of the city of Hopkins may
elect to extend the duration of its redevelopment tax increment financing district 2-11 by
up to four additional years.

(b) Notwithstanding Minnesota Statutes, section 469.1763, subdivision 2, effective upon
approval of this subdivision, no increments may be spent on activities located outside of
the area of the district, other than:

(1) to pay administrative expenses, not to exceed ten percent of the total tax increments
from the district; or

(2) to pay the costs of housing or redevelopment activities that are consistent with
Minnesota Statutes, section 469.176, subdivision 4j deleted text begin , provided that expenditures under this
clause may not exceed 20 percent of the total tax increments from the district deleted text end .

The total amount of increment that may be spent on activities located outside the area of
the district under this section shall be limited to deleted text begin 25 deleted text end new text begin 30 new text end percent.

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 Hopkins and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 13.

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 eight deleted text end new text begin 11 new text end years for any district deleted 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 eight 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. 14. 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 Increment transferred under subdivision 1 may only be expended
on housing programs adopted by the Fridley Housing and Redevelopment Authority on or
prior to December 31, 2021.
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. 15. new text begin CITY OF PLYMOUTH; TIF 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 of
this section, the city of Plymouth may establish a redevelopment district located wholly
within the city of Plymouth, Hennepin County, Minnesota, limited to the following parcels,
identified by tax identification numbers, together with adjacent roads and rights-of-way:
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.
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 meets 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;
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) increments generated from the district may be expended on improvements to 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, 2029.
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 the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 16. new text begin CITY OF WOODBURY; TIF 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, sections 469.1782, subdivision 2, and 645.021,
subdivisions 2 and 3.
new text end

ARTICLE 7

LOCAL TAXES

Section 1.

Minnesota Statutes 2020, section 297A.99, subdivision 1, is amended to read:

Subdivision 1.

Authorization; scope.

(a) A political subdivision of this state may impose
a general sales tax (1) under section 297A.992, (2) under section 297A.993, (3) if permitted
by special law, or (4) if the political subdivision enacted and imposed the tax before January
1, 1982, and its predecessor provision.

(b) This section governs the imposition of a general sales tax by the political subdivision.
The provisions of this section preempt the provisions of any special law:

(1) enacted before June 2, 1997, or

(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
provision from this section's rules by reference.

(c) This section does not apply to or preempt a sales tax on motor vehicles. Beginning
July 1, 2019, no political subdivision may impose a special excise tax on motor vehicles
unless it is imposed under section 297A.993.

(d) A political subdivision may not advertise or expend funds for the promotion of a
referendum to support imposing a local sales tax deleted text begin and may only spend funds related to
imposing a local sales tax to: deleted text end new text begin .
new text end

new text begin (e) Notwithstanding paragraph (d), a political subdivision may only spend funds related
to imposing a local sales tax to:
new text end

(1) conduct the referendum;

(2) disseminate information included in the resolution adopted new text begin and submitted new text end under
subdivision 2, but only if the disseminated information includes a list of specific projects
and the cost of each individual project;

(3) provide notice of, and conduct public forums at which proponents and opponents on
the merits of the referendum are given equal time to express their opinions on the merits of
the referendum;

(4) provide facts and data on the impact of the proposed local sales tax on consumer
purchases; and

(5) provide facts and data related to the individual programs and projects to be funded
with the local sales tax.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for local sales tax proposals submitted
for legislative approval after the day of final enactment.
new text end

Sec. 2.

Minnesota Statutes 2021 Supplement, section 297A.99, subdivision 2, is amended
to read:

Subd. 2.

Local resolution before application for authority.

(a) deleted text begin Before the governing
body of a political subdivision requests legislative approval to impose a local sales tax
authorized by a special law, it shall adopt a resolution indicating its approval of the tax. The
resolution must include the following information: deleted text end new text begin The governing body of a political
subdivision seeking legislative approval to either impose a new local sales tax authorized
by special law or modify an existing local sales tax authorized by special law must adopt a
resolution indicating its approval of the tax each year it requests legislative approval. The
resolution must include the following information:
new text end

(1) the proposed tax rate;

(2) a detailed description of no more than five capital projects that will be funded with
revenue from the tax;

(3) documentation of the regional significance of each project, including the share of
the economic benefit to or use of each project by persons residing, or businesses located,
outside of the jurisdiction;

(4) the amount of local sales tax revenue that would be used for each project and the
estimated time needed to raise that amount of revenue; deleted text begin and
deleted text end

(5) the total revenue that will be raised for all projects before the tax expires, and the
estimated length of time that the tax will be in effect if all proposed projects are funded deleted text begin . deleted text end new text begin ;
and
new text end

new text begin (6) a description of the nexus between the nonresident users of a project and the payment
of the tax, as required in paragraph (e).
new text end

(b) The jurisdiction deleted text begin seeking authority to impose a local sales tax by special law deleted text end must
submit the resolution in paragraph (a) along with underlying documentation indicating how
the benefits under paragraph (a), clause (3), were determined, to the chairs and ranking
minority members of the deleted text begin legislative deleted text end committees new text begin of the house of representatives and senate
new text end with jurisdiction over taxes no later than January 31 of deleted text begin the deleted text end new text begin each new text end year in which the jurisdiction
is seeking a special law authorizing new text begin or modifying new text end the tax. new text begin The jurisdiction must submit an
amended resolution if, after meeting the requirements of this paragraph, the jurisdiction
seeks to:
new text end

new text begin (1) add a project that will be funded with the revenue from the tax;
new text end

new text begin (2) increase the amount that will be used for any project;
new text end

new text begin (3) increase the total revenue raised for all projects before the tax expires; or
new text end

new text begin (4) increase the estimated length of time that the tax will be in effect if all proposed
projects are funded.
new text end

(c) The special legislation granting new text begin or modifying new text end local sales tax authority is not required
to allow funding for all projects listed in the resolution with the revenue from the local sales
tax, but must not include any projects not contained in the resolution.

(d) For purposes of this section, a "capital project" or "project" means:

(1) a single building or structure including associated infrastructure needed to safely
access or use the building or structure;

(2) improvements within a single park or named recreation area; or

(3) a contiguous trail.

new text begin (e) The resolution required in paragraph (a) must also include a description of the nexus
between the nonresident users of a project and the payment of tax. Nexus requires that two
of the following requirements are met:
new text end

new text begin (1) a significant number of the users of the project will be nonresidents of the political
subdivision imposing the tax;
new text end

new text begin (2) the project includes a unique or uncommon characteristic;
new text end

new text begin (3) the project is part of a regional or statewide network or system for providing facilities
or services;
new text end

new text begin (4) the project promotes an activity having a duration long enough to encourage retail
activity incident to the project, in the political subdivision imposing the tax; and
new text end

new text begin (5) the project includes improvements or amenities to facilities that increase the project's
capacity to serve visitors at a volume that exceeds the capacity for facilities that serve a
local population, including but not limited to heating, ventilation, and air conditioning
systems, parking facilities, including accessibility upgrades, and other improvements
necessary for compliance with state building codes for the improved facilities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for local sales tax proposals submitted
for legislative approval after the day of final enactment.
new text end

Sec. 3.

Minnesota Statutes 2020, section 297A.99, subdivision 3, is amended to read:

Subd. 3.

Legislative authority required before voter approval; requirements for
adoption, use, termination.

(a) A political subdivision must receive legislative authority
to impose new text begin or modify new text end a local sales tax before submitting the tax for approval by voters of the
political subdivision. Imposition new text begin or modification new text end of a local sales tax is subject to approval
by voters of the political subdivision at a general election. The election must be conducted
deleted text begin at a general election deleted text end new text begin on the first Tuesday after the first Monday in November new text end within the
two-year period after the governing body of the political subdivision has received authority
to impose new text begin or modify new text end the tax. If the authorizing legislation deleted text begin allows deleted text end new text begin authorizes or modifies new text end the
tax deleted text begin to be imposed deleted text end for more than one project, there must be a separate question approving
the use of the tax revenue for each project. Notwithstanding the authorizing legislation new text begin or
special law modifying the tax new text end , a project that is not approved by the voters may not be funded
with the local sales tax revenue and the termination date of the tax set in the authorizing
legislation new text begin or special law modifying the tax new text end must be reduced proportionately based on the
share of that project's cost to the total costs of all projects included in the authorizing
legislation new text begin or special law modifying the tax new text end .

(b) The proceeds of the tax must be dedicated exclusively to payment of the construction
and rehabilitation costs and associated bonding costs related to the specific capital
improvement projects that were approved by the voters under paragraph (a).

(c) The tax must terminate after the revenues raised are sufficient to fund the projects
approved by the voters under paragraph (a).

(d) After a sales tax imposed by a political subdivision has expired or been terminated,
the political subdivision is prohibited from imposing a local sales tax for a period of one
year.

(e) Notwithstanding paragraph (a), if a political subdivision received voter approval to
seek authority for a local sales tax at the November 6, 2018, general election and is granted
authority to impose a local sales tax before January 1, 2021, the tax may be imposed without
an additional referendum provided that it meets the requirements of subdivision 2 and the
list of specific projects contained in the resolution does not conflict with the projects listed
in the approving referendum.

(f) If a tax is terminated because sufficient revenues have been raised, any amount of
tax collected under subdivision 9, after sufficient revenues have been raised and before the
quarterly termination required under subdivision 12, paragraph (a), that is greater than the
average quarterly revenues collected over the immediately preceding 12 calendar months
must be retained by the commissioner for deposit in the general fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for local sales tax proposals submitted
for legislative approval after the day of final enactment.
new text end

Sec. 4.

Laws 1998, chapter 389, article 8, section 43, as amended by Laws 2005, First
Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session
chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections
11, 12, and 13, is amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Authorization; extension. new text end

new text begin Notwithstanding Minnesota Statutes, section
477A.016, or any other law, ordinance, or city charter, and if approved by the voters at a
general election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
city of Rochester may extend the sales and use tax of one-half of one percent authorized
under subdivision 1, paragraph (a), for the purposes specified in subdivision 3a. Except as
otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99,
govern the imposition, administration, collection, and enforcement of the tax authorized
under this subdivision. The tax imposed under this subdivision is in addition to any local
sales and use tax imposed under any other special law.
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 Rochester and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 5.

Laws 1998, chapter 389, article 8, section 43, as amended by Laws 2005, First
Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session
chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections
11, 12, and 13, is amended by adding a subdivision to read:

new text begin Subd. 3a. new text end

new text begin Use of sales and use tax revenues; additional projects. new text end

new text begin The revenues derived
from the extension of the tax authorized under subdivision 1a must be used by the city of
Rochester to pay the costs of collecting and administering the tax and paying for the following
projects in the city, including securing and paying debt service on bonds issued to finance
all or part of the following projects:
new text end

new text begin (1) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
$50,000,000, plus associated bonding costs for street reconstruction;
new text end

new text begin (2) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
$40,000,000, plus associated bonding costs for flood control and water quality;
new text end

new text begin (3) $65,000,000, plus associated bonding costs for a Regional Community and Recreation
Complex; and
new text end

new text begin (4) additional project costs for the projects described in clauses (1) to (3), provided that
sufficient revenue from the tax has been received to pay for the project costs in clauses (1)
to (3) and to pay the costs related to issuance of any bonds under subdivision 4a, paragraph
(b).
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 Rochester and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 6.

Laws 1998, chapter 389, article 8, section 43, as amended by Laws 2005, First
Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session
chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections
11, 12, and 13, is amended by adding a subdivision to read:

new text begin Subd. 4a. new text end

new text begin Bonding authority; additional projects and extension of tax. new text end

new text begin (a) The city
of Rochester may issue bonds under Minnesota Statutes, chapter 475, to finance all or a
portion of the costs of the projects authorized in subdivision 3a and approved by the voters
as required under Minnesota Statutes, section 297A.99, subdivision 3, paragraph (a). The
bonds may be paid from or secured by any funds available to the city of Rochester, including
the tax authorized under subdivision 1a and the full faith and credit of the city. The issuance
of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and
275.61.
new text end

new text begin (b) The aggregate principal amount of bonds issued under this subdivision for the projects
described in subdivision 3a, clauses (1) to (3), may not exceed $155,000,000, plus an amount
to be applied to the payment of the costs of issuing the bonds.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
of Rochester, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
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 Rochester and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 7.

Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by Laws
2005, First Special Session chapter 3, article 5, section 30, Laws 2011, First Special Session
chapter 7, article 4, section 7, and Laws 2013, chapter 143, article 10, section 13, is amended
to read:

Subd. 5.

Termination of taxes.

(a) The taxes imposed under subdivisions 1 and 2 expire
at the later of (1) December 31, 2009, or (2) when the city council determines that sufficient
funds have been received from the taxes to finance the first $71,500,000 of capital
expenditures and bonds for the projects authorized in subdivision 3, including the amount
to prepay or retire at maturity the principal, interest, and premium due on any bonds issued
for the projects under subdivision 4, unless the taxes are extended as allowed in paragraph
(b). Any funds remaining after completion of the project and retirement or redemption of
the bonds shall also be used to fund the projects under subdivision 3. The taxes imposed
under subdivisions 1 and 2 may expire at an earlier time if the city so determines by
ordinance.

(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other
contrary provision of law, ordinance, or city charter, the city of Rochester may, by ordinance,
extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009, if approved
by the voters of the city at a special election in 2005 or the general election in 2006. The
question put to the voters must indicate that an affirmative vote would allow up to an
additional $40,000,000 of sales tax revenues be raised and up to $40,000,000 of bonds to
be issued above the amount authorized in the June 23, 1998, referendum for the projects
specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are extended under
this paragraph, the taxes expire when the city council determines that sufficient funds have
been received from the taxes to finance the projects and to prepay or retire at maturity the
principal, interest, and premium due on any bonds issued for the projects under subdivision
4. Any funds remaining after completion of the project and retirement or redemption of the
bonds may be placed in the general fund of the city.

(c) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other
contrary provision of law, ordinance, or city charter, the city of Rochester may, by ordinance,
extend the taxes authorized in subdivisions 1, paragraph (a), and 2, up to December 31,
2049, provided that all additional revenues above those necessary to fund the projects and
associated financing costs listed in subdivision 3, paragraphs (a) to (e), are committed to
fund public infrastructure projects contained in the development plan adopted under
Minnesota Statutes, section 469.43, including all financing costs; otherwise the taxes
terminate when the city council determines that sufficient funds have been received from
the taxes to finance expenditures and bonds for the projects authorized in subdivision 3,
paragraphs (a) to (e), plus an amount equal to the costs of issuance of the bonds and including
the amount to prepay or retire at maturity the principal, interest, and premiums due on any
bonds issued for the projects under subdivision 4.

