HF 4

1st Unofficial Engrossment - 90th Legislature (2017 - 2018) Posted on 04/04/2017 09:26am

1.1A bill for an act

1.2relating to financing and operating of state and local government; making changes
1.3to individual income, corporate franchise, estate, property, sales and use, excise,
1.4mineral, special, local, and other miscellaneous taxes and tax-related provisions;
1.5modifying local government aids, credits, tax increment financing, and public
1.6finance; providing for new income tax subtractions, additions, and credits;
1.7establishing a first-time home buyer savings account program; modifying the
1.8education credit; providing a credit for donations to fund K-12 scholarships;
1.9modifying residency definitions; providing estate tax conformity; modifying debt
1.10service equalization revenue; providing for and modifying property tax exemptions
1.11and classifications; modifying the Sustainable Forest Incentive Act; changing levy
1.12certification dates; establishing a school building bond agricultural tax credit;
1.13modifying state general levy; modifying certain local government aids; authorizing
1.14assessor accreditation waivers; modifying sales tax definitions and exemptions;
1.15providing sales tax exemptions; authorizing certain tax increment financing
1.16authority; authorizing certain local taxes; authorizing provisions related to taconite
1.17production tax; clarifying Iron Range Resources and Rehabilitation Board approval
1.18authority; making minor policy, technical, and conforming changes; requiring
1.19reports; appropriating money;amending Minnesota Statutes 2016, sections 13.51,
1.20subdivision 2; 15.38, subdivision 7; 40A.18, subdivision 2; 69.021, subdivision
1.215; 84.82, subdivision 10; 84.922, subdivision 11; 86B.401, subdivision 12;
1.22115A.1314, subdivision 1; 116J.423, subdivision 2; 116J.424; 123B.53,
1.23subdivisions 4, 5; 126C.17, subdivision 6; 127A.45, subdivisions 10, 13; 128C.24;
1.24136A.129, subdivision 3; 138.053; 216B.161, subdivision 1; 270.071, subdivisions
1.252, 7, 8, by adding a subdivision; 270.072, subdivisions 2, 3, by adding a subdivision;
1.26270.074, subdivision 1; 270.078, subdivision 1; 270.12, by adding a subdivision;
1.27270.82, subdivision 1; 270A.03, subdivision 5; 270B.14, subdivision 1, by adding
1.28a subdivision; 270C.171, subdivision 1; 270C.30; 270C.33, subdivisions 5, 8;
1.29270C.34, subdivision 2; 270C.35, subdivision 3, by adding a subdivision; 270C.38,
1.30subdivision 1; 270C.445, subdivisions 2, 3, 5a, 6, 6a, 6b, 6c, 7, 8, by adding a
1.31subdivision; 270C.446, subdivisions 2, 3, 4, 5; 270C.447, subdivisions 1, 2, 3, by
1.32adding a subdivision; 270C.72, subdivision 4; 270C.89, subdivision 1; 270C.9901;
1.33271.06, subdivisions 2, 7; 272.02, subdivisions 9, 10, 86, by adding a subdivision;
1.34272.0211, subdivision 1; 272.025, subdivision 1; 272.029, subdivisions 2, 4, by
1.35adding a subdivision; 272.0295, subdivision 4, by adding a subdivision; 272.115,
1.36subdivisions 1, 2, 3; 273.061, subdivision 7; 273.0755; 273.08; 273.121, by adding
1.37a subdivision; 273.124, subdivisions 13, 13d; 273.125, subdivision 8; 273.13,
1.38subdivisions 22, 23, 25, 34; 273.135, subdivision 1; 273.1392; 273.1393; 273.33,
1.39subdivisions 1, 2; 273.371; 273.372, subdivisions 1, 2, 4, by adding subdivisions;
2.1274.01, subdivision 1; 274.014, subdivision 3; 274.13, subdivision 1; 274.135,
2.2subdivision 3; 275.025, subdivisions 1, 2, 4; 275.065, subdivisions 1, 3; 275.07,
2.3subdivisions 1, 2; 275.08, subdivision 1b; 275.62, subdivision 2; 276.04, subdivision
2.42; 276A.01, subdivisions 8, 17; 278.01, subdivision 1; 279.01, subdivision 2;
2.5282.01, subdivisions 1a, 1d; 282.38, subdivision 1; 287.08; 287.2205; 289A.08,
2.6subdivisions 11, 16, by adding a subdivision; 289A.09, subdivisions 1, 2; 289A.10,
2.7subdivision 1; 289A.11, subdivision 1; 289A.12, subdivision 14; 289A.18,
2.8subdivision 1, by adding a subdivision; 289A.20, subdivision 2; 289A.31,
2.9subdivision 1; 289A.35; 289A.37, subdivision 2; 289A.38, subdivision 6; 289A.50,
2.10subdivisions 2a, 7; 289A.60, subdivisions 13, 28, by adding a subdivision; 289A.63,
2.11by adding a subdivision; 290.01, subdivision 7; 290.0131, subdivision 10, as
2.12amended, by adding subdivisions; 290.0132, subdivision 21, by adding
2.13subdivisions; 290.0133, subdivision 12, as amended, by adding a subdivision;
2.14290.06, subdivisions 2c, 2d, by adding subdivisions; 290.0671, subdivision 1, as
2.15amended; 290.0672, subdivision 1; 290.0674, by adding a subdivision; 290.068,
2.16subdivision 2, by adding a subdivision; 290.081; 290.091, subdivision 2; 290.0922,
2.17subdivision 2; 290.17, subdivision 2; 290.31, subdivision 1; 290A.03, subdivision
2.183; 290A.10; 290A.19; 290C.02, subdivision 6; 290C.03; 290C.07; 290C.10;
2.19291.005, subdivision 1, as amended; 291.016, subdivisions 2, 3; 291.03,
2.20subdivisions 1, 9, 11; 291.075; 295.53, subdivision 1; 295.54, subdivision 2;
2.21295.55, subdivision 6; 296A.01, subdivisions 7, 12, 33, 42, by adding subdivisions;
2.22296A.02, by adding a subdivision; 296A.07, subdivisions 1, 4; 296A.08, subdivision
2.232; 296A.15, subdivisions 1, 4; 296A.16, subdivision 2; 296A.17, subdivision 3;
2.24296A.19, subdivision 1; 296A.22, subdivision 9; 296A.26; 297A.61, subdivisions
2.253, 4, 34; 297A.66, subdivisions 1, 2, 4, by adding a subdivision; 297A.67,
2.26subdivisions 2, 4, 5, 6, by adding a subdivision; 297A.68, subdivision 19; 297A.70,
2.27subdivision 14, by adding a subdivision; 297A.71, subdivision 44, by adding
2.28subdivisions; 297A.75, subdivisions 1, 2, 3; 297A.82, subdivisions 4, 4a; 297D.02;
2.29297E.02, subdivisions 3, 7; 297E.04, subdivision 1; 297E.05, subdivision 4;
2.30297E.06, subdivision 1; 297F.09, subdivision 1; 297F.23; 297G.03, by adding a
2.31subdivision; 297G.09, subdivision 1; 297G.22; 297H.06, subdivision 2; 297I.05,
2.32subdivision 2; 297I.10, subdivisions 1, 3; 297I.30, subdivision 7, by adding a
2.33subdivision; 297I.60, subdivision 2; 298.001, subdivision 8; 298.01, subdivisions
2.343, 4, 4c; 298.22, subdivisions 1, 1a, 5a, 6, 10, 11; 298.221; 298.2211, subdivision
2.353; 298.223, subdivisions 1, 2; 298.227; 298.24, subdivision 1; 298.28, subdivisions
2.362, 5, 7a, 9d; 298.292, subdivision 2; 298.296, subdivisions 1, 2, 4; 298.2961,
2.37subdivisions 2, 4; 298.46, subdivision 2; 366.095, subdivision 1; 383B.117,
2.38subdivision 2; 410.32; 412.301; 414.09, subdivision 2; 469.034, subdivision 2;
2.39469.101, subdivision 1; 469.1763, subdivisions 1, 2, 3; 469.178, subdivision 7;
2.40469.190, subdivisions 1, 7; 469.319, subdivision 5; 473H.09; 473H.17, subdivision
2.411a; 475.58, subdivision 3b; 475.60, subdivision 2; 477A.011, subdivision 34;
2.42477A.0124, subdivision 2; 477A.013, subdivisions 1, 8, 9, by adding a subdivision;
2.43477A.03, subdivisions 2a, 2b; 477A.11, by adding a subdivision; 477A.12,
2.44subdivisions 1, 2; 477A.14, subdivision 3; 477A.17; 477A.19, by adding
2.45subdivisions; 559.202, subdivision 2; 609.5316, subdivision 3; Laws 1980, chapter
2.46511, sections 1, subdivision 2, as amended; 2, as amended; Laws 1991, chapter
2.47291, article 8, section 27, subdivisions 3, as amended, 4, as amended, 5; Laws
2.481996, chapter 471, article 2, section 29, subdivisions 1, as amended, 4, as amended;
2.49article 3, section 51; Laws 1999, chapter 243, article 4, sections 17, subdivisions
2.503, 5, by adding a subdivision; 18, subdivision 1, as amended; Laws 2005, First
2.51Special Session chapter 3, article 5, sections 38, subdivisions 2, as amended, 4, as
2.52amended; 44, subdivisions 3, as amended, 4, 5, as amended; Laws 2008, chapter
2.53154, article 9, section 21, subdivision 2; Laws 2008, chapter 366, article 7, section
2.5420; Laws 2009, chapter 88, article 5, section 17, as amended; Laws 2010, chapter
2.55216, section 58, as amended; Laws 2014, chapter 308, article 6, sections 8,
2.56subdivision 1; 9; article 9, section 94; Laws 2016, chapter 187, section 5; proposing
2.57coding for new law in Minnesota Statutes, chapters 116J; 273; 289A; 290; 290B;
2.58290C; 293; 297A; 477A; proposing coding for new law as Minnesota Statutes,
3.1chapter 462D; repealing Minnesota Statutes 2016, sections 270.074, subdivision
3.22; 270C.445, subdivision 1; 270C.447, subdivision 4; 281.22; 289A.10, subdivision
3.31a; 289A.12, subdivision 18; 289A.18, subdivision 3a; 289A.20, subdivision 3a;
3.4290.9743; 290.9744; 290C.02, subdivisions 5, 9; 290C.06; 291.03, subdivisions
3.58, 9, 10, 11; 298.22, subdivision 8; 298.2213, subdivisions 4, 5, 6; 298.298;
3.6Minnesota Rules, parts 8092.1400; 8092.2000; 8100.0700; 8125.1300, subpart 3.
3.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

3.8ARTICLE 1

3.9INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES

3.10    Section 1. [116J.5491] WORKFORCE HOUSING TAX CREDIT.
3.11    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have
3.12the meanings given.
3.13(b) "City" means a statutory or home rule charter city.
3.14(c) "Developer" means the individual or entity that is responsible for arranging financing
3.15for and construction of a qualified workforce housing project.
3.16(d) "Eligible project site" means the site for the proposed qualified workforce housing
3.17project that must be located in:
3.18(1) an area that does not require extension of public infrastructure, other than connections
3.19to or access for the site, and that is located outside of the metropolitan area, as defined in
3.20section 473.121, subdivision 2;
3.21(2) a city with at least 500 jobs, as measured in the QCEW, or within the jurisdiction of
3.22an economic development authority, formed under Laws 1988, chapter 516, section 1, as a
3.23joint partnership between a city and county and excluding those established by the county
3.24only; and
3.25(3) an area, consisting of the city in which the site is located and any other city or town
3.26located within 15 miles or less of the site, with an average vacancy rate for market rate
3.27residential rental properties of four percent or less for any two of the last five years, based
3.28on a market housing analysis that supports demand for the proposed qualified workforce
3.29housing project.
3.30(e) "Market rate residential rental properties" means properties that are rented at market
3.31value and excludes properties constructed with:
3.32(1) financial assistance requiring the property to be occupied by residents that meet
3.33income limits under federal or state law of initial occupancy; and
4.1(2) federal, state, or local flood recovery assistance, regardless of whether that assistance
4.2imposed income limits as a condition of receiving assistance.
4.3(f) "QCEW" means the Quarterly Census of Employment and Wages with the most
4.4recent annual data published by the commissioner.
4.5(g) "Qualified investment" means a cash investment or the fair market value equivalent
4.6for common stock, land, a partnership or membership interest, preferred stock, debt with
4.7mandatory conversion to equity, or an equivalent ownership interest as determined by the
4.8commissioner that is made in a qualified workforce housing project.
4.9(h) "Qualified project investor" means an investor who makes a qualified investment
4.10and receives a tax credit certificate from the developer of the project.
4.11(i) "Qualified workforce housing project" means a project:
4.12(1) for market rate residential rental properties with a minimum of three dwelling units;
4.13(2) with an average construction cost per unit, excluding site preparation costs, of no
4.14more than $250,000 and no less than $75,000;
4.15(3) located on an eligible project site;
4.16(4) that has more than 50 percent nonstate funding proposed to fund the project; and
4.17(5) that has been designated by the commissioner as a qualified workforce housing
4.18project.
4.19(j) "Workforce Housing Undersupply Ratio" means the total number of full-time jobs
4.20in the area, as defined in paragraph (d), clause (3), in which the proposed project is located,
4.21as reported in the QCEW, divided by the total number of persons over the age of 16 who
4.22are employed and living in that area, as reported by the United States Census
4.23"EMPLOYMENT STATUS" data set or similar United States Census data set.
4.24    Subd. 2. Qualified project investor tax credits. (a) A qualified project investor is
4.25allowed a credit against the tax imposed under chapter 290 equal to 40 percent of the qualified
4.26investment up to a maximum of $1,000,000.
4.27(b) The credit under this subdivision is allowed in the first taxable year in which the
4.28qualified workforce housing project has housing units that are certified for occupancy by
4.29the Department of Labor and Industry or a city inspector.
4.30(c) The commissioner may issue tax credit allocations to qualified workforce housing
4.31projects for a taxable year, up to $2,500,000, based on applications made by developers and
4.32as provided under paragraph (d). No more than $1,000,000 in tax credit allocations may be
5.1issued for a qualified workforce housing project. Any portion of the permitted allocation
5.2for a taxable year that is not issued by the commissioner does not cancel and carries forward
5.3to the following taxable year.
5.4(d) A developer of a qualified workforce housing project may apply to the commissioner
5.5for an allocation of tax credits under this section. The application must provide information
5.6sufficient for the commissioner to determine:
5.7(1) that the project meets the requirements for a qualified workforce housing project
5.8under this section;
5.9(2) that the developer has sufficient financing to acquire and construct the project;
5.10(3) the financial viability of the project;
5.11(4) the total amount of credits applied for;
5.12(5) each of the project's investors, the amounts each has or will invest in the project, and
5.13the amount of tax credits the developer proposes to provide to each; and
5.14(6) any other information that the commissioner deems appropriate.
5.15The application must be made in the form and manner specified by the commissioner.
5.16Applications for tax credits for a taxable year must be made available by the commissioner
5.17by November 1 of the prior calendar year. The commissioner must make every effort to
5.18provide applications and relevant data to applicants in a simple, concise manner using plain
5.19language, and distribute relevant eligibility information on the Department of Employment
5.20and Economic Development Web site. In allocating the credits, the commissioner must give
5.21preference to projects with the highest Workforce Housing Undersupply Ratio, except where
5.22the commissioner determines the investment is circumventing the spirit of the law or where
5.23little or no local economic growth would occur as a result of the investment. The
5.24commissioner must approve or reject a tax credit request application within 15 days of
5.25receiving the application. The commissioner shall provide tax credit certificates to the
5.26applicant developer of an approved qualified workforce housing project in the amount of
5.27the credits allocated to the project. The developer shall provide the credit certificates to its
5.28qualified project investors in return for their investments in the projects and notify the
5.29commissioner of the amount provided to each investor within 15 days. If the project does
5.30not have units certified for occupancy as provided in paragraph (b) within a two-year period
5.31following issuance of the credit certificates to the developer, the tax credit allocation for
5.32the project is canceled. The developer must notify the commissioner immediately of the
5.33failure to obtain a certificate of occupancy no later than five business days after the expiration
6.1of the two-year period. The commissioner must notify the commissioner of revenue of the
6.2credit certificates issued under this section and any cancellations of those certificates.
6.3(e) The commissioner shall charge an application fee. Application fees are deposited in
6.4the workforce housing tax credit administration account in the special revenue fund. Amounts
6.5in the account are appropriated to the commissioner for the cost of administering the tax
6.6credit under this section.
6.7(f) The commissioner of revenue shall prescribe the manner in which the credits are
6.8issued and claimed.
6.9    Subd. 3. Transfer and revocation of credits. (a) A qualified project investor who
6.10receives a certificate may assign the certificate to another taxpayer, who is then allowed the
6.11credit under this section and section 290.06, subdivision 37. An assignment is not valid
6.12unless the assignee notifies the commissioner of revenue within 30 days of the date that the
6.13assignment is made. The commissioner of revenue shall prescribe the forms necessary to
6.14provide notification of the assignment and to claim a credit by assignment. Credits passed
6.15through to partners, members, shareholders, or owners under section 290.06, subdivision
6.1637, paragraph (b), are not an assignment of a credit certificate under this subdivision.
6.17(b) If the commissioner discovers that a qualified project investor did not meet the
6.18eligibility requirements for the tax credits under this section after the credits have been
6.19allocated and certificates issued, the commissioner may determine that credit certificate is
6.20revoked and must be repaid by the investor. The commissioner must notify the commissioner
6.21of revenue of every credit revoked and subject to repayment under this section.
6.22    Subd. 4. Reporting. Beginning in 2019, the commissioner must annually report by
6.23March 15 to the chairs and ranking minority members of the committees in the senate and
6.24house of representatives with jurisdiction over taxes and economic development, in
6.25compliance with sections 3.195 and 3.197, on tax credits issued under this section. The
6.26report must include:
6.27(1) information about the availability of workforce housing in greater Minnesota;
6.28(2) information from employers and communities in greater Minnesota about whether
6.29or not workforce housing needs are being met;
6.30(3) which projects have been funded by the workforce housing tax credit and whether
6.31previously funded projects have created economic growth;
6.32(4) any suggested legislation to accelerate construction of workforce housing;
6.33(5) the number and amount of tax credits issued;
7.1(6) the number and amount of tax credits revoked under subdivision 3;
7.2(7) the location, total cost of, and expected rent to be received as a result of qualified
7.3workforce housing projects funded under this section; and
7.4(8) any other relevant information needed to evaluate the effect of the workforce housing
7.5tax credits.
7.6EFFECTIVE DATE.This section is effective for taxable years beginning after December
7.731, 2017, and before January 1, 2019.

7.8    Sec. 2. Minnesota Statutes 2016, section 136A.129, subdivision 3, is amended to read:
7.9    Subd. 3. Program components. (a) An intern must be an eligible student who has been
7.10admitted to a major program that is related to the intern experience as determined by the
7.11eligible institution.
7.12(b) To participate in the program, an eligible institution must:
7.13(1) enter into written agreements with eligible employers to provide internships that are
7.14at least eight weeks long and located in greater Minnesota; and
7.15(2) provide academic credit for the successful completion of the internship or ensure
7.16that it fulfills requirements necessary to complete a vocational technical education program.
7.17(c) To participate in the program, an eligible employer must enter into a written agreement
7.18with an eligible institution specifying that the intern:
7.19(1) would not have been hired without the tax credit described in subdivision 4;
7.20(2) did not work for the employer in the same or a similar job prior to entering the
7.21agreement;
7.22(3) (2) does not replace an existing employee;
7.23(4) (3) has not previously participated in the program;
7.24(5) (4) will be employed at a location in greater Minnesota;
7.25(6) (5) will be paid at least minimum wage for a minimum of 16 hours per week for a
7.26period of at least eight weeks; and
7.27(7) (6) will be supervised and evaluated by the employer.
7.28(d) The written agreement between the eligible institution and the eligible employer
7.29must certify a credit amount to the employer, not to exceed $2,000 per intern. The total
8.1dollar amount of credits that an eligible institution certifies to eligible employers in a calendar
8.2year may not exceed the amount of its allocation under subdivision 4.
8.3(e) Participating eligible institutions and eligible employers must report annually to the
8.4office. The report must include at least the following:
8.5(1) the number of interns hired;
8.6(2) the number of hours and weeks worked by interns; and
8.7(3) the compensation paid to interns.
8.8(f) An internship required to complete an academic program does not qualify for the
8.9greater Minnesota internship program under this section.
8.10EFFECTIVE DATE.This section is effective for taxable years beginning after December
8.1131, 2016.

8.12    Sec. 3. Minnesota Statutes 2016, section 289A.10, subdivision 1, is amended to read:
8.13    Subdivision 1. Return required. (a) In the case of a decedent who has an interest in
8.14property with a situs in Minnesota, the personal representative must submit a Minnesota
8.15estate tax return to the commissioner, on a form prescribed by the commissioner, if:
8.16(1) a federal estate tax return is required to be filed; or
8.17(2) the sum of the federal gross estate and federal adjusted taxable gifts, as defined in
8.18section 2001(b) of the Internal Revenue Code, made within three years of the date of the
8.19decedent's death exceeds $1,200,000 for estates of decedents dying in 2014; $1,400,000 for
8.20estates of decedents dying in 2015; $1,600,000 for estates of decedents dying in 2016;
8.21$1,800,000 for estates of decedents dying in 2017; and $2,000,000 $2,900,000 for estates
8.22of decedents dying in 2018 and thereafter; $3,300,000 for estates of decedents dying in
8.232019; $3,700,000 for estates of decedents dying in 2020; $4,100,000 for estates of decedents
8.24dying in 2021; and $5,000,000 for estates of decedents dying in 2022.
8.25The return must contain a computation of the Minnesota estate tax due. The return must
8.26be signed by the personal representative(b) For estates of decedents dying in 2023 and
8.27thereafter, in the case of a decedent who has an interest in property with a situs in Minnesota,
8.28the personal representative must submit a Minnesota estate tax return to the commissioner,
8.29on a form prescribed by the commissioner, if a federal estate tax return is required to be
8.30filed.
8.31(c) The return must contain a computation of the Minnesota estate tax due. The return
8.32must be signed by the personal representative.
9.1EFFECTIVE DATE.This section is effective for estates of decedents dying after
9.2December 31, 2017.

9.3    Sec. 4. Minnesota Statutes 2016, section 290.01, subdivision 7, is amended to read:
9.4    Subd. 7. Resident. (a) The term "resident" means any individual domiciled in Minnesota,
9.5except that an individual is not a "resident" for the period of time that the individual is a
9.6"qualified individual" as defined in section 911(d)(1) of the Internal Revenue Code, if the
9.7qualified individual notifies the county within three months of moving out of the country
9.8that homestead status be revoked for the Minnesota residence of the qualified individual,
9.9and the property is not classified as a homestead while the individual remains a qualified
9.10individual.
9.11(b) "Resident" also means any individual domiciled outside the state who maintains a
9.12place of abode in the state and spends in the aggregate more than one-half of the tax year
9.13in Minnesota, unless:
9.14(1) the individual or the spouse of the individual is in the armed forces of the United
9.15States; or
9.16(2) the individual is covered under the reciprocity provisions in section 290.081.
9.17For purposes of this subdivision, presence within the state for any part of a calendar day
9.18constitutes a day spent in the state. Individuals shall keep adequate records to substantiate
9.19the days spent outside the state.
9.20The term "abode" means a dwelling maintained by an individual, whether or not owned
9.21by the individual and whether or not occupied by the individual, and includes a dwelling
9.22place owned or leased by the individual's spouse.
9.23(c) In determining where an individual is domiciled, neither the commissioner nor any
9.24court shall consider:
9.25(1) charitable contributions made by an the individual within or without the state in
9.26determining if the individual is domiciled in Minnesota;
9.27(2) the location of the individual's attorney, certified public accountant, or financial
9.28adviser; or
9.29(3) the place of business of a financial institution at which the individual applies for any
9.30new type of credit or at which the individual opens or maintains any type of account.
9.31(d) For purposes of this subdivision, the following terms have the meanings given them:
10.1(1) "financial adviser" means:
10.2(i) an individual or business entity engaged in business as a certified financial planner,
10.3registered investment adviser, licensed insurance producer or agent, or registered securities
10.4broker-dealer representative; or
10.5(ii) a financial institution providing services related to trust or estate administration,
10.6investment management, or financial planning; and
10.7(2) "financial institution" means a financial institution as defined in section 47.015,
10.8subdivision 1; a state or nationally chartered credit union; or a registered broker-dealer
10.9under the Securities and Exchange Act of 1934.
10.10EFFECTIVE DATE.This section is effective for taxable years beginning after December
10.1131, 2016.

10.12    Sec. 5. Minnesota Statutes 2016, section 290.0131, subdivision 10, as amended by Laws
10.132017, chapter 1, section 4, is amended to read:
10.14    Subd. 10. Section 179 expensing. For taxable years beginning before January 1, 2018,
10.1580 percent of the amount by which the deduction allowed under the dollar limits of section
10.16179 of the Internal Revenue Code exceeds the deduction allowable by section 179 of the
10.17Internal Revenue Code, as amended through December 31, 2003, is an addition.
10.18EFFECTIVE DATE.This section is effective for taxable years beginning after December
10.1931, 2017.

10.20    Sec. 6. Minnesota Statutes 2016, section 290.0131, is amended by adding a subdivision
10.21to read:
10.22    Subd. 14. Equity and opportunity donations to qualified foundations. The amount
10.23of the deduction under section 170 of the Internal Revenue Code that represents contributions
10.24to a qualified foundation under section 290.0693 is an addition.
10.25EFFECTIVE DATE.This section is effective for taxable years beginning after December
10.2631, 2017.

10.27    Sec. 7. Minnesota Statutes 2016, section 290.0131, is amended by adding a subdivision
10.28to read:
10.29    Subd. 15. First-time home buyer savings account. The amount for a first-time home
10.30buyer savings account required by section 462D.06, subdivision 2, is an addition.
11.1EFFECTIVE DATE.This section is effective for taxable years beginning after December
11.231, 2016.

11.3    Sec. 8. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
11.4to read:
11.5    Subd. 23. Social Security benefits. (a) A portion of Social Security benefits, as defined
11.6under section 86(d)(1) of the Internal Revenue Code, is allowed as a subtraction, subject to
11.7the limits under paragraphs (b), (c), and (d).
11.8(b) For married taxpayers filing a joint return, the subtraction equals the lesser of Social
11.9Security benefits or $2,500. The subtraction is reduced by two and one-half percent for
11.10every $960 of provisional income over $76,900. In no case is the subtraction less than zero.
11.11(c) For single or head-of-household taxpayers, the subtraction equals the lesser of Social
11.12Security benefits or $1,955. The subtraction is reduced by two and one-half percent for
11.13every $750 of provisional income over $60,200. In no case is the subtraction less than zero.
11.14(d) For married taxpayers filing separate returns, the subtraction equals the lesser of
11.15Social Security benefits or $1,250. The subtraction is reduced by two and one-half percent
11.16for every $480 of provisional income over $38,500. In no case is the subtraction less than
11.17zero.
11.18(e) For purposes of this subdivision, "provisional income" has the meaning given in
11.19section 86 of the Internal Revenue Code.
11.20(f) The commissioner shall adjust the dollar amounts in paragraphs (b) to (d) by the
11.21percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue
11.22Code, except that in section 1(f)(3)(B) of the Internal Revenue Code the word "2016" shall
11.23be substituted for the word "1992." For 2018, the commissioner shall then determine the
11.24percent change from the 12 months ending on August 31, 2016, to the 12 months ending
11.25on August 31, 2017, and in each subsequent year, from the 12 months ending on August
11.2631, 2016, to the 12 months ending on August 31 of the year preceding the taxable year. The
11.27determination of the commissioner pursuant to this subdivision must not be considered a
11.28rule and is not subject to the Administrative Procedure Act contained in chapter 14. The
11.29threshold amount as adjusted must be rounded to the nearest $10 amount. If the amount
11.30ends in $5, the amount is rounded up to the nearest $10 amount.
11.31EFFECTIVE DATE.Paragraphs (a) to (e) are effective for taxable years beginning
11.32after December 31, 2016. Paragraph (f) is effective for taxable years beginning after
11.33December 31, 2017.

12.1    Sec. 9. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
12.2to read:
12.3    Subd. 24. First-time home buyer savings account. (a) The amount for contributions
12.4to and earnings on a first-time home buyer savings account allowed by section 462D.06,
12.5subdivision 1, is a subtraction.
12.6(b) The subtraction allowed under this subdivision for a taxable year is limited to $7,500,
12.7or $15,000 for married joint filers. For a taxpayer whose adjusted gross income, as defined
12.8in section 62 of the Internal Revenue Code, for the taxable year exceeds $125,000, or
12.9$250,000 for married joint filers, the maximum subtraction is reduced $1 for each $4 of
12.10adjusted gross income in excess of that threshold.
12.11(c) The adjusted gross income thresholds under paragraph (b) are annually adjusted for
12.12inflation. Effective for taxable year 2018, the commissioner shall adjust the dollar amount
12.13of the income thresholds at which the subtraction begins to be reduced under paragraph (b)
12.14by the percentage determined under section 1(f) of the Internal Revenue Code, except that
12.15in section 1(f)(3)(B) the word "2016" is substituted for the word "1992." For 2018, the
12.16commissioner shall then determine the percent change from the 12 months ending on August
12.1731, 2016, to the 12 months ending on August 31, 2017, and in each subsequent year, from
12.18the 12 months ending on August 31, 2016, to the 12 months ending on August 31 of the
12.19year preceding the taxable year. The determination of the commissioner under this
12.20subdivision is not a "rule" and is not subject to the Administrative Procedure Act in chapter
12.2114. The threshold amount as adjusted must be rounded to the nearest $100 amount. If the
12.22amount ends in $50, the amount is rounded up to the nearest $100 amount.
12.23EFFECTIVE DATE.This section is effective for taxable years beginning after December
12.2431, 2016.

12.25    Sec. 10. Minnesota Statutes 2016, section 290.0133, subdivision 12, as amended by Laws
12.262017, chapter 1, section 5, is amended to read:
12.27    Subd. 12. Section 179 expensing. For taxable years beginning before January 1, 2018,
12.2880 percent of the amount by which the deduction allowed under the dollar limits of section
12.29179 of the Internal Revenue Code exceeds the deduction allowable by section 179 of the
12.30Internal Revenue Code, as amended through December 31, 2003, is an addition.
12.31EFFECTIVE DATE.This section is effective for taxable years beginning after December
12.3231, 2017.

13.1    Sec. 11. Minnesota Statutes 2016, section 290.0133, is amended by adding a subdivision
13.2to read:
13.3    Subd. 15. Equity and opportunity donations to qualified foundations. The amount
13.4of the deduction under section 170 of the Internal Revenue Code that represents contributions
13.5to a qualified foundation under section 290.0693 is an addition.
13.6EFFECTIVE DATE.This section is effective for taxable years beginning after December
13.731, 2017.

13.8    Sec. 12. Minnesota Statutes 2016, section 290.06, subdivision 2c, is amended to read:
13.9    Subd. 2c. Schedules of rates for individuals, estates, and trusts. For taxable years
13.10beginning after December 21, 2017:
13.11    (a) The income taxes imposed by this chapter upon married individuals filing joint returns
13.12and surviving spouses as defined in section 2(a) of the Internal Revenue Code must be
13.13computed by applying to their taxable net income the following schedule of rates:
13.14    (1) On the first $35,480 $37,970, 5.35 5.0 percent;
13.15    (2) On all over $35,480 $37,970, but not over $140,960 $134,250, 7.05 percent;
13.16    (3) On all over $140,960 $134,250, but not over $250,000 $267,550, 7.85 percent;
13.17(4) On all over $250,000 $267,550, 9.85 percent.
13.18    Married individuals filing separate returns, estates, and trusts must compute their income
13.19tax by applying the above rates to their taxable income, except that the income brackets
13.20will be one-half of the above amounts.
13.21    (b) The income taxes imposed by this chapter upon unmarried individuals must be
13.22computed by applying to taxable net income the following schedule of rates:
13.23    (1) On the first $24,270 $25,970, 5.35 5.0 percent;
13.24    (2) On all over $24,270 $25,970, but not over $79,730 $73,970, 7.05 percent;
13.25    (3) On all over $79,730 $73,970, but not over $150,000 $160,530, 7.85 percent;
13.26(4) On all over $150,000 $160,530, 9.85 percent.
13.27    (c) The income taxes imposed by this chapter upon unmarried individuals qualifying as
13.28a head of household as defined in section 2(b) of the Internal Revenue Code must be
13.29computed by applying to taxable net income the following schedule of rates:
13.30    (1) On the first $29,880 $31,980, 5.35 5.0 percent;
14.1    (2) On all over $29,880 $31,980, but not over $120,070 $114,510, 7.05 percent;
14.2    (3) On all over $120,070 $114,510, but not over $200,000 $214,040, 7.85 percent;
14.3(4) On all over $200,000 $214,040, 9.85 percent.
14.4    (d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax
14.5of any individual taxpayer whose taxable net income for the taxable year is less than an
14.6amount determined by the commissioner must be computed in accordance with tables
14.7prepared and issued by the commissioner of revenue based on income brackets of not more
14.8than $100. The amount of tax for each bracket shall be computed at the rates set forth in
14.9this subdivision, provided that the commissioner may disregard a fractional part of a dollar
14.10unless it amounts to 50 cents or more, in which case it may be increased to $1.
14.11    (e) An individual who is not a Minnesota resident for the entire year must compute the
14.12individual's Minnesota income tax as provided in this subdivision. After the application of
14.13the nonrefundable credits provided in this chapter, the tax liability must then be multiplied
14.14by a fraction in which:
14.15    (1) the numerator is the individual's Minnesota source federal adjusted gross income as
14.16defined in section 62 of the Internal Revenue Code and increased by the additions required
14.17under section 290.0131, subdivisions 2 and 6 to 11, and reduced by the Minnesota assignable
14.18portion of the subtraction for United States government interest under section 290.0132,
14.19subdivision 2 , and the subtractions under section 290.0132, subdivisions 9, 10, 14, 15, 17,
14.20and 18, after applying the allocation and assignability provisions of section 290.081, clause
14.21(a), or 290.17; and
14.22    (2) the denominator is the individual's federal adjusted gross income as defined in section
14.2362 of the Internal Revenue Code, increased by the amounts specified in section 290.0131,
14.24subdivisions 2 and 6 to 11, and reduced by the amounts specified in section 290.0132,
14.25subdivisions 2, 9, 10, 14, 15, 17, and 18.
14.26EFFECTIVE DATE.This section is effective for taxable years beginning after December
14.2731, 2017.

14.28    Sec. 13. Minnesota Statutes 2016, section 290.06, subdivision 2d, is amended to read:
14.29    Subd. 2d. Inflation adjustment of brackets. (a) For taxable years beginning after
14.30December 31, 2013 2018, the minimum and maximum dollar amounts for each rate bracket
14.31for which a tax is imposed in subdivision 2c shall be adjusted for inflation by the percentage
14.32determined under paragraph (b). For the purpose of making the adjustment as provided in
14.33this subdivision all of the rate brackets provided in subdivision 2c shall be the rate brackets
15.1as they existed for taxable years beginning after December 31, 2012 2017, and before
15.2January 1, 2014 2019. The rate applicable to any rate bracket must not be changed. The
15.3dollar amounts setting forth the tax shall be adjusted to reflect the changes in the rate brackets.
15.4The rate brackets as adjusted must be rounded to the nearest $10 amount. If the rate bracket
15.5ends in $5, it must be rounded up to the nearest $10 amount.
15.6(b) The commissioner shall adjust the rate brackets and by the percentage determined
15.7pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in section
15.81(f)(3)(B) the word "2012" "2017" shall be substituted for the word "1992." For 2014 2019,
15.9the commissioner shall then determine the percent change from the 12 months ending on
15.10August 31, 2012 2017, to the 12 months ending on August 31, 2013 2018, and in each
15.11subsequent year, from the 12 months ending on August 31, 2012 2017, to the 12 months
15.12ending on August 31 of the year preceding the taxable year. The determination of the
15.13commissioner pursuant to this subdivision shall not be considered a "rule" and shall not be
15.14subject to the Administrative Procedure Act contained in chapter 14.
15.15No later than December 15 of each year, the commissioner shall announce the specific
15.16percentage that will be used to adjust the tax rate brackets.
15.17EFFECTIVE DATE.This section is effective for taxable years beginning after December
15.1831, 2018.

15.19    Sec. 14. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to
15.20read:
15.21    Subd. 2g. First-time home buyer savings account. In addition to the tax computed
15.22under subdivision 2c, an additional amount of tax applies equal to the additional tax computed
15.23for the taxable year for the account holder of a first-time home buyer account under section
15.24462D.06, subdivision 3.
15.25EFFECTIVE DATE.This section is effective for taxable years beginning after December
15.2631, 2016.

15.27    Sec. 15. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to
15.28read:
15.29    Subd. 2h. Temporary schedule of rates for individuals, estates, and trusts. For taxable
15.30years beginning after December 31, 2016, and before January 1, 2018:
16.1(a) The income taxes imposed by this chapter upon married individuals filing joint returns
16.2and surviving spouses as defined in section 2(a) of the Internal Revenue Code must be
16.3computed by applying to their taxable net income the following schedule of rates:
16.4(1) On the first $37,110, 5.15 percent;
16.5(2) On all over $37,110, but not over $138,180, 7.05 percent;
16.6(3) On all over $138,180, but not over $261,510, 7.85 percent;
16.7(4) On all over $261,510, 9.85 percent.
16.8    Married individuals filing separate returns, estates, and trusts must compute their income
16.9tax by applying the above rates to their taxable income, except that the income brackets
16.10will be one-half of the above amounts.
16.11(b) The income taxes imposed by this chapter upon unmarried individuals must be
16.12computed by applying to taxable net income the following schedule of rates:
16.13(1) On the first $25,390, 5.15 percent;
16.14(2) On all over $25,390, but not over $77,060, 7.05 percent;
16.15(3) On all over $77,060, but not over $156,910, 7.85 percent;
16.16(4) On all over $156,910, 9.85 percent.
16.17(c) The income taxes imposed by this chapter upon unmarried individuals qualifying as
16.18a head of household as defined in section 2(b) of the Internal Revenue Code must be
16.19computed by applying to taxable net income the following schedule of rates:
16.20(1) On the first $31,260, 5.15 percent;
16.21(2) On all over $31,260, but not over $117,790, 7.05 percent;
16.22(3) On all over $117,790, but not over $209,210, 7.85 percent;
16.23(4) On all over $209,210, 9.85 percent.
16.24(d) The provisions of subdivision 2c, paragraphs (d) and (e), apply to this section.
16.25EFFECTIVE DATE.This section is effective for taxable years beginning after December
16.2631, 2016, and before January 1, 2018.

17.1    Sec. 16. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to
17.2read:
17.3    Subd. 37. Workforce housing credit. (a) A qualified project investor is allowed a credit
17.4against the tax under this chapter equal to the amount certified by the commissioner of
17.5employment and economic development under section 116J.5491 to the taxpayer as a
17.6qualified project investor for the taxable year.
17.7(b) The definitions under section 116J.5491 apply to this subdivision.
17.8(c) Credits allowed to a partnership, a limited liability company taxed as a partnership,
17.9S corporation, or multiple owners of property are passed through to the partners, members,
17.10shareholders, or owners, respectively, pro rata to each based on the partner's, member's,
17.11shareholder's, or owner's share of the entity's assets or as specially allocated in the
17.12organizational documents or any other executed agreement, as of the last day of the taxable
17.13year.
17.14(d) Notwithstanding the a tax credit certificate issued by the commissioner of employment
17.15and economic development under section 116J.5491, the commissioner may utilize any
17.16audit and examination powers under chapter 270C or 289A to the extent necessary to verify
17.17that the taxpayer is eligible for the credit and to assess for the amount of any improperly
17.18claimed credit.
17.19EFFECTIVE DATE.This section is effective for taxable years beginning after December
17.2031, 2017, and before January 1, 2019.

17.21    Sec. 17. Minnesota Statutes 2016, section 290.0671, subdivision 1, as amended by Laws
17.222017, chapter 1, section 6, is amended to read:
17.23    Subdivision 1. Credit allowed. (a) An individual who is a resident of Minnesota is
17.24allowed a credit against the tax imposed by this chapter equal to a percentage of earned
17.25income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of the
17.26Internal Revenue Code.
17.27(b) For individuals with no qualifying children, the credit equals 2.10 percent of the first
17.28$6,180 of earned income. The credit is reduced by 2.01 percent of earned income or adjusted
17.29gross income, whichever is greater, in excess of $8,130, but in no case is the credit less than
17.30zero.
17.31(c) For individuals with one qualifying child, the credit equals 9.35 percent of the first
17.32$11,120 of earned income. The credit is reduced by 6.02 percent of earned income or adjusted
18.1gross income, whichever is greater, in excess of $21,190, but in no case is the credit less
18.2than zero.
18.3(d) For individuals with two or more qualifying children, the credit equals 11 percent
18.4of the first $18,240 of earned income. The credit is reduced by 10.82 percent of earned
18.5income or adjusted gross income, whichever is greater, in excess of $25,130, but in no case
18.6is the credit less than zero.
18.7(e) For a part-year resident, the credit must be allocated based on the percentage calculated
18.8under section 290.06, subdivision 2c, paragraph (e).
18.9(f) For a person who was a resident for the entire tax year and has earned income not
18.10subject to tax under this chapter, including income excluded under section 290.0132,
18.11subdivision 10 , the credit must be allocated based on the ratio of federal adjusted gross
18.12income reduced by the earned income not subject to tax under this chapter over federal
18.13adjusted gross income. For purposes of this paragraph, the following clauses are not
18.14considered "earned income not subject to tax under this chapter":
18.15(1) the subtractions for military pay under section 290.0132, subdivisions 11 and 12,
18.16are not considered "earned income not subject to tax under this chapter."For the purposes
18.17of this paragraph,;
18.18(2) the exclusion of combat pay under section 112 of the Internal Revenue Code is not
18.19considered "earned income not subject to tax under this chapter."; and
18.20(3) income derived from an Indian reservation by an enrolled member of the reservation
18.21while living on the reservation.
18.22(g) For tax years beginning after December 31, 2013, the $8,130 in paragraph (b), the
18.23$21,190 in paragraph (c), and the $25,130 in paragraph (d), after being adjusted for inflation
18.24under subdivision 7, are each increased by $5,000 for married taxpayers filing joint returns.
18.25For tax years beginning after December 31, 2013, the commissioner shall annually adjust
18.26the $5,000 by the percentage determined pursuant to the provisions of section 1(f) of the
18.27Internal Revenue Code, except that in section 1(f)(3)(B), the word "2008" shall be substituted
18.28for the word "1992." For 2014, the commissioner shall then determine the percent change
18.29from the 12 months ending on August 31, 2008, to the 12 months ending on August 31,
18.302013, and in each subsequent year, from the 12 months ending on August 31, 2008, to the
18.3112 months ending on August 31 of the year preceding the taxable year. The earned income
18.32thresholds as adjusted for inflation must be rounded to the nearest $10. If the amount ends
18.33in $5, the amount is rounded up to the nearest $10. The determination of the commissioner
18.34under this subdivision is not a rule under the Administrative Procedure Act.
19.1(h) The commissioner shall construct tables showing the amount of the credit at various
19.2income levels and make them available to taxpayers. The tables shall follow the schedule
19.3contained in this subdivision, except that the commissioner may graduate the transition
19.4between income brackets.
19.5EFFECTIVE DATE.This section is effective for taxable years beginning after December
19.631, 2016.

19.7    Sec. 18. Minnesota Statutes 2016, section 290.0674, is amended by adding a subdivision
19.8to read:
19.9    Subd. 6. Inflation adjustment. The credit amount and the income threshold at which
19.10the maximum credit begins to be reduced in subdivision 2 must be adjusted for inflation.
19.11The commissioner shall adjust the credit amount and income threshold by the percentage
19.12determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except
19.13that in section 1(f)(3)(B) the word "2017" shall be substituted for the word "1992." For
19.142019, the commissioner shall then determine the percent change from the 12 months ending
19.15on August 31, 2017, to the 12 months ending on August 31, 2018, and in each subsequent
19.16year, from the 12 months ending August 31, 2017, to the 12 months ending on August 31
19.17of the year preceding the taxable year. The credit amount and income threshold as adjusted
19.18for inflation must be rounded to the nearest $10 amount. If the amount ends in $5, the amount
19.19is rounded up to the nearest $10 amount. The determination of the commissioner under this
19.20subdivision is not a rule subject to the Administrative Procedure Act in chapter 14, including
19.21section 14.386.
19.22EFFECTIVE DATE.This section is effective for taxable years beginning after December
19.2331, 2018.

19.24    Sec. 19. Minnesota Statutes 2016, section 290.068, subdivision 2, is amended to read:
19.25    Subd. 2. Definitions. For purposes of this section, the following terms have the meanings
19.26given.
19.27    (a) "Qualified research expenses" means (i) qualified research expenses and basic research
19.28payments as defined in section 41(b) and (e) of the Internal Revenue Code, except it does
19.29not include expenses incurred for qualified research or basic research conducted outside
19.30the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code; and
19.31(ii) contributions to a nonprofit corporation established and operated pursuant to the
19.32provisions of chapter 317A for the purpose of promoting the establishment and expansion
19.33of business in this state, provided the contributions are invested by the nonprofit corporation
20.1for the purpose of providing funds for small, technologically innovative enterprises in
20.2Minnesota during the early stages of their development.
20.3    (b) "Qualified research" means qualified research as defined in section 41(d) of the
20.4Internal Revenue Code, except that the term does not include qualified research conducted
20.5outside the state of Minnesota.
20.6    (c) "Base amount" means:
20.7    (1) for taxpayers not subject to clause (2), the base amount as defined in section 41(c)
20.8of the Internal Revenue Code, except that the average annual gross receipts must be calculated
20.9using Minnesota sales or receipts under section 290.191 and the definitions contained in
20.10clauses paragraphs (a) and (b) shall apply; or
20.11    (2) for a taxpayer with an alternative simplified credit election in place under subdivision
20.122a for the taxable year, 50 percent of the average qualified research expenses for the three
20.13taxable years preceding the taxable year for which the credit is being determined.
20.14EFFECTIVE DATE.This section is effective for taxable years beginning after December
20.1531, 2017.

20.16    Sec. 20. Minnesota Statutes 2016, section 290.068, is amended by adding a subdivision
20.17to read:
20.18    Subd. 2a. Alternative simplified credit election. (a) A corporation, partnership, or other
20.19taxpayer qualifying for a credit under this section may elect on an original return, including
20.20all extensions, to calculate its base amount under subdivision 2, paragraph (c), clause (2),
20.21for the taxable year. A taxpayer may revoke the election without approval of the
20.22commissioner.
20.23(b) For a partnership, the election must be made by the partnership on the partnership
20.24return or other form, as required by the commissioner, and applies to all of its partners.
20.25EFFECTIVE DATE.This section is effective for taxable years beginning after December
20.2631, 2017.

20.27    Sec. 21. [290.0682] CREDIT FOR ATTAINING MASTER'S DEGREE IN
20.28TEACHER'S LICENSURE FIELD.
20.29    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
20.30the meanings given them.
21.1(b) "Master's degree program" means a graduate-level program at an accredited university
21.2leading to a master of arts or science degree in a core content area directly related to a
21.3qualified teacher's licensure field. The master's degree program may not include pedagogy
21.4or a pedagogy component. To be eligible under this credit, a licensed elementary school
21.5teacher must pursue and complete a master's degree program in a core content area in which
21.6the teacher provides direct classroom instruction.
21.7(c) "Qualified teacher" means a person who:
21.8(1) holds a teaching license issued by the licensing division in the Department of
21.9Education on behalf of the Minnesota Board of Teaching both when the teacher begins the
21.10master's degree program and when the teacher completes the master's degree program;
21.11(2) began a master's degree program after June 30, 2017; and
21.12(3) completes the master's degree program during the taxable year.
21.13(d) "Core content area" means the academic subject of reading, English or language arts,
21.14mathematics, science, foreign languages, civics and government, economics, arts, history,
21.15or geography.
21.16    Subd. 2. Credit allowed. (a) An individual who is a qualified teacher is allowed a credit
21.17against the tax imposed under this chapter. The credit equals $2,500.
21.18(b) For a nonresident or a part-year resident, the credit under this subdivision must be
21.19allocated based on the percentage calculated under section 290.06, subdivision 2c, paragraph
21.20(e).
21.21(c) A qualified teacher may claim the credit in this section only one time for each master's
21.22degree program completed in a core content area.
21.23EFFECTIVE DATE.This section is effective for taxable years beginning after December
21.2431, 2016.

21.25    Sec. 22. [290.0693] EQUITY AND OPPORTUNITY IN EDUCATION TAX CREDIT.
21.26    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
21.27the meanings given.
21.28(b) "Eligible student" means a student who:
21.29(1) resides in Minnesota;
21.30(2) is a member of a household that has total annual income during the year prior to
21.31initial receipt of a qualified scholarship or qualified transportation scholarship, without
22.1consideration of the benefits under this program, that does not exceed an amount equal to
22.2two times the income standard used to qualify for a reduced-price meal under the National
22.3School Lunch Program; and
22.4(3) meets one of the following criteria:
22.5(i) attended a school, as defined in section 120A.22, subdivision 4, in the semester
22.6preceding initial receipt of a qualified scholarship or qualified transportation scholarship;
22.7(ii) is younger than age seven and not enrolled in kindergarten or first grade in the
22.8semester preceding initial receipt of a qualified scholarship;
22.9(iii) previously received a qualified scholarship or qualified transportation scholarship
22.10under this section; or
22.11(iv) lived in Minnesota for less than a year prior to initial receipt of a qualified
22.12scholarship.
22.13(c) "Equity and opportunity in education donation" means a donation to a qualified
22.14foundation that awards qualified scholarships or qualified transportation scholarships.
22.15(d) "Household" means household as used to determine eligibility under the National
22.16School Lunch Program.
22.17(e) "National School Lunch Program" means the program in United States Code, title
22.1842, section 1758.
22.19(f) "Qualified school" means a school operated in Minnesota that is a nonpublic
22.20elementary or secondary school in Minnesota wherein a resident may legally fulfill the
22.21state's compulsory attendance laws that is not operated for profit, and that adheres to the
22.22provisions of United States Code, title 42, section 1981, chapter 121A, sections 121A.03
22.23to 121A.0311, and chapter 363A.
22.24(g) "Qualified foundation" means a nonprofit organization granted an exemption from
22.25the federal income tax under section 501(c)(3) of the Internal Revenue Code that has been
22.26approved as a qualified foundation by the commissioner of revenue under subdivision 5.
22.27(h) "Qualified scholarship" means a payment from a qualified foundation to or on behalf
22.28of the parent or guardian of an eligible student for payment of tuition for enrollment in
22.29grades kindergarten through 12 at a qualified school. A qualified scholarship must not
22.30exceed an amount greater than 70 percent of the state average general education revenue
22.31under section 126C.10, subdivision 1, per pupil unit.
23.1(i) "Total annual income" means the income measure used to determine eligibility under
23.2the National School Lunch Program in United States Code, title 42, section 1758.
23.3(j) "Qualified transportation scholarship" means a payment from a qualified foundation
23.4to or on behalf of a parent or guardian of an eligible student for payment of transportation
23.5to a school, as defined in section 120A.22, subdivision 4. A qualified transportation
23.6scholarship must not exceed an amount greater than 70 percent of the state average general
23.7education revenue under section 126C.10, subdivision 1, per pupil unit.
23.8    Subd. 2. Credit allowed. (a) An individual or corporate taxpayer who has been issued
23.9a credit certificate under subdivision 3 is allowed a credit against the tax due under this
23.10chapter equal to 70 percent of the amount donated during the taxable year to the qualified
23.11foundation designated on the taxpayer's credit certificate. No credit is allowed if the taxpayer
23.12designates a specific child as the beneficiary of the contribution. No credit is allowed to a
23.13taxpayer for an equity and opportunity in education donation made before the taxpayer was
23.14issued a credit certificate as provided in subdivision 3.
23.15(b) The maximum annual credit allowed is:
23.16(1) $21,000 for married joint filers for a one-year donation of $30,000;
23.17(2) $10,500 for other individual filers for a one-year donation of $15,000; and
23.18(3) $105,000 for corporate filers for a one-year donation of $150,000.
23.19(c) A taxpayer must provide a copy of the receipt provided by the qualified foundation
23.20when claiming the credit for the donation if requested by the commissioner.
23.21(d) The credit is limited to the liability for tax under this chapter, including the tax
23.22imposed by sections 290.0921 and 290.0922.
23.23(e) If the amount of the credit under this subdivision for any taxable year exceeds the
23.24limitations under paragraph (d), the excess is a credit carryover to each of the five succeeding
23.25taxable years. The entire amount of the excess unused credit for the taxable year must be
23.26carried first to the earliest of the taxable years to which the credit may be carried. The
23.27amount of the unused credit that may be added under this paragraph may not exceed the
23.28taxpayer's liability for tax, less the credit for the taxable year. No credit may be carried to
23.29a taxable year more than five years after the taxable year in which the credit was earned.
23.30    Subd. 3. Application for credit certificate. (a) The commissioner must make applications
23.31for tax credits for 2018 available on the department's Web site by January 1, 2018.
23.32Applications for subsequent years must be made available by January 1 of the taxable year.
24.1(b) A taxpayer must apply to the commissioner for an equity and opportunity in education
24.2tax credit certificate. The application must be in the form and manner specified by the
24.3commissioner and must designate the qualified foundation to which the taxpayer intends
24.4to make a donation. The commissioner must begin accepting applications for a taxable year
24.5on January 1. The commissioner must issue tax credit certificates under this section on a
24.6first-come, first-served basis until the maximum statewide credit amount has been reached.
24.7The certificates must list the qualified foundation the taxpayer designated on the application.
24.8The maximum statewide credit amount is $35,000,000 per taxable year for taxable years
24.9beginning after December 31, 2017.
24.10(c) The commissioner must not issue a tax credit certificate for an amount greater than
24.11the limits in subdivision 2.
24.12(d) The commissioner must not issue a credit certificate for an application that designates
24.13a qualified foundation that the commissioner has barred from participation as provided in
24.14subdivision 5.
24.15    Subd. 4. Responsibilities of qualified foundations. (a) A qualified foundation must:
24.16(1) award qualified scholarships and qualified transportation scholarships to eligible
24.17students;
24.18(2) not restrict the availability of scholarships to students of one qualified school;
24.19(3) not charge a fee of any kind for a child to be considered for a scholarship; and
24.20(4) require a qualified school receiving payment of tuition through a scholarship funded
24.21by contributions qualifying for the tax credit under this section to sign an agreement that it
24.22will not use different admissions standards for a student with a qualified scholarship or
24.23qualified transportation scholarship.
24.24(b) An entity that is eligible to be a qualified foundation must apply to the commissioner
24.25by September 15 of the year preceding the year in which it will first receive equity and
24.26opportunity in education donations. The application must be in the form and manner
24.27prescribed by the commissioner. The application must:
24.28(1) demonstrate to the commissioner that the entity, if it is a nonprofit organization, has
24.29been granted an exemption from the federal income tax as an organization described in
24.30section 501(c)(3) of the Internal Revenue Code; and
24.31(2) demonstrate the entity's financial accountability by submitting its most recent audited
24.32financial statement prepared by a certified public accountant firm licensed under chapter
25.1326A using the Statements on Auditing Standards issued by the Audit Standards Board of
25.2the American Institute of Certified Public Accountants.
25.3(c) A qualified foundation must provide to taxpayers who make donations or
25.4commitments to donate a receipt or verification on a form approved by the commissioner.
25.5(d) A qualified foundation in each year it awards qualified scholarships or qualified
25.6transportation scholarships to eligible students to enroll in a qualified school must obtain
25.7from the qualified school documentation that the school:
25.8(i) complies with all health and safety laws or codes that apply to nonpublic schools;
25.9(ii) holds a valid occupancy permit if required by its municipality;
25.10(iii) certifies that it adheres to the provisions of chapter 363A and United States Code,
25.11title 42, section 1981; and
25.12(iv) provides academic accountability to parents of students in the program by regularly
25.13reporting to the parents on the student's progress.
25.14A qualified foundation must make the documentation available to the commissioner on
25.15request.
25.16(e) A qualified foundation must, by June 1 of each year following a year in which it
25.17receives donations and awards scholarships, provide the following information to the
25.18commissioner:
25.19(1) financial information that demonstrates the financial viability of the qualified
25.20foundation, if it is to receive donations of $150,000 or more during the year;
25.21(2) documentation that it has conducted criminal background checks on all of its
25.22employees and board members and has excluded from employment or governance any
25.23individuals who might reasonably pose a risk to the appropriate use of contributed funds;
25.24(3) consistent with paragraph (f), document that it has used amounts received as donations
25.25to provide qualified scholarships within one calendar year of the calendar year in which it
25.26received the donation;
25.27(4) a listing of qualified schools that enrolled eligible students to whom the qualified
25.28foundation awarded qualified scholarships; and
25.29(5) the following information prepared by a certified public accountant regarding
25.30donations received and scholarships awarded in the previous calendar year:
25.31(i) the total number and total dollar amount of donations received from taxpayers;
26.1(ii) the total number and total dollar amount of qualified scholarships and qualified
26.2transportation scholarships awarded; and
26.3(iii) the dollar amount of donations used for administrative expenses, as allowed by
26.4paragraph (f).
26.5(f) The foundation may use up to five percent of the amounts received as donations for
26.6reasonable administrative expenses, including but not limited to fund-raising, scholarship
26.7tracking, and reporting requirements.
26.8    Subd. 5. Responsibilities of commissioner. (a) The commissioner must make
26.9applications for an entity to be approved as a qualified foundation for a taxable year available
26.10on the department's Web site by August 1 of the year preceding the taxable year. The
26.11commissioner must approve an application that provides the documentation required in
26.12subdivision 4, paragraph (b), clauses (1) and (2), within 60 days of receiving the application.
26.13The commissioner must notify a foundation that provides incomplete documentation and
26.14the foundation may resubmit its application within 30 days.
26.15(b) By November 15 of each year, the commissioner must post on the department's Web
26.16site the names and addresses of qualified foundations for the next taxable year. The
26.17commissioner must regularly update the names and addresses of any qualified foundations
26.18that have been barred from participating in the program.
26.19(c) The commissioner must prescribe a standardized format for a receipt to be issued by
26.20a qualified foundation to a taxpayer to indicate the value of a donation received and of a
26.21commitment to make a donation.
26.22(d) The commissioner must prescribe a standardized format for qualified foundations
26.23to report the information required under subdivision 4, paragraph (e).
26.24(e) The commissioner may conduct either a financial review or audit of a qualified
26.25foundation upon finding evidence of fraud or intentional misreporting. If the commissioner
26.26determines that the qualified foundation committed fraud or intentionally misreported
26.27information, the qualified foundation is barred from further program participation.
26.28(f) If a qualified foundation fails to submit the documentation required under subdivision
26.294, paragraph (e), by June 1, the commissioner must notify the qualified foundation by July
26.301. A qualified foundation that fails to submit the required information by August 1 is barred
26.31from participation for the next taxable year.
26.32(g) If a qualified foundation fails to comply with the requirements of subdivision 4,
26.33paragraph (e), the commissioner must by September 1 notify the qualified foundation that
27.1it has until November 1 to document that it has remedied its noncompliance. A qualified
27.2foundation that fails to document that it has remedied its noncompliance by November 1 is
27.3barred from participation for the next taxable year.
27.4(h) A qualified foundation barred under paragraph (f) or (g) may become eligible to
27.5participate by submitting the required information in future years.
27.6    Subd. 6. Mandatory inclusion for people with disabilities. No otherwise qualified
27.7individual with a disability, as defined in Minnesota Statutes, shall, solely by reason of the
27.8individual's disability, be excluded from the participation in, be denied the benefits of, or
27.9be subjected to discrimination under any program or activity receiving funding from tax
27.10credits defined within this section.
27.11EFFECTIVE DATE.This section is effective the day following final enactment for
27.12donations made and credits allowed in taxable years beginning after December 31, 2017.

27.13    Sec. 23. Minnesota Statutes 2016, section 290.081, is amended to read:
27.14290.081 INCOME OF NONRESIDENTS, RECIPROCITY.
27.15(a) The compensation received for the performance of personal or professional services
27.16within this state by an individual whose residence, place of abode, and place customarily
27.17returned to at least once a month is in another state, shall be excluded from gross income
27.18to the extent such compensation is subject to an income tax imposed by the state of residence;
27.19provided that such state allows a similar exclusion of compensation received by residents
27.20of Minnesota for services performed therein.
27.21(b) When it is deemed to be in the best interests of the people of this state, the
27.22commissioner may determine that the provisions of paragraph (a) shall not apply. As long
27.23as the provisions of paragraph (a) apply between Minnesota and Wisconsin, the provisions
27.24of paragraph (a) shall apply to any individual who is domiciled in Wisconsin.
27.25(c) For the purposes of paragraph (a), whenever the Wisconsin tax on Minnesota residents
27.26which would have been paid Wisconsin without paragraph (a) exceeds the Minnesota tax
27.27on Wisconsin residents which would have been paid Minnesota without paragraph (a), or
27.28vice versa, then the state with the net revenue loss resulting from calculated under paragraph
27.29(a) (e) shall receive from the other state the amount of such loss. This provision shall be
27.30effective for all years beginning after December 31, 1972. The data used for computing the
27.31loss to either state shall be determined on or before September 30 of the year following the
27.32close of the previous calendar year.
28.1(d) (1) Interest is payable on all amounts calculated under paragraph (c) relating to
28.2taxable years beginning after December 31, 2000. Interest accrues from July 1 of the taxable
28.3year Payments for amounts calculated under paragraph (c) must equal one-quarter of the
28.4estimated annual amount and must be paid at the midpoint of each quarter, on February 15,
28.5May 15, August 15, and November 15.
28.6(2) (e)(1)The commissioner of revenue is authorized to enter into agreements with the
28.7state of Wisconsin specifying the reciprocity payment due dates, conditions constituting
28.8delinquency, interest rates, and a method for computing interest due.
28.9(3) (2) For agreements entered into before October 1, 2014 2017, the annual compensation
28.10required under paragraph (c) must equal at least the net revenue loss minus $1,000,000 up
28.11to $3,000,000 per fiscal year.
28.12(4) For agreements entered into after September 30, 2014, the annual compensation
28.13required under paragraph (c) must equal the net revenue loss per fiscal year.
28.14(5) (3) For the purposes of clauses (3) and (4) this section, "net revenue loss" means the
28.15difference between the amount of Minnesota income taxes Minnesota forgoes by not taxing
28.16Wisconsin residents on income subject to reciprocity and the credit Minnesota would have
28.17been required to give under section 290.06, subdivision 22, to Minnesota residents working
28.18in Wisconsin had there not been reciprocity.
28.19(4) All agreements must include provisions:
28.20(i) providing for a suspension of the agreement if one party to the agreement does not
28.21pay in full by a time proscribed in the agreement;
28.22(ii) setting the interest rate that will be applied, and that interest shall run from the date
28.23the payment is due until the day the payment is made, except that interest from the
28.24reconciliation payments runs from July 1 of the tax year until paid;
28.25(iii) stating a time for annual reconciliation must be completed by October 31 of the
28.26year following the tax year, and the time for payment of any amounts to be completed by
28.27no later than December 1 of the year following the tax year;
28.28(iv) requiring the parties to jointly conduct updated benchmark studies every five years
28.29beginning tax year 2018;
28.30(v) requiring each party to the agreement to require taxpayers who request exemption
28.31from withholding in the state where they work to make an annual application and that a list
28.32of participants will be exchanged annually; and
29.1(vi) the sum of the amount of the quarterly payments must be a reasonable estimate of
29.2the revenue loss as defined in item (iii).
29.3(e) (f) If an agreement cannot be reached as to the amount of the loss, the commissioner
29.4of revenue and the taxing official of the state of Wisconsin shall each appoint a member of
29.5a board of arbitration and these members shall appoint the third member of the board. The
29.6board shall select one of its members as chair. Such board may administer oaths, take
29.7testimony, subpoena witnesses, and require their attendance, require the production of books,
29.8papers and documents, and hold hearings at such places as are deemed necessary. The board
29.9shall then make a determination as to the amount to be paid the other state which
29.10determination shall be final and conclusive.
29.11(f) (g) The commissioner may furnish copies of returns, reports, or other information to
29.12the taxing official of the state of Wisconsin, a member of the board of arbitration, or a
29.13consultant under joint contract with the states of Minnesota and Wisconsin for the purpose
29.14of making a determination as to the amount to be paid the other state under the provisions
29.15of this section. Prior to the release of any information under the provisions of this section,
29.16the person to whom the information is to be released shall sign an agreement which provides
29.17that the person will protect the confidentiality of the returns and information revealed thereby
29.18to the extent that it is protected under the laws of the state of Minnesota.
29.19EFFECTIVE DATE.This section is effective for taxable years beginning after December
29.2031, 2017.

29.21    Sec. 24. Minnesota Statutes 2016, section 290.091, subdivision 2, is amended to read:
29.22    Subd. 2. Definitions. For purposes of the tax imposed by this section, the following
29.23terms have the meanings given:
29.24    (a) "Alternative minimum taxable income" means the sum of the following for the taxable
29.25year:
29.26    (1) the taxpayer's federal alternative minimum taxable income as defined in section
29.2755(b)(2) of the Internal Revenue Code;
29.28    (2) the taxpayer's itemized deductions allowed in computing federal alternative minimum
29.29taxable income, but excluding:
29.30    (i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
29.31    (ii) the medical expense deduction;
29.32    (iii) the casualty, theft, and disaster loss deduction; and
30.1    (iv) the impairment-related work expenses of a disabled person;
30.2    (3) for depletion allowances computed under section 613A(c) of the Internal Revenue
30.3Code, with respect to each property (as defined in section 614 of the Internal Revenue Code),
30.4to the extent not included in federal alternative minimum taxable income, the excess of the
30.5deduction for depletion allowable under section 611 of the Internal Revenue Code for the
30.6taxable year over the adjusted basis of the property at the end of the taxable year (determined
30.7without regard to the depletion deduction for the taxable year);
30.8    (4) to the extent not included in federal alternative minimum taxable income, the amount
30.9of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue
30.10Code determined without regard to subparagraph (E);
30.11    (5) to the extent not included in federal alternative minimum taxable income, the amount
30.12of interest income as provided by section 290.0131, subdivision 2; and
30.13    (6) the amount of addition required by section 290.0131, subdivisions 9 to 11;
30.14    less the sum of the amounts determined under the following:
30.15    (1) interest income as defined in section 290.0132, subdivision 2;
30.16    (2) an overpayment of state income tax as provided by section 290.0132, subdivision 3,
30.17to the extent included in federal alternative minimum taxable income;
30.18    (3) the amount of investment interest paid or accrued within the taxable year on
30.19indebtedness to the extent that the amount does not exceed net investment income, as defined
30.20in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted
30.21in computing federal adjusted gross income;
30.22    (4) amounts subtracted from federal taxable income as provided by section 290.0132,
30.23subdivisions 7 , 9 to 15, 17, and 21, 23, and 24; and
30.24(5) the amount of the net operating loss allowed under section 290.095, subdivision 11,
30.25paragraph (c).
30.26    In the case of an estate or trust, alternative minimum taxable income must be computed
30.27as provided in section 59(c) of the Internal Revenue Code.
30.28    (b) "Investment interest" means investment interest as defined in section 163(d)(3) of
30.29the Internal Revenue Code.
30.30    (c) "Net minimum tax" means the minimum tax imposed by this section.
31.1    (d) "Regular tax" means the tax that would be imposed under this chapter (without regard
31.2to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed
31.3under this chapter.
31.4    (e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income
31.5after subtracting the exemption amount determined under subdivision 3.
31.6EFFECTIVE DATE.This section is effective for taxable years beginning after December
31.731, 2016.

31.8    Sec. 25. Minnesota Statutes 2016, section 291.005, subdivision 1, as amended by Laws
31.92017, chapter 1, section 8, is amended to read:
31.10    Subdivision 1. Scope. Unless the context otherwise clearly requires, the following terms
31.11used in this chapter shall have the following meanings:
31.12    (1) "Commissioner" means the commissioner of revenue or any person to whom the
31.13commissioner has delegated functions under this chapter.
31.14    (2) "Federal gross estate" means the gross estate of a decedent as required to be valued
31.15and otherwise determined for federal estate tax purposes under the Internal Revenue Code,
31.16increased by the value of any property in which the decedent had a qualifying income interest
31.17for life and for which an election was made under section 291.03, subdivision 1d, for
31.18Minnesota estate tax purposes, but was not made for federal estate tax purposes.
31.19    (3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986,
31.20as amended through December 16, 2016.
31.21    (4) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
31.22excluding therefrom any property included in the estate which has its situs outside Minnesota,
31.23and (b) including any property omitted from the federal gross estate which is includable in
31.24the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.
31.25    (5) "Nonresident decedent" means an individual whose domicile at the time of death
31.26was not in Minnesota.
31.27    (6) "Personal representative" means the executor, administrator or other person appointed
31.28by the court to administer and dispose of the property of the decedent. If there is no executor,
31.29administrator or other person appointed, qualified, and acting within this state, then any
31.30person in actual or constructive possession of any property having a situs in this state which
31.31is included in the federal gross estate of the decedent shall be deemed to be a personal
32.1representative to the extent of the property and the Minnesota estate tax due with respect
32.2to the property.
32.3    (7) "Resident decedent" means an individual whose domicile at the time of death was
32.4in Minnesota. The provisions of section 290.01, subdivision 7, paragraph (c), apply to
32.5determinations of domicile under this chapter.
32.6    (8) "Situs of property" means, with respect to:
32.7    (i) real property, the state or country in which it is located;
32.8    (ii) tangible personal property, the state or country in which it was normally kept or
32.9located at the time of the decedent's death or for a gift of tangible personal property within
32.10three years of death, the state or country in which it was normally kept or located when the
32.11gift was executed;
32.12    (iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue
32.13Code, owned by a nonresident decedent and that is normally kept or located in this state
32.14because it is on loan to an organization, qualifying as exempt from taxation under section
32.15501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is
32.16deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
32.17    (iv) intangible personal property, the state or country in which the decedent was domiciled
32.18at death or for a gift of intangible personal property within three years of death, the state or
32.19country in which the decedent was domiciled when the gift was executed.
32.20    For a nonresident decedent with an ownership interest in a pass-through entity with
32.21assets that include real or tangible personal property, situs of the real or tangible personal
32.22property, including qualified works of art, is determined as if the pass-through entity does
32.23not exist and the real or tangible personal property is personally owned by the decedent. If
32.24the pass-through entity is owned by a person or persons in addition to the decedent, ownership
32.25of the property is attributed to the decedent in proportion to the decedent's capital ownership
32.26share of the pass-through entity.
32.27(9) "Pass-through entity" includes the following:
32.28(i) an entity electing S corporation status under section 1362 of the Internal Revenue
32.29Code;
32.30(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
33.1(iii) a single-member limited liability company or similar entity, regardless of whether
33.2it is taxed as an association or is disregarded for federal income tax purposes under Code
33.3of Federal Regulations, title 26, section 301.7701-3; or
33.4(iv) a trust to the extent the property is includible in the decedent's federal gross estate;
33.5but excludes
33.6    (v) an entity whose ownership interest securities are traded on an exchange regulated
33.7by the Securities and Exchange Commission as a national securities exchange under section
33.86 of the Securities Exchange Act, United States Code, title 15, section 78f.
33.9EFFECTIVE DATE.This section is effective retroactively for estates of decedents
33.10dying after December 31, 2016.

33.11    Sec. 26. Minnesota Statutes 2016, section 291.016, subdivision 3, is amended to read:
33.12    Subd. 3. Subtraction. (a) For estates of decedents dying in 2017, the value of qualified
33.13small business property under section 291.03, subdivision 9, and the value of qualified farm
33.14property under section 291.03, subdivision 10, or the result of $5,000,000 minus $1,800,000,
33.15whichever is less, may be subtracted in computing the Minnesota taxable estate but must
33.16not reduce the Minnesota taxable estate to less than zero.
33.17(b) For estates of decedents dying after December 31, 2017, and before January 1, 2022,
33.18the subtraction equals the sum of the applicable amount for the year of death under paragraphs
33.19(c) and (d).
33.20(c) The value of qualified small business property under section 291.03, subdivision 9,
33.21and the value of qualified farm property under section 291.03, subdivision 10, or the result
33.22of $5,000,000 minus the amount for the year of death listed in clauses (1) to (5), whichever
33.23is less, up to the amounts listed in clauses (1) to (4), may be subtracted included in computing
33.24the Minnesota taxable estate but must not reduce the Minnesota taxable estate to less than
33.25zero:
33.26(1) $1,200,000 for estates of decedents dying in 2014;
33.27(2) $1,400,000 $2,100,000 for estates of decedents dying in 2015 2018;
33.28(3) $1,600,000 (2) $1,700,000 for estates of decedents dying in 2016 2019;
33.29(4) $1,800,000 (3) $1,300,000 for estates of decedents dying in 2017; and 2020
33.30(5) $2,000,000 (4) $900,000 for estates of decedents dying in 2018 and thereafter 2021.
34.1(d) In addition to the amounts under paragraph (b), the following amount for the year
34.2of death listed in clauses (1) to (4) may be included in computing the Minnesota taxable
34.3estate:
34.4(1) $2,900,000 for estates of decedents dying in 2018;
34.5(2) $3,300,000 for estates of decedents dying in 2019;
34.6(3) $3,700,000 for estates of decedents dying in 2020; and
34.7(4) $4,100,000 for estates of decedents dying in 2021.
34.8(e) For estates of decedents dying in 2022, the subtraction equals $5,000,000.
34.9(f) For estates of decedents dying in 2023 and thereafter, the subtraction equals the
34.10decedent's applicable federal exclusion amount under section 2010(c)(2) of the Internal
34.11Revenue Code, but must not reduce the Minnesota taxable estate to less than zero.
34.12EFFECTIVE DATE.This section is effective retroactively for estates of decedents
34.13dying after December 31, 2016.

34.14    Sec. 27. Minnesota Statutes 2016, section 291.03, subdivision 1, is amended to read:
34.15    Subdivision 1. Tax amount. The tax imposed must be computed by applying to the
34.16Minnesota taxable estate the following schedule of rates and then the resulting amount
34.17multiplied by a fraction, not greater than one, the numerator of which is the value of the
34.18Minnesota gross estate plus the value of gifts under section 291.016, subdivision 2, clause
34.19(3), with a Minnesota situs, and the denominator of which is the federal gross estate plus
34.20the value of gifts under section 291.016, subdivision 2, clause (3):
34.21    (a) For estates of decedents dying in 2014:

34.22	Amount of Minnesota Taxable Estate	Rate of Tax
34.23	Not over $1,200,000	None
34.24	Over $1,200,000 but not over $1,400,000	nine percent of the excess over $1,200,000
34.25 34.26	Over $1,400,000 but not over $3,600,000	$18,000 plus ten percent of the excess over $1,400,000
34.27 34.28	Over $3,600,000 but not over $4,100,000	$238,000 plus 10.4 percent of the excess over $3,600,000
34.29 34.30	Over $4,100,000 but not over $5,100,000	$290,000 plus 11.2 percent of the excess over $4,100,000
34.31 34.32	Over $5,100,000 but not over $6,100,000	$402,000 plus 12 percent of the excess over $5,100,000
34.33 34.34	Over $6,100,000 but not over $7,100,000	$522,000 plus 12.8 percent of the excess over $6,100,000
34.35 34.36	Over $7,100,000 but not over $8,100,000	$650,000 plus 13.6 percent of the excess over $7,100,000
35.1 35.2	Over $8,100,000 but not over $9,100,000	$786,000 plus 14.4 percent of the excess over $8,100,000
35.3 35.4	Over $9,100,000 but not over $10,100,000	$930,000 plus 15.2 percent of the excess over $9,100,000
35.5 35.6	Over $10,100,000	$1,082,000 plus 16 percent of the excess over $10,100,000

35.7(b) For estates of decedents dying in 2015:

35.8	Amount of Minnesota Taxable Estate	Rate of Tax
35.9	Not over $1,400,000	None
35.10	Over $1,400,000 but not over $3,600,000	ten percent of the excess over $1,400,000
35.11 35.12	Over $3,600,000 but not over $6,100,000	$220,000 plus 12 percent of the excess over $3,600,000
35.13 35.14	Over $6,100,000 but not over $7,100,000	$520,000 plus 12.8 percent of the excess over $6,100,000
35.15 35.16	Over $7,100,000 but not over $8,100,000	$648,000 plus 13.6 percent of the excess over $7,100,000
35.17 35.18	Over $8,100,000 but not over $9,100,000	$784,000 plus 14.4 percent of the excess over $8,100,000
35.19 35.20	Over $9,100,000 but not over $10,100,000	$928,000 plus 15.2 percent of the excess over $9,100,000
35.21 35.22	Over $10,100,000	$1,080,000 plus 16 percent of the excess over $10,100,000

35.23(c) For estates of decedents dying in 2016:

35.24	Amount of Minnesota Taxable Estate	Rate of Tax
35.25	Not over $1,600,000	None
35.26	Over $1,600,000 but not over $2,600,000	ten percent of the excess over $1,600,000
35.27 35.28	Over $2,600,000 but not over $6,100,000	$100,000 plus 12 percent of the excess over $2,600,000
35.29 35.30	Over $6,100,000 but not over $7,100,000	$520,000 plus 12.8 percent of the excess over $6,100,000
35.31 35.32	Over $7,100,000 but not over $8,100,000	$648,000 plus 13.6 percent of the excess over $7,100,000
35.33 35.34	Over $8,100,000 but not over $9,100,000	$784,000 plus 14.4 percent of the excess over $8,100,000
35.35 35.36	Over $9,100,000 but not over $10,100,000	$928,000 plus 15.2 percent of the excess over $9,100,000
35.37 35.38	Over $10,100,000	$1,080,000 plus 16 percent of the excess over $10,100,000

35.39(d) (a) For estates of decedents dying in 2017:

35.40	Amount of Minnesota Taxable Estate	Rate of Tax
35.41	Not over $1,800,000	None
35.42	Over $1,800,000 but not over $2,100,000	ten percent of the excess over $1,800,000
35.43 35.44	Over $2,100,000 but not over $5,100,000	$30,000 plus 12 percent of the excess over $2,100,000
35.45 35.46	Over $5,100,000 but not over $7,100,000	$390,000 plus 12.8 percent of the excess over $5,100,000
36.1 36.2	Over $7,100,000 but not over $8,100,000	$646,000 plus 13.6 percent of the excess over $7,100,000
36.3 36.4	Over $8,100,000 but not over $9,100,000	$782,000 plus 14.4 percent of the excess over $8,100,000
36.5 36.6	Over $9,100,000 but not over $10,100,000	$926,000 plus 15.2 percent of the excess over $9,100,000
36.7 36.8	Over $10,100,000	$1,078,000 plus 16 percent of the excess over $10,100,000

36.9(e) (b) For estates of decedents dying in 2018 and thereafter:

36.10	Amount of Minnesota Taxable Estate	Rate of Tax
36.11	Not over $2,000,000 $7,100,000	None 13 percent
36.12	Over $2,000,000 but not over $2,600,000	ten percent of the excess over $2,000,000
36.13 36.14	Over $2,600,000 but not over $7,100,000	$60,000 plus 13 percent of the excess over $2,600,000
36.15 36.16	Over $7,100,000 but not over $8,100,000	$645,000 $923,000 plus 13.6 percent of the excess over $7,100,000
36.17 36.18	Over $8,100,000 but not over $9,100,000	$781,000 $1,059,000 plus 14.4 percent of the excess over $8,100,000
36.19 36.20	Over $9,100,000 but not over $10,100,000	$925,000 $1,203,000 plus 15.2 percent of the excess over $9,100,000
36.21 36.22	Over $10,100,000	$1,077,000 $1,355,000 plus 16 percent of the excess over $10,100,000

36.23EFFECTIVE DATE.This section is effective retroactively for estates of decedents
36.24dying after December 31, 2016.

36.25    Sec. 28. Minnesota Statutes 2016, section 291.03, subdivision 11, is amended to read:
36.26    Subd. 11. Recapture tax. (a) If, within three years after the decedent's death and before
36.27the death of the qualified heir, the qualified heir disposes of any interest in the qualified
36.28property, other than by a disposition to a family member, or a family member ceases to
36.29satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional estate
36.30tax is imposed on the property. In the case of a sole proprietor, if the qualified heir replaces
36.31qualified small business property excluded under subdivision 9 with similar property, then
36.32the qualified heir will not be treated as having disposed of an interest in the qualified property.
36.33(b) The amount of the additional tax equals the amount of the exclusion claimed by the
36.34estate under subdivision 8, paragraph (d), multiplied by 16 percent.
36.35(c) The additional tax under this subdivision is due on the day which is six months after
36.36the date of the disposition or cessation in paragraph (a).
36.37(d) The tax under this subdivision does not apply to the following: acquisition of title
36.38or possession of the qualified property by a federal, state, or local government unit, or any
37.1other entity with the power of eminent domain for a public purpose, as defined in section
37.2117.025, subdivision 11, within the three-year holding period.
37.3EFFECTIVE DATE.This section is effective retroactively for estates of decedents
37.4dying after June 30, 2011.

37.5    Sec. 29. [462D.01] CITATION.
37.6This chapter may be cited as the "First-Time Home Buyer Savings Account Act."
37.7EFFECTIVE DATE.This section is effective the day following final enactment.

37.8    Sec. 30. [462D.02] DEFINITIONS.
37.9    Subdivision 1. Definitions. For purposes of this chapter, the following terms have the
37.10meanings given.
37.11    Subd. 2. Account holder. "Account holder" means an individual who establishes,
37.12individually or jointly with one or more other individuals, a first-time home buyer savings
37.13account.
37.14    Subd. 3. Allowable closing costs. "Allowable closing costs" means a disbursement listed
37.15on a settlement statement for the purchase of a single-family residence in Minnesota by a
37.16qualified beneficiary.
37.17    Subd. 4. Commissioner. "Commissioner" means the commissioner of revenue.
37.18    Subd. 5. Eligible costs. "Eligible costs" means the down payment and allowable closing
37.19costs for the purchase of a single-family residence in Minnesota by a qualified beneficiary.
37.20Eligible costs include paying for the cost of construction of or financing the construction
37.21of a single-family residence.
37.22    Subd. 6. Financial institution. "Financial institution" means a bank, bank and trust,
37.23trust company with banking powers, savings bank, savings association, or credit union,
37.24organized under the laws of this state, any other state, or the United States; an industrial
37.25loan and thrift under chapter 53 or the laws of another state and authorized to accept deposits;
37.26or a money market mutual fund registered under the federal Investment Company Act of
37.271940 and regulated under rule 2a-7, promulgated by the Securities and Exchange Commission
37.28under that act.
37.29    Subd. 7. First-time home buyer. "First-time home buyer" means an individual, and if
37.30married, the individual's spouse, who has no present ownership interest in a principal
37.31residence during the three-year period ending on the earlier of:
38.1(1) the date of the purchase of the single-family residence funded, in part, with proceeds
38.2from the first-time home buyer savings account; or
38.3(2) the close of the taxable year for which a subtraction is claimed under sections
38.4290.0132 and 462D.06.
38.5    Subd. 8. First-time home buyer savings account. "First-time home buyer savings
38.6account" or "account" means an account with a financial institution that an account holder
38.7designates as a first-time home buyer savings account, as provided in section 462D.03, to
38.8pay or reimburse eligible costs for the purchase of a single-family residence by a qualified
38.9beneficiary.
38.10    Subd. 9. Internal Revenue Code. "Internal Revenue Code" has the meaning given in
38.11section 290.01.
38.12    Subd. 10. Principal residence. "Principal residence" has the meaning given in section
38.13121 of the Internal Revenue Code.
38.14    Subd. 11. Qualified beneficiary. "Qualified beneficiary" means a first-time home buyer
38.15who is a Minnesota resident and is designated as the qualified beneficiary of a first-time
38.16home buyer savings account by the account holder.
38.17    Subd. 12. Single-family residence. "Single-family residence" means a single-family
38.18residence located in this state and owned and occupied by or to be occupied by a qualified
38.19beneficiary as the qualified beneficiary's principal residence, which may include a
38.20manufactured home, trailer, mobile home, condominium unit, townhome, or cooperative.
38.21EFFECTIVE DATE.This section is effective the day following final enactment.

38.22    Sec. 31. [462D.03] ESTABLISHMENT OF ACCOUNTS.
38.23    Subdivision 1. Accounts established. An individual may open an account with a financial
38.24institution and designate the account as a first-time home buyer savings account to be used
38.25to pay or reimburse the designated qualified beneficiary's eligible costs.
38.26    Subd. 2. Designation of qualified beneficiary. (a) The account holder must designate
38.27a first-time home buyer as the qualified beneficiary of the account by April 15 of the year
38.28following the taxable year in which the account was established. The account holder may
38.29be the qualified beneficiary. The account holder may change the designated qualified
38.30beneficiary at any time, but no more than one qualified beneficiary may be designated for
38.31an account at any one time. For purposes of the one beneficiary restriction, a married couple
39.1qualifies as one beneficiary. Changing the designated qualified beneficiary of an account
39.2does not affect computation of the ten-year period under section 462D.06, subdivision 2.
39.3(b) The commissioner shall establish a process for account holders to notify the state
39.4that permits recording of the account, the account holder or holders, any transfers under
39.5section 462D.04, subdivision 2, and the designated qualified beneficiary for each account.
39.6This may be done upon filing the account holder's income tax return or in any other way
39.7the commissioner determines to be appropriate.
39.8    Subd. 3. Joint account holders. An individual may jointly own a first-time home buyer
39.9account with another person if the joint account holders file a married joint income tax
39.10return.
39.11    Subd. 4. Multiple accounts. (a) An individual may be the account holder of more than
39.12one first-time home buyer savings account, but must not hold or own multiple accounts that
39.13designate the same qualified beneficiary.
39.14(b) An individual may be designated as the qualified beneficiary on more than one
39.15first-time home buyer savings account.
39.16    Subd. 5. Contributions. Only cash may be contributed to a first-time home buyer savings
39.17account. Individuals other than the account holder may contribute to an account. No limitation
39.18applies to the amount of contributions that may be made to or retained in a first-time home
39.19buyer savings account.
39.20EFFECTIVE DATE.This section is effective the day following final enactment.

39.21    Sec. 32. [462D.04] ACCOUNT HOLDER RESPONSIBILITIES.
39.22    Subdivision 1. Expenses; reporting. The account holder must:
39.23(1) not use funds in a first-time home buyer savings account to pay expenses of
39.24administering the account, except that a service fee may be deducted from the account by
39.25the financial institution in which the account is held; and
39.26(2) submit to the commissioner, in the form and manner required by the commissioner:
39.27(i) detailed information regarding the first-time home buyer savings account, including
39.28a list of transactions for the account during the taxable year and the Form 1099 issued by
39.29the financial institution for the account for the taxable year; and
39.30(ii) upon withdrawal of funds from the account, a detailed account of the eligible costs
39.31for which the account funds were expended and a statement of the amount of funds remaining
39.32in the account, if any.
40.1    Subd. 2. Transfers. An account holder may withdraw funds, in whole or part, from a
40.2first-time home buyer savings account and deposit the funds in another first-time home
40.3buyer savings account held by a different financial institution or the same financial institution.
40.4EFFECTIVE DATE.This section is effective the day following final enactment.

40.5    Sec. 33. [462D.05] FINANCIAL INSTITUTIONS.
40.6(a) A financial institution is not required to take any action to ensure compliance with
40.7this chapter, including to:
40.8(1) designate an account, designate qualified beneficiaries, or modify the financial
40.9institution's account contracts or systems in any way;
40.10(2) track the use of money withdrawn from a first-time home buyer savings account;
40.11(3) allocate funds in a first-time home buyer savings account among joint account holders
40.12or multiple qualified beneficiaries; or
40.13(4) report any information to the commissioner or any other government that is not
40.14otherwise required by law.
40.15(b) A financial institution is not responsible or liable for:
40.16(1) determining or ensuring that an account satisfies the requirements of this chapter or
40.17that its funds are used for eligible costs; or
40.18(2) reporting or remitting taxes or penalties related to the use of a first-time home buyer
40.19savings account.
40.20EFFECTIVE DATE.This section is effective the day following final enactment.

40.21    Sec. 34. [462D.06] SUBTRACTION; ADDITION; ADDITIONAL TAX.
40.22    Subdivision 1. Subtraction. (a) An account holder is allowed a subtraction from federal
40.23taxable income equal to the sum of:
40.24(1) the amount the individual contributed to a first-time home buyer savings account
40.25during the taxable year not to exceed $5,000, or $10,000 for a married couple filing a joint
40.26return; and
40.27(2) interest or dividends earned on the first-time home buyer savings account during the
40.28taxable year.
40.29(b) The subtraction under paragraph (a) is allowed each year in which a contribution is
40.30made for the ten taxable years including and following the taxable year in which the account
41.1was established. The total subtraction for all taxable years and for all first-time home buyer
41.2accounts established by the individual for a qualified beneficiary is limited to $50,000. No
41.3person other than the account holder who deposits funds in a first-time home buyer savings
41.4account is allowed a subtraction under this section.
41.5    Subd. 2. Addition. (a) An account holder must add to federal taxable income the sum
41.6of the following amounts:
41.7(1) any amount withdrawn from a first-time home buyer savings account during the
41.8taxable year and used neither to pay eligible costs nor for a transfer permitted under section
41.9462D.04, subdivision 2; and
41.10(2) any amount remaining in the first-time home buyer savings account at the close of
41.11the tenth taxable year after the taxable year in which the account was established.
41.12(b) For an account that received a transfer under section 462D.04, subdivision 2, the
41.13ten-year period under paragraph (a), clause (2), ends at the close of the earliest taxable year
41.14that applies to either account under that clause.
41.15    Subd. 3. Additional tax. The account holder is liable for an additional tax equal to ten
41.16percent of the addition under subdivision 2 for the taxable year. This amount must be added
41.17to the amount due under section 290.06. The tax under this subdivision does not apply to:
41.18(1) a withdrawal because of the account holder's or designated qualified beneficiary's
41.19death or disability; and
41.20(2) a disbursement of assets of the account under federal bankruptcy law.
41.21EFFECTIVE DATE.This section is effective for taxable years beginning after December
41.2231, 2016.

41.23    Sec. 35. INCOME TAX RECIPROCITY BENCHMARK STUDY.
41.24(a) The Department of Revenue, in conjunction with the Wisconsin Department of
41.25Revenue, must, provided the conditions of paragraph (d) are satisfied, conduct a study to
41.26determine at least the following:
41.27(1) the number of residents of each state who earn income from personal services in the
41.28other state;
41.29(2) the total amount of income earned by residents of each state who earn income from
41.30personal services in the other state; and
42.1(3) the change in tax revenue in each state if an income tax reciprocity arrangement were
42.2resumed between the two states under which the taxpayers were required to pay income
42.3taxes on the income only in their state of residence.
42.4(b) The study must use information obtained from each state's income tax returns for
42.5tax year 2017, and from any other source of information the departments determine is
42.6necessary to complete the study.
42.7(c) No later than March 1, 2019, the Department of Revenue must submit a report
42.8containing the results of the study to the governor and to the chairs and ranking minority
42.9members of the legislative committees having jurisdiction over taxes, in compliance with
42.10Minnesota Statutes, sections 3.195 and 3.197.
42.11(d) The department shall conduct the study only if the commissioner of revenue receives
42.12notice from the secretary of revenue that the Wisconsin Department of Revenue will fully
42.13participate in the study.
42.14EFFECTIVE DATE.This section is effective the day following final enactment.

42.15    Sec. 36. PENSION INCOME REPORT.
42.16By March 15, 2018, the commissioner of revenue, in conjunction with the Legislative
42.17Commission on Pensions and Retirement, shall provide a report to the senate and house of
42.18representatives committees with jurisdiction over taxes and the Legislative Commission on
42.19Pensions and Retirement that includes the following information:
42.20(1) the number of Minnesota recipients, including survivors, of a basic member pension
42.21plan governed by Minnesota Statutes, chapter 3A, 352B, 353, 354, or 354A, that is based
42.22on service for which the member or survivor is not also receiving Social Security benefits;
42.23(2) the number of Minnesota recipients, including survivors, of any retirement system
42.24administered by the federal government for which the recipient or survivor is not also
42.25receiving Social Security benefits;
42.26(3) the number of Minnesota recipients, including survivors, of an annuity or benefit
42.27from a public retirement system of or created by another state or any of its political
42.28subdivisions, where the income tax laws of the other state permit a reciprocal deduction or
42.29exemption of retirement or pension benefits received from a public retirement system;
42.30(4) the average and median amount of pension or retirement benefit income received by
42.31the individuals in each of clauses (1) to (3); and
43.1(5) an estimate of the amount of a subtraction for annuities or benefits received by the
43.2individuals in each of clauses (1) to (3) that would be proportionate to the subtraction for
43.3Social Security benefits under section 8.

43.4    Sec. 37. REPORT OF FREE ELECTRONIC FILING FOR INDIVIDUAL INCOME
43.5TAX RETURNS.
43.6(a) By March 16, 2018, the commissioner of revenue must provide a written report to
43.7the chairs and ranking minority members of the legislative committees with jurisdiction
43.8over taxes regarding free electronic filing options for individual income tax filing, including
43.9a vendor-based solution. The report must include responses from a commissioner's request
43.10for information to consumer-based tax filing software vendors. The request for information
43.11may include, but is not limited to, seeking information on the following aspects of a free
43.12electronic filing solution:
43.13(1) costs, on a per return basis, that would be charged to the state of Minnesota to provide
43.14an electronic individual income tax return preparation, submission, and payment remittance
43.15process;
43.16(2) vendor capability to provide customer service and issue resolution to taxpayers using
43.17the software;
43.18(3) vendor capability to provide and maintain an appropriate link between the Department
43.19of Revenue and the Internal Revenue Service Modernized Electronic Filing Program;
43.20(4) vendor security capabilities to ensure that taxpayer return information is maintained
43.21and protected as required by Minnesota Statutes, chapters 13 and 270B, Internal Revenue
43.22Service Publication 1075, and any other applicable requirements;
43.23(5) products for the free filing and submitting of both Minnesota and federal returns
43.24offered to customers and the thresholds for using those products; and
43.25(6) add-on products offered to customers and their costs.
43.26(b) The report required under paragraph (a) must comply with Minnesota Statutes,
43.27sections 3.195 and 3.197.
43.28EFFECTIVE DATE.This section is effective the day following final enactment.

43.29    Sec. 38. STUDENT LOAN CREDIT.
43.30    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
43.31the meanings given.
44.1(b) "Adjusted gross income" means federal adjusted gross income as defined in section
44.262 of the Internal Revenue Code. In the case of a married couple filing jointly, adjusted
44.3gross income means the adjusted gross income of the taxpayer and spouse.
44.4(c) "Earned income" has the meaning given in section 32(c) of the Internal Revenue
44.5Code, except that earned income includes combat pay excluded from federal taxable income
44.6under section 112 of the Internal Revenue Code.
44.7(d) "Education profession" means:
44.8(1) a full-time job in public education; early childhood education, including licensed or
44.9regulated child care, Head Start, and state-funded prekindergarten; school-based library
44.10sciences; and other school-based services; or
44.11(2) a full-time job as a faculty member at a tribal college or university as defined in
44.12section 1059c(b) of the Internal Revenue Code, and other faculty teaching in high-needs
44.13subject areas or areas of shortage, including nursing faculty, foreign language faculty, and
44.14part-time faculty at community colleges, as determined by the United States Secretary of
44.15Education.
44.16(e) "Eligible individual" means an individual who has one or more qualified education
44.17loans related to an undergraduate or graduate degree program at a postsecondary educational
44.18institution.
44.19(f) "Eligible loan payments" means the amount the eligible individual paid in principal
44.20and interest on qualified education loans during the taxable year.
44.21(g) "Postsecondary educational institution" means a postsecondary institution eligible
44.22for state student aid under Minnesota Statutes, section 136A.103 or, if the institution is not
44.23located in this state, a postsecondary institution participating in the federal Pell Grant program
44.24under title IV of the Higher Education Act of 1965, Public Law 89-329, as amended.
44.25(h) "Public service job" means a full-time job in emergency management; government,
44.26excluding time served as a member of Congress; military service; public safety; law
44.27enforcement; public health, including nurses, nurse practitioners, nurses in a clinical setting,
44.28and full-time professionals engaged in health care practitioner occupations and health care
44.29support occupations, as such terms are defined by the Bureau of Labor Statistics; social
44.30work in a public child or family services agency; public interest law services including
44.31prosecution or public defense or legal advocacy on behalf of low-income communities at
44.32a nonprofit organization; public service for individuals with disabilities or public service
44.33for the elderly; public library sciences; or at an organization that is described in section
45.1501(c)(3) of the Internal Revenue Code and exempt from taxation under section 501(a) of
45.2the Internal Revenue Code.
45.3(i) "Qualified education loan" has the meaning given in section 221 of the Internal
45.4Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual.
45.5    Subd. 2. Credit allowed. (a) An eligible individual is allowed a credit against the tax
45.6due under Minnesota Statutes, chapter 290. The credit equals a percentage of eligible loan
45.7payments in excess of ten percent of adjusted gross income, up to $700, as follows:
45.8(1) for eligible individuals, 50 percent;
45.9(2) for eligible individuals in a public service job, 65 percent; and
45.10(3) for eligible individuals in an education profession, 75 percent.
45.11(b) The credit must not exceed the eligible individual's earned income for the taxable
45.12year.
45.13(c) In the case of a married couple filing a joint return, each spouse is eligible for the
45.14credit in this section.
45.15(d) For a nonresident or part-year resident, the credit must be allocated based on the
45.16percentage calculated under Minnesota Statutes, section 290.06, subdivision 2c, paragraph
45.17(e).
45.18(e) An eligible individual may receive the credit under this section without regard to the
45.19individual's eligibility for the public service loan forgiveness program under United States
45.20Code, title 20, section 1087e(m).
45.21EFFECTIVE DATE.This section is effective for taxable years beginning after December
45.2231, 2016, and before January 1, 2019.

45.23    Sec. 39. TAXPAYER ASSISTANCE GRANTS APPROPRIATION.
45.24(a) $200,000 in fiscal year 2018 only and $200,000 in fiscal year 2019 only are
45.25appropriated from the general fund to the commissioner of revenue for the provision of
45.26taxpayer assistance grants under Minnesota Statutes, section 270C.21. Of the amounts
45.27appropriated under this paragraph, up to five percent may be used for the administration of
45.28the taxpayer assistance grants program. The unencumbered balance in the first year does
45.29not cancel but is available for the second year.
45.30(b) For purposes of this section, "taxpayer assistance services" means accounting and
45.31tax preparation services provided by volunteers to low-income, elderly, and disadvantaged
46.1Minnesota residents to help them file federal and state income tax returns and Minnesota
46.2property tax refund claims and to provide personal representation before the Department
46.3of Revenue and the Internal Revenue Service.

46.4    Sec. 40. REPEALER.
46.5Minnesota Statutes 2016, sections 289A.10, subdivision 1a; 289A.12, subdivision 18;
46.6289A.18, subdivision 3a; 289A.20, subdivision 3a; and 291.03, subdivisions 8, 9, 10, and
46.711, are repealed.
46.8EFFECTIVE DATE.This section is effective for estates of decedents dying after
46.9December 31, 2021.

46.10ARTICLE 2

46.11PROPERTY TAX

46.12    Section 1. Minnesota Statutes 2016, section 40A.18, subdivision 2, is amended to read:
46.13    Subd. 2. Allowed commercial and industrial operations. (a) Commercial and industrial
46.14operations are not allowed on land within an agricultural preserve except:
46.15(1) small on-farm commercial or industrial operations normally associated with and
46.16important to farming in the agricultural preserve area;
46.17(2) storage use of existing farm buildings that does not disrupt the integrity of the
46.18agricultural preserve; and
46.19(3) small commercial use of existing farm buildings for trades not disruptive to the
46.20integrity of the agricultural preserve such as a carpentry shop, small scale mechanics shop,
46.21and similar activities that a farm operator might conduct; and
46.22(4) wireless communication installments and related equipment and structure capable
46.23of providing technology potentially beneficial to farming activities.
46.24    (b) For purposes of paragraph (a), clauses (2) and (3), "existing" in clauses (2) and (3)
46.25means existing on August 1, 1989.
46.26EFFECTIVE DATE.This section is effective the day following enactment.

46.27    Sec. 2. Minnesota Statutes 2016, section 138.053, is amended to read:
46.28138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR TOWNS.
47.1    The governing body of any home rule charter or statutory city or town may annually
47.2appropriate from its general fund an amount not to exceed 0.02418 percent of estimated
47.3market value, derived from ad valorem taxes on property or other revenues, to be paid to
47.4the historical society of its respective city, town, or county to be used for the promotion of
47.5historical work and to aid in defraying the expenses of carrying on the historical work in
47.6the county. No city or town may appropriate any funds for the benefit of any historical
47.7society unless the society is affiliated with and approved by the Minnesota Historical Society.
47.8EFFECTIVE DATE.This section is effective the day following final enactment.

47.9    Sec. 3. Minnesota Statutes 2016, section 270C.9901, is amended to read:
47.10270C.9901 ASSESSOR ACCREDITATION; WAIVER.
47.11    Subdivision 1. Accreditation. Every individual who appraises or physically inspects
47.12real property for the purpose of determining its valuation or classification for property tax
47.13purposes must obtain licensure as an accredited Minnesota assessor from the State Board
47.14of Assessors by July 1, 2019 2022, or within four five years of that person having become
47.15licensed as a certified Minnesota assessor, whichever is later.
47.16    Subd. 2. Waiver. (a) An individual may apply to the State Board of Assessors for a
47.17waiver from licensure as an accredited Minnesota assessor as required by subdivision 1 if
47.18the individual:
47.19(1) was first licensed as a certified Minnesota assessor before July 1, 2004;
47.20(2) has maintained an assessor license in good standing since July 1, 2004;
47.21(3) has successfully passed a comprehensive examination substantially equivalent to the
47.22requirements by the State Board of Assessors for the accredited Minnesota assessor license
47.23designation before May 1, 2020; and
47.24    (4) submits an application to the State Board of Assessors no later than July 1, 2022.
47.25The examination can only be taken once to fulfill the requirements of the waiver.
47.26(b) The commissioner of revenue, in consultation with the State Board of Assessors and
47.27the Minnesota Association of Assessing Officers, must determine the contents of the waiver
47.28application and the comprehensive examination.
47.29(c) A county assessor in any jurisdiction assessed by an applicant may submit additional
47.30information to the State Board of Assessors to be considered as part of the waiver review
47.31proceedings.
48.1(d) The State Board of Assessors must not grant a waiver unless the applicant has met
48.2the requirements in paragraph (a) and has the ability to perform the duties of assessment
48.3required in each jurisdiction in which the applicant appraises or physically inspects real
48.4property for the purposes of determining its valuation or classification for property tax
48.5purposes.
48.6(e) An individual granted a waiver under this subdivision is allowed to continue
48.7assessment duties at the individual's licensure level, provided the individual maintains
48.8licensure in good standing and complies with the continuing education requirements for the
48.9accredited Minnesota assessor designation as prescribed by the State Board of Assessors.
48.10(f) An individual granted a waiver under this section:
48.11(1) is not considered to have achieved the designation as an accredited Minnesota assessor
48.12and may not represent himself or herself as an accredited Minnesota assessor; and
48.13(2) is not authorized to value income-producing property as defined in section 273.11,
48.14subdivision 13, unless the individual meets the requirements of that section.
48.15(g) A waiver granted by the State Board of Assessors under this section remains in effect
48.16unless the individual's licensure lapses or is revoked. If the individual's licensure lapses or
48.17is revoked, the waiver is void and the individual is subject to the requirements of subdivision
48.181.
48.19(h) A decision of the State Board of Assessors to grant or deny a waiver under this
48.20subdivision is final and is not subject to appeal.
48.21(i) Waivers granted under this subdivision expire on June 30, 2032.
48.22(j) This subdivision expires July 1, 2032.
48.23EFFECTIVE DATE.This section is effective the day following final enactment.

48.24    Sec. 4. Minnesota Statutes 2016, section 272.02, subdivision 86, is amended to read:
48.25    Subd. 86. Apprenticeship training facilities. All or a portion of a building used
48.26exclusively for a state-approved apprenticeship program through the Department of Labor
48.27and Industry is exempt if:
48.28(1) it is owned by a nonprofit organization or a nonprofit trust, and operated by a nonprofit
48.29organization or a nonprofit trust;
48.30(2) the program participants receive no compensation; and
48.31(3) it is located:
49.1(i) in the Minneapolis and St. Paul standard metropolitan statistical area as determined
49.2by the 2000 federal census;
49.3(ii) in a city outside the Minneapolis and St. Paul standard metropolitan statistical area
49.4that has a population of 7,400 or greater according to the most recent federal census; or
49.5(iii) in a township that has a population greater than 2,000 1,400 but less than 3,000
49.6determined by the 2000 federal census and the building was previously used by a school
49.7and was exempt for taxes payable in 2010.
49.8Use of the property for advanced skills training of incumbent workers does not disqualify
49.9the property for the exemption under this subdivision. This exemption includes up to five
49.10acres of the land on which the building is located and associated parking areas on that land,
49.11except that if the building meets the requirements of clause (3), item (iii), then the exemption
49.12includes up to ten acres of land on which the building is located and associated parking
49.13areas on that land. If a parking area associated with the facility is used for the purposes of
49.14the facility and for other purposes, a portion of the parking area shall be exempt in proportion
49.15to the square footage of the facility used for purposes of apprenticeship training.

49.16    Sec. 5. Minnesota Statutes 2016, section 272.02, is amended by adding a subdivision to
49.17read:
49.18    Subd. 100. Certain property owned by an Indian tribe. (a) Property is exempt that:
49.19(1) is located in a city of the first class with a population less than 100,000 as of the
49.202010 federal census;
49.21(2) was on January 1, 2016, and is for the current assessment, owned by a federally
49.22recognized Indian tribe, or its instrumentality, that is located within the state of Minnesota;
49.23and
49.24(3) is used exclusively as a medical clinic.
49.25(b) Property that qualifies for the exemption under this subdivision is limited to no more
49.26than two contiguous parcels and structures that do not exceed, in the aggregate, 30,000
49.27square feet. Property acquired for single-family housing, market-rate apartments, agriculture,
49.28or forestry does not qualify for this exemption. The exemption created by this subdivision
49.29expires with taxes payable in 2028.
49.30EFFECTIVE DATE.This section is effective beginning with taxes payable in 2017.

50.1    Sec. 6. Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read:
50.2    Subd. 2. Definitions. (a) For the purposes of this section, the term:
50.3(1) "wind energy conversion system" has the meaning given in section 216C.06,
50.4subdivision 19 , and also includes a substation that is used and owned by one or more wind
50.5energy conversion facilities;
50.6(2) "large scale wind energy conversion system" means a wind energy conversion system
50.7of more than 12 megawatts, as measured by the nameplate capacity of the system or as
50.8combined with other systems as provided in paragraph (b);
50.9(3) "medium scale wind energy conversion system" means a wind energy conversion
50.10system of over two and not more than 12 megawatts, as measured by the nameplate capacity
50.11of the system or as combined with other systems as provided in paragraph (b); and
50.12(4) "small scale wind energy conversion system" means a wind energy conversion system
50.13of two megawatts and under, as measured by the nameplate capacity of the system or as
50.14combined with other systems as provided in paragraph (b).
50.15(b) For systems installed and contracted for after January 1, 2002, the total size of a
50.16wind energy conversion system under this subdivision shall be determined according to this
50.17paragraph. Unless the systems are interconnected with different distribution systems, the
50.18nameplate capacity of one wind energy conversion system shall be combined with the
50.19nameplate capacity of any other wind energy conversion system that is:
50.20(1) located within five miles of the wind energy conversion system;
50.21(2) constructed within the same calendar year as the wind energy conversion system;
50.22and
50.23(3) under common ownership.
50.24In the case of a dispute, the commissioner of commerce shall determine the total size of
50.25the system, and shall draw all reasonable inferences in favor of combining the systems.
50.26(c) In making a determination under paragraph (b), the commissioner of commerce may
50.27determine that two wind energy conversion systems are under common ownership when
50.28the underlying ownership structure contains similar the same persons or entities, even if the
50.29ownership shares differ between the two systems. Wind energy conversion systems are not
50.30under common ownership solely because the same person or entity provided equity financing
50.31for the systems. Wind energy conversion systems that were determined by the commissioner
50.32of commerce to be eligible for a renewable energy production incentive under section
51.1216C.41 are not under common ownership unless a change in the qualifying owner was
51.2made to an owner of another wind energy conversion system subsequent to the determination
51.3by the commissioner of commerce.
51.4EFFECTIVE DATE.This section is effective the day following final enactment.

51.5    Sec. 7. Minnesota Statutes 2016, section 273.125, subdivision 8, is amended to read:
51.6    Subd. 8. Manufactured homes; sectional structures. (a) In this section, "manufactured
51.7home" means a structure transportable in one or more sections, which is built on a permanent
51.8chassis, and designed to be used as a dwelling with or without a permanent foundation when
51.9connected to the required utilities, and contains the plumbing, heating, air conditioning, and
51.10electrical systems in it. Manufactured home includes any accessory structure that is an
51.11addition or supplement to the manufactured home and, when installed, becomes a part of
51.12the manufactured home.
51.13    (b) Except as provided in paragraph (c), a manufactured home that meets each of the
51.14following criteria must be valued and assessed as an improvement to real property, the
51.15appropriate real property classification applies, and the valuation is subject to review and
51.16the taxes payable in the manner provided for real property:
51.17    (1) the owner of the unit holds title to the land on which it is situated;
51.18    (2) the unit is affixed to the land by a permanent foundation or is installed at its location
51.19in accordance with the Manufactured Home Building Code in sections 327.31 to 327.34,
51.20and rules adopted under those sections, or is affixed to the land like other real property in
51.21the taxing district; and
51.22    (3) the unit is connected to public utilities, has a well and septic tank system, or is serviced
51.23by water and sewer facilities comparable to other real property in the taxing district.
51.24    (c) A manufactured home that meets each of the following criteria must be assessed at
51.25the rate provided by the appropriate real property classification but must be treated as
51.26personal property, and the valuation is subject to review and the taxes payable in the manner
51.27provided in this section:
51.28    (1) the owner of the unit is a lessee of the land under the terms of a lease, or the unit is
51.29located in a manufactured home park but is not the homestead of the park owner;
51.30    (2) the unit is affixed to the land by a permanent foundation or is installed at its location
51.31in accordance with the Manufactured Home Building Code contained in sections 327.31 to
52.1327.34 , and the rules adopted under those sections, or is affixed to the land like other real
52.2property in the taxing district; and
52.3    (3) the unit is connected to public utilities, has a well and septic tank system, or is serviced
52.4by water and sewer facilities comparable to other real property in the taxing district.
52.5    (d) Sectional structures must be valued and assessed as an improvement to real property
52.6if the owner of the structure holds title to the land on which it is located or is a qualifying
52.7lessee of the land under section 273.19. In this paragraph "sectional structure" means a
52.8building or structural unit that has been in whole or substantial part manufactured or
52.9constructed at an off-site location to be wholly or partially assembled on site alone or with
52.10other units and attached to a permanent foundation.
52.11    (e) The commissioner of revenue may adopt rules under the Administrative Procedure
52.12Act to establish additional criteria for the classification of manufactured homes and sectional
52.13structures under this subdivision.
52.14    (f) A storage shed, deck, or similar improvement constructed on property that is leased
52.15or rented as a site for a manufactured home, sectional structure, park trailer, or travel trailer
52.16is taxable as provided in this section. In the case of property that is leased or rented as a site
52.17for a travel trailer, a storage shed, deck, or similar improvement on the site that is considered
52.18personal property under this paragraph is taxable only if its total estimated market value is
52.19over $1,000 $10,000. The property is taxable as personal property to the lessee of the site
52.20if it is not owned by the owner of the site. The property is taxable as real estate if it is owned
52.21by the owner of the site. As a condition of permitting the owner of the manufactured home,
52.22sectional structure, park trailer, or travel trailer to construct improvements on the leased or
52.23rented site, the owner of the site must obtain the permanent home address of the lessee or
52.24user of the site. The site owner must provide the name and address to the assessor upon
52.25request.

52.26    Sec. 8. Minnesota Statutes 2016, section 273.13, subdivision 23, is amended to read:
52.27    Subd. 23. Class 2. (a) An agricultural homestead consists of class 2a agricultural land
52.28that is homesteaded, along with any class 2b rural vacant land that is contiguous to the class
52.292a land under the same ownership. The market value of the house and garage and immediately
52.30surrounding one acre of land has the same classification rates as class 1a or 1b property
52.31under subdivision 22. The value of the remaining land including improvements up to the
52.32first tier valuation limit of agricultural homestead property has a classification rate of 0.5
52.33percent of market value. The remaining property over the first tier has a classification rate
52.34of one percent of market value. For purposes of this subdivision, the "first tier valuation
53.1limit of agricultural homestead property" and "first tier" means the limit certified under
53.2section 273.11, subdivision 23.
53.3    (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that
53.4are agricultural land and buildings. Class 2a property has a classification rate of one percent
53.5of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a
53.6property must also include any property that would otherwise be classified as 2b, but is
53.7interspersed with class 2a property, including but not limited to sloughs, wooded wind
53.8shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement,
53.9and other similar land that is impractical for the assessor to value separately from the rest
53.10of the property or that is unlikely to be able to be sold separately from the rest of the property.
53.11    An assessor may classify the part of a parcel described in this subdivision that is used
53.12for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
53.13    (c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that
53.14are unplatted real estate, rural in character and not used for agricultural purposes, including
53.15land used for growing trees for timber, lumber, and wood and wood products, that is not
53.16improved with a structure. The presence of a minor, ancillary nonresidential structure as
53.17defined by the commissioner of revenue does not disqualify the property from classification
53.18under this paragraph. Any parcel of 20 acres or more improved with a structure that is not
53.19a minor, ancillary nonresidential structure must be split-classified, and ten acres must be
53.20assigned to the split parcel containing the structure. Class 2b property has a classification
53.21rate of one percent of market value unless it is part of an agricultural homestead under
53.22paragraph (a), or qualifies as class 2c under paragraph (d).
53.23    (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920
53.24acres statewide per taxpayer that is being managed under a forest management plan that
53.25meets the requirements of chapter 290C, but is not enrolled in the sustainable forest resource
53.26management incentive program. It has a classification rate of .65 percent, provided that the
53.27owner of the property must apply to the assessor in order for the property to initially qualify
53.28for the reduced rate and provide the information required by the assessor to verify that the
53.29property qualifies for the reduced rate. If the assessor receives the application and information
53.30before May 1 in an assessment year, the property qualifies beginning with that assessment
53.31year. If the assessor receives the application and information after April 30 in an assessment
53.32year, the property may not qualify until the next assessment year. The commissioner of
53.33natural resources must concur that the land is qualified. The commissioner of natural
53.34resources shall annually provide county assessors verification information on a timely basis.
54.1The presence of a minor, ancillary nonresidential structure as defined by the commissioner
54.2of revenue does not disqualify the property from classification under this paragraph.
54.3    (e) Agricultural land as used in this section means:
54.4    (1) contiguous acreage of ten acres or more, used during the preceding year for
54.5agricultural purposes; or
54.6    (2) contiguous acreage used during the preceding year for an intensive livestock or
54.7poultry confinement operation, provided that land used only for pasturing or grazing does
54.8not qualify under this clause.
54.9    "Agricultural purposes" as used in this section means the raising, cultivation, drying, or
54.10storage of agricultural products for sale, or the storage of machinery or equipment used in
54.11support of agricultural production by the same farm entity. For a property to be classified
54.12as agricultural based only on the drying or storage of agricultural products, the products
54.13being dried or stored must have been produced by the same farm entity as the entity operating
54.14the drying or storage facility. "Agricultural purposes" also includes enrollment in the Reinvest
54.15in Minnesota program under sections 103F.501 to 103F.535 or the federal Conservation
54.16Reserve Program as contained in Public Law 99-198 or a similar local, state, or federal
54.17conservation program if the property was classified as agricultural (i) under this subdivision
54.18for taxes payable in 2003 because of its enrollment in a qualifying program and the land
54.19remains enrolled or (ii) in the year prior to its enrollment. For purposes of this section, a
54.20local conservation program means a program administered by a town, statutory or home
54.21rule charter city, or county, including a watershed district, water management organization,
54.22or soil and water conservation district, in which landowners voluntarily enroll land and
54.23receive incentive payments in exchange for use or other restrictions placed on the land.
54.24Agricultural classification shall not be based upon the market value of any residential
54.25structures on the parcel or contiguous parcels under the same ownership.
54.26    "Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous
54.27portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion
54.28of, a set of contiguous tax parcels under that section that are owned by the same person.
54.29    (f) Agricultural land under this section also includes:
54.30    (1) contiguous acreage that is less than ten acres in size and exclusively used in the
54.31preceding year for raising or cultivating agricultural products; or
55.1    (2) contiguous acreage that contains a residence and is less than 11 acres in size, if the
55.2contiguous acreage exclusive of the house, garage, and surrounding one acre of land was
55.3used in the preceding year for one or more of the following three uses:
55.4    (i) for an intensive grain drying or storage operation, or for intensive machinery or
55.5equipment storage activities used to support agricultural activities on other parcels of property
55.6operated by the same farming entity;
55.7    (ii) as a nursery, provided that only those acres used intensively to produce nursery stock
55.8are considered agricultural land; or
55.9    (iii) for intensive market farming; for purposes of this paragraph, "market farming"
55.10means the cultivation of one or more fruits or vegetables or production of animal or other
55.11agricultural products for sale to local markets by the farmer or an organization with which
55.12the farmer is affiliated.
55.13    "Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as
55.14described in section 272.193, or all of a set of contiguous tax parcels under that section that
55.15are owned by the same person.
55.16    (g) Land shall be classified as agricultural even if all or a portion of the agricultural use
55.17of that property is the leasing to, or use by another person for agricultural purposes.
55.18    Classification under this subdivision is not determinative for qualifying under section
55.19273.111 .
55.20    (h) The property classification under this section supersedes, for property tax purposes
55.21only, any locally administered agricultural policies or land use restrictions that define
55.22minimum or maximum farm acreage.
55.23    (i) The term "agricultural products" as used in this subdivision includes production for
55.24sale of:
55.25    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
55.26animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, bees,
55.27and apiary products by the owner;
55.28    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned for
55.29agricultural use;
55.30    (3) the commercial boarding of horses, which may include related horse training and
55.31riding instruction, if the boarding is done on property that is also used for raising pasture
55.32to graze horses or raising or cultivating other agricultural products as defined in clause (1);
56.1    (4) property which is owned and operated by nonprofit organizations used for equestrian
56.2activities, excluding racing;
56.3    (5) game birds and waterfowl bred and raised (i) on a game farm licensed under section
56.497A.105 , provided that the annual licensing report to the Department of Natural Resources,
56.5which must be submitted annually by March 30 to the assessor, indicates that at least 500
56.6birds were raised or used for breeding stock on the property during the preceding year and
56.7that the owner provides a copy of the owner's most recent schedule F; or (ii) for use on a
56.8shooting preserve licensed under section 97A.115;
56.9    (6) insects primarily bred to be used as food for animals;
56.10    (7) trees, grown for sale as a crop, including short rotation woody crops, and not sold
56.11for timber, lumber, wood, or wood products; and
56.12    (8) maple syrup taken from trees grown by a person licensed by the Minnesota
56.13Department of Agriculture under chapter 28A as a food processor.
56.14    (j) If a parcel used for agricultural purposes is also used for commercial or industrial
56.15purposes, including but not limited to:
56.16    (1) wholesale and retail sales;
56.17    (2) processing of raw agricultural products or other goods;
56.18    (3) warehousing or storage of processed goods; and
56.19    (4) office facilities for the support of the activities enumerated in clauses (1), (2), and
56.20(3),
56.21the assessor shall classify the part of the parcel used for agricultural purposes as class 1b,
56.222a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use.
56.23The grading, sorting, and packaging of raw agricultural products for first sale is considered
56.24an agricultural purpose. A greenhouse or other building where horticultural or nursery
56.25products are grown that is also used for the conduct of retail sales must be classified as
56.26agricultural if it is primarily used for the growing of horticultural or nursery products from
56.27seed, cuttings, or roots and occasionally as a showroom for the retail sale of those products.
56.28Use of a greenhouse or building only for the display of already grown horticultural or nursery
56.29products does not qualify as an agricultural purpose.
56.30    (k) The assessor shall determine and list separately on the records the market value of
56.31the homestead dwelling and the one acre of land on which that dwelling is located. If any
57.1farm buildings or structures are located on this homesteaded acre of land, their market value
57.2shall not be included in this separate determination.
57.3    (l) Class 2d airport landing area consists of a landing area or public access area of a
57.4privately owned public use airport. It has a classification rate of one percent of market value.
57.5To qualify for classification under this paragraph, a privately owned public use airport must
57.6be licensed as a public airport under section 360.018. For purposes of this paragraph, "landing
57.7area" means that part of a privately owned public use airport properly cleared, regularly
57.8maintained, and made available to the public for use by aircraft and includes runways,
57.9taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing
57.10area also includes land underlying both the primary surface and the approach surfaces that
57.11comply with all of the following:
57.12    (i) the land is properly cleared and regularly maintained for the primary purposes of the
57.13landing, taking off, and taxiing of aircraft; but that portion of the land that contains facilities
57.14for servicing, repair, or maintenance of aircraft is not included as a landing area;
57.15    (ii) the land is part of the airport property; and
57.16    (iii) the land is not used for commercial or residential purposes.
57.17The land contained in a landing area under this paragraph must be described and certified
57.18by the commissioner of transportation. The certification is effective until it is modified, or
57.19until the airport or landing area no longer meets the requirements of this paragraph. For
57.20purposes of this paragraph, "public access area" means property used as an aircraft parking
57.21ramp, apron, or storage hangar, or an arrival and departure building in connection with the
57.22airport.
57.23    (m) Class 2e consists of land with a commercial aggregate deposit that is not actively
57.24being mined and is not otherwise classified as class 2a or 2b, provided that the land is not
57.25located in a county that has elected to opt-out of the aggregate preservation program as
57.26provided in section 273.1115, subdivision 6. It has a classification rate of one percent of
57.27market value. To qualify for classification under this paragraph, the property must be at
57.28least ten contiguous acres in size and the owner of the property must record with the county
57.29recorder of the county in which the property is located an affidavit containing:
57.30    (1) a legal description of the property;
57.31    (2) a disclosure that the property contains a commercial aggregate deposit that is not
57.32actively being mined but is present on the entire parcel enrolled;
58.1    (3) documentation that the conditional use under the county or local zoning ordinance
58.2of this property is for mining; and
58.3    (4) documentation that a permit has been issued by the local unit of government or the
58.4mining activity is allowed under local ordinance. The disclosure must include a statement
58.5from a registered professional geologist, engineer, or soil scientist delineating the deposit
58.6and certifying that it is a commercial aggregate deposit.
58.7    For purposes of this section and section 273.1115, "commercial aggregate deposit"
58.8means a deposit that will yield crushed stone or sand and gravel that is suitable for use as
58.9a construction aggregate; and "actively mined" means the removal of top soil and overburden
58.10in preparation for excavation or excavation of a commercial deposit.
58.11    (n) When any portion of the property under this subdivision or subdivision 22 begins to
58.12be actively mined, the owner must file a supplemental affidavit within 60 days from the
58.13day any aggregate is removed stating the number of acres of the property that is actively
58.14being mined. The acres actively being mined must be (1) valued and classified under
58.15subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate
58.16resource preservation property tax program under section 273.1115, if the land was enrolled
58.17in that program. Copies of the original affidavit and all supplemental affidavits must be
58.18filed with the county assessor, the local zoning administrator, and the Department of Natural
58.19Resources, Division of Land and Minerals. A supplemental affidavit must be filed each
58.20time a subsequent portion of the property is actively mined, provided that the minimum
58.21acreage change is five acres, even if the actual mining activity constitutes less than five
58.22acres.
58.23    (o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are not
58.24rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in
58.25section 14.386 concerning exempt rules do not apply.
58.26EFFECTIVE DATE.This section is effective beginning with assessment year 2017.

58.27    Sec. 9. Minnesota Statutes 2016, section 273.13, subdivision 25, is amended to read:
58.28    Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more units
58.29and used or held for use by the owner or by the tenants or lessees of the owner as a residence
58.30for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a
58.31also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt
58.32under section 272.02, and contiguous property used for hospital purposes, without regard
59.1to whether the property has been platted or subdivided. The market value of class 4a property
59.2has a classification rate of 1.25 percent.
59.3    (b) Class 4b includes:
59.4    (1) residential real estate containing less than four units that does not qualify as class
59.54bb, other than seasonal residential recreational property;
59.6    (2) manufactured homes not classified under any other provision;
59.7    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm
59.8classified under subdivision 23, paragraph (b) containing two or three units; and
59.9    (4) unimproved property that is classified residential as determined under subdivision
59.1033.
59.11    The market value of class 4b property has a classification rate of 1.25 percent.
59.12    (c) Class 4bb includes nonhomestead residential real estate containing one unit, other
59.13than seasonal residential recreational property, and a single family dwelling, garage, and
59.14surrounding one acre of property on a nonhomestead farm classified under subdivision 23,
59.15paragraph (b).
59.16    Class 4bb property has the same classification rates as class 1a property under subdivision
59.1722.
59.18    Property that has been classified as seasonal residential recreational property at any time
59.19during which it has been owned by the current owner or spouse of the current owner does
59.20not qualify for class 4bb.
59.21    (d) Class 4c property includes:
59.22    (1) except as provided in subdivision 22, paragraph (c), real and personal property
59.23devoted to commercial temporary and seasonal residential occupancy for recreation purposes,
59.24for not more than 250 days in the year preceding the year of assessment. For purposes of
59.25this clause, property is devoted to a commercial purpose on a specific day if any portion of
59.26the property is used for residential occupancy, and a fee is charged for residential occupancy.
59.27Class 4c property under this clause must contain three or more rental units. A "rental unit"
59.28is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site
59.29equipped with water and electrical hookups for recreational vehicles. A camping pad offered
59.30for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c
59.31under this clause regardless of the term of the rental agreement, as long as the use of the
59.32camping pad does not exceed 250 days. In order for a property to be classified under this
60.1clause, either (i) the business located on the property must provide recreational activities,
60.2at least 40 percent of the annual gross lodging receipts related to the property must be from
60.3business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid
60.4bookings by lodging guests during the year must be for periods of at least two consecutive
60.5nights; or (B) at least 20 percent of the annual gross receipts must be from charges for
60.6providing recreational activities, or (ii) the business must contain 20 or fewer rental units,
60.7and must be located in a township or a city with a population of 2,500 or less located outside
60.8the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion
60.9of a state trail administered by the Department of Natural Resources. For purposes of item
60.10(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c
60.11property also includes commercial use real property used exclusively for recreational
60.12purposes in conjunction with other class 4c property classified under this clause and devoted
60.13to temporary and seasonal residential occupancy for recreational purposes, up to a total of
60.14two acres, provided the property is not devoted to commercial recreational use for more
60.15than 250 days in the year preceding the year of assessment and is located within two miles
60.16of the class 4c property with which it is used. In order for a property to qualify for
60.17classification under this clause, the owner must submit a declaration to the assessor
60.18designating the cabins or units occupied for 250 days or less in the year preceding the year
60.19of assessment by January 15 of the assessment year. Those cabins or units and a proportionate
60.20share of the land on which they are located must be designated class 4c under this clause
60.21as otherwise provided. The remainder of the cabins or units and a proportionate share of
60.22the land on which they are located will be designated as class 3a. The owner of property
60.23desiring designation as class 4c property under this clause must provide guest registers or
60.24other records demonstrating that the units for which class 4c designation is sought were not
60.25occupied for more than 250 days in the year preceding the assessment if so requested. The
60.26portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center
60.27or meeting room, and (5) other nonresidential facility operated on a commercial basis not
60.28directly related to temporary and seasonal residential occupancy for recreation purposes
60.29does not qualify for class 4c. For the purposes of this paragraph, "recreational activities"
60.30means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country
60.31ski equipment; providing marina services, launch services, or guide services; or selling bait
60.32and fishing tackle;
60.33    (2) qualified property used as a golf course if:
60.34    (i) it is open to the public on a daily fee basis. It may charge membership fees or dues,
60.35but a membership fee may not be required in order to use the property for golfing, and its
61.1green fees for golfing must be comparable to green fees typically charged by municipal
61.2courses; and
61.3    (ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
61.4    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with
61.5the golf course is classified as class 3a property;
61.6    (3) real property up to a maximum of three acres of land owned and used by a nonprofit
61.7community service oriented organization and not used for residential purposes on either a
61.8temporary or permanent basis, provided that:
61.9    (i) the property is not used for a revenue-producing activity for more than six days in
61.10the calendar year preceding the year of assessment; or
61.11    (ii) the organization makes annual charitable contributions and donations at least equal
61.12to the property's previous year's property taxes and the property is allowed to be used for
61.13public and community meetings or events for no charge, as appropriate to the size of the
61.14facility.
61.15    For purposes of this clause:
61.16    (A) "charitable contributions and donations" has the same meaning as lawful gambling
61.17purposes under section 349.12, subdivision 25, excluding those purposes relating to the
61.18payment of taxes, assessments, fees, auditing costs, and utility payments;
61.19    (B) "property taxes" excludes the state general tax;
61.20    (C) a "nonprofit community service oriented organization" means any corporation,
61.21society, association, foundation, or institution organized and operated exclusively for
61.22charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
61.23federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
61.24Revenue Code; and
61.25    (D) "revenue-producing activities" shall include but not be limited to property or that
61.26portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
61.27liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
61.28alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
61.29insurance business, or office or other space leased or rented to a lessee who conducts a
61.30for-profit enterprise on the premises.
61.31    Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The
61.32use of the property for social events open exclusively to members and their guests for periods
62.1of less than 24 hours, when an admission is not charged nor any revenues are received by
62.2the organization shall not be considered a revenue-producing activity.
62.3    The organization shall maintain records of its charitable contributions and donations
62.4and of public meetings and events held on the property and make them available upon
62.5request any time to the assessor to ensure eligibility. An organization meeting the requirement
62.6under item (ii) must file an application by May 1 with the assessor for eligibility for the
62.7current year's assessment. The commissioner shall prescribe a uniform application form
62.8and instructions;
62.9    (4) postsecondary student housing of not more than one acre of land that is owned by a
62.10nonprofit corporation organized under chapter 317A and is used exclusively by a student
62.11cooperative, sorority, or fraternity for on-campus housing or housing located within two
62.12miles of the border of a college campus;
62.13    (5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding
62.14manufactured home parks described in section 273.124, subdivision 3a items (ii) and (iii),
62.15and (ii) manufactured home parks as defined in section 327.14, subdivision 3, that are
62.16described in section 273.124, subdivision 3a, and (iii) class I manufactured home parks as
62.17defined in section 327C.01, subdivision 13;
62.18    (6) real property that is actively and exclusively devoted to indoor fitness, health, social,
62.19recreational, and related uses, is owned and operated by a not-for-profit corporation, and is
62.20located within the metropolitan area as defined in section 473.121, subdivision 2;
62.21    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt under
62.22section 272.01, subdivision 2, and the land on which it is located, provided that:
62.23    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan
62.24Airports Commission, or group thereof; and
62.25    (ii) the land lease, or any ordinance or signed agreement restricting the use of the leased
62.26premise, prohibits commercial activity performed at the hangar.
62.27    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be
62.28filed by the new owner with the assessor of the county where the property is located within
62.2960 days of the sale;
62.30    (8) a privately owned noncommercial aircraft storage hangar not exempt under section
62.31272.01, subdivision 2 , and the land on which it is located, provided that:
62.32    (i) the land abuts a public airport; and
63.1    (ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement
63.2restricting the use of the premises, prohibiting commercial use or activity performed at the
63.3hangar; and
63.4    (9) residential real estate, a portion of which is used by the owner for homestead purposes,
63.5and that is also a place of lodging, if all of the following criteria are met:
63.6    (i) rooms are provided for rent to transient guests that generally stay for periods of 14
63.7or fewer days;
63.8    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated in
63.9the basic room rate;
63.10    (iii) meals are not provided to the general public except for special events on fewer than
63.11seven days in the calendar year preceding the year of the assessment; and
63.12    (iv) the owner is the operator of the property.
63.13    The market value subject to the 4c classification under this clause is limited to five rental
63.14units. Any rental units on the property in excess of five, must be valued and assessed as
63.15class 3a. The portion of the property used for purposes of a homestead by the owner must
63.16be classified as class 1a property under subdivision 22;
63.17    (10) real property up to a maximum of three acres and operated as a restaurant as defined
63.18under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under
63.19section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to
63.20commercial purposes for not more than 250 consecutive days, or receives at least 60 percent
63.21of its annual gross receipts from business conducted during four consecutive months. Gross
63.22receipts from the sale of alcoholic beverages must be included in determining the property's
63.23qualification under item (ii). The property's primary business must be as a restaurant and
63.24not as a bar. Gross receipts from gift shop sales located on the premises must be excluded.
63.25Owners of real property desiring 4c classification under this clause must submit an annual
63.26declaration to the assessor by February 1 of the current assessment year, based on the
63.27property's relevant information for the preceding assessment year;
63.28(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as
63.29a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public
63.30and devoted to recreational use for marina services. The marina owner must annually provide
63.31evidence to the assessor that it provides services, including lake or river access to the public
63.32by means of an access ramp or other facility that is either located on the property of the
63.33marina or at a publicly owned site that abuts the property of the marina. No more than 800
64.1feet of lakeshore may be included in this classification. Buildings used in conjunction with
64.2a marina for marina services, including but not limited to buildings used to provide food
64.3and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified
64.4as class 3a property; and
64.5(12) real and personal property devoted to noncommercial temporary and seasonal
64.6residential occupancy for recreation purposes.
64.7    Class 4c property has a classification rate of 1.5 percent of market value, except that (i)
64.8each parcel of noncommercial seasonal residential recreational property under clause (12)
64.9has the same classification rates as class 4bb property, (ii) manufactured home parks assessed
64.10under clause (5), item (i), have the same classification rate as class 4b property, and the
64.11market value of manufactured home parks assessed under clause (5), item (ii), has have a
64.12classification rate of 0.75 percent if more than 50 percent of the lots in the park are occupied
64.13by shareholders in the cooperative corporation or association and a classification rate of
64.14one percent if 50 percent or less of the lots are so occupied, and class I manufactured home
64.15parks as defined in section 327C.01, subdivision 13, have a classification rate of 1.0 percent,
64.16(iii) commercial-use seasonal residential recreational property and marina recreational land
64.17as described in clause (11), has a classification rate of one percent for the first $500,000 of
64.18market value, and 1.25 percent for the remaining market value, (iv) the market value of
64.19property described in clause (4) has a classification rate of one percent, (v) the market value
64.20of property described in clauses (2), (6), and (10) has a classification rate of 1.25 percent,
64.21and (vi) that portion of the market value of property in clause (9) qualifying for class 4c
64.22property has a classification rate of 1.25 percent.
64.23    (e) Class 4d property is qualifying low-income rental housing certified to the assessor
64.24by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion of
64.25the units in the building qualify as low-income rental housing units as certified under section
64.26273.128, subdivision 3 , only the proportion of qualifying units to the total number of units
64.27in the building qualify for class 4d. The remaining portion of the building shall be classified
64.28by the assessor based upon its use. Class 4d also includes the same proportion of land as
64.29the qualifying low-income rental housing units are to the total units in the building. For all
64.30properties qualifying as class 4d, the market value determined by the assessor must be based
64.31on the normal approach to value using normal unrestricted rents.
64.32    (f) The first tier of market value of class 4d property has a classification rate of 0.75
64.33percent. The remaining value of class 4d property has a classification rate of 0.25 percent.
64.34For the purposes of this paragraph, the "first tier of market value of class 4d property" means
64.35the market value of each housing unit up to the first tier limit. For the purposes of this
65.1paragraph, all class 4d property value must be assigned to individual housing units. The
65.2first tier limit is $100,000 for assessment year 2014. For subsequent years, the limit is
65.3adjusted each year by the average statewide change in estimated market value of property
65.4classified as class 4a and 4d under this section for the previous assessment year, excluding
65.5valuation change due to new construction, rounded to the nearest $1,000, provided, however,
65.6that the limit may never be less than $100,000. Beginning with assessment year 2015, the
65.7commissioner of revenue must certify the limit for each assessment year by November 1
65.8of the previous year.
65.9EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.

65.10    Sec. 10. Minnesota Statutes 2016, section 273.13, subdivision 34, is amended to read:
65.11    Subd. 34. Homestead of disabled veteran or family caregiver. (a) All or a portion of
65.12the market value of property owned by a veteran and serving as the veteran's homestead
65.13under this section is excluded in determining the property's taxable market value if the
65.14veteran has a service-connected disability of 70 percent or more as certified by the United
65.15States Department of Veterans Affairs. To qualify for exclusion under this subdivision, the
65.16veteran must have been honorably discharged from the United States armed forces, as
65.17indicated by United States Government Form DD214 or other official military discharge
65.18papers.
65.19    (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded,
65.20except as provided in clause (2); and
65.21    (2) for a total (100 percent) and permanent 100 percent disability rating, $300,000 of
65.22market value is excluded.
65.23    (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), clause
65.24(2), predeceases the veteran's spouse, and if upon the death of the veteran the spouse holds
65.25the legal or beneficial title to the homestead and permanently resides there, the exclusion
65.26shall carry over to the benefit of the veteran's spouse for the current taxes payable year and
65.27for eight additional taxes payable years or until such time as the spouse remarries, or sells,
65.28transfers, or otherwise disposes of the property, whichever comes first. Qualification under
65.29this paragraph requires an annual application under paragraph (h).
65.30(d) If the spouse of a member of any branch or unit of the United States armed forces
65.31who dies due to a service-connected cause while serving honorably in active service, as
65.32indicated on United States Government Form DD1300 or DD2064, holds the legal or
65.33beneficial title to a homestead and permanently resides there, the spouse is entitled to the
66.1benefit described in paragraph (b), clause (2), for eight taxes payable years, or until such
66.2time as the spouse remarries or sells, transfers, or otherwise disposes of the property,
66.3whichever comes first.
66.4(e) If a veteran meets the disability criteria of paragraph (a) but does not own property
66.5classified as homestead in the state of Minnesota, then the homestead of the veteran's primary
66.6family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify
66.7for under paragraph (b).
66.8    (f) In the case of an agricultural homestead, only the portion of the property consisting
66.9of the house and garage and immediately surrounding one acre of land qualifies for the
66.10valuation exclusion under this subdivision.
66.11    (g) A property qualifying for a valuation exclusion under this subdivision is not eligible
66.12for the market value exclusion under subdivision 35, or classification under subdivision 22,
66.13paragraph (b).
66.14    (h) To qualify for a valuation exclusion under this subdivision a property owner must
66.15apply to the assessor by July 1 of each assessment year, except that an annual reapplication
66.16is not required once a property has been accepted for a valuation exclusion under paragraph
66.17(a) and qualifies for the benefit described in paragraph (b), clause (2), and the property
66.18continues to qualify until there is a change in ownership. For an application received after
66.19July 1 of any calendar year, the exclusion shall become effective for the following assessment
66.20year.
66.21(i) A first-time application by a qualifying spouse for the market value exclusion under
66.22paragraph (d) must be made any time within two years of the death of the service member.
66.23(j) For purposes of this subdivision:
66.24(1) "active service" has the meaning given in section 190.05;
66.25(2) "own" means that the person's name is present as an owner on the property deed;
66.26(3) "primary family caregiver" means a person who is approved by the secretary of the
66.27United States Department of Veterans Affairs for assistance as the primary provider of
66.28personal care services for an eligible veteran under the Program of Comprehensive Assistance
66.29for Family Caregivers, codified as United States Code, title 38, section 1720G; and
66.30(4) "veteran" has the meaning given the term in section 197.447.
67.1(k) If a veteran did not apply for or receive the exclusion under paragraph (b), clause
67.2(2), before dying, the veteran's spouse is entitled to the benefit under paragraph (b), clause
67.3(2), until the spouse remarries or sells, transfers, or otherwise disposes of the property if:
67.4(1) the spouse files a first-time application within two years of the death of the service
67.5member or by June 1, 2019, whichever is later;
67.6(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the
67.7homestead and permanently resides there;
67.8(3) the veteran met the honorable discharge requirements of paragraph (a);
67.9(4) the spouse complies with the annual application requirement under paragraph (h);
67.10and
67.11(5) the United States Department of Veterans Affairs certifies that:
67.12(i) the veteran met the total (100 percent) and permanent disability requirement under
67.13paragraph (b), clause (2); or
67.14(ii) the spouse has been awarded dependency and indemnity compensation.
67.15(l) The purpose of this provision of law providing a level of homestead property tax
67.16relief for gravely disabled veterans, their primary family caregivers, and their surviving
67.17spouses is to help ease the burdens of war for those among our state's citizens who bear
67.18those burdens most heavily.
67.19EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

67.20    Sec. 11. Minnesota Statutes 2016, section 275.025, subdivision 1, is amended to read:
67.21    Subdivision 1. Levy amount. The state general levy is levied against
67.22commercial-industrial property and seasonal residential recreational property, as defined
67.23in this section. The state general levy base amount for commercial-industrial property is
67.24$592,000,000 $784,594,000 for taxes payable in 2002 2018 and thereafter. For taxes payable
67.25in subsequent years, the levy base amount is increased each year by multiplying the levy
67.26base amount for the prior year by the sum of one plus the rate of increase, if any, in the
67.27implicit price deflator for government consumption expenditures and gross investment for
67.28state and local governments prepared by the Bureau of Economic Analysts of the United
67.29States Department of Commerce for the 12-month period ending March 31 of the year prior
67.30to the year the taxes are payable The state general levy base amount for seasonal
67.31residential-recreational property is $44,190,000 for taxes payable in 2018 and thereafter.
68.1The tax under this section is not treated as a local tax rate under section 469.177 and is not
68.2the levy of a governmental unit under chapters 276A and 473F.
68.3The commissioner shall increase or decrease the preliminary or final rate rates for a year
68.4as necessary to account for errors and tax base changes that affected a preliminary or final
68.5rate for either of the two preceding years. Adjustments are allowed to the extent that the
68.6necessary information is available to the commissioner at the time the rates for a year must
68.7be certified, and for the following reasons:
68.8(1) an erroneous report of taxable value by a local official;
68.9(2) an erroneous calculation by the commissioner; and
68.10(3) an increase or decrease in taxable value for commercial-industrial or seasonal
68.11residential recreational property reported on the abstracts of tax lists submitted under section
68.12275.29 that was not reported on the abstracts of assessment submitted under section 270C.89
68.13for the same year.
68.14The commissioner may, but need not, make adjustments if the total difference in the tax
68.15levied for the year would be less than $100,000.
68.16EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

68.17    Sec. 12. Minnesota Statutes 2016, section 275.025, subdivision 2, is amended to read:
68.18    Subd. 2. Commercial-industrial tax capacity. For the purposes of this section,
68.19"commercial-industrial tax capacity" means the tax capacity of all taxable property classified
68.20as class 3 or class 5(1) under section 273.13, except for excluding: (1) the first $100,000 of
68.21market value of each parcel of commercial-industrial net tax capacity as defined under
68.22section 273.13, subdivision 24, clauses (1) and (2); (2) electric generation attached machinery
68.23under class 3; and (3) property described in section 473.625. County commercial-industrial
68.24tax capacity amounts are not adjusted for the captured net tax capacity of a tax increment
68.25financing district under section 469.177, subdivision 2, the net tax capacity of transmission
68.26lines deducted from a local government's total net tax capacity under section 273.425, or
68.27fiscal disparities contribution and distribution net tax capacities under chapter 276A or 473F.
68.28For purposes of this subdivision, the procedures for determining eligibility for tier 1under
68.29section 273.13, subdivision 24, clauses (1) and (2), shall apply in determining the portion
68.30of a property eligible to be considered within the first $100,000 of market value.
68.31EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

69.1    Sec. 13. Minnesota Statutes 2016, section 275.025, subdivision 4, is amended to read:
69.2    Subd. 4. Apportionment and levy of state general tax. Ninety-five percent of The
69.3state general tax must be levied by applying a uniform rate to all commercial-industrial tax
69.4capacity and five percent of the state general tax must be levied by applying a uniform rate
69.5to all seasonal residential recreational tax capacity. On or before October 1 each year, the
69.6commissioner of revenue shall certify the preliminary state general levy rates to each county
69.7auditor that must be used to prepare the notices of proposed property taxes for taxes payable
69.8in the following year. By January 1 of each year, the commissioner shall certify the final
69.9state general levy rate rates to each county auditor that shall be used in spreading taxes.
69.10EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

69.11    Sec. 14. Minnesota Statutes 2016, section 275.065, subdivision 1, is amended to read:
69.12    Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the contrary,
69.13on or before September 30, each county and each, home rule charter or statutory city, town,
69.14and special taxing district, excluding the Metropolitan Council and the Metropolitan Mosquito
69.15Control Commission, shall certify to the county auditor the proposed property tax levy for
69.16taxes payable in the following year. For towns, the final certified levy shall also be considered
69.17the proposed levy.
69.18    (b) Notwithstanding any law or charter to the contrary, on or before September 15, each
69.19town and each special taxing district the Metropolitan Council and the Metropolitan Mosquito
69.20Control Commission shall adopt and certify to the county auditor a proposed property tax
69.21levy for taxes payable in the following year. For towns, the final certified levy shall also be
69.22considered the proposed levy.
69.23    (c) On or before September 30, each school district that has not mutually agreed with
69.24its home county to extend this date shall certify to the county auditor the proposed property
69.25tax levy for taxes payable in the following year. Each school district that has agreed with
69.26its home county to delay the certification of its proposed property tax levy must certify its
69.27proposed property tax levy for the following year no later than October 7. The school district
69.28shall certify the proposed levy as:
69.29    (1) a specific dollar amount by school district fund, broken down between voter-approved
69.30and non-voter-approved levies and between referendum market value and tax capacity
69.31levies; or
69.32    (2) the maximum levy limitation certified by the commissioner of education according
69.33to section 126C.48, subdivision 1.
70.1    (d) If the board of estimate and taxation or any similar board that establishes maximum
70.2tax levies for taxing jurisdictions within a first class city certifies the maximum property
70.3tax levies for funds under its jurisdiction by charter to the county auditor by the date specified
70.4in paragraph (a), the city shall be deemed to have certified its levies for those taxing
70.5jurisdictions.
70.6    (e) For purposes of this section, "special taxing district" means a special taxing district
70.7as defined in section 275.066. Intermediate school districts that levy a tax under chapter
70.8124 or 136D, joint powers boards established under sections 123A.44 to 123A.446, and
70.9Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special
70.10taxing districts for purposes of this section.
70.11(f) At the meeting at which a taxing authority, other than a town, adopts its proposed
70.12tax levy under this subdivision, the taxing authority shall announce the time and place of
70.13its subsequent regularly scheduled meetings at which the budget and levy will be discussed
70.14and at which the public will be allowed to speak. The time and place of those meetings must
70.15be included in the proceedings or summary of proceedings published in the official newspaper
70.16of the taxing authority under section 123B.09, 375.12, or 412.191.
70.17EFFECTIVE DATE.This section is effective beginning with proposed levy
70.18certifications for taxes payable in 2018.

70.19    Sec. 15. Minnesota Statutes 2016, section 275.07, subdivision 1, is amended to read:
70.20    Subdivision 1. Certification of levy. (a) Except as provided under paragraph (b), the
70.21taxes voted by cities, counties, school districts, and special districts shall be certified by the
70.22proper authorities to the county auditor on or before five working days after December 20
70.23in each year. A town must certify the levy adopted by the town board to the county auditor
70.24by September 15 30 each year. If the town board modifies the levy at a special town meeting
70.25after September 15 30, the town board must recertify its levy to the county auditor on or
70.26before five working days after December 20. If a city, town, county, school district, or
70.27special district fails to certify its levy by that date, its levy shall be the amount levied by it
70.28for the preceding year.
70.29(b)(i) The taxes voted by counties under sections 103B.241, 103B.245, and 103B.251
70.30shall be separately certified by the county to the county auditor on or before five working
70.31days after December 20 in each year. The taxes certified shall not be reduced by the county
70.32auditor by the aid received under section 273.1398, subdivision 3. If a county fails to certify
70.33its levy by that date, its levy shall be the amount levied by it for the preceding year.
71.1(ii) For purposes of the proposed property tax notice under section 275.065 and the
71.2property tax statement under section 276.04, for the first year in which the county implements
71.3the provisions of this paragraph, the county auditor shall reduce the county's levy for the
71.4preceding year to reflect any amount levied for water management purposes under clause
71.5(i) included in the county's levy.
71.6EFFECTIVE DATE.This section is effective beginning with proposed levy
71.7certifications for taxes payable in 2018.

71.8    Sec. 16. Minnesota Statutes 2016, section 279.01, subdivision 2, is amended to read:
71.9    Subd. 2. Abatement of penalty. (a) The county board may, with the concurrence of the
71.10county treasurer, delegate to the county treasurer the power to abate the penalty provided
71.11for late payment of taxes in the current year. Notwithstanding section 270C.86, if any county
71.12board so elects, the county treasurer may abate the penalty on finding that the imposition
71.13of the penalty would be unjust and unreasonable.
71.14(b) The county treasurer shall abate the penalty provided for late payment of taxes in
71.15the current year if the property tax payment is delivered by mail to the county treasurer and
71.16the envelope containing the payment is postmarked by the United States Postal Service
71.17within one business day of the due date prescribed under this section, but only if the property
71.18owner requesting the abatement has not previously received an abatement of penalty for
71.19late payment of tax under this paragraph.
71.20EFFECTIVE DATE.This section is effective for property taxes payable in 2018 and
71.21thereafter.

71.22    Sec. 17. Minnesota Statutes 2016, section 290C.02, subdivision 6, is amended to read:
71.23    Subd. 6. Forest land. "Forest land" means land containing a minimum of 20 contiguous
71.24acres for which the owner has implemented a forest management plan that was prepared or
71.25updated within the past ten years by an approved plan writer. For purposes of this subdivision,
71.26acres are considered to be contiguous even if they are separated by a road, waterway, railroad
71.27track, or other similar intervening property. At least 50 percent of the contiguous acreage
71.28must meet the definition of forest land in section 88.01, subdivision 7. For the purposes of
71.29sections 290C.01 to 290C.11 290C.13, forest land does not include (i) land used for
71.30residential or agricultural purposes, (ii) land enrolled in the reinvest in Minnesota program,
71.31a state or federal conservation reserve or easement reserve program under sections 103F.501
71.32to 103F.531, the Minnesota agricultural property tax law under section 273.111, or land
71.33subject to agricultural land preservation controls or restrictions as defined in section 40A.02
72.1or under the Metropolitan Agricultural Preserves Act under chapter 473H, (iii) land exceeding
72.260,000 acres that is subject to a single conservation easement funded under section 97A.056
72.3or a comparable permanent easement conveyed to a governmental or nonprofit entity; (iv)
72.4any land that becomes subject to a conservation easement funded under section 97A.056
72.5or a comparable permanent easement conveyed to a governmental or nonprofit entity after
72.6May 30, 2013; or (v) land improved with a structure,; pavement, other than a paved trail
72.7under easement, lease, or terminable license to the state of Minnesota or a political
72.8subdivision; sewer,; campsite,; or any road, other than a township road, used for purposes
72.9not prescribed in the forest management plan.
72.10EFFECTIVE DATE.This section is effective the day following final enactment.

72.11    Sec. 18. Minnesota Statutes 2016, section 290C.07, is amended to read:
72.12290C.07 CALCULATION OF INCENTIVE PAYMENT.
72.13    An approved claimant under the sustainable forest incentive program is eligible to receive
72.14an annual payment for each acre of enrolled land, excluding any acre improved with a paved
72.15trail under easement, lease, or terminable license to the state of Minnesota or a political
72.16subdivision. The payment shall equal $7 per acre for each acre enrolled in the sustainable
72.17forest incentive program.
72.18EFFECTIVE DATE.This section is effective the day following final enactment.

72.19    Sec. 19. Minnesota Statutes 2016, section 290C.10, is amended to read:
72.20290C.10 WITHDRAWAL PROCEDURES.
72.21(a) An approved claimant under the sustainable forest incentive program for a minimum
72.22of four years may notify the commissioner of the intent to terminate enrollment. Within 90
72.23days of receipt of notice to terminate enrollment, the commissioner shall inform the claimant
72.24in writing, acknowledging receipt of this notice and indicating the effective date of
72.25termination from the sustainable forest incentive program. Termination of enrollment in
72.26the sustainable forest incentive program occurs on January 1 of the fifth calendar year that
72.27begins after receipt by the commissioner of the termination notice. After the commissioner
72.28issues an effective date of termination, a claimant wishing to continue the land's enrollment
72.29in the sustainable forest incentive program beyond the termination date must apply for
72.30enrollment as prescribed in section 290C.04. A claimant who withdraws a parcel of land
72.31from this program may not reenroll the parcel for a period of three years. Within 90 days
72.32after the termination date, the commissioner shall execute and acknowledge a document
73.1releasing the land from the covenant required under this chapter. The document must be
73.2mailed to the claimant and is entitled to be recorded.
73.3(b) Notwithstanding paragraph (a), the commissioner may allow early withdrawal from
73.4the Sustainable Forest Incentive Act without penalty when the state of Minnesota, any local
73.5government unit, or any other entity which has the power of eminent domain acquires title
73.6or possession to the land for a public purpose notwithstanding the provisions of this section.
73.7In the case of such an eligible acquisition under this paragraph, the commissioner shall
73.8execute and acknowledge a document releasing the land acquired by the state, local
73.9government unit, or other entity from the covenant. All other enrolled land must remain in
73.10the program.
73.11(c) Notwithstanding paragraph (a), upon request of the claimant, the commissioner shall
73.12allow early withdrawal from the Sustainable Forest Incentive Act without penalty for land
73.13that is subject to fee or easement acquisition or lease to the state of Minnesota or a political
73.14subdivision of the state for the public purpose of a paved trail. The commissioner of natural
73.15resources must notify the commissioner of lands acquired under this paragraph that are
73.16eligible for withdrawal. In the case of an eligible fee or easement acquisition or lease under
73.17this paragraph, the commissioner shall execute and acknowledge a document releasing the
73.18land subject to fee or easement acquisition or lease by the state or political subdivision of
73.19the state.
73.20EFFECTIVE DATE.This section is effective the day following final enactment.

73.21    Sec. 20. Minnesota Statutes 2016, section 473H.09, is amended to read:
73.22473H.09 EARLY TERMINATION.
73.23    Subdivision 1. Public emergency. Termination of an agricultural preserve earlier than
73.24a date derived through application of section 473H.08 may be permitted only in the event
73.25of a public emergency upon petition from the owner or authority to the governor. The
73.26determination of a public emergency shall be by the governor through executive order
73.27pursuant to sections 4.035 and 12.01 to 12.46. The executive order shall identify the preserve,
73.28the reasons requiring the action and the date of termination.
73.29    Subd. 2. Death of owner. (a) Within 365 days of the death of an owner, an owner's
73.30spouse, or other qualifying person, the surviving owner may elect to terminate the agricultural
73.31preserve and the covenant allowing the land to be enrolled as an agricultural preserve by
73.32notifying the authority on a form provided by the commissioner of agriculture. Termination
74.1of a covenant under this subdivision must be executed and acknowledged in the manner
74.2required by law to execute and acknowledge a deed.
74.3(b) For purposes of this subdivision, the following definitions apply:
74.4(1) "qualifying person" includes a partner, shareholder, trustee for a trust that the decedent
74.5was the settlor or a beneficiary of, or member of an entity permitted to own agricultural
74.6land and engage in farming under section 500.24 that owned the agricultural preserve; and
74.7(2) "surviving owner" includes the executor of the estate of the decedent, trustee for a
74.8trust that the decedent was the settlor or a beneficiary of, or an entity permitted to own farm
74.9land under section 500.24 of which the decedent was a partner, shareholder, or member.
74.10(c) When an agricultural preserve is terminated under this subdivision, the property is
74.11subject to additional taxes in an amount equal to 50 percent of the taxes actually levied
74.12against the property for the current taxes payable year. The additional taxes are extended
74.13against the property on the tax list for taxes payable in the current year. The additional taxes
74.14must be distributed among the jurisdictions levying taxes on the property in proportion to
74.15the current year's taxes.
74.16EFFECTIVE DATE.This section is effective July 1, 2017.

74.17    Sec. 21. Minnesota Statutes 2016, section 473H.17, subdivision 1a, is amended to read:
74.18    Subd. 1a. Allowed commercial and industrial operations. (a) Commercial and industrial
74.19operations are not allowed on land within an agricultural preserve except:
74.20(1) small on-farm commercial or industrial operations normally associated with and
74.21important to farming in the agricultural preserve area;
74.22(2) storage use of existing farm buildings that does not disrupt the integrity of the
74.23agricultural preserve; and
74.24(3) small commercial use of existing farm buildings for trades not disruptive to the
74.25integrity of the agricultural preserve such as a carpentry shop, small scale mechanics shop,
74.26and similar activities that a farm operator might conduct.; and
74.27(4) wireless communication installments and related equipment and structure capable
74.28of providing technology potentially beneficial to farming activities.
74.29(b) For purposes of paragraph (a), clauses (2) and (3), "existing" in paragraph (a), clauses
74.30(2) and (3), means existing on August 1, 1987.
74.31EFFECTIVE DATE.This section is effective the day following enactment.

75.1    Sec. 22. Laws 1996, chapter 471, article 3, section 51, is amended to read:
75.2    Sec. 51. RECREATION LEVY FOR SAWYER BY CARLTON COUNTY.
75.3    Subdivision 1. Levy authorized. Notwithstanding other law to the contrary, the Carlton
75.4county board of commissioners may levy in and for the unorganized township of Sawyer
75.5an amount up to $1,500 $2,000 annually for recreational purposes, beginning with taxes
75.6payable in 1997 and ending with taxes payable in 2006.
75.7    Subd. 2. Effective date. This section is effective June 1, 1996, without local approval.
75.8EFFECTIVE DATE.This section applies to taxes payable in 2018 and thereafter, and
75.9is effective the day after the Carlton County Board of Commissioners and its chief clerical
75.10officer timely complete their compliance with section 645.021, subdivisions 2 and 3.

75.11    Sec. 23. SOCCER STADIUM PROPERTY TAX EXEMPTION; SPECIAL
75.12ASSESSMENT.
75.13Any real or personal property acquired, owned, leased, controlled, used, or occupied by
75.14the city of St. Paul for the primary purpose of providing a stadium for a Major League
75.15Soccer team is declared to be acquired, owned, leased, controlled, used, and occupied for
75.16public, governmental, and municipal purposes, and is exempt from ad valorem taxation by
75.17the state or any political subdivision of the state, provided that the properties are subject to
75.18special assessments levied by a political subdivision for a local improvement in amounts
75.19proportionate to and not exceeding the special benefit received by the properties from the
75.20improvement. In determining the special benefit received by the properties, no possible use
75.21of any of the properties in any manner different from their intended use for providing a
75.22Major League Soccer stadium at the time may be considered. Notwithstanding Minnesota
75.23Statutes, section 272.01, subdivision 2, or 273.19, real or personal property subject to a
75.24lease or use agreement between the city and another person for uses related to the purposes
75.25of the operation of the stadium and related parking facilities is exempt from taxation
75.26regardless of the length of the lease or use agreement. This section, insofar as it provides
75.27an exemption or special treatment, does not apply to any real property that is leased for
75.28residential, business, or commercial development or other purposes different from those
75.29necessary to the provision and operation of the stadium.
75.30EFFECTIVE DATE.This section is effective upon approval by the St. Paul City
75.31Council and compliance with Minnesota Statutes, section 645.021.

76.1ARTICLE 3

76.2SALES AND USE

76.3    Section 1. Minnesota Statutes 2016, section 128C.24, is amended to read:
76.4128C.24 LEAGUE FUNDS TRANSFER.
76.5(a) Beginning July 1, 2007, the Minnesota State High School League shall annually
76.6determine the sales tax savings attributable to section 297A.70, subdivision 11 11a, and
76.7annually transfer that amount to a nonprofit charitable foundation created for the purpose
76.8of promoting high school extracurricular activities. The funds must be used by the foundation
76.9to make grants to fund, assist, recognize, or promote high school students' participation in
76.10extracurricular activities. The first priority for funding will be grants for scholarships to
76.11individuals to offset athletic fees. The foundation must equitably award grants based on
76.12considerations of gender balance, school size, and geographic location, to the extent feasible.
76.13(b) By February 1 of each year, the Minnesota State High School League must report
76.14to the chairs and ranking minority members of the legislative committees and divisions with
76.15jurisdiction over E-12 education on activities funded by the transfer under this section. The
76.16report must include the following information for the previous fiscal year beginning July
76.171:
76.18(1) the number of high schools receiving grants;
76.19(2) the amount of grants made to high schools;
76.20(3) the number of students benefiting from financial assistance to offset athletic fees;
76.21(4) the regional breakdown of grants by school; and
76.22(5) any other information helpful in assessing the success of the program.
76.23EFFECTIVE DATE.This section is effective for sales and purchases made after June
76.2430, 2017, and before July 1, 2027.

76.25    Sec. 2. Minnesota Statutes 2016, section 297A.61, subdivision 3, is amended to read:
76.26    Subd. 3. Sale and purchase. (a) "Sale" and "purchase" include, but are not limited to,
76.27each of the transactions listed in this subdivision. In applying the provisions of this chapter,
76.28the terms "tangible personal property" and "retail sale" include the taxable services listed
76.29in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision of these taxable
76.30services, unless specifically provided otherwise. Services performed by an employee for
76.31an employer are not taxable. Services performed by a partnership or association for another
77.1partnership or association are not taxable if one of the entities owns or controls more than
77.280 percent of the voting power of the equity interest in the other entity. Services performed
77.3between members of an affiliated group of corporations are not taxable. For purposes of
77.4the preceding sentence, "affiliated group of corporations" means those entities that would
77.5be classified as members of an affiliated group as defined under United States Code, title
77.626, section 1504, disregarding the exclusions in section 1504(b).
77.7    (b) Sale and purchase include:
77.8    (1) any transfer of title or possession, or both, of tangible personal property, whether
77.9absolutely or conditionally, for a consideration in money or by exchange or barter; and
77.10    (2) the leasing of or the granting of a license to use or consume, for a consideration in
77.11money or by exchange or barter, tangible personal property, other than a manufactured
77.12home used for residential purposes for a continuous period of 30 days or more.
77.13    (c) Sale and purchase include the production, fabrication, printing, or processing of
77.14tangible personal property for a consideration for consumers who furnish either directly or
77.15indirectly the materials used in the production, fabrication, printing, or processing.
77.16    (d) Sale and purchase include the preparing for a consideration of food. Notwithstanding
77.17section 297A.67, subdivision 2, taxable food includes, but is not limited to, the following:
77.18    (1) prepared food sold by the retailer;
77.19    (2) soft drinks;
77.20    (3) candy; and
77.21    (4) dietary supplements; and.
77.22    (5) all food sold through vending machines.
77.23    (e) A sale and a purchase includes the furnishing for a consideration of electricity, gas,
77.24water, or steam for use or consumption within this state.
77.25    (f) A sale and a purchase includes the transfer for a consideration of prewritten computer
77.26software whether delivered electronically, by load and leave, or otherwise.
77.27    (g) A sale and a purchase includes the furnishing for a consideration of the following
77.28services:
77.29    (1) the privilege of admission to places of amusement, recreational areas, or athletic
77.30events, and the making available of amusement devices, tanning facilities, reducing salons,
77.31steam baths, health clubs, and spas or athletic facilities;
78.1    (2) lodging and related services by a hotel, rooming house, resort, campground, motel,
78.2or trailer camp, including furnishing the guest of the facility with access to telecommunication
78.3services, and the granting of any similar license to use real property in a specific facility,
78.4other than the renting or leasing of it for a continuous period of 30 days or more under an
78.5enforceable written agreement that may not be terminated without prior notice and including
78.6accommodations intermediary services provided in connection with other services provided
78.7under this clause;
78.8    (3) nonresidential parking services, whether on a contractual, hourly, or other periodic
78.9basis, except for parking at a meter;
78.10    (4) the granting of membership in a club, association, or other organization if:
78.11    (i) the club, association, or other organization makes available for the use of its members
78.12sports and athletic facilities, without regard to whether a separate charge is assessed for use
78.13of the facilities; and
78.14    (ii) use of the sports and athletic facility is not made available to the general public on
78.15the same basis as it is made available to members.
78.16Granting of membership means both onetime initiation fees and periodic membership dues.
78.17Sports and athletic facilities include golf courses; tennis, racquetball, handball, and squash
78.18courts; basketball and volleyball facilities; running tracks; exercise equipment; swimming
78.19pools; and other similar athletic or sports facilities;
78.20    (5) delivery of aggregate materials by a third party, excluding delivery of aggregate
78.21material used in road construction; and delivery of concrete block by a third party if the
78.22delivery would be subject to the sales tax if provided by the seller of the concrete block.
78.23For purposes of this clause, "road construction" means construction of:
78.24    (i) public roads;
78.25    (ii) cartways; and
78.26    (iii) private roads in townships located outside of the seven-county metropolitan area
78.27up to the point of the emergency response location sign; and
78.28    (6) services as provided in this clause:
78.29    (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
78.30and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
78.31drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
78.32include services provided by coin operated facilities operated by the customer;
79.1    (ii) motor vehicle washing, waxing, and cleaning services, including services provided
79.2by coin operated facilities operated by the customer, and rustproofing, undercoating, and
79.3towing of motor vehicles;
79.4    (iii) building and residential cleaning, maintenance, and disinfecting services and pest
79.5control and exterminating services;
79.6    (iv) detective, security, burglar, fire alarm, and armored car services; but not including
79.7services performed within the jurisdiction they serve by off-duty licensed peace officers as
79.8defined in section 626.84, subdivision 1, or services provided by a nonprofit organization
79.9or any organization at the direction of a county for monitoring and electronic surveillance
79.10of persons placed on in-home detention pursuant to court order or under the direction of the
79.11Minnesota Department of Corrections;
79.12    (v) pet grooming services;
79.13    (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
79.14and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor plant
79.15care; tree, bush, shrub, and stump removal, except when performed as part of a land clearing
79.16contract as defined in section 297A.68, subdivision 40; and tree trimming for public utility
79.17lines. Services performed under a construction contract for the installation of shrubbery,
79.18plants, sod, trees, bushes, and similar items are not taxable;
79.19    (vii) massages, except when provided by a licensed health care facility or professional
79.20or upon written referral from a licensed health care facility or professional for treatment of
79.21illness, injury, or disease; and
79.22    (viii) the furnishing of lodging, board, and care services for animals in kennels and other
79.23similar arrangements, but excluding veterinary and horse boarding services.
79.24    (h) A sale and a purchase includes the furnishing for a consideration of tangible personal
79.25property or taxable services by the United States or any of its agencies or instrumentalities,
79.26or the state of Minnesota, its agencies, instrumentalities, or political subdivisions.
79.27    (i) A sale and a purchase includes the furnishing for a consideration of
79.28telecommunications services, ancillary services associated with telecommunication services,
79.29and pay television services. Telecommunication services include, but are not limited to, the
79.30following services, as defined in section 297A.669: air-to-ground radiotelephone service,
79.31mobile telecommunication service, postpaid calling service, prepaid calling service, prepaid
79.32wireless calling service, and private communication services. The services in this paragraph
79.33are taxed to the extent allowed under federal law.
80.1    (j) A sale and a purchase includes the furnishing for a consideration of installation if the
80.2installation charges would be subject to the sales tax if the installation were provided by
80.3the seller of the item being installed.
80.4    (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer to a
80.5customer when (1) the vehicle is rented by the customer for a consideration, or (2) the motor
80.6vehicle dealer is reimbursed pursuant to a service contract as defined in section 59B.02,
80.7subdivision 11.
80.8    (l) A sale and a purchase includes furnishing for a consideration of specified digital
80.9products or other digital products or granting the right for a consideration to use specified
80.10digital products or other digital products on a temporary or permanent basis and regardless
80.11of whether the purchaser is required to make continued payments for such right. Wherever
80.12the term "tangible personal property" is used in this chapter, other than in subdivisions 10
80.13and 38, the provisions also apply to specified digital products, or other digital products,
80.14unless specifically provided otherwise or the context indicates otherwise.
80.15EFFECTIVE DATE.This section is effective for sales and purchases made after June
80.1630, 2017.