(d) The tax imposed under subdivision 1, paragraph (b), expires at the earlier of new text begin December
31, new text end 2049, or when the city council determines that sufficient funds have been raised from
the tax plus all other city funding sources authorized in this article to meet the city obligation
for financing the public infrastructure projects contained in the development plan adopted
under Minnesota Statutes, section 469.43, including all financing costs.

new text begin (e) The tax imposed under subdivision 1a expires at the earlier of (1) 16-1/2 years after
first imposed, or (2) when the city council determines that the amount of revenues received
from the tax is sufficient to pay for the project costs authorized under subdivision 3a for
projects approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of the bonds under subdivision 4a, including interest on the bonds. Except as otherwise
provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds
remaining after payment of the allowed costs due to the timing of the termination of the tax
under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general
fund of the city. The tax imposed under subdivision 1a may expire at an earlier time if the
city so determines by ordinance.
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 Rochester and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 8.

Laws 2008, chapter 366, article 7, section 17, is amended to read:

Sec. 17. COOK COUNTY deleted text begin ; deleted text end LODGING deleted text begin AND ADMISSIONS TAXES deleted text end new text begin TAX new 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 taxes deleted text end new text begin tax new text end imposed in deleted text begin subdivisions deleted text end new text begin subdivision new text end 1 deleted text begin and 2 deleted 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 taxes deleted text end new text begin tax new text end imposed in deleted text begin subdivisions deleted text end new text begin
subdivision new text end 1 deleted text begin and 2 deleted text end until the board of commissioners approves the annual budget.

Subd. 4.

Termination.

The deleted text begin taxes deleted text end new text begin tax new text end imposed in deleted text begin subdivisions deleted text end new text begin subdivision new text end 1 deleted text begin and 2 deleted text end
deleted text begin terminate 15 deleted text end new text begin terminates 30 new text end years after deleted text begin they are deleted text end new text begin it is new 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

Sec. 9.

Laws 2011, First Special Session chapter 7, article 4, section 14, is amended to
read:

Sec. 14. CITY OF MARSHALL; SALES AND USE TAX.

Subdivision 1.

Authorization.

Notwithstanding Minnesota Statutes, section 297A.99,
subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city charter, the city of
Marshall, if approved by the voters at a general election held within two years of the date
of final enactment of this section, may impose the tax authorized under subdivision 2. Two
separate ballot questions must be presented to the voters, one for each of the two facility
projects named in subdivision 3.

Subd. 2.

Sales and use tax authorized.

The city of Marshall may impose by ordinance
a sales and use tax of up to one-half of one percent for the purposes specified in subdivision
3. The provisions of Minnesota Statutes, section 297A.99, except subdivisions 1 and 2,
govern the imposition, administration, collection, and enforcement of the tax authorized
under this subdivision.

new text begin Subd. 2a. new text end

new text begin Authorization; extension. new text end

new text begin Notwithstanding Minnesota Statutes, section
297A.99, subdivision 3, paragraph (d), or 477A.016, or any other law, ordinance, or city
charter, after payment of the bonds authorized under subdivision 4, and if approved by the
voters at a general election as required under Minnesota Statutes, section 297A.99,
subdivision 3, the city of Marshall may extend the sales and use tax of one-half of one
percent authorized under subdivision 2 for the purposes specified in subdivision 3a. Except
as otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99,
govern the imposition, administration, collection, and enforcement of the tax authorized
under this subdivision. The tax imposed under this subdivision is in addition to any local
sales and use tax imposed under any other special law.
new text end

Subd. 3.

Use of sales and use tax revenues.

The revenues derived from the tax authorized
under subdivision 2 must be used by the city of Marshall to pay the costs of collecting and
administering the sales and use tax and to pay all or part of the costs of the new and existing
facilities of the Minnesota Emergency Response and Industry Training Center and all or
part of the costs of the new facilities of the Southwest Minnesota Regional Amateur Sports
Center. Authorized expenses include, but are not limited to, acquiring property, predesign,
design, and paying construction, furnishing, and equipment costs related to these facilities
and paying debt service on bonds or other obligations issued by the city of Marshall under
subdivision 4 to finance the capital costs of these facilities.

new text begin Subd. 3a. new text end

new text begin Use of sales and use tax revenues; aquatic center. new text end

new text begin The revenues derived
from the extension of the tax authorized under subdivision 2a must be used by the city of
Marshall to pay the costs of collecting and administering the tax and paying for $16,000,000
plus associated bonding costs for the construction of a new municipal aquatic center in the
city, including securing and paying debt service on bonds issued to finance the project.
new text end

Subd. 4.

Bonds.

(a) If the imposition of a sales and use tax is approved by the voters,
the city of Marshall may issue bonds under Minnesota Statutes, chapter 475, to finance all
or a portion of the costs of the facilities authorized in subdivision 3, and may issue bonds
to refund bonds previously issued. The aggregate principal amount of bonds issued under
this subdivision may not exceed $17,290,000, plus an amount to be applied to the payment
of the costs of issuing the bonds. The bonds may be paid from or secured by any funds
available to the city of Marshall, including the tax authorized under subdivision 2.

(b) The bonds are not included in computing any debt limitation applicable to the city
of Marshall, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds, is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.

new text begin Subd. 4a. new text end

new text begin Bonds; additional use and extension of tax. new text end

new text begin (a) After payment of the bonds
authorized under subdivision 4, the city of Marshall may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2a and approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
under this subdivision may not exceed $16,000,000, plus an amount to be applied to the
payment of the costs of issuing the bonds. The bonds may be paid from or secured by any
funds available to the city of Marshall, including the tax authorized under subdivision 2a.
The issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections
275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city
of Marshall, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

Subd. 5.

Termination of taxes.

new text begin (a) new text end The tax imposed under subdivision 2 expires at the
earlier of (1) 15 years after the tax is first imposed, or (2) when the city council determines
that the amount of revenues received from the tax to pay for the capital and administrative
costs of the facilities under subdivision 3 first equals or exceeds the amount authorized to
be spent for the facilities plus the additional amount needed to pay the costs related to
issuance of the bonds under subdivision 4, including interest on the bonds. Any funds
remaining after payment of all such costs and retirement or redemption of the bonds shall
be placed in the general fund of the city. The tax imposed under subdivision 2 may expire
at an earlier time if the city so determines by ordinance.

new text begin (b) The tax imposed under subdivision 2a expires at the earlier of (1) 30 years after the
tax under subdivision 2 is first imposed, or (2) when the city council determines that the
amount of revenues received from the tax is sufficient to pay for the project costs authorized
under subdivision 3a for the project approved by the voters as required under Minnesota
Statutes, section 297A.99, subdivision 3, paragraph (a), plus an amount sufficient to pay
the costs related to issuance of the bonds under subdivision 4a, including interest on the
bonds. Except as otherwise provided in Minnesota Statutes, section 297A.99, subdivision
3, paragraph (f), any funds remaining after payment of the allowed costs due to the timing
of the termination of the tax under Minnesota Statutes, section 297A.99, subdivision 12,
shall be placed in the general fund of the city. The tax imposed under subdivision 2a may
expire at an earlier time if the city so determines by ordinance.
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 Marshall and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 10.

Laws 2019, First Special Session chapter 6, article 6, section 25, is amended to
read:

Sec. 25. CITY OF PLYMOUTH; LOCAL LODGING TAX AUTHORIZED.

(a) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of
law, ordinance, or city charter, the city council for the city of Plymouth may impose by
ordinance a tax of up to three 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 six percent.

(b) Two-thirds of the revenue from the tax imposed under this section must be dedicated
and used for capital improvements to public recreational facilities and marketing and
promotion of the community, and the remaining one-third of the revenue must be used for
the same purposes as a tax imposed under Minnesota Statutes, section 469.190.

deleted text begin (c) The tax imposed under this authority terminates at the earlier of: (1) ten years after
the tax is first imposed; or (2) December 31, 2030.
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. 11.

Laws 2021, First Special Session chapter 14, article 8, section 5, is amended to
read:

Sec. 5. CITY OF EDINA; TAXES AUTHORIZED.

Subdivision 1.

Sales and use tax authorization.

Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and if approved by the voters at a general election as required under Minnesota Statutes,
section 297A.99, subdivision 3, the city of Edina may impose by ordinance a sales and use
tax of one-half of one percent for the purposes specified in subdivision 2. Except as otherwise
provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the
imposition, administration, collection, and enforcement of the tax authorized under this
subdivision. The tax imposed under this subdivision is in addition to any local sales and
use tax imposed under any other special law.

Subd. 2.

Use of sales and use tax revenues.

The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Edina to pay the costs of collecting and
administering the tax and paying for the following projects in the city, including securing
and paying debt service on bonds issued to finance all or part of the following projects:

(1) $17,700,000 plus associated bonding costs for development of Fred Richards Park
as identified in the Fred Richards Park Master Plan; deleted text begin and
deleted text end

(2) deleted text begin $21,600,000 deleted text end new text begin $46,900,000 new text end plus associated bonding costs for improvements to Braemar
Park as identified in the Braemar Park Master Plan deleted text begin . deleted text end new text begin ; and
new text end

new text begin (3) capital improvement projects to the city's park and recreation system, plus associated
bonding costs, provided that sufficient revenue from the tax has been received to pay for
the project costs in clauses (1) and (2) and to pay the costs related to issuance of any bonds
under subdivision 3, paragraph (b).
new text end

Subd. 3.

Bonding authority.

( deleted text begin a) The city of Edina may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
subdivision 2 and approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
under this subdivision may not exceed: (1) $17,700,000 for the project listed in subdivision
2, clause (1), plus an amount to be applied to the payment of the costs of issuing the bonds;
and (2) $21,600,000 for the project listed in subdivision 2, clause (2), plus an deleted text end deleted text begin amount to be
applied to the payment of the costs of issuing the bonds. The bonds may be paid from or
secured by any funds available to the city of Edina, including the tax authorized under
subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota
Statutes, sections 275.60 and 275.61.
deleted text end

new text begin (a) The city of Edina may issue bonds under Minnesota Statutes, chapter 475, to finance
all or a portion of the costs of the projects authorized in subdivision 2 and approved by the
voters as required under Minnesota Statutes, section 297A.99, subdivision 3, paragraph (a).
The bonds may be paid from or secured by any funds available to the city of Edina, including
the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not
subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) For the projects described in subdivision 2, clauses (1) and (2), the aggregate principal
amount of bonds issued under this subdivision may not exceed:
new text end

new text begin (1) $17,700,000 for the project listed in subdivision 2, clause (1), plus an amount to be
applied to the payment of the costs of issuing the bonds; and
new text end

new text begin (2) $46,900,000 for the project listed in subdivision 2, clause (2), plus an amount to be
applied to the payment of the costs of issuing the bonds.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end The bonds are not included in computing any debt limitation applicable to the
city of Edina, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.

Subd. 4.

Termination of taxes.

Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) deleted text begin 19 deleted text end new text begin 17 new text end years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the
general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
if the city so determines by ordinance.

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 Edina and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 12.

Laws 2021, First Special Session chapter 14, article 8, section 7, is amended to
read:

Sec. 7. CITY OF GRAND RAPIDS; TAXES AUTHORIZED.

Subdivision 1.

Sales and use tax authorization.

Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and if approved by the voters at a general election as required under Minnesota Statutes,
section 297A.99, subdivision 3, the city of Grand Rapids may impose by ordinance a sales
and use tax of one-half of one percent for the purposes specified in subdivision 2. Except
as otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99,
govern the imposition, administration, collection, and enforcement of the tax authorized
under this subdivision. The tax imposed under this subdivision is in addition to any local
sales and use tax imposed under any other special law.

Subd. 2.

Use of sales and use tax revenues.

The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Grand Rapids to pay the costs of collecting
and administering the tax including securing and paying debt service on bonds issued and
to finance up to deleted text begin $5,980,000 deleted text end new text begin $10,600,000 new text end for reconstruction, remodeling, and upgrades to
the Grand Rapids IRA Civic Center. Authorized costs include design, construction,
reconstruction, mechanical upgrades, and engineering costs, as well as the associated bond
costs for any bonds issued under subdivision 3.

Subd. 3.

Bonding authority.

(a) The city of Grand Rapids may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
authorized in subdivision 2. The aggregate principal amount of bonds issued under this
subdivision may not exceed deleted text begin $5,980,000 deleted text end new text begin $10,600,000 new text end , plus an amount to be applied to the
payment of the costs of issuing the bonds. The bonds may be paid from or secured by any
funds available to the city of Grand Rapids, including the tax authorized under subdivision
1. The issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections
275.60 and 275.61.

(b) The bonds are not included in computing any debt limitation applicable to the city
of Grand Rapids, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal and interest on the bonds is not subject to any levy limitation. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.

Subd. 4.

Termination of taxes.

The tax imposed under subdivision 1 expires at the
earlier of: (1) deleted text begin seven deleted text end new text begin 12 new text end years after the tax is first imposed; or (2) when the city council
determines that it has received from this tax deleted text begin $5,980,000 deleted text end new text begin $10,600,000 new text end to fund the project
listed in subdivision 2 for projects approved by the voters as required under Minnesota
Statutes, section 297A.99, subdivision 3, paragraph (a), plus an amount sufficient to pay
the costs related to issuance of any bonds authorized under subdivision 3, including interest
on the bonds. Any funds remaining after payment of all such costs and retirement or
redemption of the bonds shall be placed in the general fund of the city, except for funds
required to be retained in the state general fund under Minnesota Statutes, section 297A.99,
subdivision 3. The tax imposed under subdivision 1 may expire at an earlier time if the city
so determines by ordinance.