80.17    Sec. 3. Minnesota Statutes 2016, section 297A.61, subdivision 4, is amended to read:
80.18    Subd. 4. Retail sale. (a) A "retail sale" means:
80.19    (1) any sale, lease, or rental of tangible personal property for any purpose, other than
80.20resale, sublease, or subrent of items by the purchaser in the normal course of business as
80.21defined in subdivision 21; and
80.22    (2) any sale of a service enumerated in subdivision 3, for any purpose other than resale
80.23by the purchaser in the normal course of business as defined in subdivision 21.
80.24    (b) A sale of property used by the owner only by leasing it to others or by holding it in
80.25an effort to lease it, and put to no use by the owner other than resale after the lease or effort
80.26to lease, is a sale of property for resale.
80.27    (c) A sale of master computer software that is purchased and used to make copies for
80.28sale or lease is a sale of property for resale.
80.29    (d) A sale of building materials, supplies, and equipment to owners, contractors,
80.30subcontractors, or builders for the erection of buildings or the alteration, repair, or
80.31improvement of real property is a retail sale in whatever quantity sold, whether the sale is
80.32for purposes of resale in the form of real property or otherwise.
81.1    (e) A sale of carpeting, linoleum, or similar floor covering to a person who provides for
81.2installation of the floor covering is a retail sale and not a sale for resale since a sale of floor
81.3covering which includes installation is a contract for the improvement of real property.
81.4    (f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides
81.5for installation of the items is a retail sale and not a sale for resale since a sale of shrubbery,
81.6plants, sod, trees, and similar items that includes installation is a contract for the improvement
81.7of real property.
81.8    (g) A sale of tangible personal property that is awarded as prizes is a retail sale and is
81.9not considered a sale of property for resale.
81.10    (h) A sale of tangible personal property utilized or employed in the furnishing or
81.11providing of services under subdivision 3, paragraph (g), clause (1), including, but not
81.12limited to, property given as promotional items, is a retail sale and is not considered a sale
81.13of property for resale.
81.14    (i) A sale of tangible personal property used in conducting lawful gambling under chapter
81.15349 or the State Lottery under chapter 349A, including, but not limited to, property given
81.16as promotional items, is a retail sale and is not considered a sale of property for resale.
81.17    (j) a sale of machines, equipment, or devices that are used to furnish, provide, or dispense
81.18goods or services, including, but not limited to, coin-operated devices, is a retail sale and
81.19is not considered a sale of property for resale.
81.20    (k) In the case of a lease, a retail sale occurs (1) when an obligation to make a lease
81.21payment becomes due under the terms of the agreement or the trade practices of the lessor
81.22or (2) in the case of a lease of a motor vehicle, as defined in section 297B.01, subdivision
81.2311 , but excluding vehicles with a manufacturer's gross vehicle weight rating greater than
81.2410,000 pounds and rentals of vehicles for not more than 28 days, at the time the lease is
81.25executed.
81.26    (l) In the case of a conditional sales contract, a retail sale occurs upon the transfer of
81.27title or possession of the tangible personal property.
81.28    (m) A sale of a bundled transaction in which one or more of the products included in
81.29the bundle is a taxable product is a retail sale, except that if one of the products is a
81.30telecommunication service, ancillary service, Internet access, or audio or video programming
81.31service, and the seller has maintained books and records identifying through reasonable and
81.32verifiable standards the portions of the price that are attributable to the distinct and separately
82.1identifiable products, then the products are not considered part of a bundled transaction.
82.2For purposes of this paragraph:
82.3    (1) the books and records maintained by the seller must be maintained in the regular
82.4course of business, and do not include books and records created and maintained by the
82.5seller primarily for tax purposes;
82.6    (2) books and records maintained in the regular course of business include, but are not
82.7limited to, financial statements, general ledgers, invoicing and billing systems and reports,
82.8and reports for regulatory tariffs and other regulatory matters; and
82.9    (3) books and records are maintained primarily for tax purposes when the books and
82.10records identify taxable and nontaxable portions of the price, but the seller maintains other
82.11books and records that identify different prices attributable to the distinct products included
82.12in the same bundled transaction.
82.13    (n) A sale of motor vehicle repair paint and materials by a motor vehicle repair or body
82.14shop business is a retail sale and the sales tax is imposed on the gross receipts from the retail
82.15sale of the paint and materials. The motor vehicle repair or body shop that purchases motor
82.16vehicle repair paint and motor vehicle repair materials for resale must either:
82.17    (1) separately state each item of paint and each item of materials, and the sales price of
82.18each, on the invoice to the purchaser; or
82.19    (2) in order to calculate the sales price of the paint and materials, use a method which
82.20estimates the amount and monetary value of the paint and materials used in the repair of
82.21the motor vehicle by multiplying the number of labor hours by a rate of consideration for
82.22the paint and materials used in the repair of the motor vehicle following industry standard
82.23practices that fairly calculate the gross receipts from the retail sale of the motor vehicle
82.24repair paint and motor vehicle repair materials. An industry standard practice fairly calculates
82.25the gross receipts if the sales price of the paint and materials used or consumed in the repair
82.26of a motor vehicle equals or exceeds the purchase price paid by the motor vehicle repair or
82.27body shop business. Under this clause, the invoice must either separately state the "paint
82.28and materials" as a single taxable item, or separately state "paint" as a taxable item and
82.29"materials" as a taxable item. This clause does not apply to wholesale transactions at an
82.30auto auction facility.
82.31    (o) A sale of specified digital products or other digital products to an end user with or
82.32without rights of permanent use and regardless of whether rights of use are conditioned
82.33upon payment by the purchaser is a retail sale. When a digital code has been purchased that
82.34relates to specified digital products or other digital products, the subsequent receipt of or
83.1access to the related specified digital products or other digital products is not a retail sale.
83.2For purposes of this paragraph, "end user" does not include a person, including the owner
83.3or operator of a jukebox or similar device that charges customers for access to specified
83.4digital products or other digital products, who receives by contract a product transferred
83.5electronically for further commercial broadcast, rebroadcast, transmission, retransmission,
83.6licensing, relicensing, distribution, redistribution or exhibition of the product, in whole or
83.7in part, to another person or persons.
83.8    (p) A payment made to a cooperative electric association or public utility as a contribution
83.9in aid of construction is a contract for improvement to real property and is not a retail sale.
83.10EFFECTIVE DATE.This section is effective for sales and purchases made after June
83.1130, 2017.

83.12    Sec. 4. Minnesota Statutes 2016, section 297A.61, subdivision 34, is amended to read:
83.13    Subd. 34. Taxable food sold through vending machines. "Taxable food sold through
83.14vending machines" means food prepared food, soft drinks, or candy dispensed from a
83.15machine or other device that accepts payment including honor payments.
83.16EFFECTIVE DATE.This section is effective for sales and purchases made after June
83.1730, 2017.

83.18    Sec. 5. Minnesota Statutes 2016, section 297A.66, subdivision 1, is amended to read:
83.19    Subdivision 1. Definitions. (a) To the extent allowed by the United States Constitution
83.20and the laws of the United States, "retailer maintaining a place of business in this state," or
83.21a similar term, means a retailer:
83.22(1) having or maintaining within this state, directly or by a subsidiary or an affiliate, an
83.23office, place of distribution, sales or sample room or place, storage, warehouse, or other
83.24place of business, including the employment of a resident of this state who works from a
83.25home office in this state; or
83.26(2) having a representative, including, but not limited to, an affiliate, agent, salesperson,
83.27canvasser, or marketplace provider, solicitor, or other third party operating in this state
83.28under the authority of the retailer or its subsidiary, for any purpose, including the repairing,
83.29selling, delivering, installing, facilitating sales, processing sales, or soliciting of orders for
83.30the retailer's goods or services, or the leasing of tangible personal property located in this
83.31state, whether the place of business or agent, representative, affiliate, salesperson, canvasser,
83.32or solicitor is located in the state permanently or temporarily, or whether or not the retailer,
84.1subsidiary, or affiliate is authorized to do business in this state. A retailer is represented by
84.2a marketplace provider in this state if the retailer makes sales in this state facilitated by a
84.3marketplace provider that maintains a place of business in this state.
84.4(b) "Destination of a sale" means the location to which the retailer makes delivery of
84.5the property sold, or causes the property to be delivered, to the purchaser of the property,
84.6or to the agent or designee of the purchaser. The delivery may be made by any means,
84.7including the United States Postal Service or a for-hire carrier.
84.8(c) "Marketplace provider" means any person who facilitates a retail sale by a retailer
84.9by:
84.10(1) listing or advertising for sale by the retailer in any forum tangible personal property,
84.11services, or digital goods that are subject to tax under this chapter; and
84.12(2) either directly or indirectly through agreements or arrangements with third parties
84.13collecting payment from the customer and transmitting that payment to the retailer regardless
84.14of whether the marketplace provider receives compensation or other consideration in
84.15exchange for its services.
84.16(d) "Total taxable retail sales" means the gross receipts from the sale of all tangible
84.17goods, services, and digital goods subject to sales and use tax under this chapter.

84.18    Sec. 6. Minnesota Statutes 2016, section 297A.66, subdivision 2, is amended to read:
84.19    Subd. 2. Retailer maintaining place of business in this state. (a) Except as provided
84.20in paragraph (b), a retailer maintaining a place of business in this state who makes retail
84.21sales in Minnesota or to a destination in Minnesota shall collect sales and use taxes and
84.22remit them to the commissioner under section 297A.77.
84.23(b) A retailer with total taxable retail sales to customers in this state of less than $10,000
84.24in the 12-month period ending on the last day of the most recently completed calendar
84.25quarter is not required to collect and remit sales tax if it is determined to be a retailer
84.26maintaining a place of business in the state solely because it made sales through one or more
84.27marketplace providers. The provisions of this paragraph do not apply to a retailer that is or
84.28was registered to collect sales and use tax in this state.

84.29    Sec. 7. Minnesota Statutes 2016, section 297A.66, subdivision 4, is amended to read:
84.30    Subd. 4. Affiliated entities. (a) An entity is an "affiliate" of the retailer for purposes of
84.31subdivision 1, paragraph (a), if the entity:
85.1(1) the entity uses its facilities or employees in this state to advertise, promote, or facilitate
85.2the establishment or maintenance of a market for sales of items by the retailer to purchasers
85.3in this state or for the provision of services to the retailer's purchasers in this state, such as
85.4accepting returns of purchases for the retailer, providing assistance in resolving customer
85.5complaints of the retailer, or providing other services; and
85.6(2) the retailer and the entity are related parties has the same or a similar business name
85.7to the retailer and sells, from a location or locations in this state, tangible personal property,
85.8digital goods, or services, taxable under this chapter, that are similar to that sold by the
85.9retailer;
85.10(3) maintains an office, distribution facility, salesroom, warehouse, storage place, or
85.11other similar place of business in this state to facilitate the delivery of tangible personal
85.12property, digital goods, or services sold by the retailer to its customers in this state;
85.13(4) maintains a place of business in this state and uses trademarks, service marks, or
85.14trade names in this state that are the same or substantially similar to those used by the retailer,
85.15and that use is done with the express or implied consent of the holder of the marks or names;
85.16(5) delivers, installs, or assembles tangible personal property in this state, or performs
85.17maintenance or repair services on tangible personal property in this state, for tangible
85.18personal property sold by the retailer;
85.19(6) facilitates the delivery of tangible personal property to customers of the retailer by
85.20allowing the customers to pick up tangible personal property sold by the retailer at a place
85.21of business the entity maintains in this state; or
85.22(7) shares management, business systems, business practices, or employees with the
85.23retailer, or engages in intercompany transactions with the retailer related to the activities
85.24that establish or maintain the market in this state of the retailer.
85.25(b) Two entities are related parties under this section if one of the entities meets at least
85.26one of the following tests with respect to the other entity:
85.27(1) one or both entities is a corporation, and one entity and any party related to that entity
85.28in a manner that would require an attribution of stock from the corporation to the party or
85.29from the party to the corporation under the attribution rules of section 318 of the Internal
85.30Revenue Code owns directly, indirectly, beneficially, or constructively at least 50 percent
85.31of the value of the corporation's outstanding stock;
85.32(2) one or both entities is a partnership, estate, or trust and any partner or beneficiary,
85.33and the partnership, estate, or trust and its partners or beneficiaries own directly, indirectly,
86.1beneficially, or constructively, in the aggregate, at least 50 percent of the profits, capital,
86.2stock, or value of the other entity or both entities; or
86.3(3) an individual stockholder and the members of the stockholder's family (as defined
86.4in section 318 of the Internal Revenue Code) owns directly, indirectly, beneficially, or
86.5constructively, in the aggregate, at least 50 percent of the value of both entities' outstanding
86.6stock;
86.7(4) the entities are related within the meaning of subsections (b) and (c) of section 267
86.8or 707(b)(1) of the Internal Revenue Code; or
86.9(5) the entities have one or more ownership relationships and the relationships were
86.10designed with a principal purpose of avoiding the application of this section.
86.11(c) An entity is an affiliate under the provisions of this subdivision if the requirements
86.12of paragraphs (a) and (b) are met during any part of the 12-month period ending on the first
86.13day of the month before the month in which the sale was made.

86.14    Sec. 8. Minnesota Statutes 2016, section 297A.66, is amended by adding a subdivision to
86.15read:
86.16    Subd. 4b. Collection and remittance requirements for marketplace providers and
86.17marketplace retailers. (a) A marketplace provider shall collect sales and use taxes and
86.18remit them to the commissioner under section 297A.77 for all facilitated sales for a retailer,
86.19and is subject to audit on the retail sales it facilitates unless either:
86.20(1) the retailer provides a copy of the retailer's registration to collect sales and use tax
86.21in this state to the marketplace provider before the marketplace provider facilitates a sale;
86.22or
86.23(2) upon inquiry by the marketplace provider or its agent, the commissioner discloses
86.24that the retailer is registered to collect sales and use taxes in this state.
86.25(b) Nothing in this subdivision shall be construed to interfere with the ability of a
86.26marketplace provider and a retailer to enter into an agreement regarding fulfillment of the
86.27requirements of this chapter.
86.28(c) A marketplace provider is not liable under this subdivision for failure to file and
86.29collect and remit sales and use taxes if the marketplace provider demonstrates that the error
86.30was due to incorrect or insufficient information given to the marketplace provider by the
86.31retailer. This paragraph does not apply if the marketplace provider and the marketplace
86.32retailer are related as defined in subdivision 4, paragraph (b).

87.1    Sec. 9. Minnesota Statutes 2016, section 297A.67, subdivision 2, is amended to read:
87.2    Subd. 2. Food and food ingredients. Except as otherwise provided in this subdivision,
87.3food and food ingredients are exempt. For purposes of this subdivision, "food" and "food
87.4ingredients" mean substances, whether in liquid, concentrated, solid, frozen, dried, or
87.5dehydrated form, that are sold for ingestion or chewing by humans and are consumed for
87.6their taste or nutritional value. Food and food ingredients exempt under this subdivision do
87.7not include candy, soft drinks, food sold through vending machines, dietary supplements,
87.8and prepared foods. Food and food ingredients do not include alcoholic beverages and
87.9tobacco. For purposes of this subdivision, "alcoholic beverages" means beverages that are
87.10suitable for human consumption and contain one-half of one percent or more of alcohol by
87.11volume. For purposes of this subdivision, "tobacco" means cigarettes, cigars, chewing or
87.12pipe tobacco, or any other item that contains tobacco. For purposes of this subdivision,
87.13"dietary supplements" means any product, other than tobacco, intended to supplement the
87.14diet that:
87.15(1) contains one or more of the following dietary ingredients:
87.16(i) a vitamin;
87.17(ii) a mineral;
87.18(iii) an herb or other botanical;
87.19(iv) an amino acid;
87.20(v) a dietary substance for use by humans to supplement the diet by increasing the total
87.21dietary intake; and
87.22(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
87.23described in items (i) to (v);
87.24(2) is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form,
87.25or if not intended for ingestion in such form, is not represented as conventional food and is
87.26not represented for use as a sole item of a meal or of the diet; and
87.27(3) is required to be labeled as a dietary supplement, identifiable by the supplement facts
87.28box found on the label and as required pursuant to Code of Federal Regulations, title 21,
87.29section 101.36.

87.30    Sec. 10. Minnesota Statutes 2016, section 297A.67, subdivision 4, is amended to read:
87.31    Subd. 4. Exempt meals at residential facilities. Prepared food, candy, and soft drinks
87.32served to patients, inmates, or persons residing at hospitals, sanitariums, nursing homes,
88.1senior citizen homes, and correctional, detention, and detoxification facilities are exempt.
88.2Taxable food sold through vending machines is not exempt.
88.3EFFECTIVE DATE.This section is effective for sales and purchases made after June
88.430, 2017.

88.5    Sec. 11. Minnesota Statutes 2016, section 297A.67, subdivision 5, is amended to read:
88.6    Subd. 5. Exempt meals at schools. Prepared food, candy, and soft drinks served at
88.7public and private elementary, middle, or secondary schools as defined in section 120A.05
88.8are exempt. Prepared food, candy, and soft drinks served to students at a college, university,
88.9or private career school under a board contract are exempt. Taxable food sold through
88.10vending machines is not exempt.
88.11EFFECTIVE DATE.This section is effective for sales and purchases made after June
88.1230, 2017.

88.13    Sec. 12. Minnesota Statutes 2016, section 297A.67, subdivision 6, is amended to read:
88.14    Subd. 6. Other exempt meals. (a) Prepared food, candy, and soft drinks purchased for
88.15and served exclusively to individuals who are 60 years of age or over and their spouses or
88.16to disabled persons and their spouses by governmental agencies, nonprofit organizations,
88.17or churches, or pursuant to any program funded in whole or in part through United States
88.18Code, title 42, sections 3001 through 3045, wherever delivered, prepared, or served, are
88.19exempt. Taxable food sold through vending machines is not exempt.
88.20(b) Prepared food, candy, and soft drinks purchased for and served exclusively to children
88.21who are less than 14 years of age or disabled children who are less than 16 years of age and
88.22who are attending a child care or early childhood education program, are exempt if they
88.23are:
88.24(1) purchased by a nonprofit child care facility that is exempt under section 297A.70,
88.25subdivision 4 , and that primarily serves families with income of 250 percent or less of
88.26federal poverty guidelines; and
88.27(2) prepared at the site of the child care facility.
88.28EFFECTIVE DATE.This section is effective for sales and purchases made after June
88.2930, 2017.

89.1    Sec. 13. Minnesota Statutes 2016, section 297A.67, is amended by adding a subdivision
89.2to read:
89.3    Subd. 34. Precious metal bullion and bullion coin. (a) Precious metal bullion and
89.4bullion coin is exempt. For purposes of this subdivision, "precious metal bullion" means
89.5bars or rounds that consist of 99.9 percent or more by weight of either gold, silver platinum,
89.6or palladium and are marked with weight, purity, and content. For purposes of this
89.7subdivision, "bullion coin" means only the following coins:
89.8(1) gold, silver, or platinum American eagle;
89.9(2) gold American buffalo;
89.10(3) silver Australian koala;
89.11(4) silver Australian kookaburra;
89.12(5) gold or silver Austrian philharmonic;
89.13(6) gold or silver British britannia;
89.14(7) gold British sovereign;
89.15(8) gold, silver, platinum, or palladium Canadian maple leaf;
89.16(9) palladium Isle of Man noble;
89.17(10) gold or silver Chinese panda;
89.18(11) gold or silver Mexican libertad or peso;
89.19(12) gold South African krugerrand;
89.20(13) gold French, Swiss, or Belgian 20 francs; and
89.21(14) junk United States silver coins issued before 1965 that are at least 90 percent silver.
89.22(b) The intent of this subdivision is to eliminate the difference in tax treatment between
89.23the sale of precious metal bullion and the sale of stock, bullion ETFs, bonds, and other
89.24investment instruments.
89.25EFFECTIVE DATE.This section is effective for sales and purchases made after June
89.2630, 2017.

90.1    Sec. 14. Minnesota Statutes 2016, section 297A.70, is amended by adding a subdivision
90.2to read:
90.3    Subd. 11a. Minnesota State High School League tickets and admissions. Tickets and
90.4admissions to games, events, and activities sponsored by the Minnesota State High School
90.5League under chapter 128C are exempt.
90.6EFFECTIVE DATE.This section is effective for sales and purchases made after June
90.730, 2017, and before July 1, 2027.

90.8    Sec. 15. Minnesota Statutes 2016, section 297A.70, subdivision 14, is amended to read:
90.9    Subd. 14. Fund-raising events sponsored by nonprofit groups. (a) Sales of tangible
90.10personal property or services at, and admission charges for fund-raising events sponsored
90.11by, a nonprofit organization are exempt if:
90.12(1) all gross receipts are recorded as such, in accordance with generally accepted
90.13accounting practices, on the books of the nonprofit organization; and
90.14(2) the entire proceeds, less the necessary expenses for the event, will be used solely
90.15and exclusively for charitable, religious, or educational purposes. Exempt sales include the
90.16sale of prepared food, candy, and soft drinks at the fund-raising event.
90.17(b) This exemption is limited in the following manner:
90.18(1) it does not apply to admission charges for events involving bingo or other gambling
90.19activities or to charges for use of amusement devices involving bingo or other gambling
90.20activities;
90.21(2) all gross receipts are taxable if the profits are not used solely and exclusively for
90.22charitable, religious, or educational purposes;
90.23(3) it does not apply unless the organization keeps a separate accounting record, including
90.24receipts and disbursements from each fund-raising event that documents all deductions from
90.25gross receipts with receipts and other records;
90.26(4) it does not apply to any sale made by or in the name of a nonprofit corporation as
90.27the active or passive agent of a person that is not a nonprofit corporation;
90.28(5) all gross receipts are taxable if fund-raising events exceed 24 days per year; and
90.29(6) it does not apply to fund-raising events conducted on premises leased for more than
90.30five days but less than 30 days; and
91.1(7) it does not apply if the risk of the event is not borne by the nonprofit organization
91.2and the benefit to the nonprofit organization is less than the total amount of the state and
91.3local tax revenues forgone by this exemption.
91.4(c) For purposes of this subdivision, a "nonprofit organization" means any unit of
91.5government, corporation, society, association, foundation, or institution organized and
91.6operated for charitable, religious, educational, civic, fraternal, and senior citizens' or veterans'
91.7purposes, no part of the net earnings of which inures to the benefit of a private individual.
91.8(d) For purposes of this subdivision, "fund-raising events" means activities of limited
91.9duration, not regularly carried out in the normal course of business, that attract patrons for
91.10community, social, and entertainment purposes, such as auctions, bake sales, ice cream
91.11socials, block parties, carnivals, competitions, concerts, concession stands, craft sales,
91.12bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion shows, festivals,
91.13galas, special event workshops, sporting activities such as marathons and tournaments, and
91.14similar events. Fund-raising events do not include the operation of a regular place of business
91.15in which services are provided or sales are made during regular hours such as bookstores,
91.16thrift stores, gift shops, restaurants, ongoing Internet sales, regularly scheduled classes, or
91.17other activities carried out in the normal course of business.
91.18EFFECTIVE DATE.This section is effective for sales and purchases made after June
91.1930, 2017.

91.20    Sec. 16. Minnesota Statutes 2016, section 297A.71, subdivision 44, is amended to read:
91.21    Subd. 44. Building materials, capital projects. (a) Materials and supplies used or
91.22consumed in and equipment incorporated into the construction or improvement of a capital
91.23project funded partially or wholly under section 297A.9905 are exempt, provided that the
91.24project has a total construction cost of at least $40,000,000 within a 24-month period.
91.25(b) Materials and supplies used or consumed in and equipment incorporated into the
91.26construction, remodeling, expansion, or improvement of an ice arena or other buildings or
91.27facilities owned and operated by the city of Plymouth are exempt. For purposes of this
91.28subdivision, "facilities" include municipal streets and facilities associated with streets
91.29including but not limited to lighting, curbs and gutters, and sidewalks. The total amount of
91.30refund on all building materials, supplies, and equipment that the city may apply for under
91.31this paragraph is $2,500,000.
92.1(c) The tax on purchases exempt under this provision must be imposed and collected as
92.2if the rate under section 297A.62, subdivision 1, applied and then refunded in the manner
92.3provided in section 297A.75.
92.4EFFECTIVE DATE.This section is effective retroactively for sales and purchases
92.5made after January 1, 2015.

92.6    Sec. 17. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision
92.7to read:
92.8    Subd. 49. Properties destroyed by fire. Building materials and supplies used in, and
92.9equipment incorporated into, the construction or replacement of real property that is located
92.10in Madelia affected by the fire on February 3, 2016, are exempt. The tax must be imposed
92.11and collected as if the rate under section 297A.62, subdivision 1, applied and then refunded
92.12in the manner provided in section 297A.75.
92.13EFFECTIVE DATE.This section is effective retroactively for sales and purchases
92.14made after December 31, 2015, and before July 1, 2018.

92.15    Sec. 18. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision
92.16to read:
92.17    Subd. 50. Properties destroyed by fire. (a) Building materials and supplies used in,
92.18and equipment incorporated into, the construction or replacement of real property that is
92.19located in Melrose affected by the fire on September 8, 2016, are exempt.
92.20(b) For sales and purchases made after September 30, 2016, and before July 1, 2017,
92.21the tax must be imposed and collected as if the rate under section 297A.62, subdivision 1,
92.22applied and then refunded in the manner provided in section 297A.75.
92.23EFFECTIVE DATE.Paragraph (a) is effective retroactively for sales and purchases
92.24made after September 30, 2016, and before January 1, 2019. Paragraph (b) is effective for
92.25sales and purchases made after September 30, 2016, and before July 1, 2017.

92.26    Sec. 19. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision
92.27to read:
92.28    Subd. 51. Building materials; Major League Soccer stadium. Materials and supplies
92.29used or consumed in, and equipment incorporated into, the construction of a Major League
92.30Soccer stadium and related infrastructure constructed in the city of St. Paul are exempt.
93.1This subdivision expires one year after the date that the first Major League Soccer game is
93.2played in the stadium.
93.3EFFECTIVE DATE.This section is effective for sales and purchases made after the
93.4day following final enactment.

93.5    Sec. 20. Minnesota Statutes 2016, section 297A.75, subdivision 1, is amended to read:
93.6    Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the following
93.7exempt items must be imposed and collected as if the sale were taxable and the rate under
93.8section 297A.62, subdivision 1, applied. The exempt items include:
93.9    (1) building materials for an agricultural processing facility exempt under section
93.10297A.71, subdivision 13 ;
93.11    (2) building materials for mineral production facilities exempt under section 297A.71,
93.12subdivision 14 ;
93.13    (3) building materials for correctional facilities under section 297A.71, subdivision 3;
93.14    (4) building materials used in a residence for disabled veterans exempt under section
93.15297A.71, subdivision 11 ;
93.16    (5) elevators and building materials exempt under section 297A.71, subdivision 12;
93.17    (6) materials and supplies for qualified low-income housing under section 297A.71,
93.18subdivision 23 ;
93.19    (7) materials, supplies, and equipment for municipal electric utility facilities under
93.20section 297A.71, subdivision 35;
93.21    (8) equipment and materials used for the generation, transmission, and distribution of
93.22electrical energy and an aerial camera package exempt under section 297A.68, subdivision
93.2337;
93.24    (9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph
93.25(a), clause (10);
93.26    (10) materials, supplies, and equipment for construction or improvement of projects and
93.27facilities under section 297A.71, subdivision 40;
93.28(11) materials, supplies, and equipment for construction, improvement, or expansion
93.29of:
93.30(i) an aerospace defense manufacturing facility exempt under section 297A.71,
93.31subdivision 42 ;
94.1(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision
94.245 ;
94.3(iii) a research and development facility exempt under section 297A.71, subdivision 46;
94.4and
94.5(iv) an industrial measurement manufacturing and controls facility exempt under section
94.6297A.71, subdivision 47 ;
94.7(12) enterprise information technology equipment and computer software for use in a
94.8qualified data center exempt under section 297A.68, subdivision 42;
94.9(13) materials, supplies, and equipment for qualifying capital projects under section
94.10297A.71, subdivision 44 ;
94.11(14) items purchased for use in providing critical access dental services exempt under
94.12section 297A.70, subdivision 7, paragraph (c); and
94.13(15) items and services purchased under a business subsidy agreement for use or
94.14consumption primarily in greater Minnesota exempt under section 297A.68, subdivision
94.1544 ;
94.16(16) building materials, equipment, and supplies for constructing or replacing real
94.17property exempt under section 297A.71, subdivision 49; and
94.18(17) building materials, equipment, and supplies for constructing or replacing real
94.19property exempt under section 297A.71, subdivision 50.
94.20EFFECTIVE DATE.(a) Clause (16) is effective retroactively for sales and purchases
94.21made after December 31, 2015.
94.22(b) Clause (17) is effective retroactively for sales and purchases made after September
94.2330, 2016.

94.24    Sec. 21. Minnesota Statutes 2016, section 297A.75, subdivision 2, is amended to read:
94.25    Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the
94.26commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must
94.27be paid to the applicant. Only the following persons may apply for the refund:
94.28    (1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;
94.29    (2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;
94.30    (3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
94.31provided in United States Code, title 38, chapter 21;
95.1    (4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
95.2property;
95.3    (5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;
95.4    (6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a
95.5joint venture of municipal electric utilities;
95.6    (7) for subdivision 1, clauses (8), (11), (12), and (15), the owner of the qualifying
95.7business; and
95.8    (8) for subdivision 1, clauses (9), (10), and (13), the applicant must be the governmental
95.9entity that owns or contracts for the project or facility;
95.10    (9) for subdivision 1, clause (16), the applicant must be the owner or developer of the
95.11building or project; and
95.12    (10) for subdivision 1, clause (17), the applicant must be the owner or developer of the
95.13building or project..
95.14EFFECTIVE DATE.(a) Clause (9) is effective retroactively for sales and purchases
95.15made after December 31, 2015.
95.16(b) Clause (10) is effective retroactively for sales and purchases made after September
95.1730, 2016.

95.18    Sec. 22. Minnesota Statutes 2016, section 297A.75, subdivision 3, is amended to read:
95.19    Subd. 3. Application. (a) The application must include sufficient information to permit
95.20the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor,
95.21or builder, under subdivision 1, clauses (3) to (13), or (15), (16), and (17), the contractor,
95.22subcontractor, or builder must furnish to the refund applicant a statement including the cost
95.23of the exempt items and the taxes paid on the items unless otherwise specifically provided
95.24by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to refunds under
95.25this section.
95.26    (b) An applicant may not file more than two applications per calendar year for refunds
95.27for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
95.28EFFECTIVE DATE.This section is effective the day following final enactment.

96.1    Sec. 23. EXEMPTION FROM JOB EXPANSION PROGRAM PROVISIONS.
96.2(a) Notwithstanding the seven-year certification period under Minnesota Statutes, section
96.3116J.8738, subdivision 3, the certification period for an eligible wholesale electronic
96.4component distribution center investing a minimum of $200,000,000 and constructing a
96.5facility at least 700,000 square feet in size is effective for the ten-year period beginning on
96.6the first day of the calendar month immediately following the date that the commissioner
96.7informs the business of the award of the benefit.
96.8(b) Notwithstanding the sales tax exemption limitations under Minnesota Statutes, section
96.9116J.8738, subdivision 4, the sales tax exemption for an eligible electronic wholesale
96.10component distribution center investing a minimum of $200,000,000 and constructing a
96.11facility at least 700,000 square feet in size may be authorized up to $5,000,000 annually
96.12and up to $40,000,000 during the total period of the agreement.

96.13    Sec. 24. SEVERABILITY.
96.14If any provision of sections 5 to 8 or the application thereof is held invalid, such invalidity
96.15shall not affect the provisions or applications of the sections that can be given effect without
96.16the invalid provisions or applications.
96.17EFFECTIVE DATE.This section is effective the day following final enactment.

96.18    Sec. 25. EFFECTIVE DATE.
96.19(a) The provisions of sections 5 to 8 are effective at the earlier of:
96.20(1) a decision by the United States Supreme Court modifying its decision in Quill Corp.
96.21v. North Dakota, 504 U.S. 298 (1992) so that a state may require retailers without a physical
96.22presence in the state to collect and remit sales tax; or
96.23(2) July 1, 2018.
96.24(b) Notwithstanding paragraph (a) or the provisions of sections 5 to 8, if a federal law
96.25is enacted authorizing a state to impose a requirement to collect and remit sales tax on
96.26retailers without a physical presence in the state, the commissioner must enforce the
96.27provisions of this section and sections 5 to 8 to the extent allowed under federal law.
96.28(c) The commissioner of revenue shall notify the revisor of statutes when either of the
96.29provisions in paragraph (a) or (b) apply.

97.1ARTICLE 4

97.2PROPERTY TAX: AIDS AND CREDITS

97.3    Section 1. Minnesota Statutes 2016, section 123B.53, subdivision 4, is amended to read:
97.4    Subd. 4. Debt service equalization revenue. (a) The debt service equalization revenue
97.5of a district equals the sum of the first tier debt service equalization revenue and the second
97.6tier debt service equalization revenue.
97.7    (b) The first tier debt service equalization revenue of a district equals the greater of zero
97.8or the eligible debt service revenue minus the amount raised by a levy of 15.74 percent the
97.9first tier initial effort rate times the adjusted net tax capacity of the district minus the second
97.10tier debt service equalization revenue of the district.
97.11    (c) The second tier debt service equalization revenue of a district equals the greater of
97.12zero or the eligible debt service revenue, minus the amount raised by a levy of 26.24 percent
97.13times the adjusted net tax capacity of the district.
97.14(d) The first tier initial effort rate for taxes payable in 2018 is ten percent. The initial
97.15effort rate for taxes payable in 2019 and later is 15.74 percent.
97.16EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.

97.17    Sec. 2. Minnesota Statutes 2016, section 123B.53, subdivision 5, is amended to read:
97.18    Subd. 5. Equalized debt service levy. (a) The equalized debt service levy of a district
97.19equals the sum of the first tier equalized debt service levy and the second tier equalized debt
97.20service levy.
97.21(b) A district's first tier equalized debt service levy equals the district's first tier debt
97.22service equalization revenue times the lesser of one or the ratio of:
97.23(1) the quotient derived by dividing the adjusted net tax capacity of the district for the
97.24year before the year the levy is certified by the adjusted pupil units in the district for the
97.25school year ending in the year prior to the year the levy is certified; to
97.26(2) $3,400 in fiscal year 2016, $4,430 in fiscal year 2017, and the greater of $4,430 or
97.2755.33 percent of the initial equalizing factor in fiscal year 2018 and later, 75 percent of the
97.28initial equalizing factor in fiscal year 2019, and 55.33 percent of the initial equalizing factor
97.29in fiscal year 2020 and later.
97.30(c) A district's second tier equalized debt service levy equals the district's second tier
97.31debt service equalization revenue times the lesser of one or the ratio of:
98.1(1) the quotient derived by dividing the adjusted net tax capacity of the district for the
98.2year before the year the levy is certified by the adjusted pupil units in the district for the
98.3school year ending in the year prior to the year the levy is certified; to
98.4(2) $8,000 in fiscal years 2016 and 2017, and the greater of $8,000 or 100 percent of
98.5the initial equalizing factor in fiscal year 2018 and later.
98.6(d) For the purposes of this subdivision, the initial equalizing factor equals the quotient
98.7derived by dividing the total adjusted net tax capacity of all school districts in the state for
98.8the year before the year the levy is certified by the total number of adjusted pupil units in
98.9all school districts in the state in the year before the year the levy is certified.
98.10EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.

98.11    Sec. 3. Minnesota Statutes 2016, section 126C.17, subdivision 6, is amended to read:
98.12    Subd. 6. Referendum equalization levy. (a) A district's referendum equalization levy
98.13equals the sum of the first tier referendum equalization levy, the second tier referendum
98.14equalization levy, and the third tier referendum equalization levy.
98.15(b) A district's first tier referendum equalization levy equals the district's first tier
98.16referendum equalization revenue times the lesser of one or the ratio of the district's
98.17referendum market value per resident pupil unit to $880,000 $950,000.
98.18(c) A district's second tier referendum equalization levy equals the district's second tier
98.19referendum equalization revenue times the lesser of one or the ratio of the district's
98.20referendum market value per resident pupil unit to $510,000 $611,000.
98.21(d) A district's third tier referendum equalization levy equals the district's third tier
98.22referendum equalization revenue times the lesser of one or the ratio of the district's
98.23referendum market value per resident pupil unit to $290,000.
98.24EFFECTIVE DATE.This section is effective for taxes payable in 2018 and later.

98.25    Sec. 4. Minnesota Statutes 2016, section 127A.45, subdivision 10, is amended to read:
98.26    Subd. 10. Payments to school nonoperating funds. Each fiscal year state general fund
98.27payments for a district nonoperating fund must be made at the current year aid payment
98.28percentage of the estimated entitlement during the fiscal year of the entitlement. This amount
98.29shall be paid in 12 six equal monthly installments beginning in July. The amount of the
98.30actual entitlement, after adjustment for actual data, minus the payments made during the
98.31fiscal year of the entitlement must be paid prior to October 31 of the following school year.
99.1The commissioner may make advance payments of debt service equalization aid and
99.2state-paid tax credits for a district's debt service fund earlier than would occur under the
99.3preceding schedule if the district submits evidence showing a serious cash flow problem in
99.4the fund. The commissioner may make earlier payments during the year and, if necessary,
99.5increase the percent of the entitlement paid to reduce the cash flow problem.
99.6EFFECTIVE DATE.This section is effective beginning with fiscal year 2019.

99.7    Sec. 5. Minnesota Statutes 2016, section 127A.45, subdivision 13, is amended to read:
99.8    Subd. 13. Aid payment percentage. Except as provided in subdivisions 10, 11, 12, 12a,
99.9and 14, each fiscal year, all education aids and credits in this chapter and chapters 120A,
99.10120B, 121A, 122A, 123A, 123B, 124D, 124E, 125A, 125B, 126C, 134, and section 273.1392,
99.11shall be paid at the current year aid payment percentage of the estimated entitlement during
99.12the fiscal year of the entitlement. For the purposes of this subdivision, a district's estimated
99.13entitlement for special education aid under section 125A.76 for fiscal year 2014 and later
99.14equals 97.4 percent of the district's entitlement for the current fiscal year. The final adjustment
99.15payment, according to subdivision 9, must be the amount of the actual entitlement, after
99.16adjustment for actual data, minus the payments made during the fiscal year of the entitlement.
99.17EFFECTIVE DATE.This section is effective beginning with fiscal year 2019.

99.18    Sec. 6. [273.1387] SCHOOL BUILDING BOND AGRICULTURAL CREDIT.
99.19    Subdivision 1. Eligibility. All class 2a, 2b, and 2c property under section 273.13,
99.20subdivision 23, other than property consisting of the house, garage, and immediately
99.21surrounding one acre of land of an agricultural homestead, is eligible to receive the credit
99.22under this section.
99.23    Subd. 2. Credit amount. For each qualifying property, the school building bond
99.24agricultural credit is equal to 40 percent of the property's eligible net tax capacity multiplied
99.25by the school debt tax rate determined under section 275.08, subdivision 1b.
99.26    Subd. 3. Credit reimbursements. The county auditor shall determine the tax reductions
99.27allowed under this section within the county for each taxes payable year and shall certify
99.28that amount to the commissioner of revenue as a part of the abstracts of tax lists submitted
99.29under section 275.29. Any prior year adjustments shall also be certified on the abstracts of
99.30tax lists. The commissioner shall review the certifications for accuracy, and may make such
99.31changes as are deemed necessary, or return the certification to the county auditor for
100.1correction. The credit under this section must be used to reduce the school district net tax
100.2capacity-based property tax as provided in section 273.1393.
100.3    Subd. 4. Payment. The commissioner of revenue shall certify the total of the tax
100.4reductions granted under this section for each taxes payable year within each school district
100.5to the commissioner of education who shall pay the reimbursement amounts to each school
100.6district as provided in section 273.1392.
100.7    Subd. 5. Appropriation. An amount sufficient to make the payments required by this
100.8section is annually appropriated from the general fund to the commissioner of education.
100.9EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

100.10    Sec. 7. Minnesota Statutes 2016, section 273.1392, is amended to read:
100.11273.1392 PAYMENT; SCHOOL DISTRICTS.
100.12The amounts of bovine tuberculosis credit reimbursements under section 273.113;
100.13conservation tax credits under section 273.119; disaster or emergency reimbursement under
100.14sections 273.1231 to 273.1235; homestead and agricultural credits under section sections
100.15273.1384 and 273.1387; aids and credits under section 273.1398; enterprise zone property
100.16credit payments under section 469.171; and metropolitan agricultural preserve reduction
100.17under section 473H.10 for school districts, shall be certified to the Department of Education
100.18by the Department of Revenue. The amounts so certified shall be paid according to section
100.19127A.45 , subdivisions 9, 10, and 13.
100.20EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

100.21    Sec. 8. Minnesota Statutes 2016, section 273.1393, is amended to read:
100.22273.1393 COMPUTATION OF NET PROPERTY TAXES.
100.23    Notwithstanding any other provisions to the contrary, "net" property taxes are determined
100.24by subtracting the credits in the order listed from the gross tax:
100.25    (1) disaster credit as provided in sections 273.1231 to 273.1235;
100.26    (2) powerline credit as provided in section 273.42;
100.27    (3) agricultural preserves credit as provided in section 473H.10;
100.28    (4) enterprise zone credit as provided in section 469.171;
100.29    (5) disparity reduction credit;
100.30    (6) conservation tax credit as provided in section 273.119;
101.1    (7) the school bond credit as provided in section 273.1387;
101.2    (8) agricultural credit as provided in section 273.1384;
101.3    (8) (9) taconite homestead credit as provided in section 273.135;
101.4    (9) (10) supplemental homestead credit as provided in section 273.1391; and
101.5    (10) (11) the bovine tuberculosis zone credit, as provided in section 273.113.
101.6    The combination of all property tax credits must not exceed the gross tax amount.
101.7EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

101.8    Sec. 9. Minnesota Statutes 2016, section 275.065, subdivision 3, is amended to read:
101.9    Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare and
101.10the county treasurer shall deliver after November 10 and on or before November 24 each
101.11year, by first class mail to each taxpayer at the address listed on the county's current year's
101.12assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer,
101.13the treasurer may send the notice in electronic form or by electronic mail instead of on paper
101.14or by ordinary mail.
101.15    (b) The commissioner of revenue shall prescribe the form of the notice.
101.16    (c) The notice must inform taxpayers that it contains the amount of property taxes each
101.17taxing authority proposes to collect for taxes payable the following year. In the case of a
101.18town, or in the case of the state general tax, the final tax amount will be its proposed tax.
101.19The notice must clearly state for each city that has a population over 500, county, school
101.20district, regional library authority established under section 134.201, and metropolitan taxing
101.21districts as defined in paragraph (i), the time and place of a meeting for each taxing authority
101.22in which the budget and levy will be discussed and public input allowed, prior to the final
101.23budget and levy determination. The taxing authorities must provide the county auditor with
101.24the information to be included in the notice on or before the time it certifies its proposed
101.25levy under subdivision 1. The public must be allowed to speak at that meeting, which must
101.26occur after November 24 and must not be held before 6:00 p.m. It must provide a telephone
101.27number for the taxing authority that taxpayers may call if they have questions related to the
101.28notice and an address where comments will be received by mail, except that no notice
101.29required under this section shall be interpreted as requiring the printing of a personal
101.30telephone number or address as the contact information for a taxing authority. If a taxing
101.31authority does not maintain public offices where telephone calls can be received by the
102.1authority, the authority may inform the county of the lack of a public telephone number and
102.2the county shall not list a telephone number for that taxing authority.
102.3    (d) The notice must state for each parcel:
102.4    (1) the market value of the property as determined under section 273.11, and used for
102.5computing property taxes payable in the following year and for taxes payable in the current
102.6year as each appears in the records of the county assessor on November 1 of the current
102.7year; and, in the case of residential property, whether the property is classified as homestead
102.8or nonhomestead. The notice must clearly inform taxpayers of the years to which the market
102.9values apply and that the values are final values;
102.10    (2) the items listed below, shown separately by county, city or town, and state general
102.11tax, agricultural homestead credit under section 273.1384, school building bond agricultural
102.12credit under section 273.1387, voter approved school levy, other local school levy, and the
102.13sum of the special taxing districts, and as a total of all taxing authorities:
102.14    (i) the actual tax for taxes payable in the current year; and
102.15    (ii) the proposed tax amount.
102.16    If the county levy under clause (2) includes an amount for a lake improvement district
102.17as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
102.18must be separately stated from the remaining county levy amount.
102.19    In the case of a town or the state general tax, the final tax shall also be its proposed tax
102.20unless the town changes its levy at a special town meeting under section 365.52. If a school
102.21district has certified under section 126C.17, subdivision 9, that a referendum will be held
102.22in the school district at the November general election, the county auditor must note next
102.23to the school district's proposed amount that a referendum is pending and that, if approved
102.24by the voters, the tax amount may be higher than shown on the notice. In the case of the
102.25city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately
102.26from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for
102.27the St. Paul Library Agency must be listed separately from the remaining amount of the
102.28city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be
102.29listed separately from the remaining amount of the county's levy. In the case of a parcel
102.30where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
102.31applies, the proposed tax levy on the captured value or the proposed tax levy on the tax
102.32capacity subject to the areawide tax must each be stated separately and not included in the
102.33sum of the special taxing districts; and
103.1    (3) the increase or decrease between the total taxes payable in the current year and the
103.2total proposed taxes, expressed as a percentage.
103.3    For purposes of this section, the amount of the tax on homesteads qualifying under the
103.4senior citizens' property tax deferral program under chapter 290B is the total amount of
103.5property tax before subtraction of the deferred property tax amount.
103.6    (e) The notice must clearly state that the proposed or final taxes do not include the
103.7following:
103.8    (1) special assessments;
103.9    (2) levies approved by the voters after the date the proposed taxes are certified, including
103.10bond referenda and school district levy referenda;
103.11    (3) a levy limit increase approved by the voters by the first Tuesday after the first Monday
103.12in November of the levy year as provided under section 275.73;
103.13    (4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
103.14after the date the proposed taxes are certified;
103.15    (5) amounts necessary to pay tort judgments against the taxing authority that become
103.16final after the date the proposed taxes are certified; and
103.17    (6) the contamination tax imposed on properties which received market value reductions
103.18for contamination.
103.19    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or the
103.20county treasurer to deliver the notice as required in this section does not invalidate the
103.21proposed or final tax levy or the taxes payable pursuant to the tax levy.
103.22    (g) If the notice the taxpayer receives under this section lists the property as
103.23nonhomestead, and satisfactory documentation is provided to the county assessor by the
103.24applicable deadline, and the property qualifies for the homestead classification in that
103.25assessment year, the assessor shall reclassify the property to homestead for taxes payable
103.26in the following year.
103.27    (h) In the case of class 4 residential property used as a residence for lease or rental
103.28periods of 30 days or more, the taxpayer must either:
103.29    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter,
103.30or lessee; or
103.31    (2) post a copy of the notice in a conspicuous place on the premises of the property.
104.1    The notice must be mailed or posted by the taxpayer by November 27 or within three
104.2days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer
104.3of the address of the taxpayer, agent, caretaker, or manager of the premises to which the
104.4notice must be mailed in order to fulfill the requirements of this paragraph.
104.5    (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
104.6districts" means the following taxing districts in the seven-county metropolitan area that
104.7levy a property tax for any of the specified purposes listed below:
104.8    (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
104.9473.521 , 473.547, or 473.834;
104.10    (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
104.11    (3) Metropolitan Mosquito Control Commission under section 473.711.
104.12    For purposes of this section, any levies made by the regional rail authorities in the county
104.13of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
104.14shall be included with the appropriate county's levy.
104.15    (j) The governing body of a county, city, or school district may, with the consent of the
104.16county board, include supplemental information with the statement of proposed property
104.17taxes about the impact of state aid increases or decreases on property tax increases or
104.18decreases and on the level of services provided in the affected jurisdiction. This supplemental
104.19information may include information for the following year, the current year, and for as
104.20many consecutive preceding years as deemed appropriate by the governing body of the
104.21county, city, or school district. It may include only information regarding:
104.22    (1) the impact of inflation as measured by the implicit price deflator for state and local
104.23government purchases;
104.24    (2) population growth and decline;
104.25    (3) state or federal government action; and
104.26    (4) other financial factors that affect the level of property taxation and local services
104.27that the governing body of the county, city, or school district may deem appropriate to
104.28include.
104.29    The information may be presented using tables, written narrative, and graphic
104.30representations and may contain instruction toward further sources of information or
104.31opportunity for comment.
104.32EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

105.1    Sec. 10. Minnesota Statutes 2016, section 275.07, subdivision 2, is amended to read:
105.2    Subd. 2. School district in more than one county levies; special requirements. (a) In
105.3school districts lying in more than one county, the clerk shall certify the tax levied to the
105.4auditor of the county in which the administrative offices of the school district are located.
105.5(b) The district must identify the portion of the school district levy that is levied for debt
105.6service at the time the levy is certified under this section. For the purposes of this paragraph,
105.7"levied for debt service" means levies authorized under sections 123B.53, 123B.535, and
105.8123B.55, as adjusted by sections 126C.46 and 126C.48, net of any debt excess levy reductions
105.9under section 475.61, subdivision 4, excluding debt service amounts necessary for repayment
105.10of other postemployment benefits under section 475.52, subdivision 6.
105.11EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

105.12    Sec. 11. Minnesota Statutes 2016, section 275.08, subdivision 1b, is amended to read:
105.13    Subd. 1b. Computation of tax rates. (a) The amounts certified to be levied against net
105.14tax capacity under section 275.07 by an individual local government unit shall be divided
105.15by the total net tax capacity of all taxable properties within the local government unit's
105.16taxing jurisdiction. The resulting ratio, the local government's local tax rate, multiplied by
105.17each property's net tax capacity shall be each property's net tax capacity tax for that local
105.18government unit before reduction by any credits.
105.19(b) The auditor must also determine the school debt tax rate for each school district equal
105.20to (1) the school debt service levy certified under section 275.07, subdivision 2, divided by
105.21(2) the total net tax capacity of all taxable property within the district.
105.22(c) Any amount certified to the county auditor to be levied against market value shall
105.23be divided by the total referendum market value of all taxable properties within the taxing
105.24district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by each
105.25property's referendum market value shall be each property's new referendum tax before
105.26reduction by any credits. For the purposes of this subdivision, "referendum market value"
105.27means the market value as defined in section 126C.01, subdivision 3.
105.28EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

105.29    Sec. 12. Minnesota Statutes 2016, section 276.04, subdivision 2, is amended to read:
105.30    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing of
105.31the tax statements. The commissioner of revenue shall prescribe the form of the property
105.32tax statement and its contents. The tax statement must not state or imply that property tax
106.1credits are paid by the state of Minnesota. The statement must contain a tabulated statement
106.2of the dollar amount due to each taxing authority and the amount of the state tax from the
106.3parcel of real property for which a particular tax statement is prepared. The dollar amounts
106.4attributable to the county, the state tax, the voter approved school tax, the other local school
106.5tax, the township or municipality, and the total of the metropolitan special taxing districts
106.6as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The
106.7amounts due all other special taxing districts, if any, may be aggregated except that any
106.8levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,
106.9Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly
106.10under the appropriate county's levy. If the county levy under this paragraph includes an
106.11amount for a lake improvement district as defined under sections 103B.501 to 103B.581,
106.12the amount attributable for that purpose must be separately stated from the remaining county
106.13levy amount. In the case of Ramsey County, if the county levy under this paragraph includes
106.14an amount for public library service under section 134.07, the amount attributable for that
106.15purpose may be separated from the remaining county levy amount. The amount of the tax
106.16on homesteads qualifying under the senior citizens' property tax deferral program under
106.17chapter 290B is the total amount of property tax before subtraction of the deferred property
106.18tax amount. The amount of the tax on contamination value imposed under sections 270.91
106.19to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar
106.20amount of any special assessments, may be rounded to the nearest even whole dollar. For
106.21purposes of this section whole odd-numbered dollars may be adjusted to the next higher
106.22even-numbered dollar. The amount of market value excluded under section 273.11,
106.23subdivision 16 , if any, must also be listed on the tax statement.
106.24    (b) The property tax statements for manufactured homes and sectional structures taxed
106.25as personal property shall contain the same information that is required on the tax statements
106.26for real property.
106.27    (c) Real and personal property tax statements must contain the following information
106.28in the order given in this paragraph. The information must contain the current year tax
106.29information in the right column with the corresponding information for the previous year
106.30in a column on the left:
106.31    (1) the property's estimated market value under section 273.11, subdivision 1;
106.32    (2) the property's homestead market value exclusion under section 273.13, subdivision
106.3335;
106.34    (3) the property's taxable market value under section 272.03, subdivision 15;
107.1    (4) the property's gross tax, before credits;
107.2    (5) for homestead agricultural properties, the credit credits under section sections
107.3273.1384 and 273.1387 ;
107.4    (6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
107.5273.1391 ; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit
107.6received under section 273.135 must be separately stated and identified as "taconite tax
107.7relief"; and
107.8    (7) the net tax payable in the manner required in paragraph (a).
107.9    (d) If the county uses envelopes for mailing property tax statements and if the county
107.10agrees, a taxing district may include a notice with the property tax statement notifying
107.11taxpayers when the taxing district will begin its budget deliberations for the current year,
107.12and encouraging taxpayers to attend the hearings. If the county allows notices to be included
107.13in the envelope containing the property tax statement, and if more than one taxing district
107.14relative to a given property decides to include a notice with the tax statement, the county
107.15treasurer or auditor must coordinate the process and may combine the information on a
107.16single announcement.
107.17EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

107.18    Sec. 13. Minnesota Statutes 2016, section 477A.011, subdivision 34, is amended to read:
107.19    Subd. 34. City revenue need. (a) For a city with a population equal to or greater than
107.2010,000, "city revenue need" is 1.15 times the sum of (1) 4.59 times the pre-1940 housing
107.21percentage; plus (2) 0.622 times the percent of housing built between 1940 and 1970; plus
107.22(3) 169.415 times the jobs per capita; plus (4) the sparsity adjustment; plus (5) 307.664.
107.23    (b) For a city with a population equal to or greater than 2,500 and less than 10,000, "city
107.24revenue need" is 1.15 times the sum of (1) 572.62; plus (2) 5.026 times the pre-1940 housing
107.25percentage; minus (3) 53.768 times household size; plus (4) 14.022 times peak population
107.26decline.
107.27    (c) For a city with a population less than 2,500, "city revenue need" is the sum of 410
107.28plus 0.367 times the city's population over 100. The city revenue need under this paragraph
107.29shall not exceed 630.
107.30    (d) For a city with a population of at least 2,500 but less than 3,000, the "city revenue
107.31need" equals (1) the transition factor times the city's revenue need calculated in paragraph
107.32(b); plus (2) 630 times the difference between one and the transition factor. For a city with
108.1a population of at least 10,000 but less than 10,500 11,000, the "city revenue need" equals
108.2(1) the transition factor times the city's revenue need calculated in paragraph (a); plus (2)
108.3the city's revenue need calculated under the formula in paragraph (b) times the difference
108.4between one and the transition factor. For purposes of the first sentence of this paragraph,
108.5"transition factor" is 0.2 percent times the amount that the city's population exceeds the
108.6minimum threshold in either of the first two sentences. For purposes of the second sentence
108.7of this paragraph, "transition factor" is 0.1 percent times the amount that the city's population
108.8exceeds the minimum threshold.
108.9    (e) The city revenue need cannot be less than zero.
108.10    (f) For calendar year 2015 and subsequent years, the city revenue need for a city, as
108.11determined in paragraphs (a) to (e), is multiplied by the ratio of the annual implicit price
108.12deflator for government consumption expenditures and gross investment for state and local
108.13governments as prepared by the United States Department of Commerce, for the most
108.14recently available year to the 2013 implicit price deflator for state and local government
108.15purchases.
108.16EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018
108.17and thereafter.

108.18    Sec. 14. [477A.0126] REIMBURSEMENT OF COUNTY AND TRIBES FOR
108.19CERTAIN OUT-OF-HOME PLACEMENT.
108.20    Subdivision 1. Definition. For purposes of this section, "out-of-home placement" means
108.2124-hour substitute care for an Indian child as defined by section 260C.007, subdivision 21,
108.22placed under chapter 260C and the Indian Child Welfare Act (ICWA), away from the child's
108.23parent or guardian and for whom the county social services agency or county correctional
108.24agency has been assigned responsibility for the child's placement and care, which includes
108.25placement in foster care under section 260C.007, subdivision 18, and a correctional facility
108.26pursuant to a court order.
108.27    Subd. 2. Determination of nonfederal share of costs. (a) By July 1, 2017, each county
108.28shall report the following information to the commissioners of human services and
108.29corrections: (1) the separate amounts paid out of the county's social service agency and its
108.30corrections budget for out-of-home placement of children under the ICWA in calendar years
108.312013, 2014, and 2015; and (2) the number of case days associated with the expenditures
108.32from each budget. The commissioner of human services shall prescribe the format of the
108.33report. By July 15, 2017, the commissioner of human services, in consultation with the
108.34commissioner of corrections, shall certify to the commissioner of revenue and to the
109.1legislative committees with jurisdiction over local government aids and out-of-home
109.2placement funding whether the data reported under this subdivision accurately reflect total
109.3expenditures by counties for out-of-home placement costs of children under the ICWA.
109.4(b) By January 1, 2018, and each January 1 thereafter, each county shall report to the
109.5commissioners of human services and corrections the separate amounts paid out of the
109.6county's social service agency and its corrections budget for out-of-home placement of
109.7children under the ICWA in the calendar years two years before the current calendar year
109.8along with the number of case days associated with the expenditures from each budget. The
109.9commissioner of human services shall prescribe the format of the report.
109.10(c) Until the commissioner of human services develops another mechanism for collecting
109.11and verifying data on out-of-home placements of children under the ICWA, and the
109.12legislature authorizes the use of that data, the data collected under this subdivision must be
109.13used to calculate payments under subdivision 3. The commissioner of human services shall
109.14certify the nonfederal out-of-home placement costs for the three prior calendar years for
109.15each county and the amount of any federal reimbursement received by a tribe under the
109.16ICWA for the three prior calendar years to the commissioner of revenue by June 1 of the
109.17year before the aid payment.
109.18    Subd. 3. Aid for counties. For aids payable in calendar year 2018 and thereafter, the
109.19amount of reimbursement to each county is a county's proportionate share of the appropriation
109.20in subdivision 6 that remains after the aid for tribes has been paid. Each county's
109.21proportionate share is based on the county's average nonfederal share of the cost for
109.22out-of-home placement of children under the ICWA for the three calendar years that were
109.23certified by the commissioner of human services by June 1 of the prior year, provided that
109.24the commissioner of human services, in consultation with the commissioner of corrections,
109.25certifies to the commissioner of revenue that accurate data are available to make the aid
109.26determination under this section. For aids payable in calendar year 2018, each county's
109.27proportionate share is based on the county's nonfederal share of the cost for out-of-home
109.28placement of children under the ICWA that was certified by the commissioner of human
109.29services by July 15, 2017.
109.30    Subd. 4. Aid for tribes. For aids payable in 2018 and thereafter, the amount of
109.31reimbursement to each tribe shall be the greater of (1) five percent of the average
109.32reimbursement amount received from the federal government for out-of-home placement
109.33costs for the three calendar years that were certified by June 1 of the prior year, or (2)
109.34$200,000.
110.1    Subd. 5. Payments. The commissioner of revenue must compute the amount of the
110.2reimbursement aid payable to each county and tribe under this section. On or before August
110.31 of each year, the commissioner shall certify the amount to be paid to each county and
110.4tribe in the following year. The commissioner shall pay reimbursement aid annually at the
110.5times provided in section 477A.015.
110.6    Subd. 6. Appropriation. $2,000,000 is annually appropriated to the commissioner of
110.7revenue from the general fund to pay aid under this section.
110.8EFFECTIVE DATE.This section is effective beginning with aids payable in 2018.

110.9    Sec. 15. Minnesota Statutes 2016, section 477A.013, subdivision 8, is amended to read:
110.10    Subd. 8. City formula aid. (a) For aids payable in 2015 2018 and thereafter, the formula
110.11aid for a city is equal to the sum of (1) its formula aid in the previous year and (2) the product
110.12of (i) (1) the difference between its unmet need and its formula certified aid in the previous
110.13year and before any aid adjustment under subdivision 13, and (ii) (2) the aid gap percentage.
110.14    (b) For aids payable in 2015 and thereafter, if a city's certified aid from the previous
110.15year is greater than the sum of its unmet need plus its aid adjustment under subdivision 13,
110.16its formula aid is adjusted to equal its unmet need.
110.17    (c) No city may have a formula aid amount less than zero. The aid gap percentage must
110.18be the same for all cities subject to paragraph (a).
110.19    (d) (b) The applicable aid gap percentage must be calculated by the Department of
110.20Revenue so that the total of the aid under subdivision 9 equals the total amount available
110.21for aid under section 477A.03. The aid gap percentage must be the same for all cities subject
110.22to paragraph (a). Data used in calculating aids to cities under sections 477A.011 to 477A.013
110.23shall be the most recently available data as of January 1 in the year in which the aid is
110.24calculated.
110.25EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018
110.26and thereafter.

110.27    Sec. 16. Minnesota Statutes 2016, section 477A.013, subdivision 9, is amended to read:
110.28    Subd. 9. City aid distribution. (a) In calendar year 2014 2018 and thereafter, each city
110.29if a city's certified aid before any aid adjustment under subdivision 13 for the previous year
110.30is less than its current unmet need, the city shall receive an aid distribution equal to the sum
110.31of (1) its certified aid in the previous year before any aid adjustment under subdivision 13,
111.1(2) the city formula aid under subdivision 8, and (2) (3) its aid adjustment under subdivision
111.213.
111.3    (b) For aids payable in 2015 2018 and thereafter, if a city's certified aid before any aid
111.4adjustment under subdivision 13 for the previous year is equal to or greater than its current
111.5unmet need, the total aid for a city must not be less than is equal to the greater of (1) its
111.6unmet need plus any aid adjustment under subdivision 13, or (2) the amount it was certified
111.7to receive in the previous year minus the lesser of $10 multiplied by its population, or five
111.8percent of its net levy in the year prior to the aid distribution. No city may have a total aid
111.9amount less than $0.
111.10EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018
111.11and thereafter.

111.12    Sec. 17. Minnesota Statutes 2016, section 477A.03, subdivision 2a, is amended to read:
111.13    Subd. 2a. Cities. The total aid paid under section 477A.013, subdivision 9, is
111.14$516,898,012 for aids payable in 2015. For aids payable in 2016 and thereafter 2017, the
111.15total aid paid under section 477A.013, subdivision 9, is $519,398,012. For aids payable in
111.162018, the total aid paid under section 477A.013, subdivision 9, is $531,398,012. For aids
111.17payable in 2019 and thereafter, the total aid paid under section 477A.013, subdivision 9, is
111.18$519,398,012.
111.19EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018
111.20and thereafter.

111.21    Sec. 18. Minnesota Statutes 2016, section 477A.03, subdivision 2b, is amended to read:
111.22    Subd. 2b. Counties. (a) For aids payable in 2014 and thereafter through 2017, the total
111.23aid payable under section 477A.0124, subdivision 3, is $100,795,000. For aids payable in
111.242018, the total aid payable under section 477A.0124, subdivision 3, is $106,795,000, of
111.25which $3,000,000 shall be allocated as required under Laws 2014, chapter 150, article 4,
111.26section 6. For aids payable in 2019 through 2024, the total aid payable under section
111.27477A.0124, subdivision 3, is $103,795,000 of which $3,000,000 shall be allocated as required
111.28under Laws 2014, chapter 150, article 4, section 6. For aids payable in 2025 and thereafter,
111.29the total aid payable under section 477A.0124, subdivision 3, is $100,795,000. Each calendar
111.30year, $500,000 of this appropriation shall be retained by the commissioner of revenue to
111.31make reimbursements to the commissioner of management and budget for payments made
111.32under section 611.27. The reimbursements shall be to defray the additional costs associated
111.33with court-ordered counsel under section 611.27. Any retained amounts not used for
112.1reimbursement in a year shall be included in the next distribution of county need aid that
112.2is certified to the county auditors for the purpose of property tax reduction for the next taxes
112.3payable year.
112.4    (b) For aids payable in 2014 and thereafter 2017, the total aid under section 477A.0124,
112.5subdivision 4 , is $104,909,575. For aids payable in 2018, the total aid payable under section
112.6477A.0124, subdivision 4, is $107,909,575. For aids payable in 2019 and thereafter, the
112.7total aid payable under section 477A.0124, subdivision 4, is $104,909,575. The commissioner
112.8of revenue shall transfer to the commissioner of management and budget $207,000 annually
112.9for the cost of preparation of local impact notes as required by section 3.987, and other local
112.10government activities. The commissioner of revenue shall transfer to the commissioner of
112.11education $7,000 annually for the cost of preparation of local impact notes for school districts
112.12as required by section 3.987. The commissioner of revenue shall deduct the amounts
112.13transferred under this paragraph from the appropriation under this paragraph. The amounts
112.14transferred are appropriated to the commissioner of management and budget and the
112.15commissioner of education respectively.
112.16EFFECTIVE DATE.This section is effective for aids payable in 2018 and thereafter.

112.17    Sec. 19. Minnesota Statutes 2016, section 477A.11, is amended by adding a subdivision
112.18to read:
112.19    Subd. 5a. Large forest easement value reduction. "Large forest easement value
112.20reduction" means the market value reduction due to a single forest for the future easement
112.21on land exceeding 60,000 acres that was acquired as provided in section 84.66.
112.22EFFECTIVE DATE.This section is effective retroactively for assessment year 2011
112.23and thereafter.

112.24    Sec. 20. Minnesota Statutes 2016, section 477A.12, subdivision 1, is amended to read:
112.25    Subdivision 1. Types of land; payments. The following amounts are annually
112.26appropriated to the commissioner of natural resources from the general fund for transfer to
112.27the commissioner of revenue. The commissioner of revenue shall pay the transferred funds
112.28to counties as required by sections 477A.11 to 477A.14. The amounts, based on the acreage
112.29as of July 1 of each year prior to the payment year, are:
112.30(1) $5.133 multiplied by the total number of acres of acquired natural resources land or,
112.31at the county's option three-fourths of one percent of the appraised value of all acquired
112.32natural resources land in the county, whichever is greater;
113.1(2) $5.133, multiplied by the total number of acres of transportation wetland or, at the
113.2county's option, three-fourths of one percent of the appraised value of all transportation
113.3wetland in the county, whichever is greater;
113.4(3) $5.133, multiplied by the total number of acres of wildlife management land, or, at
113.5the county's option, three-fourths of one percent of the appraised value of all wildlife
113.6management land in the county, whichever is greater;
113.7(4) $5.133, multiplied by the total number of acres of large forest easement land, or, at
113.8the county's option, three-fourths of one percent of the large forest easement value reduction
113.9in the county, whichever is greater;
113.10(4) (5) 50 percent of the dollar amount as determined under clause (1), multiplied by
113.11the number of acres of military refuge land in the county;
113.12(5) (6) $1.50 $2, multiplied by the number of acres of county-administered other natural
113.13resources land in the county;
113.14(6) (7) $5.133, multiplied by the total number of acres of land utilization project land in
113.15the county;
113.16(7) (8) $1.50 $2, multiplied by the number of acres of commissioner-administered other
113.17natural resources land in the county; and
113.18    (8) (9) without regard to acreage, and notwithstanding the rules adopted under section
113.1984A.55 , $300,000 for local assessments under section 84A.55, subdivision 9, that shall be
113.20divided and distributed to the counties containing state-owned lands within a conservation
113.21area in proportion to each county's percentage of the total annual ditch assessments.
113.22EFFECTIVE DATE.Clause (4) is effective retroactively for assessment year 2011
113.23and thereafter. Clauses (6) and (8) are effective for payments made in calendar year 2018
113.24and thereafter.

113.25    Sec. 21. Minnesota Statutes 2016, section 477A.12, subdivision 2, is amended to read:
113.26    Subd. 2. Procedure. (a) Each county auditor shall certify to the Department of Natural
113.27Resources during July of each year prior to the payment year: (1) the number of acres of
113.28county-administered other natural resources land within the county; and (2) the assessed
113.29value of large forest easement value reduction in the county. The Department of Natural
113.30resources may, in addition to the certification of acreage, require descriptive lists of land
113.31so certified. The commissioner of natural resources shall determine and certify to the
113.32commissioner of revenue by March 1 of the payment year:
114.1(1) the number of acres and most recent appraised value of acquired natural resources
114.2land, wildlife management land, and military refuge land within each county;
114.3(2) the number of acres of commissioner-administered natural resources land within
114.4each county;
114.5(3) the number of acres of county-administered other natural resources land within each
114.6county, based on the reports filed by each county auditor with the commissioner of natural
114.7resources; and
114.8(4) the number of acres of land utilization project land within each county.
114.9(b) The commissioner of transportation shall determine and certify to the commissioner
114.10of revenue by March 1 of the payment year the number of acres of transportation wetland
114.11and the appraised value of the land, but only if it exceeds 500 acres in a county.
114.12(c) Each auditor of a county that contains state-owned lands within a conservation area
114.13shall determine and certify to the commissioner of natural resources by May 31 of the
114.14payment year, the county's ditch assessments for state-owned lands subject to section 84A.55,
114.15subdivision 9 . A joint certification for two or more counties may be submitted to the
114.16commissioner of natural resources through the Consolidated Conservation Counties Joint
114.17Powers Board. The commissioner of natural resources shall certify the ditch assessments
114.18to the commissioner of revenue by June 15 of the payment year.
114.19(d) The commissioner of revenue shall determine the distributions provided for in this
114.20section using: (1) the number of acres and appraised values certified by the commissioner
114.21of natural resources and the commissioner of transportation by March 1 of the payment
114.22year; and (2) ditch assessments under paragraph (c), by July 15 of the payment year; and
114.23(3) the assessed value of large forest easement value reduction certified by the county auditor.
114.24EFFECTIVE DATE.This section is effective retroactively for assessment year 2011
114.25and thereafter.

114.26    Sec. 22. Minnesota Statutes 2016, section 477A.14, subdivision 3, is amended to read:
114.27    Subd. 3. Distribution for wildlife management lands and military refuge lands. (a)
114.28The county treasurer shall allocate the payment for wildlife management land, large forest
114.29easement value reduction, and military game refuge land among the county, towns, and
114.30school districts on the same basis as if the payments were taxes on the land received in the
114.31year. Payment of a town's or a school district's allocation must be made by the county
114.32treasurer to the town or school district within 30 days of receipt of the payment to the county.
114.33The county's share of the payment shall be deposited in the county general revenue fund.
115.1(b) The county treasurer of a county with a population over 39,000, but less than 42,000,
115.2in the 1950 federal census shall allocate the payment only among the towns and school
115.3districts on the same basis as if the payments were taxes on the lands received in the current
115.4year.
115.5(c) If a town received a payment in calendar year 2006 or thereafter under this subdivision,
115.6and subsequently incorporated as a city, the city shall continue to receive any future year's
115.7allocations of wildlife land payments that would have been made to the town had it not
115.8incorporated, provided that the payments shall terminate if the governing body of the city
115.9passes an ordinance that prohibits hunting within the boundaries of the city.
115.10EFFECTIVE DATE.This section is effective retroactively for assessment year 2011
115.11and thereafter.

115.12    Sec. 23. Minnesota Statutes 2016, section 477A.17, is amended to read:
115.13477A.17 LAKE VERMILION-SOUDAN UNDERGROUND MINE STATE PARK;
115.14ANNUAL PAYMENTS.
115.15    (a) In lieu of the payment amount provided under section 477A.12, subdivision 1, clause
115.16(1), the county shall receive an annual payment for state-owned land within the boundary
115.17of Lake Vermilion-Soudan Underground Mine State Park, established in section 85.012,
115.18subdivision 38a, equal to 1.5 percent of the appraised value of the state-owned land.
115.19    (b) For the purposes of this section, the appraised value of the land acquired for Lake
115.20Vermilion-Soudan Underground Mine State Park for the first five years after acquisition
115.21shall be the purchase price of the land, plus the value of any portion of the land that is
115.22acquired by donation. Thereafter, the appraised value of the state-owned land shall be as
115.23determined under section 477A.12, subdivision 3, except that the appraised value of the
115.24state-owned land within the park shall not be reduced below the 2010 appraised value of
115.25the land.
115.26    (c) The annual payments under this section shall be distributed to the taxing jurisdictions
115.27containing the property as follows: one-third to the school districts; one-third to the town;
115.28and one-third to the county. The payment to school districts is not a county apportionment
115.29under section 127A.34 and is not subject to aid recapture. Each of those taxing jurisdictions
115.30may use the payments for their general purposes.
115.31    (d) Except as provided in this section, the payments shall be made as provided in sections
115.32477A.11 to 477A.13.
115.33EFFECTIVE DATE.This section is effective beginning with aids payable in 2017.

116.1    Sec. 24. 2014 AID PENALTY FORGIVENESS.
116.2(a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities of
116.3Dundee, Jeffers, and Woodstock shall receive all of their calendar year 2014 aid payment
116.4that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided that
116.5the state auditor certifies to the commissioner of revenue that the city complied with all
116.6reporting requirements under Minnesota Statutes, section 477A.017, subdivision 3, for
116.7calendar years 2013 and 2014 by June 1, 2015.
116.8(b) The commissioner of revenue shall make payment to each city no later than July 20,
116.92017. Up to $101,570 in fiscal year 2018 is appropriated from the general fund to the
116.10commissioner of revenue to make the payments under this section.
116.11EFFECTIVE DATE.This section is effective the day following final enactment.

116.12    Sec. 25. BASE YEAR FORMULA AID FOR NEWLY INCORPORATED CITY.
116.13For a city that incorporated on October 13, 2015, and first qualifies for aid under
116.14Minnesota Statutes, section 477A.013, subdivisions 8 and 9, in 2017, the city's formula aid
116.15for 2016, used in calculating aid payable in 2017, shall be deemed to equal $115 multiplied
116.16by its population.
116.17EFFECTIVE DATE.This section is effective for aids payable in 2017. The 2017 aid
116.18payment under section 477A.013, subdivision 9, for a city that qualifies under this section
116.19shall be recalculated based on this section. The increase shall be treated as an aid correction
116.20under Minnesota Statutes, section 477A.014, subdivision 3.

116.21    Sec. 26. 2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO.
116.22Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Oslo
116.23shall receive the portion of its aid payment for calendar year 2013 under Minnesota Statutes,
116.24section 477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision
116.253, provided that the state auditor certifies to the commissioner of revenue that it received
116.26audited financial statements from the city for calendar year 2012 by December 31, 2013.
116.27The commissioner of revenue shall make a payment of $37,473.50 with the first payment
116.28of aids under Minnesota Statutes, section 477A.015. $37,473.50 is appropriated from the
116.29general fund to the commissioner of revenue in fiscal year 2018 to make this payment.
116.30EFFECTIVE DATE.This section is effective the day following final enactment.

117.1    Sec. 27. APPROPRIATION; DEBT SERVICE EQUALIZATION AID.
117.2For fiscal year 2019 only, $14,182,000 is appropriated from the general fund to the
117.3Department of Education for debt service aid under Minnesota Statutes, section 123B.53.
117.4This amount is in addition to other appropriations for the same purpose.

117.5    Sec. 28. APPROPRIATION; FIRE REMEDIATION GRANTS.
117.6$1,392,258 is appropriated in fiscal year 2018 from the general fund to the commissioner
117.7of public safety for grants to remediate the effects of fires in the city of Melrose on September
117.88, 2016. The commissioner must allocate the grants as follows:
117.9(1) $1,296,458 to the city of Melrose; and
117.10(2) $95,800 to Stearns County.
117.11A grant recipient must use the money appropriated under this section for remediation
117.12costs, including disaster recovery, infrastructure, reimbursement for emergency personnel
117.13costs, reimbursement for equipment costs, and reimbursements for property tax abatements,
117.14incurred by public or private entities as a result of the fires. This is a onetime appropriation
117.15and is available until June 30, 2018.
117.16EFFECTIVE DATE.This section is effective the day following final enactment.

117.17    Sec. 29. APPROPRIATION.
117.18For fiscal year 2019, $28,827,000 is appropriated from the general fund to the
117.19commissioner of education for additional referendum equalization aid under Minnesota
117.20Statutes, section 126C.17, subdivision 7. This amount is in addition to other appropriations
117.21for the same purpose.

117.22    Sec. 30. AID REDUCTIONS.
117.23(a) Notwithstanding any law to the contrary, for aids payable in 2018 and thereafter,
117.24under Minnesota Statutes, section 477A.013, the total aid payable to the city of Minneapolis
117.25shall be $50,000,000.
117.26(b) The total appropriation under section 477A.03, subdivision 2a, shall be reduced by
117.27$28,827,000 for aids payable in 2018 and thereafter.
117.28EFFECTIVE DATE.This section is effective for aids payable in 2018 and thereafter.

118.1ARTICLE 5

118.2LOCAL OPTION SALES AND SPECIAL TAXES

118.3    Section 1. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991,
118.4chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws 2003,
118.5First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154, article 5,
118.6section 2, and Laws 2014, chapter 308, article 3, section 21, is amended to read:
118.7    Subd. 2. (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law,
118.8ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance,
118.9impose an additional sales tax of up to one and three-quarter percent on sales transactions
118.10which are described in Minnesota Statutes 2000, section 297A.01, subdivision 3, clause (c).
118.11The imposition of this tax shall not be subject to voter referendum under either state law or
118.12city charter provisions. When the city council determines that the taxes imposed under this
118.13paragraph at a rate of three-quarters of one percent and other sources of revenue produce
118.14revenue sufficient to pay debt service on bonds in the principal amount of $40,285,000 plus
118.15issuance and discount costs, issued for capital improvements at the Duluth Entertainment
118.16and Convention Center, which include a new arena, the rate of tax under this subdivision
118.17must be reduced by three-quarters of one percent.
118.18(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section
118.19477A.016 , or any other law, ordinance, or city charter provision to the contrary, the city of
118.20Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent
118.21on sales transactions which are described in Minnesota Statutes 2000, section 297A.01,
118.22subdivision 3, clause (c). This tax expires when the city council determines that the tax
118.23imposed under this paragraph, along with the tax imposed under section 22, paragraph (b),
118.24has produced revenues sufficient to pay the debt service on bonds in a principal amount of
118.25no more than $18,000,000, plus issuance and discount costs, to finance capital improvements
118.26to public facilities to support tourism and recreational activities in that portion of the city
118.27west of 34th 14th Avenue West and the area south of and including Skyline Parkway.
118.28(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation bonds
118.29under Minnesota Statutes, chapter 475, plus an additional amount to pay for the costs of
118.30issuance and any premiums. The proceeds may be used to finance capital improvements to
118.31public facilities that support tourism and recreational activities in the portion of the city
118.32west of 34th 14th Avenue West and the area south of and including Skyline Parkway, as
118.33described in paragraph (b). The issuance of the bonds is subject to the provisions of
118.34Minnesota Statutes, chapter 475, except no election shall be required unless required by the
119.1city charter. The bonds shall not be included in computing net debt. The revenues from the
119.2taxes that the city of Duluth may impose under paragraph (b) and under section 22, paragraph
119.3(b), may be pledged to pay principal of and interest on such bonds.
119.4EFFECTIVE DATE.This section is effective the day after the governing body of the
119.5city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021,
119.6subdivisions 2 and 3.

119.7    Sec. 2. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, article
119.88, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12, and Laws
119.92014, chapter 308, article 3, section 22, is amended to read:
119.10    Sec. 22. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND MOTELS.
119.11    (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, or ordinance,
119.12or city charter provision to the contrary, the city of Duluth may, by ordinance, impose an
119.13additional tax of one percent upon the gross receipts from the sale of lodging for periods of
119.14less than 30 days in hotels and motels located in the city. The tax shall be collected in the
119.15same manner as the tax set forth in the Duluth city charter, section 54(d), paragraph one.
119.16The imposition of this tax shall not be subject to voter referendum under either state law or
119.17city charter provisions.
119.18(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section
119.19477A.016 , or any other law, ordinance, or city charter provision to the contrary, the city of
119.20Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent
119.21on the gross receipts from the sale of lodging for periods of less than 30 days in hotels and
119.22motels located in the city. This tax expires when the city council first determines that the
119.23tax imposed under this paragraph, along with the tax imposed under section 21, paragraph
119.24(b), has produced revenues sufficient to pay the debt service on bonds in a principal amount
119.25of no more than $18,000,000, plus issuance and discount costs, to finance capital
119.26improvements to public facilities to support tourism and recreational activities in that portion
119.27of the city west of 34th 14th Avenue West and the area south of and including Skyline
119.28Parkway.
119.29EFFECTIVE DATE.This section is effective the day after the governing body of the
119.30city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021,
119.31subdivisions 2 and 3.

120.1    Sec. 3. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by Laws
120.21998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section 9, and
120.3Laws 2009, chapter 88, article 4, section 14, is amended to read:
120.4    Subd. 3. Use of revenues. (a) Revenues received from taxes authorized by subdivisions
120.51 and 2 shall be used by the city to pay the cost of collecting the tax and to pay all or a
120.6portion of the expenses of constructing and improving facilities as part of an urban
120.7revitalization project in downtown Mankato known as Riverfront 2000. Authorized expenses
120.8include, but are not limited to, acquiring property and paying relocation expenses related
120.9to the development of Riverfront 2000 and related facilities, and securing or paying debt
120.10service on bonds or other obligations issued to finance the construction of Riverfront 2000
120.11and related facilities. For purposes of this section, "Riverfront 2000 and related facilities"
120.12means a civic-convention center, an arena, a riverfront park, a technology center and related
120.13educational facilities, and all publicly owned real or personal property that the governing
120.14body of the city determines will be necessary to facilitate the use of these facilities, including
120.15but not limited to parking, skyways, pedestrian bridges, lighting, and landscaping. It also
120.16includes the performing arts theatre and the Southern Minnesota Women's Hockey Exposition
120.17Center, for use by Minnesota State University, Mankato.
120.18    (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved
120.19by voters at the November 4, 2016, general election, the city may by ordinance also use
120.20revenues from taxes authorized under subdivisions 1 and 2, up to a maximum of $47,000,000,
120.21plus associated bond costs, to pay all or a portion of the expenses of the following capital
120.22projects:
120.23    (1) construction and improvements to regional recreational facilities including existing
120.24hockey and curling rinks, a baseball park, youth athletic fields and facilities, the municipal
120.25swimming pool including improvements to make the pool compliant with the Americans
120.26with Disabilities Act, and indoor regional athletic facilities;
120.27    (2) improvements to flood control and the levee system;
120.28(3) water quality improvement projects in Blue Earth and Nicollet Counties;
120.29(4) expansion of the regional transit building and related multimodal transit
120.30improvements;
120.31(5) regional public safety and emergency communications improvements and equipment;
120.32and
121.1(6) matching funds for improvements to publicly owned regional facilities including a
121.2historic museum, supportive housing, and a senior center.
121.3EFFECTIVE DATE.This section is effective the day after the governing body of the
121.4city of Mankato and its chief clerical officer comply with Minnesota Statutes, section
121.5645.021, subdivisions 2 and 3.

121.6    Sec. 4. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by Laws
121.72005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter 366,
121.8article 7, section 10, is amended to read:
121.9    Subd. 4. Expiration of taxing authority and expenditure limitation. The authority
121.10granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise tax shall
121.11expire on at the earlier of when revenues are sufficient to pay off the bonds, including
121.12interest and all other associated bond costs authorized under subdivision 5, or December
121.1331, 2022 2038.
121.14EFFECTIVE DATE.This section is effective the day following final enactment without
121.15local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.

121.16    Sec. 5. Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read:
121.17    Subd. 5. Bonds. (a) The city of Mankato may issue general obligation bonds of the city
121.18in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities, without
121.19election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or
121.20a tax to pay them. The debt represented by bonds issued for Riverfront 2000 and related
121.21facilities shall not be included in computing any debt limitations applicable to the city of
121.22Mankato, and the levy of taxes required by section 475.61 to pay principal of and interest
121.23on the bonds shall not be subject to any levy limitation or be included in computing or
121.24applying any levy limitation applicable to the city.
121.25    (b) The city of Mankato may issue general obligation bonds of the city in an amount not
121.26to exceed $47,000,000 for the projects listed under subdivision 3, paragraph (b), without
121.27election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or
121.28a tax to pay them. The debt represented by bonds under this paragraph shall not be included
121.29in computing any debt limitations applicable to the city of Mankato, and the levy of taxes
121.30required by Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds,
121.31and shall not be subject to any levy limitation or be included in computing or applying any
121.32levy limitation applicable to the city. The city may use tax revenue in excess of one year's
122.1principal interest reserve for intended annual bond payments to pay all or a portion of the
122.2cost of capital improvements authorized in subdivision 3.
122.3EFFECTIVE DATE.This section is effective the day following final enactment without
122.4local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.

122.5    Sec. 6. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by Laws
122.62006, chapter 259, article 3, section 3, and Laws 2011, First Special Session chapter 7,
122.7article 4, section 4, is amended to read:
122.8    Subdivision 1. Sales tax authorized. (a) Notwithstanding Minnesota Statutes, section
122.9477A.016, or any other contrary provision of law, ordinance, or city charter, the city of
122.10Hermantown may, by ordinance, impose an additional sales tax of up to one percent on
122.11sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur within
122.12the city. The proceeds of the tax imposed under this section must be used to meet the costs
122.13of:
122.14    (1) extending a sewer interceptor line;
122.15    (2) construction of a booster pump station, reservoirs, and related improvements to the
122.16water system; and
122.17    (3) construction of a building containing a police and fire station and an administrative
122.18services facility.
122.19(b) If the city imposed a sales tax of only one-half of one percent under paragraph (a),
122.20it may increase the tax to one percent to fund the purposes under paragraph (a) provided it
122.21is approved by the voters at a general election held before December 31, 2012.
122.22(c) As approved by the voters at the November 8, 2016, general election, the proceeds
122.23under this section may also be used to meet the costs of debt service payments for
122.24construction of the Hermantown Wellness Center.
122.25EFFECTIVE DATE.This section is effective the day after the governing body of the
122.26city of Hermantown and its chief clerical officer comply with Minnesota Statutes, section
122.27645.021, subdivisions 2 and 3.

122.28    Sec. 7. Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by Laws
122.292006, chapter 259, article 3, section 4, is amended to read:
122.30    Subd. 4. Termination. The tax authorized under this section terminates on March 31,
122.312026 at the earlier of (1) December 31, 2036, or (2) when the Hermantown City Council
123.1first determines that sufficient funds have been received from the tax to fund the costs,
123.2including bonds and associated bond costs for the uses specified in subdivision 1. Any funds
123.3remaining after completion of the improvements and retirement or redemption of the bonds
123.4may be placed in the general fund of the city.
123.5EFFECTIVE DATE.This section is effective the day following final enactment without
123.6local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.

123.7    Sec. 8. Laws 1999, chapter 243, article 4, section 17, subdivision 3, is amended to read:
123.8    Subd. 3. Use of revenues. (a) Revenues received from taxes authorized by subdivisions
123.91 and 2 must be used by the city to pay the cost of collecting the taxes and to pay for
123.10construction and improvement of a civic and community center and recreational facilities
123.11to serve all ages, including seniors and youth. Authorized expenses include, but are not
123.12limited to, acquiring property, paying construction and operating expenses related to the
123.13development of an authorized facility, funding facilities replacement reserves, and paying
123.14debt service on bonds or other obligations issued to finance the construction or expansion
123.15of an authorized facility. The capital expenses for all projects authorized under this
123.16subdivision that may be paid with these taxes are limited to $9,000,000, plus an amount
123.17equal to the costs related to issuance of the bonds and funding facilities replacement reserves.
123.18    (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved
123.19by the voters at the November 8, 2016, general election, the city of New Ulm may by
123.20ordinance also use revenues from taxes authorized under subdivisions 1 and 2, up to a
123.21maximum of $14,800,000, plus associated bond costs, to pay all or a portion of the expenses
123.22of the following capital projects:
123.23    (1) constructing an indoor water park and making safety improvements to the existing
123.24recreational center pool;
123.25    (2) constructing an indoor playground, a wellness center, and a gymnastics facility;
123.26    (3) constructing a winter multipurpose dome;
123.27    (4) making improvements to Johnson Park Grandstand; and
123.28    (5) making improvements to the entrance road and parking at Hermann Heights Park.
123.29EFFECTIVE DATE.This section is effective the day after the governing body of the
123.30city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
123.31645.021, subdivisions 2 and 3.