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 Grand Rapids and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 13. new text begin CITY OF AITKIN; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
the city of Aitkin may impose by ordinance a sales and use tax of one percent for the purposes
specified in subdivision 2. Except as otherwise provided in this section, the provisions of
Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and
enforcement of the tax authorized under this subdivision. The tax imposed under this
subdivision is in addition to any local sales and use tax imposed under any other special
law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Aitkin to pay the costs of collecting and
administering the tax and paying for the following projects in the city, including securing
and paying debt service on bonds issued to finance all or part of the following projects:
new text end

new text begin (1) $8,300,000 plus associated bonding costs for construction of a new municipal
building; and
new text end

new text begin (2) $1,000,000 plus associated bonding costs for improvements to parks and trails.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Aitkin may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in
subdivision 2 and approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
under this subdivision may not exceed:
new text end

new text begin (1) $8,300,000 for the project listed in subdivision 2, clause (1), plus an amount to be
applied to the payment of the costs of issuing the bonds; and
new text end

new text begin (2) $1,000,000 for the project listed in subdivision 2, clause (2), plus an amount to be
applied to the payment of the costs of issuing the bonds.
new text end

new text begin The bonds may be paid from or secured by any funds available to the city of Aitkin, including
the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not
subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city
of Aitkin, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 19 years
after being first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the
general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
if the city so determines by ordinance.
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 Aitkin and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 14. new text begin CITY OF BLACKDUCK; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
the city of Blackduck may impose by ordinance a sales and use tax of one-half of one percent
for the purposes specified in subdivision 2. Except as otherwise provided in this section,
the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision. The tax imposed
under this subdivision is in addition to any local sales and use tax imposed under any other
special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Blackduck to pay the costs of collecting
and administering the tax and paying for the following projects in the city, including securing
and paying debt service on bonds issued to finance all or part of the following projects:
new text end

new text begin (1) $200,000 plus associated bonding costs for improvements to a city campground;
new text end

new text begin (2) $300,000 plus associated bonding costs for improvements to a walking trail;
new text end

new text begin (3) $250,000 plus associated bonding costs for improvements to a wayside rest;
new text end

new text begin (4) $150,000 plus associated bonding costs for golf course irrigation improvements; and
new text end

new text begin (5) $100,000 plus associated bonding costs for reconstruction of a library.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Blackduck may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in
subdivision 2 and approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
under this subdivision may not exceed:
new text end

new text begin (1) $200,000 for the project listed in subdivision 2, clause (1), plus an amount to be
applied to the payment of the costs of issuing the bonds;
new text end

new text begin (2) $300,000 for the project listed in subdivision 2, clause (2), plus an amount to be
applied to the payment of the costs of issuing the bonds;
new text end

new text begin (3) $250,000 for the project listed in subdivision 2, clause (3), plus an amount to be
applied to the payment of the costs of issuing the bonds;
new text end

new text begin (4) $150,000 for the project listed in subdivision 2, clause (4), plus an amount to be
applied to the payment of the costs of issuing the bonds; and
new text end

new text begin (5) $100,000 for the project listed in subdivision 2, clause (5), plus an amount to be
applied to the payment of the costs of issuing the bonds.
new text end

new text begin The bonds may be paid from or secured by any funds available to the city of Blackduck,
including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city
of Blackduck, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal and interest on the bonds is not subject to any levy limitation. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years
after being first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the
general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
if the city so determines by ordinance.
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 Blackduck and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 15. new text begin CITY OF BLOOMINGTON; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
the city of Bloomington may impose by ordinance a sales and use tax of one-half of one
percent for the purposes specified in subdivision 2. Except as otherwise provided in this
section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.
The tax imposed under this subdivision is in addition to any local sales and use tax imposed
under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin (a) The revenues derived from the tax
authorized under subdivision 1 must be used by the city of Bloomington to pay the costs of
collecting and administering the tax and paying for the following projects in the city,
including securing and paying debt service on bonds issued to finance all or part of the
following projects:
new text end

new text begin (1) $32,000,000 plus associated bonding costs for construction of improvements and
rehabilitation of the Bloomington Ice Garden and associated infrastructure;
new text end

new text begin (2) $70,000,000 plus associated bonding costs for construction of a new Community
Health and Wellness Center and associated infrastructure; and
new text end

new text begin (3) $33,000,000 plus associated bonding costs for construction of an expansion to the
Bloomington Center for the Arts Concert Hall and associated infrastructure.
new text end

new text begin (b)(1) For purposes of this subdivision, "associated infrastructure" includes any or all
of the following activities: demolition, reconstruction, expansion, improvement, construction,
or rehabilitation, related to the existing facility or the new project, or both.
new text end

new text begin (2) Associated infrastructure activities described in clause (1) include but are not limited
to the following activities associated with the capital project or projects that are needed for
safe access or use: facilities, roads, lighting, sidewalks, parking, landscaping, or utilities.
new text end

new text begin (3) Costs include all the costs associated with delivering the projects.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Bloomington may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
issued under this subdivision may not exceed:
new text end

new text begin (1) $32,000,000 for the project listed in subdivision 2, clause (1), plus an amount to be
applied to the payment of the costs of issuing the bonds;
new text end

new text begin (2) $70,000,000 for the project listed in subdivision 2, clause (2), plus an amount to be
applied to the payment of the costs of issuing the bonds; and
new text end

new text begin (3) $33,000,000 for the project listed in subdivision 2, clause (3), plus an amount to be
applied to the payment of the costs of issuing the bonds.
new text end

new text begin The bonds may be paid from or secured by any funds available to the city of Bloomington,
including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city
of Bloomington, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal and interest on the bonds is not subject to any levy limitation. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years
after being first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the
general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
if the city so determines by ordinance.
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 Bloomington and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 16. new text begin CITY OF BROOKLYN CENTER; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
the city of Brooklyn Center may impose by ordinance a sales and use tax of one-half of one
percent for the purposes specified in subdivision 2. Except as otherwise provided in this
section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.
The tax imposed under this subdivision is in addition to any local sales and use tax imposed
under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Brooklyn Center to pay the costs of collecting
and administering the tax and to finance up to $55,000,000, plus associated bonding costs,
for the renovation and expansion of the Brooklyn Center Community Center.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Brooklyn Center may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
authorized in subdivision 2. The aggregate principal amount of bonds issued under this
subdivision may not exceed $55,000,000 plus an amount to be applied to the payment of
the costs of issuing the bonds. The bonds may be paid from or secured by any funds available
to the city of Brooklyn Center, including the tax authorized under subdivision 1 and the full
faith and credit of the city. The issuance of bonds under this subdivision is not subject to
Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city
of Brooklyn Center and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal and interest on the bonds is not subject to any levy limitation. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years
after being first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the
general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
if the city so determines by ordinance.
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 Brooklyn Center and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 17. new text begin CITY OF EAST GRAND FORKS; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
the city of East Grand Forks may impose by ordinance a sales and use tax of 1.25 percent
for the purposes specified in subdivision 2. Except as otherwise provided in this section,
the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision. The tax imposed
under this subdivision is in addition to any local sales and use tax imposed under any other
special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of East Grand Forks to pay the costs of
collecting and administering the tax and paying for the following projects in the city,
including securing and paying debt service on bonds issued to finance all or part of the
following projects:
new text end

new text begin (1) $15,500,000 plus associated bonding costs for reconstruction and remodeling of,
and upgrades and additions to, the Civic Center Sports Complex; and
new text end

new text begin (2) $6,000,000 plus associated bonding costs for reconstruction and remodeling of, and
upgrades and additions to, the VFW Memorial and Blue Line Arena.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of East Grand Forks may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
issued under this subdivision may not exceed:
new text end

new text begin (1) $15,500,000 for the projects listed in subdivision 2, clause (1), plus an amount to be
applied to the payment of the costs of issuing the bonds; and
new text end

new text begin (2) $6,000,000 for the projects listed in subdivision 2, clause (2), plus an amount to be
applied to the payment of the costs of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city of East
Grand Forks, including the tax authorized under subdivision 1 and the full faith and credit
of the city. The issuance of bonds under this subdivision is not subject to Minnesota Statutes,
sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
of East Grand Forks and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal and interest on the bonds is not subject to any levy limitation. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years
after being first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the
general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
if the city so determines by ordinance.
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 East Grand Forks 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 GOLDEN VALLEY; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
the city of Golden Valley may impose by ordinance a sales and use tax of three-quarters of
one percent for the purposes specified in subdivision 2. Except as otherwise provided in
this section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.
The tax imposed under this subdivision is in addition to any local sales and use tax imposed
under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Golden Valley to pay the costs of collecting
and administering the tax and paying for the following projects in the city, including securing
and paying debt service on bonds issued to finance all or part of the following projects:
new text end

new text begin (1) $38,000,000 plus associated bonding costs for construction of a new public works
facility; and
new text end

new text begin (2) $35,000,000 plus associated bonding costs for construction of a new public safety
facility.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Golden Valley may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the projects
authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
issued under this subdivision may not exceed:
new text end

new text begin (1) $38,000,000 for the project listed in subdivision 2, clause (1), plus an amount to be
applied to the payment of the costs of issuing the bonds; and
new text end

new text begin (2) $35,000,000 for the project listed in subdivision 2, clause (2), plus an amount to be
applied to the payment of the costs of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city of Golden
Valley, including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
of Golden Valley, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal and interest on the bonds is not subject to any levy limitation. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 30 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the
general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
if the city so determines by ordinance.
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 Golden Valley and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 19. new text begin CITY OF HENDERSON; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
the city of Henderson may impose by ordinance a sales and use tax of one-half of one percent
for the purposes specified in subdivision 2. Except as otherwise provided in this section,
the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision. The tax imposed
under this subdivision is in addition to any local sales and use tax imposed under any other
special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Henderson to pay the costs of collecting
and administering the tax, and to finance up to $240,000 plus associated bonding costs for
the Allanson's Park Campground and Trail project. Authorized project costs include
improvements to trails, improvements to the park campground and related facilities, utility
improvements, handicap access improvements, and other improvements related to linkage
to other local trails, as well as the associated bond costs for any bonds issued under
subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Henderson may issue bonds under Minnesota
Statutes, chapter 475, to finance up to $240,000 of the portion of the costs of the project
authorized in subdivision 2, and approved by the voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
issued under this subdivision may not exceed $240,000 plus an amount to be applied to the
payment of the costs of issuing the bonds. The bonds may be paid from or secured by any
funds available to the city of Henderson, including the tax authorized under subdivision 1.
The issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections
275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city
of Henderson, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal and interest on the bonds is not subject to any levy limitation. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 15 years
after the tax is first imposed; or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the
general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
if the city so determines by ordinance.
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 Henderson 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 PROCTOR; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
the city of Proctor may impose by ordinance a sales and use tax of one-half of one percent
for the purposes specified in subdivision 2. Except as otherwise provided in this section,
the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision. The tax imposed
under this subdivision is in addition to any local sales and use tax imposed under any other
special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Proctor to pay the costs of collecting and
administering the tax and to finance up to $3,850,000 plus associated bonding costs for
construction of a new regional and statewide trail spur in the city, including securing and
paying debt service on bonds issued to finance all or part of the project.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin The city of Proctor may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $3,850,000, plus an amount to be applied to the payment of the costs of issuing
the bonds.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years
after being first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2, plus
an amount sufficient to pay the costs related to issuance of any bonds authorized under
subdivision 3, including interest on the bonds. Except as otherwise provided in Minnesota
Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining after payment
of the allowed costs due to the timing of the termination of the tax under Minnesota Statutes,
section 297A.99, subdivision 12, shall be placed in the general fund of the city. The tax
imposed under subdivision 1 may expire at an earlier time if the city so determines by
ordinance.
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 Proctor and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 21. new text begin RICE COUNTY; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law or ordinance, and if approved by the voters at a general
election as required under Minnesota Statutes, section 297A.99, subdivision 3, Rice County
may impose by ordinance a sales and use tax of three-eighths of one percent for the purposes
specified in subdivision 2. Except as otherwise provided in this section, the provisions of
Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and
enforcement of the tax authorized under this subdivision. The tax imposed under this
subdivision is in addition to any local sales and use tax imposed under any other special
law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by Rice County to pay the costs of collecting and
administering the tax and paying for up to $77,000,000 plus associated bonding costs for
construction of a public safety facility in the county, including associated bond costs for
any bonds issued under subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) Rice County may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the facilities authorized in subdivision
2 and approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this
subdivision may not exceed $77,000,000, plus an amount to be applied to the payment of
the costs of issuing the bonds. The bonds may be paid from or secured by any funds available
to Rice County, including the tax authorized under subdivision 1. The issuance of bonds
under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to Rice
County, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 30 years
after being first imposed, or (2) when the county board of commissioners determines that
the amount received from the tax is sufficient to pay for the project costs authorized under
subdivision 2, plus an amount sufficient to pay the costs related to issuance of any bonds
authorized under subdivision 3, including interest on the bonds. Except as otherwise provided
in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining
after payment of the allowed costs due to the timing of the termination of the tax under
Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of
the county. The tax imposed under subdivision 1 may expire at an earlier time if the county
so determines by ordinance.
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 Rice
County and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 22. new text begin CITY OF ROSEVILLE; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
the city of Roseville may impose by ordinance a sales and use tax of one-half of one percent
for the purposes specified in subdivision 2. Except as otherwise provided in this section,
the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision. The tax imposed
under this subdivision is in addition to any local sales and use tax imposed under any other
special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Roseville to pay the costs of collecting and
administering the tax and paying for the following projects in the city, including securing
and paying debt service on bonds issued to finance all or part of the following projects:
new text end

new text begin (1) $42,000,000 plus associated bonding costs for construction of a new maintenance
facility;
new text end

new text begin (2) $7,000,000 plus associated bonding costs for construction of a new license and
passport center; and
new text end

new text begin (3) $16,000,000 plus associated bonding costs for construction of a pedestrian bridge.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Roseville may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in
subdivision 2 and approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
under this subdivision may not exceed:
new text end

new text begin (1) $42,000,000 for the project listed in subdivision 2, clause (1), plus an amount to be
applied to the payment of the costs of issuing the bonds;
new text end

new text begin (2) $7,000,000 for the project listed in subdivision 2, clause (2), plus an amount to be
applied to the payment of the costs of issuing the bonds; and
new text end

new text begin (3) $16,000,000 for the project listed in subdivision 2, clause (3), plus an amount to be
applied to the payment of the costs of issuing the bonds.
new text end

new text begin The bonds may be paid from or secured by any funds available to the city of Roseville,
including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city
of Roseville, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 16 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the
general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
if the city so determines by ordinance.
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 Roseville and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 23. new text begin WINONA COUNTY; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
Winona County may impose, by ordinance, a sales and use tax of one-quarter of one percent
for the purposes specified in subdivision 2. Except as otherwise provided in this section,
the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision. The tax imposed
under this subdivision is in addition to any local sales and use tax imposed under any other
special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by Winona County to pay the costs of collecting and
administering the tax, and to finance up to $28,000,000 plus associated bonding costs for
construction of a new correctional facility or upgrades to an existing correctional facility,
as well as the associated bond costs for any bonds issued under subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) Winona County may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $28,000,000, plus an amount applied to the payment of costs of issuing the
bonds. The bonds may be paid from or secured by any funds available to the county,
including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the county.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin The tax imposed under subdivision 1 expires at the
earlier of: (1) 25 years after the tax is first imposed; or (2) when the county determines that
it has received from this tax $28,000,000 to fund the project listed in subdivision 2, plus an
amount sufficient to pay costs related to issuance of any bonds authorized under subdivision
3, including interest on the bonds. Except as otherwise provided in Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (f), any funds remaining after payment of the
allowed costs due to timing of the termination of the tax under Minnesota Statutes, section
297A.99, subdivision 12, shall be placed in the county's general fund. The tax imposed
under subdivision 1 may expire at an earlier time if the county determines by ordinance.
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
Winona County 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 WOODBURY; LOCAL LODGING TAX AUTHORIZED.
new text end

new text begin Notwithstanding the disposition of proceeds requirement in Minnesota Statutes, section
469.190, subdivision 3, or any other provision of law, ordinance, or city charter, the city
council for the city of Woodbury may by ordinance dedicate two-thirds of the revenue
derived from a tax imposed under Minnesota Statutes, section 469.190, to be used for capital
improvements to public recreational facilities. The remaining one-third must be used as
required under Minnesota Statutes, section 469.190, subdivision 3.
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 Woodbury and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

ARTICLE 8

RENTER'S TAX CREDIT

Section 1.