124.1    Sec. 9. Laws 1999, chapter 243, article 4, section 17, is amended by adding a subdivision
124.2to read:
124.3    Subd. 4a. Bonding authority; additional use and extension of tax. As approved by
124.4the voters at the November 8, 2016, general election, and in addition to the bonds issued
124.5under subdivision 4, the city of New Ulm may issue general obligation bonds of the city in
124.6an amount not to exceed $14,800,000 for the projects listed in subdivision 3, paragraph (b).
124.7The debt represented by bonds under this subdivision shall not be included in computing
124.8any debt limitations applicable to the city of New Ulm, and the levy of taxes required by
124.9Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds, and shall
124.10not be subject to any levy limitation or be included in computing or applying any levy
124.11limitation applicable to the city.
124.12EFFECTIVE DATE.This section is effective the day after the governing body of the
124.13city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
124.14645.021, subdivisions 2 and 3.

124.15    Sec. 10. Laws 1999, chapter 243, article 4, section 17, subdivision 5, is amended to read:
124.16    Subd. 5. Termination of taxes. The taxes imposed under subdivisions 1 and 2 expire
124.17when the city council determines that sufficient funds have been received from the taxes to
124.18finance the capital and administrative costs for the acquisition, construction, and improvement
124.19of facilities described in subdivision 3, including the additional use of revenues under
124.20subdivision 3, paragraph (b), as approved by the voters at the November 8, 2016, general
124.21election, and to prepay or retire at maturity the principal, interest, and premium due on any
124.22bonds issued for the facilities under subdivision 4 subdivisions 4 and 4a. Any funds remaining
124.23after completion of the project and retirement or redemption of the bonds may be placed in
124.24the general fund of the city. The taxes imposed under subdivisions 1 and 2 may expire at
124.25an earlier time if the city so determines by ordinance.
124.26EFFECTIVE DATE.This section is effective the day after the governing body of the
124.27city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
124.28645.021, subdivisions 2 and 3.

124.29    Sec. 11. Laws 1999, chapter 243, article 4, section 18, subdivision 1, as amended by Laws
124.302008, chapter 366, article 7, section 12, is amended to read:
124.31    Subdivision 1. Sales and use tax. (a) Notwithstanding Minnesota Statutes, section
124.32477A.016 , or any other provision of law, ordinance, or city charter, if approved by the city
124.33voters at the first municipal general election held after the date of final enactment of this
125.1act or at a special election held November 2, 1999, the city of Proctor may impose by
125.2ordinance a sales and use tax of up to one-half of one percent for the purposes specified in
125.3subdivision 3. The provisions of Minnesota Statutes, section 297A.99, govern the imposition,
125.4administration, collection, and enforcement of the tax authorized under this subdivision.
125.5(b) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of
125.6law, ordinance, or city charter, the city of Proctor may impose by ordinance an additional
125.7sales and use tax of up to one-half of one percent, as approved by the voters at the November
125.84 election. The revenues received from the additional tax must be used for the purposes
125.9specified in subdivision 3, paragraph (b).
125.10EFFECTIVE DATE.This section is effective the day after the governing body of the
125.11city of Proctor and its chief clerical officer comply with Minnesota Statutes, section 645.021,
125.12subdivisions 2 and 3.

125.13    Sec. 12. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 2,
125.14as amended by Laws 2006, chapter 259, article 3, section 6, is amended to read:
125.15    Subd. 2. Use of revenues. The proceeds of the tax imposed under this section shall be
125.16used to pay for lake water quality improvement projects as detailed in the Shell Rock River
125.17watershed plan and as directed by the Shell Rock River Watershed Board. Notwithstanding
125.18any provision of statute, other law, or city charter to the contrary, the city shall transfer all
125.19revenues from the tax imposed under subdivision 1, as soon as they are received, to the
125.20Shell Rock River Watershed District. The city is not required to review the intended uses
125.21of the revenues by the watershed district, nor is the watershed district required to submit to
125.22the city proposed budgets, statements, or invoices explaining the intended uses of the
125.23revenues as a prerequisite for the transfer of the revenues. The Shell Rock River Watershed
125.24District shall appear before the city of Albert Lea City Council on a biannual basis to present
125.25a report of its activities, expenditures, and intended uses of the city sales tax revenue.
125.26EFFECTIVE DATE.This section is effective the day after the chief clerical officer
125.27and the governing body of the city of Albert Lea comply with Minnesota Statutes, section
125.28645.021, subdivisions 2 and 3.

125.29    Sec. 13. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 4,
125.30as amended by Laws 2014, chapter 308, article 3, section 23, is amended to read:
125.31    Subd. 4. Termination of taxes. The taxes imposed under this section expire at the earlier
125.32of (1) 15 30 years after the taxes are first imposed, or (2) when the city council first
125.33determines that the amount of revenues raised to pay for the projects under subdivision 2,
126.1shall meet or exceed the sum of $15,000,000 $30,000,000. Any funds remaining after
126.2completion of the projects may be placed in the general fund of the city.
126.3EFFECTIVE DATE.This section is effective the day after the chief clerical officer
126.4and the governing body of the city of Albert Lea comply with Minnesota Statutes, section
126.5645.021, subdivisions 2 and 3.

126.6    Sec. 14. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 3,
126.7as amended by Laws 2014, chapter 308, article 7, section 3, is amended to read:
126.8    Subd. 3. Use of revenues. (a) Revenues received from taxes authorized by subdivisions
126.91 and 2 must be used by the city (1) to pay the cost of collecting and administering the taxes
126.10and; (2) to pay for the costs of a community center complex and; (3) to make renovations
126.11to the Memorial Auditorium; and (4) to construct public athletic facilities, provided that
126.12this use of the tax is subject to the same restrictions that apply to the issuance of debt provided
126.13in subdivision 4, paragraph (c). Authorized expenses include, but are not limited to, acquiring
126.14property and paying construction expenses related to these improvements, and paying debt
126.15service on bonds or other obligations issued to finance acquisition and construction of these
126.16improvements.
126.17    (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivisions 2 and 3, if the
126.18city decides to extend the taxes in subdivisions 1 and 2, as allowed under subdivision 5,
126.19paragraph (b), the city must use any amounts in excess of the amounts necessary to meet
126.20the obligations under paragraph (a) to pay the city's share of debt service on bonds issued
126.21under Minnesota Statutes, section 469.194, to fund the Lewis and Clark Regional Water
126.22System Project.
126.23EFFECTIVE DATE.This section is effective the day after the governing body of the
126.24city of Worthington and its chief clerical officer comply with Minnesota Statutes, section
126.25645.021, subdivisions 2 and 3.

126.26    Sec. 15. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 4,
126.27is amended to read:
126.28    Subd. 4. Bonding authority. (a) If the tax authorized under subdivision 1 is approved
126.29by the voters, the city may issue bonds under Minnesota Statutes, chapter 475, to pay capital
126.30and administrative expenses for the improvements described in subdivision 3 in an amount
126.31that does not exceed $6,000,000. An election to approve the bonds under Minnesota Statutes,
126.32section 475.58, is not required.
127.1    (b) The debt represented by the bonds is not included in computing any debt limitation
127.2applicable to the city, and any levy of taxes under Minnesota Statutes, section 475.61, to
127.3pay principal of and interest on the bonds is not subject to any levy limitation.
127.4    (c) If the Worthington City Council intends to issue debt after June 30, 2017, for the
127.5purposes of this subdivision, it must pass a resolution stating the intent to issue debt and
127.6proposing a public hearing. The resolution must be published for two successive weeks in
127.7the official newspaper of the city together with a notice setting a date for the public hearing.
127.8The hearing must be held at least two weeks, but not more than four weeks, after the first
127.9publication after passage of the resolution. Following the public hearing, if the city adopts
127.10a resolution confirming its intention to issue additional debt, that resolution must also be
127.11published in the official newspaper of the city, but the resolution is not effective for 30 days.
127.12If within 30 days after publication of the resolution confirming the city's intention to issue
127.13additional debt a petition signed by voters equal in number to ten percent of the votes cast
127.14in the city in the last general election requesting a vote on the proposed resolution is filed
127.15with the county auditor, the resolution is not effective until it has been submitted to the
127.16voters in a general or special election and a majority of the votes cast on the question of
127.17approving the resolution are in the affirmative. The commissioner of revenue shall prepare
127.18a suggested form of question to be presented at the election.
127.19EFFECTIVE DATE.This section is effective the day after the governing body of the
127.20city of Worthington and its chief clerical officer comply with Minnesota Statutes, section
127.21645.021, subdivisions 2 and 3.

127.22    Sec. 16. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 5,
127.23as amended by Laws 2014, chapter 308, article 7, section 4, is amended to read:
127.24    Subd. 5. Termination of taxes. (a) The taxes imposed under subdivisions 1 and 2 expire
127.25at the earlier of (1) ten years, or (2) when the city council determines that the amount of
127.26revenue received from the taxes is sufficient to pay for the projects under subdivision 3
127.27equals or exceeds $6,000,000 plus the additional amount needed to pay the costs related to
127.28issuance of bonds under subdivision 4, including interest on the bonds. Any funds remaining
127.29after completion of the project and retirement or redemption of the bonds shall be placed
127.30in a capital project fund of the city. The taxes imposed under subdivisions 1 and 2 may
127.31expire at an earlier time if the city so determines by ordinance.
127.32    (b) Notwithstanding paragraph (a), the city council may, by ordinance, extend the taxes
127.33imposed under subdivisions 1 and 2 through December 31, 2039, provided that all additional
127.34revenues that exceed those necessary to fund the projects and associated financing costs
128.1listed in subdivision 3, paragraph (a), are committed to pay debt service on bonds issued
128.2under Minnesota Statutes, section 469.194, to fund the Lewis and Clark Regional Water
128.3System Project.
128.4EFFECTIVE DATE.This section is effective the day after the governing body of the
128.5city of Worthington and its chief clerical officer comply with Minnesota Statutes, section
128.6645.021, subdivisions 2 and 3.

128.7    Sec. 17. Laws 2008, chapter 366, article 7, section 20, is amended to read:
128.8    Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED.
128.9    Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes,
128.10section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to the
128.11approval of the voters on November 7, 2006, the city of North Mankato may impose by
128.12ordinance a sales and use tax of one-half of one percent for the purposes specified in
128.13subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition,
128.14administration, collection, and enforcement of the taxes authorized under this subdivision.
128.15    Subd. 2. Use of revenues. Revenues received from the tax authorized by subdivision 1
128.16must be used to pay all or part of the capital costs of the following projects:
128.17    (1) the local share of the Trunk Highway 14/County State-Aid Highway 41 interchange
128.18project;
128.19    (2) development of regional parks and hiking and biking trails, including construction
128.20of regional athletic facilities;
128.21    (3) expansion of the North Mankato Taylor Library;
128.22    (4) riverfront redevelopment; and
128.23    (5) lake improvement projects.
128.24    The total amount of revenues from the tax in subdivision 1 that may be used to fund
128.25these projects is $6,000,000 $21,000,000 plus any associated bond costs.
128.26    Subd. 2a. Authorization to extend the tax. Notwithstanding Minnesota Statutes, section
128.27297A.99, subdivision 3, the North Mankato City Council may, by resolution, extend the
128.28tax authorized under subdivision 1 to cover an additional $15,000,000 in bonds, plus
128.29associated bond costs, to fund the projects in subdivision 2 as approved by the voters at the
128.30November 8, 2016, general election.
129.1    Subd. 3. Bonds. (a) The city of North Mankato, pursuant to the approval of the voters
129.2at the November 7, 2006 referendum authorizing the imposition of the taxes in this section,
129.3may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative
129.4expenses for the projects described in subdivision 2, in an amount that does not exceed
129.5$6,000,000. A separate election to approve the bonds under Minnesota Statutes, section
129.6475.58 , is not required.
129.7    (b) The city of North Mankato, pursuant to approval of the voters at the November 8,
129.82016, referendum extending the tax fee to provide additional revenue to be spent for the
129.9projects in subdivision 2, may issue additional bonds under Minnesota Statutes, chapter
129.10475, to pay capital and administrative expenses for those projects in an amount that does
129.11not exceed $15,000,000. A separate election to approve the bonds under Minnesota Statutes,
129.12section 475.58, is not required.
129.13    (c) The debt represented by the bonds is not included in computing any debt limitation
129.14applicable to the city, and any levy of taxes under Minnesota Statutes, section 475.61, to
129.15pay principal and interest on the bonds is not subject to any levy limitation.
129.16    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires when the
129.17city council determines that the amount of revenues received from the taxes to pay for the
129.18projects under subdivision 2 first equals or exceeds $6,000,000 plus the additional amount
129.19needed to pay the costs related to issuance of bonds under subdivision 3, including interest
129.20on the bonds at the earlier of December 31, 2038, or when revenues from the taxes first
129.21equal or exceed $21,000,000 plus the additional amount needed to pay costs related to
129.22issuance of bonds under subdivision 3, including interest. Any funds remaining after
129.23completion of the projects and retirement or redemption of the bonds shall be placed in a
129.24capital facilities and equipment replacement fund of the city. The tax imposed under
129.25subdivision 1 may expire at an earlier time if the city so determines by ordinance.
129.26EFFECTIVE DATE.This section is effective the day after the governing body of the
129.27city of North Mankato and its chief clerical officer comply with Minnesota Statutes, section
129.28645.021, subdivisions 2 and 3.

129.29    Sec. 18. CITY OF EAST GRAND FORKS; TAXES AUTHORIZED.
129.30    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
129.31section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
129.32charter, and as approved by the voters at a special election on March 7, 2016, the city of
129.33East Grand Forks may impose, by ordinance, a sales and use tax of up to one percent for
129.34the purposes specified in subdivision 2. Except as otherwise provided in this section, the
130.1provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
130.2collection, and enforcement of the tax authorized under this subdivision.
130.3    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
130.4under subdivision 1 must be used by the city of East Grand Forks to pay the costs of
130.5collecting and administering the tax and to finance the capital and administrative costs of
130.6improvement to the city public swimming pool. Authorized expenses include, but are not
130.7limited to, paying construction expenses related to the renovation and the development of
130.8these facilities and improvements, and securing and paying debt service on bonds issued
130.9under subdivision 3 or other obligations issued to finance improvement of the public
130.10swimming pool in the city of East Grand Forks.
130.11    Subd. 3. Bonding authority. (a) The city of East Grand Forks may issue bonds under
130.12Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
130.13authorized in subdivision 2. The aggregate principal amount of bonds issued under this
130.14subdivision may not exceed $2,820,000, plus an amount to be applied to the payment of
130.15the costs of issuing the bonds. The bonds may be paid from or secured by any funds available
130.16to the city of East Grand Forks, including the tax authorized under subdivision 1. The
130.17issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60
130.18and 275.61.
130.19(b) The bonds are not included in computing any debt limitation applicable to the city
130.20of East Grand Forks, and any levy of taxes under Minnesota Statutes, section 475.61, to
130.21pay principal and interest on the bonds is not subject to any levy limitation. A separate
130.22election to approve the bonds under Minnesota Statutes, section 475.58, is not required.
130.23    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the later
130.24of: (1) five years after the tax is first imposed; or (2) when the city council determines that
130.25$2,820,000 has been received from the tax to pay for the cost of the projects authorized
130.26under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the
130.27bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
130.28after payment of all such costs and retirement or redemption of the bonds shall be placed
130.29in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier
130.30time if the city so determines by ordinance.
130.31EFFECTIVE DATE.This section is effective the day after compliance by the governing
130.32body of the city of East Grand Forks with Minnesota Statutes, section 645.021, subdivisions
130.332 and 3.

131.1    Sec. 19. CITY OF EXCELSIOR; TAXES AUTHORIZED.
131.2    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
131.3section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
131.4charter, the city of Excelsior may impose, by ordinance, a sales and use tax of up to one-half
131.5of one percent for the purposes specified in subdivision 2, as approved by the voters at the
131.6November 4, 2014, general election. Except as otherwise provided in this section, the
131.7provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
131.8collection, and enforcement of the tax authorized under this subdivision.
131.9    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
131.10under subdivision 1 must be used by the city of Excelsior to pay the costs of collecting and
131.11administering the tax and to finance the capital and administrative costs of improvements
131.12to the commons as indicated in the November 2016 findings of the commons master planning
131.13work group. Authorized expenses include, but are not limited to, improvements for
131.14walkability and accessibility, enhancement of beach area and facilities, prevention and
131.15management of shoreline erosion, redesign of the port and bandshell, improvement of
131.16playground equipment, and securing and paying debt service on bonds issued under
131.17subdivision 3 or other obligations issued to the improvements listed in this subdivision in
131.18the city of Excelsior.
131.19    Subd. 3. Bonding authority. (a) The city of Excelsior may issue bonds under Minnesota
131.20Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
131.21subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
131.22not exceed $7,000,000, plus an amount to be applied to the payment of the costs of issuing
131.23the bonds. The bonds may be paid from or secured by any funds available to the city of
131.24Excelsior, including the tax authorized under subdivision 1. The issuance of bonds under
131.25this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
131.26(b) The bonds are not included in computing any debt limitation applicable to the city
131.27of Excelsior, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
131.28and interest on the bonds is not subject to any levy limitation. A separate election to approve
131.29the bonds under Minnesota Statutes, section 475.58, is not required.
131.30    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the later
131.31of: (1) 25 years after the tax is first imposed; or (2) when the city council determines that
131.32$7,000,000 has been received from the tax to pay for the cost of the projects authorized
131.33under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the
131.34bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
132.1after payment of all such costs and retirement or redemption of the bonds shall be placed
132.2in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier
132.3time if the city so determines by ordinance.
132.4EFFECTIVE DATE.This section is effective the day after compliance by the governing
132.5body of the city of Excelsior with Minnesota Statutes, section 645.021, subdivisions 2 and
132.63.

132.7    Sec. 20. CITY OF FAIRMONT; LOCAL TAX AUTHORIZED.
132.8    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
132.9section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
132.10charter, and as approved by the voters at the general election of November 8, 2016, the city
132.11of Fairmont may impose, by ordinance, a sales and use tax of one-half of one percent for
132.12the purposes specified in subdivision 2. Except as otherwise provided in this section, the
132.13provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
132.14collection, and enforcement of the tax authorized under this subdivision.
132.15    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
132.16under subdivision 1 must be used by the city of Fairmont to pay the costs of collecting and
132.17administering the tax and to finance the capital and administrative costs of constructing and
132.18funding recreational amenities, trails, and a community center. The total that may be raised
132.19from the tax to pay for these projects is limited to $15,000,000, plus the costs related to the
132.20issuance and paying debt service on bonds for these projects.
132.21    Subd. 3. Bonding authority. (a) The city of Fairmont may issue bonds under Minnesota
132.22Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in
132.23subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
132.24not exceed $15,000,000, plus an amount to be applied to the payment of the costs of issuing
132.25the bonds. The bonds may be paid from or secured by any funds available to the city of
132.26Fairmont, including the tax authorized under subdivision 1. The issuance of bonds under
132.27this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
132.28(b) The bonds are not included in computing any debt limitation applicable to the city
132.29of Fairmont, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
132.30and interest on the bonds is not subject to any levy limitation. A separate election to approve
132.31the bonds under Minnesota Statutes, section 475.58, is not required.
132.32    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
132.33earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines
133.1that $15,000,000, plus an amount sufficient to pay the costs related to issuing the bonds
133.2authorized under subdivision 3, including interest on the bonds, has been received from the
133.3tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining
133.4after payment of all such costs and retirement or redemption of the bonds shall be placed
133.5in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier
133.6time if the city so determines by ordinance.
133.7EFFECTIVE DATE.This section is effective the day after compliance by the governing
133.8body of the city of Fairmont with Minnesota Statutes, section 645.021, subdivisions 2 and
133.93.

133.10    Sec. 21. CITY OF FERGUS FALLS; TAXES AUTHORIZED.
133.11    Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes,
133.12section 297A.99, subdivision 1, section 477A.016, or any other law, ordinance, or city
133.13charter, and as approved by the voters at the November 8, 2016, general election, the city
133.14of Fergus Falls may impose, by ordinance, a sales and use tax of up to one-half of one
133.15percent for the purposes specified in subdivision 2. Except as otherwise provided in this
133.16section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
133.17administration, collection, and enforcement of the tax authorized under this subdivision.
133.18    Subd. 2. Use of sales and use tax revenues. The revenues from the tax authorized under
133.19subdivision 1 must be used by the city of Fergus Falls to pay the costs of collecting and
133.20administering the tax and securing and paying debt service on bonds issued to finance all
133.21or part of the costs of the expansion and betterment of the Fergus Falls Public Library located
133.22at 205 East Hampden Avenue in the city of Fergus Falls.
133.23    Subd. 3. Bonding authority. (a) The city of Fergus Falls may issue bonds under
133.24Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project
133.25authorized in subdivision 2. The aggregate principal amount of bonds issued under this
133.26subdivision may not exceed $9,800,000, plus an amount applied to the payment of costs of
133.27issuing the bonds. The bonds may be paid from or secured by any funds available to the
133.28city of Fergus Falls, including the tax authorized under subdivision 1. The issuance of bonds
133.29under this subdivision is not subject to Minnesota Statutes, section 275.60 and 275.61.
133.30(b) The bonds are not included in computing any debt limitation applicable to the city,
133.31and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and
133.32interest on the bonds is not subject to any levy limitation. A separate election to approve
133.33the bonds under Minnesota Statutes, section 475.58, is not required.
134.1    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
134.2earlier of: (1) 12 years after the tax is first imposed, or (2) when the city council determines
134.3that $9,800,000 has been received from the tax to pay for the cost of the project authorized
134.4under subdivision 2, plus an amount sufficient to pay the costs related to the issuance of the
134.5bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
134.6after payment of all such costs and retirement or redemption of the bonds shall be placed
134.7in the general fund of the city. The tax imposed under subdivision 1 may expire at any
134.8earlier time if the city so determines by ordinance.
134.9EFFECTIVE DATE.This section is effective the day after compliance by the governing
134.10body of the city of Fergus Falls with Minnesota Statutes, section 645.021, subdivisions 2
134.11and 3.

134.12    Sec. 22. CITY OF MOOSE LAKE; TAXES AUTHORIZED.
134.13    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
134.14section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
134.15as approved by the voters at the November 6, 2012, general election, the city of Moose Lake
134.16may impose, by ordinance, a sales and use tax of up to one-half of one percent for the
134.17purposes specified in subdivision 2. Except as otherwise provided in this section, the
134.18provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
134.19collection, and enforcement of the tax authorized under this subdivision.
134.20    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
134.21under subdivision 1 must be used by the city of Moose Lake to pay the costs of collecting
134.22and administering the tax and to finance the costs of: (1) improvements to the city's park
134.23system; (2) street and related infrastructure improvements; and (3) municipal arena
134.24improvements. Authorized costs include construction and engineering costs and associated
134.25bond costs.
134.26    Subd. 3. Bonding authority. The city of Moose Lake may issue bonds under Minnesota
134.27Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in
134.28subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
134.29not exceed $3,000,000, plus an amount to be applied to the payment of the costs of issuing
134.30the bonds. The bonds may be paid from or secured by any funds available to the city of
134.31Moose Lake, including the tax authorized under subdivision 1. The issuance of bonds under
134.32this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
134.33The bonds are not included in computing any debt limitation applicable to the city of
134.34Moose Lake, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
135.1and interest on the bonds is not subject to any levy limitation. A separate election to approve
135.2the bonds under Minnesota Statutes, section 475.58, is not required.
135.3    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
135.4earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines
135.5that $3,000,000 has been received from the tax to pay for the cost of the projects authorized
135.6under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the
135.7bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
135.8after payment of all such costs and retirement or redemption of the bonds shall be placed
135.9in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier
135.10time if the city so determines by ordinance.
135.11EFFECTIVE DATE.This section is effective the day after compliance by the governing
135.12body of the city of Moose Lake with Minnesota Statutes, section 645.021, subdivisions 2
135.13and 3.

135.14    Sec. 23. CITY OF NEW LONDON; TAX AUTHORIZED.
135.15    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
135.16section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
135.17charter, and as approved by the voters at the general election of November 8, 2016, the city
135.18of New London may impose, by ordinance, a sales and use tax of one-half of one percent
135.19for the purposes specified in subdivision 2. Except as otherwise provided in this section,
135.20the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
135.21collection, and enforcement of the tax authorized under this subdivision.
135.22    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
135.23under subdivision 1 must be used by the city of New London to pay the costs of collecting
135.24and administering the tax and to finance the capital and administrative costs of the following
135.25projects:
135.26(1) construction and equipping of a new library and community room;
135.27(2) construction of an ambulance bay at the fire hall; and
135.28(3) improvements to the New London Senior Citizen Center.
135.29The total that may be raised from the tax to pay for these projects is limited to $872,000
135.30plus the costs related to the issuance and paying debt service on bonds for these projects.
135.31    Subd. 3. Bonding authority. (a) The city of New London may issue bonds under
135.32Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
136.1authorized in subdivision 2. The aggregate principal amount of bonds issued under this
136.2subdivision may not exceed $872,000, plus an amount to be applied to the payment of the
136.3costs of issuing the bonds. The bonds may be paid from or secured by any funds available
136.4to the city of New London, including the tax authorized under subdivision 1. The issuance
136.5of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and
136.6275.61.
136.7(b) The bonds are not included in computing any debt limitation applicable to the city
136.8of New London, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
136.9principal and interest on the bonds is not subject to any levy limitation. A separate election
136.10to approve the bonds under Minnesota Statutes, section 475.58, is not required.
136.11    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
136.12earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines
136.13that $872,000, plus an amount sufficient to pay the costs related to issuing the bonds
136.14authorized under subdivision 3, including interest on the bonds, has been received from the
136.15tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining
136.16after payment of all such costs and retirement or redemption of the bonds shall be placed
136.17in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier
136.18time if the city so determines by ordinance.
136.19EFFECTIVE DATE.This section is effective the day after compliance by the governing
136.20body of the city of New London with Minnesota Statutes, section 645.021, subdivisions 2
136.21and 3.

136.22    Sec. 24. CITY OF NORTH MANKATO; FOOD AND BEVERAGE TAX
136.23AUTHORIZED.
136.24    Subdivision 1. Food and beverage tax authorized. Notwithstanding Minnesota Statutes,
136.25section 477A.016, or any ordinance, city charter, or other provision of law, the city of North
136.26Mankato may, by ordinance, impose a sales tax of up to one percent on the gross receipts
136.27on all sales of food and beverages by a restaurant or place of refreshment, as defined by
136.28resolution of the city, that are located within the city. For purposes of this section, "food
136.29and beverages" includes retail on-sale of intoxicating liquor and fermented malt beverages.
136.30    Subd. 2. Use of proceeds from tax. The proceeds of any tax imposed under subdivision
136.311 shall be used by the city to pay all or a portion of the expenses of:
136.32(1) operation, maintenance, and capital expenses for the Caswell Park Regional Sporting
136.33Complex; and
137.1(2) for costs related to regional tourism events.
137.2Authorized capital expenses include securing or paying debt service on bonds or other
137.3obligations issued to finance the construction of the Caswell Park Regional Sporting Complex
137.4facilities.
137.5    Subd. 3. Collection, administration, and enforcement. If the city desires, it may enter
137.6into an agreement with the commissioner of revenue to administer, collect, and enforce the
137.7taxes authorized under subdivisions 1 and 2. If the commissioner agrees to collect the tax,
137.8the provisions of Minnesota Statutes, section 297A.99, related to collection, administration,
137.9and enforcement apply.
137.10EFFECTIVE DATE.This section is effective the day after the governing body of the
137.11city of North Mankato and its chief clerical officer comply with Minnesota Statutes, section
137.12645.021, subdivisions 2 and 3.

137.13    Sec. 25. CITY OF SLEEPY EYE; LODGING TAX.
137.14Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of law,
137.15ordinance, or city charter, the city council for the city of Sleepy Eye may impose, by
137.16ordinance, a tax of up to two percent on the gross receipts subject to the lodging tax under
137.17Minnesota Statutes, section 469.190. This tax is in addition to any tax imposed under
137.18Minnesota Statutes, section 469.190, and the total tax imposed under that section and this
137.19provision must not exceed five percent. Revenue from the tax imposed under this section
137.20may only be used for the same purposes as a tax imposed under Minnesota Statutes, section
137.21469.190.
137.22EFFECTIVE DATE.This section is effective the day after compliance by the governing
137.23body of the city of Sleepy Eye with Minnesota Statutes, section 645.021, subdivisions 2
137.24and 3.

137.25    Sec. 26. CITY OF SPICER; TAX AUTHORIZED.
137.26    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
137.27section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
137.28charter, and as approved by the voters at the general election of November 8, 2016, the city
137.29of Spicer may impose, by ordinance, a sales and use tax of one-half of one percent for the
137.30purposes specified in subdivision 2. Except as otherwise provided in this section, the
137.31provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
137.32collection, and enforcement of the tax authorized under this subdivision.
138.1    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
138.2under subdivision 1 must be used by the city of Spicer to pay the costs of collecting and
138.3administering the tax and to finance the capital and administrative costs of the following
138.4projects:
138.5(1) pedestrian public safety improvements such as a pedestrian bridge or crosswalk
138.6signals at marked Trunk Highway 23;
138.7(2) park and trail capital improvements including signage for bicycle share the road
138.8improvements and replacement of playground and related facilities; and
138.9(3) capital improvements to regional community facilities such as the Dethelfs roof and
138.10window replacement and the Pioneerland branch library roof replacement.
138.11    Subd. 3. Bonding authority. (a) The city of Spicer may issue bonds under Minnesota
138.12Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in
138.13subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
138.14not exceed $800,000, plus an amount to be applied to the payment of the costs of issuing
138.15the bonds. The bonds may be paid from or secured by any funds available to the city of
138.16Spicer, including the tax authorized under subdivision 1. The issuance of bonds under this
138.17subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
138.18(b) The bonds are not included in computing any debt limitation applicable to the city
138.19of Spicer, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
138.20and interest on the bonds is not subject to any levy limitation. A separate election to approve
138.21the bonds under Minnesota Statutes, section 475.58, is not required.
138.22    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
138.23earlier of: (1) ten years after the tax is first imposed; (2) December 31, 2027; or (3) when
138.24the city council determines that $800,000, plus an amount sufficient to pay the costs related
138.25to issuing the bonds authorized under subdivision 3, including interest on the bonds, has
138.26been received from the tax to pay for the cost of the projects authorized under subdivision
138.272. All funds not used to pay collection and administration costs of the tax must be used for
138.28projects listed in subdivision 2. The tax imposed under subdivision 1 may expire at an earlier
138.29time if the city so determines by ordinance.
138.30EFFECTIVE DATE.This section is effective the day after compliance by the governing
138.31body of the city of Spicer with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

139.1    Sec. 27. CLAY COUNTY; TAX AUTHORIZED.
139.2    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
139.3section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law or ordinance, and as
139.4approved by the voters at the November 8, 2016, general election, Clay County may impose,
139.5by ordinance, a sales and use tax of up to one-half of one percent for the purposes specified
139.6in subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota
139.7Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement
139.8of the tax authorized under this subdivision.
139.9    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
139.10under subdivision 1 must be used by Clay County to pay the costs of collecting and
139.11administering the tax and to finance the capital costs of constructing and equipping a new
139.12correctional facility, law enforcement center, and related parking facility. Authorized
139.13expenses include but are not limited to paying design, development, and construction costs
139.14related to these facilities and improvements, and securing and paying debt service on bonds
139.15issued under subdivision 3 or other obligations issued to finance the facilities listed in this
139.16subdivision.
139.17    Subd. 3. Bonding authority. Clay County may issue bonds under Minnesota Statutes,
139.18chapter 475, to finance all or a portion of the costs of the facilities authorized in subdivision
139.192. The aggregate principal amount of bonds issued under this subdivision may not exceed
139.20$52,000,000, plus an amount to be applied to the payment of the costs of issuing the bonds.
139.21The bonds may be paid from or secured by any funds available to Clay County, including
139.22the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not
139.23subject to Minnesota Statutes, sections 275.60 and 275.61.
139.24    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
139.25earlier of: (1) 20 years after the tax is first imposed; or (2) when the county board determines
139.26that $52,000,000, plus an amount sufficient to pay the costs related to issuance of the bonds
139.27authorized under subdivision 3, including interest on the bonds, has been received from the
139.28tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining
139.29after payment of all such costs and retirement or redemption of the bonds shall be placed
139.30in the general fund of the county. The tax imposed under subdivision 1 may expire at an
139.31earlier time if the county so determines by ordinance.
139.32EFFECTIVE DATE.This section is effective the day after compliance by the governing
139.33body of Clay County with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

140.1    Sec. 28. WOODBURY LODGING TAX.
140.2Notwithstanding Minnesota Statutes, section 477A.016, or other law, in addition to a
140.3tax authorized in Minnesota Statutes, section 469.190, the city of Woodbury may impose
140.4by ordinance a tax of up to two percent on the gross receipts subject to the lodging tax under
140.5Minnesota Statutes, section 469.190. This tax is in addition to any tax imposed under
140.6Minnesota Statutes, section 469.190, and the total tax imposed by the city under this section
140.7and Minnesota Statutes, section 469.190, must not exceed five percent. Revenue from the
140.8tax imposed under this section may only be used for the same purposes as a tax imposed
140.9under Minnesota Statutes, section 469.190.
140.10EFFECTIVE DATE.This section is effective the day after the governing body of the
140.11city of Woodbury and its chief clerical officer timely complete their compliance with
140.12Minnesota Statutes, section 645.021, subdivisions 2 and 3.

140.13    Sec. 29. EFFECTIVE DATE; VALIDATION OF PRIOR ACT.
140.14Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of
140.15Proctor may approve Laws 2008, chapter 366, article 7, section 13, and Laws 2010, chapter
140.16389, article 5, sections 1 and 2, and file its approval with the secretary of state by January
140.171, 2015. If approved under this paragraph, actions undertaken by the city pursuant to the
140.18approval of the voters on November 2, 2010, and otherwise in accordance with those laws
140.19are validated.
140.20EFFECTIVE DATE.This section is effective the day following final enactment, without
140.21local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1, paragraph
140.22(a).

140.23ARTICLE 6

140.24TAX INCREMENT FINANCING

140.25    Section 1. Minnesota Statutes 2016, section 469.1763, subdivision 1, is amended to read:
140.26    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
140.27the meanings given.
140.28(b) "Activities" means acquisition of property, clearing of land, site preparation, soils
140.29correction, removal of hazardous waste or pollution, installation of utilities, construction
140.30of public or private improvements, and other similar activities, but only to the extent that
140.31tax increment revenues may be spent for such purposes under other law.
141.1(c) "Third party" means an entity other than (1) the person receiving the benefit of
141.2assistance financed with tax increments, or (2) the municipality or the development authority
141.3or other person substantially under the control of the municipality.
141.4(d) "Revenues derived from tax increments paid by properties in the district" means only
141.5tax increment as defined in section 469.174, subdivision 25, clause (1), and does not include
141.6tax increment as defined in section 469.174, subdivision 25, clauses (2), (3), and (4) to (5).
141.7EFFECTIVE DATE.This section is effective the day following final enactment.

141.8    Sec. 2. Minnesota Statutes 2016, section 469.1763, subdivision 2, is amended to read:
141.9    Subd. 2. Expenditures outside district. (a) For each tax increment financing district,
141.10an amount equal to at least 75 percent of the total revenue derived from tax increments paid
141.11by properties in the district must be expended on activities in the district or to pay bonds,
141.12to the extent that the proceeds of the bonds were used to finance activities in the district or
141.13to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other
141.14than redevelopment districts for which the request for certification was made after June 30,
141.151995, the in-district percentage for purposes of the preceding sentence is 80 percent. Not
141.16more than 25 percent of the total revenue derived from tax increments paid by properties
141.17in the district may be expended, through a development fund or otherwise, on activities
141.18outside of the district but within the defined geographic area of the project except to pay,
141.19or secure payment of, debt service on credit enhanced bonds. For districts, other than
141.20redevelopment districts for which the request for certification was made after June 30, 1995,
141.21the pooling percentage for purposes of the preceding sentence is 20 percent. The revenue
141.22revenues derived from tax increments for paid by properties in the district that are expended
141.23on costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before
141.24calculating the percentages that must be expended within and without the district.
141.25    (b) In the case of a housing district, a housing project, as defined in section 469.174,
141.26subdivision 11 , is an activity in the district.
141.27    (c) All administrative expenses are for activities outside of the district, except that if the
141.28only expenses for activities outside of the district under this subdivision are for the purposes
141.29described in paragraph (d), administrative expenses will be considered as expenditures for
141.30activities in the district.
141.31    (d) The authority may elect, in the tax increment financing plan for the district, to increase
141.32by up to ten percentage points the permitted amount of expenditures for activities located
141.33outside the geographic area of the district under paragraph (a). As permitted by section
142.1469.176, subdivision 4k , the expenditures, including the permitted expenditures under
142.2paragraph (a), need not be made within the geographic area of the project. Expenditures
142.3that meet the requirements of this paragraph are legally permitted expenditures of the district,
142.4notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase
142.5under this paragraph, the expenditures must:
142.6    (1) be used exclusively to assist housing that meets the requirement for a qualified
142.7low-income building, as that term is used in section 42 of the Internal Revenue Code; and
142.8    (2) not exceed the qualified basis of the housing, as defined under section 42(c) of the
142.9Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal
142.10Revenue Code; and
142.11    (3) be used to:
142.12    (i) acquire and prepare the site of the housing;
142.13    (ii) acquire, construct, or rehabilitate the housing; or
142.14    (iii) make public improvements directly related to the housing; or
142.15(4) be used to develop housing:
142.16(i) if the market value of the housing does not exceed the lesser of:
142.17(A) 150 percent of the average market value of single-family homes in that municipality;
142.18or
142.19(B) $200,000 for municipalities located in the metropolitan area, as defined in section
142.20473.121 , or $125,000 for all other municipalities; and
142.21(ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition
142.22of existing structures, site preparation, and pollution abatement on one or more parcels, if
142.23the parcel contains a residence containing one to four family dwelling units that has been
142.24vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision
142.257 , but without regard to whether the residence is the owner's principal residence, and only
142.26after the redemption period has expired.
142.27(e) The authority under paragraph (d), clause (4), expires on December 31, 2016.
142.28Increments may continue to be expended under this authority after that date, if they are used
142.29to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if
142.30December 31, 2016, is considered to be the last date of the five-year period after certification
142.31under that provision.
142.32EFFECTIVE DATE.This section is effective the day following final enactment.

143.1    Sec. 3. Minnesota Statutes 2016, section 469.1763, subdivision 3, is amended to read:
143.2    Subd. 3. Five-year rule. (a) Revenues derived from tax increments paid by properties
143.3in the district are considered to have been expended on an activity within the district under
143.4subdivision 2 only if one of the following occurs:
143.5(1) before or within five years after certification of the district, the revenues are actually
143.6paid to a third party with respect to the activity;
143.7(2) bonds, the proceeds of which must be used to finance the activity, are issued and
143.8sold to a third party before or within five years after certification, the revenues are spent to
143.9repay the bonds, and the proceeds of the bonds either are, on the date of issuance, reasonably
143.10expected to be spent before the end of the later of (i) the five-year period, or (ii) a reasonable
143.11temporary period within the meaning of the use of that term under section 148(c)(1) of the
143.12Internal Revenue Code, or are deposited in a reasonably required reserve or replacement
143.13fund;
143.14(3) binding contracts with a third party are entered into for performance of the activity
143.15before or within five years after certification of the district and the revenues are spent under
143.16the contractual obligation;
143.17(4) costs with respect to the activity are paid before or within five years after certification
143.18of the district and the revenues are spent to reimburse a party for payment of the costs,
143.19including interest on unreimbursed costs; or
143.20(5) expenditures are made for housing purposes as permitted by subdivision 2, paragraphs
143.21(b) and (d), or for public infrastructure purposes within a zone as permitted by subdivision
143.222, paragraph (e).
143.23(b) For purposes of this subdivision, bonds include subsequent refunding bonds if the
143.24original refunded bonds meet the requirements of paragraph (a), clause (2).
143.25(c) For a redevelopment district or a renewal and renovation district certified after June
143.2630, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) are
143.27extended to ten years after certification of the district. For a redevelopment district certified
143.28after April 20, 2009, and before June 30, 2012, the five-year periods described in paragraph
143.29(a) are extended to eight years after certification of the district. This extension is provided
143.30primarily to accommodate delays in development activities due to unanticipated economic
143.31circumstances.
143.32EFFECTIVE DATE.This section is effective the day following final enactment.

144.1    Sec. 4. Minnesota Statutes 2016, section 469.178, subdivision 7, is amended to read:
144.2    Subd. 7. Interfund loans. (a) The authority or municipality may advance or loan money
144.3to finance expenditures under section 469.176, subdivision 4, from its general fund or any
144.4other fund under which it has legal authority to do so.
144.5    (b) Not later than 60 days after money is transferred, advanced, or spent, whichever is
144.6earliest, the loan or advance must be authorized, by resolution of the governing body or of
144.7the authority, whichever has jurisdiction over the fund from which the advance or loan is
144.8authorized, before money is transferred, advanced, or spent, whichever is earliest.
144.9    (c) The resolution may generally grant to the municipality or the authority the power to
144.10make interfund loans under one or more tax increment financing plans or for one or more
144.11districts. The resolution may be adopted before or after the adoption of the tax increment
144.12financing plan or the creation of the tax increment financing district from which the advance
144.13or loan is to be repaid.
144.14    (d) The terms and conditions for repayment of the loan must be provided in writing and.
144.15The written terms and conditions may be in any form, but must include, at a minimum, the
144.16principal amount, the interest rate, and maximum term. Written terms may be modified or
144.17amended in writing by the municipality or the authority before the latest decertification of
144.18any tax increment financing district from which the interfund loan is to be repaid. The
144.19maximum rate of interest permitted to be charged is limited to the greater of the rates
144.20specified under section 270C.40 or 549.09 as of the date the loan or advance is authorized,
144.21unless the written agreement states that the maximum interest rate will fluctuate as the
144.22interest rates specified under section 270C.40 or 549.09 are from time to time adjusted.
144.23Loans or advances may be structured as draw-down or line-of-credit obligations of the
144.24lending fund.
144.25    (e) The authority shall report in the annual report submitted pursuant to section 469.175,
144.26subdivision 6:
144.27    (1) the amount of any interfund loan or advance made in a calendar year; and
144.28    (2) any amendment of an interfund loan or advance made in a calendar year.
144.29EFFECTIVE DATE.This section is effective the day following final enactment and
144.30applies to all districts, regardless of when the request for certification was made.

145.1    Sec. 5. Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to read:
145.2    Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment
145.3financing plan for a district, the rules under this section apply to a redevelopment district,
145.4renewal and renovation district, economic development district, soil condition district, or
145.5a soil deficiency district established by the city or a development authority of the city in the
145.6project area.
145.7    (b) Prior to or upon the adoption of the first tax increment plan subject to the special
145.8rules under this subdivision, the city must find by resolution that parcels consisting of at
145.9least 80 percent of the acreage of the project area (excluding street and railroad right of
145.10way) are characterized by one or more of the following conditions:
145.11    (1) peat or other soils with geotechnical deficiencies that impair development of
145.12residential or commercial buildings or infrastructure;
145.13    (2) soils or terrain that requires substantial filling in order to permit the development of
145.14commercial or residential buildings or infrastructure;
145.15    (3) landfills, dumps, or similar deposits of municipal or private waste;
145.16    (4) quarries or similar resource extraction sites;
145.17    (5) floodway; and
145.18    (6) substandard buildings within the meaning of Minnesota Statutes, section 469.174,
145.19subdivision 10 .
145.20    (c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed to be
145.21characterized by the relevant condition if at least 70 percent of the area of the parcel contains
145.22the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is deemed to
145.23be characterized by substandard buildings if the buildings occupy at least 30 percent of the
145.24area of the parcel.
145.25    (d) The four-year rule under Minnesota Statutes, section 469.176, subdivision 6, is
145.26extended to nine years for any district. The five-year rule under Minnesota Statutes, section
145.27469.1763, subdivision 3 , is extended to ten years for any district, and section 469.1763,
145.28subdivision 4 , does not apply to any district.
145.29    (e) Notwithstanding anything to the contrary in section 469.1763, subdivision 2, paragraph
145.30(a), not more than 80 percent of the total revenue derived from tax increments paid by
145.31properties in any district (measured over the life of the district) may be expended on activities
145.32outside the district but within the project area.
146.1    (f) For a soil deficiency district:
146.2    (1) increments may be collected through 20 years after the receipt by the authority of
146.3the first increment from the district; and
146.4    (2) except as otherwise provided in this subdivision, increments may be used only to:
146.5    (i) acquire parcels on which the improvements described in item (ii) will occur;
146.6    (ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional
146.7cost of installing public improvements directly caused by the deficiencies; and
146.8    (iii) pay for the administrative expenses of the authority allocable to the district.
146.9    (g) Increments spent for any infrastructure costs, whether inside a district or outside a
146.10district but within the project area, are deemed to satisfy the requirements of paragraph (f)
146.11and Minnesota Statutes, section 469.176, subdivisions 4b, 4c, and 4j.
146.12    (h) Increments from any district may not be used to pay the costs of landfill closure or
146.13public infrastructure located on the following parcels within the plat known as Burnsville
146.14Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D.
146.15    (i) The authority to approve tax increment financing plans to establish tax increment
146.16financing districts under this section expires on December 31, 2018 2020.
146.17EFFECTIVE DATE.This section is effective upon approval by the governing body
146.18of the city of Burnsville and compliance with the requirements of Minnesota Statutes, section
146.19645.021.

146.20    Sec. 6. Laws 2009, chapter 88, article 5, section 17, as amended by Laws 2010, chapter
146.21382, section 84, is amended to read:
146.22    Sec. 17. SEAWAY PORT AUTHORITY OF DULUTH; TAX INCREMENT
146.23FINANCING DISTRICT; SPECIAL RULES.
146.24(a) If the Seaway Port Authority of Duluth adopts a tax increment financing plan and
146.25the governing body of the city of Duluth approves the plan for the tax increment financing
146.26district consisting of one or more parcels identified as: 010-2730-00010; 010-2730-00020;
146.27010-2730-00040; 010-2730-00050; 010-2730-00070; 010-2730-00080; 010-2730-00090;
146.28010-2730-00100; 010-02730-00120; 010-02730-00130; 010-02730-00140; 010-2730-00160;
146.29010-2730-00180; 010-2730-00200; 010-2730-00300; 010-02730-00320; 010-2746-01250;
146.30010-2746-1330; 010-2746-01340; 010-2746-01350; 010-2746-1440; 010-2746-1380;
146.31010-2746-01490; 010-2746-01500; 010-2746-01510; 010-2746-01520; 010-2746-01530;
146.32010-2746-01540; 010-2746-01550; 010-2746-01560; 010-2746-01570; 010-2746-01580;
147.1010-2746-01590; 010-3300-4560; 010-3300-4565; 010-3300-04570; 010-3300-04580;
147.2010-3300-04640; 010-3300-04645; and 010-3300-04650, the five-year rule under Minnesota
147.3Statutes, section 469.1763, subdivision 3, that activities must be undertaken within a five-year
147.4period from the date of certification of the tax increment financing district, must be
147.5considered to be met if the activities are undertaken within five years after the date all
147.6qualifying parcels are delisted from the Federal Superfund list.
147.7(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, beginning
147.8in the sixth year following certification of the district requirement, will begin in the sixth
147.9year following the date all qualifying parcels are delisted from the Federal Superfund list.
147.10(c) The action required under Minnesota Statutes, section 469.176, subdivision 6, are
147.11satisfied if the action is commenced within four years after the date all qualifying parcels
147.12are delisted from the Federal Superfund list and evidence of the action required is submitted
147.13to the county auditor by February 1 of the fifth year following the year in which all qualifying
147.14parcels are delisted from the Federal Superfund list.
147.15(d) For purposes of this section, "qualifying parcels" means United States Steel parcels
147.16listed in paragraph (a) and shown by the Minnesota Pollution Control Agency as part of the
147.17USS St. Louis River-U.S. Steel Superfund Site (USEPA OU 02) that are included in the
147.18tax increment financing district.
147.19(e) In addition to the reporting requirements of Minnesota Statutes, section 469.175,
147.20subdivision 5 , the Seaway Port Authority of Duluth shall report the status of all parcels
147.21listed in paragraph (a) and shown as part of the USS St. Louis River-U.S. Steel Superfund
147.22Site (USEPA OU 02). The status report must show the parcel numbers, the listed or delisted
147.23status, and if delisted, the delisting date.
147.24(f) Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, or any other
147.25law to the contrary, the Seaway Port Authority of Duluth may establish an interfund loan
147.26program before approval of the tax increment financing plan for or the establishment of the
147.27district authorized by this section. The authority may make loans under this program. The
147.28proceeds of the loans may be used for any permitted use of increments under this law or
147.29Minnesota Statutes, section 469.176, for the district and may be repaid with increments
147.30from the district established under this section. This paragraph applies to any action
147.31authorized by the Seaway Port Authority of Duluth on or after March 25, 2010.
147.32EFFECTIVE DATE.This section is effective the day after the governing body of the
147.33city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021,
147.34subdivision 3.

148.1    Sec. 7. Laws 2014, chapter 308, article 6, section 8, subdivision 1, is amended to read:
148.2    Subdivision 1. Authority to create districts. (a) The governing body of the city of
148.3Edina or its development authority may establish one or more tax increment financing
148.4housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries
148.5exist on March 31, 2014.
148.6(b) The authority to request certification of districts under this section expires on June
148.730, 2017 December 31, 2019.
148.8EFFECTIVE DATE.This section is effective upon compliance by the governing body
148.9of the city of Edina with the requirements of Minnesota Statutes, section 645.021,
148.10subdivisions 2 and 3.

148.11    Sec. 8. Laws 2014, chapter 308, article 6, section 9, is amended to read:
148.12    Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.
148.13    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have
148.14the meanings given them.
148.15(b) "City" means the city of Maple Grove.
148.16(c) "Project area" means all or a portion of the area in the city commencing at a point
148.17130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of Section
148.1823, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way
148.19line of Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock
148.20Lane to a point on the west line of the east one-half of the Southeast Quarter of section 23,
148.21thence south along said west line a distance of 1,200 feet; thence easterly to the east line of
148.22Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees
148.23East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West a distance
148.24of 650 feet; thence northerly to a point on the northerly right-of-way line of 81st Avenue
148.25North, 650 feet westerly measured at right angles, from the east line of the Northwest Quarter
148.26of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to the west
148.27line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55
148.28degrees West to the south line of the Northwest Quarter of the Northwest Quarter of Section
148.2924; thence West along said south line to the east right-of-way line of Zachary Lane; thence
148.30North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1,
148.31Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of said
148.32Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition; thence
148.33South along the east line of said Outlot A and its southerly extension to the south right-of-way
149.1line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way
149.2line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter of
149.3Section 24; thence South along said east line to the north line of the South Half of the
149.4Northeast Quarter of Section 24; thence East along said north line to the westerly right-of-way
149.5line of Jefferson Highway North; thence southerly along the westerly right-of-way line of
149.6Jefferson Highway to the centerline of CSAH 130; thence continuing South along the west
149.7right-of-way line of Pilgrim Lane North to the westerly extension of the north line of Outlot
149.8A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park North
149.9Fourth Addition to the northeast corner of said Outlot A; thence southerly along the east
149.10line of said Outlot A to the southeast corner of said Outlot A; thence easterly along the south
149.11line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line of State
149.12Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the
149.13westerly right-of-way line of State Highway 169 and the northerly right-of-way line of
149.14Interstate 694 to its intersection with the southerly extension of the easterly right-of-way
149.15line of Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary
149.16Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence
149.17westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning
149.18and there terminating, provided that the project area includes the rights-of-way for all present
149.19and future highway interchanges abutting the area described in this paragraph, and may
149.20include any additional property necessary to cause the property included in the tax increment
149.21financing district to consist of complete parcels.
149.22(d) "Soil deficiency district" means a type of tax increment financing district consisting
149.23of a portion of the project area in which the city finds by resolution that the following
149.24conditions exist:
149.25(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in
149.26the district require substantial filling, grading, or other physical preparation for use; and
149.27(2) the estimated cost of the physical preparation under clause (1), but excluding costs
149.28directly related to roads as defined in Minnesota Statutes, section 160.01, and local
149.29improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, clauses
149.30(1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land before
149.31completion of the preparation.
149.32    Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment
149.33financing plan for a district, the rules under this section apply to a redevelopment district,
149.34renewal and renovation district, soil condition district, or soil deficiency district established
149.35by the city or a development authority of the city in the project area.
150.1(b) Prior to or upon the adoption of the first tax increment plan subject to the special
150.2rules under this subdivision, the city must find by resolution that parcels consisting of at
150.3least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way,
150.4are characterized by one or more of the following conditions:
150.5(1) peat or other soils with geotechnical deficiencies that impair development of
150.6commercial buildings or infrastructure;
150.7(2) soils or terrain that require substantial filling in order to permit the development of
150.8commercial buildings or infrastructure;
150.9(3) landfills, dumps, or similar deposits of municipal or private waste;
150.10(4) quarries or similar resource extraction sites;
150.11(5) floodway; and
150.12(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174,
150.13subdivision 10 .
150.14(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the
150.15relevant condition if at least 70 percent of the area of the parcel contains the relevant
150.16condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by
150.17substandard buildings if substandard buildings occupy at least 30 percent of the area of the
150.18parcel.
150.19(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is
150.20extended to eight years for any district, and Minnesota Statutes, section 469.1763, subdivision
150.214 , does not apply to any district.
150.22(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763,
150.23subdivision 2 , paragraph (a), not more than 40 percent of the total revenue derived from tax
150.24increments paid by properties in any district, measured over the life of the district, may be
150.25expended on activities outside the district but within the project area.
150.26(f) For a soil deficiency district:
150.27(1) increments may be collected through 20 years after the receipt by the authority of
150.28the first increment from the district;
150.29(2) increments may be used only to:
150.30(i) acquire parcels on which the improvements described in item (ii) will occur;
151.1(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional
151.2cost of installing public improvements directly caused by the deficiencies; and
151.3(iii) pay for the administrative expenses of the authority allocable to the district; and
151.4(3) any parcel acquired with increments from the district must be sold at no less than
151.5their fair market value.
151.6(g) Increments spent for any infrastructure costs, whether inside a district or outside a
151.7district but within the project area, are deemed to satisfy the requirements of Minnesota
151.8Statutes, section 469.176, subdivision 4j.
151.9(h) The authority to approve tax increment financing plans to establish tax increment
151.10financing districts under this section expires June 30, 2020.
151.11(i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use
151.12increments from a soil deficiency district to acquire parcels and for other infrastructure costs
151.13either inside or outside of the district, but within the project area, if the acquisition or
151.14infrastructure is for a qualified development. For purposes of this paragraph, a development
151.15is a qualified development only if all of the following requirements are satisfied:
151.16(1) the city finds, by resolution, that the land acquisition and infrastructure are undertaken
151.17primarily to serve the development;
151.18(2) the city has a binding, written commitment and adequate financial assurances from
151.19the developer that the development will be constructed; and
151.20(3) the development does not consist of retail trade or housing improvements.
151.21EFFECTIVE DATE.This section is effective upon approval by the governing body
151.22of the city of Maple Grove and its compliance with the requirements of Minnesota Statutes,
151.23section 645.021.

151.24    Sec. 9. CITY OF ANOKA; TAX INCREMENT FINANCING; FIVE-YEAR RULE
151.25EXTENSION.
151.26For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), the
151.27city of Anoka's Greens of Anoka redevelopment tax increment financing district is deemed
151.28to be certified on June 29, 2012, rather than its actual certification date of July 2, 2012, and
151.29the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4, apply as if
151.30the district were certified on that date.
152.1EFFECTIVE DATE.This section is effective upon approval by the governing body
152.2of the city of Anoka and upon compliance by the city with Minnesota Statutes, section
152.3645.021, subdivisions 2 and 3.

152.4    Sec. 10. CITY OF COON RAPIDS; TAX INCREMENT FINANCING; EXTENSION
152.5OF DISTRICT.
152.6Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision 1b,
152.7or any other law to the contrary, the city of Coon Rapids may collect tax increment from
152.8District 6-1 Port Riverwalk through December 31, 2038.
152.9EFFECTIVE DATE.This section is effective upon compliance by the governing bodies
152.10of the city of Coon Rapids, Anoka County, and Independent School District No. 11 with
152.11the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021,
152.12subdivision 3.

152.13    Sec. 11. CITY OF COTTAGE GROVE; TAX INCREMENT FINANCING;
152.14FIVE-YEAR RULE EXTENSION.
152.15The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities
152.16must be undertaken within a five-year period from the date of certification of a tax increment
152.17financing district, is considered to be met for Tax Increment Financing District No. 1-12
152.18(Gateway North), administered by the Cottage Grove Economic Development Authority,
152.19if the activities are undertaken prior to January 1, 2017.
152.20EFFECTIVE DATE.This section is effective upon compliance by the chief clerical
152.21officer of the governing body of the city of Cottage Grove with the requirements of Minnesota
152.22Statutes, section 645.021, subdivisions 2 and 3.

152.23    Sec. 12. CITY OF EDINA; TAX INCREMENT FINANCING; APPROVAL OF 2014
152.24SPECIAL LAW.
152.25Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision 3,
152.26the chief clerical officer of the city of Edina must file with the secretary of state certificate
152.27of approval of Laws 2014, chapter 308, article 6, section 8, by December 31, 2016, and, if
152.28the certificate is so filed and the requirements of Minnesota Statutes, section 645.021,
152.29subdivision 3, are otherwise complied with, the special law is deemed approved, and all
152.30actions taken by the city before the effective date of this section in reliance on Laws 2014,
152.31chapter 308, article 6, section 8, are deemed consistent with Laws 2014, chapter 308, article
152.326, section 8, and this act.
153.1EFFECTIVE DATE.This section is effective the day following final enactment without
153.2local approval as an amendment to the provisions of Laws 2014, chapter 308, article 6,
153.3section 8.

153.4    Sec. 13. CITY OF MOORHEAD; TAX INCREMENT FINANCING; FIVE-YEAR
153.5RULE EXTENSION.
153.6For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), the
153.7city of Moorhead's 1st Avenue North (Central Corridors) Redevelopment TIF district is
153.8deemed to be certified on June 29, 2012, rather than its actual certification date of July 12,
153.92012, and Minnesota Statutes, section 469.1763, subdivisions 3 and 4, apply as if the district
153.10were certified on that date.
153.11EFFECTIVE DATE.This section is effective upon approval by the governing body
153.12of the city of Moorhead and upon compliance by the city with Minnesota Statutes, section
153.13645.021, subdivisions 2 and 3.

153.14    Sec. 14. CITY OF RICHFIELD; TAX INCREMENT FINANCING; EXTENSION
153.15OF DISTRICT.
153.16Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other law
153.17to the contrary, the city of Richfield and the Housing and Redevelopment Authority in and
153.18for the city of Richfield may elect to extend the duration limit of the redevelopment tax
153.19increment financing district known as the Cedar Avenue Tax Increment Financing District
153.20established by Laws 2005, chapter 152, article 2, section 25, by ten years.
153.21EFFECTIVE DATE.This section is effective upon compliance by the city of Richfield,
153.22Hennepin County, and Independent School District No. 280 with the requirements of
153.23Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, subdivisions 2 and 3.

153.24    Sec. 15. CITY OF RICHFIELD; TAX INCREMENT FINANCING; FIVE-YEAR
153.25RULE EXTENSION.
153.26The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that activities
153.27must be undertaken within a five-year period from the date of certification of a tax increment
153.28financing district, are considered to be met for the Lyndale Gardens Tax Increment Financing
153.29District established by the city of Richfield and the housing and redevelopment authority
153.30in and for the city of Richfield if the activities are undertaken within seven years from the
153.31date of certification.
154.1EFFECTIVE DATE.This section is effective upon the city of Richfield's compliance
154.2with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021,
154.3subdivisions 2 and 3.

154.4    Sec. 16. CITY OF ST. LOUIS PARK; TAX INCREMENT FINANCING; POOLING
154.5PERCENTAGE INCREASE.
154.6For purposes of the Elmwood Village Tax Increment Financing District in the city of
154.7St. Louis Park, including the duration extension authorized by Laws 2009, chapter 88, article
154.85, section 19, the permitted percentage of increments that may be expended on activities
154.9outside the district under Minnesota Statutes, section 469.1763, subdivision 2, is increased
154.10to 30 percent for the district.
154.11EFFECTIVE DATE.This section is effective upon compliance by the governing body
154.12of the city of St. Louis Park with the requirements of Minnesota Statutes, section 645.021,
154.13subdivision 3.

154.14    Sec. 17. CITY OF ST. PAUL; TAX INCREMENT FINANCING; FORD SITE
154.15REDEVELOPMENT.
154.16(a) For purposes of computing the duration limits under Minnesota Statutes, section
154.17469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul
154.18may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing
154.19District. This authority is limited to the first four years of increment or increments derived
154.20from taxes payable in 2023, whichever occurs first.
154.21(b) If the city elects to waive receipt of increment under paragraph (a), for purposes of
154.22applying any limits based on when the district was certified under Minnesota Statutes,
154.23section 469.176, subdivision 6, or 469.1763, the date of certification for the district is deemed
154.24to be January 2 of the property tax assessment year for which increment is first received
154.25under the waiver.
154.26EFFECTIVE DATE.This section is effective July 1, 2017, without local approval
154.27under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).

154.28    Sec. 18. WASHINGTON COUNTY; TAX INCREMENT FINANCING; SPECIAL
154.29RULES AUTHORIZATION.
154.30(a) If Washington County elects, upon the adoption of a tax increment financing plan
154.31for a district, the rules under this section apply to one or more tax increment financing
155.1districts established by the county or the community development agency of the county.
155.2The area within which the tax increment districts may be created is located in the city of
155.3Newport and is south of marked Interstate Highway 494, north of 15th Street extended to
155.4the Mississippi River, east of the Mississippi River, and west of marked Trunk Highway
155.561 and the adjacent rights-of-way and shall be referred to as the "Newport Red Rock Crossing
155.6Project Area" or "project area."
155.7(b) The requirements for qualifying a redevelopment district under Minnesota Statutes,
155.8section 469.174, subdivision 10, do not apply to the parcels identified by parcel identification
155.9numbers: 2602822440051, 260282244050, 260282244049, 260282244048, 2602822440046,
155.102602822440045, 260282244044, 2602822440043, 2602822440026, 2602822440025,
155.11260282244024, and 2602822440023, which are deemed substandard for the purpose of
155.12qualifying the district as a redevelopment district.
155.13(c) Increments spent outside a district shall only be spent within the project area and on
155.14costs described in Minnesota Statutes, section 469.176, subdivision 4j.
155.15(d) Notwithstanding anything to the contrary in Minnesota Statutes, section 469.1763,
155.16subdivision 2, paragraph (a), not more than 30 percent of the total revenue derived from tax
155.17increments paid by properties in any district, measured over the life of the district, may be
155.18expended on activities outside the district but within the project area. The five-year rule
155.19under Minnesota Statutes, section 469.1763, subdivision 3, applies as if the limit is nine
155.20years.
155.21(e) The authority to approve a tax increment financing plan and to establish a tax
155.22increment financing district under this section expires December 31, 2027.
155.23EFFECTIVE DATE.This section is effective and shall retroactively include the
155.24redevelopment district in the project area approved by Washington County on November
155.258, 2016, upon approval by the governing body of the city of Newport and Washington
155.26County and upon compliance by the county with Minnesota Statutes, section 645.021,
155.27subdivision 3.

155.28ARTICLE 7

155.29PUBLIC FINANCE

155.30    Section 1. Minnesota Statutes 2016, section 366.095, subdivision 1, is amended to read:
155.31    Subdivision 1. Certificates of indebtedness. The town board may issue certificates of
155.32indebtedness within the debt limits for a town purpose otherwise authorized by law. The
155.33certificates shall be payable in not more than ten years and be issued on the terms and in
156.1the manner as the board may determine, provided that notes issued for projects that eliminate
156.2R-22, as defined in section 240A.09, paragraph (b), clause (2), must be payable in not more
156.3than 20 years. If the amount of the certificates to be issued exceeds 0.25 percent of the
156.4estimated market value of the town, they shall not be issued for at least ten days after
156.5publication in a newspaper of general circulation in the town of the board's resolution
156.6determining to issue them. If within that time, a petition asking for an election on the
156.7proposition signed by voters equal to ten percent of the number of voters at the last regular
156.8town election is filed with the clerk, the certificates shall not be issued until their issuance
156.9has been approved by a majority of the votes cast on the question at a regular or special
156.10election. A tax levy shall be made to pay the principal and interest on the certificates as in
156.11the case of bonds.

156.12    Sec. 2. Minnesota Statutes 2016, section 383B.117, subdivision 2, is amended to read:
156.13    Subd. 2. Equipment acquisition; capital notes. The board may, by resolution and
156.14without public referendum, issue capital notes within existing debt limits for the purpose
156.15of purchasing ambulance and other medical equipment, road construction or maintenance
156.16equipment, public safety equipment and other capital equipment having an expected useful
156.17life at least equal to the term of the notes issued. The notes shall be payable in not more
156.18than ten years and shall be issued on terms and in a manner as the board determines, provided
156.19that notes issued for projects that eliminate R-22, as defined in section 240A.09, paragraph
156.20(b), clause (2), must be payable in not more than 20 years. The total principal amount of
156.21the notes issued for any fiscal year shall not exceed one percent of the total annual budget
156.22for that year and shall be issued solely for the purchases authorized in this subdivision. A
156.23tax levy shall be made for the payment of the principal and interest on such notes as in the
156.24case of bonds. For purposes of this subdivision, "equipment" includes computer hardware
156.25and software, whether bundled with machinery or equipment or unbundled. For purposes
156.26of this subdivision, the term "medical equipment" includes computer hardware and software
156.27and other intellectual property for use in medical diagnosis, medical procedures, research,
156.28record keeping, billing, and other hospital applications, together with application development
156.29services and training related to the use of the computer hardware and software and other
156.30intellectual property, all without regard to their useful life. For purposes of determining the
156.31amount of capital notes which the county may issue in any year, the budget of the county
156.32and Hennepin Healthcare System, Inc. shall be combined and the notes issuable under this
156.33subdivision shall be in addition to obligations issuable under section 373.01, subdivision
156.343 .

157.1    Sec. 3. Minnesota Statutes 2016, section 410.32, is amended to read:
157.2410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
157.3    (a) Notwithstanding any contrary provision of other law or charter, a home rule charter
157.4city may, by resolution and without public referendum, issue capital notes subject to the
157.5city debt limit to purchase capital equipment.
157.6    (b) For purposes of this section, "capital equipment" means:
157.7    (1) public safety equipment, ambulance and other medical equipment, road construction
157.8and maintenance equipment, and other capital equipment; and
157.9    (2) computer hardware and software, whether bundled with machinery or equipment or
157.10unbundled, together with application development services and training related to the use
157.11of the computer hardware and software.
157.12    (c) The equipment or software must have an expected useful life at least as long as the
157.13term of the notes.
157.14    (d) The notes shall be payable in not more than ten years and be issued on terms and in
157.15the manner the city determines, provided that notes issued for projects that eliminate R-22,
157.16as defined in section 240A.09, paragraph (b), clause (2), must be payable in not more than
157.1720 years. The total principal amount of the capital notes issued in a fiscal year shall not
157.18exceed 0.03 percent of the estimated market value of taxable property in the city for that
157.19year.
157.20    (e) A tax levy shall be made for the payment of the principal and interest on the notes,
157.21in accordance with section 475.61, as in the case of bonds.
157.22    (f) Notes issued under this section shall require an affirmative vote of two-thirds of the
157.23governing body of the city.
157.24    (g) Notwithstanding a contrary provision of other law or charter, a home rule charter
157.25city may also issue capital notes subject to its debt limit in the manner and subject to the
157.26limitations applicable to statutory cities pursuant to section 412.301.

157.27    Sec. 4. Minnesota Statutes 2016, section 412.301, is amended to read:
157.28412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
157.29    (a) The council may issue certificates of indebtedness or capital notes subject to the city
157.30debt limits to purchase capital equipment.
157.31    (b) For purposes of this section, "capital equipment" means:
158.1    (1) public safety equipment, ambulance and other medical equipment, road construction
158.2and maintenance equipment, and other capital equipment; and
158.3    (2) computer hardware and software, whether bundled with machinery or equipment or
158.4unbundled, together with application development services and training related to the use
158.5of the computer hardware or software.
158.6    (c) The equipment or software must have an expected useful life at least as long as the
158.7terms of the certificates or notes.
158.8    (d) Such certificates or notes shall be payable in not more than ten years and shall be
158.9issued on such terms and in such manner as the council may determine, provided, however,
158.10that notes issued for projects that eliminate R-22, as defined in section 240A.09, paragraph
158.11(b), clause (2), must be payable in not more than 20 years.
158.12    (e) If the amount of the certificates or notes to be issued to finance any such purchase
158.13exceeds 0.25 percent of the estimated market value of taxable property in the city, they shall
158.14not be issued for at least ten days after publication in the official newspaper of a council
158.15resolution determining to issue them; and if before the end of that time, a petition asking
158.16for an election on the proposition signed by voters equal to ten percent of the number of
158.17voters at the last regular municipal election is filed with the clerk, such certificates or notes
158.18shall not be issued until the proposition of their issuance has been approved by a majority
158.19of the votes cast on the question at a regular or special election.
158.20    (f) A tax levy shall be made for the payment of the principal and interest on such
158.21certificates or notes, in accordance with section 475.61, as in the case of bonds.

158.22    Sec. 5. Minnesota Statutes 2016, section 469.034, subdivision 2, is amended to read:
158.23    Subd. 2. General obligation revenue bonds. (a) An authority may pledge the general
158.24obligation of the general jurisdiction governmental unit as additional security for bonds
158.25payable from income or revenues of the project or the authority. The authority must find
158.26that the pledged revenues will equal or exceed 110 percent of the principal and interest due
158.27on the bonds for each year. The proceeds of the bonds must be used for a qualified housing
158.28development project or projects. The obligations must be issued and sold in the manner and
158.29following the procedures provided by chapter 475, except the obligations are not subject to
158.30approval by the electors, and the maturities may extend to not more than 35 years for
158.31obligations sold to finance housing for the elderly and 40 years for other obligations issued
158.32under this subdivision. The authority is the municipality for purposes of chapter 475.
159.1    (b) The principal amount of the issue must be approved by the governing body of the
159.2general jurisdiction governmental unit whose general obligation is pledged. Public hearings
159.3must be held on issuance of the obligations by both the authority and the general jurisdiction
159.4governmental unit. The hearings must be held at least 15 days, but not more than 120 days,
159.5before the sale of the obligations.
159.6    (c) The maximum amount of general obligation bonds that may be issued and outstanding
159.7under this section equals the greater of (1) one-half of one percent of the estimated market
159.8value of the general jurisdiction governmental unit whose general obligation is pledged, or
159.9(2) $3,000,000 $5,000,000. In the case of county or multicounty general obligation bonds,
159.10the outstanding general obligation bonds of all cities in the county or counties issued under
159.11this subdivision must be added in calculating the limit under clause (1).
159.12    (d) "General jurisdiction governmental unit" means the city in which the housing
159.13development project is located. In the case of a county or multicounty authority, the county
159.14or counties may act as the general jurisdiction governmental unit. In the case of a multicounty
159.15authority, the pledge of the general obligation is a pledge of a tax on the taxable property
159.16in each of the counties.
159.17    (e) "Qualified housing development project" means a housing development project
159.18providing housing either for the elderly or for individuals and families with incomes not
159.19greater than 80 percent of the median family income as estimated by the United States
159.20Department of Housing and Urban Development for the standard metropolitan statistical
159.21area or the nonmetropolitan county in which the project is located. The project must be
159.22owned for the term of the bonds either by the authority or by a limited partnership or other
159.23entity in which the authority or another entity under the sole control of the authority is the
159.24sole general partner and the partnership or other entity must receive (1) an allocation from
159.25the Department of Management and Budget or an entitlement issuer of tax-exempt bonding
159.26authority for the project and a preliminary determination by the Minnesota Housing Finance
159.27Agency or the applicable suballocator of tax credits that the project will qualify for four
159.28percent low-income housing tax credits or (2) a reservation of nine percent low-income
159.29housing tax credits from the Minnesota Housing Finance Agency or a suballocator of tax
159.30credits for the project. A qualified housing development project may admit nonelderly
159.31individuals and families with higher incomes if:
159.32    (1) three years have passed since initial occupancy;
160.1    (2) the authority finds the project is experiencing unanticipated vacancies resulting in
160.2insufficient revenues, because of changes in population or other unforeseen circumstances
160.3that occurred after the initial finding of adequate revenues; and
160.4    (3) the authority finds a tax levy or payment from general assets of the general jurisdiction
160.5governmental unit will be necessary to pay debt service on the bonds if higher income
160.6individuals or families are not admitted.
160.7    (f) The authority may issue bonds to refund bonds issued under this subdivision in
160.8accordance with section 475.67. The finding of the adequacy of pledged revenues required
160.9by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the
160.10issuance of refunding bonds. This paragraph applies to refunding bonds issued on and after
160.11July 1, 1992.

160.12    Sec. 6. Minnesota Statutes 2016, section 469.101, subdivision 1, is amended to read:
160.13    Subdivision 1. Establishment. An economic development authority may create and
160.14define the boundaries of economic development districts at any place or places within the
160.15city, except that the district boundaries must be contiguous, and may use the powers granted
160.16in sections 469.090 to 469.108 to carry out its purposes. First the authority must hold a
160.17public hearing on the matter. At least ten days before the hearing, the authority shall publish
160.18notice of the hearing in a daily newspaper of general circulation in the city. Also, the authority
160.19shall find that an economic development district is proper and desirable to establish and
160.20develop within the city.

160.21    Sec. 7. Minnesota Statutes 2016, section 475.58, subdivision 3b, is amended to read:
160.22    Subd. 3b. Street reconstruction and bituminous overlays. (a) A municipality may,
160.23without regard to the election requirement under subdivision 1, issue and sell obligations
160.24for street reconstruction or bituminous overlays, if the following conditions are met:
160.25    (1) the streets are reconstructed or overlaid under a street reconstruction or overlay plan
160.26that describes the street reconstruction or overlay to be financed, the estimated costs, and
160.27any planned reconstruction or overlay of other streets in the municipality over the next five
160.28years, and the plan and issuance of the obligations has been approved by a vote of all a
160.29majority of the members of the governing body present at the meeting following a public
160.30hearing for which notice has been published in the official newspaper at least ten days but
160.31not more than 28 days prior to the hearing; and
161.1    (2) if a petition requesting a vote on the issuance is signed by voters equal to five percent
161.2of the votes cast in the last municipal general election and is filed with the municipal clerk
161.3within 30 days of the public hearing, the municipality may issue the bonds only after
161.4obtaining the approval of a majority of the voters voting on the question of the issuance of
161.5the obligations. If the municipality elects not to submit the question to the voters, the
161.6municipality shall not propose the issuance of bonds under this section for the same purpose
161.7and in the same amount for a period of 365 days from the date of receipt of the petition. If
161.8the question of issuing the bonds is submitted and not approved by the voters, the provisions
161.9of section 475.58, subdivision 1a, shall apply.
161.10    (b) Obligations issued under this subdivision are subject to the debt limit of the
161.11municipality and are not excluded from net debt under section 475.51, subdivision 4.
161.12    (c) For purposes of this subdivision, street reconstruction and bituminous overlays
161.13includes utility replacement and relocation and other activities incidental to the street
161.14reconstruction, turn lanes and other improvements having a substantial public safety function,
161.15realignments, other modifications to intersect with state and county roads, and the local
161.16share of state and county road projects. For purposes of this subdivision, "street
161.17reconstruction" includes expenditures for street reconstruction that have been incurred by
161.18a municipality before approval of a street reconstruction plan, if such expenditures are
161.19included in a street reconstruction plan approved on or before the date of the public hearing
161.20under paragraph (a), clause (1), regarding issuance of bonds for such expenditures.
161.21    (d) Except in the case of turn lanes, safety improvements, realignments, intersection
161.22modifications, and the local share of state and county road projects, street reconstruction
161.23and bituminous overlays does not include the portion of project cost allocable to widening
161.24a street or adding curbs and gutters where none previously existed.

161.25    Sec. 8. Minnesota Statutes 2016, section 475.60, subdivision 2, is amended to read:
161.26    Subd. 2. Requirements waived. The requirements as to public sale shall not apply:
161.27(1) to obligations issued under the provisions of a home rule charter or of a law
161.28specifically authorizing a different method of sale, or authorizing them to be issued in such
161.29manner or on such terms and conditions as the governing body may determine;
161.30(2) to obligations sold by an issuer in an amount not exceeding the total sum of
161.31$1,200,000 in any 12-month period;
162.1(3) to obligations issued by a governing body other than a school board in anticipation
162.2of the collection of taxes or other revenues appropriated for expenditure in a single year, if
162.3sold in accordance with the most favorable of two or more proposals solicited privately;
162.4(4) to obligations sold to any board, department, or agency of the United States of
162.5America or of the state of Minnesota, in accordance with rules or regulations promulgated
162.6by such board, department, or agency;
162.7(5) to obligations issued to fund pension and retirement fund liabilities under section
162.8475.52, subdivision 6 , obligations issued with tender options under section 475.54,
162.9subdivision 5a , crossover refunding obligations referred to in section 475.67, subdivision
162.1013 , and any issue of obligations comprised in whole or in part of obligations bearing interest
162.11at a rate or rates which vary periodically referred to in section 475.56;
162.12(6) to obligations to be issued for a purpose, in a manner, and upon terms and conditions
162.13authorized by law, if the governing body of the municipality, on the advice of bond counsel
162.14or special tax counsel, determines that interest on the obligations cannot be represented to
162.15be excluded from gross income for purposes of federal income taxation;
162.16(7) to obligations issued in the form of an installment purchase contract, lease purchase
162.17agreement, or other similar agreement;
162.18(8) to obligations sold under a bond reinvestment program; and
162.19(9) if the municipality has retained an independent financial advisor municipal adviser,
162.20obligations which the governing body determines shall be sold by private negotiation.

162.21ARTICLE 8

162.22MISCELLANEOUS

162.23    Section 1. Minnesota Statutes 2016, section 287.08, is amended to read:
162.24287.08 TAX, HOW PAYABLE; RECEIPTS.
162.25    (a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of any
162.26county in this state in which the real property or some part is located at or before the time
162.27of filing the mortgage for record. The treasurer shall endorse receipt on the mortgage and
162.28the receipt is conclusive proof that the tax has been paid in the amount stated and authorizes
162.29any county recorder or registrar of titles to record the mortgage. Its form, in substance, shall
162.30be "registration tax hereon of ..................... dollars paid." If the mortgage is exempt from
162.31taxation the endorsement shall, in substance, be "exempt from registration tax." In either
162.32case the receipt must be signed by the treasurer. In case the treasurer is unable to determine
163.1whether a claim of exemption should be allowed, the tax must be paid as in the case of a
163.2taxable mortgage. For documents submitted electronically, the endorsements and tax amount
163.3shall be affixed electronically and no signature by the treasurer will be required. The actual
163.4payment method must be arranged in advance between the submitter and the receiving
163.5county.
163.6    (b) The county treasurer may refund in whole or in part any mortgage registry tax
163.7overpayment if a written application by the taxpayer is submitted to the county treasurer
163.8within 3-1/2 years from the date of the overpayment. If the county has not issued a denial
163.9of the application, the taxpayer may bring an action in Tax Court in the county in which
163.10the tax was paid at any time after the expiration of six months from the time that the
163.11application was submitted. A denial of refund may be appealed within 60 days from the
163.12date of the denial by bringing an action in Tax Court in the county in which the tax was
163.13paid. The action is commenced by the serving of a petition for relief on the county treasurer,
163.14and by filing a copy with the court. The county attorney shall defend the action. The county
163.15treasurer shall notify the treasurer of each county that has or would receive a portion of the
163.16tax as paid.
163.17    (c) If the county treasurer determines a refund should be paid, or if a refund is ordered
163.18by the court, the county treasurer of each county that actually received a portion of the tax
163.19shall immediately pay a proportionate share of three percent of the refund using any available
163.20county funds. The county treasurer of each county that received, or would have received,
163.21a portion of the tax shall also pay their county's proportionate share of the remaining 97
163.22percent of the court-ordered refund on or before the 20th day of the following month using
163.23solely the mortgage registry tax funds that would be paid to the commissioner of revenue
163.24on that date under section 287.12. If the funds on hand under this procedure are insufficient
163.25to fully fund 97 percent of the court-ordered refund, the county treasurer of the county in
163.26which the action was brought shall file a claim with the commissioner of revenue under
163.27section 16A.48 for the remaining portion of 97 percent of the refund, and shall pay over the
163.28remaining portion upon receipt of a warrant from the state issued pursuant to the claim.
163.29    (d) When any mortgage covers real property located in more than one county in this
163.30state the total tax must be paid to the treasurer of the county where the mortgage is first
163.31presented for recording, and the payment must be receipted as provided in paragraph (a).
163.32If the principal debt or obligation secured by such a multiple county mortgage exceeds
163.33$10,000,000, the tax collected shall be forwarded by the county treasurer receiving it to the
163.34commissioner of revenue and the nonstate portion of the tax must be divided and paid over
163.35by the county treasurer receiving it commissioner of revenue, on or before the 20th day of
164.1each month after receipt, to the county or counties entitled in the ratio that the estimated
164.2market value of the real property covered by the mortgage in each county bears to the
164.3estimated market value of all the real property in this state described in the mortgage. In
164.4making the division and payment the county treasurer commissioner of revenue shall send
164.5a statement giving the description of the real property described in the mortgage and the
164.6estimated market value of the part located in each county. For this purpose, the treasurer of
164.7any county commissioner of revenue may require the treasurer of any other county to certify
164.8to the former the estimated market value of any tract of real property in any mortgage in
164.9the county.
164.10    (e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12. The mortgagee
164.11may undertake to collect and remit the tax on behalf of the mortgagor. If the mortgagee
164.12collects money from the mortgagor to remit the tax on behalf of the mortgagor, the mortgagee
164.13has a fiduciary duty to remit the tax on behalf of the mortgagor as to the amount of the tax
164.14collected for that purpose and the mortgagor is relieved of any further obligation to pay the
164.15tax as to the amount collected by the mortgagee for this purpose.

164.16    Sec. 2. Minnesota Statutes 2016, section 295.53, subdivision 1, is amended to read:
164.17    Subdivision 1. Exemptions. (a) The following payments are excluded from the gross
164.18revenues subject to the hospital, surgical center, or health care provider taxes under sections
164.19295.50 to 295.59:
164.20(1) payments received for services provided under the Medicare program, including
164.21payments received from the government, and organizations governed by sections 1833 and
164.221876 of title XVIII of the federal Social Security Act, United States Code, title 42, section
164.231395, and enrollee deductibles, coinsurance, and co-payments, whether paid by the Medicare
164.24enrollee or by a Medicare supplemental coverage as defined in section 62A.011, subdivision
164.253 , clause (10), or by Medicaid payments under title XIX of the federal Social Security Act.
164.26Payments for services not covered by Medicare are taxable;
164.27(2) payments received for home health care services;
164.28(3) payments received from hospitals or surgical centers for goods and services on which
164.29liability for tax is imposed under section 295.52 or the source of funds for the payment is
164.30exempt under clause (1), (7), (10), or (14);
164.31(4) payments received from health care providers for goods and services on which
164.32liability for tax is imposed under this chapter or the source of funds for the payment is
164.33exempt under clause (1), (7), (10), or (14);
165.1(5) amounts paid for legend drugs, other than nutritional products and blood and blood
165.2components, to a wholesale drug distributor who is subject to tax under section 295.52,
165.3subdivision 3 , reduced by reimbursements received for legend drugs otherwise exempt
165.4under this chapter;
165.5(6) payments received by a health care provider or the wholly owned subsidiary of a
165.6health care provider for care provided outside Minnesota;
165.7(7) payments received from the chemical dependency fund under chapter 254B;
165.8(8) payments received in the nature of charitable donations that are not designated for
165.9providing patient services to a specific individual or group;
165.10(9) payments received for providing patient services incurred through a formal program
165.11of health care research conducted in conformity with federal regulations governing research
165.12on human subjects. Payments received from patients or from other persons paying on behalf
165.13of the patients are subject to tax;
165.14(10) payments received from any governmental agency for services benefiting the public,
165.15not including payments made by the government in its capacity as an employer or insurer
165.16or payments made by the government for services provided under general assistance medical
165.17care, the MinnesotaCare program, or the medical assistance program governed by title XIX
165.18of the federal Social Security Act, United States Code, title 42, sections 1396 to 1396v;
165.19(11) government payments received by the commissioner of human services for
165.20state-operated services;
165.21(12) payments received by a health care provider for hearing aids and related equipment
165.22or prescription eyewear delivered outside of Minnesota;
165.23(13) payments received by an educational institution from student tuition, student activity
165.24fees, health care service fees, government appropriations, donations, or grants, and for
165.25services identified in and provided under an individualized education program as defined
165.26in section 256B.0625 or Code of Federal Regulations, chapter 34, section 300.340(a). Fee
165.27for service payments and payments for extended coverage are taxable;
165.28(14) payments received under the federal Employees Health Benefits Act, United States
165.29Code, title 5, section 8909(f), as amended by the Omnibus Reconciliation Act of 1990.
165.30Enrollee deductibles, coinsurance, and co-payments are subject to tax; and
165.31(15) payments received under the federal Tricare program, Code of Federal Regulations,
165.32title 32, section 199.17(a)(7). Enrollee deductibles, coinsurance, and co-payments are subject
165.33to tax.
166.1(b) Payments received by wholesale drug distributors for legend drugs sold directly to
166.2veterinarians or veterinary bulk purchasing organizations are excluded from the gross
166.3revenues subject to the wholesale drug distributor tax under sections 295.50 to 295.59.
166.4(c) Supplemental or enhanced payments authorized under section 256B.19, subdivision
166.51c, 256B.196, or 256B.197 are excluded from gross revenues subject to the tax under sections
166.6295.50 to 295.59.
166.7EFFECTIVE DATE.This section is effective retroactively for gross revenues received
166.8on or after July 1, 2016.

166.9    Sec. 3. Minnesota Statutes 2016, section 296A.01, subdivision 7, is amended to read:
166.10    Subd. 7. Aviation gasoline. "Aviation gasoline" means any gasoline that is capable of
166.11use for the purpose of producing or generating used to produce or generate power for
166.12propelling internal combustion engine aircraft, that meets the specifications in ASTM
166.13specification D910-11, and that either.
166.14    Aviation gasoline includes any gasoline:
166.15    (1) is invoiced and billed by a producer, manufacturer, refiner, or blender to a distributor
166.16or dealer, by a distributor to a dealer or consumer, or by a dealer to consumer, as "aviation
166.17gasoline" that meets specifications in ASTM specification D910-16 or any other ASTM
166.18specification as gasoline appropriate for use in producing or generating power for propelling
166.19internal combustion engine aircraft; or
166.20    (2) whether or not invoiced and billed as provided in clause (1), is received, sold, stored,
166.21or withdrawn from storage by any person, to be used for the purpose of producing or
166.22generating power for propelling internal combustion engine aircraft sold to a dealer of
166.23aviation gasoline for dispensing directly into the fuel tank of an aircraft.
166.24EFFECTIVE DATE.This section is effective the day following final enactment except
166.25that the change to clause (2) is effective for sales and purchases made after June 30, 2017.

166.26    Sec. 4. Minnesota Statutes 2016, section 296A.01, subdivision 12, is amended to read:
166.27    Subd. 12. Compressed natural gas or CNG. "Compressed natural gas" or "CNG"
166.28means natural gas, primarily methane, condensed under high pressure and stored in specially
166.29designed storage tanks at between 2,000 and 3,600 pounds per square inch. For purposes
166.30of this chapter, the energy content of CNG is considered to be 1,000 900 BTUs per cubic
166.31foot.
167.1EFFECTIVE DATE.This section is effective for sales and purchases made after June
167.230, 2017.

167.3    Sec. 5. Minnesota Statutes 2016, section 296A.01, is amended by adding a subdivision to
167.4read:
167.5    Subd. 13a. Dealer of aviation gasoline. "Dealer of aviation gasoline" means any person
167.6who sells gasoline on the premises of an airport as defined under section 360.013, subdivision
167.739, to be dispensed directly into the fuel tank of an aircraft.
167.8EFFECTIVE DATE.This section is effective for sales and purchases made after June
167.930, 2017.

167.10    Sec. 6. Minnesota Statutes 2016, section 296A.07, subdivision 4, is amended to read:
167.11    Subd. 4. Exemptions. The provisions of subdivision 1 do not apply to gasoline or
167.12denatured ethanol purchased by:
167.13    (1) a transit system or transit provider receiving financial assistance or reimbursement
167.14under section 174.24, 256B.0625, subdivision 17, or 473.384;
167.15    (2) providers of transportation to recipients of medical assistance home and
167.16community-based services waivers enrolled in day programs, including adult day care,
167.17family adult day care, day treatment and habilitation, prevocational services, and structured
167.18day services;
167.19(3) an ambulance service licensed under chapter 144E;
167.20(4) providers of medical or dental services by a federally qualified health center, as
167.21defined under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus
167.22Budget Reconciliation Act of 1990, with a motor vehicle used exclusively as a mobile
167.23medical unit; or
167.24    (5) a licensed distributor to be delivered to a terminal for use in blending; or
167.25    (6) a dealer of aviation gasoline, but only to the extent that the gasoline is intended to
167.26be dispensed directly into the fuel tank of an aircraft.
167.27EFFECTIVE DATE.This section is effective for sales and purchases made after June
167.2830, 2017.

167.29    Sec. 7. Minnesota Statutes 2016, section 296A.08, subdivision 2, is amended to read:
167.30    Subd. 2. Rate of tax. The special fuel excise tax is imposed at the following rates:
168.1    (a) Liquefied petroleum gas or propane is taxed at the rate of 18.75 cents per gallon.
168.2    (b) Liquefied natural gas is taxed at the rate of 15 cents per gallon.
168.3    (c) Compressed natural gas is taxed at the rate of $2.174 $1.974 per thousand cubic feet;
168.4or 25 cents per gasoline equivalent. For purposes of this paragraph, "gasoline equivalent,"
168.5as defined by the National Conference on Weights and Measures, is 5.66 pounds of natural
168.6gas or 126.67 cubic feet.
168.7    (d) All other special fuel is taxed at the same rate as the gasoline excise tax as specified
168.8in section 296A.07, subdivision 2. The tax is payable in the form and manner prescribed
168.9by the commissioner.
168.10EFFECTIVE DATE.This section is effective for sales and purchases made after June
168.1130, 2017.

168.12    Sec. 8. Minnesota Statutes 2016, section 296A.15, subdivision 1, is amended to read:
168.13    Subdivision 1. Monthly gasoline report; shrinkage allowance. (a) Except as provided
168.14in paragraph (e), on or before the 23rd day of each month, every person who is required to
168.15pay a gasoline tax shall file with the commissioner a report, in the form and manner
168.16prescribed by the commissioner, showing the number of gallons of petroleum products
168.17received by the reporter during the preceding calendar month, and other information the
168.18commissioner may require. A written report is deemed to have been filed as required in this
168.19subdivision if postmarked on or before the 23rd day of the month in which the tax is payable.
168.20(b) The number of gallons of gasoline must be reported in United States standard liquid
168.21gallons, 231 cubic inches, except that the commissioner may upon written application and
168.22for cause shown permit the distributor to report the number of gallons of gasoline as corrected
168.23to a temperature of 60-degrees Fahrenheit. If the application is granted, all gasoline covered
168.24in the application and allowed by the commissioner must continue to be reported by the
168.25distributor on the adjusted basis for a period of one year from the date of the granting of
168.26the application. The number of gallons of petroleum products other than gasoline must be
168.27reported as originally invoiced. Each report must show separately the number of gallons of
168.28aviation gasoline received by the reporter during each calendar month and the number of
168.29gallons of gasoline sold to a dealer of aviation gasoline during each calendar month.
168.30(c) Each report must also include the amount of gasoline tax on gasoline received by
168.31the reporter during the preceding month. In computing the tax a deduction of 2.5 percent
168.32of the quantity of gasoline received by a distributor shall be made for evaporation and loss.
169.1At the time of reporting, the reporter shall submit satisfactory evidence that one-third of the
169.22.5 percent deduction has been credited or paid to dealers on quantities sold to them.
169.3(d) Each report shall contain a confession of judgment for the amount of the tax shown
169.4due to the extent not timely paid.
169.5(e) Under certain circumstances and with the approval of the commissioner, taxpayers
169.6may be allowed to file reports annually.
169.7EFFECTIVE DATE.This section is effective for sales and purchases made after June
169.830, 2017.

169.9    Sec. 9. Minnesota Statutes 2016, section 296A.15, subdivision 4, is amended to read:
169.10    Subd. 4. Failure to use or sell for intended purpose; report required. (a) Any person
169.11who buys aviation gasoline, including from a dealer of aviation gasoline, or special fuel for
169.12aircraft use, and who has paid the excise taxes due directly or indirectly through the amount
169.13of the tax being included in the price, or otherwise, and uses said gasoline or special fuel
169.14in motor vehicles or knowingly sells it to any person for use in motor vehicles shall, on or
169.15before the 23rd day of the month following that in which such gasoline or special fuel was
169.16so used or sold, report the fact of the use or sale to the commissioner in the form and manner
169.17prescribed by the commissioner.
169.18(b) Any person who buys gasoline other than aviation gasoline and who has paid the
169.19motor vehicle gasoline excise tax directly or indirectly through the amount of the tax being
169.20included in the price of the gasoline, or otherwise, who knowingly sells such gasoline to
169.21any person to be used for the purpose of producing or generating power for propelling
169.22aircraft, or who receives, stores, or withdraws from storage gasoline to be used for that
169.23purpose, shall, on or before the 23rd day of the month following that in which such gasoline
169.24was so sold, stored, or withdrawn from storage, report the fact of the sale, storage, or
169.25withdrawal from storage to the commissioner in the form and manner prescribed by the
169.26commissioner.
169.27EFFECTIVE DATE.This section is effective for sales and purchases made after June
169.2830, 2017.

169.29    Sec. 10. Minnesota Statutes 2016, section 296A.16, subdivision 2, is amended to read:
169.30    Subd. 2. Fuel used in other vehicle; claim for refund. Any person who buys and uses
169.31gasoline for a qualifying purpose other than use in motor vehicles, snowmobiles except as
169.32provided in clause (2), or motorboats, or special fuel for a qualifying purpose other than
170.1use in licensed motor vehicles, and who paid the tax directly or indirectly through the amount
170.2of the tax being included in the price of the gasoline or special fuel, or otherwise, shall be
170.3reimbursed and repaid the amount of the tax paid upon filing with the commissioner a claim
170.4for refund in the form and manner prescribed by the commissioner, and containing the
170.5information the commissioner shall require. By signing any such claim which is false or
170.6fraudulent, the applicant shall be subject to the penalties provided in this chapter for
170.7knowingly making a false claim. The claim shall set forth the total amount of the gasoline
170.8so purchased and used by the applicant other than in motor vehicles, or special fuel purchased
170.9and used by the applicant other than in licensed motor vehicles, and shall state when and
170.10for what purpose it was used. When a claim contains an error in computation or preparation,
170.11the commissioner is authorized to adjust the claim in accordance with the evidence shown
170.12on the claim or other information available to the commissioner. The commissioner, on
170.13being satisfied that the claimant is entitled to the payments, shall approve the claim and
170.14transmit it to the commissioner of management and budget. The words "gasoline" or "special
170.15fuel" as used in this subdivision do not include aviation gasoline or special fuel for aircraft.
170.16Gasoline or special fuel bought and used for a "qualifying purpose" means:
170.17    (1) Gasoline or special fuel used in carrying on a trade or business, used on a farm
170.18situated in Minnesota, and used for a farming purpose. "Farm" and "farming purpose" have
170.19the meanings given them in section 6420(c)(2), (3), and (4) of the Internal Revenue Code
170.20as defined in section 289A.02, subdivision 7.
170.21    (2) Gasoline or special fuel used for off-highway business use.
170.22    (i) "Off-highway business use" means any use off the public highway by a person in
170.23that person's trade, business, or activity for the production of income.
170.24    (ii) Off-highway business use includes use of a passenger snowmobile off the public
170.25highways as part of the operations of a resort as defined in section 157.15, subdivision 11;
170.26and use of gasoline or special fuel to operate a power takeoff unit on a vehicle, but not
170.27including fuel consumed during idling time.
170.28    (iii) Off-highway business use does not include use as a fuel in a motor vehicle which,
170.29at the time of use, is registered or is required to be registered for highway use under the
170.30laws of any state or foreign country; or use of a licensed motor vehicle fuel tank in lieu of
170.31a separate storage tank for storing fuel to be used for a qualifying purpose, as defined in
170.32this section. Fuel purchased to be used for a qualifying purpose cannot be placed in the fuel
170.33tank of a licensed motor vehicle and must be stored in a separate supply tank.
171.1    (3) Gasoline or special fuel placed in the fuel tanks of new motor vehicles, manufactured
171.2in Minnesota, and shipped by interstate carrier to destinations in other states or foreign
171.3countries.
171.4    (4) Special fuel used in one of the following:
171.5    (i) to power a refrigeration unit mounted on a licensed motor vehicle, provided that the
171.6unit has an engine separate from the one used to propel the vehicle and the fuel is used
171.7exclusively for the unit;
171.8    (ii) to power an unlicensed motor vehicle that is used solely or primarily to move
171.9semitrailers within a cargo yard, warehouse facility, or intermodal facility; or
171.10    (iii) to operate a power take-off unit or auxiliary engine in or on a licensed motor vehicle,
171.11whether or not the unit or engine is fueled from the same or a different fuel tank as that
171.12from which the motor vehicle is fueled.
171.13EFFECTIVE DATE.This section is effective for sales and purchases made after June
171.1430, 2017.

171.15    Sec. 11. Minnesota Statutes 2016, section 296A.17, subdivision 3, is amended to read:
171.16    Subd. 3. Refund on graduated basis. Any person who has directly or indirectly paid
171.17the excise tax on aviation gasoline or special fuel for aircraft use provided for by this chapter
171.18and has either paid the airflight property tax under section 270.072 or is an aerial applicator
171.19with a category B, general aerial license, under section 18B.33, shall, as to all such aviation
171.20gasoline and special fuel received, stored, or withdrawn from storage by the person in this
171.21state in any calendar year and not sold or otherwise disposed of to others, or intended for
171.22sale or other disposition to others, on which such tax has been so paid, be entitled to the
171.23following graduated reductions in such tax for that calendar year, to be obtained by means
171.24of the following refunds:
171.25(1) on each gallon of such aviation gasoline or special fuel up to 50,000 gallons, all but
171.26five cents per gallon;
171.27(2) on each gallon of such aviation gasoline or special fuel above 50,000 gallons and
171.28not more than 150,000 gallons, all but two cents per gallon;
171.29(3) on each gallon of such aviation gasoline or special fuel above 150,000 gallons and
171.30not more than 200,000 gallons, all but one cent per gallon;
171.31(4) on each gallon of such aviation gasoline or special fuel above 200,000, all but one-half
171.32cent per gallon.
172.1EFFECTIVE DATE.This section is effective for sales and purchases made after June
172.230, 2017.

172.3    Sec. 12. Minnesota Statutes 2016, section 296A.19, subdivision 1, is amended to read:
172.4    Subdivision 1. Retention. All distributors, dealers, special fuel dealers, bulk purchasers,
172.5dealers of aviation gasoline, and all users of special fuel shall keep a true and accurate record
172.6of all purchases, transfers, sales, and use of petroleum products and special fuel, including
172.7copies of all sales tickets issued, in a form and manner approved by the commissioner, and
172.8shall retain all such records for 3-1/2 years.
172.9EFFECTIVE DATE.This section is effective for sales and purchases made after June
172.1030, 2017.

172.11    Sec. 13. Minnesota Statutes 2016, section 297A.68, subdivision 19, is amended to read:
172.12    Subd. 19. Petroleum products. The following petroleum products are exempt:
172.13(1) products upon which a tax has been imposed and paid under chapter 296A, and for
172.14which no refund has been or will be allowed because the buyer used the fuel for nonhighway
172.15use;
172.16(2) products that are used in the improvement of agricultural land by constructing,
172.17maintaining, and repairing drainage ditches, tile drainage systems, grass waterways, water
172.18impoundment, and other erosion control structures;
172.19(3) products purchased by a transit system receiving financial assistance under section
172.20174.24 , 256B.0625, subdivision 17, or 473.384;
172.21(4) products purchased by an ambulance service licensed under chapter 144E;
172.22(5) products used in a passenger snowmobile, as defined in section 296A.01, subdivision
172.2339 , for off-highway business use as part of the operations of a resort as provided under
172.24section 296A.16, subdivision 2, clause (2);
172.25(6) products purchased by a state or a political subdivision of a state for use in motor
172.26vehicles exempt from registration under section 168.012, subdivision 1, paragraph (b);
172.27(7) products purchased by providers of transportation to recipients of medical assistance
172.28home and community-based services waivers enrolled in day programs, including adult day
172.29care, family adult day care, day treatment and habilitation, prevocational services, and
172.30structured day services; or
173.1(8) products used in a motor vehicle used exclusively as a mobile medical unit for the
173.2provision of medical or dental services by a federally qualified health center, as defined
173.3under title 19 of the federal Social Security Act, as amended by Section 4161 of the Omnibus
173.4Budget Reconciliation Act of 1990; or
173.5(9) special fuels eligible for a motor fuel tax refund under section 296A.16, subdivision
173.62, clause (4).
173.7EFFECTIVE DATE.This section is effective for sales and purchases made after June
173.830, 2017.

173.9    Sec. 14. Minnesota Statutes 2016, section 297G.03, is amended by adding a subdivision
173.10to read:
173.11    Subd. 6. Small winery credit. (a) A qualified winery producing wine or cider is entitled
173.12to a tax credit equal to the excise tax due under subdivision 1, paragraphs (b) to (g), on the
173.13wine or cider sold in any fiscal year beginning July 1. A qualified winery may take the credit
173.14on the 18th day of each month, but the total credit allowed may not exceed, in any fiscal
173.15year, the lesser of:
173.16(1) the liability for tax; or
173.17(2) $136,275.
173.18(b) For purposes of this subdivision, "qualified winery" means a winery, whether or not
173.19located in this state, manufacturing fewer than 75,000 gallons of wine and cider annually.
173.20(c) By February 15 of each year, beginning in 2019, the commissioner of revenue shall
173.21provide a report to the chairs and ranking minority members of the legislative committees
173.22having jurisdiction over taxes that includes the following information for the previous fiscal
173.23year, regarding the credit authorized under this subdivision:
173.24(1) the total amount of the tax expenditure for the credit, including the amount of credits
173.25claimed by Minnesota small wineries and out-of-state small wineries; and
173.26(2) the number of claimants for the credit, including the number of Minnesota small
173.27wineries and the number of out-of-state small wineries.
173.28EFFECTIVE DATE.This section is effective July 1, 2017.

173.29    Sec. 15. Minnesota Statutes 2016, section 298.227, is amended to read:
173.30298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
174.1    (a) An amount equal to that distributed pursuant to each taconite producer's taxable
174.2production and qualifying sales under section 298.28, subdivision 9a, shall be held by the
174.3Iron Range Resources and Rehabilitation Board in a separate taconite economic development
174.4fund for each taconite and direct reduced ore producer. Money from the fund for each
174.5producer shall be released by the commissioner after review by a joint committee consisting
174.6of an equal number of representatives of the salaried employees and the nonsalaried
174.7production and maintenance employees of that producer. The District 11 director of the
174.8United States Steelworkers of America, on advice of each local employee president, shall
174.9select the employee members. In nonorganized operations, the employee committee shall
174.10be elected by the nonsalaried production and maintenance employees. The review must be
174.11completed no later than six months after the producer presents a proposal for expenditure
174.12of the funds to the committee. The funds held pursuant to this section may be released only
174.13for workforce development and associated public facility improvement, concurrent
174.14reclamation, or for acquisition of plant and stationary mining equipment and facilities for
174.15the producer or for research and development in Minnesota on new mining, or taconite,
174.16iron, or steel production technology, but only if the producer provides a matching expenditure
174.17equal to the amount of the distribution to be used for the same purpose beginning with
174.18distributions in 2014. Effective for proposals for expenditures of money from the fund
174.19beginning May 26, 2007, the commissioner may not release the funds before the next
174.20scheduled meeting of the board. If a proposed expenditure is not approved by the board,
174.21the funds must be deposited in the Taconite Environmental Protection Fund under sections
174.22298.222 to 298.225. If a producer uses money which has been released from the fund prior
174.23to May 26, 2007 to procure haulage trucks, mobile equipment, or mining shovels, and the
174.24producer removes the piece of equipment from the taconite tax relief area defined in section
174.25273.134 within ten years from the date of receipt of the money from the fund, a portion of
174.26the money granted from the fund must be repaid to the taconite economic development
174.27fund. The portion of the money to be repaid is 100 percent of the grant if the equipment is
174.28removed from the taconite tax relief area within 12 months after receipt of the money from
174.29the fund, declining by ten percent for each of the subsequent nine years during which the
174.30equipment remains within the taconite tax relief area. If a taconite production facility is sold
174.31after operations at the facility had ceased, any money remaining in the fund for the former
174.32producer may be released to the purchaser of the facility on the terms otherwise applicable
174.33to the former producer under this section. If a producer fails to provide matching funds for
174.34a proposed expenditure within six months after the commissioner approves release of the
174.35funds, the funds are available for release to another producer in proportion to the distribution
174.36provided and under the conditions of this section. Any portion of the fund which is not
175.1released by the commissioner within one year of its deposit in the fund shall be divided
175.2between the taconite environmental protection fund created in section 298.223 and the
175.3Douglas J. Johnson economic protection trust fund created in section 298.292 for placement
175.4in their respective special accounts. Two-thirds of the unreleased funds shall be distributed
175.5to the taconite environmental protection fund and one-third to the Douglas J. Johnson
175.6economic protection trust fund.
175.7    (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
175.8distributions and the review process, an amount equal to ten cents per taxable ton of
175.9production in 2007, for distribution in 2008 only, that would otherwise be distributed under
175.10paragraph (a), may be used for a loan or grant for the cost of providing for a value-added
175.11wood product facility located in the taconite tax relief area and in a county that contains a
175.12city of the first class. This amount must be deducted from the distribution under paragraph
175.13(a) for which a matching expenditure by the producer is not required. The granting of the
175.14loan or grant is subject to approval by the board. If the money is provided as a loan, interest
175.15must be payable on the loan at the rate prescribed in section 298.2213, subdivision 3. (ii)
175.16Repayments of the loan and interest, if any, must be deposited in the taconite environment
175.17protection fund under sections 298.222 to 298.225. If a loan or grant is not made under this
175.18paragraph by July 1, 2012, the amount that had been made available for the loan under this
175.19paragraph must be transferred to the taconite environment protection fund under sections
175.20298.222 to 298.225. (iii) Money distributed in 2008 to the fund established under this section
175.21that exceeds ten cents per ton is available to qualifying producers under paragraph (a) on a
175.22pro rata basis.
175.23(c) Repayment or transfer of money to the taconite environmental protection fund under
175.24paragraph (b), item (ii), must be allocated by the Iron Range Resources and Rehabilitation
175.25Board for public works projects in house legislative districts in the same proportion as
175.26taxable tonnage of production in 2007 in each house legislative district, for distribution in
175.272008, bears to total taxable tonnage of production in 2007, for distribution in 2008.
175.28Notwithstanding any other law to the contrary, expenditures under this paragraph do not
175.29require approval by the governor. For purposes of this paragraph, "house legislative districts"
175.30means the legislative districts in existence on May 15, 2009.
175.31EFFECTIVE DATE.This section is effective the day following final enactment.

175.32    Sec. 16. Laws 2010, chapter 216, section 58, as amended by Laws 2010, chapter 347,
175.33article 7, section 1, and Laws 2010, chapter 389, article 7, section 20, is amended to read:
175.34    Sec. 58. 2010 DISTRIBUTIONS ONLY.
176.1    For distributions in 2010 only, a special fund is established to receive the sum of the
176.2following amounts that otherwise would be allocated under Minnesota Statutes, section
176.3298.28, subdivision 6 . The following amounts are allocated to St. Louis County acting as
176.4the fiscal agent for the recipients for the specific purposes:
176.5    (1) 0.764 cent per ton must be paid to Northern Minnesota Dental to provide incentives
176.6for at least two dentists to establish dental practices in high-need areas of the taconite tax
176.7relief area;
176.8(2) 0.955 cent per ton must be paid to the city of Virginia for repairs and geothermal
176.9heat at the Olcott Park Greenhouse/Virginia Commons project;
176.10(3) 0.796 cent per ton must be paid to the city of Virginia for health and safety repairs
176.11at the Miners Memorial;
176.12(4) 1.114 cents per ton must be paid to the city of Eveleth for the reconstruction of
176.13Highway 142/Grant and Park Avenues;
176.14(5) 0.478 cent per ton must be paid to the Greenway Joint Recreation Board for upgrades
176.15and capital improvements to the public arena in Coleraine;
176.16(6) 0.796 cent per ton must be paid to the city of Calumet for water treatment and
176.17pumphouse modifications;
176.18(7) 0.159 cent per ton must be paid to the city of Bovey for residential and commercial
176.19claims for water damage due to water and flood-related damage caused by the Canisteo Pit;
176.20(8) 0.637 cent per ton must be paid to the city of Nashwauk for a community and child
176.21care center;
176.22(9) 0.637 cent per ton must be paid to the city of Keewatin for water and sewer upgrades;
176.23(10) 0.637 cent per ton must be paid to the city of Marble for the city hall and library
176.24project;
176.25(11) 0.955 cent per ton must be paid to the city of Grand Rapids for extension of water
176.26and sewer services for Lakewood Housing;
176.27(12) 0.159 cent per ton must be paid to the city of Grand Rapids for exhibits at the
176.28Children's Museum;
176.29(13) 0.637 cent per ton must be paid to the city of Grand Rapids for Block 20/21 soil
176.30corrections. This amount must be matched by local sources;
176.31(14) 0.605 cent per ton must be paid to the city of Aitkin for three water loops;
177.1(15) 0.048 cent per ton must be paid to the city of Aitkin for signage;
177.2(16) 0.159 cent per ton must be paid to Aitkin County for a trail;
177.3(17) 0.637 cent per ton must be paid to the city of Cohasset for the Beiers Road railroad
177.4crossing;
177.5(18) 0.088 cent per ton must be paid to the town of Clinton for expansion and striping
177.6of the community center parking lot;
177.7(19) 0.398 cent per ton must be paid to the city of Kinney for water line replacement;
177.8(20) 0.796 cent per ton must be paid to the city of Gilbert for infrastructure improvements,
177.9milling, and overlay for Summit Street between Alaska Avenue and Highway 135;
177.10(21) 0.318 cent per ton must be paid to the city of Gilbert for sanitary sewer main
177.11replacements and improvements in the Northeast Lower Alley area;
177.12(22) 0.637 cent per ton must be paid to the town of White for replacement of the Stepetz
177.13Road culvert;
177.14(23) 0.796 cent per ton must be paid to the city of Buhl for reconstruction of Sharon
177.15Street and associated infrastructure;
177.16(24) 0.796 cent per ton must be paid to the city of Mountain Iron for site improvements
177.17at the Park Ridge development;
177.18(25) 0.796 cent per ton must be paid to the city of Mountain Iron for infrastructure and
177.19site preparation for its renewable and sustainable energy park;
177.20(26) 0.637 cent per ton must be paid to the city of Biwabik for sanitary sewer
177.21improvements;
177.22(27) 0.796 cent per ton must be paid to the city of Aurora for alley and road rebuilding
177.23for the Summit Addition;
177.24(28) 0.955 cent per ton must be paid to the city of Silver Bay for bioenergy facility
177.25improvements;
177.26(29) 0.318 cent per ton must be paid to the city of Grand Marais for water and sewer
177.27infrastructure improvements;
177.28(30) 0.318 cent per ton must be paid to the city of Orr for airport, water, and sewer
177.29improvements;
177.30(31) 0.716 cent per ton must be paid to the city of Cook for street and bridge
177.31improvements and land purchase, provided that if the city sells or otherwise disposes of any
178.1of the land purchased with the money provided under this clause within a period of ten five
178.2years after it was purchased, the city must transfer a portion of the proceeds of the sale equal
178.3to the amount of the purchase price paid from the money provided under this clause to the
178.4commissioner of Iron Range Resources and Rehabilitation for deposit in the taconite
178.5environmental protection fund to be used for the purposes of the fund under Minnesota
178.6Statutes, section 298.223;
178.7(32) 0.955 cent per ton must be paid to the city of Ely for street, water, and sewer
178.8improvements;
178.9(33) 0.318 cent per ton must be paid to the city of Tower for water and sewer
178.10improvements;
178.11(34) 0.955 cent per ton must be paid to the city of Two Harbors for water and sewer
178.12improvements;
178.13(35) 0.637 cent per ton must be paid to the city of Babbitt for water and sewer
178.14improvements;
178.15(36) 0.096 cent per ton must be paid to the township of Duluth for infrastructure
178.16improvements;
178.17(37) 0.096 cent per ton must be paid to the township of Tofte for infrastructure
178.18improvements;
178.19(38) 3.184 cents per ton must be paid to the city of Hibbing for sewer improvements;
178.20(39) 1.273 cents per ton must be paid to the city of Chisholm for NW Area Project
178.21infrastructure improvements;
178.22(40) 0.318 cent per ton must be paid to the city of Chisholm for health and safety
178.23improvements at the athletic facility;
178.24(41) 0.796 cent per ton must be paid to the city of Hoyt Lakes for residential street
178.25improvements;
178.26(42) 0.796 cent per ton must be paid to the Bois Forte Indian Reservation for infrastructure
178.27related to a housing development;
178.28(43) 0.159 cent per ton must be paid to Balkan Township for building improvements;
178.29(44) 0.159 cent per ton must be paid to the city of Grand Rapids for a grant to a nonprofit
178.30for a signage kiosk;
179.1(45) 0.318 cent per ton must be paid to the city of Crane Lake for sanitary sewer lines
179.2and adjacent development near County State-Aid Highway 24; and
179.3(46) 0.159 cent per ton must be paid to the city of Chisholm to rehabilitate historic wall
179.4infrastructure around the athletic complex.
179.5EFFECTIVE DATE.This section is effective the day following final enactment.

179.6    Sec. 17. CLARIFYING AUTHORITY TO USE PREVIOUSLY DISTRIBUTED
179.7TACONITE TAX PROCEEDS.
179.8The commissioner of Iron Range Resources and Rehabilitation may use any unspent
179.9amounts allocated under Minnesota Statutes 2014, section 298.2961, subdivision 5, clause
179.10(19), remaining as of May 22, 2016, for the specific purposes identified in that section.
179.11Notwithstanding Minnesota Statutes, section 298.28, subdivision 11, paragraph (a), or any
179.12other law to the contrary, interest accrued on this amount shall also be distributed to the
179.13recipient. Amounts under this section are available until expended and do not lapse or cancel
179.14under Minnesota Statutes, section 16A.28.
179.15EFFECTIVE DATE.This section is effective retroactively from May 22, 2016.

179.16    Sec. 18. 2017 TACONITE ECONOMIC DEVELOPMENT FUND ALLOCATION.
179.17(a) Notwithstanding Minnesota Statutes, section 298.28, subdivision 9a, paragraph (a),
179.1825.1 cents per taxable ton of the tax collected under Minnesota Statutes, section 298.24, for
179.19production year 2016, may be transferred by the commissioner of Iron Range Resources
179.20and Rehabilitation, as provided in paragraph (b), to the taconite economic development
179.21fund under Minnesota Statutes, section 298.227.
179.22(b) If the amount is transferred by the commissioner of Iron Range Resources and
179.23Rehabilitation under paragraph (a), two-thirds shall be transferred from the taconite
179.24environmental protection fund, and one-third shall be transferred from the Douglas J. Johnson
179.25economic protection fund, and deposited into the taconite economic development fund by
179.26June 30, 2017.
179.27(c) Money from the taconite economic development fund shall be released as provided
179.28in Minnesota Statutes, section 298.227, except that no distribution shall be made to a taconite
179.29producer's fund unless the producer has timely paid its tax under Minnesota Statutes, section
179.30298.24, by the dates provided under Minnesota Statutes, section 298.27, or as provided for
179.31by administrative agreement.
179.32EFFECTIVE DATE.This section is effective the day following final enactment.

180.1    Sec. 19. APPROPRIATION CANCELLATION.
180.2All unspent funds, estimated to be $7,100,000, for a grant or forgivable loan to Hoyt
180.3Lakes pursuant to Laws 2014, chapter 312, article 2, section 2, subdivision 6, are canceled
180.4to the Minnesota 21st century fund on June 1, 2017.

180.5    Sec. 20. REPEALER.
180.6Minnesota Rules, part 8125.1300, subpart 3, is repealed.
180.7EFFECTIVE DATE.This section is effective the day following final enactment.

180.8ARTICLE 9

180.9IRON RANGE RESOURCES AND REHABILITATION BOARD

180.10    Section 1. Minnesota Statutes 2016, section 15.38, subdivision 7, is amended to read:
180.11    Subd. 7. Iron Range resources and rehabilitation Board. After seeking a
180.12recommendation from the Iron Range Resources and Rehabilitation Board, the commissioner
180.13of Iron Range resources and rehabilitation Board may purchase insurance it considers the
180.14commissioner deems necessary and appropriate to insure facilities operated by the board.

180.15    Sec. 2. Minnesota Statutes 2016, section 116J.423, subdivision 2, is amended to read:
180.16    Subd. 2. Use of fund. The commissioner shall use money in the fund to make loans or,
180.17including forgivable loans, equity investments or grants for infrastructure in mineral, steel,
180.18or any other industry processing, production, manufacturing, or technology project that
180.19would enhance the economic diversification and that is located within the taconite relief
180.20tax area as defined under section 273.134. The commissioner must, prior to making any
180.21loans or equity investments and after consultation with industry and public officials, develop
180.22a strategy for making loans and, equity investments or grants for infrastructure that assists
180.23the taconite relief area in retaining and enhancing its economic competitiveness. Money in
180.24the fund may also be used to pay for the costs of carrying out the commissioner's due
180.25diligence duties under this section.
180.26EFFECTIVE DATE.This section is effective the day following final enactment.

180.27    Sec. 3. Minnesota Statutes 2016, section 116J.424, is amended to read:
180.28116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD
180.29CONTRIBUTION.
181.1The commissioner of the Iron Range resources and rehabilitation Board with approval
181.2by the board, may provide an equal match for any loan or equity investment made for a
181.3project located in the tax relief area defined in section 273.134, paragraph (b), by the
181.4Minnesota 21st century fund created by section 116J.423. The match may be in the form
181.5of a loan or equity investment, notwithstanding whether the fund makes a loan or equity
181.6investment. The state shall not acquire an equity interest because of an equity investment
181.7or loan by the board under this section and the board at its sole discretion commissioner,
181.8after consultation with the Iron Range Resources and Rehabilitation Board, shall have the
181.9sole discretion to decide what interest it the board acquires in a project. The commissioner
181.10of employment and economic development may require a commitment from the board
181.11commissioner to make the match prior to disbursing money from the fund.

181.12    Sec. 4. Minnesota Statutes 2016, section 216B.161, subdivision 1, is amended to read:
181.13    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
181.14the meanings given them in this subdivision.
181.15(b) "Area development rate" means a rate schedule established by a utility that provides
181.16customers within an area development zone service under a base utility rate schedule, except
181.17that charges may be reduced from the base rate as agreed upon by the utility and the customer
181.18consistent with this section.
181.19(c) "Area development zone" means a contiguous or noncontiguous area designated by
181.20an authority or municipality for development or redevelopment and within which one of
181.21the following conditions exists:
181.22(1) obsolete buildings not suitable for improvement or conversion or other identified
181.23hazards to the health, safety, and general well-being of the community;
181.24(2) buildings in need of substantial rehabilitation or in substandard condition; or
181.25(3) low values and damaged investments.
181.26(d) "Authority" means a rural development financing authority established under sections
181.27469.142 to 469.151; a housing and redevelopment authority established under sections
181.28469.001 to 469.047; a port authority established under sections 469.048 to 469.068; an
181.29economic development authority established under sections 469.090 to 469.108; a
181.30redevelopment agency as defined in sections 469.152 to 469.165; the commissioner of Iron
181.31Range resources and rehabilitation, acting after consultation with the board established
181.32under section 298.22; a municipality that is administering a development district created
181.33under sections 469.124 to 469.133 or any special law; a municipality that undertakes a
182.1project under sections 469.152 to 469.165, except a town located outside the metropolitan
182.2area as defined in section 473.121, subdivision 2, or with a population of 5,000 persons or
182.3less; or a municipality that exercises the powers of a port authority under any general or
182.4special law.
182.5(e) "Municipality" means a city, however organized, and, with respect to a project
182.6undertaken under sections 469.152 to 469.165, "municipality" has the meaning given in
182.7sections 469.152 to 469.165, and, with respect to a project undertaken under sections 469.142
182.8to 469.151 or a county or multicounty project undertaken under sections 469.004 to 469.008,
182.9also includes any county.

182.10    Sec. 5. Minnesota Statutes 2016, section 276A.01, subdivision 8, is amended to read:
182.11    Subd. 8. Municipality. "Municipality" means a city, town, or township located in whole
182.12or part within the area. If a municipality is located partly within and partly without the area,
182.13the references in sections 276A.01 to 276A.09 to property or any portion thereof subject to
182.14taxation or taxing jurisdiction within the municipality are to the property or portion thereof
182.15that is located in that portion of the municipality within the area, except that the fiscal
182.16capacity of the municipality must be computed upon the basis of the valuation and population
182.17of the entire municipality. A municipality shall be excluded from the area if its municipal
182.18comprehensive zoning and planning policies conscientiously exclude most
182.19commercial-industrial development, for reasons other than preserving an agricultural use.
182.20The commissioner of Iron Range resources and rehabilitation Board and the commissioner
182.21of revenue shall jointly make this determination annually and shall notify those municipalities
182.22that are ineligible to participate in the tax base sharing program provided in this chapter for
182.23the following year. Before making the joint determination, the commissioner of Iron Range
182.24resources and rehabilitation shall seek a recommendation from the Iron Range Resources
182.25and Rehabilitation Board.

182.26    Sec. 6. Minnesota Statutes 2016, section 276A.01, subdivision 17, is amended to read:
182.27    Subd. 17. School fund allocation. (a) "School fund allocation" means an amount up to
182.2825 percent of the areawide levy certified by the commissioner of Iron Range resources and
182.29rehabilitation, after seeking a recommendation from the Iron Range Resources and
182.30Rehabilitation Board, to be used for the purposes of the Iron Range school consolidation
182.31and cooperatively operated school account under section 298.28, subdivision 7a.
182.32(b) The allocation under paragraph (a) shall only be made after the commissioner of
182.33Iron Range resources and rehabilitation, after seeking a recommendation from the Iron
183.1Range Resources and Rehabilitation Board, has certified by June 30 that the Iron Range
183.2school consolidation and cooperatively operated account has insufficient funds to make
183.3payments as authorized under section 298.28, subdivision 7a.

183.4    Sec. 7. Minnesota Statutes 2016, section 282.38, subdivision 1, is amended to read:
183.5    Subdivision 1. Development. In any county where the county board by proper resolution
183.6sets aside funds for forest development pursuant to section 282.08, clause (5), item (i), or
183.7section 459.06, subdivision 2, the commissioner of Iron Range resources and rehabilitation
183.8with the approval of the, after seeking a recommendation from the Iron Range Resources
183.9and Rehabilitation Board, may upon request of the county board assist said county in carrying
183.10out any project for the long range development of its forest resources through matching of
183.11funds or otherwise.

183.12    Sec. 8. Minnesota Statutes 2016, section 298.001, subdivision 8, is amended to read:
183.13    Subd. 8. Commissioner. "Commissioner" means the commissioner of revenue of the
183.14state of Minnesota, except that when used in sections 298.22 to 298.227, and 298.291 to
183.15298.298, "commissioner" means the commissioner of Iron Range resources and rehabilitation.

183.16    Sec. 9. Minnesota Statutes 2016, section 298.22, subdivision 1, is amended to read:
183.17    Subdivision 1. The Office of the Commissioner of Iron Range Resources and
183.18Rehabilitation. (a) The Office of the Commissioner of Iron Range Resources and
183.19Rehabilitation is created as an agency in the executive branch of state government. The
183.20governor shall appoint the commissioner of Iron Range resources and rehabilitation under
183.21section 15.06. The commissioner may expend amounts appropriated to the commissioner
183.22or the board for projects after submitting the expenditure to the board for a recommendation
183.23under subdivision 1a.
183.24(b) The commissioner may hold other positions or appointments that are not incompatible
183.25with duties as commissioner of Iron Range resources and rehabilitation. The commissioner
183.26may appoint a deputy commissioner. All expenses of the commissioner, including the
183.27payment of staff and other assistance as may be necessary, must be paid out of the amounts
183.28appropriated by section 298.28 or otherwise made available by law to the commissioner.
183.29Notwithstanding chapters 16A, 16B, and 16C, the commissioner may utilize contracting
183.30options available under section 471.345 when the commissioner determines it is in the best
183.31interest of the agency. The agency is not subject to sections 16E.016 and 16C.05. The agency
183.32has the authority to reimburse any nongovernmental manager operating state-owned facilities
184.1within the Giants Ridge Recreation Area for purchasing materials, supplies, equipment, or
184.2other items used in the operations at such facilities .
184.3(c) When the commissioner determines that distress and unemployment exists or may
184.4exist in the future in any county by reason of the removal of natural resources or a possibly
184.5limited use of natural resources in the future and any resulting decrease in employment, the
184.6commissioner may use whatever amounts of the appropriation made to the commissioner
184.7of revenue in section 298.28 that are determined to be necessary and proper in the
184.8development of the remaining resources of the county and in the vocational training and
184.9rehabilitation of its residents, except that the amount needed to cover cost overruns awarded
184.10to a contractor by an arbitrator in relation to a contract awarded by the commissioner or in
184.11effect after July 1, 1985, is appropriated from the general fund. For the purposes of this
184.12section, "development of remaining resources" includes, but is not limited to, the promotion
184.13of tourism.

184.14    Sec. 10. Minnesota Statutes 2016, section 298.22, subdivision 1a, is amended to read:
184.15    Subd. 1a. Iron Range Resources and Rehabilitation Board. The Iron Range Resources
184.16and Rehabilitation Board consists of the state senators and representatives elected from state
184.17senatorial or legislative districts in which one-third or more of the residents reside in a
184.18taconite assistance area as defined in section 273.1341. One additional state senator shall
184.19also be appointed by the senate Subcommittee on Committees of the Committee on Rules
184.20and Administration. All expenditures and projects made by the commissioner shall first be
184.21submitted to the board for approval. The board shall recommend approval or disapproval
184.22or modification of the expenditures and projects. The expenses of the board shall be paid
184.23by the state from the funds raised pursuant to this section. Members of the board may be
184.24reimbursed for expenses in the manner provided in sections 3.099, subdivision 1, and 3.101,
184.25and may receive per diem payments during the interims between legislative sessions in the
184.26manner provided in section 3.099, subdivision 1.
184.27The members shall be appointed in January of every odd-numbered year, and shall serve
184.28until January of the next odd-numbered year. Vacancies on the board shall be filled in the
184.29same manner as original members were chosen.

184.30    Sec. 11. Minnesota Statutes 2016, section 298.22, subdivision 5a, is amended to read:
184.31    Subd. 5a. Forest trust. The commissioner, upon approval by after requesting a
184.32recommendation from the board, may purchase forest lands in the taconite assistance area
184.33defined in under section 273.1341 with funds specifically authorized for the purchase. The
185.1acquired forest lands must be held in trust for the benefit of the citizens of the taconite
185.2assistance area as the Iron Range Miners' Memorial Forest. The forest trust lands shall be
185.3managed and developed for recreation and economic development purposes. The
185.4commissioner, upon approval by after requesting a recommendation from the board, may
185.5sell forest lands purchased under this subdivision if the board finds commissioner determines
185.6that the sale advances the purposes of the trust. Proceeds derived from the management or
185.7sale of the lands and from the sale of timber or removal of gravel or other minerals from
185.8these forest lands shall be deposited into an Iron Range Miners' Memorial Forest account
185.9that is established within the state financial accounts. Funds may be expended from the
185.10account upon approval by after the commissioner has sought a recommendation from the
185.11board, to purchase, manage, administer, convey interests in, and improve the forest lands.
185.12With approval by After the commissioner has sought a recommendation from the board,
185.13money in the Iron Range Miners' Memorial Forest account may be transferred into the
185.14corpus of the Douglas J. Johnson economic protection trust fund established under sections
185.15298.291 to 298.294. The property acquired under the authority granted by this subdivision
185.16and income derived from the property or the operation or management of the property are
185.17exempt from taxation by the state or its political subdivisions while held by the forest trust.

185.18    Sec. 12. Minnesota Statutes 2016, section 298.22, subdivision 6, is amended to read:
185.19    Subd. 6. Private entity participation. After seeking a recommendation from the board,
185.20the commissioner may acquire an equity interest in any project for which it the commissioner
185.21provides funding. The commissioner may establish, participate in the management of, and
185.22dispose of the assets of charitable foundations, nonprofit limited liability companies, and
185.23nonprofit corporations associated with any project for which it provides funding, including
185.24specifically, but without limitation, a corporation within the meaning of section 317A.011,
185.25subdivision 6 .

185.26    Sec. 13. Minnesota Statutes 2016, section 298.22, subdivision 10, is amended to read:
185.27    Subd. 10. Sale or privatization of functions. The commissioner of Iron Range resources
185.28and rehabilitation may not sell or privatize the Ironworld Minnesota Discovery Center or
185.29Giants Ridge Golf and Ski Resort without prior approval by the board.

185.30    Sec. 14. Minnesota Statutes 2016, section 298.22, subdivision 11, is amended to read:
185.31    Subd. 11. Budgeting. The commissioner of Iron Range resources and rehabilitation
185.32shall annually prepare a budget for operational expenditures, programs, and projects, and
185.33submit it to the Iron Range Resources and Rehabilitation Board for approval. After the
186.1budget is approved by the board and the governor, the commissioner may spend money in
186.2accordance with the approved budget.

186.3    Sec. 15. Minnesota Statutes 2016, section 298.221, is amended to read:
186.4298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.
186.5(a) Except as provided in paragraph (c), all money paid to the state of Minnesota pursuant
186.6to the terms of any contract entered into by the state under authority of section 298.22 and
186.7any fees which may, in the discretion of the commissioner of Iron Range resources and
186.8rehabilitation, be charged in connection with any project pursuant to that section as amended,
186.9shall be deposited in the state treasury to the credit of the Iron Range Resources and
186.10Rehabilitation Board account in the special revenue fund and are hereby appropriated for
186.11the purposes of section 298.22.
186.12(b) Notwithstanding section 16A.013, merchandise may be accepted by the commissioner
186.13of the Iron Range Resources and Rehabilitation Board for payment of advertising contracts
186.14if the commissioner determines that the merchandise can be used for special event prizes
186.15or mementos at facilities operated by the board. Nothing in this paragraph authorizes the
186.16commissioner or a member of the board to receive merchandise for personal use.
186.17(c) All fees charged by the commissioner in connection with public use of the state-owned
186.18ski and golf facilities at the Giants Ridge Recreation Area and all other revenues derived
186.19by the commissioner from the operation or lease of those facilities and from the lease, sale,
186.20or other disposition of undeveloped lands at the Giants Ridge Recreation Area must be
186.21deposited into an Iron Range Resources and Rehabilitation Board account that is created
186.22within the state enterprise fund. All funds deposited in the enterprise fund account are
186.23appropriated to the commissioner to be expended, subject to approval by after seeking a
186.24recommendation from the board, as follows:
186.25(1) to pay costs associated with the construction, equipping, operation, repair, or
186.26improvement of the Giants Ridge Recreation Area facilities or lands;
186.27(2) to pay principal, interest and associated bond issuance, reserve, and servicing costs
186.28associated with the financing of the facilities; and
186.29(3) to pay the costs of any other project authorized under section 298.22.

186.30    Sec. 16. Minnesota Statutes 2016, section 298.2211, subdivision 3, is amended to read:
186.31    Subd. 3. Project approval. All projects authorized by this section shall be submitted
186.32by the commissioner to the Iron Range Resources and Rehabilitation Board for approval
187.1by a recommendation from the board. Prior to the commencement of a project involving
187.2the exercise by the commissioner of any authority of sections 469.174 to 469.179, the
187.3governing body of each municipality in which any part of the project is located and the
187.4county board of any county containing portions of the project not located in an incorporated
187.5area shall by majority vote approve or disapprove the project. Any project approved by the
187.6board commissioner and the applicable governing bodies, if any, together with detailed
187.7information concerning the project, its costs, the sources of its funding, and the amount of
187.8any bonded indebtedness to be incurred in connection with the project, shall be transmitted
187.9to the governor, who shall approve, disapprove, or return the proposal for additional
187.10consideration within 30 days of receipt. No project authorized under this section shall be
187.11undertaken, and no obligations shall be issued and no tax increments shall be expended for
187.12a project authorized under this section until the project has been approved by the governor.

187.13    Sec. 17. Minnesota Statutes 2016, section 298.223, subdivision 1, is amended to read:
187.14    Subdivision 1. Creation; purposes. A fund called the taconite environmental protection
187.15fund is created for the purpose of reclaiming, restoring and enhancing those areas of northeast
187.16Minnesota located within the taconite assistance area defined in section 273.1341, that are
187.17adversely affected by the environmentally damaging operations involved in mining taconite
187.18and iron ore and producing iron ore concentrate and for the purpose of promoting the
187.19economic development of northeast Minnesota. The taconite environmental protection fund
187.20shall be used for the following purposes:
187.21(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation
187.22Board determines are in need of study and which will determine the environmental problems
187.23requiring remedial action;
187.24(2) reclamation, restoration, or reforestation of mine lands not otherwise provided for
187.25by state law;
187.26(3) local economic development projects but only if those projects are approved by the
187.27commissioner after seeking a recommendation of the projects from the board, and public
187.28works, including construction of sewer and water systems located within the taconite
187.29assistance area defined in section 273.1341;
187.30(4) monitoring of mineral industry related health problems among mining employees;
187.31and
187.32(5) local public works projects under section 298.227, paragraph (c).

188.1    Sec. 18. Minnesota Statutes 2016, section 298.223, subdivision 2, is amended to read:
188.2    Subd. 2. Administration. (a) The taconite area environmental protection fund shall be
188.3administered by the commissioner of the Iron Range Resources and Rehabilitation Board.
188.4The commissioner shall by September 1 of each year submit to the board a list of projects
188.5to be funded from the taconite area environmental protection fund, with such supporting
188.6information including description of the projects, plans, and cost estimates as may be
188.7necessary.
188.8    (b) Each year no less than one-half of the amounts deposited into the taconite
188.9environmental protection fund must be used for public works projects, including construction
188.10of sewer and water systems, as specified under subdivision 1, clause (3). the Iron Range
188.11Resources and Rehabilitation Board may waive the requirements of this paragraph.
188.12    (c) Upon approval by the board, the list of projects approved under this subdivision shall
188.13be submitted to the governor by November 1 of each year. By December 1 of each year,
188.14the governor shall approve or disapprove, or return for further consideration, each project.
188.15The commissioner must seek review of the projects by the board. Funds for a project may
188.16be expended only upon approval of the project by the board and the governor. The
188.17commissioner may submit supplemental projects to the board and governor for approval at
188.18any time after seeking review of the projects by the board.

188.19    Sec. 19. Minnesota Statutes 2016, section 298.227, is amended to read:
188.20298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
188.21    (a) An amount equal to that distributed pursuant to each taconite producer's taxable
188.22production and qualifying sales under section 298.28, subdivision 9a, shall be held by the
188.23Iron Range Resources and Rehabilitation Board in a separate taconite economic development
188.24fund for each taconite and direct reduced ore producer. Money from the fund for each
188.25producer shall be released by the commissioner after review by a joint committee consisting
188.26of an equal number of representatives of the salaried employees and the nonsalaried
188.27production and maintenance employees of that producer. The District 11 director of the
188.28United States Steelworkers of America, on advice of each local employee president, shall
188.29select the employee members. In nonorganized operations, the employee committee shall
188.30be elected by the nonsalaried production and maintenance employees. The review must be
188.31completed no later than six months after the producer presents a proposal for expenditure
188.32of the funds to the committee. The funds held pursuant to this section may be released only
188.33for workforce development and associated public facility improvement, or for acquisition
188.34of plant and stationary mining equipment and facilities for the producer or for research and
189.1development in Minnesota on new mining, or taconite, iron, or steel production technology,
189.2but only if the producer provides a matching expenditure equal to the amount of the
189.3distribution to be used for the same purpose beginning with distributions in 2014. Effective
189.4for proposals for expenditures of money from the fund beginning May 26, 2007, the
189.5commissioner may not release the funds before the next scheduled meeting of the board. If
189.6a proposed expenditure is not approved by the commissioner, after seeking a recommendation
189.7from the board, the funds must be deposited in the Taconite Environmental Protection Fund
189.8under sections 298.222 to 298.225. If a producer uses money which has been released from
189.9the fund prior to May 26, 2007 to procure haulage trucks, mobile equipment, or mining
189.10shovels, and the producer removes the piece of equipment from the taconite tax relief area
189.11defined in section 273.134 within ten years from the date of receipt of the money from the
189.12fund, a portion of the money granted from the fund must be repaid to the taconite economic
189.13development fund. The portion of the money to be repaid is 100 percent of the grant if the
189.14equipment is removed from the taconite tax relief area within 12 months after receipt of the
189.15money from the fund, declining by ten percent for each of the subsequent nine years during
189.16which the equipment remains within the taconite tax relief area. If a taconite production
189.17facility is sold after operations at the facility had ceased, any money remaining in the fund
189.18for the former producer may be released to the purchaser of the facility on the terms otherwise
189.19applicable to the former producer under this section. If a producer fails to provide matching
189.20funds for a proposed expenditure within six months after the commissioner approves release
189.21of the funds, the funds are available for release to another producer in proportion to the
189.22distribution provided and under the conditions of this section. Any portion of the fund which
189.23is not released by the commissioner within one year of its deposit in the fund shall be divided
189.24between the taconite environmental protection fund created in section 298.223 and the
189.25Douglas J. Johnson economic protection trust fund created in section 298.292 for placement
189.26in their respective special accounts. Two-thirds of the unreleased funds shall be distributed
189.27to the taconite environmental protection fund and one-third to the Douglas J. Johnson
189.28economic protection trust fund.
189.29    (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
189.30distributions and the review process, an amount equal to ten cents per taxable ton of
189.31production in 2007, for distribution in 2008 only, that would otherwise be distributed under
189.32paragraph (a), may be used for a loan or grant for the cost of providing for a value-added
189.33wood product facility located in the taconite tax relief area and in a county that contains a
189.34city of the first class. This amount must be deducted from the distribution under paragraph
189.35(a) for which a matching expenditure by the producer is not required. The granting of the
189.36loan or grant is subject to approval by the board. If the money is provided as a loan, interest
190.1must be payable on the loan at the rate prescribed in section 298.2213, subdivision 3. (ii)
190.2Repayments of the loan and interest, if any, must be deposited in the taconite environment
190.3protection fund under sections 298.222 to 298.225. If a loan or grant is not made under this
190.4paragraph by July 1, 2012, the amount that had been made available for the loan under this
190.5paragraph must be transferred to the taconite environment protection fund under sections
190.6298.222 to 298.225. (iii) Money distributed in 2008 to the fund established under this section
190.7that exceeds ten cents per ton is available to qualifying producers under paragraph (a) on a
190.8pro rata basis.
190.9(c) Repayment or transfer of money to the taconite environmental protection fund under
190.10paragraph (b), item (ii), must be allocated by the Iron Range resources and rehabilitation
190.11Board for public works projects in house legislative districts in the same proportion as
190.12taxable tonnage of production in 2007 in each house legislative district, for distribution in
190.132008, bears to total taxable tonnage of production in 2007, for distribution in 2008.
190.14Notwithstanding any other law to the contrary, expenditures under this paragraph do not
190.15require approval by the governor. For purposes of this paragraph, "house legislative districts"
190.16means the legislative districts in existence on May 15, 2009.

190.17    Sec. 20. Minnesota Statutes 2016, section 298.28, subdivision 7a, is amended to read:
190.18    Subd. 7a. Iron Range school consolidation and cooperatively operated school account.
190.19(a) The following amounts must be allocated to the Iron Range Resources and Rehabilitation
190.20Board to be deposited in the Iron Range school consolidation and cooperatively operated
190.21school account that is hereby created:
190.22(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax imposed
190.23under section 298.24; and
190.24(ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed
190.25under section 298.24;
190.26(2) the amount as determined under section 298.17, paragraph (b), clause (3);
190.27(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax
190.28proceeds attributable to the increase in the implicit price deflator as provided in section
190.29298.24, subdivision 1 , with the remaining one-third to be distributed to the Douglas J.
190.30Johnson economic protection trust fund;
190.31(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the increased
190.32tax proceeds attributable to the increase in the implicit price deflator as provided in section
191.1298.24, subdivision 1 , for distribution years 2015 and 2016, with the remaining one-third
191.2to be distributed to the Douglas J. Johnson economic protection trust fund; and
191.3(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the increased
191.4tax proceeds attributable to the increase in the implicit price deflator as provided in section
191.5298.24, subdivision 1 , for distribution years 2015, 2016, and 2017, with the remaining
191.6one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and
191.7(4) any other amount as provided by law.
191.8(b) Expenditures from this account may be approved as ongoing annual expenditures
191.9and shall be made only to provide disbursements to assist school districts with the payment
191.10of bonds that were issued for qualified school projects, or for any other school disbursement
191.11as approved by the commissioner of Iron Range resources and rehabilitation after the
191.12commissioner of Iron Range resources and rehabilitation has sought review of the
191.13expenditures by the Iron Range Resources and Rehabilitation Board. For purposes of this
191.14section, "qualified school projects" means school projects within the taconite assistance
191.15area as defined in section 273.1341, that were (1) approved, by referendum, after April 3,
191.162006; and (2) approved by the commissioner of education pursuant to section 123B.71.
191.17(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for
191.18bonds issued under section 123A.482, subdivision 9, must be increased each year to offset
191.19any reduction in debt service equalization aid that the school district qualifies for in that
191.20year, under section 123B.53, subdivision 6, compared with the amount the school district
191.21qualified for in fiscal year 2018.
191.22(d) No expenditure under this section shall be made unless approved by seven members
191.23of the commissioner of Iron Range resources and rehabilitation after seeking review of the
191.24expenditure from the Iron Range Resources and Rehabilitation Board.

191.25    Sec. 21. Minnesota Statutes 2016, section 298.28, subdivision 9d, is amended to read:
191.26    Subd. 9d. Iron Range higher education account. Five cents per taxable ton must be
191.27allocated to the Iron Range Resources and Rehabilitation Board to be deposited in an Iron
191.28Range higher education account that is hereby created, to be used for higher education
191.29programs conducted at educational institutions in the taconite assistance area defined in
191.30section 273.1341. The Iron Range Higher Education committee under section 298.2214,
191.31and the Iron Range Resources and Rehabilitation Board commissioner of Iron Range
191.32resources and rehabilitation must approve all expenditures from the account, after seeking
192.1review and recommendation of the expenditures from the Iron Range Resources and
192.2Rehabilitation Board.

192.3    Sec. 22. Minnesota Statutes 2016, section 298.292, subdivision 2, is amended to read:
192.4    Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust
192.5fund may be used for the following purposes:
192.6    (1) to provide loans, loan guarantees, interest buy-downs and other forms of participation
192.7with private sources of financing, but a loan to a private enterprise shall be for a principal
192.8amount not to exceed one-half of the cost of the project for which financing is sought, and
192.9the rate of interest on a loan to a private enterprise shall be no less than the lesser of eight
192.10percent or an interest rate three percentage points less than a full faith and credit obligation
192.11of the United States government of comparable maturity, at the time that the loan is approved;
192.12    (2) to fund reserve accounts established to secure the payment when due of the principal
192.13of and interest on bonds issued pursuant to section 298.2211;
192.14    (3) to pay in periodic payments or in a lump-sum payment any or all of the interest on
192.15bonds issued pursuant to chapter 474 for the purpose of constructing, converting, or
192.16retrofitting heating facilities in connection with district heating systems or systems utilizing
192.17alternative energy sources;
192.18    (4) to invest in a venture capital fund or enterprise that will provide capital to other
192.19entities that are engaging in, or that will engage in, projects or programs that have the
192.20purposes set forth in subdivision 1. No investments may be made in a venture capital fund
192.21or enterprise unless at least two other unrelated investors make investments of at least
192.22$500,000 in the venture capital fund or enterprise, and the investment by the Douglas J.
192.23Johnson economic protection trust fund may not exceed the amount of the largest investment
192.24by an unrelated investor in the venture capital fund or enterprise. For purposes of this
192.25subdivision, an "unrelated investor" is a person or entity that is not related to the entity in
192.26which the investment is made or to any individual who owns more than 40 percent of the
192.27value of the entity, in any of the following relationships: spouse, parent, child, sibling,
192.28employee, or owner of an interest in the entity that exceeds ten percent of the value of all
192.29interests in it. For purposes of determining the limitations under this clause, the amount of
192.30investments made by an investor other than the Douglas J. Johnson economic protection
192.31trust fund is the sum of all investments made in the venture capital fund or enterprise during
192.32the period beginning one year before the date of the investment by the Douglas J. Johnson
192.33economic protection trust fund; and
193.1    (5) to purchase forest land in the taconite assistance area defined in section 273.1341 to
193.2be held and managed as a public trust for the benefit of the area for the purposes authorized
193.3in section 298.22, subdivision 5a. Property purchased under this section may be sold by the
193.4commissioner upon approval by after seeking a recommendation from the board. The net
193.5proceeds must be deposited in the trust fund for the purposes and uses of this section.
193.6    Money from the trust fund shall be expended only in or for the benefit of the taconite
193.7assistance area defined in section 273.1341.

193.8    Sec. 23. Minnesota Statutes 2016, section 298.296, subdivision 1, is amended to read:
193.9    Subdivision 1. Project approval. (a) The commissioner of Iron Range resources and
193.10rehabilitation, after seeking a recommendation from the board and commissioner shall by
193.11August 1 of each year prepare a list of projects to be funded, may expend funds for projects
193.12to be funded from the Douglas J. Johnson economic protection trust with necessary
193.13supporting information including description of the projects, plans, and cost estimates. These
193.14projects shall be consistent with the priorities established in section 298.292 and shall not
193.15be approved by the board commissioner unless it the commissioner, after seeking a
193.16recommendation from the board, finds that:
193.17(a) (1) the project will materially assist, directly or indirectly, the creation of additional
193.18long-term employment opportunities;
193.19(b) (2) the prospective benefits of the expenditure exceed the anticipated costs; and
193.20(c) (3) in the case of assistance to private enterprise, the project will serve a sound
193.21business purpose.
193.22(b) Each project must be approved by over one-half of all of the members of the board
193.23and the commissioner of Iron Range resources and rehabilitation after seeking a
193.24recommendation from the board for the project. The list of projects shall be submitted to
193.25the governor, who shall, by November 15 of each year, approve or disapprove, or return
193.26for further consideration, each project. The money for a project may be expended only upon
193.27approval of the project by the governor. The board may submit supplemental projects for
193.28approval at any time.

193.29    Sec. 24. Minnesota Statutes 2016, section 298.296, subdivision 2, is amended to read:
193.30    Subd. 2. Expenditure of funds. (a) Before January 1, 2028, funds may be expended on
193.31projects and for administration of the trust fund only from the net interest, earnings, and
193.32dividends arising from the investment of the trust at any time, including net interest, earnings,
194.1and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made available for
194.2use in fiscal year 1983, except that any amount required to be paid out of the trust fund to
194.3provide the property tax relief specified in Laws 1977, chapter 423, article X, section 4, and
194.4to make school bond payments and payments to recipients of taconite production tax proceeds
194.5pursuant to section 298.225, may be taken from the corpus of the trust.
194.6    (b) Additionally, upon recommendation by the commissioner after seeking a
194.7recommendation from the board, up to $13,000,000 from the corpus of the trust may be
194.8made available for use as provided in subdivision 4, and up to $10,000,000 from the corpus
194.9of the trust may be made available for use as provided in section 298.2961.
194.10    (c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust
194.11on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts
194.12made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article 8,
194.13section 17, may be expended on projects. Funds may be expended for projects under this
194.14paragraph only if the project:
194.15    (1) is for the purposes established under section 298.292, subdivision 1, clause (1) or
194.16(2); and
194.17    (2) is approved by two-thirds of all of the members of the commissioner after seeking
194.18a recommendation from the board.
194.19No money made available under this paragraph or paragraph (d) can be used for
194.20administrative or operating expenses of the Iron Range Resources and Rehabilitation Board
194.21or expenses relating to any facilities owned or operated by the board on May 18, 2002.
194.22    (d) Upon recommendation by a unanimous vote of all members the commissioner after
194.23seeking a recommendation of the board, amounts in addition to those authorized under
194.24paragraphs (a), (b), and (c) may be expended on projects described in section 298.292,
194.25subdivision 1 .
194.26    (e) Annual administrative costs, not including detailed engineering expenses for the
194.27projects, shall not exceed five percent of the net interest, dividends, and earnings arising
194.28from the trust in the preceding fiscal year.
194.29    (f) Principal and interest received in repayment of loans made pursuant to this section,
194.30and earnings on other investments made under section 298.292, subdivision 2, clause (4),
194.31shall be deposited in the state treasury and credited to the trust. These receipts are
194.32appropriated to the board for the purposes of sections 298.291 to 298.298.
195.1    (g) Additionally, notwithstanding section 298.293, upon the approval of the commissioner
195.2of Iron Range resources and rehabilitation, after seeking a recommendation from the board,
195.3money from the corpus of the trust may be expanded to purchase forest lands within the
195.4taconite assistance area as provided in sections 298.22, subdivision 5a, and 298.292,
195.5subdivision 2 , clause (5).

195.6    Sec. 25. Minnesota Statutes 2016, section 298.296, subdivision 4, is amended to read:
195.7    Subd. 4. Temporary loan authority. (a) After seeking a recommendation from the
195.8board, the commissioner of Iron Range resources and rehabilitation may recommend that
195.9use up to $7,500,000 from the corpus of the trust may be used for loans, loan guarantees,
195.10grants, or equity investments as provided in this subdivision. The money would be available
195.11for loans for construction and equipping of facilities constituting (1) a value added iron
195.12products plant, which may be either a new plant or a facility incorporated into an existing
195.13plant that produces iron upgraded to a minimum of 75 percent iron content or any iron alloy
195.14with a total minimum metallic content of 90 percent; or (2) a new mine or minerals processing
195.15plant for any mineral subject to the net proceeds tax imposed under section 298.015. A loan
195.16or loan guarantee under this paragraph may not exceed $5,000,000 for any facility.
195.17(b) Additionally, the board commissioner of Iron Range resources and rehabilitation
195.18must reserve the first $2,000,000 of the net interest, dividends, and earnings arising from
195.19the investment of the trust after June 30, 1996, to be used for grants, loans, loan guarantees,
195.20or equity investments for the purposes set forth in paragraph (a). This amount must be
195.21reserved until it is used as described in this subdivision.
195.22(c) Additionally, the board commissioner may recommend that up to $5,500,000 from
195.23the corpus of the trust may be used for additional grants, loans, loan guarantees, or equity
195.24investments for the purposes set forth in paragraph (a).
195.25(d) The commissioner of Iron Range resources and rehabilitation, after seeking a
195.26recommendation from the board, may require that it the board receive an equity percentage
195.27in any project to which it contributes under this section.

195.28    Sec. 26. Minnesota Statutes 2016, section 298.2961, subdivision 2, is amended to read:
195.29    Subd. 2. Projects; approval. (a) Projects funded must be for:
195.30    (1) environmentally unique reclamation projects; or
195.31    (2) pit or plant repairs, expansions, or modernizations other than for a value added iron
195.32products plant.
196.1    (b) To be proposed by the board, a project must be approved by Before the commissioner
196.2may propose a project, the commissioner must seek a recommendation from the board. The
196.3money for a project may be spent only upon approval of the project by the governor. The
196.4board commissioner may submit a supplemental projects project for approval at any time
196.5after seeking a recommendation for the project from the board.
196.6    (c) The board commissioner may require that it the board receive an equity percentage
196.7in any project to which it contributes under this section.

196.8    Sec. 27. Minnesota Statutes 2016, section 298.2961, subdivision 4, is amended to read:
196.9    Subd. 4. Grant and loan fund. (a) A fund is established to receive distributions under
196.10section 298.28, subdivision 9b, and to make grants or loans as provided in this subdivision.
196.11Any grant or loan made under this subdivision must first be approved by the commissioner
196.12after seeking a recommendation from the board, established under section 298.22.
196.13    (b) All distributions received in 2009 and subsequent years are allocated for projects
196.14under section 298.223, subdivision 1.

196.15    Sec. 28. Minnesota Statutes 2016, section 298.46, subdivision 2, is amended to read:
196.16    Subd. 2. Unmined iron ore; valuation petition. When in the opinion of the duly
196.17constituted authorities of a taxing district there are in existence reserves of unmined iron
196.18ore located in such district, these authorities may petition the commissioner of Iron Range
196.19resources and rehabilitation Board for authority to petition the county assessor to verify the
196.20existence of such reserves and to ascertain the value thereof by drilling in a manner consistent
196.21with established engineering and geological exploration methods, in order that such taxing
196.22district may be able to forecast in a proper manner its future economic and fiscal potentials.
196.23The commissioner of Iron Range resources and rehabilitation may grant the authority to
196.24petition after seeking a recommendation from the Iron Range Resources and Rehabilitation
196.25Board.

196.26    Sec. 29. IRON RANGE RESOURCES AND REHABILITATION BOARD; EARLY
196.27SEPARATION INCENTIVE PROGRAM AUTHORIZATION.
196.28(a) "Commissioner" as used in this section means the commissioner of the Iron Range
196.29Resources and Rehabilitation Board unless otherwise specified.
196.30(b) Notwithstanding any law to the contrary, the commissioner, in consultation with the
196.31commissioner of management and budget, shall offer a targeted early separation incentive
196.32program for employees of the commissioner who have attained the age of 60 years or who
197.1have received credit for at least 30 years of allowable service under the provisions of
197.2Minnesota Statutes, chapter 352. The commissioner shall also offer a targeted separation
197.3incentive program for employees of the commissioner whose positions are in support of
197.4operations at Giants Ridge and will be eliminated if the agency no longer directly manages
197.5Giants Ridge operations.
197.6(c) The early separation incentive program may include one or more of the following:
197.7(1) employer-paid postseparation health, medical, and dental insurance until age 65; and
197.8(2) cash incentives that may, but are not required to be, used to purchase additional years
197.9of service credit through the Minnesota State Retirement System, to the extent that the
197.10purchases are otherwise authorized by law.
197.11(d) The commissioner shall establish eligibility requirements for employees to receive
197.12an incentive.
197.13(e) The commissioner, consistent with the established program provisions under paragraph
197.14(b), and with the eligibility requirements under paragraph (f), may designate specific
197.15programs or employees as eligible to be offered the incentive program.
197.16(f) Acceptance of the offered incentive must be voluntary on the part of the employee
197.17and must be in writing. The incentive may only be offered at the sole discretion of the
197.18commissioner.
197.19(g) The cost of the incentive is payable solely by funds made available to the
197.20commissioner by law, but only on prior approval of the expenditures by the commissioner,
197.21after seeking a recommendation from the Iron Range Resources and Rehabilitation Board.
197.22(h) Unilateral implementation of this section by the commissioner is not an unfair labor
197.23practice under Minnesota Statutes, chapter 179A.
197.24EFFECTIVE DATE.This section is effective the day following final enactment. This
197.25section is repealed July 30, 2019.

197.26    Sec. 30. REVISOR'S INSTRUCTION.
197.27The revisor of statutes shall identify and propose necessary changes to Minnesota Statutes
197.28and Minnesota Rules that are consistent with the goals of this act to (i) transfer discretionary
197.29approval authority for all expenditures and projects from the Iron Range Resources and
197.30Rehabilitation Board to the commissioner of Iron Range resources and rehabilitation, and
197.31(ii) provide that the commissioner must, in good faith, seek the review and recommendation
197.32of the board, as required, before exercising approval authority. The revisor shall submit the
198.1proposal, in a form ready for introduction, during the 2018 regular legislative session to the
198.2chairs and ranking minority members of the senate and house of representatives committees
198.3with jurisdiction over taxes.

198.4    Sec. 31. REPEALER.
198.5Minnesota Statutes 2016, sections 298.22, subdivision 8; 298.2213, subdivisions 4, 5,
198.6and 6; and 298.298, are repealed.

198.7ARTICLE 10

198.8DEPARTMENT OF REVENUE 2015-2016 SALES SUPPRESSION DEVICES
198.9PROVISIONS

198.10    Section 1. [289A.14] USE OF AUTOMATED SALES SUPPRESSION DEVICES;
198.11DEFINITIONS.
198.12(a) For the purposes of sections 289A.60, subdivision 32, 289A.63, subdivision 12, and
198.13609.5316, subdivision 3, the following terms have the meanings given.
198.14(b) "Automated sales suppression device" or "zapper" means a software program, carried
198.15on any tangible medium, or accessed through any other means, that falsifies the electronic
198.16records of electronic cash registers and other point-of-sale systems including, but not limited
198.17to, transaction data and transaction reports.
198.18(c) "Electronic cash register" means a device that keeps a register or supporting documents
198.19through the means of an electronic device or computer system designed to record transaction
198.20data for the purpose of computing, compiling, or processing retail sales transaction data in
198.21whatever manner.
198.22(d) "Phantom-ware" means hidden preinstalled or later-installed programming option
198.23embedded in the operating system of an electronic cash register or hardwired into the
198.24electronic cash register that can be used to create a virtual second electronic cash register
198.25or may eliminate or manipulate transaction records that may or may not be preserved in
198.26digital formats to represent the true or manipulated record of transactions in the electronic
198.27cash register.
198.28(e) "Transaction data" includes items purchased by a customer, the price of each item,
198.29the taxability determination for each item, a segregated tax amount for each of the taxed
198.30items, the date and time of the purchase, the name, address, and identification number of
198.31the vendor, and the receipt or invoice number of the transaction.
199.1(f) "Transaction report" means a report documenting, but not limited to, the sales, taxes
199.2collected, media totals, and discount voids at an electronic cash register that is printed on
199.3cash register tape at the end of a day or shift, or a report documenting every action at an
199.4electronic cash register that is stored electronically.
199.5EFFECTIVE DATE.This section is effective for activities enumerated in Minnesota
199.6Statutes, section 289A.63, subdivision 12, or 289A.60, subdivision 32, that occur on or after
199.7August 1, 2017.

199.8    Sec. 2. Minnesota Statutes 2016, section 289A.60, is amended by adding a subdivision to
199.9read:
199.10    Subd. 32. Sales suppression. (a) A person who:
199.11(1) sells;
199.12(2) transfers;
199.13(3) develops;
199.14(4) manufactures; or
199.15(5) possesses with the intent to sell or transfer
199.16an automated sales suppression device, zapper, phantom-ware, or similar device capable of
199.17being used to commit tax fraud or suppress sales is liable for a civil penalty calculated under
199.18paragraph (b).
199.19(b) The amount of the civil penalty equals the greater of (1) $2,000, or (2) the total
199.20amount of all taxes and penalties due that are attributable to the use of any automated sales
199.21suppression device, zapper, phantom-ware, or similar device facilitated by the sale, transfer,
199.22development, or manufacture of the automated sales suppression device, zapper,
199.23phantom-ware, or similar device by the person.
199.24(c) The definitions in section 289A.14 apply to this subdivision.
199.25(d) This subdivision does not apply to the commissioner, a person acting at the direction
199.26of the commissioner, an agent of the commissioner, law enforcement agencies, or
199.27postsecondary education institutions that possess an automated sales suppression device,
199.28zapper, or phantom-ware for study to combat the evasion of taxes by use of the automated
199.29sales suppression devices, zappers, or phantom-ware.
199.30EFFECTIVE DATE.This section is effective for activities enumerated that occur on
199.31or after August 1, 2017.

200.1    Sec. 3. Minnesota Statutes 2016, section 289A.63, is amended by adding a subdivision to
200.2read:
200.3    Subd. 12. Felony. (a) A person who sells, purchases, installs, transfers, develops,
200.4manufactures, or uses an automated sales suppression device, zapper, phantom-ware, or
200.5similar device knowing that the device or phantom-ware is capable of being used to commit
200.6tax fraud or suppress sales is guilty of a felony and may be sentenced to imprisonment for
200.7not more than five years or to a payment of a fine of not more than $10,000, or both.
200.8(b) An automated sales suppression device, zapper, phantom-ware, and any other device
200.9containing an automated sales suppression, zapper, or phantom-ware device or software is
200.10contraband and subject to forfeiture under section 609.5316.
200.11(c) The definitions in section 289A.14 apply to this subdivision.
200.12(d) This subdivision does not apply to the commissioner, a person acting at the direction
200.13of the commissioner, an agent of the commissioner, law enforcement agencies, or
200.14postsecondary education institutions that possess an automated sales suppression device,
200.15zapper, or phantom-ware for study to combat the evasion of taxes by use of the automated
200.16sales suppression devices, zappers, or phantom-ware.
200.17EFFECTIVE DATE.This section is effective for activities enumerated that occur on
200.18or after August 1, 2017.

200.19    Sec. 4. Minnesota Statutes 2016, section 609.5316, subdivision 3, is amended to read:
200.20    Subd. 3. Weapons, telephone cloning paraphernalia, automated sales suppression
200.21devices, and bullet-resistant vests. Weapons used are contraband and must be summarily
200.22forfeited to the appropriate agency upon conviction of the weapon's owner or possessor for
200.23a controlled substance crime; for any offense of this chapter or chapter 624, or for a violation
200.24of an order for protection under section 518B.01, subdivision 14. Bullet-resistant vests, as
200.25defined in section 609.486, worn or possessed during the commission or attempted
200.26commission of a crime are contraband and must be summarily forfeited to the appropriate
200.27agency upon conviction of the owner or possessor for a controlled substance crime or for
200.28any offense of this chapter. Telephone cloning paraphernalia used in a violation of section
200.29609.894 , and automated sales suppression devices, phantom-ware, and other devices
200.30containing an automated sales suppression or phantom-ware device or software used in
200.31violation of section 289A.63, subdivision 12, are contraband and must be summarily forfeited
200.32to the appropriate agency upon a conviction.
201.1EFFECTIVE DATE.This section is effective for activities enumerated in Minnesota
201.2Statutes, section 289A.63, subdivision 12, that occur on or after August 1, 2017.

201.3ARTICLE 11

201.4DEPARTMENT OF REVENUE 2015-2016 POLICY AND TECHNICAL
201.5PROVISIONS; INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES

201.6    Section 1. Minnesota Statutes 2016, section 289A.08, subdivision 11, is amended to read:
201.7    Subd. 11. Information included in income tax return. (a) The return must state:
201.8    (1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the address
201.9of the taxpayer in the same name or names and same address as the taxpayer has used in
201.10making the taxpayer's income tax return to the United States;
201.11    (2) the date or dates of birth of the taxpayer or taxpayers;
201.12    (3) the Social Security number of the taxpayer, or taxpayers, if a Social Security number
201.13has been issued by the United States with respect to the taxpayers; and
201.14    (4) the amount of the taxable income of the taxpayer as it appears on the federal return
201.15for the taxable year to which the Minnesota state return applies.
201.16    (b) The taxpayer must attach to the taxpayer's Minnesota state income tax return a copy
201.17of the federal income tax return that the taxpayer has filed or is about to file for the period,
201.18unless the taxpayer is eligible to telefile the federal return and does file the Minnesota return
201.19by telefiling.
201.20EFFECTIVE DATE.This section is effective the day following final enactment.

201.21    Sec. 2. Minnesota Statutes 2016, section 289A.08, subdivision 16, is amended to read:
201.22    Subd. 16. Tax refund or return preparers; electronic filing; paper filing fee imposed.
201.23(a) A "tax refund or return preparer," as defined in section 289A.60, subdivision 13, paragraph
201.24(f), who is a tax return preparer for purposes of section 6011(e) of the Internal Revenue
201.25Code, and who reasonably expects to prepare more than ten Minnesota individual income,
201.26corporate franchise, S corporation, partnership, or fiduciary income tax returns for the prior
201.27calendar year must file all Minnesota individual income, corporate franchise, S corporation,
201.28partnership, or fiduciary income tax returns prepared for that calendar year by electronic
201.29means.
201.30(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the return
201.31that the taxpayer did not want the return filed by electronic means.
202.1(c) For each return that is not filed electronically by a tax refund or return preparer under
202.2this subdivision, including returns filed under paragraph (b), a paper filing fee of $5 is
202.3imposed upon the preparer. The fee is collected from the preparer in the same manner as
202.4income tax. The fee does not apply to returns that the commissioner requires to be filed in
202.5paper form.
202.6EFFECTIVE DATE.This section is effective for taxable years beginning after December
202.731, 2016.

202.8    Sec. 3. Minnesota Statutes 2016, section 289A.09, subdivision 2, is amended to read:
202.9    Subd. 2. Withholding statement. (a) A person required to deduct and withhold from
202.10an employee a tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, or
202.11who would have been required to deduct and withhold a tax under section 290.92, subdivision
202.122a or 3, or persons required to withhold tax under section 290.923, subdivision 2, determined
202.13without regard to section 290.92, subdivision 19, if the employee or payee had claimed no
202.14more than one withholding exemption, or who paid wages or made payments not subject
202.15to withholding under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, to an
202.16employee or person receiving royalty payments in excess of $600, or who has entered into
202.17a voluntary withholding agreement with a payee under section 290.92, subdivision 20, must
202.18give every employee or person receiving royalty payments in respect to the remuneration
202.19paid by the person to the employee or person receiving royalty payments during the calendar
202.20year, on or before January 31 of the succeeding year, or, if employment is terminated before
202.21the close of the calendar year, within 30 days after the date of receipt of a written request
202.22from the employee if the 30-day period ends before January 31, a written statement showing
202.23the following:
202.24    (1) name of the person;
202.25    (2) the name of the employee or payee and the employee's or payee's Social Security
202.26account number;
202.27    (3) the total amount of wages as that term is defined in section 290.92, subdivision 1,
202.28paragraph (1); the total amount of remuneration subject to withholding under section 290.92,
202.29subdivision 20 ; the amount of sick pay as required under section 6051(f) of the Internal
202.30Revenue Code; and the amount of royalties subject to withholding under section 290.923,
202.31subdivision 2 ; and
202.32    (4) the total amount deducted and withheld as tax under section 290.92, subdivision 2a
202.33or 3, or 290.923, subdivision 2.
203.1    (b) The statement required to be furnished by paragraph (a) with respect to any
203.2remuneration must be furnished at those times, must contain the information required, and
203.3must be in the form the commissioner prescribes.
203.4    (c) The commissioner may prescribe rules providing for reasonable extensions of time,
203.5not in excess of 30 days, to employers or payers required to give the statements to their
203.6employees or payees under this subdivision.
203.7    (d) A duplicate of any statement made under this subdivision and in accordance with
203.8rules prescribed by the commissioner, along with a reconciliation in the form the
203.9commissioner prescribes of the statements for the calendar year, including a reconciliation
203.10of the quarterly returns required to be filed under subdivision 1, must be filed with the
203.11commissioner on or before February 28 January 31 of the year after the payments were
203.12made.
203.13    (e) If an employer cancels the employer's Minnesota withholding account number required
203.14by section 290.92, subdivision 24, the information required by paragraph (d), must be filed
203.15with the commissioner within 30 days of the end of the quarter in which the employer
203.16cancels its account number.
203.17    (f) The employer must submit the statements required to be sent to the commissioner in
203.18the same manner required to satisfy the federal reporting requirements of section 6011(e)
203.19of the Internal Revenue Code and the regulations issued under it. An employer must submit
203.20statements to the commissioner required by this section by electronic means if the employer
203.21is required to send more than 25 statements to the commissioner, even though the employer
203.22is not required to submit the returns federally by electronic means. For statements issued
203.23for wages paid in 2011 and after, the threshold is ten. All statements issued for withholding
203.24required under section 290.92 are aggregated for purposes of determining whether the
203.25electronic submission threshold is met. The commissioner shall prescribe the content, format,
203.26and manner of the statement pursuant to section 270C.30.
203.27    (g) A "third-party bulk filer" as defined in section 290.92, subdivision 30, paragraph
203.28(a), clause (2), must submit the returns required by this subdivision and subdivision 1,
203.29paragraph (a), with the commissioner by electronic means.
203.30EFFECTIVE DATE.This section is effective for statements required to be sent to the
203.31commissioner after December 31, 2017, except that the date change in paragraph (d) is
203.32effective for wages paid after December 31, 2016.

204.1    Sec. 4. Minnesota Statutes 2016, section 289A.12, subdivision 14, is amended to read:
204.2    Subd. 14. Regulated investment companies; Reporting exempt interest and
204.3exempt-interest dividends. (a) A regulated investment company paying $10 or more in
204.4exempt-interest dividends to an individual who is a resident of Minnesota, or any person
204.5receiving $10 or more of exempt interest or exempt-interest dividends and paying as nominee
204.6to an individual who is a resident of Minnesota, must make a return indicating the amount
204.7of the exempt interest or exempt-interest dividends, the name, address, and Social Security
204.8number of the recipient, and any other information that the commissioner specifies. The
204.9return must be provided to the shareholder recipient by February 15 of the year following
204.10the year of the payment. The return provided to the shareholder recipient must include a
204.11clear statement, in the form prescribed by the commissioner, that the exempt interest or
204.12exempt-interest dividends must be included in the computation of Minnesota taxable income.
204.13By June 1 of each year, the regulated investment company payor must file a copy of the
204.14return with the commissioner.
204.15    (b) For purposes of this subdivision, the following definitions apply.
204.16    (1) "Exempt-interest dividends" mean exempt-interest dividends as defined in section
204.17852(b)(5) of the Internal Revenue Code, but does not include the portion of exempt-interest
204.18dividends that are not required to be added to federal taxable income under section 290.0131,
204.19subdivision 2 , paragraph (b).
204.20    (2) "Regulated investment company" means regulated investment company as defined
204.21in section 851(a) of the Internal Revenue Code or a fund of the regulated investment company
204.22as defined in section 851(g) of the Internal Revenue Code.
204.23    (3) "Exempt interest" means income on obligations of any state other than Minnesota,
204.24or a political or governmental subdivision, municipality, or governmental agency or
204.25instrumentality of any state other than Minnesota, and exempt from federal income taxes
204.26under the Internal Revenue Code or any other federal statute.
204.27EFFECTIVE DATE.This section is effective for reports required to be filed after
204.28December 31, 2017.