Minnesota Statutes 2020, section 270B.12, subdivision 8, is amended to read:

Subd. 8.

County assessors; homestead classification and deleted text begin renter deleted text end new text begin renter's new 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 290A deleted text end new text begin renter's credit under section 290.0693 new 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 credits based on rent paid after
December 31, 2021.
new text end

Sec. 2.

Minnesota Statutes 2020, 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 or deleted 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 credits based on rent paid after
December 31, 2021.
new text end

Sec. 3.

Minnesota Statutes 2020, 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 other deleted text end new text begin a new text end claimant is owed a property tax refund new text begin under chapter 290A new 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 credits based on rent paid after
December 31, 2021.
new text end

Sec. 4.

Minnesota Statutes 2020, 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 constituting
property tax to a renter, as required by deleted text begin section deleted text end new text begin sections 290.0693, subdivision 4, and new 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 credits based on rent paid after
December 31, 2021.
new text end

Sec. 5.

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 $530 per month.
The gross rent of a resident of an adult foster care home is $830 per month. The commissioner
shall annually adjust the amounts in this paragraph as provided in section 270C.22. The
statutory year is 2022. 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.
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 co-payment 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 Co-payment new text end	new text begin Maximum Credit new text end
new text begin $0 to 5,879 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 2,400 new text end
new text begin 5,880 to 7,809 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 2,400 new text end
new text begin 7,810 to 9,769 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 2,330 new text end
new text begin 9,770 to 13,699 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 2,280 new text end
new text begin 13,700 to 17,609 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 2,210 new text end
new text begin 17,610 to 19,559 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 2,150 new text end
new text begin 19,560 to 21,499 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 2,100 new text end
new text begin 21,500 to 25,429 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 2,030 new text end
new text begin 25,430 to 27,379 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 1,980 new text end
new text begin 27,380 to 29,329 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 1,980 new text end
new text begin 29,330 to 33,249 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 1,980 new text end
new text begin 33,250 to 35,189 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 1,980 new text end
new text begin 35,190 to 41,059 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 1,980 new text end
new text begin 41,060 to 46,919 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 1,980 new text end
new text begin 46,920 to 54,759 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 1,980 new text end
new text begin 54,760 to 56,699 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 1,800 new text end
new text begin 56,700 to 58,669 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 1,620 new text end
new text begin 58,670 to 60,629 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 1,370 new text end
new text begin 60,630 to 62,569 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 62,570 to 64,539 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 1,080 new text end
new text begin 64,540 to 66,489 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 600 new text end
new text begin 66,490 to 68,439 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 230 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 $68,440 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 2022.
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 three
years. The duplicate or other record must be made available to the commissioner upon
request.
new text end

new text begin (b) The commissioner may require the owner or managing agent, through a simple
process, to furnish to the commissioner on or before March 1 a copy of each certificate of
rent paid furnished to a renter for rent paid in the prior year. The commissioner shall prescribe
the content, format, and manner of the form pursuant to section 270C.30. The commissioner
may require the Social Security number, individual taxpayer identification number, federal
employer identification number, or Minnesota taxpayer identification number of the owner
or managing agent who is required to furnish a certificate of rent paid under this paragraph.
Before implementation, the commissioner, after consulting with representatives of owners
or managing agents, shall develop an implementation and administration plan for the
requirements of this paragraph that attempts to minimize financial burdens, administration
and compliance costs, and takes into consideration existing systems of owners and managing
agents.
new text end

new text begin Subd. 5. new text end

new text begin Eligibility; residency. new text end

new text begin (a) A taxpayer is eligible for the credit under this section
if the taxpayer is an individual, other than a dependent, as defined under sections 151 and
152 of the Internal Revenue Code, disregarding section 152(b)(3) of the Internal Revenue
Code, who filed for a credit and who was a resident of this state during the taxable year for
which the credit was claimed.
new text end

new text begin (b) In the case of a credit for rent constituting property taxes of a part-year Minnesota
resident, the household income and rent constituting property taxes reflected in this
computation shall be for the period of Minnesota residency only. Any rental expenses paid
that may be reflected in arriving at federal adjusted gross income cannot be utilized for this
computation.
new text end

new text begin (c) When two individuals of a household are able to meet the qualifications to claim a
credit under this section, the individuals may determine among them as to which individual
may claim the credit. If the individuals are unable to agree, the matter shall be referred to
the commissioner of revenue whose decision shall be final.
new text end

new text begin (d) To claim a credit under this section, the taxpayer must have resided in a rented or
leased unit on which ad valorem taxes or payments made in lieu of ad valorem taxes,
including payments of special assessments imposed in lieu of ad valorem taxes, are payable
at some time during the taxable year for which the taxpayer claimed the credit.
new text end

new text begin Subd. 6. new text end

new text begin Residents of nursing homes, intermediate care facilities, long-term care
facilities, or facilities accepting housing support payments. new text end

new text begin (a) A taxpayer must not claim
a credit under this section if the taxpayer is a resident of a nursing home, intermediate care
facility, long-term residential facility, or a facility that accepts housing support payments
whose rent constituting property taxes is paid pursuant to the Supplemental Security Income
program under title XVI of the Social Security Act, the Minnesota supplemental aid program
under sections 256D.35 to 256D.54, the medical assistance program pursuant to title XIX
of the Social Security Act, or the housing support program under chapter 256I.
new text end

new text begin (b) If only a portion of the rent constituting property taxes is paid by these programs,
the resident is eligible for a credit, but the credit calculated must be multiplied by a fraction,
the numerator of which is adjusted gross income, reduced by the total amount of income
from the above sources other than vendor payments under the medical assistance program
and the denominator of which is adjusted gross income, plus vendor payments under the
medical assistance program, to determine the allowable credit.
new text end

new text begin (c) Notwithstanding paragraphs (a) and (b), if the taxpayer was a resident of the nursing
home, intermediate care facility, long-term residential facility, or facility for which the rent
was paid for the claimant by the housing support program for only a portion of the taxable
year covered by the claim, the taxpayer may compute rent constituting property taxes by
disregarding the rent constituting property taxes from the nursing home or facility and may
use only that amount of rent constituting property taxes or property taxes payable relating
to that portion of the year when the taxpayer was not in the facility. The taxpayer's household
income is the income for the entire taxable year covered by the claim.
new text end

new text begin Subd. 7. new text end

new text begin Credit for unmarried taxpayers residing in the same household. new text end

new text begin If a
homestead is occupied by two or more renters who are not married to each other, the rent
shall be deemed to be paid equally by each renter, and separate claims shall be filed by each
renter. The income of each renter shall be each renter's household income for purposes of
computing the amount of credit to be allowed.
new text end

new text begin Subd. 8. new text end

new text begin One claimant per household. new text end

new text begin Only one taxpayer per household per year is
entitled to claim a credit under this section. In the case of a married taxpayer filing a separate
return, only one spouse may claim the credit under this section. The credit amount for the
spouse that claims the credit must be calculated based on household income and not solely
on the income of the spouse.
new text end

new text begin Subd. 9. new text end

new text begin Proof of claim. new text end

new text begin (a) Every taxpayer claiming a credit under this section shall
supply to the commissioner of revenue, in support of the claim, proof of eligibility under
this section, including but not limited to amount of rent paid, name and address of owner
or managing agent of property rented, changes in household membership, and household
income.
new text end

new text begin (b) Taxpayers with a disability shall submit proof of disability in the form and manner
as the commissioner prescribes. The department may require examination and certification
by the taxpayer's physician or by a physician designated by the commissioner. The cost of
any examination shall be borne by the taxpayer, unless the examination proves the disability,
in which case the cost of the examination shall be borne by the commissioner.
new text end

new text begin (c) A determination of disability of a taxpayer by the Social Security Administration
under Title II or Title XVI of the Social Security Act shall constitute presumptive proof of
disability.
new text end

new text begin Subd. 10. new text end

new text begin No relief allowed in certain cases. new text end

new text begin No claim for a credit under this section
shall be allowed if the commissioner determines that the claimant received tenancy to the
homestead primarily for the purpose of receiving a credit under this section and not for bona
fide residence purposes.
new text end

new text begin Subd. 11. new text end

new text begin Appropriation. new text end

new text begin The amount necessary to pay the refunds under this section
is appropriated from the general fund to the commissioner.
new text end

new text begin Subd. 12. new text end

new text begin Simplified filing for individuals without an income tax liability. new text end

new text begin The
commissioner of revenue must establish a simplified filing process through which a taxpayer
who did not file an individual income tax return due to a lack of tax liability may file a
return to claim the credit under this section. The filing process and forms may be in the
form or manner determined by the commissioner, but must be designed to reduce the
complexity of the filing process and the time needed to file for individuals without an income
tax liability.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2021.
new text end

Sec. 6.

Minnesota Statutes 2020, 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 rent deleted 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 2022
and following years.
new text end

Sec. 7.

Minnesota Statutes 2021 Supplement, 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 paid deleted 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 2022
and following years.
new text end

Sec. 8.

Minnesota Statutes 2020, 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 be deleted text end new text begin as new 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 2022
and following years.
new text end

Sec. 9.

Minnesota Statutes 2020, 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 2022
and following years.
new text end

Sec. 10.

Minnesota Statutes 2020, 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 a new text begin site on which a new text end homestead, deleted 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 not deleted text end new text begin which is a manufactured home as defined in section 273.125,
subdivision 8, including a manufactured home 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, is located new 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 6 deleted 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 2022
and following years.
new text end

Sec. 11.

Minnesota Statutes 2020, 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 taxes deleted text end exceed the percentage of the
household income of the claimant specified in subdivision 2 deleted text begin or 2a deleted text end in the year for which the
taxes were levied deleted text begin or in the year in which the rent was paid deleted text end as specified in subdivision 2 deleted text begin or
2a deleted text end . If the amount of property taxes payable deleted text begin or rent constituting property taxes deleted 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 2a deleted text end in the year for which the taxes were levied deleted text begin or in the year in which the rent was paid deleted 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 2022
and following years.
new text end

Sec. 12.

Minnesota Statutes 2020, 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 deleted text begin subdivisions deleted text end new text begin subdivision new text end
2 deleted text begin and 2a deleted text end as provided in section 270C.22. The statutory year is 2018.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims based on rent paid in 2022
and following years.
new text end

Sec. 13.

Minnesota Statutes 2020, section 290A.05, is amended to read:

290A.05 COMBINED HOUSEHOLD INCOME new text begin ; RENTAL AGREEMENTS AND
REDUCTION OF PROPERTY TAXES PAYABLE new 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 If deleted text end new text begin and new text end the other person or persons are residing at the homestead under new text begin a new text end rental or lease
agreement new text begin with the homeowner new text end , the amount of property tax payable deleted text begin or rent constituting
property tax shall be deleted text end new text begin equals new 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 2022
and property taxes payable in 2023, and following years.
new text end

Sec. 14.

Minnesota Statutes 2020, section 290A.07, subdivision 2a, is amended to read:

Subd. 2a.

Time of payment to deleted text begin renter or deleted text end manufactured home homeowner.

A claimant
who is deleted text begin a renter or deleted 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 2022
and following years.
new text end

Sec. 15.

Minnesota Statutes 2020, 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 income deleted 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 2022
and following years.
new text end

Sec. 16.

Minnesota Statutes 2020, section 290A.09, is amended to read:

290A.09 PROOF OF CLAIM.

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 or deleted 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.

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.

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 2022
and following years.
new text end

Sec. 17.

Minnesota Statutes 2020, 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 unit deleted text end new text begin claim the renter's credit under section 290.0693 new 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 2022
and following years.
new text end

Sec. 18.

Minnesota Statutes 2020, 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 tenancy deleted 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 2022
and following years.
new text end

Sec. 19.

Minnesota Statutes 2020, 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 any deleted text end new text begin of a new 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 agent deleted 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
agent deleted 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 agent deleted 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. Prior to
implementation, the commissioner, after consulting with representatives of new text begin park new text end owners deleted text begin or
managing agents deleted 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 agents deleted text end .

(c) For the purposes of this section, deleted text begin "owner" includes deleted text end new text begin "park owner" means new text end a park owner
as defined under section 327C.01, subdivision 6, and "property" includes a lot as defined
under section 327C.01, subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims based on rent paid in 2022
and following years.
new text end

Sec. 20.

Minnesota Statutes 2020, section 290A.25, is amended to read:

290A.25 VERIFICATION OF SOCIAL SECURITY NUMBERS.

Annually, the commissioner of revenue shall furnish a list to the county assessor
containing the names and Social Security numbers of persons who have applied for both
homestead classification under section 273.13 and a deleted text begin property tax refund as a renter under
this chapter deleted text end new text begin renter's credit under section 290.0693 new 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 2022
and following years.
new text end

Sec. 21.

Minnesota Statutes 2020, 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 2022
and following years.
new text end

Sec. 22. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2020, sections 290A.03, subdivisions 9 and 11; 290A.04, subdivisions
2a and 5; 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 2022
and following years.
new text end

ARTICLE 9

PUBLIC FINANCE

Section 1.

Minnesota Statutes 2020, 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 ten deleted text end new text begin 20 new text end years and must be issued on the terms and in the manner
determined by the board deleted text begin , except that certificates or notes issued to prepay special assessments
must be payable in not more than 20 years deleted 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 or an outstanding debt service loan under section 126C.68 must not use an
excess amount in the debt redemption fund to retire the certificates or notes.

Sec. 2.

Minnesota Statutes 2020, 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 law. The
certificates shall be payable in not more than deleted text begin ten deleted text end new text begin 20 new text end years and be issued on the terms and
in the manner deleted text begin as deleted text end new text begin determined by new 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 years deleted 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. 3.

Minnesota Statutes 2020, 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 ten deleted text end new text begin 20 new text end years and shall be issued on new text begin the new text end terms and in
deleted text begin a deleted text end new text begin the new text end manner new text begin determined by new text end the board deleted text begin determines deleted 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, deleted text begin and deleted text end medical equipment new text begin ,
and other capital equipment new text end ; and

(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 software.

Sec. 4.

Minnesota Statutes 2020, 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 equipment 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 ten deleted text end new text begin 20 new text end years and shall be issued on new text begin the new text end terms and in deleted text begin a deleted text end new text begin the new text end manner deleted text begin as deleted text end new text begin determined by new 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 years deleted 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. 5.

Minnesota Statutes 2020, 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; and

(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 software.

(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 ten deleted text end new text begin 20 new text end years and be issued on new text begin the new text end terms
and in the manner new text begin determined by new 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 years deleted 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. 6.

Minnesota Statutes 2020, 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; and

(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 software.

(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 ten deleted text end new text begin 20 new text end years and shall
be issued on deleted text begin such deleted text end new text begin the new text end terms and in deleted text begin such deleted text end new text begin the new text end manner deleted text begin as deleted text end new text begin determined by new 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 years deleted 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.

ARTICLE 10

MISCELLANEOUS

Section 1.

Minnesota Statutes 2021 Supplement, section 16A.152, subdivision 2, is
amended to read:

Subd. 2.

Additional revenues; priority.

(a) If on the basis of a forecast of general fund
revenues and expenditures, the commissioner of management and budget determines that
there will be a positive unrestricted budgetary general fund balance at the close of the
biennium, the commissioner of management and budget must allocate money to the following
accounts and purposes in priority order:

(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;

(2) the budget reserve account established in subdivision 1a until that account reaches
$2,377,399,000;

(3) the amount necessary to increase the aid payment schedule for school district aids
and credits payments in section 127A.45 to not more than 90 percent rounded to the nearest
tenth of a percent without exceeding the amount available and with any remaining funds
deposited in the budget reserve;

(4) the amount necessary to restore all or a portion of the net aid reductions under section
127A.441 and to reduce the property tax revenue recognition shift under section 123B.75,
subdivision 5, by the same amount;

(5) the amount necessary to increase the Minnesota 21st century fund by not more than
the difference between $5,000,000 and the sum of the amounts credited and canceled to it
in the previous 12 months under Laws 2020, chapter 71, article 1, section 11, until the sum
of all transfers under this section and all amounts credited or canceled under Laws 2020,
chapter 71, article 1, section 11, equals $20,000,000; deleted text begin and
deleted text end

(6) for a forecast in November only, the amount remaining after the transfer under clause
(5) must be used to reduce the percentage of accelerated June liability new text begin mortgage registry,
deed, new text end sales new text begin , cigarette and tobacco, and liquor new text end tax payments required under deleted text begin section deleted text end new text begin sections
287.12, paragraph (c); 287.29, subdivision 1, paragraph (c); new text end 289A.20, subdivision 4,
paragraph (b) deleted text begin , deleted text end new text begin ; 297F.09, subdivision 10; and 297G.09, subdivision 9, new text end until the percentage
equals zero, rounded to the nearest tenth of a percent. By March 15 following the November
forecast, the commissioner must provide the commissioner of revenue with the percentage
of accelerated June liability owed based on the reduction required by this clause. By April
15 each year, the commissioner of revenue must certify the percentage of June liability
owed by vendors new text begin , counties, new text end new text begin and distributors new text end based on the reduction required by this clause deleted text begin . deleted text end new text begin ;
and
new text end

new text begin (7) for a forecast in November only, the amount remaining after the transfer under clause
(6) must be used to decrease the percentage of the aids payable in calendar year 2023 and
every year thereafter for the payments due on July 20 under section 477A.015 until the
percentage equals zero, rounded to the nearest tenth of a percent. By January 15 following
the November forecast, the commissioner must provide the commissioner of revenue with
the percentage reduction in the payments due on July 20, based on the reductions required
by this clause. By February 15 each year, the commissioner of revenue must notify local
taxing jurisdictions of the percentage reduction for the payments due on July 20, based on
the reduction of the payments due on July 20 required by this clause.
new text end

(b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
schedules otherwise established in statute.

(c) The commissioner of management and budget shall certify the total dollar amount
of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of education.
The commissioner of education shall increase the aid payment percentage and reduce the
property tax shift percentage by these amounts and apply those reductions to the current
fiscal year and thereafter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2022.
new text end

Sec. 2.

Minnesota Statutes 2020, 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. 3.

Minnesota Statutes 2020, section 287.12, is amended to read:

287.12 TAXES, HOW APPORTIONED.

(a) All taxes paid to the county treasurer under the provisions of sections 287.01 to
287.12 must be apportioned, 97 percent to the general fund of the state, and three percent
to the county revenue fund.

(b) On or before the 20th day of each month the county treasurer shall determine and
pay to the commissioner of revenue for deposit in the state treasury and credit to the general
fund the state's portion of the receipts from the mortgage registry tax during the preceding
month subject to the electronic payment requirements of section 270C.42. The county
treasurer shall provide any related reports requested by the commissioner of revenue.

(c) Counties must remit new text begin 100 percent of new text end the state's portion of the June receipts collected
through June 25 new text begin , or a reduced percentage of the June receipts as certified by the commissioner
under section 16A.152, subdivision 2, paragraph (a), clause (6), new text end and new text begin 100 percent of new text end the
estimated state's portion of the receipts to be collected during the remainder of the month new text begin
or a reduced percentage of the June receipts as certified by the commissioner under section
16A.152, subdivision 2, paragraph (a), clause (6), new text end to the commissioner of revenue two
business days before June 30 of each year. The remaining amount of the June receipts is
due on August 20. new text begin This paragraph expires after the percentage of estimated payment is
reduced to zero in accordance with section 16A.152, subdivision 2, paragraph (a), clause
(6).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for remittances required after July 1,
2022.
new text end

Sec. 4.

Minnesota Statutes 2020, section 287.29, is amended to read:

287.29 PAYMENT OF RECEIPTS TO STATE GENERAL FUND; REPORTS.

Subdivision 1.

Appointment and payment of tax proceeds.

(a) The proceeds of the
taxes levied and collected under sections 287.21 to 287.385 must be apportioned, 97 percent
to the general fund of the state, and three percent to the county revenue fund.

(b) On or before the 20th day of each month, the county treasurer shall determine and
pay to the commissioner of revenue for deposit in the state treasury and credit to the general
fund the state's portion of the receipts for deed tax from the preceding month subject to the
electronic transfer requirements of section 270C.42. The county treasurer shall provide any
related reports requested by the commissioner of revenue.

(c) Counties must remit new text begin 100 percent of new text end the state's portion of the June receipts collected
through June 25 new text begin , or a reduced percentage of the June receipts as certified by the commissioner
under section 16A.152, subdivision 2, paragraph (a), clause (6), new text end and new text begin 100 percent of new text end the
estimated state's portion of the receipts to be collected during the remainder of the month new text begin
or a reduced percentage of the June receipts as certified by the commissioner under section
16A.152, subdivision 2, paragraph (a), clause (6), new text end to the commissioner of revenue two
business days before June 30 of each year. The remaining amount of the June receipts is
due on August 20. new text begin This paragraph expires after the percentage of estimated payment is
reduced to zero in accordance with section 16A.152, subdivision 2, paragraph (a), clause
(6).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for remittances required after July 1,
2022.
new text end

Sec. 5.

Minnesota Statutes 2020, section 287.31, subdivision 3, is amended to read:

Subd. 3.

Underpayments of accelerated payment of June tax receipts.

new text begin (a) new text end If a county
fails to timely remit the state portion of the actual June tax receipts at the time required by
section 287.12 or 287.29, the county shall pay a penalty equal to ten percent of the state
portion of actual June receipts new text begin , or a reduced percentage of the June receipts as certified by
the commissioner under section 16A.152, subdivision 2, paragraph (a), clause (6), new text end less the
amount remitted to the commissioner of revenue in June. The penalty must not be imposed,
however, if the amount remitted in June equals either:

(1) 90 percent of the state's portion of the preceding May's receipts new text begin , or a reduced
percentage of the May receipts using the reduced percentage for June receipts as certified
by the commissioner under section 16A.152, subdivision 2, paragraph (a), clause (6) new text end ; or

(2) 90 percent of the average monthly amount of the state's portion for the previous
calendar year new text begin , or a reduced percentage of the average receipts using the reduced percentage
for June receipts as certified by the commissioner under section 16A.152, subdivision 2,
paragraph (a), clause (6) new text end .

new text begin (b) This subdivision expires after the percentage of estimated payment is reduced to
zero in accordance with section 16A.152, subdivision 2, paragraph (a), clause (6).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for remittances required after July 1,
2022.
new text end

Sec. 6.

Minnesota Statutes 2020, 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 $1,939 new text end	1.0 percent	15 percent	$	deleted text begin 2,770 deleted text end new text begin 3,290 new text end
deleted text begin 1,740 to 3,459 deleted text end new text begin $1,940 to $3,859 new text end	1.1 percent	15 percent	$	deleted text begin 2,770 deleted text end new text begin 3,290 new text end
deleted text begin 3,460 to 5,239 deleted text end new text begin $3,860 to $5,849 new text end	1.2 percent	15 percent	$	deleted text begin 2,770 deleted text end new text begin 3,290 new text end
deleted text begin 5,240 to 6,989 deleted text end new text begin $5,850 to $7,799 new text end	1.3 percent	20 percent	$	deleted text begin 2,770 deleted text end new text begin 3,290 new text end
deleted text begin 6,990 to 8,719 deleted text end new text begin $7,800 to $9,729 new text end	1.4 percent	20 percent	$	deleted text begin 2,770 deleted text end new text begin 3,290 new text end
deleted text begin 8,720 to 12,219 deleted text end new text begin $9,730 to $13,639 new text end	1.5 percent	20 percent	$	deleted text begin 2,770 deleted text end new text begin 3,290 new text end
deleted text begin 12,220 to 13,949 deleted text end new text begin $13,640 to $15,569 new text end	1.6 percent	20 percent	$	deleted text begin 2,770 deleted text end new text begin 3,290 new text end
deleted text begin 13,950 to 15,709 deleted text end new text begin $15,570 to $17,529 new text end	1.7 percent	20 percent	$	deleted text begin 2,770 deleted text end new text begin 3,290 new text end
deleted text begin 15,710 to 17,449 deleted text end new text begin $17,530 to $19,479 new text end	1.8 percent	20 percent	$	deleted text begin 2,770 deleted text end new text begin 3,290 new text end
deleted text begin 17,450 to 19,179 deleted text end new text begin $19,480 to $21,409 new text end	1.9 percent	25 percent	$	deleted text begin 2,770 deleted text end new text begin 3,290 new text end
deleted text begin 19,180 to 24,429 deleted text end new text begin $21,410 to $27,269 new text end	deleted text begin 2.0 percent deleted text end new text begin 1.9 percent new text end	25 percent	$	deleted text begin 2,770 deleted text end new text begin 3,290 new text end
deleted text begin 24,430 to 26,169 deleted text end new text begin $27,270 to $29,209 new text end	deleted text begin 2.0 percent deleted text end new text begin 1.9 percent new text end	30 percent	$	deleted text begin 2,770 deleted text end new text begin 3,290 new text end
deleted text begin 26,170 to 29,669 deleted text end new text begin $29,210 to $33,119 new text end	deleted text begin 2.0 percent deleted text end new text begin 1.9 percent new text end	30 percent	$	deleted text begin 2,770 deleted text end new text begin 3,290 new text end
deleted text begin 29,670 to 41,859 deleted text end new text begin $33,120 to $46,719 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 3,290 new text end
deleted text begin 41,860 to 61,049 deleted text end new text begin $46,720 to $68,139 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 2,700 new text end
deleted text begin 61,050 to 69,769 deleted text end new text begin $68,140 to $77,869 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 2,390 new text end
deleted text begin 69,770 to 78,499 deleted text end new text begin $77,870 to $87,619 new text end	2.1 percent	40 percent	$	deleted text begin 1,620 deleted text end new text begin 2,010 new text end
deleted text begin 78,500 to 87,219 deleted text end new text begin $87,620 to $97,349 new text end	2.2 percent	40 percent	$	deleted text begin 1,450 deleted text end new text begin 1,820 new text end
deleted text begin 87,220 to 95,939 deleted text end new text begin $97,350 to $107,079 new text end	2.3 percent	40 percent	$	deleted text begin 1,270 deleted text end new text begin 1,620 new text end
deleted text begin 95,940 to 101,179 deleted text end new text begin $107,080 to $112,929 new text end	2.4 percent	45 percent	$	deleted text begin 1,070 deleted text end new text begin 1,390 new text end
deleted text begin 101,180 to 104,689 deleted text end new text begin $112,930 to $116,849 new text end	2.5 percent	45 percent	$	deleted text begin 890 deleted text end new text begin 1,190 new text end
deleted text begin 104,690 to 108,919 deleted text end new text begin $116,850 to $121,569 new text end	2.5 percent	50 percent	$	deleted text begin 730 deleted text end new text begin 1,010 new text end
deleted text begin 108,920 to 113,149 deleted text end new text begin $121,570 to $126,289 new text end	2.5 percent	50 percent	$	deleted text begin 540 deleted text end new text begin 800 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 $113,150 deleted text end new text begin
$126,290 new 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 2023 and following years.
new text end

Sec. 7.

Minnesota Statutes 2020, 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 deleted text begin 12 deleted text end new text begin ten new text end 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 deleted text begin 12 deleted text end new text begin ten new text end 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 deleted text begin $1,000 deleted text end new text begin $2,000 new text end .

(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 on a magnetic computer disk.
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 for refund claims based on taxes payable
in 2023 and thereafter.
new text end

Sec. 8.

Minnesota Statutes 2020, 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 2022. 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 2024 and following years.
new text end

Sec. 9.

Minnesota Statutes 2021 Supplement, section 297F.09, subdivision 10, is amended
to read:

Subd. 10.

Accelerated tax payment.

A cigarette distributor, tobacco products distributor,
retailer, or out-of-state retailer having a liability of $250,000 or more during a fiscal year
ending June 30, shall remit the June liability for the next year in the following manner:

(a) Two business days before June 30 of calendar year 2021, the distributor shall remit
the actual May liability and 87.5 percent of the estimated June liability to the commissioner
and file the return in the form and manner prescribed by the commissioner. Two business
days before June 30 of calendar year 2022 and each calendar year thereafter, the distributor
must remit the actual May liability and 84.5 percent new text begin , or a reduced percentage as certified
by the commissioner under section 16A.152, subdivision 2, paragraph (a), clause (6), new text end of the
estimated June liability to the commissioner and file the return in the form and manner
prescribed by the commissioner.