204.29    Sec. 5. Minnesota Statutes 2016, section 289A.18, is amended by adding a subdivision to
204.30read:
204.31    Subd. 2a. Annual withholding returns; eligible employers. (a) An employer who
204.32deducts and withholds an amount required to be withheld by section 290.92 may file an
204.33annual return and make an annual payment of the amount required to be deducted and
205.1withheld for that calendar year if the employer has received a notification under paragraph
205.2(b). The ability to elect to file an annual return continues through the year following the
205.3year where an employer is required to deduct and withhold more than $500.
205.4(b) The commissioner is authorized to determine which employers are eligible to file
205.5an annual return and to notify employers who newly qualify to file an annual return because
205.6the amount an employer is required to deduct and withhold for that calendar year is $500
205.7or less based on the most recent period of four consecutive quarters for which the
205.8commissioner has compiled data on that employer's withholding tax for that period. At the
205.9time of notification, eligible employers may still decide to file returns and make deposits
205.10quarterly. An employer who decides to file returns and make deposits quarterly is required
205.11to make all returns and deposits required by this chapter and, notwithstanding paragraph
205.12(a), is subject to all applicable penalties for failing to do so.
205.13(c) If, at the end of any calendar month other than the last month of the calendar year,
205.14the aggregate amount of undeposited tax withheld by an employer who has elected to file
205.15an annual return exceeds $500, the employer must deposit the aggregate amount with the
205.16commissioner within 30 days of the end of the calendar month.
205.17(d) If an employer who has elected to file an annual return ceases to pay wages for which
205.18withholding is required, the employer must file a final return and deposit any undeposited
205.19tax within 30 days of the end of the calendar month following the month in which the
205.20employer ceased paying wages.
205.21(e) An employer not subject to paragraph (c) or (d) who elects to file an annual return
205.22must file the return and pay the tax not previously deposited before February 1 of the year
205.23following the year in which the tax was withheld.
205.24(f) A notification to an employer regarding eligibility to file an annual return under
205.25Minnesota Rules, part 8092.1400, is considered a notification under paragraph (a).
205.26EFFECTIVE DATE.This section is effective for taxable years beginning after December
205.2731, 2016.

205.28    Sec. 6. Minnesota Statutes 2016, section 289A.20, subdivision 2, is amended to read:
205.29    Subd. 2. Withholding from wages, entertainer withholding, withholding from
205.30payments to out-of-state contractors, and withholding by partnerships, small business
205.31corporations, trusts. (a) Except as provided in section 289A.18, subdivision 2a, a tax
205.32required to be deducted and withheld during the quarterly period must be paid on or before
205.33the last day of the month following the close of the quarterly period, unless an earlier time
206.1for payment is provided. A tax required to be deducted and withheld from compensation
206.2of an entertainer and from a payment to an out-of-state contractor must be paid on or before
206.3the date the return for such tax must be filed under section 289A.18, subdivision 2. Taxes
206.4required to be deducted and withheld by partnerships, S corporations, and trusts must be
206.5paid on a quarterly basis as estimated taxes under section 289A.25 for partnerships and
206.6trusts and under section 289A.26 for S corporations.
206.7(b) An employer who, during the previous quarter, withheld more than $1,500 of tax
206.8under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, must deposit tax
206.9withheld under those sections with the commissioner within the time allowed to deposit the
206.10employer's federal withheld employment taxes under Code of Federal Regulations, title 26,
206.11section 31.6302-1, as amended through December 31, 2001, without regard to the safe
206.12harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3). Taxpayers
206.13must submit a copy of their federal notice of deposit status to the commissioner upon request
206.14by the commissioner.
206.15(c) The commissioner may prescribe by rule other return periods or deposit requirements.
206.16In prescribing the reporting period, the commissioner may classify payors according to the
206.17amount of their tax liability and may adopt an appropriate reporting period for the class that
206.18the commissioner judges to be consistent with efficient tax collection. In no event will the
206.19duration of the reporting period be more than one year.
206.20(d) If less than the correct amount of tax is paid to the commissioner, proper adjustments
206.21with respect to both the tax and the amount to be deducted must be made, without interest,
206.22in the manner and at the times the commissioner prescribes. If the underpayment cannot be
206.23adjusted, the amount of the underpayment will be assessed and collected in the manner and
206.24at the times the commissioner prescribes.
206.25(e) If the aggregate amount of the tax withheld is $10,000 or more in a fiscal year ending
206.26June 30, the employer must remit each required deposit for wages paid in all subsequent
206.27calendar years by electronic means.
206.28(f) A third-party bulk filer as defined in section 290.92, subdivision 30, paragraph (a),
206.29clause (2), who remits withholding deposits must remit all deposits by electronic means as
206.30provided in paragraph (e), regardless of the aggregate amount of tax withheld during a fiscal
206.31year for all of the employers.
206.32EFFECTIVE DATE.This section is effective for taxable years beginning after December
206.3331, 2016.

207.1    Sec. 7. Minnesota Statutes 2016, section 289A.31, subdivision 1, is amended to read:
207.2    Subdivision 1. Individual income, fiduciary income, mining company, corporate
207.3franchise, and entertainment taxes. (a) Individual income, fiduciary income, mining
207.4company, and corporate franchise taxes, and interest and penalties, must be paid by the
207.5taxpayer upon whom the tax is imposed, except in the following cases:
207.6(1) The tax due from a decedent for that part of the taxable year in which the decedent
207.7died during which the decedent was alive and the taxes, interest, and penalty due for the
207.8prior years must be paid by the decedent's personal representative, if any. If there is no
207.9personal representative, the taxes, interest, and penalty must be paid by the transferees, as
207.10defined in section 270C.58, subdivision 3, to the extent they receive property from the
207.11decedent;
207.12(2) The tax due from an infant or other incompetent person must be paid by the person's
207.13guardian or other person authorized or permitted by law to act for the person;
207.14(3) The tax due from the estate of a decedent must be paid by the estate's personal
207.15representative;
207.16(4) The tax due from a trust, including those within the definition of a corporation, as
207.17defined in section 290.01, subdivision 4, must be paid by a trustee; and
207.18(5) The tax due from a taxpayer whose business or property is in charge of a receiver,
207.19trustee in bankruptcy, assignee, or other conservator, must be paid by the person in charge
207.20of the business or property so far as the tax is due to the income from the business or property.
207.21(b) Entertainment taxes are the joint and several liability of the entertainer and the
207.22entertainment entity. The payor is liable to the state for the payment of the tax required to
207.23be deducted and withheld under section 290.9201, subdivision 7, and is not liable to the
207.24entertainer for the amount of the payment.
207.25(c) The tax taxes imposed under section sections 289A.35 and 290.0922 on partnerships
207.26is are the joint and several liability of the partnership and the general partners.
207.27EFFECTIVE DATE.This section is effective the day following final enactment.

207.28    Sec. 8. Minnesota Statutes 2016, section 289A.35, is amended to read:
207.29289A.35 ASSESSMENTS ON RETURNS.
207.30(a) The commissioner may audit and adjust the taxpayer's computation of federal taxable
207.31income, items of federal tax preferences, or federal credit amounts to make them conform
207.32with the provisions of chapter 290 or section 298.01. If a return has been filed, the
208.1commissioner shall enter the liability reported on the return and may make any audit or
208.2investigation that is considered necessary.
208.3(b) Upon petition by a taxpayer, and when the commissioner determines that it is in the
208.4best interest of the state, the commissioner may allow S corporations and partnerships to
208.5receive orders of assessment issued under section 270C.33, subdivision 4, on behalf of their
208.6owners, and to pay liabilities shown on such orders. In such cases, the owners' liability must
208.7be calculated using the method provided in section 289A.08, subdivision 7, paragraph (b).
208.8(c) A taxpayer may petition the commissioner for the use of the method described in
208.9paragraph (b) after the taxpayer is notified that an audit has been initiated and before an
208.10order of assessment has been issued.
208.11(d) A determination of the commissioner under paragraph (b) to grant or deny the petition
208.12of a taxpayer cannot be appealed to the Tax Court or any other court.
208.13(b) (e) The commissioner may audit and adjust the taxpayer's computation of tax under
208.14chapter 291. In the case of a return filed pursuant to section 289A.10, the commissioner
208.15shall notify the estate no later than nine months after the filing date, as provided by section
208.16289A.38, subdivision 2 , whether the return is under examination or the return has been
208.17processed as filed.
208.18EFFECTIVE DATE.This section is effective the day following final enactment.

208.19    Sec. 9. Minnesota Statutes 2016, section 289A.60, subdivision 28, is amended to read:
208.20    Subd. 28. Preparer identification number. Any Minnesota individual income tax return
208.21or claim for refund prepared by a "tax refund or return preparer" as defined in subdivision
208.2213, paragraph (f), shall bear the identification number the preparer is required to use federally
208.23under section 6109(a)(4) of the Internal Revenue Code. A tax refund or return preparer who
208.24prepares a Minnesota individual income tax return required by section 289A.08, subdivisions
208.251, 2, 3, and 7; or 289A.12, subdivision 3, or claim for refund and fails to include the required
208.26number on the return or claim is subject to a penalty of $50 for each failure.
208.27EFFECTIVE DATE.This section is effective for taxable years beginning after December
208.2831, 2016.

208.29    Sec. 10. Minnesota Statutes 2016, section 290.0672, subdivision 1, is amended to read:
208.30    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
208.31the meanings given.
209.1(b) "Long-term care insurance" means a policy that:
209.2(1) qualifies for a deduction under section 213 of the Internal Revenue Code, disregarding
209.3the 7.5 percent adjusted gross income test; or meets the requirements given in section 62A.46;
209.4or provides similar coverage issued under the laws of another jurisdiction; and
209.5(2) has a lifetime long-term care benefit limit of not less than $100,000; and
209.6(3) has been offered in compliance with the inflation protection requirements of section
209.762S.23 .
209.8(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.
209.9(d) "Premiums deducted in determining federal taxable income" means the lesser of (1)
209.10long-term care insurance premiums that qualify as deductions under section 213 of the
209.11Internal Revenue Code; and (2) the total amount deductible for medical care under section
209.12213 of the Internal Revenue Code.
209.13EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
209.14after December 31, 2012.

209.15    Sec. 11. Minnesota Statutes 2016, section 290.068, subdivision 2, is amended to read:
209.16    Subd. 2. Definitions. For purposes of this section, the following terms have the meanings
209.17given.
209.18    (a) "Qualified research expenses" means (i) qualified research expenses and basic research
209.19payments as defined in section 41(b) and (e) of the Internal Revenue Code, except it does
209.20not include expenses incurred for qualified research or basic research conducted outside
209.21the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code; and
209.22(ii) contributions to a nonprofit corporation established and operated pursuant to the
209.23provisions of chapter 317A for the purpose of promoting the establishment and expansion
209.24of business in this state, provided the contributions are invested by the nonprofit corporation
209.25for the purpose of providing funds for small, technologically innovative enterprises in
209.26Minnesota during the early stages of their development.
209.27    (b) "Qualified research" means qualified research as defined in section 41(d) of the
209.28Internal Revenue Code, except that the term does not include qualified research conducted
209.29outside the state of Minnesota.
209.30    (c) "Base amount" means base amount as defined in section 41(c) of the Internal Revenue
209.31Code, except that the average annual gross receipts and aggregate gross receipts must be
210.1calculated using Minnesota sales or receipts under section 290.191 and the definitions
210.2contained in clauses paragraphs (a) and (b) shall apply.
210.3EFFECTIVE DATE.This section is effective the day following final enactment.

210.4    Sec. 12. Minnesota Statutes 2016, section 290.17, subdivision 2, is amended to read:
210.5    Subd. 2. Income not derived from conduct of a trade or business. The income of a
210.6taxpayer subject to the allocation rules that is not derived from the conduct of a trade or
210.7business must be assigned in accordance with paragraphs (a) to (f):
210.8    (a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in section
210.93401(a) and (f) of the Internal Revenue Code is assigned to this state if, and to the extent
210.10that, the work of the employee is performed within it; all other income from such sources
210.11is treated as income from sources without this state.
210.12    Severance pay shall be considered income from labor or personal or professional services.
210.13    (2) In the case of an individual who is a nonresident of Minnesota and who is an athlete
210.14or entertainer, income from compensation for labor or personal services performed within
210.15this state shall be determined in the following manner:
210.16    (i) The amount of income to be assigned to Minnesota for an individual who is a
210.17nonresident salaried athletic team employee shall be determined by using a fraction in which
210.18the denominator contains the total number of days in which the individual is under a duty
210.19to perform for the employer, and the numerator is the total number of those days spent in
210.20Minnesota. For purposes of this paragraph, off-season training activities, unless conducted
210.21at the team's facilities as part of a team imposed program, are not included in the total number
210.22of duty days. Bonuses earned as a result of play during the regular season or for participation
210.23in championship, play-off, or all-star games must be allocated under the formula. Signing
210.24bonuses are not subject to allocation under the formula if they are not conditional on playing
210.25any games for the team, are payable separately from any other compensation, and are
210.26nonrefundable; and
210.27    (ii) The amount of income to be assigned to Minnesota for an individual who is a
210.28nonresident, and who is an athlete or entertainer not listed in clause (i), for that person's
210.29athletic or entertainment performance in Minnesota shall be determined by assigning to this
210.30state all income from performances or athletic contests in this state.
210.31    (3) For purposes of this section, amounts received by a nonresident as "retirement income"
210.32as defined in section (b)(1) of the State Income Taxation of Pension Income Act, Public
210.33Law 104-95, are not considered income derived from carrying on a trade or business or
211.1from wages or other compensation for work an employee performed in Minnesota, and are
211.2not taxable under this chapter.
211.3    (b) Income or gains from tangible property located in this state that is not employed in
211.4the business of the recipient of the income or gains must be assigned to this state.
211.5    (c) Income or gains from intangible personal property not employed in the business of
211.6the recipient of the income or gains must be assigned to this state if the recipient of the
211.7income or gains is a resident of this state or is a resident trust or estate.
211.8    Gain on the sale of a partnership interest is allocable to this state in the ratio of the
211.9original cost of partnership tangible property in this state to the original cost of partnership
211.10tangible property everywhere, determined at the time of the sale. If more than 50 percent
211.11of the value of the partnership's assets consists of intangibles, gain or loss from the sale of
211.12the partnership interest is allocated to this state in accordance with the sales factor of the
211.13partnership for its first full tax period immediately preceding the tax period of the partnership
211.14during which the partnership interest was sold.
211.15Gain on the sale of an interest in a single member limited liability company that is
211.16disregarded for federal income tax purposes is allocable to this state as if the single member
211.17limited liability company did not exist and the assets of the limited liability company are
211.18personally owned by the sole member.
211.19    Gain on the sale of goodwill or income from a covenant not to compete that is connected
211.20with a business operating all or partially in Minnesota is allocated to this state to the extent
211.21that the income from the business in the year preceding the year of sale was assignable
211.22allocable to Minnesota under subdivision 3.
211.23    When an employer pays an employee for a covenant not to compete, the income allocated
211.24to this state is in the ratio of the employee's service in Minnesota in the calendar year
211.25preceding leaving the employment of the employer over the total services performed by the
211.26employee for the employer in that year.
211.27    (d) Income from winnings on a bet made by an individual while in Minnesota is assigned
211.28to this state. In this paragraph, "bet" has the meaning given in section 609.75, subdivision
211.292 , as limited by section 609.75, subdivision 3, clauses (1), (2), and (3).
211.30    (e) All items of gross income not covered in paragraphs (a) to (d) and not part of the
211.31taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile.
211.32    (f) For the purposes of this section, working as an employee shall not be considered to
211.33be conducting a trade or business.
212.1EFFECTIVE DATE.This section is effective the day following final enactment.

212.2    Sec. 13. Minnesota Statutes 2016, section 290.31, subdivision 1, is amended to read:
212.3    Subdivision 1. Partners, not partnership, subject to tax. Except as provided under
212.4section 289A.35, paragraph (b), a partnership as such shall not be subject to the income tax
212.5imposed by this chapter, but is subject to the tax imposed under section 290.0922. Persons
212.6carrying on business as partners shall be liable for income tax only in their separate or
212.7individual capacities.
212.8EFFECTIVE DATE.This section is effective the day following final enactment.

212.9    Sec. 14. Minnesota Statutes 2016, section 290A.19, is amended to read:
212.10290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE.
212.11(a) The owner or managing agent of any property for which rent is paid for occupancy
212.12as a homestead must furnish a certificate of rent paid to a person who is a renter on December
212.1331, in the form prescribed by the commissioner. If the renter moves before December 31,
212.14the owner or managing agent may give the certificate to the renter at the time of moving,
212.15or mail the certificate to the forwarding address if an address has been provided by the
212.16renter. The certificate must be made available to the renter before February 1 of the year
212.17following the year in which the rent was paid. The owner or managing agent must retain a
212.18duplicate of each certificate or an equivalent record showing the same information for a
212.19period of three years. The duplicate or other record must be made available to the
212.20commissioner upon request.
212.21(b) The commissioner may require the owner or managing agent, through a simple
212.22process, to furnish to the commissioner on or before March 1 a copy of each certificate of
212.23rent paid furnished to a renter for rent paid in the prior year, in the content, format, and
212.24manner prescribed by the commissioner pursuant to section 270C.30. Prior to implementation,
212.25the commissioner, after consulting with representatives of owners or managing agents, shall
212.26develop an implementation and administration plan for the requirements of this paragraph
212.27that attempts to minimize financial burdens, administration and compliance costs, and takes
212.28into consideration existing systems of owners and managing agents.
212.29(c) For the purposes of this section, "owner" includes a park owner as defined under
212.30section 327C.01, subdivision 6, and "property" includes a lot as defined under section
212.31327C.01, subdivision 3 .
213.1EFFECTIVE DATE.This section is effective for certificates of rent paid furnished to
213.2a renter for rent paid after December 31, 2016.

213.3    Sec. 15. Minnesota Statutes 2016, section 291.016, subdivision 2, is amended to read:
213.4    Subd. 2. Additions. The following amounts, to the extent deducted in computing or
213.5otherwise excluded from the federal taxable estate, must be added in computing the
213.6Minnesota taxable estate:
213.7(1) the amount of the deduction for state death taxes allowed under section 2058 of the
213.8Internal Revenue Code;
213.9(2) the amount of the deduction for foreign death taxes allowed under section 2053(d)
213.10of the Internal Revenue Code; and
213.11(3) the aggregate amount of taxable gifts as defined in section 2503 of the Internal
213.12Revenue Code, made by the decedent within three years of the date of death. For purposes
213.13of this clause, the amount of the addition equals the value of the gift under section 2512 of
213.14the Internal Revenue Code and excludes any value of the gift included in the federal estate.
213.15EFFECTIVE DATE.This section is effective retroactively for estates of decedents
213.16dying after June 30, 2013.

213.17    Sec. 16. Minnesota Statutes 2016, section 291.016, subdivision 3, is amended to read:
213.18    Subd. 3. Subtraction. The following amounts, to the extent included in computing the
213.19federal taxable estate, may be subtracted in computing the Minnesota taxable estate but
213.20must not reduce the Minnesota taxable estate to less than zero:
213.21(1) the value of property subject to an election under section 291.03, subdivision 1d;
213.22and
213.23(2) the value of qualified small business property under section 291.03, subdivision 9,
213.24and the value of qualified farm property under section 291.03, subdivision 10, or the result
213.25of $5,000,000 minus the amount for the year of death listed in clauses (1) to (5) items (i)
213.26to (v), whichever is less, may be subtracted in computing the Minnesota taxable estate but
213.27must not reduce the Minnesota taxable estate to less than zero:
213.28(1) (i) $1,200,000 for estates of decedents dying in 2014;
213.29(2) (ii) $1,400,000 for estates of decedents dying in 2015;
213.30(3) (iii) $1,600,000 for estates of decedents dying in 2016;
214.1(4) (iv) $1,800,000 for estates of decedents dying in 2017; and
214.2(5) (v) $2,000,000 for estates of decedents dying in 2018 and thereafter.
214.3EFFECTIVE DATE.This section is effective retroactively for estates of decedents
214.4dying after June 30, 2011.

214.5    Sec. 17. Minnesota Statutes 2016, section 291.03, subdivision 9, is amended to read:
214.6    Subd. 9. Qualified small business property. Property satisfying all of the following
214.7requirements is qualified small business property:
214.8(1) The value of the property was included in the federal adjusted taxable estate.
214.9(2) The property consists of the assets of a trade or business or shares of stock or other
214.10ownership interests in a corporation or other entity engaged in a trade or business. Shares
214.11of stock in a corporation or an ownership interest in another type of entity do not qualify
214.12under this subdivision if the shares or ownership interests are traded on a public stock
214.13exchange at any time during the three-year period ending on the decedent's date of death.
214.14For purposes of this subdivision, an ownership interest includes the interest the decedent is
214.15deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code.
214.16(3) During the taxable year that ended before the decedent's death, the trade or business
214.17must not have been a passive activity within the meaning of section 469(c) of the Internal
214.18Revenue Code, and the decedent or the decedent's spouse must have materially participated
214.19in the trade or business within the meaning of section 469(h) of the Internal Revenue Code,
214.20excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided
214.21by United States Treasury Department regulation that substitutes material participation in
214.22prior taxable years for material participation in the taxable year that ended before the
214.23decedent's death.
214.24(4) The gross annual sales of the trade or business were $10,000,000 or less for the last
214.25taxable year that ended before the date of the death of the decedent.
214.26(5) The property does not consist of include:
214.27(i) cash,;
214.28(ii) cash equivalents,;
214.29(iii) publicly traded securities,; or
214.30(iv) any assets not used in the operation of the trade or business.
215.1(6) For property consisting of shares of stock or other ownership interests in an entity,
215.2the value of cash, cash equivalents, publicly traded securities, or assets not used in the
215.3operation of the trade or business held by the corporation or other entity items described in
215.4clause (5) must be deducted from the value of the property qualifying under this subdivision
215.5in proportion to the decedent's share of ownership of the entity on the date of death excluded
215.6in the valuation of the decedent's interest in the entity.
215.7(6) (7) The decedent continuously owned the property, including property the decedent
215.8is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for
215.9the three-year period ending on the date of death of the decedent. In the case of a sole
215.10proprietor, if the property replaced similar property within the three-year period, the
215.11replacement property will be treated as having been owned for the three-year period ending
215.12on the date of death of the decedent.
215.13(7) (8) For three years following the date of death of the decedent, the trade or business
215.14is not a passive activity within the meaning of section 469(c) of the Internal Revenue Code,
215.15and a family member materially participates in the operation of the trade or business within
215.16the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3)
215.17of the Internal Revenue Code and any other provision provided by United States Treasury
215.18Department regulation that substitutes material participation in prior taxable years for
215.19material participation in the three years following the date of death of the decedent.
215.20(8) (9) The estate and the qualified heir elect to treat the property as qualified small
215.21business property and agree, in the form prescribed by the commissioner, to pay the recapture
215.22tax under subdivision 11, if applicable.
215.23EFFECTIVE DATE.This section is effective retroactively for estates of decedents
215.24dying after June 30, 2011.

215.25    Sec. 18. Minnesota Statutes 2016, section 291.03, subdivision 11, is amended to read:
215.26    Subd. 11. Recapture tax. (a) If, within three years after the decedent's death and before
215.27the death of the qualified heir, the qualified heir disposes of any interest in the qualified
215.28property, other than by a disposition to a family member, or a family member ceases to
215.29satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional estate
215.30tax is imposed on the property. In the case of a sole proprietor, if the qualified heir replaces
215.31qualified small business property excluded under subdivision 9 with similar property, then
215.32the qualified heir will not be treated as having disposed of an interest in the qualified property.
216.1(b) The amount of the additional tax equals the amount of the exclusion claimed by the
216.2estate under subdivision 8, paragraph (d), multiplied by 16 percent.
216.3(c) The additional tax under this subdivision is due on the day which is six months after
216.4the date of the disposition or cessation in paragraph (a).
216.5(d) This subdivision shall not apply as a result of any of the following:
216.6(1) a portion of qualified farm property consisting of less than one-fifth of the acreage
216.7of the property is reclassified as class 2b property under section 273.13, subdivision 23, and
216.8the qualified heir has not substantially altered the reclassified property during the three-year
216.9holding period; or
216.10(2) a portion of qualified farm property classified as 2a property at the death of the
216.11decedent pursuant to section 273.13, subdivision 23, paragraph (a), consisting of a residence,
216.12garage, and immediately surrounding one acre of land is reclassified as 4bb property during
216.13the three-year holding period, and the qualified heir has not substantially altered the property.
216.14EFFECTIVE DATE.This section is effective retroactively for estates of decedents
216.15dying after June 30, 2011.

216.16    Sec. 19. REPEALER.
216.17(a) Minnesota Rules, part 8092.1400, is repealed.
216.18(b) Minnesota Rules, part 8092.2000, is repealed.
216.19EFFECTIVE DATE.Paragraph (a) is effective for taxable years beginning after
216.20December 31, 2016, except that notifications from the Department of Revenue to employers
216.21regarding eligibility to file an annual return for taxes withheld in calendar year 2017 remain
216.22in force. Paragraph (b) is effective the day following final enactment.

216.23ARTICLE 12

216.24DEPARTMENT OF REVENUE 2015-2016 POLICY AND TECHNICAL
216.25PROVISIONS; PROPERTY TAX

216.26    Section 1. Minnesota Statutes 2016, section 13.51, subdivision 2, is amended to read:
216.27    Subd. 2. Income property assessment data. The following data collected by political
216.28subdivisions and the state from individuals or business entities concerning income properties
216.29are classified as private or nonpublic data pursuant to section 13.02, subdivisions 9 and 12:
216.30(a) detailed income and expense figures;
216.31(b) average vacancy factors;
217.1(c) verified net rentable areas or net usable areas, whichever is appropriate;
217.2(d) anticipated income and expenses;
217.3(e) projected vacancy factors; and
217.4(f) lease information.
217.5EFFECTIVE DATE.This section is effective the day following final enactment.

217.6    Sec. 2. Minnesota Statutes 2016, section 270.071, subdivision 2, is amended to read:
217.7    Subd. 2. Air commerce. (a) "Air commerce" means the transportation by aircraft of
217.8persons or property for hire in interstate, intrastate, or international transportation on regularly
217.9scheduled flights or on intermittent or irregularly timed flights by airline companies and
217.10includes transportation by any airline company making three or more flights in or out of
217.11Minnesota, or within Minnesota, during a calendar year.
217.12(b) "Air commerce" includes but is not limited to an intermittent or irregularly timed
217.13flight, a flight arranged at the convenience of an airline and the person contracting for the
217.14transportation, or a charter flight. It includes any airline company making three or more
217.15flights in or out of Minnesota during a calendar year.
217.16(c) "Air commerce" does not include casual transportation for hire by aircraft commonly
217.17owned and used for private air flight purposes if the person furnishing the transportation
217.18does not hold out to be engaged regularly in transportation for hire.
217.19EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

217.20    Sec. 3. Minnesota Statutes 2016, section 270.071, subdivision 7, is amended to read:
217.21    Subd. 7. Flight property. "Flight property" means all aircraft and flight equipment used
217.22in connection therewith, including spare flight equipment. Flight property also includes
217.23computers and computer software used in operating, controlling, or regulating aircraft and
217.24flight equipment. Flight property does not include aircraft with a maximum takeoff weight
217.25of less than 30,000 pounds.
217.26EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

217.27    Sec. 4. Minnesota Statutes 2016, section 270.071, subdivision 8, is amended to read:
217.28    Subd. 8. Person. "Person" means any an individual, corporation, firm, copartnership,
217.29company, or association, and includes any guardian, trustee, executor, administrator, receiver,
217.30conservator, or any person acting in any fiduciary capacity therefor trust, estate, fiduciary,
218.1partnership, company, corporation, limited liability company, association, governmental
218.2unit or agency, public or private organization of any kind, or other legal entity.
218.3EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

218.4    Sec. 5. Minnesota Statutes 2016, section 270.071, is amended by adding a subdivision to
218.5read:
218.6    Subd. 10. Intermittent or irregularly timed flights. "Intermittently or irregularly timed
218.7flights" means any flight in which the departure time, departure location, and arrival location
218.8are specifically negotiated with the customer or the customer's representative, including but
218.9not limited to charter flights.
218.10EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

218.11    Sec. 6. Minnesota Statutes 2016, section 270.072, subdivision 2, is amended to read:
218.12    Subd. 2. Assessment of flight property. Flight property that is owned by, or is leased,
218.13loaned, or otherwise made available to an airline company operating in Minnesota shall be
218.14assessed and appraised annually by the commissioner with reference to its value on January
218.152 of the assessment year in the manner prescribed by sections 270.071 to 270.079. Aircraft
218.16with a gross weight of less than 30,000 pounds and used on intermittent or irregularly timed
218.17flights shall be excluded from the provisions of sections 270.071 to 270.079.
218.18EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

218.19    Sec. 7. Minnesota Statutes 2016, section 270.072, subdivision 3, is amended to read:
218.20    Subd. 3. Report by airline company. (a) Each year, on or before July 1, every airline
218.21company engaged in air commerce in this state shall file with the commissioner a report
218.22under oath setting forth specifically the information prescribed by the commissioner to
218.23enable the commissioner to make the assessment required in sections 270.071 to 270.079,
218.24unless the commissioner determines that the airline company or person should be excluded
218.25from is exempt from filing because its activities do not constitute air commerce as defined
218.26herein.
218.27    (b) The commissioner shall prescribe the content, format, and manner of the report
218.28pursuant to section 270C.30, except that a "law administered by the commissioner" includes
218.29the property tax laws. If a report is made by electronic means, the taxpayer's signature is
218.30defined pursuant to section 270C.304, except that a "law administered by the commissioner"
218.31includes the property tax laws.
219.1EFFECTIVE DATE.The amendment to paragraph (a) is effective for reports filed in
219.22018 and thereafter. The amendment adding paragraph (b) is effective the day following
219.3final enactment.

219.4    Sec. 8. Minnesota Statutes 2016, section 270.072, is amended by adding a subdivision to
219.5read:
219.6    Subd. 3a. Commissioner filed reports. If an airline company fails to file a report required
219.7by subdivision 3, the commissioner may, from information in the commissioner's possession
219.8or obtainable by the commissioner, make and file a report for the airline company, or may
219.9issue a notice of net tax capacity and tax under section 270.075, subdivision 2.
219.10EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

219.11    Sec. 9. Minnesota Statutes 2016, section 270.12, is amended by adding a subdivision to
219.12read:
219.13    Subd. 6. Reassessment orders. If the State Board of Equalization determines that a
219.14considerable amount of property has been undervalued or overvalued compared to like
219.15property such that the assessment is grossly unfair or inequitable, the State Board of
219.16Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue orders
219.17to the county assessor to reassess all parcels or an identified set of parcels in a county.
219.18EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

219.19    Sec. 10. Minnesota Statutes 2016, section 270C.89, subdivision 1, is amended to read:
219.20    Subdivision 1. Initial report. Each county assessor shall file by April 1 with the
219.21commissioner a copy of the abstract that will be acted upon by the local and county boards
219.22of review. The abstract must list the real and personal property in the county itemized by
219.23assessment districts. The assessor of each county in the state shall file with the commissioner,
219.24within ten working days following final action of the local board of review or equalization
219.25and within five days following final action of the county board of equalization, any changes
219.26made by the local or county board. The information must be filed in the manner prescribed
219.27by the commissioner. It must be accompanied by a printed or typewritten copy of the
219.28proceedings of the appropriate board.
219.29EFFECTIVE DATE.This section is effective for local and county boards of appeal
219.30and equalization meetings held in 2017 and thereafter.

220.1    Sec. 11. Minnesota Statutes 2016, section 272.02, subdivision 9, is amended to read:
220.2    Subd. 9. Personal property; exceptions. Except for the taxable personal property
220.3enumerated below, all personal property and the property described in section 272.03,
220.4subdivision 1 , paragraphs (c) and (d), shall be exempt.
220.5The following personal property shall be taxable:
220.6(a) personal property which is part of (1) an electric generating, transmission, or
220.7distribution system or; (2) a pipeline system transporting or distributing water, gas, crude
220.8oil, or petroleum products; or (3) mains and pipes used in the distribution of steam or hot
220.9or chilled water for heating or cooling buildings and structures;
220.10(b) railroad docks and wharves which are part of the operating property of a railroad
220.11company as defined in section 270.80;
220.12(c) personal property defined in section 272.03, subdivision 2, clause (3);
220.13(d) leasehold or other personal property interests which are taxed pursuant to section
220.14272.01, subdivision 2 ; 273.124, subdivision 7; or 273.19, subdivision 1; or any other law
220.15providing the property is taxable as if the lessee or user were the fee owner;
220.16(e) manufactured homes and sectional structures, including storage sheds, decks, and
220.17similar removable improvements constructed on the site of a manufactured home, sectional
220.18structure, park trailer or travel trailer as provided in section 273.125, subdivision 8, paragraph
220.19(f); and
220.20(f) flight property as defined in section 270.071.
220.21EFFECTIVE DATE.This section is effective the day following final enactment.

220.22    Sec. 12. Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read:
220.23    Subd. 2. Definitions. (a) For the purposes of this section, the term:
220.24(1) "wind energy conversion system" has the meaning given in section 216C.06,
220.25subdivision 19, and also includes a substation that is used and owned by one or more wind
220.26energy conversion facilities;
220.27(2) "large scale wind energy conversion system" means a wind energy conversion system
220.28of more than 12 megawatts, as measured by the nameplate capacity of the system or as
220.29combined with other systems as provided in paragraph (b);
221.1(3) "medium scale wind energy conversion system" means a wind energy conversion
221.2system of over two and not more than 12 megawatts, as measured by the nameplate capacity
221.3of the system or as combined with other systems as provided in paragraph (b); and
221.4(4) "small scale wind energy conversion system" means a wind energy conversion system
221.5of two megawatts and under, as measured by the nameplate capacity of the system or as
221.6combined with other systems as provided in paragraph (b).
221.7(b) For systems installed and contracted for after January 1, 2002, the total size of a
221.8wind energy conversion system under this subdivision shall be determined according to this
221.9paragraph. Unless the systems are interconnected with different distribution systems, the
221.10nameplate capacity of one wind energy conversion system shall be combined with the
221.11nameplate capacity of any other wind energy conversion system that is:
221.12(1) located within five miles of the wind energy conversion system;
221.13(2) constructed within the same calendar year 12-month period as the wind energy
221.14conversion system; and
221.15(3) under common ownership.
221.16In the case of a dispute, the commissioner of commerce shall determine the total size of
221.17the system, and shall draw all reasonable inferences in favor of combining the systems.
221.18(c) In making a determination under paragraph (b), the commissioner of commerce may
221.19determine that two wind energy conversion systems are under common ownership when
221.20the underlying ownership structure contains similar persons or entities, even if the ownership
221.21shares differ between the two systems. Wind energy conversion systems are not under
221.22common ownership solely because the same person or entity provided equity financing for
221.23the systems.
221.24EFFECTIVE DATE.This section is effective for reports filed in 2018 and thereafter.

221.25    Sec. 13. Minnesota Statutes 2016, section 272.029, is amended by adding a subdivision
221.26to read:
221.27    Subd. 8. Extension. The commissioner may, for good cause, extend the time for filing
221.28the report required by subdivision 4. The extension must not exceed 15 days.
221.29EFFECTIVE DATE.This section is effective for reports filed in 2018 and thereafter.

222.1    Sec. 14. Minnesota Statutes 2016, section 273.061, subdivision 7, is amended to read:
222.2    Subd. 7. Division of duties between local and county assessor. The duty of the duly
222.3appointed local assessor shall be to view and appraise the value of all property as provided
222.4by law, but all the book work shall be done by the county assessor, or the assessor's assistants,
222.5and the value of all property subject to assessment and taxation shall be determined by the
222.6county assessor, except as otherwise hereinafter provided. If directed by the county assessor,
222.7the local assessor shall must perform the duties enumerated in subdivision 8, clause (16),
222.8and must enter construction and valuation data into the records in the manner prescribed
222.9by the county assessor.
222.10EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

222.11    Sec. 15. Minnesota Statutes 2016, section 273.08, is amended to read:
222.12273.08 ASSESSOR'S DUTIES.
222.13The assessor shall actually view, and determine the market value of each tract or lot of
222.14real property listed for taxation, including the value of all improvements and structures
222.15thereon, at maximum intervals of five years and shall enter the value opposite each
222.16description. When directed by the county assessor, local assessors must enter construction
222.17and valuation data into the records in the manner prescribed by the county assessor.
222.18EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

222.19    Sec. 16. Minnesota Statutes 2016, section 273.121, is amended by adding a subdivision
222.20to read:
222.21    Subd. 3. Compliance. A county assessor, or a city assessor having the powers of a
222.22county assessor, who does not comply with the timely notice requirement under subdivision
222.231 must:
222.24(1) mail an additional valuation notice to each person who was not provided timely
222.25notice; and
222.26(2) convene a supplemental local board of appeal and equalization or local review session
222.27no sooner than ten days after sending the additional notices required by clause (1).
222.28EFFECTIVE DATE.This section is effective for valuation notices sent in 2018 and
222.29thereafter.

223.1    Sec. 17. Minnesota Statutes 2016, section 273.13, subdivision 22, is amended to read:
223.2    Subd. 22. Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and
223.3(c), real estate which is residential and used for homestead purposes is class 1a. In the case
223.4of a duplex or triplex in which one of the units is used for homestead purposes, the entire
223.5property is deemed to be used for homestead purposes. The market value of class 1a property
223.6must be determined based upon the value of the house, garage, and land.
223.7    The first $500,000 of market value of class 1a property has a net classification rate of
223.8one percent of its market value; and the market value of class 1a property that exceeds
223.9$500,000 has a classification rate of 1.25 percent of its market value.
223.10    (b) Class 1b property includes homestead real estate or homestead manufactured homes
223.11used for the purposes of a homestead by:
223.12    (1) any person who is blind as defined in section 256D.35, or the blind person and the
223.13blind person's spouse;
223.14    (2) any person who is permanently and totally disabled or by the disabled person and
223.15the disabled person's spouse; or
223.16    (3) the surviving spouse of a permanently and totally disabled veteran homesteading a
223.17property classified under this paragraph for taxes payable in 2008.
223.18    Property is classified and assessed under clause (2) only if the government agency or
223.19income-providing source certifies, upon the request of the homestead occupant, that the
223.20homestead occupant satisfies the disability requirements of this paragraph, and that the
223.21property is not eligible for the valuation exclusion under subdivision 34.
223.22    Property is classified and assessed under paragraph (b) only if the commissioner of
223.23revenue or the county assessor certifies that the homestead occupant satisfies the requirements
223.24of this paragraph.
223.25    Permanently and totally disabled for the purpose of this subdivision means a condition
223.26which is permanent in nature and totally incapacitates the person from working at an
223.27occupation which brings the person an income. The first $50,000 market value of class 1b
223.28property has a net classification rate of .45 percent of its market value. The remaining market
223.29value of class 1b property has a classification rate using the rates for is classified as class
223.301a or class 2a property, whichever is appropriate, of similar market value.
223.31    (c) Class 1c property is commercial use real and personal property that abuts public
223.32water as defined in section 103G.005, subdivision 15, and is devoted to temporary and
223.33seasonal residential occupancy for recreational purposes but not devoted to commercial
224.1purposes for more than 250 days in the year preceding the year of assessment, and that
224.2includes a portion used as a homestead by the owner, which includes a dwelling occupied
224.3as a homestead by a shareholder of a corporation that owns the resort, a partner in a
224.4partnership that owns the resort, or a member of a limited liability company that owns the
224.5resort even if the title to the homestead is held by the corporation, partnership, or limited
224.6liability company. For purposes of this paragraph, property is devoted to a commercial
224.7purpose on a specific day if any portion of the property, excluding the portion used
224.8exclusively as a homestead, is used for residential occupancy and a fee is charged for
224.9residential occupancy. Class 1c property must contain three or more rental units. A "rental
224.10unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping
224.11site equipped with water and electrical hookups for recreational vehicles. Class 1c property
224.12must provide recreational activities such as the rental of ice fishing houses, boats and motors,
224.13snowmobiles, downhill or cross-country ski equipment; provide marina services, launch
224.14services, or guide services; or sell bait and fishing tackle. Any unit in which the right to use
224.15the property is transferred to an individual or entity by deeded interest, or the sale of shares
224.16or stock, no longer qualifies for class 1c even though it may remain available for rent. A
224.17camping pad offered for rent by a property that otherwise qualifies for class 1c is also class
224.181c, regardless of the term of the rental agreement, as long as the use of the camping pad
224.19does not exceed 250 days. If the same owner owns two separate parcels that are located in
224.20the same township, and one of those properties is classified as a class 1c property and the
224.21other would be eligible to be classified as a class 1c property if it was used as the homestead
224.22of the owner, both properties will be assessed as a single class 1c property; for purposes of
224.23this sentence, properties are deemed to be owned by the same owner if each of them is
224.24owned by a limited liability company, and both limited liability companies have the same
224.25membership. The portion of the property used as a homestead is class 1a property under
224.26paragraph (a). The remainder of the property is classified as follows: the first $600,000 of
224.27market value is tier I, the next $1,700,000 of market value is tier II, and any remaining
224.28market value is tier III. The classification rates for class 1c are: tier I, 0.50 percent; tier II,
224.291.0 percent; and tier III, 1.25 percent. Owners of real and personal property devoted to
224.30temporary and seasonal residential occupancy for recreation purposes in which all or a
224.31portion of the property was devoted to commercial purposes for not more than 250 days in
224.32the year preceding the year of assessment desiring classification as class 1c, must submit a
224.33declaration to the assessor designating the cabins or units occupied for 250 days or less in
224.34the year preceding the year of assessment by January 15 of the assessment year. Those
224.35cabins or units and a proportionate share of the land on which they are located must be
224.36designated as class 1c as otherwise provided. The remainder of the cabins or units and a
225.1proportionate share of the land on which they are located must be designated as class 3a
225.2commercial. The owner of property desiring designation as class 1c property must provide
225.3guest registers or other records demonstrating that the units for which class 1c designation
225.4is sought were not occupied for more than 250 days in the year preceding the assessment
225.5if so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop,
225.6(4) conference center or meeting room, and (5) other nonresidential facility operated on a
225.7commercial basis not directly related to temporary and seasonal residential occupancy for
225.8recreation purposes does not qualify for class 1c.
225.9    (d) Class 1d property includes structures that meet all of the following criteria:
225.10    (1) the structure is located on property that is classified as agricultural property under
225.11section 273.13, subdivision 23;
225.12    (2) the structure is occupied exclusively by seasonal farm workers during the time when
225.13they work on that farm, and the occupants are not charged rent for the privilege of occupying
225.14the property, provided that use of the structure for storage of farm equipment and produce
225.15does not disqualify the property from classification under this paragraph;
225.16    (3) the structure meets all applicable health and safety requirements for the appropriate
225.17season; and
225.18    (4) the structure is not salable as residential property because it does not comply with
225.19local ordinances relating to location in relation to streets or roads.
225.20    The market value of class 1d property has the same classification rates as class 1a property
225.21under paragraph (a).
225.22EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

225.23    Sec. 18. Minnesota Statutes 2016, section 273.33, subdivision 1, is amended to read:
225.24    Subdivision 1. Listing and assessment in county. The personal property of express,
225.25stage and transportation companies, and of pipeline companies engaged in the business of
225.26transporting natural gas, gasoline, crude oil, or other petroleum products, except as otherwise
225.27provided by law, shall be listed and assessed in the county, town or district where the same
225.28is usually kept.
225.29EFFECTIVE DATE.This section is effective the day following final enactment.

226.1    Sec. 19. Minnesota Statutes 2016, section 273.33, subdivision 2, is amended to read:
226.2    Subd. 2. Listing and assessment by commissioner. The personal property, consisting
226.3of the pipeline system of mains, pipes, and equipment attached thereto, of pipeline companies
226.4and others engaged in the operations or business of transporting natural gas, gasoline, crude
226.5oil, or other petroleum products by pipelines, shall be listed with and assessed by the
226.6commissioner of revenue and the values provided to the city or county assessor by order.
226.7This subdivision shall not apply to the assessment of the products transported through the
226.8pipelines nor to the lines of local commercial gas companies engaged primarily in the
226.9business of distributing gas products to consumers at retail nor to pipelines used by the
226.10owner thereof to supply natural gas or other petroleum products exclusively for such owner's
226.11own consumption and not for resale to others. If more than 85 percent of the natural gas or
226.12other petroleum products actually transported over the pipeline is used for the owner's own
226.13consumption and not for resale to others, then this subdivision shall not apply; provided,
226.14however, that in that event, the pipeline shall be assessed in proportion to the percentage
226.15of gas products actually transported over such pipeline that is not used for the owner's own
226.16consumption. On or before August 1, the commissioner shall certify to the auditor of each
226.17county, the amount of such personal property assessment against each company in each
226.18district in which such property is located. If the commissioner determines that the amount
226.19of personal property assessment certified on or before August 1 is in error, the commissioner
226.20may issue a corrected certification on or before October 1. The commissioner may correct
226.21errors that are merely clerical in nature until December 31.
226.22EFFECTIVE DATE.This section is effective the day following final enactment.

226.23    Sec. 20. Minnesota Statutes 2016, section 273.372, subdivision 1, is amended to read:
226.24    Subdivision 1. Scope. (a) As provided in this section, an appeal by a utility or railroad
226.25company concerning property for which the commissioner of revenue has provided the city
226.26or county assessor with valuations by order, or for which the commissioner has recommended
226.27values to the city or county assessor, must be brought against the commissioner, and not
226.28against the county or taxing district where the property is located. Service must be made
226.29on the commissioner only, and not on the county or taxing district.
226.30(b) This section governs administrative appeals and appeals to court of a claim that utility
226.31or railroad operating property has been partially, unfairly, or unequally assessed, or assessed
226.32at a valuation greater than its real or actual value, misclassified, or that the property is
226.33exempt. This section applies only to property described in sections 270.81, subdivision 1,
226.34273.33 , 273.35, 273.36, and 273.37, and only with regard to taxable net tax capacities that
227.1have been provided to the city or county by the commissioner and which have not been
227.2changed by city or county. If the taxable net tax capacity being appealed is not the taxable
227.3net tax capacity established by the commissioner, or if the appeal claims that the tax rate
227.4applied against the parcel is incorrect, or that the tax has been paid, this section does not
227.5apply.
227.6EFFECTIVE DATE.This section is effective for appeals of valuations made in
227.7assessment year 2018 and thereafter.

227.8    Sec. 21. Minnesota Statutes 2016, section 273.372, subdivision 2, is amended to read:
227.9    Subd. 2. Contents and filing of petition. (a) In all appeals to court that are required to
227.10be brought against the commissioner under this section, the petition initiating the appeal
227.11must be served on the commissioner and must be filed with the Tax Court in Ramsey County,
227.12as provided in paragraph (b) or (c).
227.13(b) If the appeal to court is from an order of the commissioner, it must be brought under
227.14chapter 271 and filed within the time period prescribed in section 271.06, subdivision 2,
227.15except that when the provisions of this section conflict with chapter 271 or 278, this section
227.16prevails. In addition, the petition must include all the parcels encompassed by that order
227.17which the petitioner claims have been partially, unfairly, or unequally assessed, assessed
227.18at a valuation greater than their real or actual value, misclassified, or are exempt. For this
227.19purpose, an order of the commissioner is either (1) a certification or notice of value by the
227.20commissioner for property described in subdivision 1, or (2) the final determination by the
227.21commissioner of either an administrative appeal conference or informal administrative
227.22appeal described in subdivision 4.
227.23(c) If the appeal is from the tax that results from implementation of the commissioner's
227.24order, certification, or recommendation, it must be brought under chapter 278, and the
227.25provisions in that chapter apply, except that service shall be on the commissioner only and
227.26not on the local officials specified in section 278.01, subdivision 1, and if any other provision
227.27of this section conflicts with chapter 278, this section prevails. In addition, the petition must
227.28include either all the utility parcels or all the railroad parcels in the state in which the
227.29petitioner claims an interest and which the petitioner claims have been partially, unfairly,
227.30or unequally assessed, assessed at a valuation greater than their real or actual value,
227.31misclassified, or are exempt.
227.32EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

228.1    Sec. 22. Minnesota Statutes 2016, section 273.372, subdivision 4, is amended to read:
228.2    Subd. 4. Administrative appeals. (a) Companies that submit the reports under section
228.3270.82 or 273.371 by the date specified in that section, or by the date specified by the
228.4commissioner in an extension, may appeal administratively to the commissioner prior to
228.5bringing an action in court.
228.6    (b) Companies that must submit reports under section 270.82 must submit file a written
228.7request to for an appeal with the commissioner for a conference within ten 30 days after
228.8the notice date of the commissioner's valuation certification or other notice to the company,
228.9or by June 15, whichever is earlier. For purposes of this section, "notice date" means the
228.10notice date of the valuation certification, commissioner's order, recommendation, or other
228.11notice.
228.12    (c) Companies that submit reports under section 273.371 must submit a written request
228.13to the commissioner for a conference within ten days after the date of the commissioner's
228.14valuation certification or notice to the company, or by July 1, whichever is earlier The appeal
228.15need not be in any particular form but must contain the following information:
228.16    (1) name and address of the company;
228.17    (2) the date;
228.18    (3) its Minnesota identification number;
228.19    (4) the assessment year or period involved;
228.20    (5) the findings in the valuation that the company disputes;
228.21    (6) a summary statement specifying its reasons for disputing each item; and
228.22    (7) the signature of the company's duly authorized agent or representative.
228.23    (d) When requested in writing and within the time allowed for filing an administrative
228.24appeal, the commissioner may extend the time for filing an appeal for a period of not more
228.25than 15 days from the expiration of the time for filing the appeal.
228.26    (d) (e) The commissioner shall conduct the conference either in person or by telephone
228.27upon the commissioner's entire files and records and such further information as may be
228.28offered. The conference must be held no later than 20 days after the date of the
228.29commissioner's valuation certification or notice to the company, or by the date specified by
228.30the commissioner in an extension request for an appeal. Within 60 30 days after the
228.31conference the commissioner shall make a final determination of the matter and shall notify
229.1the company promptly of the determination. The conference is not a contested case hearing
229.2subject to chapter 14.
229.3    (e) In addition to the opportunity for a conference under paragraph (a), the commissioner
229.4shall also provide the railroad and utility companies the opportunity to discuss any questions
229.5or concerns relating to the values established by the commissioner through certification or
229.6notice in a less formal manner. This does not change or modify the deadline for requesting
229.7a conference under paragraph (a), the deadline in section 271.06 for appealing an order of
229.8the commissioner, or the deadline in section 278.01 for appealing property taxes in court.
229.9EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

229.10    Sec. 23. Minnesota Statutes 2016, section 273.372, is amended by adding a subdivision
229.11to read:
229.12    Subd. 5. Agreement determining valuation. When it appears to be in the best interest
229.13of the state, the commissioner may settle any matter under consideration regarding an appeal
229.14filed under this section. The agreement must be in writing and signed by the commissioner
229.15and the company or the company's authorized representative. The agreement is final and
229.16conclusive, and except upon a showing of fraud, malfeasance, or misrepresentation of a
229.17material fact, the case may not be reopened as to the matters agreed upon.
229.18EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

229.19    Sec. 24. Minnesota Statutes 2016, section 273.372, is amended by adding a subdivision
229.20to read:
229.21    Subd. 6. Dismissal of administrative appeal. If a taxpayer files an administrative appeal
229.22from an order of the commissioner and also files an appeal to the Tax Court for that same
229.23order of the commissioner, the administrative appeal is dismissed and the commissioner is
229.24no longer required to make the determination of appeal under subdivision 4.
229.25EFFECTIVE DATE.This section is effective beginning with assessment year 2017.

229.26    Sec. 25. [273.88] EQUALIZATION OF PUBLIC UTILITY STRUCTURES.
229.27After making the apportionment provided in Minnesota Rules, part 8100.0600, the
229.28commissioner must equalize the values of the operating structures to the level accepted by
229.29the State Board of Equalization if the appropriate sales ratio for each county, as conducted
229.30by the Department of Revenue pursuant to section 270.12, subdivision 2, clause (6), is
229.31outside the range accepted by the State Board of Equalization. The commissioner must not
230.1equalize the value of the operating structures if the sales ratio determined pursuant to this
230.2subdivision is within the range accepted by the State Board of Equalization.
230.3EFFECTIVE DATE.This section is effective beginning with assessment year 2017.

230.4    Sec. 26. Minnesota Statutes 2016, section 274.01, subdivision 1, is amended to read:
230.5    Subdivision 1. Ordinary board; meetings, deadlines, grievances. (a) The town board
230.6of a town, or the council or other governing body of a city, is the local board of appeal and
230.7equalization except (1) in cities whose charters provide for a board of equalization or (2)
230.8in any city or town that has transferred its local board of review power and duties to the
230.9county board as provided in subdivision 3. The county assessor shall fix a day and time
230.10when the board or the local board of equalization shall meet in the assessment districts of
230.11the county. Notwithstanding any law or city charter to the contrary, a city board of
230.12equalization shall be referred to as a local board of appeal and equalization. On or before
230.13February 15 of each year the assessor shall give written notice of the time to the city or
230.14town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings must
230.15be held between April 1 and May 31 each year. The clerk shall give published and posted
230.16notice of the meeting at least ten days before the date of the meeting.
230.17    The board shall meet either at a central location within the county or at the office of the
230.18clerk to review the assessment and classification of property in the town or city. No changes
230.19in valuation or classification which are intended to correct errors in judgment by the county
230.20assessor may be made by the county assessor after the board has adjourned in those cities
230.21or towns that hold a local board of review; however, corrections of errors that are merely
230.22clerical in nature or changes that extend homestead treatment to property are permitted after
230.23adjournment until the tax extension date for that assessment year. The changes must be fully
230.24documented and maintained in the assessor's office and must be available for review by any
230.25person. A copy of the changes made during this period in those cities or towns that hold a
230.26local board of review must be sent to the county board no later than December 31 of the
230.27assessment year.
230.28    (b) The board shall determine whether the taxable property in the town or city has been
230.29properly placed on the list and properly valued by the assessor. If real or personal property
230.30has been omitted, the board shall place it on the list with its market value, and correct the
230.31assessment so that each tract or lot of real property, and each article, parcel, or class of
230.32personal property, is entered on the assessment list at its market value. No assessment of
230.33the property of any person may be raised unless the person has been duly notified of the
230.34intent of the board to do so. On application of any person feeling aggrieved, the board shall
231.1review the assessment or classification, or both, and correct it as appears just. The board
231.2may not make an individual market value adjustment or classification change that would
231.3benefit the property if the owner or other person having control over the property has refused
231.4the assessor access to inspect the property and the interior of any buildings or structures as
231.5provided in section 273.20. A board member shall not participate in any actions of the board
231.6which result in market value adjustments or classification changes to property owned by
231.7the board member, the spouse, parent, stepparent, child, stepchild, grandparent, grandchild,
231.8brother, sister, uncle, aunt, nephew, or niece of a board member, or property in which a
231.9board member has a financial interest. The relationship may be by blood or marriage.
231.10    (c) A local board may reduce assessments upon petition of the taxpayer but the total
231.11reductions must not reduce the aggregate assessment made by the county assessor by more
231.12than one percent. If the total reductions would lower the aggregate assessments made by
231.13the county assessor by more than one percent, none of the adjustments may be made. The
231.14assessor shall correct any clerical errors or double assessments discovered by the board
231.15without regard to the one percent limitation.
231.16    (d) A local board does not have authority to grant an exemption or to order property
231.17removed from the tax rolls.
231.18    (e) A majority of the members may act at the meeting, and adjourn from day to day until
231.19they finish hearing the cases presented. The assessor shall attend and take part in the
231.20proceedings, but must not vote. The county assessor, or an assistant delegated by the county
231.21assessor shall attend the meetings. The board shall list separately all omitted property added
231.22to the list by the board and all items of property increased or decreased, with the market
231.23value of each item of property, added or changed by the board. The county assessor shall
231.24enter all changes made by the board.
231.25    (f) Except as provided in subdivision 3, if a person fails to appear in person, by counsel,
231.26or by written communication before the board after being duly notified of the board's intent
231.27to raise the assessment of the property, or if a person feeling aggrieved by an assessment
231.28or classification fails to apply for a review of the assessment or classification, the person
231.29may not appear before the county board of appeal and equalization for a review. This
231.30paragraph does not apply if an assessment was made after the local board meeting, as
231.31provided in section 273.01, or if the person can establish not having received notice of
231.32market value at least five days before the local board meeting.
231.33    (g) The local board must complete its work and adjourn within 20 days from the time
231.34of convening stated in the notice of the clerk, unless a longer period is approved by the
232.1commissioner of revenue. No action taken after that date is valid. All complaints about an
232.2assessment or classification made after the meeting of the board must be heard and
232.3determined by the county board of equalization. A nonresident may, at any time, before the
232.4meeting of the board file written objections to an assessment or classification with the county
232.5assessor. The objections must be presented to the board at its meeting by the county assessor
232.6for its consideration.
232.7EFFECTIVE DATE.This section is effective the day following final enactment.

232.8    Sec. 27. Minnesota Statutes 2016, section 274.13, subdivision 1, is amended to read:
232.9    Subdivision 1. Members; meetings; rules for equalizing assessments. The county
232.10commissioners, or a majority of them, with the county auditor, or, if the auditor cannot be
232.11present, the deputy county auditor, or, if there is no deputy, the court administrator of the
232.12district court, shall form a board for the equalization of the assessment of the property of
232.13the county, including the property of all cities whose charters provide for a board of
232.14equalization. This board shall be referred to as the county board of appeal and equalization.
232.15The board shall meet annually, on the date specified in section 274.14, at the office of the
232.16auditor. Each member shall take an oath to fairly and impartially perform duties as a member.
232.17Members shall not participate in any actions of the board which result in market value
232.18adjustments or classification changes to property owned by the board member, the spouse,
232.19parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt,
232.20nephew, or niece of a board member, or property in which a board member has a financial
232.21interest. The relationship may be by blood or marriage. The board shall examine and compare
232.22the returns of the assessment of property of the towns or districts, and equalize them so that
232.23each tract or lot of real property and each article or class of personal property is entered on
232.24the assessment list at its market value, subject to the following rules:
232.25    (1) The board shall raise the valuation of each tract or lot of real property which in its
232.26opinion is returned below its market value to the sum believed to be its market value. The
232.27board must first give notice of intention to raise the valuation to the person in whose name
232.28it is assessed, if the person is a resident of the county. The notice must fix a time and place
232.29for a hearing.
232.30    (2) The board shall reduce the valuation of each tract or lot which in its opinion is returned
232.31above its market value to the sum believed to be its market value.
232.32    (3) The board shall raise the valuation of each class of personal property which in its
232.33opinion is returned below its market value to the sum believed to be its market value. It
232.34shall raise the aggregate value of the personal property of individuals, firms, or corporations,
233.1when it believes that the aggregate valuation, as returned, is less than the market value of
233.2the taxable personal property possessed by the individuals, firms, or corporations, to the
233.3sum it believes to be the market value. The board must first give notice to the persons of
233.4intention to do so. The notice must set a time and place for a hearing.
233.5    (4) The board shall reduce the valuation of each class of personal property that is returned
233.6above its market value to the sum it believes to be its market value. Upon complaint of a
233.7party aggrieved, the board shall reduce the aggregate valuation of the individual's personal
233.8property, or of any class of personal property for which the individual is assessed, which
233.9in its opinion has been assessed at too large a sum, to the sum it believes was the market
233.10value of the individual's personal property of that class.
233.11    (5) The board must not reduce the aggregate value of all the property of its county, as
233.12submitted to the county board of equalization, with the additions made by the auditor under
233.13this chapter, by more than one percent of its whole valuation. The board may raise the
233.14aggregate valuation of real property, and of each class of personal property, of the county,
233.15or of any town or district of the county, when it believes it is below the market value of the
233.16property, or class of property, to the aggregate amount it believes to be its market value.
233.17    (6) The board shall change the classification of any property which in its opinion is not
233.18properly classified.
233.19    (7) The board does not have the authority to grant an exemption or to order property
233.20removed from the tax rolls.
233.21    (8) The board may not make an individual market value adjustment or classification
233.22change that would benefit property if the owner or other person having control over the
233.23property has refused the assessor access to inspect the property and the interior of any
233.24buildings or structures as provided in section 273.20.
233.25EFFECTIVE DATE.This section is effective for county board of appeal and
233.26equalization meetings in 2018 and thereafter.

233.27    Sec. 28. Minnesota Statutes 2016, section 274.135, subdivision 3, is amended to read:
233.28    Subd. 3. Proof of compliance; transfer of duties. (a) Any county that conducts county
233.29boards of appeal and equalization meetings must provide proof to the commissioner by
233.30December 1, 2009, and each year thereafter, February 1 that it is in compliance with the
233.31requirements of subdivision 2. Beginning in 2009, This notice must also verify that there
233.32was a quorum of voting members at each meeting of the board of appeal and equalization
233.33in the current previous year. A county that does not comply with these requirements is
234.1deemed to have transferred its board of appeal and equalization powers to the special board
234.2of equalization appointed pursuant to section 274.13, subdivision 2, beginning with the
234.3following year's assessment and continuing unless the powers are reinstated under paragraph
234.4(c). A county that does not comply with the requirements of subdivision 2 and has not
234.5appointed a special board of equalization shall appoint a special board of equalization before
234.6the following year's assessment.
234.7    (b) The county shall notify the taxpayers when the board of appeal and equalization for
234.8a county has been transferred to the special board of equalization under this subdivision
234.9and, prior to the meeting time of the special board of equalization, the county shall make
234.10available to those taxpayers a procedure for a review of the assessments, including, but not
234.11limited to, open book meetings. This alternate review process must take place in April and
234.12May.
234.13    (c) A county board whose powers are transferred to the special board of equalization
234.14under this subdivision may be reinstated by resolution of the county board and upon proof
234.15of compliance with the requirements of subdivision 2. The resolution and proofs must be
234.16provided to the commissioner by December February 1 in order to be effective for the
234.17following current year's assessment.
234.18(d) If a person who was entitled to appeal to the county board of appeal and equalization
234.19or to the county special board of equalization is not able to do so in a particular year because
234.20the county board or special board did not meet the quorum and training requirements in this
234.21section and section 274.13, or because the special board was not appointed, that person may
234.22instead appeal to the commissioner of revenue, provided that the appeal is received by the
234.23commissioner prior to August 1. The appeal is not subject to either chapter 14 or section
234.24270C.92 . The commissioner must issue an appropriate order to the county assessor in
234.25response to each timely appeal, either upholding or changing the valuation or classification
234.26of the property. Prior to October 1 of each year, the commissioner must charge and bill the
234.27county where the property is located $500 for each tax parcel covered by an order issued
234.28under this paragraph in that year. Amounts received by the commissioner under this paragraph
234.29must be deposited in the state's general fund. If payment of a billed amount is not received
234.30by the commissioner before December 1 of the year when billed, the commissioner must
234.31deduct that unpaid amount from any state aid the commissioner would otherwise pay to the
234.32county under chapter 477A in the next year. Late payments may either be returned to the
234.33county uncashed and undeposited or may be accepted. If a late payment is accepted, the
234.34state aid paid to the county under chapter 477A must be adjusted within 12 months to
234.35eliminate any reduction that occurred because the payment was late. Amounts needed to
235.1make these adjustments are included in the appropriation under section 477A.03, subdivision
235.22 .
235.3EFFECTIVE DATE.This section is effective for county board of appeal and
235.4equalization meetings held in 2018 and thereafter.

235.5    Sec. 29. Minnesota Statutes 2016, section 275.065, subdivision 1, is amended to read:
235.6    Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the contrary,
235.7on or before September 30, each county and each home rule charter or statutory city shall
235.8certify to the county auditor the proposed property tax levy for taxes payable in the following
235.9year.
235.10    (b) Notwithstanding any law or charter to the contrary, on or before September 15, each
235.11town and each special taxing district shall adopt and certify to the county auditor a proposed
235.12property tax levy for taxes payable in the following year. For towns, the final certified levy
235.13shall also be considered the proposed levy.
235.14    (c) On or before September 30, each school district that has not mutually agreed with
235.15its home county to extend this date shall certify to the county auditor the proposed property
235.16tax levy for taxes payable in the following year. Each school district that has agreed with
235.17its home county to delay the certification of its proposed property tax levy must certify its
235.18proposed property tax levy for the following year no later than October 7. The school district
235.19shall certify the proposed levy as:
235.20    (1) a specific dollar amount by school district fund, broken down between voter-approved
235.21and non-voter-approved levies and between referendum market value and tax capacity
235.22levies; or
235.23    (2) the maximum levy limitation certified by the commissioner of education according
235.24to section 126C.48, subdivision 1.
235.25    (d) If the board of estimate and taxation or any similar board that establishes maximum
235.26tax levies for taxing jurisdictions within a first class city certifies the maximum property
235.27tax levies for funds under its jurisdiction by charter to the county auditor by the date specified
235.28in paragraph (a), the city shall be deemed to have certified its levies for those taxing
235.29jurisdictions.
235.30    (e) For purposes of this section, "special taxing district" means a special taxing district
235.31as defined in section 275.066. Intermediate school districts that levy a tax under chapter
235.32124 or 136D, joint powers boards established under sections 123A.44 to 123A.446, and
236.1Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special
236.2taxing districts for purposes of this section.
236.3(f) At the meeting at which a taxing authority, other than a town, adopts its proposed
236.4tax levy under this subdivision, the taxing authority shall announce the time and place of
236.5its any subsequent regularly scheduled meetings at which the budget and levy will be
236.6discussed and at which the public will be allowed to speak. The time and place of those
236.7meetings must be included in the proceedings or summary of proceedings published in the
236.8official newspaper of the taxing authority under section 123B.09, 375.12, or 412.191.
236.9EFFECTIVE DATE.This section is effective the day following final enactment.

236.10    Sec. 30. Minnesota Statutes 2016, section 275.62, subdivision 2, is amended to read:
236.11    Subd. 2. Local governments required to report. For purposes of this section, "local
236.12governmental unit" means a county, home rule charter or statutory city with a population
236.13greater than 2,500, a town with a population greater than 5,000, or a home rule charter or
236.14statutory city or town that receives a distribution from the taconite municipal aid account
236.15in the levy year.
236.16EFFECTIVE DATE.This section is effective the day following final enactment.

236.17    Sec. 31. Minnesota Statutes 2016, section 278.01, subdivision 1, is amended to read:
236.18    Subdivision 1. Determination of validity. (a) Any person having personal property, or
236.19any estate, right, title, or interest in or lien upon any parcel of land, who claims that such
236.20property has been partially, unfairly, or unequally assessed in comparison with other property
236.21in the (1) city, or (2) county, or (3) in the case of a county containing a city of the first class,
236.22the portion of the county excluding the first class city, or that the parcel has been assessed
236.23at a valuation greater than its real or actual value, or that the tax levied against the same is
236.24illegal, in whole or in part, or has been paid, or that the property is exempt from the tax so
236.25levied, may have the validity of the claim, defense, or objection determined by the district
236.26court of the county in which the tax is levied or by the Tax Court by serving one copy of a
236.27petition for such determination upon the county auditor, one copy on the county attorney,
236.28one copy on the county treasurer, and three copies on the county assessor. The county
236.29assessor shall immediately forward one copy of the petition to the appropriate governmental
236.30authority in a home rule charter or statutory city or town in which the property is located if
236.31that city or town employs its own certified assessor. A copy of the petition shall also be
236.32forwarded by the assessor to the school board of the school district in which the property
236.33is located.
237.1(b) In counties where the office of county treasurer has been combined with the office
237.2of county auditor, the county may elect to require the petitioner to serve the number of
237.3copies as determined by the county. The county assessor shall immediately forward one
237.4copy of the petition to the appropriate governmental authority in a home rule charter or
237.5statutory city or town in which the property is located if that city or town employs its own
237.6certified assessor. A list of petitioned properties, including the name of the petitioner, the
237.7identification number of the property, and the estimated market value, shall be sent on or
237.8before the first day of July by the county auditor/treasurer to the school board of the school
237.9district in which the property is located.
237.10(c) For all counties, the petitioner must file the copies with proof of service, in the office
237.11of the court administrator of the district court on or before April 30 of the year in which the
237.12tax becomes payable. A petition for determination under this section may be transferred by
237.13the district court to the Tax Court. An appeal may also be taken to the Tax Court under
237.14chapter 271 at any time following receipt of the valuation notice that county assessors or
237.15city assessors having the powers of a county assessor are required by section 273.121 to
237.16send to persons whose property is to be included on the assessment roll that year, but prior
237.17to May 1 of the year in which the taxes are payable.
237.18EFFECTIVE DATE.This section is effective the day following final enactment.

237.19    Sec. 32. Minnesota Statutes 2016, section 282.01, subdivision 1a, is amended to read:
237.20    Subd. 1a. Conveyance to public entities. (a) Upon written request from a state agency
237.21or a governmental subdivision of the state, a parcel of unsold tax-forfeited land must be
237.22withheld from sale or lease to others for a maximum of six months. The request must be
237.23submitted to the county auditor. Upon receipt, the county auditor must withhold the parcel
237.24from sale or lease to any other party for six months, and must confirm the starting date of
237.25the six-month withholding period to the requesting agency or subdivision. If the request is
237.26from a governmental subdivision of the state, the governmental subdivision must pay the
237.27maintenance costs incurred by the county during the period the parcel is withheld. The
237.28county board may approve a sale or conveyance to the requesting party during the
237.29withholding period. A conveyance of the property to the requesting party terminates the
237.30withholding period.
237.31A governmental subdivision of the state must not make, and a county auditor must not
237.32act upon, a second request to withhold a parcel from sale or lease within 18 months of a
237.33previous request for that parcel. A county may reject a request made under this paragraph
237.34if the request is made more than 30 days after the county has given notice to the requesting
238.1state agency or governmental subdivision of the state that the county intends to sell or
238.2otherwise dispose of the property.
238.3(b) Nonconservation tax-forfeited lands may be sold by the county board, for their market
238.4value as determined by the county board, to an organized or incorporated governmental
238.5subdivision of the state for any public purpose for which the subdivision is authorized to
238.6acquire property. When the term "market value" is used in this section, it means an estimate
238.7of the full and actual market value of the parcel as determined by the county board, but in
238.8making this determination, the board and the persons employed by or under contract with
238.9the board in order to perform, conduct, or assist in the determination, are exempt from the
238.10licensure requirements of chapter 82B.
238.11(c) Nonconservation tax-forfeited lands may be released from the trust in favor of the
238.12taxing districts on application to sold by the county board by, for their market value as
238.13determined by the county board, to a state agency for an authorized use at not less than their
238.14market value as determined by the county board any public purpose for which the agency
238.15is authorized to acquire property.
238.16(d) Nonconservation tax-forfeited lands may be sold by the county board to an organized
238.17or incorporated governmental subdivision of the state or state agency for less than their
238.18market value if:
238.19(1) the county board determines that a sale at a reduced price is in the public interest
238.20because a reduced price is necessary to provide an incentive to correct the blighted conditions
238.21that make the lands undesirable in the open market, or the reduced price will lead to the
238.22development of affordable housing; and
238.23(2) the governmental subdivision or state agency has documented its specific plans for
238.24correcting the blighted conditions or developing affordable housing, and the specific law
238.25or laws that empower it to acquire real property in furtherance of the plans.
238.26If the sale under this paragraph is to a governmental subdivision of the state, the
238.27commissioner of revenue must convey the property on behalf of the state by quitclaim deed.
238.28If the sale under this paragraph is to a state agency, the property is released from the trust
238.29in favor of the taxing districts and the commissioner of revenue must issue a conveyance
238.30document that releases the property from the trust in favor of the taxing districts convey the
238.31property on behalf of the state by quitclaim deed to the agency.
238.32(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts may
238.33be conveyed by the commissioner of revenue in the name of the state to a governmental
238.34subdivision for an authorized public use, if an application is submitted to the commissioner
239.1which includes a statement of facts as to the use to be made of the tract and the favorable
239.2recommendation of the county board. For the purposes of this paragraph, "authorized public
239.3use" means a use that allows an indefinite segment of the public to physically use and enjoy
239.4the property in numbers appropriate to its size and use, or is for a public service facility.
239.5Authorized public uses as defined in this paragraph are limited to:
239.6(1) a road, or right-of-way for a road;
239.7(2) a park that is both available to, and accessible by, the public that contains
239.8improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters;
239.9(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along
239.10with a reasonable amount of surrounding land maintained in its natural state;
239.11(4) transit facilities for buses, light rail transit, commuter rail or passenger rail, including
239.12transit ways, park-and-ride lots, transit stations, maintenance and garage facilities, and other
239.13facilities related to a public transit system;
239.14(5) public beaches or boat launches;
239.15(6) public parking;
239.16(7) civic recreation or conference facilities; and
239.17(8) public service facilities such as fire halls, police stations, lift stations, water towers,
239.18sanitation facilities, water treatment facilities, and administrative offices.
239.19No monetary compensation or consideration is required for the conveyance, except as
239.20provided in subdivision 1g, but the conveyance is subject to the conditions provided in law,
239.21including, but not limited to, the reversion provisions of subdivisions 1c and 1d.
239.22(f) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited
239.23land to a local governmental subdivision of the state by quitclaim deed on behalf of the state
239.24upon the favorable recommendation of the county board if the governmental subdivision
239.25has certified to the board that prior to forfeiture the subdivision was entitled to the parcel
239.26under a written development agreement or instrument, but the conveyance failed to occur
239.27prior to forfeiture. No compensation or consideration is required for, and no conditions
239.28attach to, the conveyance.
239.29(g) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited
239.30land to the association of a common interest community by quitclaim deed upon the favorable
239.31recommendation of the county board if the association certifies to the board that prior to
239.32forfeiture the association was entitled to the parcel under a written agreement, but the
240.1conveyance failed to occur prior to forfeiture. No compensation or consideration is required
240.2for, and no conditions attach to, the conveyance.
240.3(h) Conservation tax-forfeited land may be sold to a governmental subdivision of the
240.4state for less than its market value for either: (1) creation or preservation of wetlands; (2)
240.5drainage or storage of storm water under a storm water management plan; or (3) preservation,
240.6or restoration and preservation, of the land in its natural state. The deed must contain a
240.7restrictive covenant limiting the use of the land to one of these purposes for 30 years or
240.8until the property is reconveyed back to the state in trust. At any time, the governmental
240.9subdivision may reconvey the property to the state in trust for the taxing districts. The deed
240.10of reconveyance is subject to approval by the commissioner of revenue. No part of a purchase
240.11price determined under this paragraph shall be refunded upon a reconveyance, but the
240.12amount paid for a conveyance under this paragraph may be taken into account by the county
240.13board when setting the terms of a future sale of the same property to the same governmental
240.14subdivision under paragraph (b) or (d). If the lands are unplatted and located outside of an
240.15incorporated municipality and the commissioner of natural resources determines there is a
240.16mineral use potential, the sale is subject to the approval of the commissioner of natural
240.17resources.
240.18(i) A park and recreation board in a city of the first class is a governmental subdivision
240.19for the purposes of this section.
240.20(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed by
240.21the commissioner of revenue in the name of the state to a governmental subdivision for a
240.22school forest under section 89.41. An application that includes a statement of facts as to the
240.23use to be made of the tract and the favorable recommendation of the county board and the
240.24commissioner of natural resources must be submitted to the commissioner of revenue. No
240.25monetary compensation or consideration is required for the conveyance, but the conveyance
240.26is subject to the conditional use and reversion provisions of subdivisions 1c and 1d, paragraph
240.27(e). At any time, the governmental subdivision may reconvey the property back to the state
240.28in trust for the taxing districts. The deed of reconveyance is subject to approval by the
240.29commissioner of revenue.
240.30EFFECTIVE DATE.This section is effective the day following final enactment.

240.31    Sec. 33. Minnesota Statutes 2016, section 282.01, subdivision 1d, is amended to read:
240.32    Subd. 1d. Reverter for failure to use; conveyance to state. (a) After three years from
240.33the date of any conveyance of tax-forfeited land to a governmental subdivision for an
240.34authorized public use as provided in this section, regardless of when the deed for the
241.1authorized public use was executed, if the governmental subdivision has failed to put the
241.2land to that use, or abandons that use, the governing body of the subdivision must: (1) with
241.3the approval of the county board, purchase the property for an authorized public purpose
241.4at the present market value as determined by the county board, or (2) authorize the proper
241.5officers to convey the land, or the part of the land not required for an authorized public use,
241.6to the state of Minnesota in trust for the taxing districts. If the governing body purchases
241.7the property under clause (1), the commissioner of revenue shall, upon proper application
241.8submitted by the county auditor and upon the reconveyance of the land subject to the
241.9conditional use deed to the state, convey the property on behalf of the state by quitclaim
241.10deed to the subdivision free of a use restriction and the possibility of reversion or
241.11defeasement. If the governing body decides to reconvey the property to the state under this
241.12clause, the officers shall execute a deed of conveyance immediately. The conveyance is
241.13subject to the approval of the commissioner and its form must be approved by the attorney
241.14general. For 15 years from the date of the conveyance, there is no failure to put the land to
241.15the authorized public use and no abandonment of that use if a formal plan of the governmental
241.16subdivision, including, but not limited to, a comprehensive plan or land use plan, shows an
241.17intended future use of the land for the authorized public use.
241.18(b) Property held by a governmental subdivision of the state under a conditional use
241.19deed executed under this section by the commissioner of revenue on or after January 1,
241.202007, may be acquired by that governmental subdivision after 15 years from the date of the
241.21conveyance if the commissioner determines upon written application from the subdivision
241.22that the subdivision has in fact put the property to the authorized public use for which it
241.23was conveyed, and the subdivision has made a finding that it has no current plans to change
241.24the use of the lands. Prior to conveying the property, the commissioner shall inquire whether
241.25the county board where the land is located objects to a conveyance of the property to the
241.26subdivision without conditions and without further act by or obligation of the subdivision.
241.27If the county does not object within 60 days, and the commissioner makes a favorable
241.28determination, the commissioner shall issue a quitclaim deed on behalf of the state
241.29unconditionally conveying the property to the governmental subdivision. For purposes of
241.30this paragraph, demonstration of an intended future use for the authorized public use in a
241.31formal plan of the governmental subdivision does not constitute use for that authorized
241.32public use.
241.33(c) Property held by a governmental subdivision of the state under a conditional use
241.34deed executed under this section by the commissioner of revenue before January 1, 2007,
241.35is released from the use restriction and possibility of reversion on January 1, 2022, if the
242.1county board records a resolution describing the land and citing this paragraph. The county
242.2board may authorize the county treasurer to deduct the amount of the recording fees from
242.3future settlements of property taxes to the subdivision.
242.4(d) Except for tax-forfeited land conveyed to establish a school forest under section
242.589.41 , property conveyed under a conditional use deed executed under this section by the
242.6commissioner of revenue, regardless of when the deed for the authorized public use was
242.7executed, is released from the use restriction and reverter, and any use restriction or reverter
242.8for which no declaration of reversion has been recorded with the county recorder or registrar
242.9of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2) 30 years from
242.10the date the deed was acknowledged; or (3) final resolution of an appeal to district court
242.11under subdivision 1e, if a lis pendens related to the appeal is recorded in the office of the
242.12county recorder or registrar of titles, as appropriate, prior to January 1, 2015.
242.13(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish a
242.14school forest under section 89.41 is subject to a perpetual conditional use deed and reverter.
242.15The property reverts to the state in trust for the taxing districts by operation of law if the
242.16commissioner of natural resources determines and reports to the commissioner of revenue
242.17under section 89.41, subdivision 3, that the governmental subdivision has failed to use the
242.18land for school forest purposes for three consecutive years. The commissioner of revenue
242.19shall record a declaration of reversion for land that has reverted under this paragraph.
242.20EFFECTIVE DATE.This section is effective the day following final enactment.

242.21    Sec. 34. Minnesota Statutes 2016, section 477A.013, is amended by adding a subdivision
242.22to read:
242.23    Subd. 14. Communication by electronic mail. Prior to receiving aid pursuant to this
242.24section, a city must register an official electronic mail address with the commissioner, which
242.25the commissioner may use as an exclusive means to communicate with the city.
242.26EFFECTIVE DATE.This section is effective for aids payable in 2018 and thereafter.

242.27    Sec. 35. Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision
242.28to read:
242.29    Subd. 3a. Certification. On or before June 1 of each year, the commissioner of natural
242.30resources shall certify to the commissioner of revenue the number of watercraft launches
242.31and the number of watercraft trailer parking spaces in each county.
242.32EFFECTIVE DATE.This section is effective for aids payable in 2018 and thereafter.

243.1    Sec. 36. Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision
243.2to read:
243.3    Subd. 3b. Certification. On or before June 1 of each year, the commissioner of natural
243.4resources shall certify to the commissioner of revenue the counties that complied with the
243.5requirements of subdivision 3 the prior year and are eligible to receive aid under this section.
243.6EFFECTIVE DATE.This section is effective for aids payable in 2018 and thereafter.

243.7    Sec. 37. Minnesota Statutes 2016, section 559.202, subdivision 2, is amended to read:
243.8    Subd. 2. Exception. This section does not apply to sales made under chapter 282 or if
243.9the purchaser is represented throughout the transaction by either:
243.10(1) a person licensed to practice law in this state; or
243.11(2) a person licensed as a real estate broker or salesperson under chapter 82, provided
243.12that the representation does not create a dual agency, as that term is defined in section 82.55,
243.13subdivision 6 .
243.14EFFECTIVE DATE.This section is effective for sales of tax-forfeited land occurring
243.15the day following final enactment and thereafter.

243.16    Sec. 38. Laws 2014, chapter 308, article 9, section 94, is amended to read:
243.17    Sec. 94. REPEALER.
243.18(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision
243.1919e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules,
243.20part 8007.0200, are repealed.
243.21(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, subdivision
243.222; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51, 53, 67, 72, and
243.2382; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; 273.03, subdivision 3; 273.075;
243.24273.13, subdivision 21a; 273.1383; 273.1386; 273.80; 275.77; 279.32; 281.173, subdivision
243.258; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, subdivision 4; 287.27,
243.26subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision 7; 297A.666; 297A.71,
243.27subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, and 41; 297F.08, subdivision 11; 297H.10,
243.28subdivision 2; 469.174, subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision 1i;
243.29469.177, subdivision 10; 477A.0124, subdivisions 1 and 6; and 505.173, Minnesota Statutes
243.302013 Supplement, section 273.1103, Laws 1993, chapter 375, article 9, section 47, and
244.1Minnesota Rules, parts 8002.0200, subpart 8; 8100.0800; and 8130.7500, subpart 7, are
244.2repealed.
244.3(c) Minnesota Statutes 2012, section 469.1764, is repealed.
244.4(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision 38;
244.5469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; 469.339;
244.6469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013 Supplement,
244.7section 469.340, subdivision 4, are repealed.
244.8(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed.
244.9EFFECTIVE DATE.This section is effective retroactively from May 20, 2014, and
244.10pursuant to Minnesota Statutes, section 645.36, Minnesota Statutes, section 272.027,
244.11subdivision 2, is revived and reenacted as of that date.

244.12    Sec. 39. REPEALER.
244.13(a) Minnesota Statutes 2016, section 281.22, is repealed.
244.14(b) Minnesota Rules, part 8100.0700, is repealed.
244.15EFFECTIVE DATE.Paragraph (a) is effective the day following final enactment.
244.16Paragraph (b) is effective for assessment year 2017 and thereafter.

244.17ARTICLE 13

244.18DEPARTMENT OF REVENUE 2015-2016 POLICY AND TECHNICAL
244.19PROVISIONS; MISCELLANEOUS

244.20    Section 1. Minnesota Statutes 2016, section 270.82, subdivision 1, is amended to read:
244.21    Subdivision 1. Annual report required. Every railroad company doing business in
244.22Minnesota shall annually file with the commissioner on or before March 31 a report under
244.23oath setting forth the information prescribed by the commissioner to enable the commissioner
244.24to make the valuation and equalization required by sections 270.80 to 270.87. The
244.25commissioner shall prescribe the content, format, and manner of the report pursuant to
244.26section 270C.30, except that a "law administered by the commissioner" includes the property
244.27tax laws. If a report is made by electronic means, the taxpayer's signature is defined pursuant
244.28to section 270C.304, except that a "law administered by the commissioner" includes the
244.29property tax laws.
244.30EFFECTIVE DATE.This section is effective the day following final enactment.

245.1    Sec. 2. Minnesota Statutes 2016, section 270A.03, subdivision 5, is amended to read:
245.2    Subd. 5. Debt. (a) "Debt" means a legal obligation of a natural person to pay a fixed and
245.3certain amount of money, which equals or exceeds $25 and which is due and payable to a
245.4claimant agency. The term includes criminal fines imposed under section 609.10 or 609.125,
245.5fines imposed for petty misdemeanors as defined in section 609.02, subdivision 4a, and
245.6restitution. A debt may arise under a contractual or statutory obligation, a court order, or
245.7other legal obligation, but need not have been reduced to judgment.
245.8    A debt includes any legal obligation of a current recipient of assistance which is based
245.9on overpayment of an assistance grant where that payment is based on a client waiver or
245.10an administrative or judicial finding of an intentional program violation; or where the debt
245.11is owed to a program wherein the debtor is not a client at the time notification is provided
245.12to initiate recovery under this chapter and the debtor is not a current recipient of food support,
245.13transitional child care, or transitional medical assistance.
245.14    (b) A debt does not include any legal obligation to pay a claimant agency for medical
245.15care, including hospitalization if the income of the debtor at the time when the medical care
245.16was rendered does not exceed the following amount:
245.17    (1) for an unmarried debtor, an income of $8,800 $12,560 or less;
245.18    (2) for a debtor with one dependent, an income of $11,270 $16,080 or less;
245.19    (3) for a debtor with two dependents, an income of $13,330 $19,020 or less;
245.20    (4) for a debtor with three dependents, an income of $15,120 $21,580 or less;
245.21    (5) for a debtor with four dependents, an income of $15,950 $22,760 or less; and
245.22    (6) for a debtor with five or more dependents, an income of $16,630 $23,730 or less.
245.23For purposes of this paragraph, "debtor" means the individual whose income, together
245.24with the income of the individual's spouse, other than a separated spouse, brings the
245.25individual within the income provisions of this paragraph. For purposes of this paragraph,
245.26a spouse, other than a separated spouse, shall be considered a dependent.
245.27    (c) The commissioner shall adjust the income amounts in paragraph (b) by the percentage
245.28determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except
245.29that in section 1(f)(3)(B) the word "1999 2014" shall be substituted for the word "1992."
245.30For 2001 2016, the commissioner shall then determine the percent change from the 12
245.31months ending on August 31, 1999 2014, to the 12 months ending on August 31, 2000 2015,
245.32and in each subsequent year, from the 12 months ending on August 31, 1999 2014, to the
246.112 months ending on August 31 of the year preceding the taxable year. The determination
246.2of the commissioner pursuant to this subdivision shall not be considered a "rule" and shall
246.3not be subject to the Administrative Procedure Act contained in chapter 14. The income
246.4amount as adjusted must be rounded to the nearest $10 amount. If the amount ends in $5,
246.5the amount is rounded up to the nearest $10 amount.
246.6    (d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of the
246.7dollar amount of the premium authorized under section 256L.15, subdivision 1a.
246.8EFFECTIVE DATE.The section is effective retroactively for debts incurred after
246.9December 31, 2014.