(b) On or before August 18 of the year, the distributor, retailer, or out-of-state retailer
shall submit a return showing the actual June liability and pay any additional amount of tax
not remitted in June. A penalty is imposed equal to ten percent of the amount of June liability
required to be paid in June, less the amount remitted in June. However, the penalty is not
imposed if the amount remitted in June equals:

(1) for calendar year 2021, the lesser of 87.5 percent of the actual June liability for that
calendar year or 87.5 percent of the May liability for that calendar year; or

(2) for calendar year 2022 and each calendar year thereafter, the lesser of 84.5 percent new text begin ,
or a reduced percentage as certified by the commissioner under section 16A.152, subdivision
2, paragraph (a), clause (6), new text end of the actual June liability for that calendar year or 84.5 percent new text begin ,
or a reduced percentage as certified by the commissioner under section 16A.152, subdivision
2, paragraph (a), clause (6), new text end of the May liability for that calendar year.

new text begin (c) This subdivision expires after the percentage of estimated payment is reduced to zero
in accordance with section 16A.152, subdivision 2, paragraph (a), clause (6).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estimated payments required to be
made after July 1, 2022.
new text end

Sec. 10.

Minnesota Statutes 2021 Supplement, section 297G.09, subdivision 9, is amended
to read:

Subd. 9.

Accelerated tax payment; penalty.

A person liable for tax under this chapter
having a liability of $250,000 or more during a fiscal year ending June 30, shall remit the
June liability for the next year in the following manner:

(a) Two business days before June 30 of calendar year 2021, the taxpayer shall remit
the actual May liability and 87.5 percent of the estimated June liability to the commissioner
and file the return in the form and manner prescribed by the commissioner. Two business
days before June 30 of calendar year 2022 and each calendar year thereafter, the distributor
must remit the actual May liability and 84.5 percent new text begin , or a reduced percentage as certified
by the commissioner under section 16A.152, subdivision 2, paragraph (a), clause (6), new text end of the
estimated June liability to the commissioner and file the return in the form and manner
prescribed by the commissioner.

(b) On or before August 18 of the year, the taxpayer shall submit a return showing the
actual June liability and pay any additional amount of tax not remitted in June. A penalty
is imposed equal to ten percent of the amount of June liability required to be paid in June
less the amount remitted in June. However, the penalty is not imposed if the amount remitted
in June equals:

(1) for calendar year 2021, the lesser of 87.5 percent of the actual June liability for that
calendar year or 87.5 percent of the May liability for that calendar year; or

(2) for calendar year 2022 and each calendar year thereafter, the lesser of 84.5 percent new text begin ,
or a reduced percentage as certified by the commissioner under section 16A.152, subdivision
2, paragraph (a), clause (6), new text end of the actual June liability for that calendar year or 84.5 percent new text begin ,
or a reduced percentage as certified by the commissioner under section 16A.152, subdivision
2, paragraph (a), clause (6), new text end of the May liability for that calendar year.

new text begin (c) This subdivision expires after the percentage of estimated payment is reduced to zero
in accordance with section 16A.152, subdivision 2, paragraph (a), clause (6).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estimated payments required to be
made after July 1, 2022.
new text end

Sec. 11.

Minnesota Statutes 2020, 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 chapter new text begin , 73 percent in fiscal year 2023 and thereafter new text end
must be credited to the environmental fund established in section 16A.531, subdivision 1.

(b) The remainder must be deposited into the general fund.

new text begin (c) Beginning in fiscal year 2023 and continuing each year thereafter, the difference
between the amount deposited in the environmental fund under paragraph (a) and the amount
that would have been deposited under paragraph (a) before being amended by this act must
be expended on activities listed in 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. 12.

Minnesota Statutes 2020, 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)(i) for distributions in 2015 through deleted text begin 2023 deleted text end new text begin 2043 new text end , ten cents per taxable ton of the tax
imposed under section 298.24; and

(ii) for distributions beginning in deleted text begin 2024 deleted text end new text begin 2044 new text end , five cents per taxable ton of the tax imposed
under section 298.24;

(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. 13.

Minnesota Statutes 2020, section 298.28, subdivision 9b, is amended to read:

Subd. 9b.

Taconite environmental fund.

Five cents per ton new text begin through distributions in
2043 new text end must be paid to the taconite environmental fund for use under section 298.2961,
subdivision 4. new text begin Beginning with distributions in 2044, ten cents per ton must be paid to the
taconite environmental fund of which five cents per ton must be used as provided under
section 298.2961, subdivision 4.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 14.

new text begin [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 the type or class of lodging business that is
described in the municipality's ordinance, which benefits from district activities, adopted
under section 428B.02.
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. 15.

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. 16.

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. 17.

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. 18.

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. 19.

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. 20.

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. 21.

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. 22.

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. 23.

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. 24.

Minnesota Statutes 2020, 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 grants new text begin and loans new text end to cities,
new text begin counties, new text end 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 grant deleted text end new text begin this new 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 grants new text begin and loans new text end under this section. The commissioner shall
consult with interested stakeholders when developing the guidelines and procedures for the
program. In making grants new text begin and loans new text end , the commissioner shall establish semiannual application
deadlines in which grants new text begin and loans new text end will be authorized from all or part of the available
appropriations.

Subd. 4.

Awarding grants new text begin and loans new 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 grants new text begin and loans new text end in
approximately equal amounts to applicants outside and within the metropolitan area new text begin , as
defined in section 473.121, subdivision 2 new text end .

Subd. 6.

Report.

Beginning January 15, deleted text begin 2018 deleted text end new text begin 2023 new 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 grants new text begin and loans new text end under this section and the specific
purposes for which the grant new text begin or loan new 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 or to pay debt service on bonds.
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 fiscal years 2023 to 2030, an amount equal
to $10,000,000 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 appropriation must be made annually by September 15.
new text end

new text begin (b) All loan repayments received under this section are to be deposited into the workforce
and affordable homeownership development account in the housing development fund.
new text end

new text begin (c) This subdivision expires September 16, 2029.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2022.
new text end

Sec. 25.

Minnesota Statutes 2020, section 477A.015, is amended to read:

477A.015 PAYMENT DATES.

(a) The commissioner of revenue shall new text begin annually new text end make the payments of local government
aid to affected taxing authorities in two installments new text begin . Except as provided in paragraph (b),
the first installment of 50 percent, or a reduced percentage certified by the commissioner
under section 16A.152, subdivision 2, paragraph (a), clause (7), of the payment is due new text end on
July 20 and new text begin the remaining amount of the first installment, if any, is due on March 15. The
second installment of 50 percent is due on new text end December 26 deleted text begin annually deleted text end .

(b) new text begin The reduced percentage certified by the commissioner under section 16A.152,
subdivision 2, paragraph (a), clause (7), does not apply to aid payments made pursuant to
sections 6.91, 162.145, 477A.13, 477A.15, and 477A.23. new text end deleted text begin Notwithstanding paragraph (a),
for aids payable in 2019 only, the commissioner of deleted text end deleted text begin revenue shall make payments of the aid
payable under section deleted text end deleted text begin 477A.013, subdivision 9 deleted text end deleted text begin , in deleted text end deleted text begin three installments as follows: (1) 14.6
percent of the aid shall be paid on June 15, 2019; (2) deleted text end deleted text begin 35.4 percent of the aid shall be paid
on July 20, 2019; and (3) 50 percent of the aid shall be deleted text end deleted text begin paid on December 26, 2019.
deleted text end

(c) When the commissioner of public safety determines that a local government has
suffered financial hardship due to a natural disaster, the commissioner of public safety shall
notify the commissioner of revenue, who shall make payments of aids under sections
477A.011 to 477A.014, which are otherwise due on December 26, as soon as is practical
after the determination is made but not before July 20.

(d) The commissioner may pay all or part of the payments of aids under sections
477A.011 to 477A.014, which are due on December 26 at any time after August 15 if a
local government requests such payment as being necessary for meeting its cash flow needs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2023
and thereafter.
new text end

Sec. 26. 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 after the governing body of the
city of Virginia and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 27. new text begin POLAR VORTEX RESPONSE; DISCLOSURE OF COSTS;
REIMBURSEMENT FOR RESERVE FUNDS.
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) "Critical period" means the period beginning February 12, 2021, and ending February
17, 2021.
new text end

new text begin (c) "Impacted volume" means the volume of natural gas a utility purchased for immediate
delivery in Minnesota during the critical period.
new text end

new text begin (d) "Incremental cost" means the incremental cost of natural gas purchased during the
critical period, calculated by multiplying the utility's incremental price by its impacted
volume.
new text end

new text begin (e) "Incremental price" means the average unit price a utility paid for natural gas
purchased for immediate delivery during the critical period, minus the average natural gas
unit price for wholesale natural gas the utility paid during the period between February 5,
2021, and February 10, 2021.
new text end

new text begin (f) "Utility" means a nonprofit municipal utility established under Minnesota Statutes,
chapter 412, that (1) is owned by the city to which it provides service, and (2) sells natural
gas to retail customers in Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Utilities must disclose increased energy costs. new text end

new text begin No later than July 1, 2022, a
utility must calculate, for each customer to which the utility provided natural gas service
during the critical period, the incremental price multiplied by the volume of natural gas
consumed by the customer during the critical period. The utility must certify and forward
that calculation in a written notice to each customer.
new text end

new text begin Subd. 3. new text end

new text begin Reimbursement for reserve revenues. new text end

new text begin A utility that paid for wholesale natural
gas purchased during the critical period, in whole or in part, by drawing down accumulated
reserve revenues may apply to the commissioner of commerce for a rebate equal to its
incremental cost minus any payment of its incremental cost by natural gas customers. The
commissioner shall require a utility to submit evidence supporting the rebate request amount
with a rebate application.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin $20,000,000 in fiscal year 2023 is appropriated from the general
fund to the commissioner of commerce for the purpose of making rebates to municipal
utilities under subdivision 3. This is a onetime appropriation. Any unexpended funds
remaining on December 31, 2022, cancel to the general fund.
new text end

Sec. 28. new text begin TAX CREDIT FOR EXCESS ENERGY COSTS DUE TO THE POLAR
VORTEX.
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) "Excess energy costs" means the amount of energy costs disclosed to a taxpayer by
a utility under section 27, subdivision 2, but is limited to amounts actually paid by the
taxpayer.
new text end

new text begin (c) The definitions in section 27, subdivision 1, and Minnesota Statutes, section 290.01,
apply for this section.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) An individual income taxpayer is allowed a credit against
the tax due under Minnesota Statutes, chapter 290, equal to the amount of the taxpayer's
excess energy costs.
new text end

new text begin (b) Credits allowed to a partnership, a limited liability company taxed as a partnership,
or an S corporation are passed through pro rata to the partners, members, or shareholders
based on their share of the entity's income for the taxable year.
new text end

new text begin Subd. 3. new text end

new text begin Credit refundable. new text end

new text begin (a) If the amount of credit which a taxpayer would be
eligible to receive under this section exceeds the claimant's tax liability under Minnesota
Statutes, chapter 290, the excess amount of the credit shall be refunded to the claimant by
the commissioner of revenue.
new text end

new text begin (b) An amount sufficient to pay the refunds required by this section is appropriated to
the commissioner of revenue from the general fund.
new text end

new text begin Subd. 4. new text end

new text begin Denial of double benefit. new text end

new text begin For a taxpayer who deducted excess energy costs in
calculating adjusted gross income and claimed the credit under this section, the amount of
excess energy costs is an addition, as defined in Minnesota Statutes, section 290.0131,
subdivision 1. The rules governing additions in that section apply for this subdivision.
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. 29. new text begin INCOME TAX SUBTRACTION; COVID-19 BUSINESS ASSISTANCE
PROGRAMS.
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:
new text end

new text begin (1) for an individual, estate, or trust, "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 (2) for a corporation other than an S corporation, "subtraction" has the meaning given
in Minnesota Statutes, section 290.0134, subdivision 1, and the rules in that subdivision
apply for this section;
new text end

new text begin (3) the definitions in Minnesota Statutes, section 290.01, apply for this section; and
new text end

new text begin (4) "qualifying business assistance" means grants, forgivable loans, and other financial
assistance to businesses by the state, county, or local government that were included in
adjusted gross income, and that meet the criteria in subdivision 4.
new text end

new text begin Subd. 2. new text end

new text begin Business assistance subtraction; individuals, estates, and trusts. new text end

new text begin For an
individual, estate, or trust, the amount of qualifying business assistance is a subtraction.
new text end

new text begin Subd. 3. new text end

new text begin Business assistance subtraction; C corporations. new text end

new text begin For a corporation other
than an S corporation, the amount of qualifying business assistance is a subtraction.
new text end

new text begin Subd. 4. new text end

new text begin Programs eligible for a subtraction. new text end

new text begin Only qualifying business assistance
provided under the following sections of state or federal law is considered qualifying business
assistance for the purposes of this section:
new text end

new text begin (1) business assistance provided under section 30, subdivision 2;
new text end

new text begin (2) forgivable loans under Executive Order No. 20-15;
new text end

new text begin (3) small business relief grants under Laws 2020, First Special Session chapter 1, section
4;
new text end

new text begin (4) business relief payments under Laws 2020, Seventh Special Session chapter 2, article
1;
new text end

new text begin (5) grants to movie theaters and convention centers under Laws 2020, Seventh Special
Session chapter 2, article 4;
new text end

new text begin (6) county relief grants to local businesses under Laws 2020, Seventh Special Session
chapter 2, article 5;
new text end

new text begin (7) grants through the Main Street Economic Revitalization Program in Laws 2021, First
Special Session chapter 10, article 2, section 5;
new text end

new text begin (8) main street COVID-19 relief grants under Laws 2021, First Special Session chapter
10, article 2, section 22;
new text end

new text begin (9) forgivable loans under Laws 2021, First Special Session chapter 10, article 2, section
24;
new text end

new text begin (10) financial assistance to businesses provided by a county, city, or township using
funds from the Coronavirus Relief Fund under section 5001 of Public Law 116-136; or
new text end

new text begin (11) financial assistance to businesses provided by a county, city, or township using
funds from the State and Local Fiscal Recovery Fund in section 9901 of Public Law 117-2.
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, 2019.
new text end