246.10    Sec. 3. Minnesota Statutes 2016, section 270B.14, subdivision 1, is amended to read:
246.11    Subdivision 1. Disclosure to commissioner of human services. (a) On the request of
246.12the commissioner of human services, the commissioner shall disclose return information
246.13regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to the
246.14extent provided in paragraph (b) and for the purposes set forth in paragraph (c).
246.15    (b) Data that may be disclosed are limited to data relating to the identity, whereabouts,
246.16employment, income, and property of a person owing or alleged to be owing an obligation
246.17of child support.
246.18    (c) The commissioner of human services may request data only for the purposes of
246.19carrying out the child support enforcement program and to assist in the location of parents
246.20who have, or appear to have, deserted their children. Data received may be used only as set
246.21forth in section 256.978.
246.22    (d) The commissioner shall provide the records and information necessary to administer
246.23the supplemental housing allowance to the commissioner of human services.
246.24    (e) At the request of the commissioner of human services, the commissioner of revenue
246.25shall electronically match the Social Security numbers and names of participants in the
246.26telephone assistance plan operated under sections 237.69 to 237.71, with those of property
246.27tax refund filers, and determine whether each participant's household income is within the
246.28eligibility standards for the telephone assistance plan.
246.29    (f) The commissioner may provide records and information collected under sections
246.30295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid
246.31Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law
246.32102-234. Upon the written agreement by the United States Department of Health and Human
246.33Services to maintain the confidentiality of the data, the commissioner may provide records
247.1and information collected under sections 295.50 to 295.59 to the Centers for Medicare and
247.2Medicaid Services section of the United States Department of Health and Human Services
247.3for purposes of meeting federal reporting requirements.
247.4    (g) The commissioner may provide records and information to the commissioner of
247.5human services as necessary to administer the early refund of refundable tax credits.
247.6    (h) The commissioner may disclose information to the commissioner of human services
247.7as necessary to verify income for income verification for eligibility and premium payment
247.8under the MinnesotaCare program, under section 256L.05, subdivision 2, as well as the
247.9medical assistance program under chapter 256B.
247.10    (i) The commissioner may disclose information to the commissioner of human services
247.11necessary to verify whether applicants or recipients for the Minnesota family investment
247.12program, general assistance, food support, Minnesota supplemental aid program, and child
247.13care assistance have claimed refundable tax credits under chapter 290 and the property tax
247.14refund under chapter 290A, and the amounts of the credits.
247.15    (j) The commissioner may disclose information to the commissioner of human services
247.16necessary to verify income for purposes of calculating parental contribution amounts under
247.17section 252.27, subdivision 2a.
247.18EFFECTIVE DATE.This section is effective the day following final enactment.

247.19    Sec. 4. Minnesota Statutes 2016, section 270C.30, is amended to read:
247.20270C.30 RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING.
247.21Except as otherwise provided by law, the commissioner shall prescribe the content and,
247.22format, and manner of all returns and other forms required to be filed under a law
247.23administered by the commissioner, and may furnish them subject to charge on application.
247.24EFFECTIVE DATE.This section is effective the day following final enactment.

247.25    Sec. 5. Minnesota Statutes 2016, section 270C.33, subdivision 5, is amended to read:
247.26    Subd. 5. Prohibition against collection during appeal period of an order. No collection
247.27action can be taken on an order of assessment, or any other order imposing a liability,
247.28including the filing of liens under section 270C.63, and no late payment penalties may be
247.29imposed when a return has been filed for the tax type and period upon which the order is
247.30based, during the appeal period of an order. The appeal period of an order ends: (1) 60 days
247.31after the order has been mailed to the taxpayer notice date designated by the commissioner
248.1on the order; (2) if an administrative appeal is filed under section 270C.35, 60 days after
248.2the notice date designated by the commissioner on the written determination of the
248.3administrative appeal; (3) if an appeal to Tax Court is filed under chapter 271, when the
248.4decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and the appeal
248.5is based upon a constitutional challenge to the tax, 60 days after final determination of the
248.6appeal. This subdivision does not apply to a jeopardy assessment under section 270C.36,
248.7or a jeopardy collection under section 270C.36.
248.8EFFECTIVE DATE.This section is effective for orders dated after December 31,
248.92017.

248.10    Sec. 6. Minnesota Statutes 2016, section 270C.33, subdivision 8, is amended to read:
248.11    Subd. 8. Sufficiency of notice. An assessment of tax made by the commissioner, sent
248.12postage prepaid by United States mail to the taxpayer at the taxpayer's last known address,
248.13or sent by electronic mail to the taxpayer's last known electronic mailing address as provided
248.14for in section 325L.08, is sufficient even if the taxpayer is deceased or is under a legal
248.15disability, or, in the case of a corporation, has terminated its existence, unless the
248.16commissioner has been provided with a new address by a party authorized to receive notices
248.17of assessment. Notice of an assessment is sufficient if it is sent on or before the notice date
248.18designated by the commissioner on the assessment.
248.19EFFECTIVE DATE.This section is effective for assessments dated after December
248.2031, 2017.

248.21    Sec. 7. Minnesota Statutes 2016, section 270C.34, subdivision 2, is amended to read:
248.22    Subd. 2. Procedure. (a) A request for abatement of penalty under subdivision 1 or
248.23section 289A.60, subdivision 4, or a request for abatement of interest or additional tax
248.24charge, must be filed with the commissioner within 60 days of the notice date of the notice
248.25was mailed to the taxpayer's last known address, stating that a penalty has been imposed or
248.26additional tax charge. For purposes of this section, "notice date" means the notice date
248.27designated by the commissioner on the order or other notice that a penalty or additional tax
248.28charge has been imposed.
248.29(b) If the commissioner issues an order denying a request for abatement of penalty,
248.30interest, or additional tax charge, the taxpayer may file an administrative appeal as provided
248.31in section 270C.35 or appeal to Tax Court as provided in section 271.06.
249.1(c) If the commissioner does not issue an order on the abatement request within 60 days
249.2from the date the request is received, the taxpayer may appeal to Tax Court as provided in
249.3section 271.06.
249.4EFFECTIVE DATE.This section is effective for orders and notices dated after
249.5December 31, 2017.

249.6    Sec. 8. Minnesota Statutes 2016, section 270C.35, subdivision 3, is amended to read:
249.7    Subd. 3. Notice date. For purposes of this section, the term "notice date" means the
249.8notice date of designated by the commissioner on the order adjusting the tax or order denying
249.9a request for abatement, or, in the case of a denied refund, the notice date of designated by
249.10the commissioner on the notice of denial.
249.11EFFECTIVE DATE.This section is effective for orders and notices dated after
249.12December 31, 2017.

249.13    Sec. 9. Minnesota Statutes 2016, section 270C.35, is amended by adding a subdivision to
249.14read:
249.15    Subd. 11. Dismissal of administrative appeal. If a taxpayer files an administrative
249.16appeal for an order of the commissioner and also files an appeal to the Tax Court for that
249.17same order of the commissioner, the administrative appeal is dismissed and the commissioner
249.18is no longer required to make a determination of appeal under subdivision 6.
249.19EFFECTIVE DATE.This section is effective for all administrative appeals filed after
249.20June 30, 2017.

249.21    Sec. 10. Minnesota Statutes 2016, section 270C.38, subdivision 1, is amended to read:
249.22    Subdivision 1. Sufficient notice. (a) If no method of notification of a written
249.23determination or action of the commissioner is otherwise specifically provided for by law,
249.24notice of the determination or action sent postage prepaid by United States mail to the
249.25taxpayer or other person affected by the determination or action at the taxpayer's or person's
249.26last known address, is sufficient. If the taxpayer or person being notified is deceased or is
249.27under a legal disability, or, in the case of a corporation being notified that has terminated
249.28its existence, notice to the last known address of the taxpayer, person, or corporation is
249.29sufficient, unless the department has been provided with a new address by a party authorized
249.30to receive notices from the commissioner.
250.1(b) If a taxpayer or other person agrees to accept notification by electronic means, notice
250.2of a determination or action of the commissioner sent by electronic mail to the taxpayer's
250.3or person's last known electronic mailing address as provided for in section 325L.08 is
250.4sufficient.
250.5(c) Notice of a determination or action of the commissioner is sufficient if it is sent on
250.6or before the notice date designated by the commissioner on the notice.
250.7EFFECTIVE DATE.This section is effective for notices dated after December 31,
250.82017.

250.9    Sec. 11. Minnesota Statutes 2016, section 270C.445, is amended by adding a subdivision
250.10to read:
250.11    Subd. 9. Enforcement; limitations. (a) Notwithstanding any other law, the imposition
250.12of a penalty or any other action against a tax preparer authorized by subdivision 6 with
250.13respect to a return may be taken by the commissioner within the period provided by section
250.14289A.38 to assess tax on that return.
250.15(b) Imposition of a penalty or other action against a tax preparer authorized by subdivision
250.166 other than with respect to a return must be taken by the commissioner within five years
250.17of the violation of statute.
250.18EFFECTIVE DATE.This section is effective for tax preparation services provided
250.19after the day following final enactment.

250.20    Sec. 12. Minnesota Statutes 2016, section 270C.446, subdivision 5, is amended to read:
250.21    Subd. 5. Removal from list. The commissioner shall remove the name of a tax preparer
250.22from the list of tax preparers published under this section:
250.23(1) when the commissioner determines that the name was included on the list in error;
250.24(2) within 90 days three years after the preparer has demonstrated to the commissioner
250.25that the preparer fully paid all fines or penalties imposed, served any suspension, satisfied
250.26any sentence imposed, successfully completed any probationary period imposed, and
250.27successfully completed any remedial actions required by the commissioner, the State Board
250.28of Accountancy, or the Lawyers Board of Professional Responsibility; or
250.29(3) when the commissioner has been notified that the tax preparer is deceased.
250.30EFFECTIVE DATE.This section is effective the day following final enactment.

251.1    Sec. 13. Minnesota Statutes 2016, section 270C.72, subdivision 4, is amended to read:
251.2    Subd. 4. Licensing authority; duties. All licensing authorities must require the applicant
251.3to provide the applicant's Social Security number or individual taxpayer identification
251.4number and Minnesota business identification number, as applicable, on all license
251.5applications. Upon request of the commissioner, the licensing authority must provide the
251.6commissioner with a list of all applicants, including the name, address, business name and
251.7address, and Social Security number, or individual taxpayer identification number and
251.8business identification number, as applicable, of each applicant. The commissioner may
251.9request from a licensing authority a list of the applicants no more than once each calendar
251.10year.
251.11EFFECTIVE DATE.This section is effective the day following final enactment.

251.12    Sec. 14. Minnesota Statutes 2016, section 271.06, subdivision 2, is amended to read:
251.13    Subd. 2. Time; notice; intervention. Except as otherwise provided by law, within 60
251.14days after the notice of the making and filing date of an order of the commissioner of revenue,
251.15the appellant, or the appellant's attorney, shall serve a notice of appeal upon the commissioner
251.16and file the original, with proof of such service, with the Tax Court administrator or with
251.17the court administrator of district court acting as court administrator of the Tax Court;
251.18provided, that the Tax Court, for cause shown, may by written order extend the time for
251.19appealing for an additional period not exceeding 30 days. For purposes of this section,
251.20"notice date" means the notice date designated by the commissioner on the order. The notice
251.21of appeal shall be in the form prescribed by the Tax Court. Within five days after receipt,
251.22the commissioner shall transmit a copy of the notice of appeal to the attorney general. The
251.23attorney general shall represent the commissioner, if requested, upon all such appeals except
251.24in cases where the attorney general has appealed in behalf of the state, or in other cases
251.25where the attorney general deems it against the interests of the state to represent the
251.26commissioner, in which event the attorney general may intervene or be substituted as an
251.27appellant in behalf of the state at any stage of the proceedings.
251.28Upon a final determination of any other matter over which the court is granted jurisdiction
251.29under section 271.01, subdivision 5, the taxpayer or the taxpayer's attorney shall file a
251.30petition or notice of appeal as provided by law with the court administrator of district court,
251.31acting in the capacity of court administrator of the Tax Court, with proof of service of the
251.32petition or notice of appeal as required by law and within the time required by law. As used
251.33in this subdivision, "final determination" includes a notice of assessment and equalization
252.1for the year in question received from the local assessor, an order of the local board of
252.2equalization, or an order of a county board of equalization.
252.3The Tax Court shall prescribe a filing system so that the notice of appeal or petition filed
252.4with the district court administrator acting as court administrator of the Tax Court is
252.5forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning
252.6property valuation for which the assessor, a local board of equalization, a county board of
252.7equalization or the commissioner of revenue has issued an order, the officer issuing the
252.8order shall be notified of the filing of the appeal. The notice of appeal or petition shall be
252.9in the form prescribed by the Tax Court.
252.10EFFECTIVE DATE.This section is effective for orders dated after December 31,
252.112017.

252.12    Sec. 15. Minnesota Statutes 2016, section 271.06, subdivision 7, is amended to read:
252.13    Subd. 7. Rules. Except as provided in section 278.05, subdivision 6, the Rules of
252.14Evidence and Civil Procedure for the district court of Minnesota shall govern the procedures
252.15in the Tax Court, where practicable. The Rules of Civil Procedure do not apply to alter the
252.1660-day period of time to file a notice of appeal provided in subdivision 2. The Tax Court
252.17may adopt rules under chapter 14.
252.18EFFECTIVE DATE.This section is effective for orders dated after December 31,
252.192017.

252.20    Sec. 16. Minnesota Statutes 2016, section 272.02, subdivision 10, is amended to read:
252.21    Subd. 10. Personal property used for pollution control. Personal property used
252.22primarily for the abatement and control of air, water, or land pollution is exempt to the
252.23extent that it is so used, and real property is exempt if it is used primarily for abatement and
252.24control of air, water, or land pollution as part of an agricultural operation, as a part of a
252.25centralized treatment and recovery facility operating under a permit issued by the Minnesota
252.26Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota Rules, parts
252.277001.0500 to 7001.0730, and 7045.0020 to 7045.1030, as a wastewater treatment facility
252.28and for the treatment, recovery, and stabilization of metals, oils, chemicals, water, sludges,
252.29or inorganic materials from hazardous industrial wastes, or as part of an electric generation
252.30system. For purposes of this subdivision, personal property includes ponderous machinery
252.31and equipment used in a business or production activity that at common law is considered
252.32real property.
253.1Any taxpayer requesting exemption of all or a portion of any real property or any
253.2equipment or device, or part thereof, operated primarily for the control or abatement of air,
253.3water, or land pollution shall file an application with the commissioner of revenue. The
253.4commissioner shall develop an electronic means to notify interested parties when electric
253.5power generation facilities have filed an application. The commissioner shall prescribe the
253.6content, format, and manner of the application pursuant to section 270C.30, except that a
253.7"law administered by the commissioner" includes the property tax laws, and if an application
253.8is made by electronic means, the taxpayer's signature is defined pursuant to section 270C.304,
253.9except that a "law administered by the commissioner" includes the property tax laws. The
253.10Minnesota Pollution Control Agency shall upon request of the commissioner furnish
253.11information and advice to the commissioner.
253.12The information and advice furnished by the Minnesota Pollution Control Agency must
253.13include statements as to whether the equipment, device, or real property meets a standard,
253.14rule, criteria, guideline, policy, or order of the Minnesota Pollution Control Agency, and
253.15whether the equipment, device, or real property is installed or operated in accordance with
253.16it. On determining that property qualifies for exemption, the commissioner shall issue an
253.17order exempting the property from taxation. The commissioner shall develop an electronic
253.18means to notify interested parties when the commissioner has issued an order exempting
253.19property from taxation under this subdivision. The equipment, device, or real property shall
253.20continue to be exempt from taxation as long as the order issued by the commissioner remains
253.21in effect.
253.22EFFECTIVE DATE.This section is effective the day following final enactment.

253.23    Sec. 17. Minnesota Statutes 2016, section 272.0211, subdivision 1, is amended to read:
253.24    Subdivision 1. Efficiency determination and certification. An owner or operator of a
253.25new or existing electric power generation facility, excluding wind energy conversion systems,
253.26may apply to the commissioner of revenue for a market value exclusion on the property as
253.27provided for in this section. This exclusion shall apply only to the market value of the
253.28equipment of the facility, and shall not apply to the structures and the land upon which the
253.29facility is located. The commissioner of revenue shall prescribe the forms content, format,
253.30manner, and procedures for this application pursuant to section 270C.30, except that a "law
253.31administered by the commissioner" includes the property tax laws. If an application is made
253.32by electronic means, the taxpayer's signature is defined pursuant to section 270C.304, except
253.33that a "law administered by the commissioner" includes the property tax laws. Upon receiving
253.34the application, the commissioner of revenue shall: (1) request the commissioner of commerce
254.1to make a determination of the efficiency of the applicant's electric power generation facility;
254.2and (2) shall develop an electronic means to notify interested parties when electric power
254.3generation facilities have filed an application. The commissioner of commerce shall calculate
254.4efficiency as the ratio of useful energy outputs to energy inputs, expressed as a percentage,
254.5based on the performance of the facility's equipment during normal full load operation. The
254.6commissioner must include in this formula the energy used in any on-site preparation of
254.7materials necessary to convert the materials into the fuel used to generate electricity, such
254.8as a process to gasify petroleum coke. The commissioner shall use the Higher Heating Value
254.9(HHV) for all substances in the commissioner's efficiency calculations, except for wood
254.10for fuel in a biomass-eligible project under section 216B.2424; for these instances, the
254.11commissioner shall adjust the heating value to allow for energy consumed for evaporation
254.12of the moisture in the wood. The applicant shall provide the commissioner of commerce
254.13with whatever information the commissioner deems necessary to make the determination.
254.14Within 30 days of the receipt of the necessary information, the commissioner of commerce
254.15shall certify the findings of the efficiency determination to the commissioner of revenue
254.16and to the applicant. The commissioner of commerce shall determine the efficiency of the
254.17facility and certify the findings of that determination to the commissioner of revenue every
254.18two years thereafter from the date of the original certification.
254.19EFFECTIVE DATE.This section is effective the day following final enactment.

254.20    Sec. 18. Minnesota Statutes 2016, section 272.025, subdivision 1, is amended to read:
254.21    Subdivision 1. Statement of exemption. (a) Except in the case of property owned by
254.22the state of Minnesota or any political subdivision thereof, and property exempt from taxation
254.23under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the times
254.24provided in subdivision 3, a taxpayer claiming an exemption from taxation on property
254.25described in section 272.02, subdivisions 2 to 33, must file a statement of exemption with
254.26the assessor of the assessment district in which the property is located.
254.27(b) A taxpayer claiming an exemption from taxation on property described in section
254.28272.02, subdivision 10 , must file a statement of exemption with the commissioner of revenue,
254.29on or before February 15 of each year for which the taxpayer claims an exemption.
254.30(c) In case of sickness, absence or other disability or for good cause, the assessor or the
254.31commissioner may extend the time for filing the statement of exemption for a period not to
254.32exceed 60 days.
255.1(d) The commissioner of revenue shall prescribe the form and contents content, format,
255.2and manner of the statement of exemption pursuant to section 270C.30, except that a "law
255.3administered by the commissioner" includes the property tax laws.
255.4(e) If a statement is made by electronic means, the taxpayer's signature is defined pursuant
255.5to section 270C.304, except that a "law administered by the commissioner" includes the
255.6property tax laws.
255.7EFFECTIVE DATE.This section is effective the day following final enactment.

255.8    Sec. 19. Minnesota Statutes 2016, section 272.029, subdivision 4, is amended to read:
255.9    Subd. 4. Reports. (a) An owner of a wind energy conversion system subject to tax under
255.10subdivision 3 shall file a report with the commissioner of revenue annually on or before
255.11February 1 January 15 detailing the amount of electricity in kilowatt-hours that was produced
255.12by the wind energy conversion system for the previous calendar year. The commissioner
255.13shall prescribe the form content, format, and manner of the report pursuant to section
255.14270C.30, except that a "law administered by the commissioner" includes the property tax
255.15laws. The report must contain the information required by the commissioner to determine
255.16the tax due to each county under this section for the current year. If an owner of a wind
255.17energy conversion system subject to taxation under this section fails to file the report by
255.18the due date, the commissioner of revenue shall determine the tax based upon the nameplate
255.19capacity of the system multiplied by a capacity factor of 60 percent.
255.20(b) If a report is made by electronic means, the taxpayer's signature is defined pursuant
255.21to section 270C.304, except that a "law administered by the commissioner" includes the
255.22property tax laws.
255.23(b) (c) On or before February 28, the commissioner of revenue shall notify the owner
255.24of the wind energy conversion systems of the tax due to each county for the current year
255.25and shall certify to the county auditor of each county in which the systems are located the
255.26tax due from each owner for the current year.
255.27EFFECTIVE DATE.This section is effective the day following final enactment, except
255.28that the amendment in paragraph (a) moving the date to file the report is effective for reports
255.29filed in 2018 and thereafter.

255.30    Sec. 20. Minnesota Statutes 2016, section 272.0295, subdivision 4, is amended to read:
255.31    Subd. 4. Reports. An owner of a solar energy generating system subject to tax under
255.32this section shall file a report with the commissioner of revenue annually on or before
256.1January 15 detailing the amount of electricity in megawatt-hours that was produced by the
256.2system in the previous calendar year. The commissioner shall prescribe the form content,
256.3format, and manner of the report pursuant to section 270C.30. The report must contain the
256.4information required by the commissioner to determine the tax due to each county under
256.5this section for the current year. If an owner of a solar energy generating system subject to
256.6taxation under this section fails to file the report by the due date, the commissioner of
256.7revenue shall determine the tax based upon the nameplate capacity of the system multiplied
256.8by a capacity factor of 30 percent.
256.9EFFECTIVE DATE.This section is effective the day following final enactment.

256.10    Sec. 21. Minnesota Statutes 2016, section 272.115, subdivision 2, is amended to read:
256.11    Subd. 2. Form; information required. The certificate of value shall require such facts
256.12and information as may be determined by the commissioner to be reasonably necessary in
256.13the administration of the state education aid formulas. The form commissioner shall prescribe
256.14the content, format, and manner of the certificate of value shall be prescribed by the
256.15Department of Revenue which shall provide an adequate supply of forms to each county
256.16auditor pursuant to section 270C.30, except that a "law administered by the commissioner"
256.17includes the property tax laws.
256.18EFFECTIVE DATE.This section is effective the day following final enactment.

256.19    Sec. 22. Minnesota Statutes 2016, section 273.124, subdivision 13, is amended to read:
256.20    Subd. 13. Homestead application. (a) A person who meets the homestead requirements
256.21under subdivision 1 must file a homestead application with the county assessor to initially
256.22obtain homestead classification.
256.23    (b) The format and contents of a uniform homestead application shall be prescribed by
256.24the commissioner of revenue. The commissioner shall prescribe the content, format, and
256.25manner of the homestead application required to be filed under this chapter pursuant to
256.26section 270C.30. The application must clearly inform the taxpayer that this application must
256.27be signed by all owners who occupy the property or by the qualifying relative and returned
256.28to the county assessor in order for the property to receive homestead treatment.
256.29    (c) Every property owner applying for homestead classification must furnish to the
256.30county assessor the Social Security number of each occupant who is listed as an owner of
256.31the property on the deed of record, the name and address of each owner who does not occupy
256.32the property, and the name and Social Security number of each owner's spouse who occupies
257.1the property. The application must be signed by each owner who occupies the property and
257.2by each owner's spouse who occupies the property, or, in the case of property that qualifies
257.3as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
257.4    If a property owner occupies a homestead, the property owner's spouse may not claim
257.5another property as a homestead unless the property owner and the property owner's spouse
257.6file with the assessor an affidavit or other proof required by the assessor stating that the
257.7property qualifies as a homestead under subdivision 1, paragraph (e).
257.8    Owners or spouses occupying residences owned by their spouses and previously occupied
257.9with the other spouse, either of whom fail to include the other spouse's name and Social
257.10Security number on the homestead application or provide the affidavits or other proof
257.11requested, will be deemed to have elected to receive only partial homestead treatment of
257.12their residence. The remainder of the residence will be classified as nonhomestead residential.
257.13When an owner or spouse's name and Social Security number appear on homestead
257.14applications for two separate residences and only one application is signed, the owner or
257.15spouse will be deemed to have elected to homestead the residence for which the application
257.16was signed.
257.17    (d) If residential real estate is occupied and used for purposes of a homestead by a relative
257.18of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for
257.19the property to receive homestead status, a homestead application must be filed with the
257.20assessor. The Social Security number of each relative and spouse of a relative occupying
257.21the property shall be required on the homestead application filed under this subdivision. If
257.22a different relative of the owner subsequently occupies the property, the owner of the property
257.23must notify the assessor within 30 days of the change in occupancy. The Social Security
257.24number of a relative or relative's spouse occupying the property is private data on individuals
257.25as defined by section 13.02, subdivision 12, but may be disclosed to the commissioner of
257.26revenue, or, for the purposes of proceeding under the Revenue Recapture Act to recover
257.27personal property taxes owing, to the county treasurer.
257.28    (e) The homestead application shall also notify the property owners that if the property
257.29is granted homestead status for any assessment year, that same property shall remain
257.30classified as homestead until the property is sold or transferred to another person, or the
257.31owners, the spouse of the owner, or the relatives no longer use the property as their
257.32homestead. Upon the sale or transfer of the homestead property, a certificate of value must
257.33be timely filed with the county auditor as provided under section 272.115. Failure to notify
257.34the assessor within 30 days that the property has been sold, transferred, or that the owner,
257.35the spouse of the owner, or the relative is no longer occupying the property as a homestead,
258.1shall result in the penalty provided under this subdivision and the property will lose its
258.2current homestead status.
258.3    (f) If a homestead application has not been filed with the county by December 15, the
258.4assessor shall classify the property as nonhomestead for the current assessment year for
258.5taxes payable in the following year, provided that the owner may be entitled to receive the
258.6homestead classification by proper application under section 375.192.
258.7EFFECTIVE DATE.This section is effective the day following final enactment.

258.8    Sec. 23. Minnesota Statutes 2016, section 273.371, is amended to read:
258.9273.371 REPORTS OF UTILITY COMPANIES.
258.10    Subdivision 1. Report required. Every electric light, power, gas, water, express, stage,
258.11and transportation company, and pipeline company doing business in Minnesota shall
258.12annually file with the commissioner on or before March 31 a report under oath setting forth
258.13the information prescribed by the commissioner to enable the commissioner to make
258.14valuations, recommended valuations, and equalization required under sections 273.33,
258.15273.35 , 273.36, 273.37, and 273.3711. The commissioner shall prescribe the content, format,
258.16and manner of the report pursuant to section 270C.30, except that a "law administered by
258.17the commissioner" includes the property tax laws. If all the required information is not
258.18available on March 31, the company or pipeline shall file the information that is available
258.19on or before March 31, and the balance of the information as soon as it becomes available.
258.20If a report is made by electronic means, the taxpayer's signature is defined pursuant to section
258.21270C.304, except that a "law administered by the commissioner" includes the property tax
258.22laws.
258.23    Subd. 2. Extension. The commissioner for good cause may extend the time for filing
258.24the report required by subdivision 1. The extension may must not exceed 15 days.
258.25    Subd. 3. Reports filed by the commissioner. If a company fails to file a report required
258.26by subdivision 1, the commissioner may, from information in the commissioner's possession
258.27or obtainable by the commissioner, make and file a report for the company or make the
258.28valuations, recommended valuations, and equalizations required under sections 273.33,
258.29273.35 to 273.37, and 273.3711.
258.30EFFECTIVE DATE.This section is effective the day following final enactment.

258.31    Sec. 24. Minnesota Statutes 2016, section 287.2205, is amended to read:
258.32287.2205 TAX-FORFEITED LAND.
259.1    Before a state deed for tax-forfeited land may be issued, the deed tax must be paid by
259.2the purchaser of tax-forfeited land whether the purchase is the result of a public auction or
259.3private sale or a repurchase of tax-forfeited land. State agencies and local units of government
259.4that acquire tax-forfeited land by purchase or any other means are subject to this section.
259.5The deed tax is $1.65 for a conveyance of tax-forfeited lands to a governmental subdivision
259.6for an authorized public use under section 282.01, subdivision 1a, for a school forest under
259.7section 282.01, subdivision 1a, or for redevelopment purposes under section 282.01,
259.8subdivision 1b .
259.9EFFECTIVE DATE.This section is effective the day following final enactment.

259.10    Sec. 25. Minnesota Statutes 2016, section 289A.08, is amended by adding a subdivision
259.11to read:
259.12    Subd. 17. Format. The commissioner shall prescribe the content, format, and manner
259.13of the returns and other documents pursuant to section 270C.30. This does not authorize
259.14the commissioner to require individual income taxpayers to file individual income tax returns
259.15electronically.
259.16EFFECTIVE DATE.This section is effective the day following final enactment.

259.17    Sec. 26. Minnesota Statutes 2016, section 289A.09, subdivision 1, is amended to read:
259.18    Subdivision 1. Returns. (a) An employer who is required to deduct and withhold tax
259.19under section 290.92, subdivision 2a or 3, and a person required to deduct and withhold tax
259.20under section 290.923, subdivision 2, must file a return with the commissioner for each
259.21quarterly period unless otherwise prescribed by the commissioner.
259.22(b) A person or corporation required to make deposits under section 290.9201, subdivision
259.238 , must file an entertainer withholding tax return with the commissioner.
259.24(c) A person required to withhold an amount under section 290.9705, subdivision 1,
259.25must file a return.
259.26(d) A partnership required to deduct and withhold tax under section 290.92, subdivision
259.274b , must file a return.
259.28(e) An S corporation required to deduct and withhold tax under section 290.92,
259.29subdivision 4c , must also file a return.
259.30(f) Returns must be filed in the form and manner, and contain the information prescribed
259.31by the commissioner. The commissioner shall prescribe the content, format, and manner
260.1of the returns pursuant to section 270C.30. Every return for taxes withheld must be signed
260.2by the employer, entertainment entity, contract payor, partnership, or S corporation, or a
260.3designee.
260.4EFFECTIVE DATE.This section is effective the day following final enactment.

260.5    Sec. 27. Minnesota Statutes 2016, section 289A.11, subdivision 1, is amended to read:
260.6    Subdivision 1. Return required. (a) Except as provided in section 289A.18, subdivision
260.74 , for the month in which taxes imposed by chapter 297A are payable, or for which a return
260.8is due, a return for the preceding reporting period must be filed with the commissioner in
260.9the form and manner the commissioner prescribes. The commissioner shall prescribe the
260.10content, format, and manner of the returns pursuant to section 270C.30. A person making
260.11sales at retail at two or more places of business may file a consolidated return subject to
260.12rules prescribed by the commissioner. In computing the dollar amount of items on the return,
260.13the amounts are rounded off to the nearest whole dollar, disregarding amounts less than 50
260.14cents and increasing amounts of 50 cents to 99 cents to the next highest dollar.
260.15(b) Notwithstanding this subdivision, a person who is not required to hold a sales tax
260.16permit under chapter 297A and who makes annual purchases, for use in a trade or business,
260.17of less than $18,500, or a person who is not required to hold a sales tax permit and who
260.18makes purchases for personal use, that are subject to the use tax imposed by section 297A.63,
260.19may file an annual use tax return on a form prescribed by the commissioner. The
260.20commissioner shall prescribe the content, format, and manner of the return pursuant to
260.21section 270C.30. If a person who qualifies for an annual use tax reporting period is required
260.22to obtain a sales tax permit or makes use tax purchases, for use in a trade or business, in
260.23excess of $18,500 during the calendar year, the reporting period must be considered ended
260.24at the end of the month in which the permit is applied for or the purchase in excess of
260.25$18,500 is made and a return must be filed for the preceding reporting period.
260.26(c) Notwithstanding paragraph paragraphs (a) and (b), a person prohibited by the person's
260.27religious beliefs from using electronics shall be allowed to file by mail, without any additional
260.28fees. The filer must notify the commissioner of revenue of the intent to file by mail on a
260.29form prescribed by the commissioner. A return filed under this paragraph must be postmarked
260.30no later than the day the return is due in order to be considered filed on a timely basis.
260.31EFFECTIVE DATE.This section is effective the day following final enactment.

261.1    Sec. 28. Minnesota Statutes 2016, section 289A.18, subdivision 1, is amended to read:
261.2    Subdivision 1. Individual income, fiduciary income, corporate franchise, and
261.3entertainment taxes; partnership and S corporation returns; information returns;
261.4mining company returns. The returns required to be made under sections 289A.08 and
261.5289A.12 must be filed at the following times:
261.6    (1) returns made on the basis of the calendar year must be filed on April 15 following
261.7the close of the calendar year, except that returns of corporations and partnerships must be
261.8filed on the due date for filing the federal income tax return;
261.9    (2) returns made on the basis of the fiscal year must be filed on the 15th day of the fourth
261.10month following the close of the fiscal year, except that returns of corporations and
261.11partnerships must be filed on the due date for filing the federal income tax return;
261.12    (3) returns for a fractional part of a year must be filed on the due date for filing the
261.13federal income tax return;
261.14    (4) in the case of a final return of a decedent for a fractional part of a year, the return
261.15must be filed on the 15th day of the fourth month following the close of the 12-month period
261.16that began with the first day of that fractional part of a year;
261.17    (5) in the case of the return of a cooperative association, returns must be filed on or
261.18before the 15th day of the ninth month following the close of the taxable year;
261.19    (6) if a corporation has been divested from a unitary group and files a return for a
261.20fractional part of a year in which it was a member of a unitary business that files a combined
261.21report under section 290.17, subdivision 4, the divested corporation's return must be filed
261.22on the 15th day of the third month following the close of the common accounting period
261.23that includes the fractional year;
261.24    (7) returns of entertainment entities must be filed on April 15 following the close of the
261.25calendar year;
261.26    (8) returns required to be filed under section 289A.08, subdivision 4, must be filed on
261.27the 15th day of the fifth month following the close of the taxable year;
261.28    (9) returns of mining companies must be filed on May 1 following the close of the
261.29calendar year; and
261.30    (10) returns required to be filed with the commissioner under section 289A.12,
261.31subdivision 2 , 4 to 10, or 16 must be filed within 30 days after being demanded by the
261.32commissioner.
262.1EFFECTIVE DATE.This section is effective the day following final enactment.

262.2    Sec. 29. Minnesota Statutes 2016, section 289A.37, subdivision 2, is amended to read:
262.3    Subd. 2. Erroneous refunds. An erroneous refund is considered an underpayment of
262.4tax on the date made. An assessment of a deficiency arising out of an erroneous refund may
262.5be made at any time within two years from the making of the refund. If part of the refund
262.6was induced by fraud or misrepresentation of a material fact, the assessment may be made
262.7at any time (a) Except as provided in paragraph (b), an erroneous refund occurs when the
262.8commissioner issues a payment to a person that exceeds the amount the person is entitled
262.9to receive under law. An erroneous refund is considered an underpayment of tax on the date
262.10issued.
262.11(b) To the extent that the amount paid does not exceed the amount claimed by the
262.12taxpayer, an erroneous refund does not include the following:
262.13(1) any amount of a refund or credit paid pursuant to a claim for refund filed by a
262.14taxpayer, including but not limited to refunds of claims made under section 290.06,
262.15subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068;
262.16290.0681; or 290.0692; or chapter 290A; or
262.17(2) any amount paid pursuant to a claim for refund of an overpayment of tax filed by a
262.18taxpayer.
262.19(c) The commissioner may make an assessment to recover an erroneous refund at any
262.20time within two years from the issuance of the erroneous refund. If all or part of the erroneous
262.21refund was induced by fraud or misrepresentation of a material fact, the assessment may
262.22be made at any time.
262.23(d) Assessments of amounts that are not erroneous refunds under paragraph (b) must be
262.24conducted under section 289A.38.
262.25EFFECTIVE DATE.This section is effective July 1, 2017.

262.26    Sec. 30. Minnesota Statutes 2016, section 289A.50, subdivision 7, is amended to read:
262.27    Subd. 7. Remedies. (a) If the taxpayer is notified by the commissioner that the refund
262.28claim is denied in whole or in part, the taxpayer may:
262.29(1) file an administrative appeal as provided in section 270C.35, or an appeal with the
262.30Tax Court, within 60 days after issuance the notice date of the commissioner's notice of
262.31denial; or
263.1(2) file an action in the district court to recover the refund.
263.2(b) An action in the district court on a denied claim for refund must be brought within
263.318 months of the notice date of the denial of the claim by the commissioner. For the purposes
263.4of this section, "notice date" has the meaning given in section 270C.35, subdivision 3.
263.5(c) No action in the district court or the Tax Court shall be brought within six months
263.6of the filing of the refund claim unless the commissioner denies the claim within that period.
263.7(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial
263.8of the claim, the taxpayer may bring an action in the district court or the Tax Court at any
263.9time after the expiration of six months from the time the claim was filed.
263.10(e) The commissioner and the taxpayer may agree to extend the period for bringing an
263.11action in the district court.
263.12(f) An action for refund of tax by the taxpayer must be brought in the district court of
263.13the district in which lies the county of the taxpayer's residence or principal place of business.
263.14In the case of an estate or trust, the action must be brought at the principal place of its
263.15administration. Any action may be brought in the district court for Ramsey County.
263.16EFFECTIVE DATE.This section is effective for claims for refund denied after
263.17December 31, 2017.

263.18    Sec. 31. [290B.11] FORMS.
263.19The commissioner shall prescribe the content, format, and manner of all forms and other
263.20documents required to be filed under this chapter pursuant to section 270C.30.
263.21EFFECTIVE DATE.This section is effective the day following final enactment.

263.22    Sec. 32. [293.15] FORMS.
263.23The commissioner shall prescribe the content, format, and manner of all forms and other
263.24documents required to be filed under this chapter pursuant to section 270C.30.
263.25EFFECTIVE DATE.This section is effective the day following final enactment.

263.26    Sec. 33. Minnesota Statutes 2016, section 295.55, subdivision 6, is amended to read:
263.27    Subd. 6. Form of returns. The estimated payments and annual return must contain the
263.28information and be in the form prescribed by the commissioner The commissioner shall
263.29prescribe the content, format, and manner of the estimated payment forms and annual return
263.30pursuant to section 270C.30.
264.1EFFECTIVE DATE.This section is effective the day following final enactment.

264.2    Sec. 34. Minnesota Statutes 2016, section 296A.02, is amended by adding a subdivision
264.3to read:
264.4    Subd. 5. Forms. The commissioner shall prescribe the content, format, and manner of
264.5all forms and other documents required to be filed under this chapter pursuant to section
264.6270C.30.
264.7EFFECTIVE DATE.This section is effective the day following final enactment.

264.8    Sec. 35. Minnesota Statutes 2016, section 296A.22, subdivision 9, is amended to read:
264.9    Subd. 9. Abatement of penalty. (a) The commissioner may by written order abate any
264.10penalty imposed under this section, if in the commissioner's opinion there is reasonable
264.11cause to do so.
264.12(b) A request for abatement of penalty must be filed with the commissioner within 60
264.13days of the notice date of the notice stating that a penalty has been imposed was mailed to
264.14the taxpayer's last known address. For purposes of this section, "notice date" means the
264.15notice date designated by the commissioner on the order or other notice that a penalty has
264.16been imposed.
264.17(c) If the commissioner issues an order denying a request for abatement of penalty, the
264.18taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to Tax
264.19Court as provided in section 271.06. If the commissioner does not issue an order on the
264.20abatement request within 60 days from the date the request is received, the taxpayer may
264.21appeal to Tax Court as provided in section 271.06.
264.22EFFECTIVE DATE.This section is effective for orders and notices dated after
264.23December 31, 2017.

264.24    Sec. 36. Minnesota Statutes 2016, section 296A.26, is amended to read:
264.25296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT.
264.26In lieu of an administrative appeal under section 270C.35, any person aggrieved by an
264.27order of the commissioner fixing a tax, penalty, or interest under this chapter may, within
264.2860 days from the notice date of the notice of the order, appeal to the Tax Court in the manner
264.29provided under section 271.06. For purposes of this section, "notice date" means the notice
264.30date designated by the commissioner on the order fixing a tax, penalty, or interest.
265.1EFFECTIVE DATE.This section is effective for orders dated after December 31,
265.22017.

265.3    Sec. 37. Minnesota Statutes 2016, section 297D.02, is amended to read:
265.4297D.02 ADMINISTRATION.
265.5The commissioner of revenue shall administer this chapter. The commissioner shall
265.6prescribe the content, format, and manner of all forms and other documents required to be
265.7filed under this chapter pursuant to section 270C.30. Payments required by this chapter
265.8must be made to the commissioner on the form provided by the commissioner. Tax obligors
265.9are not required to give their name, address, Social Security number, or other identifying
265.10information on the form. The commissioner shall collect all taxes under this chapter.
265.11EFFECTIVE DATE.This section is effective the day following final enactment.

265.12    Sec. 38. Minnesota Statutes 2016, section 297E.02, subdivision 3, is amended to read:
265.13    Subd. 3. Collection; disposition. (a) Taxes imposed by this section are due and payable
265.14to the commissioner when the gambling tax return is required to be filed. Distributors must
265.15file their monthly sales figures with the commissioner on a form prescribed by the
265.16commissioner. Returns covering the taxes imposed under this section must be filed with
265.17the commissioner on or before the 20th day of the month following the close of the previous
265.18calendar month. The commissioner may require that the returns be filed via magnetic media
265.19or electronic data transfer. The commissioner shall prescribe the content, format, and manner
265.20of returns or other documents pursuant to section 270C.30. The proceeds, along with the
265.21revenue received from all license fees and other fees under sections 349.11 to 349.191,
265.22349.211 , and 349.213, must be paid to the commissioner of management and budget for
265.23deposit in the general fund.
265.24(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by the
265.25distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards by
265.26the organization is exempt from taxes imposed by chapter 297A and is exempt from all
265.27local taxes and license fees except a fee authorized under section 349.16, subdivision 8.
265.28(c) One-half of one percent of the revenue deposited in the general fund under paragraph
265.29(a), is appropriated to the commissioner of human services for the compulsive gambling
265.30treatment program established under section 245.98. One-half of one percent of the revenue
265.31deposited in the general fund under paragraph (a), is appropriated to the commissioner of
265.32human services for a grant to the state affiliate recognized by the National Council on
266.1Problem Gambling to increase public awareness of problem gambling, education and training
266.2for individuals and organizations providing effective treatment services to problem gamblers
266.3and their families, and research relating to problem gambling. Money appropriated by this
266.4paragraph must supplement and must not replace existing state funding for these programs.
266.5EFFECTIVE DATE.This section is effective the day following final enactment.

266.6    Sec. 39. Minnesota Statutes 2016, section 297E.04, subdivision 1, is amended to read:
266.7    Subdivision 1. Reports of sales. A manufacturer who sells gambling product for use or
266.8resale in this state, or for receipt by a person or entity in this state, shall file with the
266.9commissioner, on a form prescribed by the commissioner, a report of gambling product
266.10sold to any person in the state, including the established governing body of an Indian tribe
266.11recognized by the United States Department of the Interior. The report must be filed monthly
266.12on or before the 20th day of the month succeeding the month in which the sale was made.
266.13The commissioner may require that the report be submitted via magnetic media or electronic
266.14data transfer. The commissioner shall prescribe the content, format, and manner of returns
266.15or other documents pursuant to section 270C.30. The commissioner may inspect the premises,
266.16books, records, and inventory of a manufacturer without notice during the normal business
266.17hours of the manufacturer. A person violating this section is guilty of a misdemeanor.
266.18EFFECTIVE DATE.This section is effective the day following final enactment.

266.19    Sec. 40. Minnesota Statutes 2016, section 297E.05, subdivision 4, is amended to read:
266.20    Subd. 4. Reports. A distributor shall report monthly to the commissioner, on a form the
266.21commissioner prescribes, its sales of each type of gambling product. This report must be
266.22filed monthly on or before the 20th day of the month succeeding the month in which the
266.23sale was made. The commissioner may require that a distributor submit the monthly report
266.24and invoices required in this subdivision via magnetic media or electronic data transfer.
266.25The commissioner shall prescribe the content, format, and manner of returns or other
266.26documents pursuant to section 270C.30.
266.27EFFECTIVE DATE.This section is effective the day following final enactment.

266.28    Sec. 41. Minnesota Statutes 2016, section 297E.06, subdivision 1, is amended to read:
266.29    Subdivision 1. Reports. An organization must file with the commissioner, on a form
266.30prescribed by the commissioner, a report showing all gambling activity conducted by that
266.31organization for each month. Gambling activity includes all gross receipts, prizes, all
266.32gambling taxes owed or paid to the commissioner, all gambling expenses, and all lawful
267.1purpose and board-approved expenditures. The report must be filed with the commissioner
267.2on or before the 20th day of the month following the month in which the gambling activity
267.3takes place. The commissioner may require that the reports be filed via magnetic media or
267.4electronic data transfer. The commissioner shall prescribe the content, format, and manner
267.5of returns or other documents pursuant to section 270C.30.
267.6EFFECTIVE DATE.This section is effective the day following final enactment.

267.7    Sec. 42. Minnesota Statutes 2016, section 297F.09, subdivision 1, is amended to read:
267.8    Subdivision 1. Monthly return; cigarette distributor. On or before the 18th day of
267.9each calendar month, a distributor with a place of business in this state shall file a return
267.10with the commissioner showing the quantity of cigarettes manufactured or brought in from
267.11outside the state or purchased during the preceding calendar month and the quantity of
267.12cigarettes sold or otherwise disposed of in this state and outside this state during that month.
267.13A licensed distributor outside this state shall in like manner file a return showing the quantity
267.14of cigarettes shipped or transported into this state during the preceding calendar month.
267.15Returns must be made in the form and manner prescribed by The commissioner shall
267.16prescribe the content, format, and manner of returns pursuant to section 270C.30, and the
267.17returns must contain any other information required by the commissioner. The return must
267.18be accompanied by a remittance for the full unpaid tax liability shown by it. For distributors
267.19subject to the accelerated tax payment requirements in subdivision 10, the return for the
267.20May liability is due two business days before June 30th of the year and the return for the
267.21June liability is due on or before August 18th of the year.
267.22EFFECTIVE DATE.This section is effective the day following final enactment.

267.23    Sec. 43. Minnesota Statutes 2016, section 297F.23, is amended to read:
267.24297F.23 JUDICIAL REVIEW.
267.25In lieu of an administrative appeal under section 270C.35, a person aggrieved by an
267.26order of the commissioner fixing a tax, penalty, or interest under this chapter may, within
267.2760 days from the notice date of the notice of the order, appeal to the Tax Court in the manner
267.28provided under section 271.06. For purposes of this section, "notice date" means the notice
267.29date designated by the commissioner on the order fixing a tax, penalty, or interest.
267.30EFFECTIVE DATE.This section is effective for orders dated after December 31,
267.312017.

268.1    Sec. 44. Minnesota Statutes 2016, section 297G.09, subdivision 1, is amended to read:
268.2    Subdivision 1. Monthly returns; manufacturers, wholesalers, brewers, or importers.
268.3On or before the 18th day of each calendar month following the month in which a licensed
268.4manufacturer or wholesaler first sells wine and distilled spirits within the state, or a brewer
268.5or importer first sells or imports fermented malt beverages, or a wholesaler knowingly
268.6acquires title to or possession of untaxed fermented malt beverages, the licensed
268.7manufacturer, wholesaler, brewer, or importer liable for the excise tax must file a return
268.8with the commissioner, and in addition must keep records and render reports as required
268.9by the commissioner. Returns must be made in a form and manner prescribed by the
268.10commissioner, and The commissioner shall prescribe the content, format, and manner of
268.11returns pursuant to section 270C.30. The returns must contain any other information required
268.12by the commissioner. Returns must be accompanied by a remittance for the full unpaid tax
268.13liability. Returns must be filed regardless of whether a tax is due.
268.14EFFECTIVE DATE.This section is effective the day following final enactment.

268.15    Sec. 45. Minnesota Statutes 2016, section 297G.22, is amended to read:
268.16297G.22 JUDICIAL REVIEW.
268.17In lieu of an administrative appeal under this chapter, a person aggrieved by an order of
268.18the commissioner fixing a tax, penalty, or interest under this chapter may, within 60 days
268.19from the date of the notice date of the order, appeal to the Tax Court in the manner provided
268.20under section 271.06. For purposes of this section, "notice date" means the notice date
268.21designated by the commissioner on the order fixing a tax, penalty, or interest.
268.22EFFECTIVE DATE.This section is effective for orders dated after December 31,
268.232017.

268.24    Sec. 46. Minnesota Statutes 2016, section 297I.30, is amended by adding a subdivision
268.25to read:
268.26    Subd. 11. Format. The commissioner shall prescribe the content, format, and manner
268.27of returns or other documents pursuant to section 270C.30.
268.28EFFECTIVE DATE.This section is effective the day following final enactment.

268.29    Sec. 47. Minnesota Statutes 2016, section 297I.60, subdivision 2, is amended to read:
268.30    Subd. 2. Remedies. (a) If the taxpayer is notified that the refund claim is denied in whole
268.31or in part, the taxpayer may contest the denial by:
269.1(1) filing an administrative appeal with the commissioner under section 270C.35;
269.2(2) filing an appeal in Tax Court within 60 days of the notice date of the notice of denial;
269.3or
269.4(3) filing an action in the district court to recover the refund.
269.5(b) An action in the district court must be brought within 18 months following of the
269.6notice date of the notice of denial. For purposes of this section, "notice date" has the meaning
269.7given in section 270C.35, subdivision 3. An action for refund of tax or surcharge must be
269.8brought in the district court of the district in which lies the taxpayer's principal place of
269.9business or in the District Court for Ramsey County. If a taxpayer files a claim for refund
269.10and the commissioner has not issued a denial of the claim, the taxpayer may bring an action
269.11in the district court or the Tax Court at any time after the expiration of six months from the
269.12time the claim was filed.
269.13EFFECTIVE DATE.This section is effective for claims for refund denied after
269.14December 31, 2017.

269.15    Sec. 48. Minnesota Statutes 2016, section 469.319, subdivision 5, is amended to read:
269.16    Subd. 5. Waiver authority. (a) The commissioner may waive all or part of a repayment
269.17required under subdivision 1, if the commissioner, in consultation with the commissioner
269.18of employment and economic development and appropriate officials from the local
269.19government units in which the qualified business is located, determines that requiring
269.20repayment of the tax is not in the best interest of the state or the local government units and
269.21the business ceased operating as a result of circumstances beyond its control including, but
269.22not limited to:
269.23    (1) a natural disaster;
269.24    (2) unforeseen industry trends; or
269.25    (3) loss of a major supplier or customer.
269.26    (b)(1) The commissioner shall waive repayment required under subdivision 1a if the
269.27commissioner has waived repayment by the operating business under subdivision 1, unless
269.28the person that received benefits without having to operate a business in the zone was a
269.29contributing factor in the qualified business becoming subject to repayment under subdivision
269.301;
269.31    (2) the commissioner shall waive the repayment required under subdivision 1a, even if
269.32the repayment has not been waived for the operating business if:
270.1    (i) the person that received benefits without having to operate a business in the zone and
270.2the business that operated in the zone are not related parties as defined in section 267(b) of
270.3the Internal Revenue Code of 1986, as amended through December 31, 2007; and
270.4    (ii) actions of the person were not a contributing factor in the qualified business becoming
270.5subject to repayment under subdivision 1.
270.6(c) Requests for waiver must be made no later than 60 days after the earlier of the notice
270.7date of an order issued under subdivision 4, paragraph (d), or the date of a tax statement
270.8issued under subdivision 4, paragraph (c). For purposes of this section, "notice date" means
270.9the notice date designated by the commissioner on the order.
270.10EFFECTIVE DATE.This section is effective for orders of the commissioner of revenue
270.11dated after December 31, 2017.

270.12    Sec. 49. Laws 2016, chapter 187, section 5, the effective date, is amended to read:
270.13EFFECTIVE DATE.This section is effective for orders and notices dated after
270.14September 30, 2015 December 31, 2017.
270.15EFFECTIVE DATE.This section is effective retroactively from September 30, 2015.

270.16ARTICLE 14

270.17DEPARTMENT OF REVENUE 2015-2016 SUSTAINABLE FOREST INCENTIVE
270.18ACT PROVISIONS

270.19    Section 1. Minnesota Statutes 2016, section 290C.03, is amended to read:
270.20290C.03 ELIGIBILITY REQUIREMENTS.
270.21(a) Land may be enrolled in the sustainable forest incentive program under this chapter
270.22if all of the following conditions are met:
270.23(1) the land consists of at least 20 contiguous acres and at least 50 percent of the land
270.24must meet the definition of forest land in section 88.01, subdivision 7, during the enrollment;
270.25(2) a forest management plan for the land must be (i) prepared by an approved plan
270.26writer and implemented during the period in which the land is enrolled, and (ii) registered
270.27with the Department of Natural Resources;
270.28(3) timber harvesting and forest management guidelines must be used in conjunction
270.29with any timber harvesting or forest management activities conducted on the land during
270.30the period in which the land is enrolled;
270.31(4) the land must be enrolled for a minimum of eight years;
271.1(5) there are no delinquent property taxes on the land; and
271.2(6) claimants enrolling more than 1,920 acres in the sustainable forest incentive program
271.3must allow year-round, nonmotorized access to fish and wildlife resources and motorized
271.4access on established and maintained roads and trails, unless the road or trail is temporarily
271.5closed for safety, natural resource, or road damage reasons on enrolled land except within
271.6one-fourth mile of a permanent dwelling or during periods of high fire hazard as determined
271.7by the commissioner of natural resources; and
271.8(7) the land is not classified as 2c managed forest land.
271.9(b) Claimants required to allow access under paragraph (a), clause (6), do not by that
271.10action:
271.11(1) extend any assurance that the land is safe for any purpose;
271.12(2) confer upon the person the legal status of an invitee or licensee to whom a duty of
271.13care is owed; or
271.14(3) assume responsibility for or incur liability for any injury to the person or property
271.15caused by an act or omission of the person.
271.16(c) A minimum of three acres must be excluded from enrolled land when the land is
271.17improved with a structure that is not a minor, ancillary, or nonresidential structure. If land
271.18does not meet the definition of forest land in section 290C.02, subdivision 6, because the
271.19land is (1) enrolled in the reinvest in Minnesota program, (2) enrolled in a state or federal
271.20conservation reserve or easement program under sections 103F.501 to 103F.531, (3) subject
271.21to the Minnesota agricultural property tax under section 273.111, or (4) subject to agricultural
271.22land preservation controls or restrictions as defined in section 40A.02 or the Metropolitan
271.23Agricultural Preserves Act under chapter 473H, the entire parcel that contains the land is
271.24not eligible to be enrolled in the program.
271.25EFFECTIVE DATE.The amendment to paragraph (a), clause (2), is effective for
271.26certifications filed after July 1, 2018. The amendment adding paragraph (a), clause (7), is
271.27effective for certifications and applications due in 2017 and thereafter. The amendment
271.28adding paragraph (c) is effective the day following final enactment.

271.29    Sec. 2. [290C.051] VERIFICATION OF FOREST MANAGEMENT PLAN.
271.30On request of the commissioner, the commissioner of natural resources must annually
271.31provide verification that the claimant has a current forest management plan on file with the
271.32Department of Natural Resources.
272.1EFFECTIVE DATE.This section is effective for certifications filed after July 1, 2018.

272.2    Sec. 3. REPEALER.
272.3Minnesota Statutes 2016, sections 290C.02, subdivisions 5 and 9; and 290C.06, are
272.4repealed.
272.5EFFECTIVE DATE.This section is effective the day following final enactment.

272.6ARTICLE 15

272.7DEPARTMENT OF REVENUE 2015-2016 POLICY AND TECHNICAL
272.8PROVISIONS; SPECIAL TAXES AND SALES AND USE TAXES

272.9    Section 1. Minnesota Statutes 2016, section 69.021, subdivision 5, is amended to read:
272.10    Subd. 5. Calculation of state aid. (a) The amount of fire state aid available for
272.11apportionment, before the addition of the minimum fire state aid allocation amount under
272.12subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state upon
272.13the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the
272.14commissioner by insurers on the Minnesota Firetown Premium Report. This amount must
272.15be reduced by the amount required to pay the state auditor's costs and expenses of the audits
272.16or exams of the firefighters relief associations.
272.17The total amount for apportionment in respect to fire state aid must not be less than two
272.18percent of the premiums reported to the commissioner by insurers on the Minnesota Firetown
272.19Premium Report after subtracting the following amounts:
272.20(1) the amount required to pay the state auditor's costs and expenses of the audits or
272.21exams of the firefighters relief associations; and
272.22(2) one percent of the premiums reported by town and farmers' township mutual insurance
272.23companies and mutual property and casualty companies with total assets of $5,000,000 or
272.24less.
272.25(b) The total amount for apportionment as police state aid is equal to 104 percent of the
272.26amount of premium taxes paid to the state on the premiums reported to the commissioner
272.27by insurers on the Minnesota Aid to Police Premium Report. The total amount for
272.28apportionment in respect to the police state aid program must not be less than two percent
272.29of the amount of premiums reported to the commissioner by insurers on the Minnesota Aid
272.30to Police Premium Report.
273.1(c) The commissioner shall calculate the percentage of increase or decrease reflected in
273.2the apportionment over or under the previous year's available state aid using the same
273.3premiums as a basis for comparison.
273.4(d) In addition to the amount for apportionment of police state aid under paragraph (b),
273.5each year $100,000 must be apportioned for police state aid. An amount sufficient to pay
273.6this increase is annually appropriated from the general fund.
273.7EFFECTIVE DATE.This section is effective the day following final enactment.

273.8    Sec. 2. Minnesota Statutes 2016, section 289A.38, subdivision 6, is amended to read:
273.9    Subd. 6. Omission in excess of 25 percent. Additional taxes may be assessed within
273.106-1/2 years after the due date of the return or the date the return was filed, whichever is
273.11later, if:
273.12(1) the taxpayer omits from gross income an amount properly includable in it that is in
273.13excess of 25 percent of the amount of gross income stated in the return;
273.14(2) the taxpayer omits from a sales, use, or withholding tax return, or a return for a tax
273.15imposed under section 295.52, an amount of taxes in excess of 25 percent of the taxes
273.16reported in the return; or
273.17(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the gross
273.18estate reported in the return.
273.19EFFECTIVE DATE.This section is effective the day following final enactment.

273.20    Sec. 3. Minnesota Statutes 2016, section 290.0922, subdivision 2, is amended to read:
273.21    Subd. 2. Exemptions. The following entities are exempt from the tax imposed by this
273.22section:
273.23(1) corporations exempt from tax under section 290.05;
273.24(2) real estate investment trusts;
273.25(3) regulated investment companies or a fund thereof; and
273.26(4) entities having a valid election in effect under section 860D(b) of the Internal Revenue
273.27Code;
273.28(5) town and farmers' township mutual insurance companies;
274.1(6) cooperatives organized under chapter 308A or 308B that provide housing exclusively
274.2to persons age 55 and over and are classified as homesteads under section 273.124,
274.3subdivision 3 ; and
274.4(7) a qualified business as defined under section 469.310, subdivision 11, if for the
274.5taxable year all of its property is located in a job opportunity building zone designated under
274.6section 469.314 and all of its payroll is a job opportunity building zone payroll under section
274.7469.310 .
274.8Entities not specifically exempted by this subdivision are subject to tax under this section,
274.9notwithstanding section 290.05.
274.10EFFECTIVE DATE.This section is effective the day following final enactment.

274.11    Sec. 4. Minnesota Statutes 2016, section 295.54, subdivision 2, is amended to read:
274.12    Subd. 2. Pharmacy refund. A pharmacy may claim an annual refund against the total
274.13amount of tax, if any, the pharmacy owes during that calendar year under section 295.52,
274.14subdivision 4. The refund shall equal the amount paid by the pharmacy to a wholesale drug
274.15distributor subject to tax under section 295.52, subdivision 3, for legend drugs delivered by
274.16the pharmacy outside of Minnesota, multiplied by the tax percentage specified in section
274.17295.52 , subdivision 3. If the amount of the refund exceeds the tax liability of the pharmacy
274.18under section 295.52, subdivision 4, the commissioner shall provide the pharmacy with a
274.19refund equal to the excess amount. Each qualifying pharmacy must apply for the refund on
274.20the annual return as provided under section 295.55, subdivision 5 prescribed by the
274.21commissioner, on or before March 15 of the year following the calendar year the legend
274.22drugs were delivered outside Minnesota. The refund must be claimed within 18 months
274.23from the date the drugs were delivered outside of Minnesota shall not be allowed if the
274.24initial claim for refund is filed more than one year after the original due date of the return.
274.25Interest on refunds paid under this subdivision will begin to accrue 60 days after the date a
274.26claim for refund is filed. For purposes of this subdivision, the date a claim is filed is the due
274.27date of the return if a return is due or the date of the actual claim for refund, whichever is
274.28later.
274.29EFFECTIVE DATE.This section is effective for qualifying legend drugs delivered
274.30outside Minnesota after December 31, 2017.

275.1    Sec. 5. Minnesota Statutes 2016, section 296A.01, is amended by adding a subdivision to
275.2read:
275.3    Subd. 9a. Bulk storage or bulk storage facility. "Bulk storage" or "bulk storage facility"
275.4means a single property, or contiguous or adjacent properties used for a common purpose
275.5and owned or operated by the same person, on or in which are located one or more stationary
275.6tanks that are used singularly or in combination for the storage or containment of more than
275.71,100 gallons of petroleum.
275.8EFFECTIVE DATE.This section is effective the day following final enactment.

275.9    Sec. 6. Minnesota Statutes 2016, section 296A.01, subdivision 33, is amended to read:
275.10    Subd. 33. Motor fuel. "Motor fuel" means a liquid or gaseous form of fuel, regardless
275.11of its composition or properties, used to propel a motor vehicle.
275.12EFFECTIVE DATE.This section is effective the day following final enactment.

275.13    Sec. 7. Minnesota Statutes 2016, section 296A.01, subdivision 42, is amended to read:
275.14    Subd. 42. Petroleum products. "Petroleum products" means all of the products defined
275.15in subdivisions 2, 7, 8, 8a, 8b, 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35.
275.16EFFECTIVE DATE.This section is effective the day following final enactment.

275.17    Sec. 8. Minnesota Statutes 2016, section 296A.07, subdivision 1, is amended to read:
275.18    Subdivision 1. Tax imposed. There is imposed an excise tax on gasoline, gasoline
275.19blended with ethanol, and agricultural alcohol gasoline used in producing and generating
275.20power for propelling motor vehicles used on the public highways of this state. The tax is
275.21imposed on the first licensed distributor who received the product in Minnesota. For purposes
275.22of this section, gasoline is defined in section 296A.01, subdivisions 8b, 10, 18, 20, 23, 24,
275.2325, 32, and 34 . The tax is payable at the time and in the form and manner prescribed by the
275.24commissioner. The tax is payable at the rates specified in subdivision 3, subject to the
275.25exceptions and reductions specified in section 296A.17.
275.26EFFECTIVE DATE.This section is effective the day following final enactment.

275.27    Sec. 9. Minnesota Statutes 2016, section 297A.82, subdivision 4, is amended to read:
275.28    Subd. 4. Exemptions. (a) The following transactions are exempt from the tax imposed
275.29in this chapter to the extent provided.
276.1(b) The purchase or use of aircraft previously registered in Minnesota by a corporation
276.2or partnership is exempt if the transfer constitutes a transfer within the meaning of section
276.3351 or 721 of the Internal Revenue Code.
276.4(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer of
276.5an aircraft for which a commercial use permit has been issued pursuant to section 360.654
276.6is exempt, if the aircraft is resold while the permit is in effect.
276.7(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by airline
276.8companies, as defined in section 270.071, subdivision 4, is exempt. For purposes of this
276.9subdivision, "air flight equipment" includes airplanes and parts necessary for the repair and
276.10maintenance of such air flight equipment, and flight simulators, but does not include airplanes
276.11aircraft with a gross maximum takeoff weight of less than 30,000 pounds that are used on
276.12intermittent or irregularly timed flights.
276.13(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined in
276.14section 360.511 and approved by the Federal Aviation Administration, and which the seller
276.15delivers to a purchaser outside Minnesota or which, without intermediate use, is shipped or
276.16transported outside Minnesota by the purchaser are exempt, but only if the purchaser is not
276.17a resident of Minnesota and provided that the aircraft is not thereafter returned to a point
276.18within Minnesota, except in the course of interstate commerce or isolated and occasional
276.19use, and will be registered in another state or country upon its removal from Minnesota.
276.20This exemption applies even if the purchaser takes possession of the aircraft in Minnesota
276.21and uses the aircraft in the state exclusively for training purposes for a period not to exceed
276.22ten days prior to removing the aircraft from this state.
276.23(f) The sale or purchase of the following items that relate to aircraft operated under
276.24Federal Aviation Regulations, Parts 91 and 135, and associated installation charges:
276.25equipment and parts necessary for repair and maintenance of aircraft; and equipment and
276.26parts to upgrade and improve aircraft.
276.27EFFECTIVE DATE.This section is effective for sales and purchases made after
276.28December 31, 2017.

276.29    Sec. 10. Minnesota Statutes 2016, section 297A.82, subdivision 4a, is amended to read:
276.30    Subd. 4a. Deposit in state airports fund. Tax revenue, including interest and penalties,
276.31collected from the sale or purchase of an aircraft taxable under this chapter must be deposited
276.32in the state airports fund established in section 360.017. For purposes of this subdivision,
276.33"revenue" does not include the revenue, including interest and penalties, generated by the
277.1sales tax imposed under section 297A.62, subdivision 1a, which must be deposited as
277.2provided under article XI, section 15, of the Minnesota Constitution .
277.3EFFECTIVE DATE.This section is effective the day following final enactment.

277.4    Sec. 11. Minnesota Statutes 2016, section 297E.02, subdivision 7, is amended to read:
277.5    Subd. 7. Untaxed gambling product. (a) In addition to penalties or criminal sanctions
277.6imposed by this chapter, a person, organization, or business entity possessing or selling a
277.7pull-tab, electronic pull-tab game, raffle board, or tipboard upon which the tax imposed by
277.8this chapter has not been paid is liable for a tax of six percent of the ideal gross of each
277.9pull-tab, electronic pull-tab game, raffle board, or tipboard. The tax on a partial deal must
277.10be assessed as if it were a full deal.
277.11(b) In addition to penalties and criminal sanctions imposed by this chapter, a person (1)
277.12not licensed by the board who conducts bingo, linked bingo, electronic linked bingo, raffles,
277.13or paddlewheel games, or (2) who conducts gambling prohibited under sections 609.75 to
277.14609.763, other than activities subject to tax under section 297E.03, is liable for a tax of six
277.15percent of the gross receipts from that activity.
277.16(c) The tax must may be assessed by the commissioner. An assessment must be considered
277.17a jeopardy assessment or jeopardy collection as provided in section 270C.36. The
277.18commissioner shall assess the tax based on personal knowledge or information available to
277.19the commissioner. The commissioner shall mail to the taxpayer at the taxpayer's last known
277.20address, or serve in person, a written notice of the amount of tax, demand its immediate
277.21payment, and, if payment is not immediately made, collect the tax by any method described
277.22in chapter 270C, except that the commissioner need not await the expiration of the times
277.23specified in chapter 270C. The tax assessed by the commissioner is presumed to be valid
277.24and correctly determined and assessed. The burden is upon the taxpayer to show its
277.25incorrectness or invalidity. The tax imposed under this subdivision does not apply to gambling
277.26that is exempt from taxation under subdivision 2.
277.27(d) A person, organization, or business entity conducting gambling activity under this
277.28subdivision must file monthly tax returns with the commissioner, in the form required by
277.29the commissioner. The returns must be filed on or before the 20th day of the month following
277.30the month in which the gambling activity occurred. The tax imposed by this section is due
277.31and payable at the time when the returns are required to be filed.
277.32(e) Notwithstanding any law to the contrary, neither the commissioner nor a public
277.33employee may reveal facts contained in a tax return filed with the commissioner of revenue
278.1as required by this subdivision, nor can any information contained in the report or return
278.2be used against the tax obligor in any criminal proceeding, unless independently obtained,
278.3except in connection with a proceeding involving taxes due under this section, or as provided
278.4in section 270C.055, subdivision 1. However, this paragraph does not prohibit the
278.5commissioner from publishing statistics that do not disclose the identity of tax obligors or
278.6the contents of particular returns or reports. Any person violating this paragraph is guilty
278.7of a gross misdemeanor.
278.8EFFECTIVE DATE.This section is effective for games played or purchased after June
278.930, 2017.

278.10    Sec. 12. Minnesota Statutes 2016, section 297H.06, subdivision 2, is amended to read:
278.11    Subd. 2. Materials. The tax is not imposed upon charges to generators of mixed municipal
278.12solid waste or upon the volume of nonmixed municipal solid waste for waste management
278.13services to manage the following materials:
278.14(1) mixed municipal solid waste and nonmixed municipal solid waste generated outside
278.15of Minnesota;
278.16(2) recyclable materials that are separated for recycling by the generator, collected
278.17separately from other waste, and recycled, to the extent the price of the service for handling
278.18recyclable material is separately itemized on a bill to the generator;
278.19(3) recyclable nonmixed municipal solid waste that is separated for recycling by the
278.20generator, collected separately from other waste, delivered to a waste facility for the purpose
278.21of recycling, and recycled;
278.22(4) industrial waste, when it is transported to a facility owned and operated by the same
278.23person that generated it;
278.24(5) mixed municipal solid waste from a recycling facility that separates or processes
278.25recyclable materials and reduces the volume of the waste by at least 85 percent, provided
278.26that the exempted waste is managed separately from other waste;
278.27(6) recyclable materials that are separated from mixed municipal solid waste by the
278.28generator, collected and delivered to a waste facility that recycles at least 85 percent of its
278.29waste, and are collected with mixed municipal solid waste that is segregated in leakproof
278.30bags, provided that the mixed municipal solid waste does not exceed five percent of the
278.31total weight of the materials delivered to the facility and is ultimately delivered to a waste
278.32facility identified as a preferred waste management facility in county solid waste plans
278.33under section 115A.46;
279.1(7) source-separated compostable waste materials, if the waste is materials are delivered
279.2to a facility exempted as described in this clause. To initially qualify for an exemption, a
279.3facility must apply for an exemption in its application for a new or amended solid waste
279.4permit to the Pollution Control Agency. The first time a facility applies to the agency it
279.5must certify in its application that it will comply with the criteria in items (i) to (v) and the
279.6commissioner of the agency shall so certify to the commissioner of revenue who must grant
279.7the exemption. The facility must annually apply to the agency for certification to renew its
279.8exemption for the following year. The application must be filed according to the procedures
279.9of, and contain the information required by, the agency. The commissioner of revenue shall
279.10grant the exemption if the commissioner of the Pollution Control Agency finds and certifies
279.11to the commissioner of revenue that based on an evaluation of the composition of incoming
279.12waste and residuals and the quality and use of the product:
279.13(i) generators separate materials at the source;
279.14(ii) the separation is performed in a manner appropriate to the technology specific to the
279.15facility that:
279.16(A) maximizes the quality of the product;
279.17(B) minimizes the toxicity and quantity of residuals rejects; and
279.18(C) provides an opportunity for significant improvement in the environmental efficiency
279.19of the operation;
279.20(iii) the operator of the facility educates generators, in coordination with each county
279.21using the facility, about separating the waste to maximize the quality of the waste stream
279.22for technology specific to the facility;
279.23(iv) process residuals rejects do not exceed 15 percent of the weight of the total material
279.24delivered to the facility; and
279.25(v) the final product is accepted for use;
279.26(8) waste and waste by-products for which the tax has been paid; and
279.27(9) daily cover for landfills that has been approved in writing by the Minnesota Pollution
279.28Control Agency.
279.29EFFECTIVE DATE.This section is effective the day following final enactment.

280.1    Sec. 13. Minnesota Statutes 2016, section 297I.05, subdivision 2, is amended to read:
280.2    Subd. 2. Town and farmers' Township mutual insurance. A tax is imposed on town
280.3and farmers' township mutual insurance companies. The rate of tax is equal to one percent
280.4of gross premiums less return premiums on all direct business received by the insurer or
280.5agents of the insurer in Minnesota, in cash or otherwise, during the year.
280.6EFFECTIVE DATE.This section is effective the day following final enactment.

280.7    Sec. 14. Minnesota Statutes 2016, section 297I.10, subdivision 1, is amended to read:
280.8    Subdivision 1. Cities of the first class. (a) The commissioner shall order and direct a
280.9surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross
280.10premiums, less return premiums, on all direct business received by any licensed foreign or
280.11domestic fire insurance company on property in a city of the first class, or by its agents for
280.12it, in cash or otherwise.
280.13(b) By July 31 and December 31 of each year, the commissioner of management and
280.14budget shall pay to each city of the first class a warrant for an amount equal to the total
280.15amount of the surcharge on the premiums collected within that city since the previous
280.16payment.
280.17(c) The treasurer of the city shall place the money received under this subdivision in a
280.18special account or fund to defray all or a portion of the employer contribution requirement
280.19of public employees police and fire plan coverage for city firefighters.
280.20EFFECTIVE DATE.This section is effective the day following final enactment.

280.21    Sec. 15. Minnesota Statutes 2016, section 297I.10, subdivision 3, is amended to read:
280.22    Subd. 3. Appropriation. The amount necessary to make the payments required under
280.23this section is appropriated to the commissioner of management and budget from the general
280.24fund.
280.25EFFECTIVE DATE.This section is effective the day following final enactment.

280.26    Sec. 16. Minnesota Statutes 2016, section 298.01, subdivision 4c, is amended to read:
280.27    Subd. 4c. Special deductions; net operating loss. (a) For purposes of determining
280.28taxable income under subdivision 4, the provisions of sections 290.0133, subdivisions 7
280.29and 9, and 290.0134, subdivisions 7 and 9, are not used to determine taxable income.
281.1(b) The amount of net operating loss incurred in a taxable year beginning before January
281.21, 1990, that may be carried over to a taxable year beginning after December 31, 1989, is
281.3the amount of net operating loss carryover determined in the calculation of the hypothetical
281.4corporate franchise tax under Minnesota Statutes 1988, sections 298.40 and 298.402.
281.5EFFECTIVE DATE.This section is effective the day following final enactment.

281.6ARTICLE 16

281.7DEPARTMENT 2017 TECHNICAL PROVISIONS: INCOME, CORPORATE
281.8FRANCHISE, AND ESTATE TAXES

281.9    Section 1. Minnesota Statutes 2016, section 290.0132, subdivision 21, is amended to read:
281.10    Subd. 21. Military service pension; retirement pay. To the extent included in federal
281.11taxable income, compensation received from a pension or other retirement pay from the
281.12federal government for service in the military, as computed under United States Code, title
281.1310, sections 1401 to 1414, 1447 to 1455, and 12733, is a subtraction. The subtraction must
281.14not include any amount used to claim the credit allowed under section 290.0677 is limited
281.15to individuals who do not claim the credit under section 290.0677.
281.16EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
281.17after December 31, 2015.

281.18    Sec. 2. Minnesota Statutes 2016, section 290A.03, subdivision 3, is amended to read:
281.19    Subd. 3. Income. (a) "Income" means the sum of the following:
281.20    (1) federal adjusted gross income as defined in the Internal Revenue Code; and
281.21    (2) the sum of the following amounts to the extent not included in clause (1):
281.22    (i) all nontaxable income;
281.23    (ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
281.24paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
281.25carryover allowed under section 469(b) of the Internal Revenue Code;
281.26    (iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
281.27solvent individual excluded from gross income under section 108(g) of the Internal Revenue
281.28Code;
281.29    (iv) cash public assistance and relief;
281.30    (v) any pension or annuity (including railroad retirement benefits, all payments received
281.31under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
282.1which was not exclusively funded by the claimant or spouse, or which was funded exclusively
282.2by the claimant or spouse and which funding payments were excluded from federal adjusted
282.3gross income in the years when the payments were made;
282.4    (vi) interest received from the federal or a state government or any instrumentality or
282.5political subdivision thereof;
282.6    (vii) workers' compensation;
282.7    (viii) nontaxable strike benefits;
282.8    (ix) the gross amounts of payments received in the nature of disability income or sick
282.9pay as a result of accident, sickness, or other disability, whether funded through insurance
282.10or otherwise;
282.11    (x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
282.121986, as amended through December 31, 1995;
282.13    (xi) contributions made by the claimant to an individual retirement account, including
282.14a qualified voluntary employee contribution; simplified employee pension plan;
282.15self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
282.16the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
282.17Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
282.18the claimant and spouse;
282.19    (xii) to the extent not included in federal adjusted gross income, distributions received
282.20by the claimant or spouse from a traditional or Roth style retirement account or plan;
282.21    (xiii) nontaxable scholarship or fellowship grants;
282.22    (xiv) the amount of deduction allowed under section 199 of the Internal Revenue Code;
282.23    (xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
282.24Code;
282.25    (xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
282.26Code; and
282.27    (xvii) the amount deducted for certain expenses of elementary and secondary school
282.28teachers under section 62(a)(2)(D) of the Internal Revenue Code.
282.29    In the case of an individual who files an income tax return on a fiscal year basis, the
282.30term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
282.31the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
283.1by the amount of a net operating loss carryback or carryforward or a capital loss carryback
283.2or carryforward allowed for the year.
283.3    (b) "Income" does not include:
283.4    (1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
283.5    (2) amounts of any pension or annuity which was exclusively funded by the claimant
283.6or spouse and which funding payments were not excluded from federal adjusted gross
283.7income in the years when the payments were made;
283.8    (3) to the extent included in federal adjusted gross income, amounts contributed by the
283.9claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
283.10the retirement base amount reduced by the amount of contributions excluded from federal
283.11adjusted gross income, but not less than zero;
283.12    (4) surplus food or other relief in kind supplied by a governmental agency;
283.13    (5) relief granted under this chapter;
283.14    (6) child support payments received under a temporary or final decree of dissolution or
283.15legal separation; or
283.16    (7) restitution payments received by eligible individuals and excludable interest as
283.17defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
283.18Public Law 107-16.
283.19    (c) The sum of the following amounts may be subtracted from income:
283.20    (1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
283.21    (2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
283.22    (3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
283.23    (4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
283.24    (5) for the claimant's fifth dependent, the exemption amount; and
283.25    (6) if the claimant or claimant's spouse was disabled or attained the age of 65 on or
283.26before December 31 of the year for which the taxes were levied or rent paid, the exemption
283.27amount.
283.28    (d) For purposes of this subdivision, the "exemption amount" means the exemption
283.29amount under section 151(d) of the Internal Revenue Code for the taxable year for which
283.30the income is reported; "retirement base amount" means the deductible amount for the
283.31taxable year for the claimant and spouse under section 219(b)(5)(A) of the Internal Revenue
284.1Code, adjusted for inflation as provided in section 219(b)(5)(D)(C) of the Internal Revenue
284.2Code, without regard to whether the claimant or spouse claimed a deduction; and "traditional
284.3or Roth style retirement account or plan" means retirement plans under sections 401, 403,
284.4408, 408A, and 457 of the Internal Revenue Code.
284.5EFFECTIVE DATE.This section is effective the day following final enactment.

284.6    Sec. 3. Minnesota Statutes 2016, section 290A.10, is amended to read:
284.7290A.10 PROOF OF TAXES PAID.
284.8Every If requested by the commissioner of revenue, a claimant who files a claim for
284.9relief for property taxes payable shall include with the claim provide a property tax statement
284.10or a reproduction thereof in a form deemed satisfactory by the commissioner of revenue
284.11indicating that there are no delinquent property taxes on the homestead. Indication on the
284.12property tax statement from the county treasurer that there are no delinquent taxes on the
284.13homestead shall be sufficient proof. Taxes included in a confession of judgment under
284.14section 277.23 or 279.37 shall not constitute delinquent taxes as long as the claimant is
284.15current on the payments required to be made under section 277.23 or 279.37.
284.16EFFECTIVE DATE.This section is effective for refunds based on rent paid after
284.17December 31, 2015, and property taxes payable after December 31, 2016.

284.18    Sec. 4. Minnesota Statutes 2016, section 291.075, is amended to read:
284.19291.075 SPECIAL USE VALUATION OF QUALIFIED PROPERTY.
284.20If, after the final determination of the tax imposed by this chapter, the property valued
284.21pursuant to section 2032A of the Internal Revenue Code is disposed of or fails to qualify
284.22and an additional tax is imposed pursuant to section 2032A(c), any increase in the credit
284.23for state death taxes federal gross or taxable estate shall be reported to the commissioner
284.24within 90 days after final determination of the increased credit of the federal adjustment.
284.25Upon notification the commissioner may assess an additional tax in accordance with section
284.26291.03, subdivision 1 .
284.27EFFECTIVE DATE.This section is effective the day following final enactment.

284.28    Sec. 5. REPEALER.
284.29Minnesota Statutes 2016, sections 290.9743; and 290.9744, are repealed.
284.30EFFECTIVE DATE.This section is effective the day following final enactment.

285.1ARTICLE 17

285.2DEPARTMENT 2017 POLICY AND TECHNICAL PROVISIONS: SALES AND
285.3USE, AND SPECIAL TAXES

285.4    Section 1. Minnesota Statutes 2016, section 84.82, subdivision 10, is amended to read:
285.5    Subd. 10. Proof of sales tax payment; collection and refund. (a) A person applying
285.6for initial registration of a snowmobile must provide a snowmobile purchaser's certificate,
285.7showing a complete description of the snowmobile, the seller's name and address, the full
285.8purchase price of the snowmobile, and the trade-in allowance, if any. The certificate must
285.9include information showing either receipt, invoice, or other document to prove that:
285.10(1) that the sales and use tax under chapter 297A was paid or;
285.11(2) the purchase was exempt from tax under chapter 297A. The commissioner of public
285.12safety, in consultation with the commissioner and the commissioner of revenue, shall
285.13prescribe the form of the certificate.The certificate is not required if the applicant provides
285.14a receipt, invoice, or other document that shows; or
285.15(3) the snowmobile was purchased from a retailer that is maintaining a place of business
285.16in this state as defined in section 297A.66, subdivision 1, and is a dealer.
285.17(b) The commissioner or authorized deputy registrars, acting as agents of the
285.18commissioner of revenue under an agreement between the commissioner and the
285.19commissioner of revenue, as provided in section 297A.825:
285.20(1) must collect use tax from the applicant if the applicant does not provide the proof
285.21required under paragraph (a); and
285.22(2) are authorized to issue refunds of use tax paid to them in error.
285.23(c) Subdivision 11 does not apply to refunds under this subdivision.
285.24EFFECTIVE DATE.This section is effective for snowmobiles registered after June
285.2530, 2017.

285.26    Sec. 2. Minnesota Statutes 2016, section 84.922, subdivision 11, is amended to read:
285.27    Subd. 11. Proof of sales tax payment; collection and refund. (a) A person applying
285.28for initial registration in Minnesota of an all-terrain vehicle shall must provide a purchaser's
285.29certificate showing a complete description of the all-terrain vehicle, the seller's name and
285.30address, the full purchase price of the all-terrain vehicle, and the trade-in allowance, if any.
286.1The certificate also must include information showing either receipt, invoice, or other
286.2document to prove that:
286.3(1) the sales and use tax under chapter 297A was paid, or;
286.4(2) the purchase was exempt from tax under chapter 297A. The certificate is not required
286.5if the applicant provides a receipt, invoice, or other document that shows; or
286.6(3) the all-terrain vehicle was purchased from a retailer that is maintaining a place of
286.7business in this state as defined in section 297A.66, subdivision 1, and is a dealer.
286.8(b) The commissioner or authorized deputy registrars, acting as agents of the
286.9commissioner of revenue under an agreement between the commissioner and the
286.10commissioner of revenue, as provided in section 297A.825:
286.11(1) must collect use tax from the applicant if the applicant does not provide the proof
286.12required under paragraph (a); and
286.13(2) are authorized to issue refunds of use tax paid to them in error.
286.14(c) Subdivision 12 does not apply to refunds under this subdivision.
286.15EFFECTIVE DATE.This section is effective for all-terrain vehicles registered after
286.16June 30, 2017.

286.17    Sec. 3. Minnesota Statutes 2016, section 86B.401, subdivision 12, is amended to read:
286.18    Subd. 12. Proof of sales tax payment; collection and refund. (a) A person applying
286.19for initial licensing of a watercraft must provide a watercraft purchaser's certificate, showing
286.20a complete description of the watercraft, the seller's name and address, the full purchase
286.21price of the watercraft, and the trade-in allowance, if any. The certificate must include
286.22information showing either receipt, invoice, or other document to prove that:
286.23(1) that the sales and use tax under chapter 297A was paid or;
286.24(2) the purchase was exempt from tax under chapter 297A. The commissioner of public
286.25safety, in consultation with the commissioner and the commissioner of revenue, shall
286.26prescribe the form of the certificate.The certificate is not required if the applicant provides
286.27a receipt, invoice, or other document that shows; or
286.28(3) the watercraft was purchased from a retailer that is maintaining a place of business
286.29in this state as defined in section 297A.66, subdivision 1, and is a dealer.
287.1(b) The commissioner or authorized deputy registrars, acting as agents of the
287.2commissioner of revenue under an agreement between the commissioner and the
287.3commissioner of revenue, as provided in section 297A.825:
287.4(1) must collect use tax from the applicant if the applicant does not provide the proof
287.5required under paragraph (a); and
287.6(2) are authorized to issue refunds of use tax paid to them in error.
287.7(c) Section 86B.415, subdivision 11, does not apply to refunds under this subdivision.
287.8EFFECTIVE DATE.This section is effective for watercraft licensed after June 30,
287.92017.