Sec. 30. new text begin COUNTY PANDEMIC BUSINESS AND COMMUNITY RELIEF AID;
APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin (a) $75,000,000 in fiscal year 2023 is appropriated from
the general fund to the commissioner of revenue for payments to counties under this section.
This is a onetime appropriation.
new text end

new text begin (b) Of the amount under paragraph (a), $50,000,000 must be used for payments to
counties for economic assistance and aid to businesses under subdivision 2.
new text end

new text begin (c) Of the amount under paragraph (a), $25,000,000 must be used for payments to
counties to provide rental assistance under subdivision 6.
new text end

new text begin (d) After June 30, 2023, a county must return any unspent funds to the commissioner
of revenue, and any amounts returned cancel to the general fund.
new text end

new text begin Subd. 2. new text end

new text begin Economic assistance and aid to local businesses. new text end

new text begin (a) From the amount available
under subdivision 1, paragraph (b), each county shall be issued a payment of a per capita
amount determined by reference to the population of each county according to the most
recently available 2020 population estimate from the state demographer as of January 1,
2022.
new text end

new text begin (b) A county must use funds received under paragraph (a) to provide economic assistance
to underserved communities under subdivision 3, aid to businesses under subdivision 4, or
aid to venues under subdivision 5. A county may use funds for one or more of the approved
uses in subdivisions 3, 4, and 5, but each county must assess the degree of need in the county
for assistance to underserved communities under subdivision 3. A county that determines
there is a need for assistance to underserved communities must prioritize aid to businesses
under that subdivision.
new text end

new text begin (c) Each county may use the greater of $6,250 or 2.5 percent of the total amount received
under this subdivision for administrative costs incurred from making payments under this
subdivision. A county may contract with a third party to administer the program on behalf
of the county.
new text end

new text begin (d) Payments under this subdivision must be awarded by March 15, 2023.
new text end

new text begin Subd. 3. new text end

new text begin Economic assistance to underserved communities. new text end

new text begin (a) A county may use
funds received under subdivision 2 to provide economic assistance to qualifying businesses.
Economic assistance under this paragraph must be provided to qualifying businesses located
in areas designated by the county as underserved communities. Economic assistance includes
but is not limited to:
new text end

new text begin (1) grants, loans, or other financial assistance to businesses that pay their employees a
living wage;
new text end

new text begin (2) grants, loans, or other financial assistance for maintenance and repair of commercial
properties;
new text end

new text begin (3) down payment assistance for businesses seeking to purchase commercial property;
or
new text end

new text begin (4) payments to commercial property owners to reduce rent costs for businesses.
new text end

new text begin (b) To provide economic assistance to businesses under paragraph (a), a county must
designate census tracts representing five percent or less of the population in the county as
"underserved communities." In making a designation under this subdivision, the county
must consider the following characteristics of a census tract, among other considerations
deemed relevant by the county:
new text end

new text begin (1) the unemployment rate;
new text end

new text begin (2) the poverty rate;
new text end

new text begin (3) the median income of the tract relative to the rest of the county; and
new text end

new text begin (4) the number of vacant commercial properties.
new text end

new text begin (c) For the purposes of this section:
new text end

new text begin (1) "qualifying business" means a business with 50 or fewer employees; and
new text end

new text begin (2) "living wage" means 150 percent of the minimum wage for large employers for 2022
under Minnesota Statutes, section 177.24.
new text end

new text begin Subd. 4. new text end

new text begin Aid to businesses without income in 2019. new text end

new text begin A county may use funds received
under subdivision 2 to provide economic assistance to businesses that were in operation in
calendar year 2020 or 2021, but not in calendar year 2019, and were ineligible to participate
in a state or federal business assistance program due to the lack of operations or revenue in
calendar year 2019. Economic assistance includes but is not limited to grants, loans, or any
other financial assistance deemed appropriate by the county.
new text end

new text begin Subd. 5. new text end

new text begin Aid to venues. new text end

new text begin (a) A county may use funds received under subdivision 2 to
provide grants to Minnesota-registered businesses in good standing or Minnesota-registered
nonprofits in good standing that:
new text end

new text begin (1) are directly engaged in the procurement, promotion, production, or presentation of
live entertainment events to an in-person audience; and
new text end

new text begin (2) experienced a decrease in revenues due to the COVID-19 pandemic.
new text end

new text begin (b) To qualify for a grant under this subdivision, a business or nonprofit must:
new text end

new text begin (1) meet the following revenue requirements:
new text end

new text begin (i) have derived at least 33 percent of its 2019 revenue from the sale of tickets for live
events; or
new text end

new text begin (ii) be directly reliant on ticketed live entertainment events but not directly in receipt of
those ticket revenues because the event is free to the general public and the revenue is
derived from avenues other than ticket sales;
new text end

new text begin (2) employ no more than 60 full-time equivalent employees, defined as an employee
who worked on average at least 30 hours per week or 130 hours per month;
new text end

new text begin (3) have been restricted from operating above 25 percent capacity or 250 attendees,
whichever is less, pursuant to an executive order issued during a peacetime emergency
declared regarding the infectious disease known as COVID-19;
new text end

new text begin (4) not have any current tax delinquency with the Department of Revenue at the time
of application; and
new text end

new text begin (5) have its principal place of business in Minnesota.
new text end

new text begin (c) The following entities are ineligible for grants under this subdivision:
new text end

new text begin (1) bars, restaurants, and other facilities whose primary source of revenue is not
entertainment events;
new text end

new text begin (2) multinational or publicly owned companies; and
new text end

new text begin (3) adult entertainment operations.
new text end

new text begin (d) Notwithstanding the requirements of paragraph (b), a county may authorize a grant
to a business under this subdivision if the county determines that the business has
substantially met the requirements of this subdivision, but was a new entertainment venue
that had planned on opening in 2020 but was unable to begin operations based solely on
the fact that COVID-19-related closures prevented the business from doing so. The business
shall submit, on a form required by the county, any documentation the county deems
necessary to determine whether the business applies for a discretionary grant under this
subdivision.
new text end

new text begin Subd. 6. new text end

new text begin Rental assistance payments. new text end

new text begin (a) From the amount available under subdivision
1, paragraph (c), each county shall be issued a payment equal to the product of the amount
available under subdivision 1, paragraph (c), multiplied by the number of rent-burdened
households in the county, divided by the number of rent-burdened households in the state.
The number of rent-burdened households shall be determined using the 2020 experimental
estimates provided by the American Community Survey of the United States Census Bureau.
new text end

new text begin (b) For the purposes of this subdivision, the following terms have the meanings given:
new text end

new text begin (1) "eligible household" means a household in which household income is at or below
50 percent of area median income, as adjusted for household size;
new text end

new text begin (2) "rent-burdened household" means a household in which gross rent is 30 percent or
more of household income; and
new text end

new text begin (3) "rental assistance" means payments for:
new text end

new text begin (i) rent;
new text end

new text begin (ii) rental arrears;
new text end

new text begin (iii) utilities and home energy costs;
new text end

new text begin (iv) utilities and home energy costs arrears; and
new text end

new text begin (v) other expenses related to housing incurred due, directly or indirectly, to the novel
coronavirus disease COVID-19 outbreak.
new text end

new text begin (c) A county receiving a payment under this subdivision must spend at least 90 percent
of the payment received to provide rental assistance to eligible households.
new text end

new text begin (d) A county receiving a payment under this subdivision may use the greater of $6,250
or 2.5 percent of the total amount received under this subdivision for administrative costs
attributable to providing rental assistance.
new text end

new text begin (e) A county receiving aid under this subdivision may distribute the aid to a community
action agency or a nonprofit to provide rental assistance to eligible households.
new text end

new text begin Subd. 7. new text end

new text begin Grants. new text end

new text begin Grants and the process of making grants under this section are exempt
from the following statutes and related policies: Minnesota Statutes, sections 16A.15,
subdivision 3; 16B.97; and 16B.98, subdivisions 5, 7, and 8. A county opting to use a third
party to administer grants is exempt from Minnesota Statutes, section 471.345, in the
selection of the third-party administrator. The exemptions under this paragraph expire on
March 15, 2023.
new text end

new text begin Subd. 8. new text end

new text begin Report. new text end

new text begin By January 31, 2024, the commissioner of revenue shall report to the
legislative committees with jurisdiction over taxes on the grants provided under this section.
The report must comply with Minnesota Statutes, sections 3.195 and 3.197. By July 1, 2023,
each county must report to the commissioner of revenue how the county used the funds
provided under this section.
new text end

Sec. 31. new text begin INDEPENDENT SCHOOL DISTRICT NO. 696, ELY; BONDS.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin Independent School District No. 696, Ely, may issue
bonds in an aggregate principal amount not exceeding $9,500,000, in addition to any bonds
already issued or authorized, to provide funds to construct, equip, furnish, remodel,
rehabilitate, and acquire land for school facilities and buildings. The district may spend the
proceeds of the bond sale for those purposes and any architectural, engineering, and legal
fees incidental to those purposes or the sale. Bonds may be issued under this section without
a referendum. Except as permitted by this section, the bonds shall be authorized, issued,
sold, executed, and delivered in the manner provided by Minnesota Statutes, chapter 475.
An election on the question of issuing the bonds is not required. A resolution of the board
levying taxes for the payment of principal and interest on the bonds as authorized by this
section and pledging the proceeds of the levies for the payment of principal and interest on
the bonds shall be deemed to be in compliance with the provisions of Minnesota Statutes,
chapter 475, with respect to the levying of taxes for their payment.
new text end

new text begin Subd. 2. new text end

new text begin Levy limitations. new text end

new text begin Taxes levied pursuant to this section shall be disregarded in
the calculation of any other tax levies or limits on tax levies provided by other law.
new text end

new text begin Subd. 3. new text end

new text begin Bonding limitations. new text end

new text begin Bonds may be issued under authority of this section
notwithstanding any limitations upon the indebtedness of a district, and their amounts shall
not be included in computing the indebtedness of a district for any purpose, including the
issuance of subsequent bonds and the incurring of subsequent indebtedness.
new text end

new text begin Subd. 4. new text end

new text begin Local approval required. new text end

new text begin This section is effective for Independent School
District No. 696, Ely, the day after its governing body complies with Minnesota Statutes,
section 645.021, subdivision 3.
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 DEPARTMENT OF REVENUE FREE FILING REPORT.
new text end

new text begin (a) By January 15, 2023, 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

Sec. 33. 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 Sales tax purpose statements. new text end

new text begin (a) The purpose of the tax expenditure in article
3, sections 9, 11 to 15, and 19 to 27, is to reduce the cost of construction of public facilities,
buildings, and infrastructure. The standard against which effectiveness is to be measured
is the decrease in the growth in local property taxes and services in these communities.
new text end

new text begin (b) The purpose of the extension of the tax expenditure in article 3, section 17, is to
provide grants to fund programs for schools and coaches and reduce the fee costs for student
participants. The standard against which effectiveness is to be measured is the expansion
and level of participation of these programs.
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
of the emergency assistance for postsecondary student grants subtraction in article 2, section
12, is to provide financial support to students experiencing homelessness and extreme
financial hardship. The standard against which the effectiveness of the expenditure can be
measured is the reduction in the rate at which grant recipients drop out of postsecondary
programs due to financial hardship.
new text end

new text begin (b) The purpose of the workforce incentive fund grants subtraction in article 2, section
13, is to recruit and retain behavioral health, housing, disability, and home and
community-based older adult providers. The standard against which the effectiveness of
the expenditure can be measured is the reduction in the number of job vacancies in the fields
eligible for grants under Minnesota Statutes, section 256.4778.
new text end

new text begin (c) The purpose of the tax expenditure in article 2, sections 18 to 21 and 27, allowing
the entirety of the credit for historic structure rehabilitation to be taken in the year property
is placed in service, is to encourage investment in rehabilitating historic buildings. The
standard against which effectiveness is to be measured is the increase in the number of
historic rehabilitation projects in the state.
new text end

new text begin (d) The purpose of the tax expenditure in article 2, section 28, providing a subtraction
for a portion of unemployment compensation, is to provide financial support to unemployed
persons and to encourage economic activity in the state. The standard against which
effectiveness is to be measured is the increase in after-tax income of unemployed persons
and gross state product.
new text end

new text begin (e) The purpose of the tax expenditure in article 2, section 29, providing a refundable
tax credit for qualifying children, is to provide financial support to families with children
in the state and to reduce child poverty. The standard against which effectiveness is to be
measured is the increase in after-tax income of families with qualifying children and the
reduction in the child poverty rate.
new text end

new text begin (f) The purpose of the tax expenditure in article 10, section 28, providing a refundable
tax credit for polar vortex energy costs, is to reduce the energy costs experienced by
households due to the extreme cold temperatures in February 2021. The standard against
which effectiveness is to be measured is the reduction in energy costs net of the credit that
were paid in the covered period by those eligible for the credit.
new text end

new text begin (g) The purpose of the tax expenditure in article 10, section 29, providing an income tax
subtraction for state and local business assistance programs, is to prevent the closure of
businesses that experienced economic hardship due to the COVID-19 pandemic. The standard
against which effectiveness is to be measured is the number of employees and the reduction
in the closure rate for businesses receiving state and local economic assistance.
new text end

new text begin Subd. 4. new text end

new text begin Property tax purpose statements. new text end

new text begin (a) The provision in article 4, section 4,
providing a reduction in net tax capacity for certain property at airports, is intended to reduce
the tax burden on airport property located in cities with a population over 50,000 and under
150,000. The standard against which effectiveness is to be measured is the reduction in
property tax burden on these properties.
new text end

new text begin (b) The provision in article 4, section 6, extending a property tax exemption for certain
property owned by an Indian Tribe, is intended to reduce the tax burden on Tribe-owned
property that fails to qualify for an exemption under Minnesota Statutes, section 272.02,
subdivision 8. The standard against which effectiveness is to be measured is the reduction
in property tax levied on Tribe-owned property.
new text end

new text begin (c) The provision in article 4, section 7, creating an elderly living facility property tax
exemption, is intended to reduce the tax burden on nonprofit elderly living facilities located
in a city of the first class with a population less than 110,000 that do not qualify for another
property tax exemption under Minnesota Statutes, section 272.02. The standard against
which effectiveness is to be measured is the reduction in property tax burden on these
properties.
new text end

new text begin (d) The provision in article 4, section 8, creating a property tax exemption for energy
storage systems, is intended to reduce the tax burden on energy storage systems and promote
the development and use of energy storage systems in Minnesota. The standard against
which effectiveness is to be measured is the reduction in property tax burden on energy
storage systems and the number of energy storage systems in Minnesota.
new text end

new text begin (e) The provision in article 4, section 20, setting the classification rate of all manufactured
home park property at 0.75 percent, is intended to reduce the tax burden on manufactured
home parks and preserve manufactured home parks as an affordable housing option in
Minnesota. The standard against which effectiveness is to be measured is the reduction in
property tax burden on manufactured home parks and the number of manufactured home
parks in Minnesota.
new text end

new text begin (f) The provision in article 4, section 20, setting the classification rate of certain
community land trust property at 0.75 percent, is intended to reduce the tax burden on
community land trust property and preserve community land trusts as an affordable option
for home ownership in Minnesota. The standard against which effectiveness is to be measured
is the reduction in property tax burden on community land trusts and the number of
community land trust properties in Minnesota.
new text end

Sec. 34. new text begin APPROPRIATION; DEPARTMENT OF REVENUE FREE FILING
REPORT.
new text end

new text begin $175,000 in fiscal year 2023 is appropriated from the general fund to the commissioner
of revenue for the free filing report required under section 33. This is a onetime appropriation.
new text end

ARTICLE 11

PARTNERSHIP TAXES

Section 1.

Minnesota Statutes 2021 Supplement, section 289A.08, subdivision 7a, 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 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 290.20;

(2) "qualifying entity" means a partnership, limited liability company new text begin taxed as a
partnership or S corporation new text end , or S corporation including a qualified subchapter S subsidiary
organized under section 1361(b)(3)(B) of the Internal Revenue Code. Qualifying entity does
not include a 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 shareholder; and

(3) "qualifying owner" means:

(i) a resident or nonresident individual or estate that is a partner, member, or shareholder
of a qualifying entity; or

(ii) a resident or nonresident trust that is a shareholder of a qualifying entity that is an
S corporation.

(b) For taxable years beginning after December 31, 2020, in which the taxes of a
qualifying owner are limited under section 164(b)(6)(B) of the Internal Revenue Code, 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;

(2) may only be made by qualifying owners who collectively hold more than a 50 percent
ownership interest in the qualifying entity;

(3) is binding on all qualifying owners who have an ownership interest in the qualifying
entity; and

(4) 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.

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. 2.

Minnesota Statutes 2021 Supplement, 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 required deleted 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

ARTICLE 12

SALES AND USE TAXES AND SPECIAL TAXES

Section 1.

Minnesota Statutes 2020, 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 thereafter deleted text end new text begin May 1 each
year new text end , the commissioner of revenue shall calculate and publish a surcharge as provided in
deleted text begin paragraphs deleted text end new text begin paragraph new 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 following deleted text end new text begin beginning new text end July
1 new text begin of the year it is published new text end through June 30 new text begin of the following year new 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. 2.

Minnesota Statutes 2020, 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, and deleted text end the District of Columbia new text begin , and any
territory of the United States, including American Samoa, Guam, Northern Mariana Islands,
Puerto Rico, and the U.S. Virgin Islands 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

FIRE AND POLICE STATE AIDS

Section 1.

Minnesota Statutes 2020, section 6.495, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Report deleted text end new text begin Reports new 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 shall deleted text end new text begin must new 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 2023
and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2020, 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 2023
and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2020, 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 includes deleted text end new text begin means:
new text end

new text begin (1) new text end a municipal fire department deleted text begin and deleted text end new text begin ;
new text end

new text begin (2) new text end an independent nonprofit firefighting corporation deleted 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 2023
and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2020, 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 2023
and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2020, 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 398 deleted text end new text begin a joint powers entity new text end ;

(4) deleted text begin the University of Minnesota deleted text end new text begin a fire protection special taxing district new text end ; deleted text begin and deleted 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 477B deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2023
and thereafter.
new text end

Sec. 6.

Minnesota Statutes 2020, section 477B.01, subdivision 11, is amended to read:

Subd. 11.

Secretary.

new text begin (a) new text end "Secretary" means new 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 plan deleted 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 2023
and thereafter.
new text end

Sec. 7.

Minnesota Statutes 2020, 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
year new text begin , and must have a current fire department identification number issued by the state fire
marshal new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2023
and thereafter.
new text end

Sec. 8.

Minnesota Statutes 2020, section 477B.02, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Personnel and deleted 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 2023
and thereafter.
new text end

Sec. 9.

Minnesota Statutes 2020, 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 2023
and thereafter.
new text end

Sec. 10.

Minnesota Statutes 2020, section 477B.02, subdivision 5, is amended to read:

Subd. 5.

Fire service contract or agreement; apportionment agreement filing
deleted text begin requirement deleted text end new text begin requirements new 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 agreement deleted text end
with the commissioner new 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 dissolution new 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
filed deleted text end new text begin file an apportionment agreement new 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 2023
and thereafter.
new text end

Sec. 11.

Minnesota Statutes 2020, 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 2023
and thereafter.
new text end

Sec. 12.

Minnesota Statutes 2020, 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 secretary deleted text begin , and the fire chief, deleted text end must deleted text begin jointly deleted text end certify to the
commissioner deleted text begin that the fire department exists and meets the qualification requirements of
this section deleted 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 new text end . new text begin 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.03. new text end The new text begin commissioner shall prescribe
the content, format, and manner of the new text end certification deleted text begin must be on a form prescribed by the
commissioner and must include all other information that the commissioner requires deleted text end new text begin pursuant
to section 270C.30 new text end . 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 2023
and thereafter.
new text end

Sec. 13.

Minnesota Statutes 2020, 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 Report new 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 apportionment new 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. 14.

Minnesota Statutes 2020, section 477B.03, subdivision 3, is amended to read:

Subd. 3.

Population and estimated market value.

(a) deleted text begin Official statewide federal census
figures deleted 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 available deleted text end estimated market value property figures new text begin for the assessment year
immediately preceding the year the aid is distributed new 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 2023
and thereafter.
new text end

Sec. 15.

Minnesota Statutes 2020, 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 contracts new text begin ,
joint powers agreements, resolutions, and other supporting documents new 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 agreements deleted text end new text begin contracts, joint powers agreements, resolutions, and other
supporting documents new 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 2023
and thereafter.
new text end

Sec. 16.

Minnesota Statutes 2020, 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 of deleted text end new text begin For a municipality or independent
nonprofit firefighting corporation that is new 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 auditor new text begin by February 1 immediately following the date the
municipality or independent nonprofit firefighting corporation begins coverage in the plan new 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 2023
and thereafter.
new text end

Sec. 17.

Minnesota Statutes 2020, 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 2023
and thereafter.
new text end

Sec. 18.

Minnesota Statutes 2020, 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 353G deleted text begin , or directly to a municipality
or county designated by an independent nonprofit firefighting corporation deleted 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 when deleted text end new text begin
to a new text end payment deleted text begin has not been made by October 1 due to noncompliance with sections 424A.014
and 477B.02, subdivision 7 deleted text end new text begin withheld under this paragraph new 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 2023
and thereafter.
new text end

Sec. 19.

Minnesota Statutes 2020, 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 2023
and thereafter.
new text end

Sec. 20.

Minnesota Statutes 2020, 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 Report new 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 apportionment new 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
2023 and thereafter.
new text end

Sec. 21.

Minnesota Statutes 2020, 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 2023
and thereafter.
new text end

Sec. 22.

Minnesota Statutes 2020, 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 2023
and thereafter.
new text end

Sec. 23. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2020, 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 2023
and thereafter.
new text end

ARTICLE 14

MISCELLANEOUS TAX PROVISIONS

Section 1.

Minnesota Statutes 2020, 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 15 deleted text end new text begin 31 new 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 15 deleted text end new text begin 31 new 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 for refund claims based on property taxes
payable in 2022 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2020, 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.01, subdivision 6, and "property" includes a lot as defined under section
327C.01, subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refund claims based on rent paid in
2022 and thereafter.
new text end

APPENDIX

Repealed Minnesota Statutes: H3669-2

6.91 LOCAL PERFORMANCE MEASUREMENT AND REPORTING.

Subdivision 1.

Reports of local performance measures.

(a) A county or city that elects to participate in the standard measures program must report its results to its citizens annually through publication, direct mailing, posting on the jurisdiction's website, or through a public hearing at which the budget and levy will be discussed and public input allowed.

(b) Each year, jurisdictions participating in the local performance measurement and improvement program must file a report with the state auditor by July 1, in a form prescribed by the auditor. All reports must include a declaration that the jurisdiction has complied with, or will have complied with by the end of the year, the requirement in paragraph (a). For jurisdictions participating in the standard measures program, the report shall consist of the jurisdiction's results for the standard set of performance measures under section 6.90, subdivision 2, paragraph (a). In 2012, jurisdictions participating in the comprehensive performance measurement program must submit a resolution approved by its local governing body indicating that it either has implemented or is in the process of implementing a local performance measurement system that meets the minimum standards specified by the council under section 6.90, subdivision 2, paragraph (b). In 2013 and thereafter, jurisdictions participating in the comprehensive performance measurement program must submit a statement approved by its local governing body affirming that it has implemented a local performance measurement system that meets the minimum standards specified by the council under section 6.90, subdivision 2, paragraph (b).

Subd. 2.

Benefits of participation.

(a) A county or city that elects to participate in the standard measures program for 2011 is: (1) eligible for per capita reimbursement of $0.14 per capita, but not to exceed $25,000 for any government entity; and (2) exempt from levy limits under sections 275.70 to 275.74 for taxes payable in 2012, if levy limits are in effect.

(b) Any county or city that elects to participate in the standard measures program for 2012 is eligible for per capita reimbursement of $0.14 per capita, but not to exceed $25,000 for any government entity. Any jurisdiction participating in the comprehensive performance measurement program is exempt from levy limits under sections 275.70 to 275.74 for taxes payable in 2013 if levy limits are in effect.

(c) Any county or city that elects to participate in the standard measures program for 2013 or any year thereafter is eligible for per capita reimbursement of $0.14 per capita, but not to exceed $25,000 for any government entity. Any jurisdiction participating in the comprehensive performance measurement program for 2013 or any year thereafter is exempt from levy limits under sections 275.70 to 275.74 for taxes payable in the following year, if levy limits are in effect.

Subd. 3.

Certification of participation.

(a) The state auditor shall certify to the commissioner of revenue by August 1 of each year the counties and cities that are participating in the standard measures program and the comprehensive performance measurement program.

(b) The commissioner of revenue shall make per capita aid payments under this section on the second payment date specified in section 477A.015, in the same year that the measurements were reported.

(c) The commissioner of revenue shall notify each county and city that is entitled to exemption from levy limits by August 10 of each levy year.

Subd. 4.

Appropriation.

(a) The amount necessary to fund obligations under subdivision 2 is annually appropriated from the general fund to the commissioner of revenue.

(b) The sum of $6,000 in fiscal year 2011 and $2,000 in each fiscal year thereafter is annually appropriated from the general fund to the state auditor to carry out the auditor's responsibilities under sections 6.90 to 6.91.

290.0111 TEMPORARY CONFORMITY TO CERTAIN FEDERAL TAX CHANGES.

Subdivision 1.

Adopting Internal Revenue Code changes.

For the purposes of this chapter, "Internal Revenue Code," as defined in section 290.01, subdivisions 19 and 31, includes the sections of federal law specified in this section as enacted or amended through March 31, 2021.

Subd. 2.

Further Consolidated Appropriations Act, 2020.

(a) "Internal Revenue Code" includes the following provisions of the Taxpayer Certainty and Disaster Tax Relief Act of 2019 in Public Law 116-94:

(1) section 101;

(2) section 116;

(3) section 117;

(4) section 130;

(5) section 131;

(6) section 132;

(7) section 144;

(8) section 201;

(9) section 202; and

(10) section 204.

(b) "Internal Revenue Code" includes section 301 of the Setting Every Community Up for Retirement Enhancement Act of 2019 in Public Law 116-94.

Subd. 3.

CARES Act.

"Internal Revenue Code" includes the following sections of Public Law 116-136:

(1) section 1106(i); and

(2) section 2202.

Subd. 4.

Consolidated Appropriations Act, 2021.

(a) "Internal Revenue Code" includes the following provisions of the COVID-related Tax Relief Act of 2020 in Public Law 116-260:

(1) section 275;

(2) section 276; and

(3) section 277.

(b) For taxable years beginning after December 31, 2019, and before January 1, 2021, "Internal Revenue Code" includes sections 278(b) and 278(c) of the COVID-related Tax Relief Act of 2020 in Public Law 116-260.

Subd. 5.

American Rescue Plan Act.

"Internal Revenue Code" includes section 9042 of Public Law 117-2.

290.0674 MINNESOTA EDUCATION CREDIT.

Subd. 2a.

Income.

(a) For purposes of this section, "income" means the sum of the following:

(1) federal adjusted gross income as defined in section 62 of 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;

(xii) nontaxable scholarship or fellowship grants;

(xiii) the amount of deduction allowed under section 199 of the Internal Revenue Code;

(xiv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue Code;

(xv) the amount deducted for tuition expenses under section 222 of the Internal Revenue Code; and

(xvi) 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" 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.

(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 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;

(3) surplus food or other relief in kind supplied by a governmental agency;

(4) relief granted under chapter 290A;

(5) child support payments received under a temporary or final decree of dissolution or legal separation; and

(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.

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.

Subd. 5.

Combined renter and homeowner refund.

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.

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.

327C.01 DEFINITIONS.

Subd. 13.

Class I manufactured home park.

A "class I manufactured home park" means a park that complies with the provisions of section 327C.16.

327C.16 CLASS I MANUFACTURED HOME PARK.

Subdivision 1.

Qualifications.

(a) To qualify as a class I manufactured home park, as defined in section 327C.01, subdivision 13, a park owner, or on-site attendant as an employee of the manufactured home park, must satisfy 12 hours of qualifying education courses every three years, as prescribed in this subdivision. Park owners or on-site attendants may begin accumulating qualifying hours to qualify as a class I manufactured home park beginning in 2017.

(b) The qualifying education courses required for classification under this subdivision must be continuing education courses approved by the Department of Labor and Industry or the Department of Commerce for:

(1) continuing education in real estate; or

(2) continuing education for residential contractors and manufactured home installers.

(c) The qualifying education courses must include:

(1) two hours on fair housing, approved for real estate licensure or residential contractor licensure;

(2) one hour on the Americans with Disabilities Act, approved for real estate licensure or residential contractor licensure;

(3) four hours on legal compliance related to any of the following: landlord/tenant, licensing requirements, or home financing under chapters 58, 327, 327B, 327C, and 504B, and Minnesota Rules, chapter 1350 or 4630;

(4) three hours of general education approved for real estate, residential contractors, or manufactured home installers; and

(5) two hours of HUD-specific manufactured home installer courses as required under section 327B.041.

(d) If the qualifying owner or employee attendant is no longer the person meeting the requirements under this subdivision, but did qualify during the current assessment year, then the manufactured home park shall still qualify for the class rate provided for class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause (5), item (iii).

Subd. 2.

Proof of compliance.

(a) A park owner that has met the requirements of subdivision 1 shall provide an affidavit to the park owner's county assessor certifying that the park owner, corporate officer, or on-site attendant has complied with subdivision 1 and that the park meets the definition of a class I manufactured home park as defined in this section, and is entitled to the property tax classification rate for class I manufactured home parks in section 273.13, subdivision 25. The park owner shall retain the original course completion certificates issued by the course sponsor under this section for three years and, upon written request for verification, provide these to the county assessor within 30 days.

(b) A park owner must provide the county assessor written notice of any change in compliance status of the manufactured home park no later than December 15 of the assessment year.

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.

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.