287.10    Sec. 4. Minnesota Statutes 2016, section 115A.1314, subdivision 1, is amended to read:
287.11    Subdivision 1. Registration fee. (a) Each manufacturer who registers under section
287.12115A.1312 must, by August 15 each year, pay to the commissioner of revenue an annual
287.13registration fee, on a form and in a manner prescribed by the commissioner of revenue. The
287.14commissioner of revenue must deposit the fee in the state treasury and credit the fee to the
287.15environmental fund.
287.16    (b) The registration fee for manufacturers that sell 100 or more video display devices
287.17to households in the state during the previous calendar year is $2,500, plus a variable
287.18recycling fee. The registration fee for manufacturers that sell fewer than 100 video display
287.19devices to households in the state during the previous calendar year is a variable recycling
287.20fee. The variable recycling fee is calculated according to the formula:
287.21    [A - (B + C)] x D, where:
287.22    A = the manufacturer's recycling obligation as determined under section 115A.1320;
287.23    B = the number of pounds of covered electronic devices recycled by a manufacturer
287.24from households during the immediately preceding program year, as reported under section
287.25115A.1316, subdivision 1 ;
287.26    C = the number of phase I or phase II recycling credits a manufacturer elects to use to
287.27calculate the variable recycling fee; and
287.28    D = the estimated per-pound cost of recycling, initially set at $0.50 per pound for
287.29manufacturers who recycle less than 50 percent of the manufacturer's recycling obligation;
287.30$0.40 per pound for manufacturers who recycle at least 50 percent but less than 90 percent
287.31of the manufacturer's recycling obligation; $0.30 per pound for manufacturers who recycle
287.32at least 90 percent but less than 100 percent of the manufacturer's recycling obligation; and
288.1$0.00 per pound for manufacturers who recycle 100 percent or more of the manufacturer's
288.2recycling obligation.
288.3    (c) A manufacturer may petition the agency to waive the per-pound cost of recycling
288.4fee, element D in the formula in paragraph (b), required under this section. The agency shall
288.5direct the commissioner of revenue to waive the per-pound cost of recycling fee if the
288.6manufacturer demonstrates to the agency's satisfaction a good faith effort to meet its recycling
288.7obligation as determined under section 115A.1320. The petition must include:
288.8    (1) documentation that the manufacturer has met at least 75 percent of its recycling
288.9obligation as determined under section 115A.1320;
288.10    (2) a list of political subdivisions and public and private collectors with whom the
288.11manufacturer had a formal contract or agreement in effect during the previous program year
288.12to recycle or collect covered electronic devices;
288.13    (3) the total amounts of covered electronic devices collected from both within and outside
288.14of the 11-county metropolitan area, as defined in subdivision 2;
288.15    (4) a description of the manufacturer's best efforts to meet its recycling obligation as
288.16determined under section 115A.1320; and
288.17    (5) any other information requested by the agency.
288.18    (d) A manufacturer may retain phase I and phase II recycling credits to be added, in
288.19whole or in part, to the actual value of C, as reported under section 115A.1316, subdivision
288.202 , during any succeeding program year, provided that no more than 25 percent of a
288.21manufacturer's recycling obligation (A x B) for any program year may be met with phase
288.22I and phase II recycling credits, separately or in combination, generated in a prior program
288.23year. A manufacturer may sell any portion or all of its phase I and phase II recycling credits
288.24to another manufacturer, at a price negotiated by the parties, who may use the credits in the
288.25same manner.
288.26    (e) For the purpose of calculating a manufacturer's variable recycling fee under paragraph
288.27(b), starting with the program year beginning July 1, 2019, and continuing each year
288.28thereafter, the weight of covered electronic devices collected from households located
288.29outside the 11-county metropolitan area, as defined in subdivision 2, paragraph (b), is
288.30calculated at 1.5 times their actual weight.
288.31EFFECTIVE DATE.This section is effective for registration fees due after June 30,
288.322017.

289.1    Sec. 5. Minnesota Statutes 2016, section 270B.14, is amended by adding a subdivision to
289.2read:
289.3    Subd. 20. Department of Natural Resources; authorized deputy registrars of motor
289.4vehicles. The commissioner may disclose return information related to the taxes imposed
289.5by chapter 297A to the Department of Natural Resources or an authorized deputy registrar
289.6of motor vehicles only:
289.7(1) if the commissioner has an agreement with the commissioner of natural resources
289.8under section 297A.825, subdivision 1; and
289.9(2) to the extent necessary for the Department of Natural Resources or an authorized
289.10deputy registrar of motor vehicles, as agents for the commissioner, to verify that the
289.11applicable sales or use tax has been paid or that a sales tax exemption applies on the purchase
289.12of a snowmobile, all-terrain vehicle, or watercraft, and to administer sections 84.82,
289.13subdivision 10; 84.922, subdivision 11; 86B.401, subdivision 12; and 297A.825, regarding
289.14either their collection of use tax or their issuance of refunds to applicants of use tax paid to
289.15them in error.
289.16EFFECTIVE DATE.This section is effective the day following final enactment.

289.17    Sec. 6. Minnesota Statutes 2016, section 270C.171, subdivision 1, is amended to read:
289.18    Subdivision 1. Definitions. (a) If a special law grants a local government unit or group
289.19of units the authority to impose a local tax other than sales tax, including but not limited to
289.20taxes such as lodging, entertainment, admissions, or food and beverage taxes, and the
289.21Department of Revenue either has agreed to or is required to administer the tax, such that
289.22the tax is reported and paid with the chapter 297A taxes, then the local government unit or
289.23group of units must adopt each definition term used in the special law is defined as follows:
289.24(1) the definition must be identical to the definition found as defined in chapter 297A
289.25or in Minnesota Rules, chapter 8130; or
289.26(2) if the specific term is not defined either in chapter 297A or in Minnesota Rules,
289.27chapter 8130, then the definition must be defined consistent with the position of the
289.28Department of Revenue as to the extent of the tax base.
289.29(b) This subdivision does not apply to terms that are defined by the authorizing special
289.30law.
289.31(c) This subdivision applies notwithstanding whether a local government unit or group
289.32of units adopts consistent definitions into local law.
290.1EFFECTIVE DATE.This section is effective the day following final enactment.

290.2    Sec. 7. Minnesota Statutes 2016, section 289A.50, subdivision 2a, is amended to read:
290.3    Subd. 2a. Refund of sales tax to purchasers. (a) If a vendor has collected from a
290.4purchaser a tax on a transaction that is not subject to the tax imposed by chapter 297A, the
290.5purchaser may apply directly to the commissioner for a refund under this section if:
290.6(1) the purchaser is currently registered or was registered during the period of the claim,
290.7to collect and remit the sales tax or to remit the use tax; and
290.8(2) either
290.9(i) the amount of the refund to be applied for exceeds $500, or
290.10(ii) the amount of the refund to be applied for does not exceed $500, but the purchaser
290.11also applies for a capital equipment claim at the same time, and the total of the two refunds
290.12exceeds $500.
290.13(b) The purchaser may not file more than two applications for refund under this
290.14subdivision in a calendar year.
290.15(c) Refunds shall not be issued for sales for resale where the vendor has a published no
290.16resale policy.
290.17EFFECTIVE DATE.This section is effective the day following final enactment.

290.18    Sec. 8. [297A.825] SNOWMOBILES; ALL-TERRAIN VEHICLES; WATERCRAFT;
290.19PAYMENT OF TAXES; REFUNDS.
290.20    Subdivision 1. Agreement with commissioners of natural resources and public
290.21safety; collection and refunds. The commissioner may enter into an agreement with the
290.22commissioner of natural resources, in consultation with the commissioner of public safety,
290.23that provides that:
290.24(1) the commissioner of natural resources and authorized deputy registrars of motor
290.25vehicles must collect use tax on snowmobiles, all-terrain vehicles, and watercraft from
290.26persons applying for initial registration or license of the item unless the applicant provides
290.27a receipt, invoice, or other document to prove that:
290.28(i) sales tax was paid on the purchase;
290.29(ii) the purchase was exempt under this chapter;
290.30(iii) use tax was paid to the commissioner in a form prescribed by the commissioner; or
291.1(iv) the item was purchased from a retailer that is maintaining a place of business in this
291.2state as defined in section 297A.66, subdivision 1, and is a dealer as defined in section
291.384.81, subdivision 10; 84.92, subdivision 3; or 86B.005, subdivision 4; and
291.4(2) the commissioner of natural resources and authorized deputy registrars of motor
291.5vehicles are authorized to issue refunds of use tax paid to them in error, meaning that either
291.6the sales or use tax had already been paid or that the purchase was exempt from tax under
291.7this chapter.
291.8    Subd. 2. Agents. For the purposes of collecting or refunding the tax under this section,
291.9the commissioner of natural resources and authorized deputy registrars of motor vehicles
291.10are the agents of the commissioner and are subject to, and must strictly comply with, all
291.11rules consistent with this chapter prescribed by the commissioner.
291.12EFFECTIVE DATE.This section is effective the day following final enactment.

291.13    Sec. 9. Minnesota Statutes 2016, section 297I.30, subdivision 7, is amended to read:
291.14    Subd. 7. Surcharge. (a) By April 30 of each year, every company required to pay the
291.15surcharge under section 297I.10, subdivision 1, shall file a return for the five-month period
291.16ending March 31 in the form prescribed by the commissioner.
291.17(b) (a) By June 30 of each year, every company required to pay the surcharge under
291.18section 297I.10, subdivision 1, shall file a return for the two-month seven-month period
291.19ending May 31 in the form prescribed by the commissioner.
291.20(c) (b) By November 30 of each year, every company required to pay the surcharge
291.21under section 297I.10, subdivision 1, shall file a return for the five-month period ending
291.22October 31 in the form prescribed by the commissioner.
291.23EFFECTIVE DATE.This section is effective for returns due after October 31, 2017.

291.24    Sec. 10. Minnesota Statutes 2016, section 298.01, subdivision 3, is amended to read:
291.25    Subd. 3. Occupation tax; other ores. Every person engaged in the business of mining,
291.26refining, or producing ores, metals, or minerals in this state, except iron ore or taconite
291.27concentrates, shall pay an occupation tax to the state of Minnesota as provided in this
291.28subdivision. For purposes of this subdivision, mining includes the application of
291.29hydrometallurgical processes. Hydrometallurgical processes are processes that extract the
291.30ores, metals, or minerals, by use of aqueous solutions that leach, concentrate, and recover
291.31the ore, metal, or mineral. The tax is determined in the same manner as the tax imposed by
291.32section 290.02, except that sections 290.05, subdivision 1, clause (a), 290.17, subdivision
292.14 , and 290.191, subdivision 2, do not apply, and the occupation tax must be computed by
292.2applying to taxable income the rate of 2.45 percent. A person subject to occupation tax
292.3under this section shall apportion its net income on the basis of the percentage obtained by
292.4taking the sum of:
292.5    (1) 75 percent of the percentage which the sales made within this state in connection
292.6with the trade or business during the tax period are of the total sales wherever made in
292.7connection with the trade or business during the tax period;
292.8    (2) 12.5 percent of the percentage which the total tangible property used by the taxpayer
292.9in this state in connection with the trade or business during the tax period is of the total
292.10tangible property, wherever located, used by the taxpayer in connection with the trade or
292.11business during the tax period; and
292.12    (3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred
292.13in this state or paid in respect to labor performed in this state in connection with the trade
292.14or business during the tax period are of the taxpayer's total payrolls paid or incurred in
292.15connection with the trade or business during the tax period.
292.16    The tax is in addition to all other taxes.
292.17EFFECTIVE DATE.This section is effective the day following final enactment.

292.18    Sec. 11. Minnesota Statutes 2016, section 298.01, subdivision 4, is amended to read:
292.19    Subd. 4. Occupation tax; iron ore; taconite concentrates. A person engaged in the
292.20business of mining or producing of iron ore, taconite concentrates or direct reduced ore in
292.21this state shall pay an occupation tax to the state of Minnesota. The tax is determined in the
292.22same manner as the tax imposed by section 290.02, except that sections 290.05, subdivision
292.231 , clause (a), 290.17, subdivision 4, and 290.191, subdivision 2, do not apply, and the
292.24occupation tax shall be computed by applying to taxable income the rate of 2.45 percent.
292.25A person subject to occupation tax under this section shall apportion its net income on the
292.26basis of the percentage obtained by taking the sum of:
292.27(1) 75 percent of the percentage which the sales made within this state in connection
292.28with the trade or business during the tax period are of the total sales wherever made in
292.29connection with the trade or business during the tax period;
292.30(2) 12.5 percent of the percentage which the total tangible property used by the taxpayer
292.31in this state in connection with the trade or business during the tax period is of the total
292.32tangible property, wherever located, used by the taxpayer in connection with the trade or
292.33business during the tax period; and
293.1(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred
293.2in this state or paid in respect to labor performed in this state in connection with the trade
293.3or business during the tax period are of the taxpayer's total payrolls paid or incurred in
293.4connection with the trade or business during the tax period.
293.5The tax is in addition to all other taxes.
293.6EFFECTIVE DATE.This section is effective the day following final enactment.

293.7    Sec. 12. Minnesota Statutes 2016, section 298.24, subdivision 1, is amended to read:
293.8    Subdivision 1. Imposed; calculation. (a) For concentrate produced in 2013, there is
293.9imposed upon taconite and iron sulphides, and upon the mining and quarrying thereof, and
293.10upon the production of iron ore concentrate therefrom, and upon the concentrate so produced,
293.11a tax of $2.56 per gross ton of merchantable iron ore concentrate produced therefrom. The
293.12tax is also imposed upon other iron-bearing material.
293.13    (b) For concentrates produced in 2014 and subsequent years, the tax rate shall be equal
293.14to the preceding year's tax rate plus an amount equal to the preceding year's tax rate multiplied
293.15by the percentage increase in the implicit price deflator from the fourth quarter of the second
293.16preceding year to the fourth quarter of the preceding year. "Implicit price deflator" means
293.17the implicit price deflator for the gross domestic product prepared by the Bureau of Economic
293.18Analysis of the United States Department of Commerce.
293.19    (c) An additional tax is imposed equal to three cents per gross ton of merchantable iron
293.20ore concentrate for each one percent that the iron content of the product exceeds 72 percent,
293.21when dried at 212 degrees Fahrenheit.
293.22    (d) The tax on taconite and iron sulphides shall be imposed on the average of the
293.23production for the current year and the previous two years. The rate of the tax imposed will
293.24be the current year's tax rate. This clause shall not apply in the case of the closing of a
293.25taconite facility if the property taxes on the facility would be higher if this clause and section
293.26298.25 were not applicable. The tax on other iron-bearing material shall be imposed on the
293.27current year production.
293.28    (e) The tax under paragraph (a) is also imposed upon other iron-bearing material. The
293.29tax on other iron-bearing material shall be imposed on the current year production. The rate
293.30of the tax imposed is the current year's tax rate.
293.31    (e) (f) If the tax or any part of the tax imposed by this subdivision is held to be
293.32unconstitutional, a tax of $2.56 per gross ton of merchantable iron ore concentrate produced
293.33shall be imposed.
294.1    (f) (g) Consistent with the intent of this subdivision to impose a tax based upon the
294.2weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly
294.3determine the weight of merchantable iron ore concentrate included in fluxed pellets by
294.4subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic flux
294.5additives included in the pellets from the weight of the pellets. For purposes of this paragraph,
294.6"fluxed pellets" are pellets produced in a process in which limestone, dolomite, olivine, or
294.7other basic flux additives are combined with merchantable iron ore concentrate. No
294.8subtraction from the weight of the pellets shall be allowed for binders, mineral and chemical
294.9additives other than basic flux additives, or moisture.
294.10    (g) (h)(1) Notwithstanding any other provision of this subdivision, for the first two years
294.11of a plant's commercial production of direct reduced ore from ore mined in this state, no
294.12tax is imposed under this section. As used in this paragraph, "commercial production" is
294.13production of more than 50,000 tons of direct reduced ore in the current year or in any prior
294.14year, "noncommercial production" is production of 50,000 tons or less of direct reduced
294.15ore in any year, and "direct reduced ore" is ore that results in a product that has an iron
294.16content of at least 75 percent. For the third year of a plant's commercial production of direct
294.17reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate otherwise
294.18determined under this subdivision. For the fourth commercial production year, the rate is
294.1950 percent of the rate otherwise determined under this subdivision; for the fifth commercial
294.20production year, the rate is 75 percent of the rate otherwise determined under this subdivision;
294.21and for all subsequent commercial production years, the full rate is imposed.
294.22    (2) Subject to clause (1), production of direct reduced ore in this state is subject to the
294.23tax imposed by this section, but if that production is not produced by a producer of taconite,
294.24iron sulfides, or other iron-bearing material, the production of taconite, iron sulfides, or
294.25other iron-bearing material, that is consumed in the production of direct reduced iron ore
294.26in this state is not subject to the tax imposed by this section on taconite, iron sulfides, or
294.27other iron-bearing material.
294.28    (3) Notwithstanding any other provision of this subdivision, no tax is imposed on direct
294.29reduced ore under this section during the facility's noncommercial production of direct
294.30reduced ore. The taconite or iron sulphides consumed in the noncommercial production of
294.31direct reduced ore is subject to the tax imposed by this section on taconite and iron sulphides.
294.32Three-year average production of direct reduced ore does not include production of direct
294.33reduced ore in any noncommercial year. Three-year average production for a direct reduced
294.34ore facility that has noncommercial production is the average of the commercial production
294.35of direct reduced ore for the current year and the previous two commercial years.
295.1    (4) This paragraph applies only to plants for which all environmental permits have been
295.2obtained and construction has begun before July 1, 2008.
295.3EFFECTIVE DATE.This section is effective the day following final enactment.

295.4    Sec. 13. Minnesota Statutes 2016, section 298.28, subdivision 2, is amended to read:
295.5    Subd. 2. City or town where quarried or produced. (a) 4.5 cents per gross ton of
295.6merchantable iron ore concentrate, hereinafter referred to as "taxable ton," plus the amount
295.7provided in paragraph (c), must be allocated to the city or town in the county in which the
295.8lands from which taconite was mined or quarried were located or within which the
295.9concentrate was produced. If the mining, quarrying, and concentration, or different steps
295.10in either thereof are carried on in more than one taxing district, the commissioner shall
295.11apportion equitably the proceeds of the part of the tax going to cities and towns among such
295.12subdivisions upon the basis of attributing 50 percent of the proceeds of the tax to the operation
295.13of mining or quarrying the taconite, and the remainder to the concentrating plant and to the
295.14processes of concentration, and with respect to each thereof giving due consideration to the
295.15relative extent of such operations performed in each such taxing district. The commissioner's
295.16order making such apportionment shall be subject to review by the Tax Court at the instance
295.17of any of the interested taxing districts, in the same manner as other orders of the
295.18commissioner.
295.19(b)(1) Four cents per taxable ton shall be allocated to cities and organized townships
295.20affected by mining because their boundaries are within three miles of a taconite mine pit
295.21that:
295.22(i) was actively mined by LTV Steel Mining Company in 1999; or
295.23(ii) has been actively mined in at least one of the prior three years.
295.24(2) If a city or town is located near more than one mine meeting these the criteria under
295.25this paragraph, the city or town is eligible to receive aid calculated from only the mine
295.26producing the largest taxable tonnage. When more than one municipality qualifies for aid
295.27based on one company's production, the aid must be apportioned among the municipalities
295.28in proportion to their populations. The amounts distributed under this paragraph to each
295.29municipality must be used for infrastructure improvement projects.
295.30(c) The amount that would have been computed for the current year under Minnesota
295.31Statutes 2008, section 126C.21, subdivision 4, for a school district shall be distributed to
295.32the cities and townships within the school district in the proportion that their taxable net tax
296.1capacity within the school district bears to the taxable net tax capacity of the school district
296.2for property taxes payable in the year prior to distribution.
296.3EFFECTIVE DATE.This section is effective the day following final enactment.

296.4    Sec. 14. Minnesota Statutes 2016, section 298.28, subdivision 5, is amended to read:
296.5    Subd. 5. Counties. (a) 21.05 cents per taxable ton for distributions in 2015 through 2023,
296.6and 26.05 cents per taxable ton for distributions beginning in 2024, is allocated to counties
296.7to be distributed, based upon certification by the commissioner of revenue, under paragraphs
296.8(b) to (d).
296.9    (b) 10.525 cents per taxable ton shall be distributed to the county in which the taconite
296.10is mined or quarried or in which the concentrate is produced, less any amount which is to
296.11be distributed pursuant to paragraph (c). The apportionment formula prescribed in subdivision
296.122 is the basis for the distribution.
296.13    (c) If 1.0 cent per taxable ton of the tax distributed to the counties under paragraph (b)
296.14shall be paid to a county that received a distribution under this section in 2000 because there
296.15was located in the county an electric power plant owned by and providing the primary source
296.16of power for a taxpayer mining and concentrating taconite is located in a different county
296.17other than the county in which the mining and the concentrating processes are conducted,
296.18one cent per taxable ton of the tax distributed to the counties pursuant to paragraph (b) and
296.19imposed on and collected from such taxpayer shall be paid to the county in which the power
296.20plant is located.
296.21    (d) 10.525 cents per taxable ton for distributions in 2015 through 2023, and 15.525 cents
296.22per taxable ton for distributions beginning in 2024, shall be paid to the county from which
296.23the taconite was mined, quarried or concentrated to be deposited in the county road and
296.24bridge fund. If the mining, quarrying and concentrating, or separate steps in any of those
296.25processes are carried on in more than one county, the commissioner shall follow the
296.26apportionment formula prescribed in subdivision 2.
296.27EFFECTIVE DATE.This section is effective the day following final enactment.

296.28    Sec. 15. Minnesota Statutes 2016, section 469.190, subdivision 1, is amended to read:
296.29    Subdivision 1. Authorization; tax base. (a) Notwithstanding section 477A.016 or any
296.30other law, a statutory or home rule charter city may by ordinance, and a town may by the
296.31affirmative vote of the electors at the annual town meeting, or at a special town meeting,
296.32impose a tax of up to three percent on the gross receipts from the furnishing for consideration
297.1of lodging at a hotel, motel, rooming house, tourist court, or resort, other than the renting
297.2or leasing of it for a continuous period of 30 days or more. A statutory or home rule charter
297.3city may by ordinance impose the tax authorized under this subdivision on the camping site
297.4receipts of a municipal campground.
297.5(b) Regardless of whether the tax is collected locally or by the state, the tax imposed
297.6under this subdivision or under a special law applies to the entire consideration paid to
297.7obtain access to lodging, including ancillary or related services, such as services provided
297.8by an accommodations intermediary as defined in section 297A.61, and similar services.
297.9EFFECTIVE DATE; APPLICATION.This section is effective the day following
297.10final enactment. In enacting this section, the legislature confirms that Minnesota Statutes,
297.11section 469.190, its predecessor provisions, and any special laws authorizing political
297.12subdivisions to impose local lodging taxes, were and are intended to apply to the entire
297.13consideration paid to obtain access to transient lodging, including ancillary or related services,
297.14such as services provided by an accommodations intermediary as defined in Minnesota
297.15Statutes, section 297A.61, and similar services. The provisions of this section must not be
297.16interpreted to imply a narrower construction of the tax base under the lodging tax provisions
297.17of Minnesota law prior to the enactment of this section.

297.18    Sec. 16. Minnesota Statutes 2016, section 469.190, subdivision 7, is amended to read:
297.19    Subd. 7. Collection. (a) The statutory or home rule charter city may agree with the
297.20commissioner of revenue that a tax imposed pursuant to this section shall be collected by
297.21the commissioner together with the tax imposed by chapter 297A, and subject to the same
297.22interest, penalties, and other rules and that its proceeds, less the cost of collection, shall be
297.23remitted to the city.
297.24(b) If a tax under this section or a special law is not collected by the commissioner of
297.25revenue, the local government imposing the tax may by ordinance limit the required filing
297.26and remittance of the tax by an accommodations intermediary as defined in section 297A.61,
297.27subdivision 47, to once every calendar year. The local government must inform the
297.28accommodations intermediary of the date when the return or remittance is due and the date
297.29must coincide with one of the monthly dates for filing and remitting state sales tax under
297.30chapter 297A. The local government must also electronically provide an accommodations
297.31intermediary with geographic and zip code information necessary to collect the tax.
297.32EFFECTIVE DATE.This section is effective the day following final enactment.

298.1ARTICLE 18

298.2DEPARTMENT 2017 POLICY AND TECHNICAL PROVISIONS: PROPERTY
298.3TAX AND LOCAL GOVERNMENT AID

298.4    Section 1. Minnesota Statutes 2016, section 270.074, subdivision 1, is amended to read:
298.5    Subdivision 1. Valuation. The commissioner shall determine the market valuation of
298.6all flight property operated or used by every airline company in air commerce in this state.
298.7The valuation apportioned to this state of such flight property shall be the proportion of the
298.8total valuation thereof determined on the basis of the total of the following percentages:
298.9(1) 33-1/3 percent of the percentage which the total tonnage of passengers, express and
298.10freight first received by the airline company in this state during the preceding calendar year
298.11plus the total tonnage of passengers, express and freight finally discharged by it within this
298.12state during the preceding calendar year is of the total of such tonnage first received by the
298.13airline company or finally discharged by it, within and without this state during the preceding
298.14calendar year.
298.15(2) 33-1/3 percent of the percentage which, in equated plane hours, the total time of all
298.16aircraft of the airline company in flight in this state during the preceding calendar year, is
298.17of the total of such time in flight within and without this state during the preceding calendar
298.18year.
298.19(3) 33-1/3 (1) 50 percent of the percentage which the number of revenue ton miles of
298.20passengers, mail, express and freight flown by the airline company within this state during
298.21the preceding calendar year is of the total number of such miles flown by it within and
298.22without this state during the preceding calendar year.
298.23(2) 50 percent of the percentage that the total departures performed by the airline company
298.24within this state during the preceding calendar year is of the total departures performed
298.25within and without this state during the preceding calendar year.
298.26EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

298.27    Sec. 2. Minnesota Statutes 2016, section 270.078, subdivision 1, is amended to read:
298.28    Subdivision 1. Conformance to federal law. If any provision of sections 270.071 to
298.29270.079 is contrary to any provision of any law of the United States of America, hereinafter
298.30enacted, providing for or relating to the ad valorem taxation by a state of aircraft or flying
298.31equipment of an airline company, such provision shall be of no effect and the commissioner
298.32is authorized and directed to prescribe by rule such provisions as may be necessary to make
299.1sections 270.071 to 270.079 conform to the federal act and to effectuate the purposes of
299.2sections 270.071 to 270.079, provided such rules do not prescribe a rate of taxation higher
299.3than that provided in section 270.075 or a net tax capacity based on a percentage higher
299.4than that provided in section 270.074, subdivision 2 3.
299.5EFFECTIVE DATE.This section is effective the day following final enactment.

299.6    Sec. 3. Minnesota Statutes 2016, section 272.025, subdivision 1, is amended to read:
299.7    Subdivision 1. Statement of exemption. (a) Except in the case of property owned by
299.8the state of Minnesota or any political subdivision thereof, and property exempt from taxation
299.9under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the times
299.10provided in subdivision 3, a taxpayer claiming an exemption from taxation on property
299.11described in section 272.02, subdivisions 2 to 33, must file a statement of exemption with
299.12the assessor of the assessment district in which the property is located. By February 1, 2018,
299.13and by February 1 of each third year thereafter, the commissioner of revenue shall publish
299.14on its Web site a list of the exemptions for which a taxpayer claiming an exemption must
299.15file a statement of exemption. The commissioner's requirement that a taxpayer file a statement
299.16of exemption pursuant to this subdivision shall not be considered a rule and is not subject
299.17to the Administrative Procedure Act, chapter 14.
299.18(b) A taxpayer claiming an exemption from taxation on property described in section
299.19272.02, subdivision 10 , must file a statement of exemption with the commissioner of revenue,
299.20on or before February 15 of each year for which the taxpayer claims an exemption.
299.21(c) In case of sickness, absence or other disability or for good cause, the assessor or the
299.22commissioner may extend the time for filing the statement of exemption for a period not to
299.23exceed 60 days.
299.24(d) The commissioner of revenue shall prescribe the form and contents of the statement
299.25of exemption.
299.26EFFECTIVE DATE.This section is effective for applications for exemption submitted
299.27in 2018 and thereafter.

299.28    Sec. 4. Minnesota Statutes 2016, section 272.0295, is amended by adding a subdivision
299.29to read:
299.30    Subd. 8. Extension. The commissioner may, for good cause, extend the time for filing
299.31the report required by subdivision 4. The extension must not exceed 15 days.
299.32EFFECTIVE DATE.This section is effective for reports filed in 2018 and thereafter.

300.1    Sec. 5. Minnesota Statutes 2016, section 272.115, subdivision 1, is amended to read:
300.2    Subdivision 1. Requirement. Except as otherwise provided in subdivision 5 or 6,
300.3whenever any real estate is sold for a consideration in excess of $1,000 $1,500, whether by
300.4warranty deed, quitclaim deed, contract for deed or any other method of sale, the grantor,
300.5grantee or the legal agent of either shall file a certificate of value with the county auditor
300.6in the county in which the property is located when the deed or other document is presented
300.7for recording. Contract for deeds are subject to recording under section 507.235, subdivision
300.81 . Value shall, in the case of any deed not a gift, be the amount of the full actual consideration
300.9thereof, paid or to be paid, including the amount of any lien or liens assumed. The items
300.10and value of personal property transferred with the real property must be listed and deducted
300.11from the sale price. The certificate of value shall include the classification to which the
300.12property belongs for the purpose of determining the fair market value of the property, and
300.13shall include any proposed change in use of the property known to the person filing the
300.14certificate that could change the classification of the property. The certificate shall include
300.15financing terms and conditions of the sale which are necessary to determine the actual,
300.16present value of the sale price for purposes of the sales ratio study. If the property is being
300.17acquired as part of a like-kind exchange under section 1031 of the Internal Revenue Code
300.18of 1986, as amended through December 31, 2006, that must be indicated on the certificate.
300.19The commissioner of revenue shall promulgate administrative rules specifying the financing
300.20terms and conditions which must be included on the certificate. The certificate of value
300.21must include the Social Security number or the federal employer identification number of
300.22the grantors and grantees. However, a married person who is not an owner of record and
300.23who is signing a conveyance instrument along with the person's spouse solely to release
300.24and convey their marital interest, if any, in the real property being conveyed is not a grantor
300.25for the purpose of the preceding sentence. A statement in the deed that is substantially in
300.26the following form is sufficient to allow the county auditor to accept a certificate for filing
300.27without the Social Security number of the named spouse: "(Name) claims no ownership
300.28interest in the real property being conveyed and is executing this instrument solely to release
300.29and convey a marital interest, if any, in that real property." The identification numbers of
300.30the grantors and grantees are private data on individuals or nonpublic data as defined in
300.31section 13.02, subdivisions 9 and 12, but, notwithstanding that section, the private or
300.32nonpublic data may be disclosed to the commissioner of revenue for purposes of tax
300.33administration. The information required to be shown on the certificate of value is limited
300.34to the information required as of the date of the acknowledgment on the deed or other
300.35document to be recorded. The commissioner's determination of the amount for which a
301.1certificate of value is required pursuant to this subdivision shall not be considered a rule
301.2and is not subject to the Administrative Procedure Act, chapter 14.
301.3EFFECTIVE DATE.This section is effective for certificates of value filed after
301.4December 31, 2017.

301.5    Sec. 6. Minnesota Statutes 2016, section 272.115, subdivision 2, is amended to read:
301.6    Subd. 2. Form; information required. The certificate of value shall require such facts
301.7and information as may be determined by the commissioner to be reasonably necessary in
301.8the administration of the state education aid formulas. The form of the certificate of value
301.9shall be prescribed by the Department of Revenue which shall provide an adequate supply
301.10of forms to each county auditor.
301.11EFFECTIVE DATE.This section is effective the day following final enactment.

301.12    Sec. 7. Minnesota Statutes 2016, section 272.115, subdivision 3, is amended to read:
301.13    Subd. 3. Copies transmitted; homestead status. The county auditor shall transmit two
301.14true copies of the certificate of value to the assessor who shall insert into the certificate of
301.15value the most recent market value and when available, the year of original construction of
301.16each parcel of property on both copies, and shall transmit one copy the certificate of value
301.17to the Department of Revenue. Upon the request of a city council located within the county,
301.18a copy of each certificate of value for property located in that city shall be made available
301.19to the governing body of the city. The assessor shall remove the homestead classification
301.20for the following assessment year from a property which is sold or transferred, unless the
301.21grantee or the person to whom the property is transferred completes a homestead application
301.22under section 273.124, subdivision 13, and qualifies for homestead status.
301.23EFFECTIVE DATE.This section is effective for certificates of value filed after
301.24December 31, 2017.

301.25    Sec. 8. Minnesota Statutes 2016, section 273.0755, is amended to read:
301.26273.0755 TRAINING AND EDUCATION OF PROPERTY TAX PERSONNEL.
301.27(a) Beginning with the four-year period starting on July 1, 2000, every person licensed
301.28by the state Board of Assessors at the Accredited Minnesota Assessor level or higher, shall
301.29successfully complete a weeklong Minnesota laws course sponsored by the Department of
301.30Revenue at least once in every four-year period. An assessor need not attend the course if
301.31they successfully pass the test for the course.
302.1(b) The commissioner of revenue may require that each county, and each city for which
302.2the city assessor performs the duties of county assessor, have (i) a person on the assessor's
302.3staff who is certified by the Department of Revenue in sales ratio calculations, (ii) an officer
302.4or employee who is certified by the Department of Revenue in tax calculations, and (iii) an
302.5officer or employee who is certified by the Department of Revenue in the proper preparation
302.6of abstracts of assessment. The commissioner of revenue may require that each county have
302.7an officer or employee who is certified by the Department of Revenue in the proper
302.8preparation of abstracts of tax lists. Certifications under this paragraph expire after four
302.9years.
302.10(c) Beginning with the four-year educational licensing period starting on July 1, 2004,
302.11every Minnesota assessor licensed by the State Board of Assessors must attend and participate
302.12in a seminar that focuses on ethics, professional conduct and the need for standardized
302.13assessment practices developed and presented by the commissioner of revenue. This
302.14requirement must be met at least once in every subsequent four-year period. This requirement
302.15applies to all assessors licensed for one year or more in the four-year period.
302.16(d) The commissioner of revenue may require that at least one employee of any county
302.17or city that performs functions related to property tax administration complete additional
302.18training that the commissioner deems necessary to promote uniform and equitable
302.19implementation of the property tax laws, as defined in section 270C.01, subdivision 7.
302.20EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

302.21    Sec. 9. Minnesota Statutes 2016, section 273.124, subdivision 13, is amended to read:
302.22    Subd. 13. Homestead application. (a) A person who meets the homestead requirements
302.23under subdivision 1 must file a homestead application with the county assessor to initially
302.24obtain homestead classification.
302.25    (b) The format and contents of a uniform homestead application shall be prescribed by
302.26the commissioner of revenue. The application must clearly inform the taxpayer that this
302.27application must be signed by all owners who occupy the property or by the qualifying
302.28relative and returned to the county assessor in order for the property to receive homestead
302.29treatment.
302.30    (c) Every property owner applying for homestead classification must furnish to the
302.31county assessor the Social Security number of each occupant who is listed as an owner of
302.32the property on the deed of record, the name and address of each owner who does not occupy
302.33the property, and the name and Social Security number of each owner's spouse who occupies
303.1the property. The application must be signed by each owner who occupies the property and
303.2by each owner's spouse who occupies the property, or, in the case of property that qualifies
303.3as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
303.4    If a property owner occupies a homestead, the property owner's spouse may not claim
303.5another property as a homestead unless the property owner and the property owner's spouse
303.6file with the assessor an affidavit or other proof required by the assessor stating that the
303.7property qualifies as a homestead under subdivision 1, paragraph (e).
303.8    Owners or spouses occupying residences owned by their spouses and previously occupied
303.9with the other spouse, either of whom fail to include the other spouse's name and Social
303.10Security number on the homestead application or provide the affidavits or other proof
303.11requested, will be deemed to have elected to receive only partial homestead treatment of
303.12their residence. The remainder of the residence will be classified as nonhomestead residential.
303.13When an owner or spouse's name and Social Security number appear on homestead
303.14applications for two separate residences and only one application is signed, the owner or
303.15spouse will be deemed to have elected to homestead the residence for which the application
303.16was signed.
303.17    (d) If residential real estate is occupied and used for purposes of a homestead by a relative
303.18of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for
303.19the property to receive homestead status, a homestead application must be filed with the
303.20assessor. The Social Security number of each relative occupying the property and the name
303.21and Social Security number of the spouse of a relative occupying the property shall be
303.22required on the homestead application filed under this subdivision. If a different relative of
303.23the owner subsequently occupies the property, the owner of the property must notify the
303.24assessor within 30 days of the change in occupancy. The Social Security number of a relative
303.25occupying the property or relative's the spouse of a relative occupying the property is private
303.26data on individuals as defined by section 13.02, subdivision 12, but may be disclosed to the
303.27commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture
303.28Act to recover personal property taxes owing, to the county treasurer.
303.29    (e) The homestead application shall also notify the property owners that if the property
303.30is granted homestead status for any assessment year, that same property shall remain
303.31classified as homestead until the property is sold or transferred to another person, or the
303.32owners, the spouse of the owner, or the relatives no longer use the property as their
303.33homestead. Upon the sale or transfer of the homestead property, a certificate of value must
303.34be timely filed with the county auditor as provided under section 272.115. Failure to notify
303.35the assessor within 30 days that the property has been sold, transferred, or that the owner,
304.1the spouse of the owner, or the relative is no longer occupying the property as a homestead,
304.2shall result in the penalty provided under this subdivision and the property will lose its
304.3current homestead status.
304.4    (f) If a homestead application has not been filed with the county by December 15, the
304.5assessor shall classify the property as nonhomestead for the current assessment year for
304.6taxes payable in the following year, provided that the owner may be entitled to receive the
304.7homestead classification by proper application under section 375.192.
304.8EFFECTIVE DATE.This section is effective for applications for homestead filed in
304.92018 and thereafter.

304.10    Sec. 10. Minnesota Statutes 2016, section 273.124, subdivision 13d, is amended to read:
304.11    Subd. 13d. Homestead data. On or before April 30 each year beginning in 2007, each
304.12county must provide the commissioner with the following data for each parcel of homestead
304.13property by electronic means as defined in section 289A.02, subdivision 8:
304.14    (1) the property identification number assigned to the parcel for purposes of taxes payable
304.15in the current year;
304.16    (2) the name and Social Security number of each occupant of homestead property who
304.17is the property owner, property owner's spouse, or qualifying relative of a property owner,
304.18and the spouse of the property owner who occupies homestead property or spouse of a
304.19qualifying relative of a property owner who occupies homestead property;
304.20    (3) the classification of the property under section 273.13 for taxes payable in the current
304.21year and in the prior year;
304.22    (4) an indication of whether the property was classified as a homestead for taxes payable
304.23in the current year because of occupancy by a relative of the owner or by a spouse of a
304.24relative;
304.25    (5) the property taxes payable as defined in section 290A.03, subdivision 13, for the
304.26current year and the prior year;
304.27    (6) the market value of improvements to the property first assessed for tax purposes for
304.28taxes payable in the current year;
304.29    (7) the assessor's estimated market value assigned to the property for taxes payable in
304.30the current year and the prior year;
304.31    (8) the taxable market value assigned to the property for taxes payable in the current
304.32year and the prior year;
305.1    (9) whether there are delinquent property taxes owing on the homestead;
305.2    (10) the unique taxing district in which the property is located; and
305.3    (11) such other information as the commissioner decides is necessary.
305.4    The commissioner shall use the information provided on the lists as appropriate under
305.5the law, including for the detection of improper claims by owners, or relatives of owners,
305.6under chapter 290A.
305.7EFFECTIVE DATE.This section is effective for applications for homestead filed in
305.82018 and thereafter.

305.9    Sec. 11. Minnesota Statutes 2016, section 273.135, subdivision 1, is amended to read:
305.10    Subdivision 1. Reduction in tax; tax relief area. The property tax to be paid in respect
305.11to property taxable within a tax relief area as defined in section 273.134, paragraph (b), on
305.12homestead property, as otherwise determined by law and regardless of the market value of
305.13the property, and on nonhomestead portions of property classified as both homestead and
305.14nonhomestead property as provided in section 273.124, subdivision 11, for all purposes
305.15shall be reduced in the amount prescribed by subdivision 2, subject to the limitations
305.16contained therein.
305.17EFFECTIVE DATE.This section is effective the day following final enactment.

305.18    Sec. 12. Minnesota Statutes 2016, section 274.014, subdivision 3, is amended to read:
305.19    Subd. 3. Proof of compliance; transfer of duties. (a) Any city or town that conducts
305.20local boards of appeal and equalization meetings must provide proof to the county assessor
305.21by February 1 that it is in compliance comply with the training requirements of subdivision
305.222 by February 1, by having at least one member who has attended an appeals and equalization
305.23course described in subdivision 2 within the last four years. This notice must also verify
305.24that there was a quorum of voting members at each meeting of the board of appeal and
305.25equalization in the previous year. A city or town that does not comply with these requirements
305.26is deemed to have transferred its board of appeal and equalization powers to the county for
305.27a minimum of two assessment years, beginning with the current year's assessment and
305.28continuing thereafter unless the powers are reinstated under paragraph (c).
305.29    (b) The county shall notify the taxpayers when the board of appeal and equalization for
305.30a city or town has been transferred to the county under this subdivision and, prior to the
305.31meeting time of the county board of equalization, the county shall make available to those
306.1taxpayers a procedure for a review of the assessments, including, but not limited to, open
306.2book meetings. This alternate review process shall take place in April and May.
306.3    (c) A local board whose powers are transferred to the county under this subdivision may
306.4be reinstated by resolution of the governing body of the city or town and upon proof of
306.5compliance with the requirements of subdivision 2. The resolution and proofs must be
306.6provided to the county assessor by February 1 in order to be effective for the following
306.7year's assessment.
306.8    (d) A local board whose powers are transferred to the county under this subdivision may
306.9continue to employ a local assessor and is not deemed to have transferred its powers to
306.10make assessments.
306.11EFFECTIVE DATE.This section is effective for board of appeal and equalization
306.12meetings held in 2018 and thereafter.

306.13    Sec. 13. Minnesota Statutes 2016, section 274.135, subdivision 3, is amended to read:
306.14    Subd. 3. Proof of compliance; transfer of duties. (a) Any county that conducts county
306.15boards of appeal and equalization meetings must provide proof to the commissioner by
306.16December 1, 2009, and each year thereafter, that it is in compliance comply with the training
306.17requirements of subdivision 2 by February 1, by having at least one member who has attended
306.18an appeals and equalization course described in subdivision 2 within the last four years.
306.19Beginning in 2009, this notice must also verify that there was a quorum of voting members
306.20at each meeting of the board of appeal and equalization in the current year. A county that
306.21does not comply with these requirements is deemed to have transferred its board of appeal
306.22and equalization powers to the special board of equalization appointed pursuant to section
306.23274.13, subdivision 2 , for a minimum of two assessment years, beginning with the following
306.24year's assessment and continuing thereafter unless the powers are reinstated under paragraph
306.25(c). A county that does not comply with the requirements of subdivision 2 and has not
306.26appointed a special board of equalization shall appoint a special board of equalization before
306.27the following year's assessment.
306.28    (b) The county shall notify the taxpayers when the board of appeal and equalization for
306.29a county has been transferred to the special board of equalization under this subdivision
306.30and, prior to the meeting time of the special board of equalization, the county shall make
306.31available to those taxpayers a procedure for a review of the assessments, including, but not
306.32limited to, open book meetings. This alternate review process must take place in April and
306.33May.
307.1    (c) A county board whose powers are transferred to the special board of equalization
307.2under this subdivision may be reinstated by resolution of the county board and upon proof
307.3of compliance with the requirements of subdivision 2. The resolution and proofs must be
307.4provided to the commissioner by December 1 in order to be effective for the following
307.5year's assessment.
307.6(d) If a person who was entitled to appeal to the county board of appeal and equalization
307.7or to the county special board of equalization is not able to do so in a particular year because
307.8the county board or special board did not meet the quorum and training requirements in this
307.9section and section 274.13, or because the special board was not appointed, that person may
307.10instead appeal to the commissioner of revenue, provided that the appeal is received by the
307.11commissioner prior to August 1. The appeal is not subject to either chapter 14 or section
307.12270C.92 . The commissioner must issue an appropriate order to the county assessor in
307.13response to each timely appeal, either upholding or changing the valuation or classification
307.14of the property. Prior to October 1 of each year, the commissioner must charge and bill the
307.15county where the property is located $500 for each tax parcel covered by an order issued
307.16under this paragraph in that year. Amounts received by the commissioner under this paragraph
307.17must be deposited in the state's general fund. If payment of a billed amount is not received
307.18by the commissioner before December 1 of the year when billed, the commissioner must
307.19deduct that unpaid amount from any state aid the commissioner would otherwise pay to the
307.20county under chapter 477A in the next year. Late payments may either be returned to the
307.21county uncashed and undeposited or may be accepted. If a late payment is accepted, the
307.22state aid paid to the county under chapter 477A must be adjusted within 12 months to
307.23eliminate any reduction that occurred because the payment was late. Amounts needed to
307.24make these adjustments are included in the appropriation under section 477A.03, subdivision
307.252 .
307.26EFFECTIVE DATE.This section is effective for board of appeal and equalization
307.27meetings held in 2018 and thereafter.

307.28    Sec. 14. Minnesota Statutes 2016, section 414.09, subdivision 2, is amended to read:
307.29    Subd. 2. Transmittal of order. The chief administrative law judge shall see that copies
307.30of the order are mailed to all parties entitled to mailed notice of hearing under subdivision
307.311, the secretary of state, the Department of Revenue, the state demographer, individual
307.32property owners if initiated in that manner, affected county auditor, and any other party of
307.33record. The affected county auditor shall record the order against the affected property.
307.34EFFECTIVE DATE.This section is effective the day following final enactment.

308.1    Sec. 15. Minnesota Statutes 2016, section 477A.0124, subdivision 2, is amended to read:
308.2    Subd. 2. Definitions. (a) For the purposes of this section, the following terms have the
308.3meanings given them.
308.4    (b) "County program aid" means the sum of "county need aid," "county tax base
308.5equalization aid," and "county transition aid."
308.6    (c) "Age-adjusted population" means a county's population multiplied by the county age
308.7index.
308.8    (d) "County age index" means the percentage of the population over age 65 and over
308.9within the county divided by the percentage of the population over age 65 and over within
308.10the state, except that the age index for any county may not be greater than 1.8 nor less than
308.110.8.
308.12    (e) "Population over age 65 and over" means the population over age 65 and over
308.13established as of July 15 in an aid calculation year by the most recent federal census, by a
308.14special census conducted under contract with the United States Bureau of the Census, by a
308.15population estimate made by the Metropolitan Council, or by a population estimate of the
308.16state demographer made pursuant to section 4A.02, whichever is the most recent as to the
308.17stated date of the count or estimate for the preceding calendar year and which has been
308.18certified to the commissioner of revenue on or before July 15 of the aid calculation year. A
308.19revision to an estimate or count is effective for these purposes only if certified to the
308.20commissioner on or before July 15 of the aid calculation year. Clerical errors in the
308.21certification or use of estimates and counts established as of July 15 in the aid calculation
308.22year are subject to correction within the time periods allowed under section 477A.014.
308.23    (f) "Part I crimes" means the three-year average annual number of Part I crimes reported
308.24for each county by the Department of Public Safety for the most recent years available. By
308.25July 1 of each year, the commissioner of public safety shall certify to the commissioner of
308.26revenue the number of Part I crimes reported for each county for the three most recent
308.27calendar years available.
308.28    (g) "Households receiving food stamps" means the average monthly number of
308.29households receiving food stamps for the three most recent years for which data is available.
308.30By July 1 of each year, the commissioner of human services must certify to the commissioner
308.31of revenue the average monthly number of households in the state and in each county that
308.32receive food stamps, for the three most recent calendar years available.
309.1    (h) "County net tax capacity" means the county's adjusted net tax capacity under section
309.2273.1325 .
309.3EFFECTIVE DATE.This section is effective the day following final enactment.

309.4    Sec. 16. Minnesota Statutes 2016, section 477A.013, subdivision 1, is amended to read:
309.5    Subdivision 1. Towns. (a) In 2014 and thereafter, each town is eligible for a distribution
309.6under this subdivision equal to the product of (i) its agricultural property factor, (ii) its town
309.7area factor, (iii) its population factor, and (iv) 0.0045. As used in this subdivision, the
309.8following terms have the meanings given them:
309.9(1) "agricultural property factor" means the ratio of the adjusted net tax capacity of
309.10agricultural property located in a town, divided by to the adjusted net tax capacity of all
309.11other property located in the town. The agricultural property factor cannot exceed eight;
309.12(2) "agricultural property" means property classified under section 273.13, as homestead
309.13and nonhomestead agricultural property, rural vacant land, and noncommercial seasonal
309.14recreational property;
309.15(3) "town area factor" means the most recent estimate of total acreage, not to exceed
309.1650,000 acres, located in the township available as of July 1 in the aid calculation year,
309.17estimated or established by:
309.18(i) the United States Bureau of the Census;
309.19(ii) the State Land Management Information Center; or
309.20(iii) the secretary of state; and
309.21(4) "population factor" means the square root of the towns' population.
309.22(b) If the sum of the aids payable to all towns under this subdivision exceeds the limit
309.23under section 477A.03, subdivision 2c, the distribution to each town must be reduced
309.24proportionately so that the total amount of aids distributed under this section does not exceed
309.25the limit in section 477A.03, subdivision 2c.
309.26(c) Data used in calculating aids to towns under this subdivision, other than acreage,
309.27shall be the most recently available data as of January 1 in the year in which the aid is
309.28calculated.
309.29EFFECTIVE DATE.This section is effective the day following final enactment.

310.1    Sec. 17. REPEALER.
310.2Minnesota Statutes 2016, section 270.074, subdivision 2, is repealed.
310.3EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

310.4ARTICLE 19

310.5DEPARTMENT OF REVENUE PAID PREPARER POLICY PROVISIONS

310.6    Section 1. Minnesota Statutes 2016, section 270C.445, subdivision 2, is amended to read:
310.7    Subd. 2. Definitions. (a) For purposes of this section and sections 270C.4451 to
310.8270C.447, the following terms have the meanings given.
310.9(b) "Advertise" means to solicit business through any means or medium.
310.10(c) "Client" means an individual a person for whom a tax preparer performs or agrees
310.11to perform tax preparation services.
310.12(d) "Facilitate" means to individually or in conjunction or cooperation with another
310.13person:
310.14(1) accept an application for a refund anticipation loan;
310.15(2) pay to a client the proceeds, through direct deposit, a negotiable instrument, or any
310.16other means, of a refund anticipation loan; or
310.17(3) offer, arrange, process, provide, or in any other manner act to allow the making of,
310.18a refund anticipation loan.
310.19(e) "Person" means an individual, corporation, partnership, limited liability company,
310.20association, trustee, or other legal entity.
310.21(f) (e) "Refund anticipation check" means a negotiable instrument provided to a client
310.22by the tax preparer or another person, which is issued from the proceeds of a taxpayer's
310.23federal or state income tax refund or both and represents the net of the refund minus the tax
310.24preparation fee and any other fees. A refund anticipation check includes a refund transfer.
310.25(g) (f) "Refund anticipation loan" means a loan or any other extension of credit, whether
310.26provided by the tax preparer or another entity such as a financial institution, in anticipation
310.27of, and whose payment is secured by, a client's federal or state income tax refund or both.
310.28(h) (g) "Tax preparation services" means services provided for a fee or other consideration
310.29compensation to a client to:
310.30(1) assist with preparing or filing state or federal individual income tax returns a return;
311.1(2) assume final responsibility for completed work on an individual income tax a return
311.2on which preliminary work has been done by another; or
311.3(3) sign or include on a return the preparer tax identification number required under
311.4section 6109(a)(4) of the Internal Revenue Code; or
311.5(3) (4) facilitate the provision of a refund anticipation loans and loan or a refund
311.6anticipation checks check.
311.7(i) (h) "Tax preparer" or "preparer" means a person providing tax preparation services
311.8subject to this section. except:
311.9(1) an employee who prepares their employer's return;
311.10(2) any fiduciary, or the regular employees of a fiduciary, while acting on behalf of the
311.11fiduciary estate, testator, trustor, grantor, or beneficiaries of them;
311.12(3) nonprofit organizations providing tax preparation services under the Internal Revenue
311.13Service Volunteer Income Tax Assistance Program or Tax Counseling for the Elderly
311.14Program;
311.15(4) a person who merely furnishes typing, reproducing, or other mechanical assistance;
311.16(5) a third-party bulk filer as defined in section 290.92, subdivision 30, that is currently
311.17registered with the commissioner; and
311.18(6) a certified service provider as defined in section 297A.995, subdivision 2, paragraph
311.19(c), that provides all of the sales tax functions for a retailer not maintaining a place of
311.20business in this state as described in section 297A.66.
311.21(i) Except as otherwise provided, "return" means:
311.22(1) a return as defined in section 270C.01, subdivision 8;
311.23(2) a claim for refund of an overpayment;
311.24(3) a claim filed pursuant to chapter 290A; and
311.25(4) a claim for a credit filed under section 290.0677, subdivision 1.
311.26EFFECTIVE DATE.This section is effective for claims and returns filed after December
311.2731, 2017.

311.28    Sec. 2. Minnesota Statutes 2016, section 270C.445, subdivision 3, is amended to read:
311.29    Subd. 3. Standards of conduct. No tax preparer shall:
312.1(1) without good cause fail to promptly, diligently, and without unreasonable delay
312.2complete a client's tax return;
312.3(2) obtain the signature of a client to a tax return or authorizing document that contains
312.4blank spaces to be filled in after it has been signed;
312.5(3) fail to sign a client's tax return when payment compensation for services rendered
312.6has been made;
312.7(4) fail to provide on a client's return the preparer tax identification number when required
312.8under section 6109(a)(4) of the Internal Revenue Code or section 289A.60, subdivision 28;
312.9(4) (5) fail or refuse to give a client a copy of any document requiring the client's signature
312.10within a reasonable time after the client signs the document;
312.11(5) (6) fail to retain for at least four years a copy of individual income tax a client's
312.12returns;
312.13(6) (7) fail to maintain a confidential relationship with clients or former clients;
312.14(7) (8) fail to take commercially reasonable measures to safeguard a client's nonpublic
312.15personal information;
312.16(8) (9) make, authorize, publish, disseminate, circulate, or cause to make, either directly
312.17or indirectly, any false, deceptive, or misleading statement or representation relating to or
312.18in connection with the offering or provision of tax preparation services;
312.19(9) (10) require a client to enter into a loan arrangement in order to complete a tax client's
312.20return;
312.21(10) (11) claim credits or deductions on a client's tax return for which the tax preparer
312.22knows or reasonably should know the client does not qualify;
312.23(12) report a household income on a client's claim filed under chapter 290A that the tax
312.24preparer knows or reasonably should know is not accurate;
312.25(13) engage in any conduct that is subject to a penalty under section 289A.60, subdivision
312.2613, 20, 20a, 26, or 28;
312.27(14) whether or not acting as a taxpayer representative, fail to conform to the standards
312.28of conduct required by Minnesota Rules, part 8052.0300, subpart 4;
312.29(15) whether or not acting as a taxpayer representative, engage in any conduct that is
312.30incompetent conduct under Minnesota Rules, part 8052.0300, subpart 5;
313.1(16) whether or not acting as a taxpayer representative, engage in any conduct that is
313.2disreputable conduct under Minnesota Rules, part 8052.0300, subpart 6;
313.3(11) (17) charge, offer to accept, or accept a fee based upon a percentage of an anticipated
313.4refund for tax preparation services;
313.5(12) (18) under any circumstances, withhold or fail to return to a client a document
313.6provided by the client for use in preparing the client's tax return;
313.7(13) (19) establish an account in the preparer's name to receive a client's refund through
313.8a direct deposit or any other instrument unless the client's name is also on the account,
313.9except that a taxpayer may assign the portion of a refund representing the Minnesota
313.10education credit available under section 290.0674 to a bank account without the client's
313.11name, as provided under section 290.0679;
313.12(14) (20) fail to act in the best interests of the client;
313.13(15) (21) fail to safeguard and account for any money handled for the client;
313.14(16) (22) fail to disclose all material facts of which the preparer has knowledge which
313.15might reasonably affect the client's rights and interests;
313.16(17) (23) violate any provision of section 332.37;
313.17(18) (24) include any of the following in any document provided or signed in connection
313.18with the provision of tax preparation services:
313.19(i) a hold harmless clause;
313.20(ii) a confession of judgment or a power of attorney to confess judgment against the
313.21client or appear as the client in any judicial proceeding;
313.22(iii) a waiver of the right to a jury trial, if applicable, in any action brought by or against
313.23a debtor;
313.24(iv) an assignment of or an order for payment of wages or other compensation for
313.25services;
313.26(v) a provision in which the client agrees not to assert any claim or defense otherwise
313.27available;
313.28(vi) a waiver of any provision of this section or a release of any obligation required to
313.29be performed on the part of the tax preparer; or
313.30(vii) a waiver of the right to injunctive, declaratory, or other equitable relief or relief on
313.31a class basis; or
314.1(19) (25) if making, providing, or facilitating a refund anticipation loan, fail to provide
314.2all disclosures required by the federal Truth in Lending Act, United States Code, title 15,
314.3in a form that may be retained by the client.
314.4EFFECTIVE DATE.This section is effective for claims and returns filed after December
314.531, 2017.

314.6    Sec. 3. Minnesota Statutes 2016, section 270C.445, subdivision 5a, is amended to read:
314.7    Subd. 5a. Nongame wildlife checkoff. A tax preparer must give written notice of the
314.8option to contribute to the nongame wildlife management account in section 290.431 to
314.9corporate clients that file an income tax return and to individual clients who file an income
314.10tax return or property tax refund claim form under chapter 290A. This notification must be
314.11included with information sent to the client at the same time as the preliminary worksheets
314.12or other documents used in preparing the client's return and must include a line for displaying
314.13contributions.
314.14EFFECTIVE DATE.This section is effective for claims and returns filed after December
314.1531, 2017.

314.16    Sec. 4. Minnesota Statutes 2016, section 270C.445, subdivision 6, is amended to read:
314.17    Subd. 6. Enforcement; administrative order; penalties; cease and desist. (a) The
314.18commissioner may impose an administrative penalty of not more than $1,000 per violation
314.19of subdivision 3, 3a, 4, 5, or 5b or 5, or section 270C.4451, provided that a penalty may not
314.20be imposed for any conduct that is also subject to the for which a tax return preparer penalties
314.21in penalty is imposed under section 289A.60, subdivision 13. The commissioner may
314.22terminate a tax preparer's authority to transmit returns electronically to the state, if the
314.23commissioner determines the tax preparer engaged in a pattern and practice of violating
314.24this section. Imposition of a penalty under this subdivision paragraph is subject to the
314.25contested case procedure under chapter 14. The commissioner shall collect the penalty in
314.26the same manner as the income tax. There is no right to make a claim for refund under
314.27section 289A.50 of the penalty imposed under this paragraph. Penalties imposed under this
314.28subdivision paragraph are public data.
314.29(b) In addition to the penalty under paragraph (a), if the commissioner determines that
314.30a tax preparer has violated subdivision 3 or 5, or section 270C.4451, the commissioner may
314.31issue an administrative order to the tax preparer requiring the tax preparer to cease and
314.32desist from committing the violation. The administrative order may include an administrative
314.33penalty provided in paragraph (a).
315.1(c) If the commissioner issues an administrative order under paragraph (b), the
315.2commissioner must send the order to the tax preparer addressed to the last known address
315.3of the tax preparer.
315.4(d) A cease and desist order under paragraph (b) must:
315.5(1) describe the act, conduct, or practice committed and include a reference to the law
315.6that the act, conduct, or practice violates; and
315.7(2) provide notice that the tax preparer may request a hearing as provided in this
315.8subdivision.
315.9(e) Within 30 days after the commissioner issues an administrative order under paragraph
315.10(b), the tax preparer may request a hearing to review the commissioner's action. The request
315.11for hearing must be made in writing and must be served on the commissioner at the address
315.12specified in the order. The hearing request must specifically state the reasons for seeking
315.13review of the order. The date on which a request for hearing is served by mail is the postmark
315.14date on the envelope in which the request for hearing is mailed.
315.15(f) If a tax preparer does not timely request a hearing regarding an administrative order
315.16issued under paragraph (b), the order becomes a final order of the commissioner and is not
315.17subject to review by any court or agency.
315.18(g) If a tax preparer timely requests a hearing regarding an administrative order issued
315.19under paragraph (b), the hearing must be commenced within ten days after the commissioner
315.20receives the request for a hearing.
315.21(h) A hearing timely requested under paragraph (e) is subject to the contested case
315.22procedure under chapter 14, as modified by this subdivision. The administrative law judge
315.23must issue a report containing findings of fact, conclusions of law, and a recommended
315.24order within ten days after the completion of the hearing, the receipt of late-filed exhibits,
315.25or the submission of written arguments, whichever is later.
315.26(i) Within five days of the date of the administrative law judge's report issued under
315.27paragraph (h), any party aggrieved by the administrative law judge's report may submit
315.28written exceptions and arguments to the commissioner. Within 15 days after receiving the
315.29administrative law judge's report, the commissioner must issue an order vacating, modifying,
315.30or making final the administrative order.
315.31(j) The commissioner and the tax preparer requesting a hearing may by agreement
315.32lengthen any time periods prescribed in paragraphs (g) to (i).
316.1(k) An administrative order issued under paragraph (b) is in effect until it is modified
316.2or vacated by the commissioner or an appellate court. The administrative hearing provided
316.3by paragraphs (e) to (i) and any appellate judicial review as provided in chapter 14 constitute
316.4the exclusive remedy for a tax preparer aggrieved by the order.
316.5(l) The commissioner may impose an administrative penalty, in addition to the penalty
316.6under paragraph (a), up to $5,000 per violation of a cease and desist order issued under
316.7paragraph (b). Imposition of a penalty under this paragraph is subject to the contested case
316.8procedure under chapter 14. Within 30 days after the commissioner imposes a penalty under
316.9this paragraph, the tax preparer assessed the penalty may request a hearing to review the
316.10penalty order. The request for hearing must be made in writing and must be served on the
316.11commissioner at the address specified in the order. The hearing request must specifically
316.12state the reasons for seeking review of the order. The cease and desist order issued under
316.13paragraph (b) is not subject to review in a proceeding to challenge the penalty order under
316.14this paragraph. The date on which a request for hearing is served by mail is the postmark
316.15date on the envelope in which the request for hearing is mailed. If the tax preparer does not
316.16timely request a hearing, the penalty order becomes a final order of the commissioner and
316.17is not subject to review by any court or agency. A penalty imposed by the commissioner
316.18under this paragraph may be collected and enforced by the commissioner as an income tax
316.19liability. There is no right to make a claim for refund under section 289A.50 of the penalty
316.20imposed under this paragraph. A penalty imposed under this paragraph is public data.
316.21(m) If a tax preparer violates a cease and desist order issued under paragraph (b), the
316.22commissioner may terminate the tax preparer's authority to transmit returns electronically
316.23to the state. Termination under this paragraph is public data.
316.24(n) A cease and desist order issued under paragraph (b) is public data when it is a final
316.25order.
316.26(o) Notwithstanding any other law, the commissioner may impose a penalty or take other
316.27action under this subdivision against a tax preparer, with respect to a return, within the
316.28period to assess tax on that return as provided by section 289A.38.
316.29(p) Notwithstanding any other law, the imposition of a penalty or any other action against
316.30a tax preparer under this subdivision, other than with respect to a return, must be taken by
316.31the commissioner within five years of the violation of statute.
316.32EFFECTIVE DATE.This section is effective for claims and returns filed after December
316.3331, 2017.

317.1    Sec. 5. Minnesota Statutes 2016, section 270C.445, subdivision 6a, is amended to read:
317.2    Subd. 6a. Exchange of data; State Board of Accountancy. The State Board of
317.3Accountancy shall refer to the commissioner complaints it receives about tax preparers who
317.4are not subject to the jurisdiction of the State Board of Accountancy and who are alleged
317.5to have violated the provisions of subdivisions 3, 3a, 4, 4a, 4b, 5, and 5b this section, except
317.6subdivision 5a, or section 270C.4451.
317.7EFFECTIVE DATE.This section is effective for claims and returns filed after December
317.831, 2017.

317.9    Sec. 6. Minnesota Statutes 2016, section 270C.445, subdivision 6b, is amended to read:
317.10    Subd. 6b. Exchange of data; Lawyers Board of Professional Responsibility. The
317.11Lawyers Board of Professional Responsibility may refer to the commissioner complaints
317.12it receives about tax preparers who are not subject to its jurisdiction and who are alleged to
317.13have violated the provisions of subdivisions 3, 3a, 4, 4a, 4b, 5, and 5b this section, except
317.14subdivision 5a, or section 270C.4451.
317.15EFFECTIVE DATE.This section is effective for claims and returns filed after December
317.1631, 2017.

317.17    Sec. 7. Minnesota Statutes 2016, section 270C.445, subdivision 6c, is amended to read:
317.18    Subd. 6c. Exchange of data; commissioner. The commissioner shall refer information
317.19and complaints about tax preparers who are alleged to have violated the provisions of
317.20subdivisions 3, 3a, 4, 4a, 4b, 5, and 5b this section, except subdivision 5a, or section
317.21270C.4451, to:
317.22(1) the State Board of Accountancy, if the tax preparer is under its jurisdiction; and
317.23(2) the Lawyers Board of Professional Responsibility, if the tax preparer is under its
317.24jurisdiction.
317.25EFFECTIVE DATE.This section is effective for claims and returns filed after December
317.2631, 2017.

317.27    Sec. 8. Minnesota Statutes 2016, section 270C.445, subdivision 7, is amended to read:
317.28    Subd. 7. Enforcement; civil actions. (a) Any violation of this section or section
317.29270C.4451 is an unfair, deceptive, and unlawful trade practice within the meaning of section
317.308.31 . An action taken under this section is in the public interest.
318.1(b) A client may bring a civil action seeking redress for a violation of this section in the
318.2conciliation or the district court of the county in which unlawful action is alleged to have
318.3been committed or where the respondent resides or has a principal place of business.
318.4(c) A court finding for the plaintiff must award:
318.5(1) actual damages;
318.6(2) incidental and consequential damages;
318.7(3) statutory damages of twice the sum of: (i) the tax preparation fees; and (ii) if the
318.8plaintiff violated subdivision 3a, 4, or 5b section 270C.4451, subdivision 1, 2, or 5, all
318.9interest and fees for a refund anticipation loan;
318.10(4) reasonable attorney fees;
318.11(5) court costs; and
318.12(6) any other equitable relief as the court considers appropriate.
318.13EFFECTIVE DATE.This section is effective for claims and returns filed after December
318.1431, 2017.

318.15    Sec. 9. Minnesota Statutes 2016, section 270C.445, subdivision 8, is amended to read:
318.16    Subd. 8. Limited exemptions. (a) Except as provided in paragraph (b), the provisions
318.17of this section, except for subdivisions 3a, 4, and 5b, subdivisions 3; 5; 5a; 6, paragraphs
318.18(a) to (n); and 7, do not apply to:
318.19(1) an attorney admitted to practice under section 481.01;
318.20(2) a registered accounting practitioner, a registered accounting practitioner firm, a
318.21certified public accountant, or other person who is subject to the jurisdiction of the State
318.22Board of Accountancy a certified public accountant firm, licensed in accordance with chapter
318.23326A;
318.24(3) an enrolled agent who has passed the special enrollment examination administered
318.25by the Internal Revenue Service; or
318.26(4) anyone a person who provides, or assists in providing, tax preparation services within
318.27the scope of duties as an employee or supervisor under the direction or supervision of a
318.28person who is exempt under this subdivision; or
318.29(5) a person acting as a supervisor to a tax preparer who is exempt under this subdivision.
319.1(b) The provisions of subdivisions 3; 6, paragraphs (a) to (n); and 7, apply to a tax
319.2preparer who would otherwise be exempt under paragraph (a) if the tax preparer has:
319.3(1) had a professional license suspended or revoked for cause, not including a failure to
319.4pay a professional licensing fee, by any authority of any state, territory, or possession of
319.5the United States, including a commonwealth, or the District of Columbia, any federal court
319.6of record, or any federal agency, body, or board;
319.7(2) irrespective of whether an appeal has been taken, been convicted of any crime
319.8involving dishonesty or breach of trust;
319.9(3) been censured, suspended, or disbarred under United States Treasury Department
319.10Circular 230;
319.11(4) been sanctioned by a court of competent jurisdiction, whether in a civil or criminal
319.12proceeding, including suits for injunctive relief, relating to any taxpayer's tax liability or
319.13the tax preparer's own tax liability, for:
319.14(i) instituting or maintaining proceedings primarily for delay;
319.15(ii) advancing frivolous or groundless arguments; or
319.16(iii) failing to pursue available administrative remedies; or
319.17(5) demonstrated a pattern of willful disreputable conduct by:
319.18(i) failing to file a return that the tax preparer was required to file annually for two of
319.19the three immediately preceding tax periods; or
319.20(ii) failing to file a return that the tax preparer was required to file more frequently than
319.21annually for three of the six immediately preceding tax periods.
319.22EFFECTIVE DATE.This section is effective for claims and returns filed after December
319.2331, 2017.

319.24    Sec. 10. Minnesota Statutes 2016, section 270C.445, is amended by adding a subdivision
319.25to read:
319.26    Subd. 9. Powers additional. The powers and authority granted in this section are in
319.27addition to all other powers of the commissioner. The use of the powers granted in this
319.28section does not preclude the use of any other power or authority of the commissioner.
319.29EFFECTIVE DATE.This section is effective for claims and returns filed after December
319.3031, 2017.

320.1    Sec. 11. Minnesota Statutes 2016, section 270C.446, subdivision 2, is amended to read:
320.2    Subd. 2. Required and excluded tax preparers. (a) Subject to the limitations of
320.3paragraph (b), the commissioner must publish lists of tax preparers as defined in section
320.4289A.60, subdivision 13 , paragraph (f) 270C.445, subdivision 2, paragraph (h), who have
320.5been:
320.6    (1) convicted under section 289A.63 for returns or claims prepared as a tax preparer or;
320.7    (2) assessed penalties in excess of $1,000 under section 289A.60, subdivision 13,
320.8paragraph (a);
320.9    (3) convicted for identity theft under section 609.527, or a similar statute, for a return
320.10filed with the commissioner, the Internal Revenue Service, or another state;
320.11    (4) assessed a penalty under section 270C.445, subdivision 6, paragraph (a), in excess
320.12of $1,000;
320.13    (5) issued a cease and desist order under section 270C.445, subdivision 6, paragraph
320.14(b), that has become a final order; or
320.15    (6) assessed a penalty under section 270C.445, subdivision 6, paragraph (l), for violating
320.16a cease and desist order.
320.17    (b) For the purposes of this section, tax preparers are not subject to publication if:
320.18    (1) an administrative or court action contesting the or appealing a penalty described in
320.19paragraph (a), clause (2), (4), or (6), has been filed or served and is unresolved at the time
320.20when notice would be given under subdivision 3;
320.21    (2) an appeal period to contest the a penalty described in paragraph (a), clause (2), (4),
320.22or (6), has not expired; or
320.23    (3) the commissioner has been notified that the tax preparer is deceased;
320.24    (4) an appeal period to contest a cease and desist order issued under section 270C.445,
320.25subdivision 6, paragraph (b), has not expired;
320.26    (5) an administrative or court action contesting or appealing a cease and desist order
320.27issued under section 270C.445, subdivision 6, paragraph (b), has been filed or served and
320.28is unresolved at the time when notice would be given under subdivision 3;
320.29(6) a direct appeal of a conviction described in paragraph (a), clause (1) or (3), has been
320.30filed or served and is unresolved at the time when the notice would be given under
320.31subdivision 3; or
321.1    (7) an appeal period to contest a conviction described in paragraph (a), clause (1) or (3),
321.2has not expired.
321.3EFFECTIVE DATE.This section is effective for claims and returns filed after December
321.431, 2017.

321.5    Sec. 12. Minnesota Statutes 2016, section 270C.446, subdivision 3, is amended to read:
321.6    Subd. 3. Notice to tax preparer. (a) At least 30 days before publishing the name of a
321.7tax preparer subject to penalty publication under this section, the commissioner shall mail
321.8a written notice to the tax preparer, detailing the amount and nature of each penalty basis
321.9for the publication and the intended publication of the information listed in subdivision 4
321.10related to the penalty. The notice must be mailed by first class and certified mail sent to the
321.11tax preparer addressed to the last known address of the tax preparer. The notice must include
321.12information regarding the exceptions listed in subdivision 2, paragraph (b), and must state
321.13that the tax preparer's information will not be published if the tax preparer provides
321.14information establishing that subdivision 2, paragraph (b), prohibits publication of the tax
321.15preparer's name.
321.16(b) Thirty days after the notice is mailed and if the tax preparer has not proved to the
321.17commissioner that subdivision 2, paragraph (b), prohibits publication, the commissioner
321.18may publish in a list of tax preparers subject to penalty the information about the tax preparer
321.19that is listed in subdivision 4.
321.20EFFECTIVE DATE.This section is effective for claims and returns filed after December
321.2131, 2017.

321.22    Sec. 13. Minnesota Statutes 2016, section 270C.446, subdivision 4, is amended to read:
321.23    Subd. 4. Form of list. The list may be published by any medium or method. The list
321.24must contain the name, associated business name or names, address or addresses, and
321.25violation or violations for which a penalty was imposed of that make each tax preparer
321.26subject to penalty publication.
321.27EFFECTIVE DATE.This section is effective for claims and returns filed after December
321.2831, 2017.

321.29    Sec. 14. Minnesota Statutes 2016, section 270C.446, subdivision 5, is amended to read:
321.30    Subd. 5. Removal from list. The commissioner shall remove the name of a tax preparer
321.31from the list of tax preparers published under this section:
322.1(1) when the commissioner determines that the name was included on the list in error;
322.2(2) within 90 days three years after the preparer has demonstrated to the commissioner
322.3that the preparer fully paid all fines and penalties imposed, served any suspension, satisfied
322.4any sentence imposed, successfully completed any probationary period imposed, and
322.5successfully completed any remedial actions required by the commissioner, the State Board
322.6of Accountancy, or the Lawyers Board of Professional Responsibility; or
322.7(3) when the commissioner has been notified that the tax preparer is deceased.
322.8EFFECTIVE DATE.This section is effective for claims and returns filed after December
322.931, 2017.

322.10    Sec. 15. Minnesota Statutes 2016, section 270C.447, subdivision 1, is amended to read:
322.11    Subdivision 1. Commencement of action. (a) Whenever it appears to the commissioner
322.12that a tax preparer doing business in Minnesota has engaged in any conduct described in
322.13subdivision 2, a civil action in the name of the state of Minnesota may be commenced to
322.14enjoin any person who is a tax return preparer doing business in this state from further
322.15engaging in any conduct described in subdivision 2 the conduct and enforce compliance.
322.16(b) An action under this subdivision must be brought by the attorney general in:
322.17(1) the district court for the judicial district of the tax return preparer's residence or
322.18principal place of business, or in which the;
322.19(2) the district court for the judicial district of the residence of any taxpayer with respect
322.20to whose tax return the action is brought resides; or
322.21(3) Ramsey County District Court.
322.22(c) The court may exercise its jurisdiction over the action separate and apart from any
322.23other action brought by the state of Minnesota against the tax return preparer or any taxpayer.
322.24The court must grant a permanent injunction or other appropriate relief if the commissioner
322.25shows that the person has engaged in conduct constituting a violation of a law administered
322.26by the commissioner or a cease and desist order issued by the commissioner. The
322.27commissioner shall not be required to show irreparable harm.
322.28EFFECTIVE DATE.This section is effective for claims and returns filed after December
322.2931, 2017.

323.1    Sec. 16. Minnesota Statutes 2016, section 270C.447, subdivision 2, is amended to read:
323.2    Subd. 2. Injunction prohibiting specific conduct. In an action under subdivision 1,
323.3the court may enjoin the person from further engaging in that conduct if the court finds that
323.4a tax return preparer has:
323.5(1) engaged in any conduct subject to a civil penalty under section 289A.60 or, a criminal
323.6penalty under section 289A.63, or a criminal penalty under section 609.527 or a similar
323.7statute for a return filed with the commissioner, the Internal Revenue Service, or another
323.8state;
323.9(2) misrepresented the preparer's eligibility to practice before the Department of Revenue,
323.10or otherwise misrepresented the preparer's experience or education as a tax return preparer;
323.11(3) guaranteed the payment of any tax refund or the allowance of any tax credit; or
323.12(4) violated a cease and desist order issued by the commissioner; or
323.13(4) (5) engaged in any other fraudulent or deceptive conduct that substantially interferes
323.14with the proper administration of a law administered by the commissioner, and injunctive
323.15relief is appropriate to prevent the recurrence of that conduct,.
323.16the court may enjoin the person from further engaging in that conduct.
323.17EFFECTIVE DATE.This section is effective for claims and returns filed after December
323.1831, 2017.

323.19    Sec. 17. Minnesota Statutes 2016, section 270C.447, subdivision 3, is amended to read:
323.20    Subd. 3. Injunction prohibiting all business activities. If the court finds that a tax
323.21return preparer has continually or repeatedly engaged in conduct described in subdivision
323.222, and that an injunction prohibiting that conduct would not be sufficient to prevent the
323.23person's interference with the proper administration of a law administered by the
323.24commissioner, the court may enjoin the person from acting as a tax return preparer. The
323.25court may not enjoin the employer of a tax return preparer for conduct described in
323.26subdivision 2 engaged in by one or more of the employer's employees unless the employer
323.27was also actively involved in that conduct.
323.28EFFECTIVE DATE.This section is effective for claims and returns filed after December
323.2931, 2017.

324.1    Sec. 18. Minnesota Statutes 2016, section 270C.447, is amended by adding a subdivision
324.2to read:
324.3    Subd. 3a. Enforcement of cease and desist orders. (a) Whenever the commissioner
324.4under subdivision 1 or 3 seeks to enforce compliance with a cease and desist order, the court
324.5must consider the allegations in the cease and desist order conclusively established if the
324.6order is a final order.
324.7(b) If the court finds the tax preparer was not in compliance with a cease and desist order,
324.8the court may impose a further civil penalty against the tax preparer for contempt in an
324.9amount up to $10,000 for each violation and may grant any other relief the court determines
324.10is just and proper in the circumstances. A civil penalty imposed by a court under this section
324.11may be collected and enforced by the commissioner as an income tax liability.
324.12(c) The court may not require the commissioner to post a bond in an action or proceeding
324.13under this section.
324.14EFFECTIVE DATE.This section is effective for claims and returns filed after December
324.1531, 2017.

324.16    Sec. 19. Minnesota Statutes 2016, section 289A.60, subdivision 13, is amended to read:
324.17    Subd. 13. Penalties for tax return preparers. (a) If an understatement of liability with
324.18respect to a return or claim for refund is due to a reckless disregard of laws and rules or
324.19willful attempt in any manner to understate the liability for a tax by a person who is a tax
324.20return preparer with respect to the return or claim, the person shall pay to the commissioner
324.21a penalty of $500. If a part of a property tax refund claim filed under section 290.0677,
324.22subdivision 1, or chapter 290A is excessive due to a reckless disregard or willful attempt
324.23in any manner to overstate the claim for relief allowed under chapter 290A by a person who
324.24is a tax refund or return preparer, the person tax preparer shall pay to the commissioner a
324.25penalty of $500 with respect to the claim. These penalties may not be assessed against the
324.26employer of a tax return preparer unless the employer was actively involved in the reckless
324.27disregard or willful attempt to understate the liability for a tax or to overstate the claim for
324.28refund. These penalties are income tax liabilities and may be assessed at any time as provided
324.29in section 289A.38, subdivision 5.
324.30(b) A civil action in the name of the state of Minnesota may be commenced to enjoin
324.31any person who is a tax return preparer doing business in this state as provided in section
324.32270C.447 .
325.1(c) The commissioner may terminate or suspend a tax preparer's authority to transmit
325.2returns electronically to the state, if the commissioner determines that the tax preparer has
325.3engaged in a pattern and practice of conduct in violation of paragraph (a) of this subdivision
325.4or has been convicted under section 289A.63.
325.5(d) For purposes of this subdivision, the term "understatement of liability" means an
325.6understatement of the net amount payable with respect to a tax imposed by state tax law,
325.7or an overstatement of the net amount creditable or refundable with respect to a tax. The
325.8determination of whether or not there is an understatement of liability must be made without
325.9regard to any administrative or judicial action involving the taxpayer. For purposes of this
325.10subdivision, the amount determined for underpayment of estimated tax under either section
325.11289A.25 or 289A.26 is not considered an understatement of liability.
325.12(e) For purposes of this subdivision, the term "overstatement of claim" means an
325.13overstatement of the net amount refundable with respect to a claim for property tax relief
325.14provided by filed under section 290.0677, subdivision 1, or chapter 290A. The determination
325.15of whether or not there is an overstatement of a claim must be made without regard to
325.16administrative or judicial action involving the claimant.
325.17(f) For purposes of this section, the term "tax refund or return preparer" means an
325.18individual who prepares for compensation, or who employs one or more individuals to
325.19prepare for compensation, a return of tax, or a claim for refund of tax. The preparation of
325.20a substantial part of a return or claim for refund is treated as if it were the preparation of
325.21the entire return or claim for refund. An individual is not considered a tax return preparer
325.22merely because the individual:
325.23(1) gives typing, reproducing, or other mechanical assistance;
325.24(2) prepares a return or claim for refund of the employer, or an officer or employee of
325.25the employer, by whom the individual is regularly and continuously employed;
325.26(3) prepares a return or claim for refund of any person as a fiduciary for that person; or
325.27(4) prepares a claim for refund for a taxpayer in response to a tax order issued to the
325.28taxpayer "tax preparer" or "preparer" has the meaning given in section 270C.445, subdivision
325.292, paragraph (h).
325.30EFFECTIVE DATE.This section is effective for claims and returns filed after December
325.3131, 2017.

326.1    Sec. 20. Minnesota Statutes 2016, section 289A.60, subdivision 28, is amended to read:
326.2    Subd. 28. Preparer identification number. Any Minnesota individual income tax return
326.3or claim for refund prepared by a "tax refund or return preparer" as defined in subdivision
326.413, paragraph (f), shall bear the identification number the preparer is required to use federally
326.5under section 6109(a)(4) of the Internal Revenue Code (a) Each of the following that is
326.6prepared by a tax preparer must include the tax preparer's tax identification number:
326.7(1) a tax return required to be filed under this chapter;
326.8(2) a claim filed under section 290.0677, subdivision 1, or chapter 290A; and
326.9    (3) a claim for refund of an overpayment.
326.10(b) A tax preparer is not required to include their preparer tax identification number on
326.11a filing if the number is not required in the forms or filing requirements provided by the
326.12commissioner.
326.13    (c) A tax refund or return preparer who prepares a Minnesota individual income tax
326.14return or claim for refund and fails to include the required preparer tax identification number
326.15on the return or claim as required by this section is subject to a penalty of $50 for each
326.16failure.
326.17(d) A tax preparer who fails to include the preparer tax identification number as required
326.18by this section, and who is required to have a valid preparer tax identification number issued
326.19under section 6109(a)(4) of the Internal Revenue Code, but does not have one, is subject to
326.20a $500 penalty for each failure. A tax preparer subject to the penalty in this paragraph is
326.21not subject to the penalty in paragraph (c).
326.22(e) For the purposes of this subdivision, "tax preparer" has the meaning given in section
326.23270C.445, subdivision 2, paragraph (h), and "preparer tax identification number" means
326.24the number the tax preparer is required to use federally under section 6109(a)(4) of the
326.25Internal Revenue Code.
326.26EFFECTIVE DATE.This section is effective for claims and returns filed after December
326.2731, 2017.

326.28    Sec. 21. REVISOR'S INSTRUCTION.
326.29(a) The revisor of statutes shall renumber the provisions of Minnesota Statutes listed in
326.30column A to the references listed in column B.

326.31		Column A	Column B
326.32		270C.445, subdivision 3a	270C.4451, subdivision 1
327.1		270C.445, subdivision 4	270C.4451, subdivision 2
327.2		270C.445, subdivision 4a	270C.4451, subdivision 3
327.3		270C.445, subdivision 4b	270C.4451, subdivision 4
327.4		270C.445, subdivision 5b	270C.4451, subdivision 5

327.5(b) The revisor shall make necessary cross-reference changes in Minnesota Statutes and
327.6Minnesota Rules consistent with the renumbering of Minnesota Statutes, section 270C.445,
327.7subdivisions 3a, 4, 4a, 4b, and 5b.
327.8(c) The revisor shall publish the statutory derivations of the laws renumbered in this act
327.9in Laws of Minnesota and report the derivations in Minnesota Statutes.
327.10(d) If Minnesota Statutes, section 270C.445, subdivisions 3a, 4, 4a, 4b, and 5b, are further
327.11amended in the 2017 legislative session, the revisor shall codify the amendments in a manner
327.12consistent with this act. The revisor may make necessary changes to sentence structure to
327.13preserve the meaning of the text.
327.14EFFECTIVE DATE.This section is effective the day following final enactment.

327.15    Sec. 22. REPEALER.
327.16Minnesota Statutes 2016, sections 270C.445, subdivision 1; and 270C.447, subdivision
327.174, are repealed.
327.18EFFECTIVE DATE.This section is effective for claims and returns filed after December
327.1931, 2017.